Document:

<PAGE>

                       CHASE MORTGAGE FINANCE CORPORATION,

                                   DEPOSITOR,

                           JPMORGAN CHASE BANK, N.A.,

                             SERVICER AND CUSTODIAN,

                           JPMORGAN CHASE BANK, N.A.,

                                  PAYING AGENT

                                       AND

                         U.S. BANK NATIONAL ASSOCIATION,

                                     TRUSTEE

                         POOLING AND SERVICING AGREEMENT
                           Dated as of August 1, 2006

                                 $1,087,946,521
                 Multi-Class Mortgage Pass-Through Certificates
                                 Series 2006-A1

<PAGE>

ARTICLE I      DEFINITIONS................................................     1

ARTICLE II     CONVEYANCE OF MORTGAGE LOANS; TRUST FUND...................    37
   Section 2.01    Conveyance of Mortgage Loans...........................    37
   Section 2.02    Acceptance by Trustee..................................    41
   Section 2.03    Trust Fund; Authentication of Certificates.............    42
   Section 2.04    REMIC Elections........................................    42
   Section 2.05    Permitted Activities of Trust..........................    47
   Section 2.06    Qualifying Special Purpose Entity......................    47

ARTICLE III    REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AND THE
               SERVICER; REPURCHASE OF MORTGAGE LOANS.....................    47
   Section 3.01    Representations and Warranties of the Depositor with
                      respect to the Mortgage Loans.......................    47
   Section 3.02    Representations and Warranties of the Servicer.........    55
   Section 3.03    Option to Substitute...................................    56

ARTICLE IV     THE CERTIFICATES...........................................    56
   Section 4.01    The Certificates.......................................    58
   Section 4.02    Registration of Transfer and Exchange of Certificates..    62
   Section 4.03    Mutilated, Destroyed, Lost or Stolen Certificates......    62
   Section 4.04    Persons Deemed Owners..................................    62
   Section 4.05    Appointment of Paying Agent and Certificate Registrar;
                      Certificate Account.................................    62
   Section 4.06    Authenticating Agents..................................    63

ARTICLE V      ADMINISTRATION AND SERVICING OF MORTGAGE LOANS.............    64
   Section 5.01    Servicer to Service Mortgage Loans.....................    64
   Section 5.02    Sub-Servicing Agreements Between Servicer and
                      Sub-Servicers; Enforcement of Sub-Servicer's
                      Obligations.........................................    65
   Section 5.03    Successor Sub-Servicers................................    65
   Section 5.04    Liability of the Servicer..............................    66
   Section 5.05    No Contractual Relationship Between Sub-Servicer and
                      Trustee or Certificateholders.......................    66
   Section 5.06    Termination of Sub-Servicing Agreement.................    66
   Section 5.07    Collection of Mortgage Loan Payments...................    66
   Section 5.08    Establishment of Collection Account; Deposit in
                      Collection Account..................................    66
   Section 5.09    Permitted Withdrawals from the Collection Account......    68
   Section 5.10    Establishment of Escrow Account; Deposits in Escrow
                      Account.............................................    68
   Section 5.11    Permitted Withdrawals from Escrow Account..............    69

<PAGE>

   Section 5.12    Payment of Taxes, Insurance and Other Charges..........    69
   Section 5.13    Transfer of Accounts...................................    69
   Section 5.14    [Reserved].............................................    69
   Section 5.15    Maintenance of the Primary Insurance Policies..........    69
   Section 5.16    Maintenance of Standard Hazard Policies................    69
   Section 5.17    [Reserved].............................................    70
   Section 5.18    [Reserved].............................................    70
   Section 5.19    Fidelity Bond and Errors and Omissions Insurance.......    70
   Section 5.20    Collections under Insurance Policies; Enforcement of
                      Due-On-Sale Clauses; Assumption Agreements..........    71
   Section 5.21    Income and Realization from Defaulted Mortgage Loans...    71
   Section 5.22    Trustee to Cooperate; Release of Mortgage Files........    73
   Section 5.23    Servicing and Other Compensation.......................    74
   Section 5.24    1934 Act Reports.......................................    74
   Section 5.25    Annual Statement as to Compliance......................    76
   Section 5.26    Assessment of Compliance and Independent Public
                      Accountants' Attestation; Financial Statements......    76
   Section 5.27    Access to Certain Documentation; Rights of the
                      Depositor in Respect of the Servicer................    78
   Section 5.28    REMIC-Related Covenants................................    79

ARTICLE VI     PAYMENTS TO THE CERTIFICATEHOLDERS.........................    80
   Section 6.01    Distributions..........................................    80
   Section 6.02    Statements to the Certificateholders...................    87
   Section 6.03    Advances by the Servicer...............................    89
   Section 6.04    Allocation of Realized Losses..........................    90
   Section 6.05    Compensating Interest; Allocation of Certain Interest
                      Shortfalls..........................................    91
   Section 6.06    Subordination..........................................    92
   Section 6.07    [Reserved].............................................    92

ARTICLE VII    REPORTS TO BE PREPARED BY THE SERVICER.....................    93
   Section 7.01    Servicer Shall Provide Information as Reasonably
                      Required............................................    93
   Section 7.02    Federal Information Returns and Reports to
                      Certificateholders..................................    93

ARTICLE VIII   THE DEPOSITOR AND THE SERVICER.............................    94
   Section 8.01    Indemnification; Third Party Claims....................    94
   Section 8.02    Merger or Consolidation of the Depositor or the
                      Servicer............................................    94
   Section 8.03    Limitation on Liability of the Depositor, the Servicer,
                      the Trustee and Others..............................    95

                                       ii

<PAGE>

   Section 8.04    Depositor and Servicer Not to Resign...................    95
   Section 8.05    Successor to the Servicer..............................    95
   Section 8.06    Maintenance of Ratings.................................    97

ARTICLE IX     DEFAULT....................................................    97
   Section 9.01    Events of Default......................................    97
   Section 9.02    Waiver of Defaults.....................................    98
   Section 9.03    Trustee to Act; Appointment of Successor...............    98
   Section 9.04    Notification to Certificateholders and the Rating
                      Agencies............................................    98

ARTICLE X      CONCERNING THE TRUSTEE.....................................    98
   Section 10.01   Duties of Trustee......................................    98
   Section 10.02   Certain Matters Affecting the Trustee..................    99
   Section 10.03   Trustee Not Liable for Certificates or Mortgage Loans..   100
   Section 10.04   Trustee May Own Certificates...........................   100
   Section 10.05   Fees and Expenses......................................   100
   Section 10.06   Eligibility Requirements for Trustee...................   101
   Section 10.07   Resignation and Removal of the Trustee.................   101
   Section 10.08   Successor Trustee......................................   102
   Section 10.09   Merger or Consolidation of Trustee.....................   102
   Section 10.10   Appointment of Co-Trustee or Separate Trustee..........   102
   Section 10.11   Appointment of Office or Agency........................   103
   Section 10.12   Indemnification........................................   103

ARTICLE XI     TERMINATION................................................   104
   Section 11.01    Termination...........................................   104

ARTICLE XII    MISCELLANEOUS PROVISIONS...................................   106
   Section 12.01   Severability of Provisions.............................   106
   Section 12.02   Limitation on Rights of Certificateholders.............   106
   Section 12.03   Amendment..............................................   107
   Section 12.04   Counterparts...........................................   107
   Section 12.05   Duration of Agreement..................................   107
   Section 12.06   Governing Law..........................................   107
   Section 12.07   Notices................................................   107
   Section 12.08   Further Assurances.....................................   108

                                      iii

<PAGE>

EXHIBIT A     MORTGAGE LOAN SCHEDULE
EXHIBIT B     CONTENTS OF MORTGAGE FILE
EXHIBIT C     FORM OF CLASS A CERTIFICATE
EXHIBIT D     FORM OF CLASS M CERTIFICATE
EXHIBIT E     FORM OF CLASS B CERTIFICATE
EXHIBIT F     FORM OF CLASS A-R CERTIFICATE
EXHIBIT G     FORM OF TRUSTEE CERTIFICATION
EXHIBIT H     FORM OF INVESTMENT LETTER
EXHIBIT I     FORM OF RULE 144A INVESTMENT LETTER
EXHIBIT J     FORM OF SPECIAL SERVICING AND COLLATERAL FUND AGREEMENT
EXHIBIT K     FORM OF CLASS A-R TRANSFEREE LETTER
EXHIBIT K-1   FORM OF CLASS A-R TRANSFEROR LETTER
EXHIBIT L     REQUEST FOR RELEASE OF DOCUMENTS
EXHIBIT M     FORM OF TRANSFEREE ERISA REPRESENTATION LETTER
EXHIBIT N     [RESERVED]
EXHIBIT O     FORM OF OFFICER'S CERTIFICATE (PAYING AGENT)
EXHIBIT P     LETTER OF REPRESENTATIONS
EXHIBIT Q     [RESERVED]
EXHIBIT R     SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
EXHIBIT S     FORM OF SARBANES-OXLEY CERTIFICATION
EXHIBIT T     FORM OF ITEM 1123 CERTIFICATION OF SERVICER
SCHEDULE X    1934 ACT FORM 8-K REPORTING OBLIGATIONS
SCHEDULE Y    1934 ACT FORM 10-D REPORTING OBLIGATIONS
SCHEDULE Z    1934 ACT FORM 10-K REPORTING OBLIGATIONS

                                       iv

<PAGE>

     This Pooling and Servicing Agreement, dated as of August 1, 2006, is
executed among Chase Mortgage Finance Corporation, as depositor (together with
its permitted successors and assigns, the "Depositor"), JPMorgan Chase Bank,
N.A. ("Chase"), as servicer (together with its permitted successors and assigns,
the "Servicer") and as custodian (together with its permitted successors and
assigns, the "Custodian"), JPMorgan Chase Bank, N.A., as paying agent (in such
capacity, together with its permitted successors and assigns, the "Paying
Agent") and U.S. Bank National Association, as trustee (together with its
permitted successors and assigns, the "Trustee").

     In consideration of the premises and the mutual agreements hereinafter set
forth, the Depositor, the Servicer and the Trustee agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     Whenever used herein, the following words and phrases, unless the context
otherwise requires, shall have the following meanings:

     ACCEPTED SERVICING PRACTICES: With respect to any Mortgage Loan, those
mortgage servicing practices (including collection procedures) of prudent
mortgage banking institutions which service mortgage loans of the same type as
such Mortgage Loan in the jurisdiction where the related Mortgaged Property (or
Underlying Mortgaged Property, in the case of a Co-op Loan) is located, and
which are in accordance with FNMA servicing practices and procedures for MBS
pool mortgages (as defined in the FNMA Guides including future updates).

     ACCOUNTANT'S ATTESTATION: As defined in Section 5.26(b).

     ADDITIONAL FORM 10-D DISCLOSURE: As defined in Section 5.24(b).

     ADDITIONAL FORM 10-K DISCLOSURE: As defined in Section 5.24(d).

     ADVANCE: The aggregate of the advances made by the Servicer with respect to
a particular Distribution Date pursuant to Section 6.03.

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

     AGENCY & TRUST OFFICE: With respect to the Trustee, the office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this instrument is
located at 209 South LaSalle Street, Chicago, Illinois 60604; and, with respect
to the Paying Agent, the office of the Paying Agent at which at any particular
time its corporate trust business shall be administered, which office at the
date of execution of this instrument is located at 600 Travis, 9th Floor,
Houston, Texas 77002.

     AGGREGATE SUBORDINATED PERCENTAGE: With respect to any Distribution Date,
is equal to the aggregate Principal Balance of the Subordinated Certificates
immediately prior to such Distribution Date divided by the aggregate Scheduled
Principal Balance of all of the Mortgage Loans immediately prior to such
Distribution Date.

                                        1

<PAGE>

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

     APPRAISED VALUE: The value set forth in an appraisal or recertification
document made in connection with the origination of the related Mortgage Loan as
the value of the Mortgaged Property (or the related residential dwelling unit in
the Underlying Mortgaged Property, in the case of a Co-op Loan).

     ASSESSMENT OF COMPLIANCE: As defined in Section 5.26(a).

     ASSIGNMENT OF MORTGAGE: An assignment of the Mortgage, notice of transfer
(or UCC-3 assignment (or equivalent instrument) with respect to each Co-op Loan)
or equivalent instrument, in recordable form (except in the case of a Co-op
Loan), sufficient under the laws of the jurisdiction where the related Mortgaged
Property (or Underlying Mortgaged Property, in the case of a Co-op Loan) is
located to reflect of record the sale and assignment of the Mortgage Loan to the
Trustee, which assignment, notice of transfer or equivalent instrument may, if
permitted by law, be in the form of one or more blanket assignments covering
Mortgages secured by Mortgaged Properties located in the same county.

     AUTHENTICATING AGENT: The meaning specified in Section 4.06(a).

     AVAILABLE DISTRIBUTION AMOUNT: On any Distribution Date, an amount equal to
the amount on deposit in the Collection Account as of the close of business two
Business Days immediately preceding the related Distribution Date (but prior to
making any deposits into the Certificate Account on such date) except:

     (a) amounts received on particular Mortgage Loans as late payments or other
recoveries of principal or interest (including any Subsequent Recoveries,
Liquidation Proceeds, Insurance Proceeds and condemnation awards) and respecting
which the Servicer previously made an unreimbursed Advance of such amounts;

     (b) reimbursement for Nonrecoverable Advances and other amounts permitted
to be withdrawn by the Servicer pursuant to Section 5.09 from, or not required
to be deposited in, the Collection Account;

     (c) amounts representing the Servicing Fee with respect to such
Distribution Date;

     (d) amounts representing all or part of a Monthly Payment due (i) after the
related Due Period or (ii) on or prior to the Cut-off Date;

     (e) all Repurchase Proceeds, Principal Prepayments, Liquidation Proceeds,
Insurance Proceeds, Subsequent Recoveries and condemnation awards with respect
to Mortgage Loans received after the related Principal Prepayment Period, and
all related payments of interest representing interest for any period of time
after the last day of the related Due Period for such Mortgage Loans; and

     (f) all income from Eligible Investments held in the Collection Account for
the account of the Servicer.

     BANKRUPTCY AMOUNT: As of any date of determination, $100,000 minus all
Bankruptcy Losses on the Mortgage Loans, if any, previously allocated to the
Certificates in accordance with Section 6.04.

                                        2

<PAGE>

     BANKRUPTCY CODE: Title 11 of the United States Code, as the same may be
amended from time to time.

     BANKRUPTCY LOSS: With respect to any Mortgage Loan, a Realized Loss
resulting from a Deficient Valuation or Debt Service Reduction.

     BENEFICIAL HOLDER: A Person holding a beneficial interest in any Book-Entry
Certificate through a Participant or an Indirect Participant or a Person holding
a beneficial interest in any Definitive Certificate.

     BOOK-ENTRY CERTIFICATES: The Class A Certificates (other than the Class A-R
Certificates), Class M Certificates, Class B-1 Certificates and Class B-2
Certificates, referred to collectively.

     BUSINESS DAY: Any day other than (a) a Saturday or Sunday, (b) a legal
holiday in the States of New York , Minnesota and Illinois or (c) a day on which
banking institutions in the State of New York are authorized or obligated by law
or executive order to be closed.

     CARRY-OVER SUBORDINATED PRINCIPAL AMOUNT: As of any Distribution Date, with
respect to any Class of Subordinated Certificates, an amount, if any, equal to
the amount of principal distributable to such Class on any prior Distribution
Date that has not been so distributed and is not attributable to a Realized
Loss.

     CASH LIQUIDATION: Recovery of all cash proceeds by the Servicer with
respect to the liquidation of any Mortgage Loan, including Insurance Proceeds
and other payments or recoveries (whether made at one time or over a period of
time) which the Servicer deems to be finally recoverable, in connection with the
sale, assignment or satisfaction of such Mortgage Loan, trustee's sale,
foreclosure sale or otherwise, but only if title to the related Mortgaged
Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan)
was not acquired by foreclosure or deed in lieu of foreclosure by the Servicer
pursuant to Section 5.21.

     CERTIFICATE: Any Class A, Class M or Class B Certificate.

     CERTIFICATE ACCOUNT: The account created and maintained pursuant to Section
4.05.

     CERTIFICATEHOLDER or HOLDER: The Person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purposes of
giving any consent, waiver, request or demand pursuant to this Agreement, any
Certificate registered in the name of the Depositor, the Servicer, any
Sub-Servicer, or any of their respective Affiliates shall be disregarded and the
undivided Percentage Interest evidenced thereby shall not be taken into account
in determining whether the requisite amount of Percentage Interests necessary to
effect any such consent, waiver, request or demand has been obtained. The
Trustee and the Paying Agent shall be entitled to conclusively rely upon the
certificate of the Depositor or the Servicer as to the determination of which
Certificates are registered in the name of such Affiliates.

     CERTIFICATE OWNER: Any Person who is the beneficial owner of a Book-Entry
Certificate registered in the name of the Depository or its nominee.

     CERTIFICATE POOL: Any of the Class 1-A Certificates, the Class 2-A
Certificates, the Class 3-A Certificates and the Class 4-A Certificates.

                                        3

<PAGE>

     CERTIFICATE RATE: The per annum rate of interest borne by each Class of
Certificates, which (i) in the case of the Class 1-A1, Class 1-A2, Class 1-A4
and Class A-R Certificates, will equal Pool 1 Net WAC, (ii) in the case of the
Class 1-A3 Certificates, will equal, with respect to any Distribution Date
occurring until and including July 2011, the lesser of (x) 5.850% and (y) Pool 1
Net WAC and, with respect to any Distribution Date occurring in or after August
2011, Pool 1 Net WAC, (iii) in the case of the Class 1-AX Certificates, will
equal, with respect to any Distribution Date occurring until and including July
2011, the greater of (x) Pool 1 Net WAC minus 5.850% and (y) zero and, with
respect to any Distribution Date occurring in or after August 2011, zero, (iv)
in the case of the Class 2-A1, Class 2-A2 and Class 2-A4 Certificates, will
equal Pool 2 Net WAC, (v) in the case of the Class 2-A3 Certificates, will
equal, with respect to any Distribution Date occurring until and including
August 2013, the lesser of (x) 6.000% and (y) Pool 2 Net WAC and, with respect
to any Distribution Date occurring in or after September 2013, Pool 2 Net WAC,
(vi) in the case of the Class 2-AX Certificates, will equal, with respect to any
Distribution Date occurring until and including August 2013, the greater of (x)
Pool 2 Net WAC minus 6.000% and (y) zero and, with respect to any Distribution
Date occurring in or after September 2013, zero, (vii) in the case of the Class
3-A1 and Class 3-A2 Certificates, will equal Pool 3 Net WAC, (viii) in the case
of the Class 4-A1 and Class 4-A2 Certificates, will equal Pool 4 Net WAC and
(ix) with respect to each Class of Subordinated Certificates, will equal the
fraction, expressed as a percentage, (I) the numerator of which will equal the
sum of (i) the product of (x) Pool 1 Net WAC and (y) the Pool 1 Subordinated
Amount, (ii) the product of (x) Pool 2 Net WAC and (y) the Pool 2 Subordinated
Amount, (iii) the product of (x) Pool 3 Net WAC and (y) the Pool 3 Subordinated
Amount and (iv) the product of (x) Pool 4 Net WAC and (y) Pool 4 Subordinated
Amount and (II) the denominator of which will equal the sum of the Pool 1
Subordinated Amount, the Pool 2 Subordinated Amount, the Pool 3 Subordinated
Amount and the Pool 4 Subordinated Amount. For federal income tax purposes, the
Certificate Rate on each Class of Subordinate Certificates can be expressed as a
per annum rate equal to the weighted average of the interest rates on the
Lower-Tier REMIC Regular Interests ending with the designation "A" weighted on
the basis of their principal amounts immediately prior to such Distribution
Date. Interest with respect to each Class of Certificates shall be calculated
based on a 360 day year comprised of twelve 30-day months.

     CERTIFICATE REGISTER: The register maintained pursuant to Section 4.02.

     CERTIFICATE REGISTRAR: The Person appointed by the Trustee as Certificate
Registrar pursuant to Section 4.05.

     CHASE: JPMorgan Chase Bank, N.A., a national banking association, or its
successor in interest.

     CHF: Chase Home Finance LLC, a Delaware limited liability company, or its
successor in interest.

     CLASS: Pertaining to the Class 1-A1, Class 1-A2, Class 1-A3, Class 1-A4,
Class 1-AX, Class 2-A1, Class 2-A2, Class 2-A3, Class 2-A4, Class 2-AX, Class
3-A1, Class 3-A2, Class 4-A1, Class 4-A2, Class A-R, Class M, Class B-1, Class
B-2, Class B-3, Class B-4, Class B-5 Certificates, any Lower-Tier REMIC Interest
or any Middle-Tier REMIC Interest, as the case may be.

     CLASS 1-A CERTIFICATES: The Class 1-A1, Class 1-A2, Class 1-A3, Class 1-A4,
Class 1-AX and Class A-R Certificates, referred to collectively.

     CLASS 1-A INTEREST ACCRUAL AMOUNT: On any Distribution Date, an amount
equal to the sum of the Class 1-A1 Interest Accrual Amount, the Class 1-A2
Interest Accrual Amount, the Class 1-A3 Interest Accrual Amount, the Class 1-A4
Interest Accrual Amount, the Class 1-AX Interest Accrual Amount and the Class
A-R Interest Accrual Amount.

                                        4

<PAGE>

     CLASS 1-A INTEREST SHORTFALL: On any Distribution Date, an amount equal to
the sum of the Class 1-A1 Shortfall, the Class 1-A2 Shortfall, the Class 1-A3
Shortfall, the Class 1-A4 Shortfall, the Class 1-AX Shortfall and the Class A-R
Shortfall.

     CLASS 1-A OPTIMAL PRINCIPAL AMOUNT: With respect to any Distribution Date,
the lesser of (a) the Class 1-A Principal Balance and (b) the sum of:

          (i) the Class 1-A Percentage of the principal portion of all Monthly
     Payments, whether or not received, which were due on the related Due Date
     on Pool 1 Mortgage Loans which were outstanding as of such Due Date;

          (ii) the Class 1-A Prepayment Percentage of all Principal Prepayments
     made on Pool 1 Mortgage Loans during the related Principal Prepayment
     Period;

          (iii) with respect to each Pool 1 Mortgage Loan not described in (iv)
     below, the Class 1-A Percentage of the principal portion of all Insurance
     Proceeds, condemnation awards and any other cash proceeds from a source
     other than the applicable Mortgagor, to the extent required to be deposited
     in the Collection Account pursuant to Section 5.08(iv) and (v), which were
     received during the related Principal Prepayment Period with respect to any
     Pool 1 Mortgage Loan, net of related unreimbursed Servicing Advances and
     net of any portion thereof which, as to any such Mortgage Loan, constitutes
     Late Collections that have been the subject of an Advance on any prior
     Distribution Date;

          (iv) with respect to each Pool 1 Mortgage Loan which has become a
     Liquidated Mortgage Loan during the related Principal Prepayment Period,
     the lesser of (A) the Class 1-A Percentage of an amount equal to the
     Principal Balance of such Mortgage Loan (net of any unreimbursed Advances
     with respect to principal) as of the Due Date immediately preceding the
     date on which such Mortgage Loan became a Liquidated Mortgage Loan and
     (B) the Class 1-A Prepayment Percentage of the Net Liquidation Proceeds
     with respect to such Mortgage Loan (net of any unreimbursed Advances);

          (v) with respect to each Pool 1 Mortgage Loan repurchased during the
     related Principal Prepayment Period pursuant to Sections 2.02, 3.01, 5.01,
     5.21 or 11.01, an amount equal to the Class 1-A Prepayment Percentage of
     the principal portion of the Purchase Price (net of amounts with respect to
     which a distribution of principal has previously been made to the
     applicable Class A Certificateholders); and

          (vi) on or after the Credit Support Depletion Date, the excess of the
     Class 1-A Principal Balance (calculated after giving effect to reductions
     thereof on such Distribution Date with respect to the amounts described in
     (i) - (v) above) over the outstanding principal balance of the Pool 1
     Mortgage Loans, if any, as of the preceding Distribution Date (giving
     effect to any Advances but prior to giving effect to any Principal
     Prepayments received with respect to such Mortgage Loans that have not been
     passed through to the Certificateholders).

     CLASS 1-A PERCENTAGE: As of any Distribution Date, the percentage obtained
by dividing the Class 1-A Principal Balance by the outstanding principal balance
of the Pool 1 Mortgage Loans, but not more than 100%.

     CLASS 1-A PREPAYMENT PERCENTAGE: As of any Distribution Date up to and
including the Distribution Date in August 2013, 100%; as of any Distribution
Date in the first year thereafter, the Class 1-A Percentage plus 70% of the
Class 1-A Subordinated Percentage for such Distribution Date; as

                                        5

<PAGE>

of any Distribution Date in the second year thereafter, the Class 1-A Percentage
plus 60% of the Class 1-A Subordinated Percentage for such Distribution Date; as
of any Distribution Date in the third year thereafter, the Class 1-A Percentage
plus 40% of the Class 1-A Subordinated Percentage for such Distribution Date; as
of any Distribution Date in the fourth year thereafter, the Class 1-A Percentage
plus 20% of the Class 1-A Subordinated Percentage for such Distribution Date;
and as of any Distribution Date after the fourth year thereafter, the Class 1-A
Percentage; provided that, if any Class 1-A Percentage as of any such
Distribution Date is greater than the Class 1-A Percentage on the first
Distribution Date, the Class 1-A Prepayment Percentage shall be 100%; and
provided further, that whenever the Class 1-A Percentage equals 0%, the Class
1-A Prepayment Percentage shall equal 0%; and provided further that no reduction
of the Class 1-A Prepayment Percentage below the level in effect for the most
recent period shall occur with respect to any Distribution Date unless, as of
the last day of the month preceding such Distribution Date, (i) the aggregate
outstanding Principal Balance of Mortgage Loans with respect to all four Pools,
each taken individually, delinquent 60 days or more (including for this purpose
any Mortgage Loans in foreclosure and Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust Fund) does not equal
or exceed 50% of the related Subordinated Percentage of the outstanding
Principal Balance of the Mortgage Loans with respect to the related Pool as of
such date and (ii) cumulative Realized Losses with respect to each of the four
Pools do not exceed (a) 30% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the seventh anniversary of the first Distribution Date, (b) 35% of the
related Original Subordinated Principal Balance if such Distribution Date occurs
in the year beginning with and including the eighth anniversary of the first
Distribution Date, (c) 40% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the ninth anniversary of the first Distribution Date, (d) 45% of the
related Original Subordinated Principal Balance if such Distribution Date occurs
in the year beginning with and including the tenth anniversary of the first
Distribution Date, and (e) 50% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the eleventh anniversary of the first Distribution Date or thereafter,
provided, notwithstanding the foregoing, if the following conditions are met:

     (i) the Aggregate Subordinated Percentage is greater than or equal to twice
such percentage calculated as of the Closing Date;

     (ii) the outstanding Principal Balance of all Mortgage Loans in each Pool
delinquent 60 days or more (including Mortgage Loans in foreclosure, REO
property or bankruptcy status), averaged over the preceding six-month period, as
a percentage of the related Subordinated Amount (without giving effect to any
payments on such Distribution Date), does not equal or exceed 50%; and

     (iii) cumulative Realized Losses with respect to the Mortgage Loans in each
Pool do not exceed, as a percentage of the related Subordinated Amount as of the
Closing Date plus the pro rata portion (based upon the outstanding Principal
Balance of each outstanding Certificate Pool) of the Subordinated Amount for
each Pool for which the related Class A Certificates have been reduced to zero,

          (a) for any Distribution Date on or prior to the August 2009
Distribution Date, 20%, or

          (b) for any Distribution Date after the August 2009 Distribution Date,
30%,

then the Class 1-A Prepayment Percentage for such Distribution Date will equal:

     (i) for any Distribution Date on or prior to the August 2009 Distribution
Date, the Class 1-A Percentage plus 50% of the Class 1-A Subordinated
Percentage, or

                                        6

<PAGE>

     (ii) for any Distribution Date after the August 2009 Distribution Date, the
Class 1-A Percentage.

     CLASS 1-A PRINCIPAL BALANCE: As of any Distribution Date, (a) the Class 1-A
Principal Balance for the immediately preceding Distribution Date less (b)
amounts distributed to the Class 1-A Certificateholders on such preceding
Distribution Date allocable to principal (including the principal portion of
Advances of the Servicer made pursuant to Section 6.03 and Realized Losses
allocated to the Class 1-A Certificates pursuant to Section 6.04); as adjusted
to reflect any adjustments to the Outstanding Certificate Principal Balance of
the Class 1-A Certificates as a result of Subsequent Recoveries; provided that
the Class 1-A Principal Balance on the first Distribution Date will be the
Original Class 1-A Principal Balance.

     CLASS 1-A PRINCIPAL PAYMENT RULES: (A) With respect to any Distribution
Date prior to the Credit Support Depletion Date, distributions to the Class 1-A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(A) shall be made to the
Class A-R, Class 1-A1, Class 1-A2, Class 1-A3 and Class 1-A4 Certificates, as
follows:

     First, to the Class A-R Certificate, until the Outstanding Certificate
Principal Balance of such Class has been reduced to zero; and

     Second, concurrently:

     (I) 96.0497509881%, sequentially, to the Class 1-A1, Class 1-A2 and Class
1-A3 Certificates, in that order, until the Principal Balance of each such
Class has been reduced to zero; and

     (II) 3.9502490119% to the Class 1-A4 Certificates, until the Principal
Balance of such Class has been reduced to zero.

     (B) With respect to any Distribution Date on or after the Credit Support
Depletion Date, distributions otherwise allocated to the Class A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(A) shall be allocated to
the Class A Certificateholders pursuant to Section 6.01(II) and not in
accordance with the priorities set forth above.

     CLASS 1-A SUBORDINATED PERCENTAGE: As of any Distribution Date, the
difference between 100% and the Class 1-A Percentage.

     CLASS 1-A SUBORDINATED PREPAYMENT PERCENTAGE: As of any Distribution Date,
the difference between 100% and the Class 1-A Prepayment Percentage.

     CLASS 1-AX CERTIFICATE: Any one of the Class 1-AX Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 1-AX INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Class 1-AX Notional Amount
minus (i) any Compensating Interest Shortfall allocated to the Class 1-AX
Certificates on such Distribution Date pursuant to Section 6.05(b), (ii) any
Realized Loss Interest Shortfall resulting from an Excess Loss allocated to the
Class 1-AX Certificates on such Distribution Date pursuant to Section 6.05(c),
and (iii) any interest shortfall resulting from the Relief Act, allocated to the
Class 1-AX Certificates on such Distribution Date pursuant to Section 6.05(d).

                                        7

<PAGE>

     CLASS 1-AX NOTIONAL AMOUNT: With respect to any Distribution Date, an
amount equal to the Class 1-A3 Principal Balance.

     CLASS 1-AX SHORTFALL: With respect to any Distribution Date the amount
equal to the excess, if any, of the Class 1-AX Interest Accrual Amount over the
amount actually distributed to the Class 1-AX Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(N).

     CLASS 1-A1 CERTIFICATE: Any one of the Class 1-A1 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 1-A1 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 1-A1 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 1-A1 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 1-A1 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 1-A1 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 1-A1 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 1-A1 Interest Accrual Amount over the
amount actually distributed to the Class 1-A1 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(A).

     CLASS 1-A2 CERTIFICATE: Any one of the Class 1-A2 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 1-A2 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 1-A2 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 1-A2 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 1-A2 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 1-A2 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 1-A2 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 1-A2 Interest Accrual Amount over the
amount actually distributed to the Class 1-A2 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(B).

     CLASS 1-A3 CERTIFICATE: Any one of the Class 1-A3 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 1-A3 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 1-A3 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 1-A3 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 1-A3 Certificates on such
Distribution Date pursuant to Section

                                        8

<PAGE>

6.05(c), and (iii) any interest shortfall resulting from the Relief Act
allocated to the Class 1-A3 Certificates on such Distribution Date pursuant to
Section 6.05(d).

     CLASS 1-A3 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 1-A3 Interest Accrual Amount over the
amount actually distributed to the Class 1-A3 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(C).

     CLASS 1-A4 CERTIFICATE: Any one of the Class 1-A4 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 1-A4 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 1-A4 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 1-A4 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 1-A4 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 1-A4 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 1-A4 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 1-A4 Interest Accrual Amount over the
amount actually distributed to the Class 1-A4 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(D).

     CLASS 2-A CERTIFICATES: The Class 2-A1, Class 2-A2, Class 2-A3, Class 2-A4
and Class 2-AX Certificates, referred to collectively.

     CLASS 2-A INTEREST ACCRUAL AMOUNT: On any Distribution Date, an amount
equal to the sum of the Class 2-A1 Interest Accrual Amount, the Class 2-A2
Interest Accrual Amount, the Class 2-A3 Interest Accrual Amount, the Class 2-A4
Interest Accrual Amount and the Class 2-AX Interest Accrual Amount.

     CLASS 2-A INTEREST SHORTFALL: On any Distribution Date, an amount equal to
the sum of the Class 2-A1 Shortfall, the Class 2-A2 Shortfall, the Class 2-A3
Shortfall, the Class 2-A4 Shortfall and the Class 2-AX Shortfall.

     CLASS 2-A OPTIMAL PRINCIPAL AMOUNT: With respect to any Distribution Date,
the lesser of (a) the Class 2-A Principal Balance and (b) the sum of:

          (i) the Class 2-A Percentage of the principal portion of all Monthly
     Payments, whether or not received, which were due on the related Due Date
     on the Pool 2 Mortgage Loans which were outstanding as of such Due
     Date;

          (ii) the Class 2-A Prepayment Percentage of all Principal Prepayments
     made on Pool 2 Mortgage Loans during the related Principal Prepayment
     Period;

          (iii) with respect to each Pool 2 Mortgage Loan not described in (iv)
     below, the Class 2-A Percentage of the principal portion of all Insurance
     Proceeds, condemnation awards and any other cash proceeds from a source
     other than the applicable Mortgagor, to the extent required to be deposited
     in the Collection Account pursuant to Section 5.08(iv) and (v), which were
     received during the related Principal Prepayment Period with respect to any
     Pool 2 Mortgage Loan, net of related unreimbursed Servicing Advances and
     net of any portion thereof which, as to any such

                                        9

<PAGE>

     Mortgage Loan, constitutes Late Collections that have been the subject of
     an Advance on any prior Distribution Date;

          (iv) with respect to each Pool 2 Mortgage Loan which has become a
     Liquidated Mortgage Loan during the related Principal Prepayment Period,
     the lesser of (A) the Class 2-A Percentage of an amount equal to the
     Principal Balance of such Mortgage Loan (net of any unreimbursed Advances
     with respect to principal) as of the Due Date immediately preceding the
     date on which such Mortgage Loan became a Liquidated Mortgage Loan and
     (B) the Class 2-A Prepayment Percentage of the Net Liquidation Proceeds
     with respect to such Mortgage Loan (net of any unreimbursed Advances);

          (v) with respect to each Pool 2 Mortgage Loan repurchased during the
     related Principal Prepayment Period pursuant to Sections 2.02, 3.01, 5.01,
     5.21 or 11.01, an amount equal to the Class 2-A Prepayment Percentage of
     the principal portion of the Purchase Price (net of amounts with respect to
     which a distribution of principal has previously been made to the
     applicable Class A Certificateholders); and

          (vi) on or after the Credit Support Depletion Date, the excess of the
     Class 2-A Principal Balance (calculated after giving effect to reductions
     thereof on such Distribution Date with respect to the amounts described in
     (i) - (v) above) over the outstanding principal balance of the Pool 2
     Mortgage Loans, if any, as of the preceding Distribution Date (giving
     effect to any Advances but prior to giving effect to any Principal
     Prepayments received with respect to such Mortgage Loans that have not been
     passed through to the Certificateholders).

     CLASS 2-A PERCENTAGE: As of any Distribution Date, the percentage obtained
by dividing the Class 2-A Principal Balance by the outstanding principal balance
of the Mortgage Loans in Pool 2, but not more than 100%.

     CLASS 2-A PREPAYMENT PERCENTAGE: As of any Distribution Date up to and
including the Distribution Date in August 2013, 100%; as of any Distribution
Date in the first year thereafter, the Class 2-A Percentage plus 70% of the
Class 2-A Subordinated Percentage for such Distribution Date; as of any
Distribution Date in the second year thereafter, the Class 2-A Percentage plus
60% of the Class 2-A Subordinated Percentage for such Distribution Date; as of
any Distribution Date in the third year thereafter, the Class 2-A Percentage
plus 40% of the Class 2-A Subordinated Percentage for such Distribution Date; as
of any Distribution Date in the fourth year thereafter, the Class 2-A Percentage
plus 20% of the Class 2-A Subordinated Percentage for such Distribution Date;
and as of any Distribution Date after the fourth year thereafter, the Class 2-A
Percentage; provided that, if any Class 2-A Percentage as of any such
Distribution Date is greater than the Class 2-A Percentage on the first
Distribution Date, the Class 2-A Prepayment Percentage shall be 100%; and
provided further, that whenever the Class 2-A Percentage equals 0%, the Class
2-A Prepayment Percentage shall equal 0%; and provided further that no reduction
of the Class 2-A Prepayment Percentage below the level in effect for the most
recent period shall occur with respect to any Distribution Date unless, as of
the last day of the month preceding such Distribution Date, (i) the aggregate
outstanding Principal Balance of Mortgage Loans with respect to all four Pools,
each taken individually, delinquent 60 days or more (including for this purpose
any Mortgage Loans in foreclosure and Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust Fund) does not equal
or exceed 50% of the related Subordinated Percentage of the outstanding
Principal Balance of the Mortgage Loans with respect to the related Pool as of
such date and (ii) cumulative Realized Losses with respect to each of the four
Pools do not exceed (a) 30% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the seventh anniversary of the first Distribution Date, (b) 35% of the
related Original Subordinated Principal Balance if such Distribution Date occurs
in the year beginning with and including

                                       10

<PAGE>

the eighth anniversary of the first Distribution Date, (c) 40% of the related
Original Subordinated Principal Balance if such Distribution Date occurs in the
year beginning with and including the ninth anniversary of the first
Distribution Date, (d) 45% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the tenth anniversary of the first Distribution Date, and (e) 50% of
the related Original Subordinated Principal Balance if such Distribution Date
occurs in the year beginning with and including the eleventh anniversary of the
first Distribution Date or thereafter, provided, notwithstanding the foregoing,
if the following conditions are met:

     (i) the Aggregate Subordinated Percentage is greater than or equal to twice
such percentage calculated as of the Closing Date;

     (ii) the outstanding Principal Balance of all Mortgage Loans in each Pool
delinquent 60 days or more (including Mortgage Loans in foreclosure, REO
property or bankruptcy status), averaged over the preceding six-month period, as
a percentage of the related Subordinated Amount (without giving effect to any
payments on such Distribution Date), does not equal or exceed 50%; and

     (iii) cumulative Realized Losses with respect to the Mortgage Loans in each
Pool do not exceed, as a percentage of the related Subordinated Amount as of the
Closing Date plus the pro rata portion (based upon the outstanding Principal
Balance of each outstanding Certificate Pool) of the Subordinated Amount for
each Pool for which the related Class A Certificates have been reduced to zero,

          (a) for any Distribution Date on or prior to the August 2009
Distribution Date, 20%, or

          (b) for any Distribution Date after the August 2009 Distribution Date,
30%,

then the Class 2-A Prepayment Percentage for such Distribution Date will equal:

     (i) for any Distribution Date on or prior to the August 2009 Distribution
Date, the Class 2-A Percentage plus 50% of the Class 2-A Subordinated
Percentage, or

     (ii) for any Distribution Date after the August 2009 Distribution Date, the
Class 2-A Percentage.

     CLASS 2-A PRINCIPAL BALANCE: As of any Distribution Date, (a) the Class 2-A
Principal Balance for the immediately preceding Distribution Date less (b)
amounts distributed to the Class 2-A Certificateholders on such preceding
Distribution Date allocable to principal (including the principal portion of
Advances of the Servicer made pursuant to Section 6.03 and Realized Losses
allocated to the Class 2-A Certificates pursuant to Section 6.04); as adjusted
to reflect any adjustments to the Outstanding Certificate Principal Balance of
the Class 2-A Certificates as a result of Subsequent Recoveries; provided that
the Class 2-A Principal Balance on the first Distribution Date will be the
Original Class 2-A Principal Balance.

     CLASS 2-A PRINCIPAL PAYMENT RULES: (A) With respect to any Distribution
Date prior to the Credit Support Depletion Date, distributions to the Class 2-A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(B) shall be made to the
Class 2-A1, Class 2-A2, Class 2-A3 and Class 2-A4 Certificates, as follows:

     Concurrently:

     (I) 96.0499024858%, sequentially, to the Class 2-A1, Class 2-A2, and Class
2-A3 Certificates, until the Principal Balance of each such Class has been
reduced to zero; and

                                       11

<PAGE>

     (II) 3.9500975142%, to the Class 2-A4 Certificates, until the Principal
Balance of such Class has been reduced to zero.

     (B) With respect to any Distribution Date on or after the Credit Support
Depletion Date, distributions otherwise allocated to the Class A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(B) shall be allocated to
the Class A Certificateholders pursuant to Section 6.01(II) and not in
accordance with the priorities set forth above.

     CLASS 2-A SUBORDINATED PERCENTAGE: As of any Distribution Date, the
difference between 100% and the Class 2-A Percentage.

     CLASS 2-A SUBORDINATED PREPAYMENT PERCENTAGE: As of any Distribution Date,
the difference between 100% and the Class 2-A Prepayment Percentage.

     CLASS 2-AX CERTIFICATE: Any one of the Class 2-AX Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 2-AX INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Class 2-AX Notional Amount
minus (i) any Compensating Interest Shortfall allocated to the Class 2-AX
Certificates on such Distribution Date pursuant to Section 6.05(b), (ii) any
Realized Loss Interest Shortfall resulting from an Excess Loss allocated to the
Class 2-AX Certificates on such Distribution Date pursuant to Section 6.05(c),
and (iii) any interest shortfall resulting from the Relief Act, allocated to the
Class 2-AX Certificates on such Distribution Date pursuant to Section 6.05(d).

     CLASS 2-AX NOTIONAL AMOUNT: With respect to any Distribution Date, an
amount equal to the Class 2-A3 Principal Balance.

     CLASS 2-AX SHORTFALL: With respect to any Distribution Date the amount
equal to the excess, if any, of the Class 2-AX Interest Accrual Amount over the
amount actually distributed to the Class 2-AX Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(O).

     CLASS 2-A1 CERTIFICATE: Any one of the Class 2-A1 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 2-A1 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 2-A1 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 2-A1 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 2-A1 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 2-A1 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 2-A1 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 2-A1 Interest Accrual Amount over the
amount actually distributed to the Class 2-A1 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(E).

                                       12

<PAGE>

     CLASS 2-A2 CERTIFICATE: Any one of the Class 2-A2 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 2-A2 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 2-A2 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 2-A2 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 2-A2 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 2-A2 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 2-A2 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 2-A2 Interest Accrual Amount over the
amount actually distributed to the Class 2-A2 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(F).

     CLASS 2-A3 CERTIFICATE: Any one of the Class 2-A3 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 2-A3 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 2-A3 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 2-A3 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 2-A3 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 2-A3 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 2-A3 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 2-A3 Interest Accrual Amount over the
amount actually distributed to the Class 2-A3 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(G).

     CLASS 2-A4 CERTIFICATE: Any one of the Class 2-A4 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 2-A4 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 2-A4 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 2-A4 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 2-A4 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 2-A4 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 2-A4 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 2-A4 Interest Accrual Amount over the
amount actually distributed to the Class 2-A4 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(H).

                                       13

<PAGE>

     CLASS 3-A CERTIFICATES: The Class 3-A1 and Class 3-A2 Certificates,
referred to collectively.

     CLASS 3-A INTEREST ACCRUAL AMOUNT: On any Distribution Date, an amount
equal to the sum of the Class 3-A1 Interest Accrual Amount and the Class 3-A2
Interest Accrual Amount.

     CLASS 3-A INTEREST SHORTFALL: On any Distribution Date, an amount equal to
the sum of the Class 3-A1 Shortfall and the Class 3-A2 Shortfall.

     CLASS 3-A OPTIMAL PRINCIPAL AMOUNT: With respect to any Distribution Date,
the lesser of (a) the Class 3-A Principal Balance and (b) the sum of:

          (i) the Class 3-A Percentage of the principal portion of all Monthly
     Payments, whether or not received, which were due on the related Due Date
     on Pool 3 Mortgage Loans which were outstanding as of such Due Date;

          (ii) the Class 3-A Prepayment Percentage of all Principal Prepayments
     made on Pool 3 Mortgage Loans during the related Principal Prepayment
     Period;

          (iii) with respect to each Pool 3 Mortgage Loan not described in (iv)
     below, the Class 3-A Percentage of the principal portion of all Insurance
     Proceeds, condemnation awards and any other cash proceeds from a source
     other than the applicable Mortgagor, to the extent required to be deposited
     in the Collection Account pursuant to Section 5.08(iv) and (v), which were
     received during the related Principal Prepayment Period with respect to any
     Pool 3 Mortgage Loan, net of related unreimbursed Servicing Advances and
     net of any portion thereof which, as to any such Mortgage Loan, constitutes
     Late Collections that have been the subject of an Advance on any prior
     Distribution Date;

          (iv) with respect to each Pool 3 Mortgage Loan which has become a
     Liquidated Mortgage Loan during the related Principal Prepayment Period,
     the lesser of (A) the Class 3-A Percentage of an amount equal to the
     Principal Balance of such Mortgage Loan (net of any unreimbursed Advances
     with respect to principal) as of the Due Date immediately preceding the
     date on which such Mortgage Loan became a Liquidated Mortgage Loan and
     (B) the Class 3-A Prepayment Percentage of the Net Liquidation Proceeds
     with respect to such Mortgage Loan (net of any unreimbursed Advances);

          (v) with respect to each Pool 3 Mortgage Loan repurchased during the
     related Principal Prepayment Period pursuant to Sections 2.02, 3.01, 5.01,
     5.21 or 11.01, an amount equal to the Class 3-A Prepayment Percentage of
     the principal portion of the Purchase Price (net of amounts with respect to
     which a distribution of principal has previously been made to the
     applicable Class A Certificateholders); and

          (vi) on or after the Credit Support Depletion Date, the excess of the
     Class 3-A Principal Balance (calculated after giving effect to reductions
     thereof on such Distribution Date with respect to the amounts described in
     (i) - (v) above) over the outstanding principal balance of the Pool 3
     Mortgage Loans, if any, as of the preceding Distribution Date (giving
     effect to any Advances but prior to giving effect to any Principal
     Prepayments received with respect to such Mortgage Loans that have not been
     passed through to the Certificateholders).

                                       14

<PAGE>

     CLASS 3-A PERCENTAGE: As of any Distribution Date, the percentage obtained
by dividing the Class 3-A Principal Balance by the outstanding principal balance
of the Mortgage Loans in Pool 3, but not more than 100%.

     CLASS 3-A PREPAYMENT PERCENTAGE: As of any Distribution Date up to and
including the Distribution Date in August 2013, 100%; as of any Distribution
Date in the first year thereafter, the Class 3-A Percentage plus 70% of the
Class 3-A Subordinated Percentage for such Distribution Date; as of any
Distribution Date in the second year thereafter, the Class 3-A Percentage plus
60% of the Class 3-A Subordinated Percentage for such Distribution Date; as of
any Distribution Date in the third year thereafter, the Class 3-A Percentage
plus 40% of the Class 3-A Subordinated Percentage for such Distribution Date; as
of any Distribution Date in the fourth year thereafter, the Class 3-A Percentage
plus 20% of the Class 3-A Subordinated Percentage for such Distribution Date;
and as of any Distribution Date after the fourth year thereafter, the Class 3-A
Percentage; provided that, if any Class 3-A Percentage as of any such
Distribution Date is greater than the Class 3-A Percentage on the first
Distribution Date, the Class 3-A Prepayment Percentage shall be 100%; and
provided further, that whenever the Class 3-A Percentage equals 0%, the Class
3-A Prepayment Percentage shall equal 0%; and provided further that no reduction
of the Class 3-A Prepayment Percentage below the level in effect for the most
recent period shall occur with respect to any Distribution Date unless, as of
the last day of the month preceding such Distribution Date, (i) the aggregate
outstanding Principal Balance of Mortgage Loans with respect to all four Pools,
each taken individually, delinquent 60 days or more (including for this purpose
any Mortgage Loans in foreclosure and Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust Fund) does not equal
or exceed 50% of the related Subordinated Percentage of the outstanding
Principal Balance of the Mortgage Loans with respect to the related Pool as of
such date and (ii) cumulative Realized Losses with respect to each of the four
Pools do not exceed (a) 30% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the seventh anniversary of the first Distribution Date, (b) 35% of the
related Original Subordinated Principal Balance if such Distribution Date occurs
in the year beginning with and including the eighth anniversary of the first
Distribution Date, (c) 40% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the ninth anniversary of the first Distribution Date, (d) 45% of the
related Original Subordinated Principal Balance if such Distribution Date occurs
in the year beginning with and including the tenth anniversary of the first
Distribution Date, and (e) 50% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the eleventh anniversary of the first Distribution Date or thereafter,
provided, notwithstanding the foregoing, if the following conditions are met:

     (i) the Aggregate Subordinated Percentage is greater than or equal to twice
such percentage calculated as of the Closing Date;

     (ii) the outstanding Principal Balance of all Mortgage Loans in each Pool
delinquent 60 days or more (including Mortgage Loans in foreclosure, REO
property or bankruptcy status), averaged over the preceding six-month period, as
a percentage of the related Subordinated Amount (without giving effect to any
payments on such Distribution Date), does not equal or exceed 50%; and

     (iii) cumulative Realized Losses with respect to the Mortgage Loans in each
Pool do not exceed, as a percentage of the related Subordinated Amount as of the
Closing Date plus the pro rata portion (based upon the outstanding Principal
Balance of each outstanding Certificate Pool) of the Subordinated Amount for
each Pool for which the related Class A Certificates have been reduced to zero,

          (a) for any Distribution Date on or prior to the August 2009
Distribution Date, 20%, or

          (b) for any Distribution Date after the August 2009 Distribution Date,
30%,

                                       15

<PAGE>

then the Class 3-A Prepayment Percentage for such Distribution Date will equal:

     (i) for any Distribution Date on or prior to the August 2009 Distribution
Date, the Class 3-A Percentage plus 50% of the Class 3-A Subordinated
Percentage, or

     (ii) for any Distribution Date after the August 2009 Distribution Date, the
Class 3-A Percentage.

     CLASS 3-A PRINCIPAL BALANCE: As of any Distribution Date, (a) the Class 3-A
Principal Balance for the immediately preceding Distribution Date less (b)
amounts distributed to the Class 3-A Certificateholders on such preceding
Distribution Date allocable to principal (including the principal portion of
Advances of the Servicer made pursuant to Section 6.03 and Realized Losses
allocated to the Class 3-A Certificates pursuant to Section 6.04); as adjusted
to reflect any adjustments to the Outstanding Certificate Principal Balance of
the Class 3-A Certificates as a result of Subsequent Recoveries; provided that
the Class 3-A Principal Balance on the first Distribution Date will be the
Original Class 3-A Principal Balance.

     CLASS 3-A PRINCIPAL PAYMENT RULES: (A) With respect to any Distribution
Date prior to the Credit Support Depletion Date, distributions to the Class 3-A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(C) shall be made, pro
rata, to the Class 3-A1 and Class 3-A2 Certificates until the Principal Balance
of each such Class has been reduced to zero.

     (B) With respect to any Distribution Date on or after the Credit Support
Depletion Date, distributions otherwise allocated to the Class A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(C) shall be allocated to
the Class A Certificateholders pursuant to Section 6.01(II) and not in
accordance with the priorities set forth above.

     CLASS 3-A SUBORDINATED PERCENTAGE: As of any Distribution Date, the
difference between 100% and the Class 3-A Percentage.

     CLASS 3-A SUBORDINATED PREPAYMENT PERCENTAGE: As of any Distribution Date,
the difference between 100% and the Class 3-A Prepayment Percentage.

     CLASS 3-A1 CERTIFICATE: Any one of the Class 3-A1 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 3-A1 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 3-A1 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 3-A1 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 3-A1 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 3-A1 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 3-A1 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 3-A1 Interest Accrual Amount over the
amount actually distributed to the Class 3-A1 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(I).

                                       16

<PAGE>

     CLASS 3-A2 CERTIFICATE: Any one of the Class 3-A2 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 3-A2 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 3-A2 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 3-A2 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 3-A2 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 3-A2 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 3-A2 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 3-A2 Interest Accrual Amount over the
amount actually distributed to the Class 3-A2 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(J).

     CLASS 4-A CERTIFICATES: The Class 4-A1 and Class 4-A2 Certificates,
referred to collectively.

     CLASS 4-A INTEREST ACCRUAL AMOUNT: On any Distribution Date, an amount
equal to the sum of the Class 4-A1 Interest Accrual Amount and the Class 4-A2
Interest Accrual Amount.

     CLASS 4-A INTEREST SHORTFALL: On any Distribution Date, an amount equal to
the sum of the Class 4-A1 Shortfall and the Class 4-A2 Shortfall.

     CLASS 4-A OPTIMAL PRINCIPAL AMOUNT: With respect to any Distribution Date,
the lesser of (a) the Class 4-A Principal Balance and (b) the sum of:

          (i) the Class 4-A Percentage of the principal portion of all Monthly
     Payments, whether or not received, which were due on the related Due Date
     on Pool 4 Mortgage Loans which were outstanding as of such Due Date;

          (ii) the Class 4-A Prepayment Percentage of all Principal Prepayments
     made on Pool 4 Mortgage Loans during the related Principal Prepayment
     Period;

          (iii) with respect to each Pool 4 Mortgage Loan not described in (iv)
     below, the Class 4-A Percentage of the principal portion of all Insurance
     Proceeds, condemnation awards and any other cash proceeds from a source
     other than the applicable Mortgagor, to the extent required to be deposited
     in the Collection Account pursuant to Section 5.08(iv) and (v), which were
     received during the related Principal Prepayment Period with respect to any
     Pool 4 Mortgage Loan, net of related unreimbursed Servicing Advances and
     net of any portion thereof which, as to any such Mortgage Loan, constitutes
     Late Collections that have been the subject of an Advance on any prior
     Distribution Date;

          (iv) with respect to each Pool 4 Mortgage Loan which has become a
     Liquidated Mortgage Loan during the related Principal Prepayment Period,
     the lesser of (A) the Class 4-A Percentage of an amount equal to the
     Principal Balance of such Mortgage Loan (net of any unreimbursed Advances
     with respect to principal) as of the Due Date immediately preceding the
     date on which such Mortgage Loan became a Liquidated Mortgage Loan and
     (B) the Class 4-A Prepayment Percentage of the Net Liquidation Proceeds
     with respect to such Mortgage Loan (net of any unreimbursed Advances);

                                       17

<PAGE>

          (v) with respect to each Pool 4 Mortgage Loan repurchased during the
     related Principal Prepayment Period pursuant to Sections 2.02, 3.01, 5.01,
     5.21 or 11.01, an amount equal to the Class 4-A Prepayment Percentage of
     the principal portion of the Purchase Price (net of amounts with respect to
     which a distribution of principal has previously been made to the
     applicable Class A Certificateholders); and

          (vi) on or after the Credit Support Depletion Date, the excess of the
     Class 4-A Principal Balance (calculated after giving effect to reductions
     thereof on such Distribution Date with respect to the amounts described in
     (i) - (v) above) over the outstanding principal balance of the Pool 4
     Mortgage Loans, if any, as of the preceding Distribution Date (giving
     effect to any Advances but prior to giving effect to any Principal
     Prepayments received with respect to such Mortgage Loans that have not been
     passed through to the Certificateholders).

     CLASS 4-A PERCENTAGE: As of any Distribution Date, the percentage obtained
by dividing the Class 4-A Principal Balance by the outstanding principal balance
of the Mortgage Loans in Pool 4, but not more than 100%.

     CLASS 4-A PREPAYMENT PERCENTAGE: As of any Distribution Date up to and
including the Distribution Date in August 2013, 100%; as of any Distribution
Date in the first year thereafter, the Class 4-A Percentage plus 70% of the
Class 4-A Subordinated Percentage for such Distribution Date; as of any
Distribution Date in the second year thereafter, the Class 4-A Percentage plus
60% of the Class 4-A Subordinated Percentage for such Distribution Date; as of
any Distribution Date in the third year thereafter, the Class 4-A Percentage
plus 40% of the Class 4-A Subordinated Percentage for such Distribution Date; as
of any Distribution Date in the fourth year thereafter, the Class 4-A Percentage
plus 20% of the Class 4-A Subordinated Percentage for such Distribution Date;
and as of any Distribution Date after the fourth year thereafter, the Class 4-A
Percentage; provided that, if any Class 4-A Percentage as of any such
Distribution Date is greater than the Class 4-A Percentage on the first
Distribution Date, the Class 4-A Prepayment Percentage shall be 100%; and
provided further, that whenever the Class 4-A Percentage equals 0%, the Class
4-A Prepayment Percentage shall equal 0%; and provided further that no reduction
of the Class 4-A Prepayment Percentage below the level in effect for the most
recent period shall occur with respect to any Distribution Date unless, as of
the last day of the month preceding such Distribution Date, (i) the aggregate
outstanding Principal Balance of Mortgage Loans with respect to all four Pools,
each taken individually, delinquent 60 days or more (including for this purpose
any Mortgage Loans in foreclosure and Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust Fund) does not equal
or exceed 50% of the related Subordinated Percentage of the outstanding
Principal Balance of the Mortgage Loans with respect to the related Pool as of
such date and (ii) cumulative Realized Losses with respect to each of the four
Pools do not exceed (a) 30% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the seventh anniversary of the first Distribution Date, (b) 35% of the
related Original Subordinated Principal Balance if such Distribution Date occurs
in the year beginning with and including the eighth anniversary of the first
Distribution Date, (c) 40% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the ninth anniversary of the first Distribution Date, (d) 45% of the
related Original Subordinated Principal Balance if such Distribution Date occurs
in the year beginning with and including the tenth anniversary of the first
Distribution Date, and (e) 50% of the related Original Subordinated Principal
Balance if such Distribution Date occurs in the year beginning with and
including the eleventh anniversary of the first Distribution Date or thereafter,
provided, notwithstanding the foregoing, if the following conditions are met:

     (i) the Aggregate Subordinated Percentage is greater than or equal to twice
such percentage calculated as of the Closing Date;

                                       18

<PAGE>

     (ii) the outstanding Principal Balance of all Mortgage Loans in each Pool
delinquent 60 days or more (including Mortgage Loans in foreclosure, REO
property or bankruptcy status), averaged over the preceding six-month period, as
a percentage of the related Subordinated Amount (without giving effect to any
payments on such Distribution Date), does not equal or exceed 50%; and

     (iii) cumulative Realized Losses with respect to the Mortgage Loans in each
Pool do not exceed, as a percentage of the related Subordinated Amount as of the
Closing Date plus the pro rata portion (based upon the outstanding Principal
Balance of each outstanding Certificate Pool) of the Subordinated Amount for
each Pool for which the related Class A Certificates have been reduced to zero,

          (a) for any Distribution Date on or prior to the August 2009
Distribution Date, 20%, or

          (b) for any Distribution Date after the August 2009 Distribution Date,
30%,

then the Class 4-A Prepayment Percentage for such Distribution Date will equal:

     (i) for any Distribution Date on or prior to the August 2009 Distribution
Date, the Class 4-A Percentage plus 50% of the Class 4-A Subordinated
Percentage, or

     (ii) for any Distribution Date after the August 2009 Distribution Date, the
Class 4-A Percentage.

     CLASS 4-A PRINCIPAL BALANCE: As of any Distribution Date, (a) the Class 4-A
Principal Balance for the immediately preceding Distribution Date less (b)
amounts distributed to the Class 4-A Certificateholders on such preceding
Distribution Date allocable to principal (including the principal portion of
Advances of the Servicer made pursuant to Section 6.03 and Realized Losses
allocated to the Class 4-A Certificates pursuant to Section 6.04); as adjusted
to reflect any adjustments to the Outstanding Certificate Principal Balance of
the Class 4-A Certificates as a result of Subsequent Recoveries; provided that
the Class 4-A Principal Balance on the first Distribution Date will be the
Original Class 4-A Principal Balance.

     CLASS 4-A PRINCIPAL PAYMENT RULES: (A) With respect to any Distribution
Date prior to the Credit Support Depletion Date, distributions to the Class 4-A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(D) shall be made, pro
rata, to the Class 4-A1 and Class 4-A2 Certificates until the Principal Balance
of each such Class has been reduced to zero.

     (B) With respect to any Distribution Date on or after the Credit Support
Depletion Date, distributions otherwise allocated to the Class A
Certificateholders pursuant to Section 6.01(I)(b)(ii)(D) shall be allocated to
the Class A Certificateholders pursuant to Section 6.01(II) and not in
accordance with the priorities set forth above.

     CLASS 4-A SUBORDINATED PERCENTAGE: As of any Distribution Date, the
difference between 100% and the Class 4-A Percentage.

     CLASS 4-A SUBORDINATED PREPAYMENT PERCENTAGE: As of any Distribution Date,
the difference between 100% and the Class 4-A Prepayment Percentage.

     CLASS 4-A1 CERTIFICATE: Any one of the Class 4-A1 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

                                       19

<PAGE>

     CLASS 4-A1 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 4-A1 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 4-A1 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 4-A1 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 4-A1 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 4-A1 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 4-A1 Interest Accrual Amount over the
amount actually distributed to the Class 4-A1 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(K).

     CLASS 4-A2 CERTIFICATE: Any one of the Class 4-A2 Certificates, executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent), senior
in right of payment to the Class M and Class B Certificates, substantially in
the form of the Class A Certificate set forth in Exhibit C hereto.

     CLASS 4-A2 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class 4-A2 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class 4-A2 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class 4-A2 Certificates on such
Distribution Date pursuant to Section 6.05(c), and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class 4-A2 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS 4-A2 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class 4-A2 Interest Accrual Amount over the
amount actually distributed to the Class 4-A2 Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(L).

     CLASS A CERTIFICATES: The Class 1-A1, Class 1-A2, Class 1-A3, Class 1-A4,
Class 1-AX, Class 2-A1, Class 2-A2, Class 2-A3, Class 2-A4, Class 2-AX, Class
3-A1, Class 3-A2, Class 4-A1, Class 4-A2 and Class A-R Certificates, referred to
collectively.

     CLASS A, CLASS M OR CLASS B: Pertaining to Class A Certificates, Class M
Certificates or Class B Certificates, as the case may be.

     CLASS A PERCENTAGE: As of any Distribution Date, the fraction, expressed as
a percentage (which shall never exceed 100%), the numerator of which is the
Class A Principal Balance as of such Distribution Date and the denominator of
which is the outstanding Principal Balance of the Mortgage Loans as of the
immediately preceding Due Date.

     CLASS A PRINCIPAL BALANCE: As of any Distribution Date, the sum of the
Class 1-A Principal Balance, the Class 2-A Principal Balance, the Class 3-A
Principal Balance and the Class 4-A Principal Balance.

     CLASS A-R CERTIFICATE: The Class A-R Certificate executed by the Depositor
and authenticated by the Trustee (or, if an Authenticating Agent has been
appointed pursuant to Section 4.06, the Authenticating Agent), substantially in
the form of the Class A-R Certificate set forth in Exhibit F hereto.

     CLASS A-R INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class A-R

                                       20

<PAGE>

Certificates minus (i) any Compensating Interest Shortfall allocated to the
Class A-R Certificates on such Distribution Date pursuant to Section 6.05(b),
(ii) any Realized Loss Interest Shortfall resulting from an Excess Loss
allocated to the Class A-R Certificates on such Distribution Date pursuant to
Section 6.05(c), and (iii) any interest shortfall resulting from the Relief Act
allocated to the Class A-R Certificates on such Distribution Date pursuant to
Section 6.05(d).

     CLASS A-R SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class A-R Interest Accrual Amount over the
amount actually distributed to the Class A-R Certificateholders on such
Distribution Date pursuant to Section 6.01(I)(b)(i)(M).

     CLASS B CERTIFICATES: The Class B-1, Class B-2, Class B-3, Class B-4 and
Class B-5 Certificates, referred to collectively.

     CLASS B PERCENTAGE: As of any Distribution Date, the difference between
100% and the sum of (i) the Class A Percentage and (ii) the Class M Percentage
for such Distribution Date.

     CLASS B PRINCIPAL BALANCE: As of any Distribution Date, the excess of the
Mortgage Pool Principal Balance (together with the principal portion of any
Monthly Payment due but not paid with respect to which an Advance has not been
made) over the sum of (i) the Class A Principal Balance and (ii) the Class M
Principal Balance.

     CLASS B-1 CERTIFICATE: Any one of the Class B-1 Certificates executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent),
subordinated in right of payment to the Class A and Class M Certificates,
substantially in the form of the Class B Certificate set forth in Exhibit E
hereto.

     CLASS B-1 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class B-1 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class B-1 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class B-1 Certificates on such
Distribution Date pursuant to Section 6.05(c) and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class B-1 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS B-1 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class B-1 Interest Accrual Amount over the
amount actually distributed to the Class B-1 Certificates on such Distribution
Date pursuant to Section 6.01(I)(d)(1) (A) and (B).

     CLASS B-2 CERTIFICATE: Any one of the Class B-2 Certificates executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent),
subordinated in right of payment to the Class A, Class M and Class B-1
Certificates, substantially in the form of the Class B Certificate set forth in
Exhibit E hereto.

     CLASS B-2 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class B-2 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class B-2 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class B-2 Certificates on such
Distribution Date pursuant to Section 6.05(c) and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class B-2 Certificates on such
Distribution Date pursuant to Section 6.05(d).

                                       21

<PAGE>

     CLASS B-2 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class B-2 Interest Accrual Amount over the
amount actually distributed to the Class B-2 Certificates on such Distribution
Date pursuant to Section 6.01(I)(d)(2) (A) and (B).

     CLASS B-3 CERTIFICATE: Any one of the Class B-3 Certificates executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent),
subordinated in right of payment to the Class A, Class M, Class B-1 and Class
B-2 Certificates, substantially in the form of the Class B Certificate set forth
in Exhibit E hereto.

     CLASS B-3 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class B-3 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class B-3 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class B-3 Certificates on such
Distribution Date pursuant to Section 6.05(c) and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class B-3 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS B-3 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class B-3 Interest Accrual Amount over the
amount actually distributed to the Class B-3 Certificates on such Distribution
Date pursuant to Section 6.01(I)(d)(3) (A) and (B).

     CLASS B-4 CERTIFICATE: Any one of the Class B-4 Certificates executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent),
subordinated in right of payment to the Class A, Class M, Class B-1, Class B-2
and Class B-3 Certificates, substantially in the form of the Class B Certificate
set forth in Exhibit E hereto.

     CLASS B-4 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class B-4 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class B-4 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class B-4 Certificates on such
Distribution Date pursuant to Section 6.05(c) and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class B-4 Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS B-4 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class B-4 Interest Accrual Amount over the
amount actually distributed to the Class B-4 Certificates on such Distribution
Date pursuant to Section 6.01(I)(d)(4) (A) and (B).

     CLASS B-5 CERTIFICATE: Any one of the Class B-5 Certificates executed by
the Depositor and authenticated by the Trustee (or, if an Authenticating Agent
has been appointed pursuant to Section 4.06, the Authenticating Agent),
subordinated in right of payment to the Class A, Class M, Class B-1, Class B-2,
Class B-3 and Class B-4 Certificates, substantially in the form of the Class B
Certificate set forth in Exhibit E hereto.

     CLASS B-5 INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date,
one month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class B-5 Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class B-5 Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class B-5 Certificates on such
Distribution Date pursuant to Section 6.05(c)

                                       22

<PAGE>

and (iii) any interest shortfall resulting from the Relief Act allocated to the
Class B-5 Certificates on such Distribution Date pursuant to Section 6.05(d).

     CLASS B-5 SHORTFALL: With respect to any Distribution Date, the amount
equal to the excess, if any, of the Class B-5 Interest Accrual Amount over the
amount actually distributed to the Class B-5 Certificates on such Distribution
Date pursuant to Section 6.01(I)(d)(5) (A) and (B).

     CLASS LT-R INTEREST: The sole residual interest in the Lower-Tier REMIC.

     CLASS M CERTIFICATE: Any one of the Class M Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has
been appointed pursuant to Section 4.06, the Authenticating Agent), subordinated
in right of payment to the Class A Certificates, substantially in the form of
the Class M Certificate set forth in Exhibit D hereto.

     CLASS M INTEREST ACCRUAL AMOUNT: With respect to any Distribution Date, one
(1) month's interest at the Certificate Rate on the Outstanding Certificate
Principal Balance of the Class M Certificates minus (i) any Compensating
Interest Shortfall allocated to the Class M Certificates on such Distribution
Date pursuant to Section 6.05(b), (ii) any Realized Loss Interest Shortfall
resulting from an Excess Loss allocated to the Class M Certificates on such
Distribution Date pursuant to Section 6.05(c) and (iii) any interest shortfall
resulting from the Relief Act allocated to the Class M Certificates on such
Distribution Date pursuant to Section 6.05(d).

     CLASS M PERCENTAGE: As of any Distribution Date, the percentage obtained by
dividing the Class M Principal Balance by the Mortgage Pool Principal Balance,
but not more than 100%; provided, however, that on any Distribution Date on
which the Class B Percentage equals 0%, the Class M Percentage shall equal 100%
minus the Class A Percentage.

     CLASS M PRINCIPAL BALANCE: As of any Distribution Date, (a) the Class M
Principal Balance for the immediately preceding Distribution Date less (b)
amounts distributed to the Class M Certificateholders on such preceding
Distribution Date allocable to principal (including the principal portion of
Advances of the Servicer made pursuant to Section 6.03 and Realized Losses
allocated to the Class M Certificates pursuant to Section 6.04); provided that
the Class M Principal Balance on the first Distribution Date shall be the
Original Class M Principal Balance, and provided further that if the aggregate
Outstanding Certificate Principal Balance of the Class B Certificates has been
reduced to zero, as of any Distribution Date, the Class M Principal Balance will
equal the excess of the Mortgage Pool Principal Balance (together with the
portion of any Monthly Payment due but not paid with respect to which an Advance
has not been made) over the Class A Principal Balance.

     CLASS M SHORTFALL: With respect to any Distribution Date, the amount equal
to the excess, if any, of the Class M Interest Accrual Amount over the amount
actually distributed to the Class M Certificateholders on such Distribution Date
pursuant to Section 6.01(I)(c) (A) and (B).

     CLASS MT-R INTEREST: The sole residual interest in the Middle-Tier REMIC.

     CLOSING DATE: August 22, 2006.

     CODE: The Internal Revenue Code of 1986, as amended from time to time, and
any successor statutes thereto, and applicable U.S. Department of Treasury
temporary or final regulations promulgated thereunder.

     COLLECTION ACCOUNT: The account created and maintained pursuant to Section
5.08.

                                       23

<PAGE>

     COMMISSION: The United States Securities and Exchange Commission.

     COMPENSATING INTEREST: The meaning specified in Section 6.05(a).

     COMPENSATING INTEREST SHORTFALL: The meaning specified in Section 6.05(b).

     CO-OP LEASE: With respect to a Co-op Loan, the lease with respect to a
dwelling unit occupied by the Mortgagor and relating to the stock allocated to
the related dwelling unit.

     CO-OP LOAN: A Mortgage Loan secured by the pledge of stock allocated to a
dwelling unit in a residential cooperative housing corporation and a collateral
assignment of the related Co-op Lease.

     CREDIT SUPPORT: With respect to each Class of Subordinated Certificates
(other than the Class B-5 Certificates), the level of credit support supporting
such Class, expressed as a percentage of the aggregate Outstanding Certificate
Principal Balance of all Classes of Certificates. With respect to each
Distribution Date, Credit Support for each such Class will equal in each case
the percentage, rounded to two decimal places, obtained by dividing the
aggregate Outstanding Certificate Principal Balances immediately prior to such
Distribution Date of all Classes of Subordinated Certificates having higher
numerical class designations than such Class (for this purpose, the Class M
Certificates shall be deemed to have a lower numerical class designation than
each Class of Class B Certificates) by the aggregate Outstanding Certificate
Principal Balance of all Classes of Certificates immediately prior to such
Distribution Date.

     CREDIT SUPPORT DEPLETION DATE: The first Distribution Date on which the
aggregate Outstanding Certificate Principal Balance of the Subordinated
Certificates has been or will be reduced to zero.

     CUSTODIAN: JPMorgan Chase Bank, N.A.

     CUT-OFF DATE: August 1, 2006.

     DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction in
the scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code, other than such a
reduction resulting from a Deficient Valuation.

     DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation of the
related Mortgaged Property (or stock allocated to a dwelling unit, in the case
of a Co-op Loan) by a court of competent jurisdiction in an amount less than the
then outstanding Principal Balance of the Mortgage Loan, which valuation results
from a proceeding initiated under the Bankruptcy Code.

     DEFINITIVE CERTIFICATES: The Certificates referred to in Section 4.01(c).

     DEPOSITOR: Chase Mortgage Finance Corporation, a Delaware corporation, or
its successor in interest or any successor under this Agreement appointed as
herein provided.

     DEPOSITORY: The Depository Trust Company, the nominee of which is Cede &
Co.

     DEPOSITORY AGREEMENT: The agreement referred to in Section 4.01(b).

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

                                       24

<PAGE>

     DETERMINATION DATE: The sixteenth day of the month in which the related
Distribution Date occurs (or, if such sixteenth day is not a Business Day, the
preceding Business Day).

     DISQUALIFIED ORGANIZATION: An organization referred to in Section
860E(e)(5) of the Code.

     DISTRIBUTION DATE: The 25th day of any month, or if such 25th day is not a
Business Day, the first Business Day immediately following, beginning with
September 25, 2006.

     DUE DATE: The first day of each month, being the day of the month on which
each Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.

     DUE PERIOD: With respect to any Distribution Date, the period from the
second day of the month preceding the month in which such Distribution Date
occurs through the first day of the month in which such Distribution Date
occurs.

     ELIGIBLE ACCOUNT: An account that is (i) maintained with a depository
institution the long-term unsecured debt obligations of which are rated by each
Rating Agency in one of its two highest rating categories, or (ii) maintained
with the corporate trust department of a national bank or banking corporation
which (a) has a rating of at least Baa3 or P-3 by Moody's and (b) is either
Chase or is the corporate trust department of a national bank or banking
corporation which has a rating of at least A-1 by S&P and F1 by Fitch Ratings,
or (iii) an account or accounts the deposits in which are fully insured by the
FDIC, or (iv) an account or accounts in a depository institution in which such
accounts are insured by the FDIC (to the limit established by the FDIC), the
uninsured deposits in which accounts are otherwise secured such that, as
evidenced by an Opinion of Counsel delivered to and acceptable to the Trustee
and each Rating Agency, the Certificateholders have a claim with respect to the
funds in such account and a perfected first security interest against any
collateral (which shall be limited to Eligible Investments) securing such funds
that is superior to claims of any other depositors or creditors of the
depository institution with which such account is maintained, provided, however,
that such uninsured deposits do not result in the reduction of the ratings
assigned to the Certificates by the Rating Agencies as evidenced by a letter
from each Rating Agency or (v) otherwise acceptable to each Rating Agency
without reduction or withdrawal of the rating of any Class of Certificates, as
evidenced by a letter from each Rating Agency.

     ELIGIBLE INVESTMENTS: One or more of the following:

     (i) obligations of, or guaranteed as to principal and interest by, the
United States or obligations of any agency or instrumentality thereof when such
obligations are backed by the full faith and credit of the United States;
provided that any such obligation held as a "cash flow investment" within the
meaning of section 860G(a)(6) of the Code shall mature before the next
Distribution Date;

     (ii) repurchase agreements on obligations specified in clause (i) maturing
not more than two months from the date of acquisition thereof, provided that the
long-term unsecured obligations of the party agreeing to repurchase such
obligations are at the time rated by each Rating Agency with its highest rating
and the short-term debt obligations of the party agreeing to repurchase are
rated with one of the two highest ratings by Moody's, A-1+ by S&P and, if rated
by Fitch, F+ by Fitch;

     (iii) federal funds, certificates of deposit, time deposits and bankers'
acceptances (other than bankers' acceptances issued by Chase or any of its
Affiliates) (which shall each have an original maturity of not more than 60 days
and, in the case of bankers' acceptances, shall in no event have an original
maturity of more than 365 days) of any United States depository institution or
trust company incorporated under the laws of the United States or any state,
provided that the long-term unsecured debt obligations of such depository
institution or trust company at the date of acquisition thereof have been rated
by each

                                       25

<PAGE>

Rating Agency with its highest rating and the short-term obligations of such
depository institution or trust company are rated A-1+ by S&P, P-1 by Moody's
and, if rated by Fitch, F+ by Fitch;

     (iv) commercial paper (other than commercial paper issued by Chase or any
of its Affiliates) (having original maturities of not more than 365 days) of any
corporation incorporated under the laws of the United States or any state
thereof which on the date of acquisition has been rated by each Rating Agency in
its highest short-term unsecured commercial paper rating category; provided that
such commercial paper shall have a remaining maturity of not more than 45 days;

     (v) units of taxable money market funds (including those for which the
Trustee or the Servicer or any Affiliate thereof acts as sponsor, administrator
or the like and receives compensation with respect to such investment) which may
be 12b-1 funds, as contemplated under the rules promulgated by the Commission
under the Investment Company Act of 1940, as amended, and which funds have been
rated by each Rating Agency in its highest rating category or which have been
designated in writing by each Rating Agency as Eligible Investments with respect
to this definition; or

     (vi) other obligations or securities (other than investments or obligations
of Chase or any of its Affiliates) acceptable to each Rating Agency rating the
Certificates as an Eligible Investment hereunder and will not result in a
reduction or withdrawal in the then current rating of any Class of Certificates,
as evidenced by a letter to such effect from each Rating Agency;

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

     ERISA: The Employee Retirement Income Security Act of 1974, as amended from
time to time, and any successor statutes thereto, and applicable U.S. Department
of Labor temporary or final regulations promulgated thereunder.

     ERISA QUALIFYING UNDERWRITING: A best efforts or firm commitment
underwriting or private placement that would satisfy the requirements of
Prohibited Transaction Exemption 2002-19, 67 Fed. Reg. 14797 (March 28, 2002),
as amended, or any substantially similar administrative exemption granted by the
U.S. Department of Labor to Chase, except, in relevant part, for the requirement
that the certificates have received a rating at the time of acquisition that is
in one of the three (or four, in the case of a "designated transaction") highest
generic rating categories by at least one of the Rating Agencies.

     ERISA RESTRICTED CERTIFICATE: Any Class B-3, Class B-4 or Class B-5
Certificate and any other Certificate, as long as the acquisition and holding of
such Certificate is not covered by and exempt under Prohibited Transaction
Exemption 2002-19, 67 Fed. Reg. 14797 (March 28, 2002), as amended, or any
substantially similar administrative exemption granted by the U.S. Department of
Labor to Chase.

     ESCROW ACCOUNT: The account or accounts created and maintained pursuant to
Section 5.10.

     ESCROW PAYMENTS: The amounts constituting applicable ground rents, taxes,
assessments, water rates, Standard Hazard Policy premiums and other payments
required to be escrowed by the Mortgagor with the mortgagee pursuant to a
Mortgage Loan.

                                       26

<PAGE>

     EVENT OF DEFAULT: Any of the events specified in Section 9.01.

     EXCEPTION REPORT: The report of the Custodian or Trustee, as applicable,
referred to in Section 2.02.

     EXCESS BANKRUPTCY LOSS: Any Bankruptcy Loss, or portion thereof, which
exceeds the then applicable Bankruptcy Amount.

     EXCESS FRAUD LOSS: Any Fraud Loss, or portion thereof, which exceeds the
then applicable Fraud Loss Amount.

     EXCESS LOSSES: Excess Bankruptcy Losses, Excess Fraud Losses and Excess
Special Hazard Losses, referred to collectively.

     EXCESS SPECIAL HAZARD LOSS: Any Special Hazard Loss, or portion thereof,
that exceeds the then applicable Special Hazard Amount.

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

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

     FHLMC: The Federal Home Loan Mortgage Corporation or any successor
organization.

     FIDELITY BOND: The fidelity bond and errors and omissions insurance to be
maintained by the Servicer pursuant to Section 5.19.

     FINAL SCHEDULED DISTRIBUTION DATE: The Distribution Date in September 2036.

     FITCH RATINGS: Fitch, Inc. or its successor in interest.

     FNMA: The Federal National Mortgage Association, or any successor
organization.

     FNMA GUIDES: The FNMA Sellers' Guide and the FNMA Servicers' Guide, and all
amendments or additions thereto.

     FRAUD LOSS: Any Realized Loss or portion thereof sustained by reason of a
default arising from fraud, dishonesty or misrepresentation in connection with
the related Mortgage Loan, including by reason of the denial of coverage under
any related Primary Insurance Policy.

     FRAUD LOSS AMOUNT: As of any date of determination after the Cut-off Date,
an amount (initially, $32,638,396.64) equal to (X) prior to the third
anniversary of the Cut-off Date, (a) 1.00% of the aggregate principal balance of
all of the Mortgage Loans as of the most recent anniversary of the Cut-off Date
minus (b) the aggregate amounts allocated to the Certificates with respect to
Fraud Losses on the Mortgage Loans since the most recent anniversary of the
Cut-off Date up to such date of determination,

                                       27

<PAGE>

(Y) from the third to (but excluding) the fifth anniversary of the Cut-off Date,
(a) 0.50% of the aggregate principal balance of all of the Mortgage Loans as of
the most recent anniversary of the Cut-off Date minus (b) the aggregate amounts
allocated to the Certificates with respect to Fraud Losses on the Mortgage Loans
since the most recent anniversary of the Cut-off Date up to such date of
determination and (Z) on and after the fifth anniversary of the Cut-off Date,
zero.

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

     INSURANCE PROCEEDS: Proceeds paid by any insurer pursuant to any insurance
policy covering a Mortgage Loan, net of costs of collecting such proceeds and
net of amounts released to the Mortgagor or applied to the restoration of the
Mortgaged Property (or in the underlying Mortgaged Property, in the case of a
Co-op Loan).

     INSURED EXPENSES: Expenses covered by any insurance policy.

     INTEREST ACCRUAL PERIOD: With respect to any Distribution Date and any
Class of Certificates, the calendar month immediately preceding the month in
which the related Distribution Date occurs, in each case calculated on the basis
of a 360-day year of twelve 30-day months.

     JPMMAC: J.P. Morgan Mortgage Acquisition Corp., a Delaware corporation, or
its successor in interest.

     LATE COLLECTIONS: With respect to any Mortgage Loan, all amounts received
during any Due Period, whether as late payments of Monthly Payments or as
Liquidation Proceeds, condemnation proceeds, Insurance Proceeds, Subsequent
Recoveries or with respect to a disposition of a Mortgaged Property (or stock
allocated to a dwelling unit, in the case of a Co-op Loan) which has been
acquired by foreclosure or deed in lieu of foreclosure or otherwise, which
represent late payments or collections of Monthly Payments due but delinquent
for a previous Due Period and not previously recovered.

     LIQUIDATED MORTGAGE LOAN: Any Mortgage Loan (a) as to which the Servicer
has determined that all amounts which it expects to recover from or on account
of such Mortgage Loan or property acquired in respect thereof have been
recovered, (b) as to which a Cash Liquidation has taken place or (c) with
respect to which the Mortgaged Property (or stock allocated to a dwelling unit,
in the case of a Co-op Loan) has been acquired by foreclosure or deed in lieu of
foreclosure and a disposition (the term disposition shall include, for purposes
of a repurchase pursuant to Section 11.01, any repurchase of a Mortgaged
Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan)
pursuant to such Section) of such Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) has occurred.

     LIQUIDATION EXPENSES: Expenses which are incurred by the Servicer or any
Sub-Servicer in connection with the liquidation of any defaulted Mortgage Loan
or property acquired in respect thereof including, without limitation, legal
fees and expenses, any unreimbursed amount expended by the Servicer pursuant to
Sections 5.16 and 5.21 respecting the related Mortgage Loan and any related and
unreimbursed expenditures for real estate property taxes or for property
restoration or preservation.

         LIQUIDATION PROCEEDS: Cash (including Insurance Proceeds) received by
the Servicer in connection with the liquidation of any Mortgage Loan or
Mortgaged Property (or stock allocated to a dwelling unit, in the case of a
Co-op Loan) acquired in respect thereof, whether through the sale or assignment
of such Mortgage Loan (other than pursuant to Section 5.21), trustee's sale,
foreclosure sale or otherwise, or the sale of the Mortgaged Property (or stock
allocated to a dwelling unit, in the case of a

                                       28

<PAGE>

Co-op Loan) if the Mortgaged Property (or stock allocated to a dwelling unit, in
the case of a Co-op Loan) is acquired in satisfaction of the Mortgage Loan other
than amounts required to be paid to the Mortgagor pursuant to law or the terms
of the applicable Mortgage Note.

     LOAN-TO-VALUE RATIO: The fraction, expressed as a percentage, the numerator
of which is the principal amount of the related Mortgage Loan at the time of
origination (or, (i) for purposes of Section 5.15, at the time of determination
and (ii) for purposes of a Mortgage Loan with respect to which a conversion from
adjustable rate to fixed rate has occurred, at the time of initial origination)
and the denominator of which is the Appraised Value of the related Mortgaged
Property (or applicable dwelling unit, in the case of a Co-op Loan) at the time
of origination or, in the case of a Mortgage Loan financing the acquisition of
the Mortgaged Property (or applicable dwelling unit, in the case of a Co-op
Loan), the sales price of the Mortgaged Property (or applicable dwelling unit,
in the case of a Co-op Loan), if such sales price is less than such appraised
value; provided however, certain Mortgage Loans financing the acquisition of a
Mortgaged Property in New York will be based solely on the appraised value.

     LOWER-TIER REMIC: The Lower-Tier REMIC as described in Section 2.04.

     LOWER-TIER REMIC INTEREST: Any one of the Classes of Lower-Tier REMIC
Interests described in Section 2.04.

     LOWER-TIER REMIC REGULAR INTEREST: Any one of the Lower-Tier REMIC
Interests other than the Class LT-R Interest.

     LOWER-TIER REMIC SUBORDINATED BALANCE RATIO: The ratio among the
Uncertificated Principal Balances of each of the Lower-Tier REMIC Regular
Interests ending with the designation "A" that is equal to the ratio among, with
respect to each such Lower-Tier REMIC Regular Interest, the excess of (x) the
aggregate Scheduled Principal Balance of the Mortgage Loans in the related Pool
over (y) the aggregate class principal amounts of the Certificate Pool related
to such Pool.

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

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

     MIDDLE-TIER REMIC: The Middle-Tier REMIC as described in Section 2.04.

     MIDDLE-TIER REMIC INTEREST: Any one of the Classes of Middle-Tier REMIC
Interests described in Section 2.04.

     MIDDLE-TIER REMIC REGULAR INTEREST: Any one of the Middle-Tier REMIC
Interests other than the Class MT-R Interest.

     MODIFIED MORTGAGE LOAN: Any Mortgage Loan which the Servicer has modified
pursuant to Section 5.01.

     MONTHLY PAYMENT: The minimum required monthly payment of principal and
interest due on a Mortgage Loan as specified in the Mortgage Note for any Due
Date (before any adjustment to such scheduled amount by reason of any bankruptcy
or similar proceeding or any moratorium or similar waiver or grace period).
Monthly Payments shall be deemed due on an Outstanding Mortgage Loan until such
time as it becomes a Liquidated Mortgage Loan.

                                       29

<PAGE>

     MOODY'S: Moody's Investors Service, Inc. or its successor in interest.

     MORTGAGE: With respect to a Mortgage Loan that is not a Co-op Loan, the
mortgage, deed of trust or other instrument creating a first lien or a first
priority ownership interest in an estate in fee simple in real property securing
a Mortgage Note. With respect to a Co-op Loan, the security agreement creating a
security interest in the stock allocated to a dwelling unit in a residential
cooperative housing corporation and pledged to secure such Co-op Loan and the
related Co-op Lease.

     MORTGAGE FILE: As to each Mortgage Loan, the items referred to in Exhibit B
annexed hereto.

     MORTGAGE LOAN: An individual mortgage loan and all rights with respect
thereto, evidenced by a Mortgage and a Mortgage Note, sold and assigned by the
Depositor to the Trustee and which is subject to this Agreement and included in
the Trust Fund. The Mortgage Loans originally sold and subject to this Agreement
are identified on the Mortgage Loan Schedule.

     MORTGAGE LOAN SCHEDULE: The schedule of Mortgage Loans attached hereto as
Exhibit A as it may be amended in accordance with Section 3.03, setting forth
the following information as to each Mortgage Loan: (i) the Mortgage Loan
identifying number; (ii) the city, state and zip code of the Mortgaged Property
(or Underlying Mortgaged Property, in the case of a Co-op Loan); (iii) an
indication of whether the Mortgaged Property (or the related residential
dwelling unit in the Underlying Mortgaged Property, in the case of a Co-op Loan)
is owner-occupied; (iv) the property type of the Mortgaged Property (or the
related residential dwelling unit in the Underlying Mortgaged Property, in the
case of a Co-op Loan); (v) the original number of months to stated maturity;
(vi) the number of months remaining to stated maturity from the Cut-off Date;
(vii) the original Loan-to-Value Ratio; (viii) the original principal balance of
the Mortgage Loan; (ix) the unpaid principal balance of the Mortgage Loan as of
the close of business on the Cut-off Date; (x) the Mortgage Rate; and (xi) the
amount of the current Monthly Payment.

     MORTGAGE NOTE: The note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage.

     MORTGAGE POOL: The pool of Mortgage Loans held in the Trust Fund.

     MORTGAGE POOL PRINCIPAL BALANCE: As of any date of determination, the
aggregate of the Principal Balances of each Outstanding Mortgage Loan on such
date of determination less the principal portion of any Monthly Payment due but
not paid with respect to which an Advance has not been made, initially
$1,087,946,521.24.

     MORTGAGED PROPERTY: The property securing a Mortgage Note.

     MORTGAGE RATE: With respect to each Mortgage Loan, the per annum rate of
interest borne by the Mortgage Loan, as specified in the Mortgage Note. The
Mortgage Rate for any Mortgage Loan shall be zero with respect to the period
prior to the period during which interest accrues with respect to such Mortgage
Loan's first Monthly Payment.

     MORTGAGOR: The obligor on a Mortgage Note.

     NET LIQUIDATION PROCEEDS: As to any Liquidated Mortgage Loan, Liquidation
Proceeds net of Liquidation Expenses.

                                       30

<PAGE>

     NET MORTGAGE RATE: With respect to each Mortgage Loan, a per annum rate of
interest for the applicable period equal to the Mortgage Rate less (i) the
Servicing Fee Rate and (ii) in the case of a substitute Mortgage Loan, any
excess of the Mortgage Rate on the substitute Mortgage Loan over the Mortgage
Rate on the removed Mortgage Loan.

     NON-MERS MORTGAGE LOAN: Any Mortgage Loan other than a MERS Mortgage Loan.

     NONRECOVERABLE ADVANCE: Any Advance previously made or proposed to be made
in respect of a Mortgage Loan by the Servicer pursuant to Section 6.03 which, in
the good faith judgment of the Servicer, will not or, in the case of a proposed
Advance, would not, ultimately be recoverable by the Servicer from Late
Collections or otherwise. The determination by the Servicer that it has made, or
would be making, a Nonrecoverable Advance shall be evidenced by a certificate of
a Servicing Officer of the Servicer delivered to the Trustee, any co-trustee and
the Depositor and detailing the reasons for such determination.

     OFFICERS' CERTIFICATE: A certificate signed by two of the Chairman of the
Board, the Vice Chairman of the Board, the President or a Vice President, the
Treasurer or the Secretary or one of the Assistant Treasurers or Assistant
Secretaries or any other duly authorized officer of the Depositor or the
Servicer, and delivered to the Trustee.

     OPINION OF COUNSEL: A written opinion of counsel, who may be counsel for
the Depositor or the Servicer and who is reasonably acceptable to the Trustee.

     ORIGINAL CERTIFICATE PRINCIPAL BALANCE: With respect to any Class of
Certificates, the amount specified for such Class in Section 4.01(d).

     ORIGINAL CLASS 1-A PRINCIPAL BALANCE:  $221,857,000.

     ORIGINAL CLASS 2-A  PRINCIPAL BALANCE: $581,454,000.

     ORIGINAL CLASS 3-A PRINCIPAL BALANCE:  $ 51,267,000.

     ORIGINAL CLASS 4-A PRINCIPAL BALANCE:  $194,744,000.

     ORIGINAL CLASS M PRINCIPAL BALANCE:    $ 16,865,000.

     ORIGINAL CLASS B PRINCIPAL BALANCE:    $ 21,759,521.

     ORIGINAL CREDIT SUPPORT: With respect to any Class of Subordinated
Certificates (other than the Class B-5 Certificates), the level of Credit
Support indicated below:

                               Class M:     2.00%
                               Class B-1:   1.25%
                               Class B-2:   0.80%
                               Class B-3:   0.50%
                               Class B-4:   0.25%

     ORIGINAL SUBORDINATED PRINCIPAL BALANCE: With respect to any Pool, the
related Subordinated Amount, as of the date of issuance of the Certificates.

     OUTSTANDING CERTIFICATE PRINCIPAL BALANCE: With respect to any Class of
Certificates and any Distribution Date, the Original Certificate Principal
Balance of such Class minus the sum of (i) any distributions of principal made
on such Class prior to such Distribution Date and (ii) any

                                       31

<PAGE>

Realized Losses allocated to such Class prior to such Distribution Date;
provided, however, that on any Distribution Date on which a Subsequent Recovery
is distributed, the Outstanding Certificate Principal Balance of any Class of
Certificates then outstanding for which any Realized Loss has been applied will
be increased, in order of seniority, by an amount equal to the lesser of (i) the
amount the Class of Certificates has been reduced by any Realized Losses which
have not been previously offset by any Subsequent Recovery pursuant to this
proviso and (ii) the total amount of any Subsequent Recovery distributed on such
date to Certificateholders (as reduced (x) by increases in the Outstanding
Certificate Principal Balance of more senior Classes of Certificates on such
Distribution Date and (y) to reflect a proportionate amount of what would (but
for this clause (y)) have been the increases in the Outstanding Certificate
Principal Balance of Classes of Certificates of equal seniority on such
Distribution Date); provided, further, however, that (I) with respect to the
Class of Class B Certificates then outstanding having the highest numerical
class designation, the Outstanding Certificate Principal Balance of such Class
shall equal the excess of the Mortgage Pool Principal Balance (together with the
principal portion of any Monthly Payment due but not paid with respect to which
an Advance has not been made) over the sum of the Outstanding Certificate
Principal Balances of all Classes of Certificates (other than the Class of Class
B Certificates then outstanding having the highest numerical class designation);
and (II) during such time as the Outstanding Certificate Principal Balance of
the Class B-1 Certificates equals zero, with respect to the Class M
Certificates, the Outstanding Certificate Principal Balance of such Class shall
equal the excess of the Mortgage Pool Principal Balance (together with the
principal portion of any Monthly Payment due but not paid with respect to which
an Advance has not been made) over the sum of the Outstanding Certificate
Principal Balances of all Class A Certificates.

     OUTSTANDING MORTGAGE LOAN: As to any Distribution Date, a Mortgage Loan
which was not paid in full during the related or any previous Principal
Prepayment Period, which did not become a Liquidated Mortgage Loan during the
related or any previous Principal Prepayment Period and which was not
repurchased under Section 2.02, 3.01, 5.01, 5.21 or 11.01 during the related or
any previous Principal Prepayment Period.

     OVERCOLLATERALIZED POOL: As defined in Section 6.01(I)(b)(ix)(B).

     PASS-THRU ENTITY: A "Pass-Thru Entity" as defined in Section 860E(e)(6) of
the Code.

     PAYING AGENT: The Person appointed by the Trustee as Paying Agent pursuant
to Section 4.05.

     PERCENTAGE INTEREST: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made hereunder, such
percentage interest being equal, with respect to any Class, to the percentage
obtained by dividing the Outstanding Certificate Principal Balance (or the Class
1-AX Notional Amount and Class 2-AX Notional Amount in the case of the Class
1-AX and Class 2-AX Certificates, respectively) of such Certificate by the
aggregate of the Outstanding Certificate Principal Balances (or the Class 1-AX
Notional Amount and Class 2-AX Notional Amount in the case of the Class 1-AX and
Class 2-AX Certificates, respectively) of all the Certificates of such Class and
with respect to all Certificates, the percentage obtained by dividing the
Outstanding Certificate Principal Balance of such Certificate by the aggregate
of the Outstanding Certificate Principal Balances of all the Certificates.

     PERMITTED ACTIVITIES: The primary activities of the Trust created pursuant
to this Agreement which shall be: (i) holding Mortgage Loans transferred from
the Depositor and other assets of the Trust Fund, including any credit
enhancement and passive derivative financial instruments that pertain to
beneficial interests issued or sold to parties other than the Depositor, its
Affiliates, or its agents; (ii) issuing certificates and other interests in the
assets of the Trust Fund; (iii) receiving collections on the Mortgage Loans and
making payments on such certificates and interests in accordance with the terms
of this Agreement; and (iv) engaging in other activities that are necessary or
incidental to accomplish these

                                       32

<PAGE>

limited purposes, which activities cannot be contrary to the status of the Trust
Fund as a qualified special purpose entity under existing accounting literature.

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

     PLAN: As defined in Section 4.02(d)(i).

     POOL: Any of the Pool 1, Pool 2, Pool 3 or Pool 4.

     POOL 1: The pool consisting of the Pool 1 Mortgage Loans, and representing
approximately 21.1% of all of the Mortgage Loans held in the Trust Fund.

     POOL 1 MORTGAGE LOANS: Mortgage Loans identified on the Mortgage Loan
Schedule as being Pool 1 Mortgage Loans.

     POOL 1 NET WAC: With respect to any Distribution Date, the weighted average
of the Net Mortgage Rates of the Pool 1 Mortgage Loans as of the first day of
the calendar month immediately preceding the calendar month of such Distribution
Date, weighted on the basis of their Scheduled Principal Balances as of that
date.

     POOL 1 SUBORDINATED AMOUNT: For any Distribution Date, the excess of the
aggregate Scheduled Principal Balance of the Pool 1 Mortgage Loans over the
aggregate Outstanding Certificate Principal Balance of the Class 1-A
Certificates (prior to giving effect to distributions to be made on such
Distribution Date).

     POOL 2: The pool consisting of the Pool 2 Mortgage Loans, and representing
approximately 55.4% of all of the Mortgage Loans held in the Trust Fund.

     POOL 2 MORTGAGE LOANS: Mortgage Loans identified on the Mortgage Loan
Schedule as being Pool 2 Mortgage Loans.

     POOL 2 NET WAC: With respect to any Distribution Date, the weighted average
of the Net Mortgage Rates of the Pool 2 Mortgage Loans as of the first day of
the calendar month immediately preceding the calendar month of such Distribution
Date, weighted on the basis of their Scheduled Principal Balances as of that
date.

     POOL 2 SUBORDINATED AMOUNT: For any Distribution Date, the excess of the
aggregate Scheduled Principal Balance of the Pool 2 Mortgage Loans over the
aggregate Outstanding Certificate Principal Balance of the Class 2-A
Certificates (prior to giving effect to distributions to be made on such
Distribution Date).

     POOL 3: The pool consisting of the Pool 3 Mortgage Loans, and representing
approximately 4.9% of all of the Mortgage Loans held in the Trust Fund.

     POOL 3 MORTGAGE LOANS: Mortgage Loans identified on the Mortgage Loan
Schedule as being Pool 3 Mortgage Loans.

     POOL 3 NET WAC: With respect to any Distribution Date, the weighted average
of the Net Mortgage Rates of the Pool 3 Mortgage Loans as of the first day of
the calendar month immediately preceding the calendar month of such Distribution
Date, weighted on the basis of their Scheduled Principal Balances as of that
date.

                                       33

<PAGE>

     POOL 3 SUBORDINATED AMOUNT: For any Distribution Date, the excess of the
aggregate Scheduled Principal Balance of the Pool 3 Mortgage Loans over the
aggregate Outstanding Certificate Principal Balance of the Class 3-A
Certificates (prior to giving effect to distributions to be made on such
Distribution Date).

     POOL 4: The pool consisting of the Pool 4 Mortgage Loans, and representing
approximately 18.6% of all of the Mortgage Loans held in the Trust Fund.

     POOL 4 MORTGAGE LOANS: Mortgage Loans identified on the Mortgage Loan
Schedule as being Pool 4 Mortgage Loans.

     POOL 4 NET WAC: With respect to any Distribution Date, the weighted average
of the Net Mortgage Rates of the Pool 4 Mortgage Loans as of the first day of
the calendar month immediately preceding the calendar month of such Distribution
Date, weighted on the basis of their Scheduled Principal Balances as of that
date.

     POOL 4 SUBORDINATED AMOUNT: For any Distribution Date, the excess of the
aggregate Scheduled Principal Balance of the Pool 4 Mortgage Loans over the
aggregate Outstanding Certificate Principal Balance of the Class 4-A
Certificates (prior to giving effect to distributions to be made on such
Distribution Date).

     PRIMARY INSURANCE POLICY: Each primary policy of mortgage guaranty
insurance or any replacement policy therefor referred to in Section 5.15 hereof.

     PRINCIPAL BALANCE: At the time of any determination, the principal balance
of a Mortgage Loan remaining to be paid at the close of business on the Cut-off
Date (after deduction of all principal payments due on or before the Cut-off
Date whether or not paid) (or, in the case of a substitute Mortgage Loan
included in the Trust Fund pursuant to Section 3.03, the close of business as of
the date of substitution) reduced by all amounts previously distributed to
Certificateholders that are allocable to payments of principal on such Mortgage
Loan (including the principal portion of Advances of the Servicer made pursuant
to Section 6.03).

     PRINCIPAL PREPAYMENT: Any payment or other recovery of principal on a
Mortgage Loan (other than Late Collections) which is received other than as part
of a monthly payment; provided, however, that the term Principal Prepayment does
not include Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries,
condemnation awards or other cash proceeds from a source other than the
applicable Mortgagor.

     PRINCIPAL PREPAYMENT PERIOD: With respect to any Distribution Date, the
period beginning on the first day of the month preceding the month in which such
Distribution Date occurs and ending on the last day of such month.

     PTCE: As defined in Section 4.02(d)(i).

     PURCHASE PRICE: With respect to any Mortgage Loan required to be purchased
on any date pursuant to Section 2.02, 3.01, 5.01, 5.21 or 11.01, an amount equal
to the sum of (a) 100% of the Principal Balance thereof, (b) unpaid accrued
interest at the Mortgage Rate thereon from the Due Date on which interest was
last paid by the Mortgagor or Advanced by the Servicer to the Due Date next
following the date of repurchase, (c) the aggregate of any unreimbursed Advances
and any unreimbursed Servicing Advances and (d) any unreimbursed costs,
penalties and/or damages incurred by the Trust Fund and/or the Trustee in
connection with any violation relating to such Mortgage Loan of any predatory or
abusive lending law.

                                       34

<PAGE>

     QUALIFIED INSURER: An insurance company duly qualified as such under the
laws of the states in which the Mortgaged Properties are located, duly
authorized and licensed in such states to transact the applicable insurance
business and to write the insurance provided, approved as an insurer by FNMA and
FHLMC and whose claims-paying ability is rated in the two highest rating
categories by S&P, Moody's and Fitch with respect to primary mortgage insurance
and in the two highest rating categories for general policyholder rating and
financial performance index rating by A.M. Best Company or its successor in
interest with respect to hazard and flood insurance.

     RATING AGENCY: Any nationally recognized statistical rating organization,
or its successor, that rated one or more Classes of Certificates at the request
of the Depositor at the time of the initial issuance of the Certificates. If
such organization or a successor is no longer in existence, "Rating Agency"
shall be such nationally recognized statistical rating organization, or other
comparable Person, designated by the Depositor, notice of which designation
shall be given to the Trustee and the Servicer. References herein to the two
highest long-term debt rating categories of a Rating Agency shall mean AA or
better in the case of S&P and Fitch Ratings and Aa or better in the case of
Moody's.

     REALIZED LOSS: With respect to (i) a Liquidated Mortgage Loan, the amount,
if any, by which the unpaid Principal Balance and accrued interest thereon at a
rate equal to the Net Mortgage Rate exceeds the amount actually recovered by the
Servicer with respect thereto (net of reimbursement of Advances and Servicing
Advances) at the time such Mortgage Loan became a Liquidated Mortgage Loan or
(ii) with respect to a Mortgage Loan which is not a Liquidated Mortgage Loan,
any amount of principal that the Mortgagor is no longer legally required to pay
(except for the extinguishment of debt that results from the exercise of
remedies due to default by the Mortgagor).

     REALIZED LOSS INTEREST SHORTFALL: The meaning specified in Section 6.05(c).

     RECORD DATE: The close of business of the last Business Day of the month
preceding the month of the related Distribution Date.

     REGULATION AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 229.1100-229.1123, as such may be amended from time to time,
and subject to such clarification and interpretation as have been provided by
the Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff
of the Commission, or as may be provided by the Commission or its staff from
time to time.

     RELEVANT MORTGAGE LOAN: The meaning specified in Section 5.01.

     RELEVANT SALE AGREEMENT: With respect to any reference to CHF as Seller,
the Mortgage Loan Sale Agreement dated as of August 1, 2006 between the
Depositor and CHF, and with respect to any reference to JPMMAC as Seller, the
Mortgage Loan Sale Agreement dated as of August 1, 2006 between the Depositor
and JPMMAC.

     RELEVANT SELLER: With respect to the Mortgage Loan Sale Agreement dated as
of August 1, 2006 between the Depositor and CHF, CHF, and with respect to the
Mortgage Loan Sale Agreement dated as of August 1, 2006 between the Depositor
and JPMMAC, JPMMAC.

     RELIEF ACT: The Servicemembers Civil Relief Act or the California Military
and Veterans Code, as amended, or any other similar state or local law.

     REMIC: A "real estate mortgage investment conduit," as such term is defined
in Section 860D of the Code. References herein to "a REMIC" or "the REMICs"
shall mean one or all, as the context requires, of the REMICs created hereunder.

                                       35

<PAGE>

     REMIC POOL: Each of the Lower-Tier REMIC, the Middle-Tier REMIC and the
Upper-Tier REMIC.

     REMIC PROVISIONS: Provisions of the federal income tax law relating to
REMICs which appear at Sections 860A through 860G of Part IV of Subchapter M of
Chapter 1 of Subtitle A of the Code, and related provisions, and U.S. Department
of the Treasury temporary, proposed or final regulations and rulings promulgated
thereunder, as the foregoing are in effect (or with respect to proposed
regulations, are proposed to be in effect) from time to time.

     REMIC REPORTING AGENT: As defined in Section 7.02(b).

     REPURCHASE PROCEEDS: All proceeds of any Mortgage Loan or property acquired
in respect thereof repurchased pursuant to Section 2.02, 3.01, 5.01, 5.21 or
11.01.

     RESIDUAL INTEREST: The interest represented by (i) amounts, if any,
remaining in the Collection Account following termination of the Trust Fund
after payments to the Class A Certificateholders (other than the Class A-R
Certificateholders), the Class M Certificateholders and the Class B
Certificateholders and (ii) amounts paid in respect of principal and accrued
interest on the Class A-R Certificates, other than, in the case of both (i) and
(ii), amounts attributable to the Class LT-R Interest or the Class MT-R
Interest.

     RESPONSIBLE OFFICER: When used with respect to the Trustee, any senior vice
president, any vice president, any assistant vice president, any senior trust
officer, any trust officer or any other officer of the Trustee in its Agency &
Trust Office customarily performing functions similar to those performed by any
of the above designated officers

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

     SALE AGREEMENTS: The Mortgage Loan Sale Agreement dated as of August 1,
2006 between the Depositor and CHF and the Mortgage Loan Sale Agreement dated as
of August 1, 2006 between the Depositor and JPMMAC.

     SARBANES-OXLEY CERTIFICATION: The meaning specified in Section 5.24(f).

     SCHEDULED PRINCIPAL BALANCE: With respect to any Mortgage Loan as of any
Distribution Date, the unpaid principal balance of such Mortgage Loan as
specified in the amortization schedule at the time relating thereto (before any
adjustment to such schedule by reason of bankruptcy or similar proceeding or any
moratorium or similar waiver or grace period) as of the Due Date in the month
preceding the month of such Distribution Date, or as the Cut-off Date, with
respect to the first (1st) Distribution Date, after giving effect to any
previously applied prepayments, the payment of principal due on such first day
of the month and any reduction of the principal balance of such Mortgage Loan by
a bankruptcy court, irrespective of any delinquency in payment by the related
Mortgagor.

     SECTION 302 REQUIREMENTS: Any rules or regulations promulgated pursuant to
the Sarbanes-Oxley Act of 2002 (as such may be amended from time to time).

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

     SELLERS: CHF and JPMMAC, referred to collectively.

     SERVICER: Chase or any successor under this Agreement as herein provided.

                                       36

<PAGE>

     SERVICING ADVANCES: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in the performance by the Servicer of its servicing
obligations and which are "unanticipated expenses" (within the meaning of
Treasury regulations section 1.860G-1(b)(3)(ii)) including, but not limited to,
the cost of (i) the preservation, restoration and protection of the Mortgaged
Property (or Underlying Mortgaged Property, in the case of a Co-op Loan), (ii)
any enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of the Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) if the Mortgaged Property (or stock
allocated to a dwelling unit, in the case of a Co-op Loan) is acquired in
satisfaction of the Mortgage, (iv) taxes and assessments on the Mortgaged
Properties subject to the Mortgage Loans and (v) compliance with the obligations
under Section 5.21.

     SERVICING CRITERIA: The "servicing criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

     SERVICING FEE: The amount of the monthly fee paid for the servicing of the
Mortgage Loans, equal to, as of any Distribution Date, with respect to each
Mortgage Loan, one-twelfth of the Servicing Fee Rate of the Principal Balance
thereof as of the Determination Date in the preceding month, subject to
adjustment as provided in Section 6.05. The Servicing Fee shall be payable only
at the time of and with respect to those Mortgage Loans for which payment is in
fact made of the entire amount of the Monthly Payments that shall have come due
and only at the time such Monthly Payment shall be made. The right to receive
the Servicing Fee is limited to, and the Servicing Fee is payable solely from,
the interest portion of such Monthly Payments (or the interest portion of any
Principal Prepayment in full) collected by the Servicer, or as otherwise
provided under Section 5.09 or 5.23.

     SERVICING FEE RATE: 0.2660% per annum.

     SERVICING OFFICER: Any officer of the Servicer or any Sub-Servicer involved
in, or responsible for, the administration and servicing of the Mortgage Loans
whose name appears on a written certificate listing servicing officers furnished
to the Trustee by the Servicer on or prior to the Closing Date, and signed on
behalf of the Servicer or any Sub-Servicer by its President, any Vice President
or its Treasurer, as such certificate may from time to time be amended.

     SFAS 140: Statement of Financial Accounting Standard No. 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishment of
Liabilities dated September 2000, published by the Financial Accounting
Standards Board of the Financial Accounting Foundation.

     SIMILAR LAW: The meaning specified in Section 4.02(d).

     SINGLE CERTIFICATE: A Certificate of any Class that evidences the smallest
permissible original denomination for such Class of Certificates as specified in
Section 4.01(d).

     SPECIAL HAZARD AMOUNT: Initially, $10,879,465.21. As of the first
anniversary of the Cut-off Date, the Special Hazard Amount shall be reduced, but
not increased, to the lesser of (i) the initial Special Hazard Amount less the
sum of all amounts allocated to the Subordinated Certificates in respect of
Special Hazard Losses on the Mortgage Loans during such year or (ii) the
Adjustment Amount for such anniversary. As of each subsequent anniversary of the
Cut-off Date, the Special Hazard Amount shall be reduced, but not increased, to
the lesser of (i) the Special Hazard Amount on the immediately preceding
anniversary of the Cut-off Date less the sum of all amounts allocated to the
Subordinated Certificates in respect of Special Hazard Losses on the Mortgage
Loans during such year and (ii) the Adjustment Amount for such anniversary. The
"Adjustment Amount" with respect to each anniversary of the Cut-off Date will be
equal to 1.00% multiplied by the aggregate outstanding Principal Balance of the
Mortgage Loans.

                                       37

<PAGE>

     SPECIAL HAZARD LOSS: With respect to any Mortgage Loan, any Realized Loss
or portion thereof resulting from direct physical loss or damage to the related
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan), which is not insured against under the Standard Hazard Policy required to
be maintained hereunder.

     STANDARD HAZARD POLICY: Each standard hazard insurance policy or
replacement therefor referred to in Section 5.16.

     STARTUP DAY: The meaning specified in Section 2.04(a).

     SUBCONTRACTOR: Any vendor, subcontractor or other Person that is not
responsible for the overall servicing (as "servicing" is commonly understood by
participants in the mortgage-backed securities market) of Mortgage Loans but
performs one or more discrete functions identified in Item 1122(d) of Regulation
AB with respect to Mortgage Loans as determined by and under the direction or
authority of the Servicer or a Sub-Servicer.

     SUBORDINATED AMOUNT: Any of the Pool 1 Subordinated Amount, the Pool 2
Subordinated Amount, the Pool 3 Subordinated Amount or the Pool 4 Subordinated
Amount.

     SUBORDINATED CERTIFICATES: The Class M and Class B Certificates, referred
to collectively.

     SUBORDINATED OPTIMAL PRINCIPAL AMOUNT: With respect to any Distribution
Date, the lesser of (a) the aggregate Outstanding Certificate Principal Balance
of the Subordinated Certificates (before giving effect to any distributions of
principal on such Distribution Date) and (b) the sum of: (i) the applicable
Subordinated Percentage of the principal portion of all Monthly Payments,
whether or not received, which were due during the related Due Period on
Mortgage Loans in the related Pool which were outstanding during such Due
Period; (ii) the applicable Subordinated Prepayment Percentage of all Principal
Prepayments made on related Mortgage Loans during the related Principal
Prepayment Period; (iii) with respect to each Mortgage Loan not described in
(iv) below, the applicable Subordinated Percentage of the sum of the principal
portion of all Insurance Proceeds, condemnation awards and any other cash
proceeds from a source other than the applicable Mortgagor, to the extent
required to be deposited in the Collection Account pursuant to Section 5.08(iv)
and (v), which were received during the related Principal Prepayment Period, net
of related unreimbursed Servicing Advances and net of any portion thereof which,
as to any such Mortgage Loan, constitutes Late Collections that have been the
subject of an Advance on any prior Distribution Date; (iv) with respect to each
Mortgage Loan which has become a Liquidated Mortgage Loan during the related
Principal Prepayment Period, an amount equal to the portion (if any) of the Net
Liquidation Proceeds with respect to such Mortgage Loan (net of any unreimbursed
Advances) that was not included in the Class A Optimal Principal Amount with
respect to such Distribution Date; and (v) with respect to each Mortgage Loan
repurchased or purchased during the related Principal Prepayment Period pursuant
to Section 2.02, 3.01, 5.01, 5.21 or 11.01, an amount equal to the applicable
Subordinated Prepayment Percentage of the principal portion of the Purchase
Price (net of amounts with respect to which a distribution of principal has
previously been made to the Subordinated Certificateholders).

     SUBORDINATED PERCENTAGE: The Class 1-A Subordinated Percentage, the Class
2-A Subordinated Percentage, the Class 3-A Subordinated Percentage, or the Class
4-A Subordinated Percentage, as the case may be.

     SUBORDINATED PREPAYMENT PERCENTAGE: The Class 1-A Subordinated Prepayment
Percentage, the Class 2-A Subordinated Prepayment Percentage, the Class 3-A
Subordinated Prepayment Percentage or the Class 4-A Subordinated Prepayment
Percentage, as the case may be.

                                       38

<PAGE>

     SUB-SERVICER: Any Person that services Mortgage Loans on behalf of the
Servicer or any Sub-Servicer and is responsible for the performance (whether
directly or through Subservicers or Subcontractors) of a substantial portion of
the material servicing functions required to be performed by the Servicer under
this Agreement that are identified in Item 1122(d) of Regulation AB. Any
Sub-Servicer shall meet the qualifications set forth in Section 5.02.

     SUB-SERVICING AGREEMENT: Any agreement between the Servicer and any
Sub-Servicer, relating to servicing or administration of certain Mortgage Loans
as provided in Section 5.02, in such form as has been approved by the Servicer
and the Depositor.

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

     SUBSTITUTE EXCESS INTEREST: As defined in Section 3.03.

     TRUST: The Trust created pursuant to this Agreement.

     TRUST FUND: The corpus of the Trust consisting of (i) the Mortgage Loans,
(ii) such assets as shall from time to time be identified as deposited in the
Collection Account and the Certificate Account, (iii) property which secured a
Mortgage Loan and which has been acquired by foreclosure or deed in lieu of
foreclosure, (iv) Standard Hazard Policies and any other insurance policies, and
the proceeds thereof and (v) any proceeds of any of the foregoing.

     TRUSTEE: U.S. Bank National Association, a national banking association and
its successors and any corporation resulting from or surviving any consolidation
or merger to which it or its successors may be a party, and any successor
trustee at the time serving as successor trustee hereunder, appointed as herein
provided.

     UNCERTIFICATED PRINCIPAL BALANCE: With respect to any Lower-Tier REMIC
Regular Interest as of any Distribution Date, the initial principal amount of
such regular interest, reduced by (i) all amounts distributed on previous
Distribution Dates on such regular interest with respect to principal and (ii)
the principal portion of all Realized Losses allocated prior to such
Distribution Date to such regular interest, and increased with respect to
Subsequent Recoveries as provided in Section 2.04.

     UNDERCOLLATERALIZED POOL: As defined in Section 6.01(I)(b)(ix)(B).

     UPPER-TIER REMIC: The Upper-Tier REMIC as described in Section 2.04.

     UPPER-TIER REMIC REGULAR INTERESTS: Each of the Classes of Certificates
(other than the Class A-R Certificates).

     U.S. PERSON: A "United States Person" as defined in Section 7701(a)(30) of
the Code.

                               [END OF ARTICLE I]

                                   ARTICLE II

                    CONVEYANCE OF MORTGAGE LOANS; TRUST FUND

     Section 2.01 Conveyance of Mortgage Loans. The Depositor, concurrently with
the execution and delivery hereof, does hereby sell, transfer, assign, set over
and convey to the Trustee without recourse

                                       39

<PAGE>

all the right, title and interest of the Depositor in and to the Mortgage Loans,
including all interest and principal received on or with respect to the Mortgage
Loans on or after the Cut-off Date (other than Monthly Payments due on the
Mortgage Loans on or before the Cut-off Date).

     In connection with such assignment, the Depositor does hereby deliver to,
and deposit with, the Custodian on behalf of the Trustee the following documents
or instruments with respect to each Mortgage Loan so assigned:

(i) With respect to each Mortgage Loan which is not a Co-op Loan:

     (A) Original Mortgage Note bearing all intervening endorsements, endorsed
"Pay to the order of ______, without recourse" and signed in the name of the
last endorsee by an authorized officer.

     (B) The original Mortgage (including all riders thereto) with evidence of
recording thereon, or a copy thereof certified by the public recording office in
which such Mortgage has been recorded or, if the original Mortgage has not been
returned from the applicable public recording office, a true certified copy of
the original that was sent for recording, certified by the Relevant Seller.

(ii) With respect to each Non-MERS Mortgage Loan which is not a Co-op Loan:

     (A) The original Assignment of Mortgage to "U.S. Bank National Association,
as trustee (Chase Mortgage Finance Corporation)," which assignment shall be in
form and substance acceptable for recording, or a copy certified by the Relevant
Seller as a true and correct copy of the original Assignment of Mortgage which
has been sent for recordation. Subject to the foregoing, such assignments may,
if permitted by law, be by blanket assignments for Mortgage Loans covering
Mortgaged Properties situated within the same county. If the Assignment of
Mortgage is in blanket form, a copy of the Assignment of Mortgage shall be
included in the related individual Mortgage File.

     (B) The original policy of title insurance, or in the event such original
title policy is unavailable a copy of the related policy (provided that use of a
copy is acceptable to the related title insurance or escrow company), including
riders and endorsements thereto, or if the policy has not yet been issued, a
written commitment or interim binder or preliminary report of title issued by
the title insurance or escrow company.

     (C) Originals of all recorded intervening Assignments of Mortgage, or
copies thereof, certified by the public recording office in which such
Assignments or Mortgage have been recorded showing a complete chain of title
from the originator to the Depositor, with evidence of recording, thereon, or a
copy thereof certified by the public recording office in which such Assignment
of Mortgage has been recorded or, if the original Assignment of Mortgage has not
been returned from the applicable public recording office, a true certified
copy, certified by the Relevant Seller of the original Assignment of Mortgage
together with a certificate of the Relevant Seller certifying that the original
Assignment of Mortgage has been delivered for recording in the appropriate
public recording office of the jurisdiction in which the Mortgaged Property is
located.

     (D) Originals, or copies thereof certified by the public recording office
in which such documents have been recorded, of each assumption, extension,
modification, written assurance or substitution agreements, if applicable, or if
the original of such document has not been returned from the applicable public
recording office, a true certified copy, certified by the Relevant Seller, of
such original document together with certificate of Relevant Seller certifying
the original of such document has been delivered for recording in the
appropriate recording office of the jurisdiction in which the Mortgaged Property
is located.

                                       40
<PAGE>

     (E) If the Mortgage Note or Mortgage or any other material document or
instrument relating to the Mortgage Loan has been signed by a Person on behalf
of the Mortgagor, the original power of attorney or other instrument that
authorized and empowered such Person to sign bearing evidence that such
instrument has been recorded, if so required in the appropriate jurisdiction
where the Mortgaged Property is located (or, in lieu thereof, a duplicate or
conformed copy of such instrument, together with a certificate of receipt from
the recording office, certifying that such copy represents a true and complete
copy of the original and that such original has been or is currently submitted
to be recorded in the appropriate governmental recording office of the
jurisdiction where the Mortgaged Property is located), or if the original power
of attorney or other such instrument has been delivered for recording in the
appropriate public recording office of the jurisdiction in which the Mortgaged
Property is located, a copy of any applicable power of attorney.

(iii) With respect to each Co-op Loan:

     (A)  (I) The original Mortgage Note bearing all intervening endorsements,
          endorsed "Pay to the order of ________, without recourse" and signed
          in the name of the last endorsee by an authorized officer.

     (B)  The original Mortgage entered into by the Mortgagor with respect to
          such Co-Op Loan.

     (C)  The original Assignment of Mortgage to "U.S. Bank National Association
          as trustee (Chase Mortgage Finance Corporation)".

     (D)  Original Assignments of Mortgage showing a complete chain of
          assignment from the originator of the related Co-Op Loan to the
          Seller.

     (E)  Original Form UCC-1 and any continuation statements with evidence of
          filing thereon entered into by the Mortgagor with respect to such
          Co-Op Loan or if the original of such document has not been returned
          from the applicable public recording office, a true certified copy of
          the document sent for recording.

     (F)  Form UCC-3 (or copy thereof) by the applicable Mortgage Loan Seller or
          its agent assigning the security interest covered by such Form UCC-1
          to "U.S. Bank National Association as trustee" or to blank, together
          with all Forms UCC-3 (or copies thereof) showing a complete chain of
          assignment from the originator of the related Co-op Loan to the
          Seller, with evidence of recording thereon.

     (G)  Stock certificate representing the stock allocated to the related
          dwelling unit in the related residential cooperative housing
          corporation and pledged by the related Mortgagor to the originator of
          such Co-op Loan with a stock power in blank attached.

     (H)  Original proprietary lease.

     (I)  Original assignment of proprietary lease, to the Trustee or to blank,
          and all intervening assignments thereof.

     (J)  Original recognition agreement of the interests of the mortgagee with
          respect to the Co-op Loan by the residential cooperative housing
          corporation, the stock of which was pledged by the related Mortgagor
          to the originator of such Co-op Loan.

     (K)  Originals of any assumption, consolidation or modification agreements
          relating to any of the items specified in (A) through (F) above with
          respect to such Co-op Loan.

                                       41

<PAGE>

     If in connection with any Mortgage Loan which is not a Co-op Loan the
Depositor cannot deliver the Mortgage, Assignments of Mortgage, or assumption,
consolidation or modification agreement, as the case may be, with evidence of
recording thereon concurrently with the execution and delivery of this Agreement
solely because of a delay caused by the public recording office where such
Mortgage, Assignments of Mortgage, or assumption, consolidation or modification
agreement, as the case may be, has been delivered for recordation, the Depositor
shall deliver or cause to be delivered to the Trustee written notice stating
that such Mortgage, Assignments of Mortgage, or assumption, consolidation or
modification agreement, as the case may be, has been delivered to the
appropriate public recording office for recordation. Thereafter, the Depositor
shall deliver or cause to be delivered to the Trustee such Mortgage, Assignments
of Mortgage, or assumption, consolidation or modification agreement, as the case
may be, with evidence of recording indicated thereon upon receipt thereof from
the public recording office.

     With respect to any Non-MERS Mortgage Loans which are not Co-op Loans, and
as to which the related Mortgaged Property is located in Florida, the Servicer
shall cause to be recorded in the appropriate public recording office for real
property records each Assignment of Mortgage referred to in this Section 2.01 as
soon as practicable. With respect to any Non-MERS Mortgage Loans which are not
Co-op Loans as to which the related Mortgaged Property is located outside of
Florida, the Servicer shall not be obligated to cause to be recorded the
Assignment of Mortgage referred to in this Section 2.01. With respect to Co-op
Loans as to which the related dwelling unit is located in Florida, the Servicer
shall cause to be filed in the appropriate filing office the Form UCC-3 referred
to in this Section 2.01 as soon as practicable. With respect to any Co-op Loans
as to which the related dwelling unit is located outside Florida, the Servicer
shall not be obligated to cause to be filed the Form UCC-3 referred to in this
Section 2.01. While each such Assignment of Mortgage or Form UCC-3 is being
recorded or filed, as applicable, the Servicer shall deliver to the Trustee a
photocopy of such document. If any such Assignment of Mortgage or Form UCC-3 is
returned unrecorded or unfiled to the Servicer because of any defect therein,
the Servicer shall cause such defect to be cured and such document to be
recorded or filed in accordance with this paragraph. The Depositor shall deliver
or cause to be delivered each such original recorded or filed Assignment of
Mortgage and intermediate assignment or Form UCC-3 to the Trustee within 270
days of the Closing Date or shall deliver to the Trustee on or before such date
an Officer's Certificate stating that such document has been delivered to the
appropriate public recording or filing office for recording or filing, but has
not been returned solely because of a delay caused by such recording or filing
office. In any event, the Depositor shall use all reasonable efforts to cause
each such document with evidence of recording or filing thereon to be delivered
to the Trustee within 300 days of the Closing Date.

     With respect to each MERS Mortgage Loan, the Trustee, at the expense of the
Depositor and at the direction and with the cooperation of the Servicer, shall
cause to be taken such actions as are necessary to cause the Trustee to be
clearly identified as the owner of each such Mortgage Loan on the records of
MERS for purposes of the system of recording transfers of beneficial ownership
of mortgages maintained by MERS.

     The ownership of each Mortgage Note, the Mortgage and the contents of the
related Mortgage File is vested in the Trustee. Neither the Depositor nor the
Servicer shall take any action inconsistent with such ownership and shall not
claim any ownership interest therein. The Depositor and the Servicer shall
respond to any third party inquiries with respect to ownership of the Mortgage
Loans by stating that such ownership is held by the Trustee on behalf of the
Certificateholders. Mortgage documents relating to the Mortgage Loans not
delivered to the Trustee are and shall be held in trust by the Servicer or any
Sub-Servicer, for the benefit of the Trustee as the owner thereof, and the
Servicer's or such Sub-Servicer's possession of the contents of each Mortgage
File so retained is for the sole purpose of servicing the related Mortgage Loan,
and such retention and possession by the Servicer or such Sub-Servicer is in a
custodial capacity only. The Depositor agrees to take no action inconsistent
with the Trustee's ownership

                                       42

<PAGE>

of the Mortgage Loans, to promptly indicate to all inquiring parties that the
Mortgage Loans have been sold and to claim no ownership interest in the Mortgage
Loans. Each Mortgage File and the mortgage documents relating to the Mortgage
Loans contain proprietary business information of the Servicer and its
customers. The Trustee and the Depositor agree that they will not use such
information for business purposes without the express written consent of the
Servicer and that all such information shall be kept strictly confidential.

     It is the intention of this Agreement that the conveyance of the
Depositor's right, title and interest in and to the Trust Fund pursuant to this
Agreement shall constitute a purchase and sale and not a loan. If a conveyance
of Mortgage Loans from any Seller to the Depositor is characterized as a pledge
and not a sale, then the Depositor shall be deemed to have transferred to the
Trustee all of the Depositor's right, title and interest in, to and under the
obligations of such Seller deemed to be secured by said pledge; and it is the
intention of this Agreement that the Depositor shall also be deemed to have
granted to the Trustee a first priority security interest in all of the
Depositor's right, title, and interest in, to and under the obligations of such
Seller to the Depositor deemed to be secured by said pledge and that the Trustee
shall be deemed to be an independent custodian for purposes of perfection of the
security interest granted to the Depositor. If the conveyance of the Mortgage
Loans from the Depositor to the Trustee is characterized as a pledge, it is the
intention of this Agreement that this Agreement shall constitute a security
agreement under applicable law, and that the Depositor shall be deemed to have
granted to the Trustee a first priority security interest in all of the
Depositor's right, title and interest in, to and under the Mortgage Loans, all
payments of principal of or interest on such Mortgage Loans, all other rights
relating to and payments made in respect of the Trust Fund, and all proceeds of
any thereof. If the trust created by this Agreement terminates prior to the
satisfaction of the claims of any Person in any Certificates, the security
interest created hereby shall continue in full force and effect and the Trustee
shall be deemed to be the collateral agent for the benefit of such Person.

     In addition to the conveyance made in the first paragraph of this Section
2.01, the Depositor does hereby convey, assign and set over to the Trustee all
of its right, title and interest in that portion of the Trust Fund described in
items (ii), (iii), (iv) and (v) of the definition thereof and further assigns to
the Trustee for the benefit of the Certificateholders those representations and
warranties of the Sellers contained in the Sale Agreements and described in
Section 3.01 hereof and the benefit of the repurchase obligations of the Sellers
described in Sections 2.02 and 3.01 hereof and the obligations of the Sellers
contained in the Sale Agreements to take, at the request of the Depositor or the
Trustee, all action on its part which is reasonably necessary to ensure the
enforceability of a Mortgage Loan.

     The parties hereto agree and understand that it is not intended that any
mortgage loan be included in the Trust that is any of (i) a "High-Cost Home
Loan" as defined in the New Jersey Home Ownership Act effective November 27,
2003, (ii) a "High-Cost Home Loan" as defined in the New Mexico Home Loan
Protection Act effective January 1, 2004, (iii) a "High-Cost Home Mortgage Loan"
as defined in the Massachusetts Predatory Home Loan Practices Act effective
November 7, 2004 or (iv) a "High-Cost Home Loan" as defined by the Indiana High
Cost Home Loan Law effective January 1, 2005.

     Section 2.02 Acceptance by Trustee. Except as set forth in the Exception
Report delivered contemporaneously herewith (the "Exception Report"), the
Trustee acknowledges receipt by the Custodian on the Trustee's behalf of the
Mortgage Note for each Mortgage Loan and delivery of a Mortgage File (but does
not acknowledge receipt of all documents required to be included in such
Mortgage File) with respect to each Mortgage Loan and declares that the
Custodian holds and will hold on the Trustee's behalf such documents and any
other documents constituting a part of the Mortgage Files delivered to it in
trust for the use and benefit of all present and future Certificateholders. The
Depositor will cause the Relevant Seller to repurchase any Mortgage Loans to
which an exception was taken in the

                                       43

<PAGE>

Exception Report unless such exception is cured to the satisfaction of the
Trustee within 45 Business Days of the Closing Date. The Trustee may accept
delivery of such Mortgage Files by the Custodian on its behalf. The Custodian
will deliver a copy of the Exception Report to the Depositor and the Trustee

     The Custodian, on the Trustee's behalf, agrees, for the benefit of
Certificateholders, to review each Mortgage File delivered to it within 270 days
after the Closing Date to ascertain that all documents required by Section 2.01
have been executed and received, and that such documents relate to the Mortgage
Loans identified in Exhibit A that have been conveyed to it. If the Custodian on
the Trustee's behalf finds any document or documents constituting a part of a
Mortgage File to be missing or defective (that is, mutilated, damaged, defaced
or unexecuted) in any material respect, the Custodian on the Trustee's behalf
shall promptly (and in any event within no more than five Business Days) after
such finding so notify the Servicer, the Relevant Seller, the Trustee and the
Depositor. In addition, the Custodian on the Trustee's behalf shall also notify
the Servicer, the Relevant Seller, the Trustee and the Depositor, if (a) in
examining the Mortgage Files, the documentation shows on its face (i) any
adverse claim, lien or encumbrance, (ii) that any Mortgage Note was overdue or
had been dishonored, (iii) any evidence on the face of any Mortgage Note or
Mortgage of any security interest or other right or interest therein, or (iv)
any defense against or claim to the Mortgage Note by any party or (b) the
original Mortgage with evidence of recording thereon with respect to a Mortgage
Loan is not received within 270 days of the Closing Date; provided, however,
that if the Depositor cannot deliver the original Mortgage with evidence of
recording thereon because of a delay caused by the public recording office where
such Mortgage has been delivered for recordation, the Depositor shall deliver or
cause to be delivered to the Custodian and the Trustee written notice stating
that such Mortgage has been delivered to the appropriate public recording
officer for recordation and thereafter the Depositor shall deliver or cause to
be delivered such Mortgage with evidence of recording thereon upon receipt
thereof from the public recording office. The Depositor shall request that the
Relevant Seller correct or cure such omission, defect or other irregularity, or
substitute a Mortgage Loan pursuant to the provisions of Section 3.03, within 60
days from the date the Relevant Seller was notified of such omission or defect
and, if the Relevant Seller does not correct or cure such omission or defect
within such period, that the Relevant Seller purchase such Mortgage Loan from
the Trustee within 90 days from the date the Depositor notified the Relevant
Seller and the Trustee of such omission, defect or other irregularity at the
Purchase Price of such Mortgage Loan. The Purchase Price for any Mortgage Loan
purchased pursuant to this Section 2.02 shall be paid to the Servicer and
deposited by the Servicer in the Collection Account promptly upon receipt, and,
upon receipt by the Trustee of written notification of such deposit signed by a
Servicing Officer, the Trustee shall promptly release to the Relevant Seller the
related Mortgage File and the Trustee shall execute and deliver such instruments
of transfer or assignment, without recourse, as shall be necessary to vest in
the Relevant Seller or its designee, as the case may be, any Mortgage Loan
released pursuant hereto, and the Trustee shall have no further responsibility
with regard to such Mortgage Loan. It is understood and agreed that the
obligation of the Relevant Seller to purchase, cure or substitute any Mortgage
Loan as to which a material defect in or omission of a constituent document
exists shall constitute the sole remedy respecting such defect or omission
available to the Trustee on behalf of Certificateholders. The Trustee shall be
under no duty or obligation to inspect, review and examine such documents,
instruments, certificates or other papers to determine that they are genuine,
enforceable or appropriate to the represented purpose, or that they have
actually been recorded, or that they are other than what they purport to be on
their face. The Trustee shall keep confidential the name of each Mortgagor and
shall not solicit any such Mortgagor for the purpose of refinancing the related
Mortgage Loan.

     Within 280 days of the Closing Date, the Trustee based solely on
information provided to it by the Custodian shall deliver to the Depositor and
the Servicer the Trustee's Certification, substantially in the form of Exhibit G
attached hereto, setting forth the status of the Mortgage Files as of such date.

                                       44

<PAGE>

     Section 2.03 Trust Fund; Authentication of Certificates. The Trustee
acknowledges and accepts the assignment to it of the Trust Fund created pursuant
to this Agreement in trust for the use and benefit of all present and future
Certificateholders. The Trustee acknowledges the assignment to it for the
benefit of the Trust Fund of the Mortgage Loans and has caused to be
authenticated and delivered to or upon the order of the Depositor, in exchange
for the Mortgage Loans, Certificates duly authenticated by the Trustee or, if an
Authenticating Agent has been appointed pursuant to Section 4.06, the
Authenticating Agent in authorized denominations evidencing ownership of the
entire Trust Fund.

     Section 2.04 REMIC Elections.

     (a) The Depositor hereby instructs and authorizes the Paying Agent to make
appropriate elections to treat the Trust Fund as comprising three REMICs (the
Lower-Tier REMIC, the Middle-Tier REMIC and the Upper-Tier REMIC). This
Agreement shall be construed so as to carry out the intention of the parties
that each REMIC created hereunder be treated as a REMIC at all times prior to
the date on which the Trust Fund is terminated. The Closing Date is hereby
designated as the "startup day" of each REMIC created hereunder within the
meaning of Section 860G(a)(9) of the Code. The Lower-Tier REMIC shall hold as
assets all property of the Trust Fund other than the Lower-Tier REMIC Interests
and the Middle-Tier REMIC Interests. Each of the Lower-Tier REMIC Regular
Interests is hereby designated a "regular interest" (within the meaning of
Section 860G(a)(1) of the Code) in the Lower-Tier REMIC. The Middle-Tier REMIC
shall hold as assets the several classes of uncertificated Lower-Tier REMIC
Regular Interests. Each of the Middle-Tier REMIC Regular Interests is hereby
designated a "regular interest" (within the meaning of Section 860G(a)(1) of the
Code) in the Middle-Tier REMIC. The Upper-Tier REMIC shall hold as assets the
several classes of uncertificated Middle-Tier REMIC Regular Interests. Each of
the Upper-Tier REMIC Regular Interests is hereby designated as a "regular
interest" (within the meaning of Section 860G(a)(1) of the Code) in the
Upper-Tier REMIC. The Class LT-R Interest is hereby designated as the sole
residual interest (within the meaning of Section 860G(a)(2) of the Code) in the
Lower-Tier REMIC. The Class MT-R Interest is hereby designated as the sole
residual interest (within the meaning of Section 860G(a)(2) of the Code) in the
Middle-Tier REMIC. The Residual Interest is hereby designated as the sole
residual interest (within the meaning of Section 860G(a)(2) of the Code) in the
Upper-Tier REMIC. The Class A-R Certificate evidences ownership of the Class
LT-R Interest, the Class MT-R Interest and the Residual Interest. All interests
described in this Section 2.04(a) shall be designated as such on the Startup
Day.

                                       45

<PAGE>

LOWER-TIER REMIC

     The following table specifies the class designation, pass-through rate and
principal amount for each class of Lower-Tier REMIC Interest.

Lower-Tier REMIC
    Interest       Initial Principal Amount   Pass-Through Rate   Related Pool
----------------   ------------------------   -----------------   ------------
LT-R                         (1)                      (1)              N/A
LT1-A                        (2)                Pool 1 Net WAC       Pool 1
LT1-B                        (3)                Pool 1 Net WAC       Pool 1
LT2-A                        (4)                Pool 2 Net WAC       Pool 2
LT2-B                        (3)                Pool 2 Net WAC       Pool 2
LT3-A                        (5)                Pool 3 Net WAC       Pool 3
LT3-B                        (3)                Pool 3 Net WAC       Pool 3
LT4-A                        (6)                Pool 4 Net WAC       Pool 4
LT4-B                        (3)                Pool 4 Net WAC       Pool 4

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

(2)  The initial principal amount of the Class LT1-A Interest shall equal 1% of
     the Pool 1 Subordinated Amount as of the first Distribution Date.

(3)  The initial principal amount of each Lower-Tier REMIC Interest ending with
     the designation "B" shall equal the excess of (i) the aggregate Scheduled
     Principal Balance of the Mortgage Loans in the related Pool as of the first
     Distribution Date over (ii) the initial principal amount of the Lower-Tier
     REMIC Interest ending with the designation "A" that is related to the same
     Pool.

(4)  The initial principal amount of the Class LT2-A Interest shall equal 1% of
     the Pool 2 Subordinated Amount as of the first Distribution Date.

(5)  The initial principal amount of the Class LT3-A Interest shall equal 1% of
     the Pool 3 Subordinated Amount as of the first Distribution Date.

(6)  The initial principal amount of the Class LT4-A Interest shall equal 1% of
     the Pool 4 Subordinated Amount as of the first Distribution Date.

     Distributions shall be deemed to be made to the Lower-Tier REMIC Regular
Interests first, so as to keep the Uncertificated Principal Balance of each
Lower-Tier REMIC Regular Interest ending with the designation "A" equal to 1% of
the excess of (x) the aggregate Principal Balance of the Mortgage Loans in the
related Pool over (y) the aggregate class principal amounts of the Certificate
Pool related to such Pool (except that if 1% of any such excess is greater than
the principal amount of the corresponding Lower-Tier REMIC Regular Interest
ending with the designation "A", the least amount of principal shall be
distributed to such Lower-Tier REMIC Regular Interests such that the Lower-Tier
REMIC Subordinated Balance Ratio is maintained); and second, any remaining
principal to the Lower-Tier REMIC Regular Interests ending with the designation
"B" in such a manner that the remaining principal balance of each such
Lower-Tier REMIC Regular Interest equals the excess of the aggregate Principal
Balance of the Mortgage Loans in the related Pool over the Uncertificated
Principal Balance of the Lower-Tier REMIC Regular Interest ending with the
designation "A" which is related to such Pool.

     Realized Losses shall be applied after all distributions have been made on
each Distribution Date first, so as to keep the Uncertificated Principal Balance
of each Lower-Tier REMIC Regular Interest ending with the designation "A" equal
to 1% of the excess of (x) the aggregate Principal Balance of the

                                       46

<PAGE>

Mortgage Loans in the related Pool over (y) the aggregate class principal
amounts of the Certificate Pool related to such Pool (except that if 1% of any
such excess is greater than the principal amount of the corresponding Lower-Tier
REMIC Regular Interest ending with the designation "A", the least amount of
Realized Losses shall be allocated to such Lower-Tier REMIC Regular Interests
such that the Lower-Tier REMIC Subordinated Balance Ratio is maintained); and
second, the remaining Realized Losses shall be allocated to the Lower-Tier REMIC
Regular Interests ending with the designation "B" in such a manner that the
remaining principal balance of each such Lower-Tier REMIC Regular Interest
equals the excess of the aggregate Principal Balance of the Mortgage Loans in
the related Pool over the Uncertificated Principal Balance of the Lower-Tier
REMIC Regular Interest ending with the designation "A" which is related to such
Pool. All computations with respect to the Lower-Tier REMIC Interests shall be
taken out to eight decimal places.

     If on any Distribution Date there is an increase in the principal amount of
any Class of Certificates related to Subsequent Recoveries, then, prior to
distributions of principal and allocations of losses on such Distribution Date
with respect to the Lower-Tier REMIC, there shall be a corresponding increase in
the Uncertificated Principal Balance of the Lower-Tier REMIC Regular Interests,
with such increase allocated among the Lower-Tier REMIC Regular Interests first,
to each Lower-Tier REMIC Regular Interest ending with the designation "A", so
that the Uncertificated Principal Balance of each such Lower-Tier REMIC Regular
Interest continues to equal the same percentage of the excess of (x) the
Principal Balance of the Mortgage Loans in the related Pool over (y) the
aggregate class principal amounts of the Certificate Pool related to such Pool
and so that the Lower-Tier REMIC Subordinated Balance Ratio is maintained; and
second, any remaining increase allocated to the Lower-Tier REMIC Regular
Interests ending with the designation "B" in such a manner that the principal
balance of each such Lower-Tier REMIC Regular Interest equals the excess of the
aggregate Principal Balance of the Mortgage Loans in the related Pool over the
Uncertificated Principal Balance of the Lower-Tier REMIC Regular Interest ending
with the designation "A" which is related to such Pool.

                                       47

<PAGE>

MIDDLE TIER REMIC

     The following table specifies the class designation, interest rate, initial
principal amount and Classes of corresponding certificates for each class of
Middle-Tier REMIC Interest:

Middle-Tier REMIC                      Pass-Through         Corresponding
     Interest       Initial Balance        Rate             Certificates
-----------------   ---------------   --------------   ----------------------
MT-R                      (1)              (1)                            N/A
MT1-A1                    (2)         Pool 1 Net WAC               Class 1-A1
MT1-A2                    (2)         Pool 1 Net WAC               Class 1-A2
MT1-A3                    (2)         Pool 1 Net WAC   Class 1-A3, Class 1-AX
MT1-A4                    (2)         Pool 1 Net WAC               Class 1-A4
MTA-R                     (2)         Pool 1 Net WAC                Class A-R
MT2-A1                    (2)         Pool 2 Net WAC               Class 2-A1
MT2-A2                    (2)         Pool 2 Net WAC               Class 2-A2
MT2-A3                    (2)         Pool 2 Net WAC   Class 2-A3, Class 2-AX
MT2-A4                    (2)         Pool 2 Net WAC               Class 2-A4
MT3-A1                    (2)         Pool 3 Net WAC               Class 3-A1
MT3-A2                    (2)         Pool 3 Net WAC               Class 3-A2
MT4-A1                    (2)         Pool 4 Net WAC               Class 4-A1
MT4-A2                    (2)         Pool 4 Net WAC               Class 4-A2
MTM                       (2)              (3)                        Class M
MTB-1                     (2)              (3)                      Class B-1
MTB-2                     (2)              (3)                      Class B-2
MTB-3                     (2)              (3)                      Class B-3
MTB-4                     (2)              (3)                      Class B-4
MTB-5                     (2)              (3)                      Class B-5

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

(2)  The initial principal amount of each of these interests shall be equal to
     the Original Certificate Principal Balance the Class of corresponding
     Certificates (disregarding the notional amount of any class of
     "interest-only" certificates).

(3)  For any Distribution Date, the interest rate for the Class MTM Interest,
     Class MTB-1 Interest, Class MTB-2 Interest, Class MTB-3 Interest, Class
     MTB-4 Interest and Class MTB-5 Interest shall be a per annum rate equal to
     the weighted average of the interest rates on the Class LT1-A Interest, the
     Class LT2-A Interest, the Class LT3-A Interest, and the Class LT4-A
     Interest, weighted on the basis of their principal amounts immediately
     prior to such Distribution Date.

Principal and interest shall be payable to, and shortfalls, losses, prepayments
and increases in principal amount related to Subsequent Recoveries are allocable
to, the Middle-Tier REMIC Regular Interests as such amounts are payable and
allocable to the corresponding certificates under this Agreement (excluding
Section 6.01(I)(a)(v) hereof).

                                       48

<PAGE>

     (b) Solely for the purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
Regulations, the "latest possible maturity date" of each "regular interest" in
each REMIC created hereunder is the Distribution Date immediately following the
latest scheduled maturity of any Mortgage Loan.

     (c) The "tax matters person" with respect to each REMIC created hereunder
for purposes of the REMIC Provisions shall be the beneficial owner of the Class
A-R Certificate having the largest Percentage Interest of such Class; provided,
however, that such largest beneficial owner and, to the extent relevant, each
other Holder of a Class A-R Certificate, by its acceptance thereof, irrevocably
appoints the Servicer as its agent and attorney-in-fact to act as "tax matters
person" with respect to each REMIC created hereunder for purposes of the REMIC
provisions.

     (d) It is intended that each REMIC created hereunder shall constitute, and
that the affairs of the Trust Fund shall be conducted so as to qualify each
REMIC created hereunder as, a "real estate mortgage investment conduit" as
defined in and in accordance with the REMIC Provisions. In furtherance of such
intention, the Servicer covenants and agrees that it shall act as agent (and the
Servicer is hereby appointed to act as agent) on behalf of the Trust Fund, each
REMIC created hereunder and the Holder of the Class A-R Certificate and that in
such capacity it shall:

          (i) prepare and file, or cause to be prepared and filed, in a timely
     manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Return
     (Form 1066) for each REMIC created hereunder and prepare and file or cause
     to be prepared and filed with the Internal Revenue Service and applicable
     state or local tax authorities income tax or information returns for each
     taxable year with respect to each REMIC created hereunder, using the
     calendar year as the taxable year and the accrual method of accounting,
     containing such information and at the times and in the manner as may be
     required by the Code or state or local tax laws, regulations, or rules, and
     shall furnish or cause to be furnished to Certificateholders the schedules,
     statements or information at such times and in such manner as may be
     required thereby;

          (ii) within thirty days of the Closing Date, shall furnish or cause to
     be furnished to the Internal Revenue Service, on Form 8811 or as otherwise
     may be required by the Code, the name, title, address, and telephone number
     of the person that the Holders of the Certificates may contact for tax
     information relating thereto (and the Servicer shall act as the
     representative of the Trust Fund for this purpose), together with such
     additional information as may be required by such Form, and shall update
     such information at the time or times in the manner required by the Code;

          (iii) make or cause to be made an election, on behalf of each REMIC
     created hereunder, to be treated as a REMIC, and make the appropriate
     designations, if applicable, in accordance with this Section 2.04 on the
     federal tax return of each REMIC hereunder for its first taxable year (and,
     if necessary, under applicable state law);

          (iv) prepare and forward, or cause to be prepared and forwarded, to
     the Certificateholders and to the Internal Revenue Service and, if
     necessary, state tax authorities, all information returns or reports, or
     furnish or cause to be furnished by telephone, mail, publication or other
     appropriate method such information, as and when required to be provided to
     them in accordance with the REMIC Provisions, including without limitation,
     the calculation of any original issue discount;

          (v) provide information necessary for the computation of tax imposed
     on the transfer of the Class A-R Certificate to a Disqualified
     Organization, or an agent (including a broker,

                                       49

<PAGE>

     nominee or other middleman) of a Disqualified Organization, or a
     pass-through entity in which a Disqualified Organization is the record
     holder of an interest (the reasonable cost of computing and furnishing such
     information may be charged to the Person liable for such tax);

          (vi) ensure that federal, state or local income tax or information
     returns shall be signed by the Trustee or such other Person as may be
     required to sign such returns by the Code or state or local laws,
     regulations or rules; and

          (vii) maintain such records relating to each REMIC created hereunder
     as may be required by the Code and as may be necessary to prepare the
     foregoing returns, schedules, statements or information.

     (e) Pursuant to Section 6.02(b), the Servicer, with the consent of the
Trustee, hereby appoints the Institution Trust Services Department of Chase to
perform the duties enumerated in (d) above.

     Section 2.05 Permitted Activities of Trust. The Trust is created for the
object and purpose of engaging in the Permitted Activities.

     Section 2.06 Qualifying Special Purpose Entity. For purposes of SFAS 140,
the parties hereto intend that the Trust shall be treated as a "qualifying
special purpose entity" as such term is used in SFAS 140 and any successor rule
thereto and its power and authority as stated in Section 2.05 of this Agreement
shall be limited in accordance with paragraph 35 thereof.

                               [END OF ARTICLE II]

                                  ARTICLE III

               REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AND
                   THE SERVICER; REPURCHASE OF MORTGAGE LOANS

     Section 3.01 Representations and Warranties of the Depositor with respect
to the Mortgage Loans.

     The Depositor hereby represents and warrants to the Trustee for the benefit
of the Certificateholders that on or before the Closing Date it has entered into
the Sale Agreements with the Sellers, that the Sellers have made the following
representations and warranties with respect to each Mortgage Loan in the
Relevant Sale Agreement as of the Closing Date, which representations and
warranties run to and are for the benefit of the Depositor and the Trustee for
the benefit of the Certificateholders, and as to which the Depositor has
assigned to the Trustee for the benefit of the Certificateholders, pursuant to
Section 2.01 hereof, the right to cause the Relevant Seller to repurchase a
Mortgage Loan as to which there has occurred an uncured breach of
representations and warranties in accordance with the provisions of the Relevant
Sale Agreement.

     (a) The information set forth in the Mortgage Loan Schedule is complete,
true and correct in all material respects;

     (b) With respect to a Mortgage Loan which is not a Co-op Loan, the Mortgage
creates a first lien or a first priority ownership interest in an estate in fee
simple in real property securing the related Mortgage Note. With respect to a
Co-op Loan, the related Mortgage is a valid, enforceable and subsisting first
security interest on the related cooperative shares securing the related
Mortgage Note, subject only to (a) liens of the related residential cooperative
housing corporation for unpaid assessments representing the

                                       50

<PAGE>

Mortgagor's pro rata share of the related residential cooperative housing
corporation's payments for its blanket mortgage, current and future real
property taxes, insurance premiums, maintenance fees and other assessments to
which like collateral is commonly subject and (b) other matters to which like
collateral is commonly subject which do not materially interfere with the
benefits of the security intended to be provided by the related security
agreement. There are no liens against or security interest in the cooperative
shares relating to each Co-op Loan (except for unpaid maintenance, assessments
and other amounts owed to the related cooperative which individually or in the
aggregate will not have a material adverse effect on such Co-op Loan), which
have priority over the Trustee's security interest in such cooperative shares;

     (c) All payments due prior to the Cut-off Date for such Mortgage Loan have
been made as of the Closing Date, the Mortgage Loan is not delinquent in payment
more than 30 days and has not been dishonored; to the best of the Relevant
Seller's knowledge, there are no material defaults under the terms of the
Mortgage Loan; the Relevant Seller has not advanced funds, or induced, solicited
or knowingly received any advance of funds from a party other than the owner of
the Mortgaged Property subject to the Mortgage (or, with respect to a Co-op
Loan, the related Mortgagor), directly or indirectly, for the payment of any
amount required by the Mortgage Loan; there has been no more than one
delinquency in excess of 30 days during the preceding twelve-month period;

     (d) To the best of the Relevant Seller's knowledge, all taxes, governmental
assessments, insurance premiums, water, sewer and municipal charges, leasehold
payments or ground rents which previously became due and owing have been paid,
or escrow funds have been established in an amount sufficient to pay for every
such escrowed item which remains unpaid and which has been assessed but is not
yet due and payable;

     (e) The terms of the Mortgage Note and the Mortgage have not been impaired,
waived, altered or modified in any respect, except by written instruments. No
Mortgagor has been released, in whole or in part, from the terms thereof except
in connection with an assumption agreement and which assumption agreement is
part of the Mortgage File and the terms of which are reflected in the Mortgage
Loan Schedule;

     (f) The Mortgage Note and the Mortgage are not subject to any right of
rescission, set-off, counterclaim or defense, including, without limitation, the
defense of usury, nor will the operation of any of the terms of the Mortgage
Note or Mortgage, or the exercise of any right thereunder, render the Mortgage
Note or Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto, and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan was
originated;

     (g) With respect to a Mortgage Loan which is not a Co-op Loan, all
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer acceptable under the FNMA Guides against loss by fire,
hazards of extended coverage and such other hazards as are provided for in the
FNMA Guides or by FHLMC. All such standard hazard policies are in full force and
effect and on the date of origination contained a standard mortgagee clause
naming the Relevant Seller and its successors in interest and assigns as loss
payee and such clause is still in effect and all premiums due thereon have been
paid. If required by the Flood Disaster Protection Act of 1973, as amended, the
Mortgaged Property is covered by a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
which policy conforms to FNMA and FHLMC requirements. The Mortgage obligates the
Mortgagor thereunder to maintain all such insurance at the Mortgagor's cost and
expense, and on the Mortgagor's failure to do so, authorizes the holder of the

                                       51

<PAGE>

Mortgage to maintain such insurance at the Mortgagor's cost and expense and to
seek reimbursement therefor from the Mortgagor;

     (h) Any and all requirements of any federal, state or local laws and all
applicable predatory and abusive lending laws, including, without limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity or disclosure laws applicable to the
Mortgage Loan have been complied with in all material respects;

     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole
or in part, or rescinded, and the Mortgaged Property has not been released from
the lien of the Mortgage, in whole or in part nor has any instrument been
executed that would effect any such release, cancellation, subordination or
rescission;

     (j) With respect to a Mortgage Loan which is not a Co-op Loan, the Mortgage
is a valid, subsisting, enforceable and perfected first lien on the Mortgaged
Property, including, all buildings on the Mortgaged Property. The Mortgage and
the Mortgage Note do not contain any evidence of any security interest or other
interest or right thereto. Such lien is free and clear of all adverse claims,
liens and encumbrances having priority over the first lien of the Mortgage
subject only to (1) the lien of non-delinquent current real property taxes and
assessments not yet due and payable, (2) covenants, conditions and restrictions,
rights of way, easements and other matters of the public record as of the date
of recording which are acceptable to mortgage lending institutions generally and
either (A) which are referred to or otherwise considered in the appraisal made
for the originator of the Mortgage Loan, or (B) which do not adversely affect
the Appraised Value of the Mortgaged Property as set forth in such appraisal,
and (3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates a valid, subsisting, enforceable and perfected first
lien and first priority security interest on the property described therein, and
the Depositor has the full right to sell and assign the same to the Trustee for
the benefit of the Certificateholders;

     (k) The Mortgage Note and the related Mortgage are original and genuine and
each is the legal, valid and binding obligation of the maker thereof,
enforceable in all respects in accordance with its terms subject to bankruptcy,
insolvency and other laws of general application affecting the rights of
creditors and the Depositor has taken all action necessary to transfer such
rights of enforceability to the Trustee for the benefit of the
Certificateholders. All parties to the Mortgage Note and the Mortgage had the
legal capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage Note and the Mortgage. The Mortgage Note and the Mortgage have been
duly and property executed by such parties. The proceeds of the Mortgage Loan
have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor have
been complied with;

     (l) The Relevant Seller is the sole owner and holder of the Mortgage Loan
and the indebtedness evidenced by the Mortgage Note, except for the Assignments
of Mortgage which have been sent for recording, and upon recordation the
Relevant Seller will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Trust for the benefit of the Certificateholders, the Relevant Seller will retain
the Mortgage File or any part thereof with respect thereto not delivered to the
Trust for the benefit of the Certificateholders or its designee in trust only
for the purpose of servicing and supervising the servicing of the Mortgage Loan.
Immediately prior to the transfer and assignment to the Trust for the benefit of
the Certificateholders, the Mortgage Loan, including the Mortgage Note and the
Mortgage, were not subject to an assignment or

                                       52

<PAGE>

pledge, and the Depositor had good and marketable title to and was the sole
owner thereof and had full right to transfer and sell the Mortgage Loan to the
Trustee for the benefit of the Certificateholders free and clear of any
encumbrance, equity, lien, pledge, charge, claim or security interest and has
the full right and authority subject to no interest or participation of, or
agreement with, any other party, to sell and assign the Mortgage Loan pursuant
to this Agreement and following the sale of the Mortgage Loan, the Trustee for
the benefit of the Certificateholders will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim
or security interest;

     (m) With respect to a Mortgage Loan which is not a Co-op Loan, the Mortgage
Loan is covered by an ALTA lender's title insurance policy or other generally
acceptable form of policy or insurance acceptable to FNMA or FHLMC, issued by a
title insurer acceptable to FNMA or FHLMC and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the
exceptions contained in (j) (1), (2) and (3) above) the Relevant Seller, its
successors and assigns, as to the first priority lien of the Mortgage in the
original principal amount of the Mortgage Loan. Such lender's title insurance
policy insures ingress and egress by or upon the Mortgaged Property or any
interest therein. Where required by state law or regulation, the Mortgagor has
been given the opportunity to choose the carrier of the required mortgage title
insurance. The Relevant Seller, its successors and assigns, are the sole
insureds of such lender's title insurance policy, and such lender's title
insurance policy is in full force and effect and will be in full force and
effect upon the consummation of the transactions contemplated by this Agreement.
No claims have been made under such lender's title insurance policy, and no
prior holder of the related Mortgage, including the Relevant Seller, has done,
by act or omission, anything which would impair the coverage of such lender's
title insurance policy;

     (n) There is no default, breach, violation or event of acceleration
existent, under the Mortgage or the related Mortgage Note and no event which,
with the passage of time or with notice and the expiration of any grace or cure
period, would constitute a default, breach, violation or event permitting
acceleration; and neither the Relevant Seller nor any prior mortgagee has waived
any default, breach, violation or event permitting acceleration;

     (o) There are no mechanics', or similar liens or claims which have been
filed for work, labor or material (and no rights are outstanding that under law
could give rise to such liens) affecting the related Mortgaged Property (or the
related residential dwelling unit in the Underlying Mortgage Property, in the
case of a Co-op Loan) which are or may be liens prior to or equal to the lien of
the related Mortgage;

     (p) With respect to a Mortgage Loan which is not a Co-op Loan, all
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances; the Mortgaged Property is lawfully occupied under
applicable law;

     (q) The Mortgage Loan complies in all material respects with all the terms,
conditions and requirements of the Relevant Seller's underwriting standards in
effect at the time of origination of such Mortgage Loan. The Mortgage Notes and
Mortgages (exclusive of any riders) are on forms generally acceptable to FNMA or
FHLMC. Monthly Payments under the Mortgage Note are due and payable on the first
day of each month. The Mortgage contains the usual and enforceable provisions of
the originator at the time of origination for the acceleration of the payment of
the unpaid principal amount of the Mortgage Loan if the related Mortgaged
Property is sold without the prior consent of the mortgagee thereunder;

                                       53

<PAGE>

     (r) The Mortgaged Property (or Underlying Mortgaged Property, in the case
of a Co-op Loan), is not subject to any material damage by waste, fire,
earthquake, windstorm, flood or other casualty. To the best of the Relevant
Seller's knowledge, at origination of the Mortgage Loan there was, and there
currently is, no proceeding pending for the total or partial condemnation of the
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan);

     (s) The related Mortgage contains customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (l) in the case of a Mortgage designated as a deed
of trust, by trustee's sale, and (2) otherwise by judicial foreclosure. There is
no homestead or other exemption available to the Mortgagor which would interfere
with the right to sell the Mortgaged Property at a trustee's sale or the right
to foreclose the Mortgage subject to applicable federal and state laws and
judicial precedent with respect to bankruptcy and right of redemption or similar
law;

     (t) If the Mortgage constitutes a deed of trust, a trustee, authorized and
duly qualified if required under applicable law to act as such, has been
properly designated and currently so serves and is named in the Mortgage, and no
fees or expenses, except as may be required by local law, are or will become
payable by the Purchaser to the trustee under the deed of trust, except in
connection with a trustee's sale or attempted sale after default by the
Mortgagor;

     (u) The Mortgage File contains an appraisal or a recertification document
(in the case of a Mortgage Loan originated under CHF's Streamlined Refinance
Program) of the related Mortgaged Property (or the related residential dwelling
unit in the Underlying Mortgaged Property, in the case of a Co-op Loan), signed
prior to the final approval of the mortgage loan application by an appraiser
approved by the Relevant Seller who had no interest, direct or indirect, in the
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan), or in any loan made on the security thereof, and whose compensation is
not affected by the approval or disapproval of the Mortgage Loan. The appraisal
is in a form acceptable to FNMA or FHLMC;

     (v) All parties which have had any interest in the Mortgage, whether as
mortgagee, assignee, pledgee or otherwise, are (or, during the period in which
they held and disposed of such interest, were) (A) in substantial compliance
with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property (or Underlying Mortgaged Property, in the case of
a Co-op Loan), is located, and (B) (1) organized under the laws of such state,
or (2) qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such state;

     (w) The related Mortgage Note is not and has not been secured by any
collateral except the lien of the corresponding Mortgage and the security
interest of any applicable security interest of any applicable agreement or
chattel mortgage referred to above and such collateral does not serve as
security for any other obligation;

     (x) The Mortgagor has received all disclosure materials required by
applicable law with respect to the making of such mortgage loans;

     (y) The Mortgage Loan does not contain "graduated payment" features;

     (z) The Mortgagor is not in bankruptcy and, to the best of the Relevant
Seller's knowledge, the Mortgagor is not insolvent;

                                       54

<PAGE>

     (aa) The Mortgage Loans are adjustable rate mortgage loans. Each Mortgage
Loan has an original term to maturity of not more than thirty (30) years with
interest payable in arrears on the first day of each month. No Mortgage Loan
contains terms or provisions which would result in negative amortization;

     (bb) Each Mortgage Note, each Mortgage, each Assignment of Mortgage and any
other documents required pursuant to this Agreement to be delivered to the
Trustee on behalf of the Certificateholders or its designee, or its assignee for
each Mortgage Loan, have been, on or before the Closing Date, delivered to the
Trustee on behalf of the Certificateholders or its designee, or its assignee;

     (cc) All escrow payments have been collected in full compliance with state
and federal law and the provisions of the related Mortgage Note and Mortgage. As
to any Mortgage Loan that is the subject of an escrow, escrow of funds is not
prohibited by applicable law and has been established in an amount sufficient to
pay for every escrowed item that remains unpaid and has been assessed but is not
yet due and payable. No escrow deposits or other charges or payments due under
the Mortgage Note have been capitalized under any Mortgage or the related
Mortgage Note. Any interest required to be paid pursuant to state, federal and
local law has been properly paid and credited;

     (dd) [Reserved];

     (ee) In the event that at origination the Mortgage Loan has a Loan-to-Value
Ratio greater than 80%, the excess of the principal balance of the Mortgage Loan
over 75% of the Appraised Value of the Mortgaged Property, with respect to a
refinanced Mortgage Loan, or the lesser of the Appraised Value or the purchase
price of the Mortgaged Property (or Underlying Mortgaged Property, in the case
of a Co-op Loan), with respect to a purchase money Mortgage Loan, is and will be
insured as to payment defaults by a Primary Insurance Policy issued by a
Qualified Insurer, except where the primary mortgage insurance was (i)
impermissible at origination at applicable law, in which case such Mortgage Loan
was originated in accordance with applicable law, (ii) cancelled at the request
of the Mortgagor pursuant to the cancellation requirements of FNMA, FHLMC, state
law or, as applicable the Home Owner and Equity Protection Act of 1994, as
amended, or (iii) automatically terminated in accordance with the termination
requirements of FNMA, FHLMC, state law or, as applicable the Home Owner and
Equity Protection Act of 1994, as amended. All provisions of such Primary
Insurance Policy have been and are being complied with, such policy is in full
force and effect, and all premiums due thereunder have been paid. No action,
inaction, or event has occurred and no state of facts exists that has, or will
result in the exclusion from, denial of, or defense to coverage. Any Mortgage
Loan subject to a Primary Insurance Policy obligates the Mortgagor thereunder to
maintain the Primary Insurance Policy and to pay all premiums and charges in
connection therewith. The Mortgage Rate for the Mortgage Loan as set forth on
the Mortgage Loan Schedule is net of any such insurance premium;

     (ff) The Assignment of Mortgage is in recordable form and is acceptable for
recording (or, in the case of a Co-op Loan, is in a form acceptable for filing)
under the laws of the jurisdiction in which the Mortgaged Property (or
underlying Mortgaged Property, in the case of a Co-op Loan) is located;

     (gg) As to Mortgage Loans that are not secured by an interest in a
leasehold estate, the Mortgaged Property (or Underlying Mortgaged Property, in
the case of a Co-op Loan), is located in the state identified in the Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a two-to four-family dwelling, or an
individual condominium unit in a condominium project, or a dwelling unit in a
residential cooperative housing corporation or an individual unit in an attached
planned unit development or a detached planned unit development, provided,
however, that no residence or dwelling is a single parcel of real property with
a mobile home thereon. As of the date of origination, no portion of the
Mortgaged Property (or Underlying

                                       55

<PAGE>

Mortgaged Property, in the case of a Co-op Loan), was used for commercial
purposes, and since the date of origination, to the best of the Relevant
Seller's knowledge, no portion of the Mortgaged Property (or Underlying
Mortgaged Property, in the case of a Co-op Loan), is used for commercial
purposes;

     (hh) If the Mortgaged Property is a condominium unit or a planned unit
development (other than a de minimis planned unit development), as of the date
of origination of the related Mortgage Loan, such condominium or planned unit
development project met the the Relevant Seller's eligibility requirements, as
set forth in the Relevant Seller's underwriting guidelines as of such date; in
the case of each Co-op Loan, the related residential cooperative housing
corporation complied in all material respects with the Seller's requirements as
set forth in the the Relevant Seller's underwriting guidelines as of such date;

     (ii) To the best of the Relevant Seller's knowledge, there is no pending
action or proceeding directly involving the Mortgaged Property (or Underlying
Mortgaged Property, in the case of a Co-op Loan), in which compliance with any
environmental law, rule or regulation is an issue;

     (jj) As of the Cut-off Date, the Relevant Seller has not granted any
interest rate relief to the Mortgagor under the Relief Act;

     (kk) No Mortgage Loan was made in connection with the construction or
rehabilitation of a Mortgaged Property (or Underlying Mortgaged Property, in the
case of a Co-op Loan), or facilitating the trade-in or exchange of a Mortgaged
Property (or Underlying Mortgaged Property, in the case of a Co-op Loan);

     (ll) No action has been taken or failed to be taken by Depositor, on or
prior to the Closing Date, which has resulted or will result in an exclusion
from, denial of, or defense to coverage under any Primary Insurance Policy
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of the Depositor, or
for any other reason under such coverage;

     (mm) The Mortgage Loan was originated by a mortgagee approved by the
Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of
the National Housing Act, as amended, a savings and loan association, a savings
bank, a commercial bank, credit union, insurance company or similar institution
which is supervised and examined by a federal or state authority;

     (nn) Principal payments on the Mortgage Loan commenced no more than sixty
(60) days after funds were disbursed in connection with the Mortgage Loan. The
Mortgage Note is payable on the first day of each month in equal monthly
installments of principal and interest, with interest calculated and payable in
arrears, sufficient to amortize the Mortgage Loan fully by the stated maturity
date, over an original term of not more than thirty years from commencement of
amortization;

     (oo) As of the Closing Date, the Mortgage Loan is a "qualified mortgage"
within the meaning of Section 860G(a)(3) of the Code (without regard to Treasury
Regulations Section 1.860G-2(f) or any similar rule that provides that a
defective obligation is a qualified mortgage for a temporary period);

     (pp) With respect to a Mortgage Loan that is a Co-op Loan, the stock that
is pledged as security for the Mortgage Loan is held by a Person as a
tenant-stockholder (as defined in Section 216 of the Code) in a cooperative
housing corporation (as defined in Section 216 of the Code);

                                       56

<PAGE>

     (qq) As of the Closing Date, the Mortgage Loan is not the subject of
pending or final foreclosure proceedings and the Relevant Seller would not,
based on the delinquency status of the Mortgage Loan, institute foreclosure
proceedings with respect to the Mortgage Loan prior to the next scheduled
payment for the Mortgage Loan;

     (rr) As of the Closing Date, the Mortgage Loan does not provide for
interest other than at either (i) a single fixed rate in effect throughout the
term of the Mortgage Loan or (ii) a "variable rate" (within the meaning of
Treasury Regulation Section 1.860G-1(a)(3)) in effect throughout the term of the
Mortgage Loan;

     (ss) No Mortgage Loan is a "covered loan" within the meaning of the Georgia
Fair Lending Act of 2002, as amended;

     (tt) None of the Mortgage Loans are (a) covered by the Home Ownership and
Equity Protection Act of 1994 or (b) classified as a "high cost" loan or
similarly classified using different terminology under any federal, state or
local law imposing heightened regulatory scrutiny or additional legal liability
for residential mortgage loans having high interest rates, points and/or fees
such as predatory lending laws; None of the Mortgage Loans are "high cost" loans
as defined by the applicable federal, state or local predatory and abusive
lending laws nor is any Mortgage Loan a "High Cost Loan" or "Covered Loan," as
applicable (as such terms are defined in the current Standard & Poor's LEVELS(R)
Glossary which is now version 5.6 revised, appendix E) and no Mortgage Loan
originated on or after October 1, 2002 through March 6, 2003 is governed by the
Georgia Fair Lending Act of 2002, as amended; and

     (uu) As to each Mortgage Loan that is secured by an interest in a leasehold
estate, (i) the use of a leasehold estate for residential properties is an
accepted practice in the area where the related Mortgaged Property is located,
(ii) residential property consisting of leasehold estates is marketable in the
area where the related Mortgaged Property is located, (iii) the related lease
has been recorded in the applicable land records, (iv) the lease is valid and in
good standing and is not subject to any prior lien by which the lease could be
terminated or subject to any charge or penalty, and (v) the remaining term of
the lease does not terminate less than five years after the maturity date of
such Mortgage Loan.

     Upon discovery by any of the Depositor, the Servicer or the Trustee of a
breach of any of the foregoing representations and warranties which materially
and adversely affects the value of a Mortgage Loan or the interest of the
Certificateholders (or which materially and adversely affects the interests of
the Certificateholders in the related Mortgage Loan in the case of a
representation and warranty relating to a particular Mortgage Loan), the party
discovering such breach shall give prompt written notice to the other parties
and to the Relevant Seller, which notice shall specify the date of discovery.
Pursuant to the Relevant Sale Agreement, the Relevant Seller shall within 90
days from the earlier of (i) the date of receipt of notice of such breach or
(ii) the date the Relevant Seller otherwise discovers such breach, cure such
breach, substitute a Mortgage Loan pursuant to the provisions of Section 3.03
or, if the breach relates to a particular Mortgage Loan, purchase such Mortgage
Loan from the Trustee at the Purchase Price. The Purchase Price for the
purchased Mortgage Loan shall be paid to the Servicer and shall be deposited by
the Servicer in the Collection Account promptly upon receipt, and, upon receipt
by the Trustee of written notification of such deposit signed by a Servicing
Officer, the Trustee shall promptly release to the Relevant Seller the related
Mortgage File, and the Trustee shall execute and deliver such instruments of
transfer or assignment as may be provided to it by the Servicer, without
recourse, as shall be necessary to vest in the Relevant Seller or its designee,
as the case may be, any Mortgage Loan released pursuant hereto, and the Trustee
shall have no further responsibility with regard to such Mortgage Loan. It is
understood and agreed that the obligation of the Relevant Seller to cure,
substitute

                                       57

<PAGE>

or purchase any Mortgage Loan as to which such a breach has occurred shall
constitute the sole remedy respecting such breach available to
Certificateholders or the Trustee on behalf of Certificateholder.

     Section 3.02 Representations and Warranties of the Servicer. The Servicer
represents and warrants to, and covenants with, the Trustee for the benefit of
the Certificateholders that as of the Closing Date:

     (a) The Servicer is a limited liability company duly chartered and validly
existing in good standing under the laws of the State of Delaware, and the
Servicer is duly qualified or registered as a foreign corporation in good
standing in each jurisdiction in which the ownership or lease or its properties
or the conduct of its business requires such qualification;

     (b) The execution and delivery of this Agreement by the Servicer and its
performance and compliance with the terms of this Agreement will not violate the
Servicer's certificate of formation or by-laws or constitute a default (or an
event which, with notice or lapse of time, or both, would constitute a default)
under, or result in the breach of, any material contract, agreement or other
instrument to which the Servicer is a party or which may be applicable to the
Servicer or any of its assets;

     (c) This Agreement, assuming due authorization, execution and delivery by
the Trustee and the Depositor, constitutes a valid, legal and binding obligation
of the Servicer, enforceable against it in accordance with the terms hereof
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
other laws affecting the enforcement of creditors' rights generally and to
general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law;

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

     (e) No litigation is pending or, to the best of the Servicer's knowledge,
threatened against the Servicer which would prohibit its entering into this
Agreement or performing its obligations under this Agreement. It is understood
and agreed that the representations and warranties set forth in this Section
3.02 shall survive the issuance and delivery of the Certificates and shall be
continuing as long as any Certificate shall be outstanding or this Agreement has
been terminated.

     Section 3.03 Option to Substitute. If either of the Sellers is required to
repurchase any Mortgage Loan pursuant to Section 2.02 or 3.01, that Seller may,
at its option, within two years from the Closing Date, remove such defective
Mortgage Loan from the terms of this Agreement and substitute another mortgage
loan for such defective Mortgage Loan, in lieu of repurchasing such defective
Mortgage Loan. Any substitute Mortgage Loan shall (a) have a Principal Balance
at the time of substitution not in excess of the Principal Balance of the
removed Mortgage Loan (the amount of any difference, plus one month's interest
thereon at the Mortgage Rate borne by the removed Mortgage Loan, being paid by
the Relevant Seller and deemed to be a Principal Prepayment to be deposited by
the Servicer in the Collection Account), (b) have a Mortgage Rate not less than,
and not more than one percentage point greater than, the Mortgage Rate of the
removed Mortgage Loan (provided, however, that if the Mortgage Rate on the
substitute Mortgage Loan exceeds the Mortgage Rate on the removed Mortgage Loan,
the amount of that excess interest (the "Substitute Excess Interest") shall be
payable to the Class A-R Certificate), (c) have a remaining term to stated
maturity not later than, and not more than one year less than, the remaining
term to stated maturity of the removed Mortgage Loan, (d) be, in the reasonable
determination of the Servicer,

                                       58

<PAGE>

of the same type, quality and character (including location of the Mortgaged
Property (or underlying Mortgaged Property, in the case of a Co-op Loan)) as the
removed Mortgage Loan as if the breach had not occurred, (e) have a
Loan-to-Value Ratio at origination no greater than that of the removed Mortgage
Loan and (f) be, in the reasonable determination of the Relevant Seller, in
material compliance with the representations and warranties contained in the
Sale Agreement and described in Section 3.01, as of the date of substitution.

     The Relevant Seller shall amend the Mortgage Loan Schedule to reflect the
withdrawal of the removed Mortgage Loan from this Agreement and the substitution
of such substitute Mortgage Loan therefor and shall send a copy of such amended
Mortgage Loan Schedule to the Servicer and the Trustee. The Sale Agreements
provide that upon such amendment the Relevant Seller shall be deemed to have
made as to such substitute Mortgage Loan the representations and warranties set
forth in Section 3.01 as of the date of such substitution, which shall be
continuing as long as any Certificate shall be outstanding or this Agreement has
not been terminated, and the remedies for breach of any such representation or
warranty shall be as set forth in Section 3.01. Upon such amendment, the
Custodian on behalf of the Trustee shall review the Mortgage File delivered to
it relating to the substitute Mortgage Loan, within the time and in the manner
and with the remedies specified in Section 2.02, except that for purposes of
this Section 3.03 (other than the two-year period specified in the first
sentence of this Section), such time shall be measured from the date of the
applicable substitution. In the event of such a substitution, accrued interest
on the substitute Mortgage Loan for the month in which the substitution occurs
and any Principal Prepayments made thereon during such month shall be the
property of the Trust Fund, and accrued interest for such month on the Mortgage
Loan for which the substitution is made and any Principal Prepayments made
thereon during such month shall be the property of the Relevant Seller. The
principal payment on a substitute Mortgage Loan due on the Due Date in the month
of substitution shall be the property of the Seller, and the principal payment
on the Mortgage Loan for which the substitution is made due on such date shall
be the property of the Trust Fund.

                              [END OF ARTICLE III]

                                   ARTICLE IV

                                THE CERTIFICATES

     Section 4.01 The Certificates.

     (a) The Class A, Class M and Class B Certificates shall be substantially in
the forms thereof included within Exhibits C, D, E and F and shall, on original
issue, be executed by the Depositor and authenticated by the Trustee (or, if an
Authenticating Agent has been appointed pursuant to Section 4.06, the
Authenticating Agent) upon receipt by the Trustee of the documents specified in
Section 2.01, delivered to or upon the order of the Depositor.

     (b) The Depository and the Trustee have entered into a Depository Agreement
dated as of August 22, 2006 (the "Depository Agreement"). Except as provided in
paragraph (c) below, the Book-Entry Certificates shall at all times remain
registered in the name of the Depository or its nominee and at all times: (i)
registration of the Book-Entry Certificates may not be transferred as provided
in Section 4.02 except to a successor to the Depository; (ii) ownership and
transfers of registration of the Book-Entry Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iii) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (iv) the Paying Agent and the Trustee
shall deal with the Depository, Depository Participants and Indirect
Participants as representatives of the Certificate Owners of the Book-

                                       59

<PAGE>

Entry Certificates for purposes of exercising the rights of such Holders under
this Agreement, and requests and directions for and votes of such
representatives shall not be deemed to be inconsistent if they are made with
respect to different Certificate Owners; and (v) the Paying Agent and the
Trustee may rely and shall be fully protected in relying upon information
furnished by the Depository with respect to its Depository Participants and
furnished by the Depository Participants with respect to Indirect Participants
and persons shown on the books of such Indirect Participants as direct or
indirect Certificate Owners. The Depository Agreement provides that the
Depository shall maintain book-entry records with respect to the Certificate
Owners and with respect to ownership and transfers of such Certificates.

     All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificate Owners. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificate Owners it
represents or of brokerage firms for which it acts as agent in accordance with
the Depository's normal procedures.

     (c) If (i)(A) the Depository advises the Depositor, the Paying Agent or the
Trustee in writing that the Depository is no longer willing or able to properly
discharge its responsibilities as Depository and (B) the Trustee, the Paying
Agent or the Depositor are unable after exercise of their reasonable best
efforts to locate a qualified successor or (ii) the Depositor at its option
advises the Trustee in writing that it elects to terminate the book-entry system
through the Depository, the Trustee or, if a Paying Agent has been appointed
under Section 4.05, the Paying Agent, shall notify all Certificate Owners,
through the Depository, of the occurrence of any such event and of the
availability of definitive, fully registered Certificates (the "Definitive
Certificates") to Certificate Owners requesting the same. Upon surrender to the
Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying
Agent, of the Book-Entry Certificates by the Depository for registration and
receipt by the Trustee or, if a Paying Agent has been appointed under Section
4.05, the Paying Agent, of an adequate supply of certificates from the
Depositor, the Trustee or if the Paying Agent is appointed under Section 4.05,
the Paying Agent shall issue the Definitive Certificates based on information
received from the Depository. Neither the Depositor, the Servicer, the Paying
Agent nor the Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions.

     (d) The Certificates (other than the Class A-R Certificate) shall be
issuable in the minimum original dollar denominations (and integral multiples of
$1,000.00 in excess of such amount) and aggregate original dollar denominations
per Class (or in the case of the Class 1-AX and 2-AX Certificates, in the
minimum denominations based upon the Class 1-AX Notional Amount and the Class
2-AX Notional Amount, respectively) as set forth in the following table (except
that, if necessary, in order to aggregate the Original Certificate Principal
Balance of a Class, one Certificate of such Class will be issued in a different
denomination). A single Class A-R Certificate will be issued in definitive form
in a $100 denomination.

<TABLE>
<CAPTION>
                                     Aggregate Original Certificate
                        Minimum        Principal Balance of all
                        Original           Certificates of the           CUSIP
Class                 Denomination           Indicated Class             Number
-------------------   ------------   ------------------------------   -----------
<S>                    <C>                    <C>                     <C>
Class 1-A1.........    $100,000.00            $134,619,000            16163CA  A0
Class 1-A2.........    $100,000.00            $ 18,360,000            16163CA  B8
Class 1-A3.........    $100,000.00            $ 60,114,000            16163CA  C6
Class 1-A4.........    $100,000.00            $  8,763,900            16163CA  D4
Class 1-AX(1)......    $100,000.00                     N/A            16163CA  E2
Class 2-A1.........    $100,000.00            $324,171,000            16163CA  F9
</TABLE>

                                       60

<PAGE>

<TABLE>
<CAPTION>
                                     Aggregate Original Certificate
                         Minimum        Principal Balance of all
                        Original           Certificates of the           CUSIP
Class                 Denomination           Indicated Class             Number
-------------------   ------------   ------------------------------   -----------
<S>                    <C>                    <C>                     <C>
Class 2-A2.........    $100,000.00            $ 76,877,000            16163CA  G7
Class 2-A3 ........    $100,000.00            $157,438,000            16163CA  H5
Class 2-A4.........    $100,000.00            $ 22,968,000            16163CA  J1
Class 2-AX(1)......    $100,000.00                     N/A            16163CA  K8
Class 3-A1.........    $100,000.00            $ 49,241,000            16163CA  L6
Class 3-A2.........    $100,000.00            $  2,026,000            16163CA  M4
Class 4-A1.........    $100,000.00            $187,051,000            16163CA  N2
Class 4-A2.........    $100,000.00            $  7,693,000            16163CA  P7
Class A-R(2).......    $    100.00            $        100            16163CA  Q5
Class M............    $100,000.00            $ 16,865,000            16163CA  R3
Class B-1..........    $100,000.00            $  8,159,000            16163CA  S1
Class B-2..........    $100,000.00            $  4,895,000            16163CA  T9
Class B-3..........    $100,000.00            $  3,263,000            16163CA  U6
Class B-4..........    $100,000.00            $  2,719,000            16163CA  V4
Class B-5..........    $100,000.00            $  2,723,521            16163CA  W2
</TABLE>

----------
(1)  The Class 1-AX and Class 2-AX Certificates are interest-only certificates,
     have no principal balance and will bear interest on their notional amounts.
     The initial notional amounts of the Class 1-AX and Class 2-AX Certificates
     are $60,114,000 and $157,438,000, respectively.

(2)  The Class A-R Certificate represents the residual interest in each of the
     REMIC Pools.

     The Certificates shall be signed by manual or facsimile signature on behalf
of the Depositor by an officer of the Depositor. Certificates bearing the manual
or facsimile signatures of individuals who were at the time of signature
officers of the Depositor shall bind the Depositor, notwithstanding that such
individuals or any of them have ceased to be an officer prior to the
authentication and delivery of such Certificate or did not hold such offices at
the date of such Certificates. No Certificate shall be entitled to any benefit
under this Agreement, or be valid for any purpose, unless there appears on such
Certificate a manual authentication by an officer of the Trustee (or if an
Authenticating Agent has been appointed pursuant to Section 4.06, the
Authenticating Agent) and such authentication upon any Certificate shall be
conclusive evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication.

     Section 4.02 Registration of Transfer and Exchange of Certificates.

     (a) The Trustee or, if a Paying Agent has been appointed under Section
4.05, the Paying Agent, shall cause to be kept a certificate register (the
"Certificate Register") in which, subject to such reasonable regulations as it
may prescribe, the Trustee or, if a Paying Agent has been appointed under
Section 4.05, the Paying Agent, shall provide for the registration of
Certificates and of transfers and exchanges of Certificates as herein provided.

     (b) Upon surrender for registration of transfer of any Certificate at any
office or agency of the Trustee, or if a Paying Agent has been appointed
hereunder pursuant to Section 4.05, the Paying Agent maintained for such
purpose, the Depositor shall execute and the Trustee or if an Authenticating
Agent is appointed under Section 4.06, the Authenticating Agent shall
authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like Class and aggregate Percentage Interest and
dated the date of authentication by the Authenticating Agent.

                                       61

<PAGE>

     (c) No transfer of a Class B-3, Class B-4 or Class B-5 Certificate shall be
made unless such transfer is made pursuant to an effective registration
statement or otherwise in accordance with the requirements under the Securities
Act. If such a transfer is to be made in reliance upon an exemption from said
Act, (i) the Depositor may require (except with respect to the initial transfer
of a Class B-3, Class B-4 or Class B-5 Certificate from J.P. Morgan Securities
Inc. and except if the transferee executes a certificate substantially in the
form of Exhibit H hereto) a written opinion of independent counsel acceptable to
and in form and substance reasonably satisfactory to the Depositor and the
Trustee that such transfer may be made pursuant to an exemption, describing the
applicable exemption and the basis therefor, from said Act and laws or is being
made pursuant to said Act and laws, which opinion of counsel shall not be an
expense of the Trust Fund, the Trustee, the Depositor or the Servicer, and (ii)
the Depositor shall require the transferee to execute a certification
substantially in the form of Exhibit H or Exhibit I.

     (d) (i) No transfer of an ERISA Restricted Certificate or a Class A-R
Certificate shall be made unless the prospective transferee provides the
Depositor and the Trustee with (I) a representation as set forth in Exhibit K
for Class A-R Certificates or in Exhibit M for ERISA Restricted Certificates to
the effect that such transferee is not an employee benefit plan subject to Title
I of ERISA, a plan subject to Section 4975 of the Code or a plan or arrangement
subject to any provisions under any federal, state, local, non-U.S. or other
laws or regulations that are substantively similar to the foregoing provisions
of ERISA or the Code ("Similar Law") (collectively, a "Plan"), and is not
directly or indirectly acquiring the Certificate for, on behalf of or with any
assets of any such Plan, or (II) solely in the case of an ERISA Restricted
Certificate, (A) if the Certificate has been the subject of an ERISA-Qualifying
Underwriting, a representation as set forth in Exhibit M that such transferee is
an insurance company that is acquiring the ERISA-Restricted Certificate with
assets contained in an "insurance company general account," as defined in
Section V(E) of Prohibited Transaction Class Exemption ("PTCE") 95-60, and the
acquisition and holding of the Certificate are covered and exempt under Sections
I and III of PTCE 95-60, or (B) solely in the case of a Definitive Certificate,
an Opinion of Counsel reasonably satisfactory to the Depositor and the Trustee
to the effect that the acquisition and holding of such Certificate will not
constitute or result in a nonexempt prohibited transaction under ERISA or the
Code, or a violation of Similar Law, and will not subject the Depositor, the
Servicer or the Trustee to any obligation in addition to those expressly
undertaken in this Agreement, which Opinion of Counsel shall not be an expense
of the Depositor, the Servicer or the Trustee.

          (ii) Except in the case of a Definitive Certificate, the
representations set forth in paragraph (i) of this Subsection 4.02(d), other
than subparagraph (i)(II)(B), shall be deemed to have been made to the Depositor
and the Trustee by the transferee's acceptance of an ERISA Restricted
Certificate or a Class A-R Certificate (or the acceptance by a Certificate Owner
of the beneficial interest in any Class of ERISA Restricted Certificates or a
Class A-R Certificate). Notwithstanding any other provision herein to the
contrary, any purported transfer of an ERISA Restricted Certificate or a Class
A-R Certificate to or on behalf of a Plan without the delivery to the Depositor
of a representation or an Opinion of Counsel reasonably satisfactory to the
Depositor and the Trustee as described above shall be void and of no effect.
None of the Depositor, the Servicer or the Trustee shall be under any liability
to any Person for any registration or transfer of any ERISA Restricted
Certificate or Class A-R Certificate that is in fact not permitted by this
Section 4.02(d) nor shall the Paying Agent be under any liability for making any
payments due on such Certificate to the Holder thereof or taking any other
action with respect to such Holder under the provisions of this Agreement so
long as the transfer was registered in accordance with the foregoing
requirements. The Depositor, Servicer, Paying Agent and/or Trustee shall be
entitled, but not obligated, to recover from any Holder of any ERISA Restricted
Certificate or Class A-R Certificate that was in fact a Plan and that held such
Certificate in violation of this Section 4.02(d) all payments made on such ERISA
Restricted Certificate or Class A-R Certificate at and after the time it
commenced such

                                       62

<PAGE>

holding. Any such payments so recovered shall be paid and delivered to the last
preceding Holder of such Certificate that is not a Plan.

     (e) At the option of a Certificateholder, a Certificate may be exchanged
for another Certificate or Certificates of authorized denominations of a like
Class, upon surrender of the Certificate to be exchanged at any office or agency
of the Trustee, or if a Paying Agent has been appointed under Section 4.05, the
Paying Agent, maintained for such purpose. Whenever the Certificate is so
surrendered for exchange, the Depositor shall execute and the Authenticating
Agent shall authenticate and deliver, the Certificate which the
Certificateholder making the exchange is entitled to receive. Every Certificate
presented or surrendered for transfer or exchange shall (if so required by the
Authenticating Agent) be duly endorsed by, or be accompanied by a written
instrument of transfer in the form satisfactory to the Authenticating Agent duly
executed by, the Holder thereof or his attorney duly authorized in writing.

     (f) No service charge shall be made to the Holder for any transfer or
exchange of a Certificate, but the Servicer may require payment by the
Certificateholders of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of such
Certificate.

     (g) All Certificates surrendered for transfer or exchange shall be
destroyed by the Trustee or if a Paying Agent has been appointed under Section
4.05, the Paying Agent, in accordance with the Trustee's or, if a Paying Agent
has been appointed under Section 4.05, the Paying Agent's, standard procedures.

     (h) [Reserved].

     (i) A Disqualified Organization is prohibited from acquiring beneficial
ownership of a Class A-R Certificate. Notwithstanding anything to the contrary
contained herein, (i) unless and until the Servicer and the Trustee shall have
received an Opinion of Counsel, satisfactory to it in form and substance, to the
effect that the absence of the conditions contained in this Section 4.02(i)
would not result in the imposition of federal tax upon any REMIC created
hereunder or cause any REMIC created hereunder to fail to qualify as a REMIC, no
transfer, sale or other disposition of the Class A-R Certificate (including for
purposes of this section any beneficial interest therein) may be made without
the express written consent of the Certificate Registrar or, if no Certificate
Registrar is appointed, the Trustee, which consent is to be granted by the
Certificate Registrar or, if no Certificate Registrar is appointed, the Trustee
only upon compliance with the requirements of this Section and (ii) no transfer,
sale or other disposition of the Class A-R Certificate (or any beneficial
interest therein) may be made to a Person who is not a U.S. Person unless such
Person furnishes the transferor, the Certificate Registrar and the Trustee, with
a duly completed and effective Form W-8ECI (or any successor thereto) or an
Opinion of Counsel to the effect that such transfer is in accordance with the
requirements of the Code and that the transfer will not be disregarded for
federal income tax purposes. As a condition to granting its consent to a
transfer of a Class A-R Certificate, the Certificate Registrar or, if no
Certificate Registrar is appointed, the Trustee, shall require the proposed
transferee of such Certificate (including, in the case of the initial issuance
of the Class A-R Certificate, the initial Holder thereof) to execute a letter
and affidavit substantially in the form attached hereto as Exhibit K and shall
require the proposed transferor (other than in the case of the transfer to the
initial Holder) of such Certificate to execute a letter substantially in the
form attached hereto as Exhibit K-1. In the absence of a contrary instruction
from the transferor of such Certificate, declaration (11) in the affidavit in
Exhibit K may be left blank. If the transferor requests by written notice to the
Certificate Registrar or, if no Certificate Registrar is appointed, the Trustee,
prior to the date of the proposed transfer that one of the two other forms of
declaration (11) of such affidavit be used, then the Certificate Registrar or,
if no Certificate Registrar is appointed, the Trustee, shall require that such
form of declaration (11) be included in such affidavit.

                                       63

<PAGE>

     As a condition to the granting of the consent referred to in this Section
4.02(i), prior to the transfer, sale, pledge, hypothecation or other disposition
of the Class A-R Certificate or any interest therein, the Certificate Registrar
or, if no Certificate Registrar is appointed, the Trustee shall require that (1)
the proposed transferee deliver to the Trustee or Certificate Registrar, as
applicable, its taxpayer identification number and state, under penalties of
perjury that such number is the social security or employer identification
number, as the case may be, of the transferee or provide an affidavit under
penalties of perjury stating that as of the date of such transfer such
transferee is not and has no intention of becoming a Disqualified Organization;
(2) the proposed transferee deliver to the Trustee or Certificate Registrar, as
applicable, an affidavit stating (i) that such transferee is not acquiring such
Class A-R Certificate as an agent, broker, nominee, or middleman for a
Disqualified Organization, (ii) if the Class A-R Certificate is a "non-economic
residual interest" within the meaning of Treas. Reg. Section 1.860E-1(c)(2), (X)
that no purpose of the acquisition of the Class A-R Certificate is to avoid or
impede the assessment or collection of tax, (Y) that such transferee has
historically paid its debts as they came due and will continue to pay its debts
as they come due, and (Z) that such transferee represents that it understands
that, as the holder of the non-economic residual interest, the transferee may
incur tax liabilities in excess of any cash flows generated by the interest and
that the transferee intends to pay taxes associated with holding the residual
interest, and (iii) unless the Certificate Registrar or, if no Certificate
Registrar is appointed, the Trustee consents to the transfer of the Class A-R
Certificate to a Person who is not a U.S. Person and who has furnished either a
duly completed and effective Form W-8ECI (or any successor thereto) or an
Opinion of Counsel to the effect that the transfer will not be disregarded for
federal income tax purposes, that it is a U.S. Person; (3) if so requested by
the transferor in written notice provided to the Certificate Registrar or, if no
Certificate Registrar is appointed, the Trustee, prior to the date of the
proposed transfer, the proposed transferee deliver to the Trustee or Certificate
Registrar, as applicable, an affidavit that includes a declaration made in the
form of declaration (11) in the affidavit set forth in Exhibit K requested by
the transferor; and (4) the transferor deliver to the Certificate Registrar or,
if no Certificate Registrar is appointed, the Trustee a written certification
that as of the date of such transfer it has no knowledge and no reason to know
that the affirmations described in clauses (1), (2) and (3) were false. The
Certificate Registrar or, if no Certificate Registrar is appointed, the Trustee
shall not grant the consent referred to in this Section 4.02(i) if it has actual
knowledge that any statement made in the affidavit issued pursuant to the
preceding sentence is not true. Notwithstanding any purported transfer, sale or
other disposition of the Class A-R Certificate to a Disqualified Organization or
in violation of the provisions of this Section 4.02(i), such transfer, sale or
other disposition shall be deemed to be of no legal force or effect whatsoever
and such Disqualified Organization shall not be deemed to be a Class A-R
Certificateholder for any purpose hereunder, including, but not limited to, the
receipt of distributions on such Class A-R Certificate. If any purported
transfer shall be in violation of the provisions of this Section 4.02(i) then
the prior Holder of the Class A-R Certificate shall, upon discovery that the
transfer of such Class A-R Certificate was not in fact permitted by this Section
4.02(i), be restored to all rights and obligations as a Holder thereof
retroactive to the date of the purported transfer of such Class A-R Certificate.
The Trustee, the Servicer and the Certificate Registrar shall be under no
liability to any Person for any registration or transfer of a Class A-R
Certificate that is not permitted by this Section 4.02(i) or for making payments
due on such Class A-R Certificate to the purported Holder thereof or taking any
other action with respect to such purported Holder under the provisions of this
Agreement so long as the transfer was not registered under the written
certification of the Certificate Registrar or, if no Certificate Registrar is
appointed, the Trustee as described in this Section 4.02(i). The prior Holder
shall be entitled to recover from any purported Holder of a Class A-R
Certificate that was in fact not a permitted purported transferee under this
Section 4.02(i) at the time it became a purported Holder all payments made to
such purported Holder on such Class A-R Certificate; provided that the Servicer
shall not be responsible for such recovery. Each Class A-R Certificateholder, by
the acceptance of the Class A-R Certificate, shall be deemed for all purposes to
have consented to the provisions of this Section 4.02(i) and to any amendment to
this Agreement deemed necessary by counsel of the Trustee or the Servicer to
ensure that the Class A-R Certificate is not transferred to a Disqualified
Organization and that any transfer of such Class A-R

                                       64

<PAGE>

Certificate will not cause the imposition of a tax upon any REMIC created
hereunder or cause any REMIC created hereunder to fail to qualify as a REMIC.
The restrictions on transfer of the Class A-R Certificate will cease to apply
and be void upon receipt by the Certificate Registrar or, if no Certificate
Registrar is appointed, the Trustee of an Opinion of Counsel to the effect that
such restrictions on transfer are no longer necessary to avoid the risk of
material federal taxation to any REMIC created hereunder or prevent any REMIC
created hereunder from qualifying as a REMIC.

     (j) The Servicer shall make available upon written request to each Holder
and each proposed transferee of a Class B-3, Class B-4 or Class B-5 Certificate
such information as may be required to permit the proposed transfer to be
effected pursuant to Rule 144A under the Securities Act.

     Section 4.03 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any
mutilated Certificate is surrendered to the Trustee or, if a Paying Agent has
been appointed under Section 4.05, the Paying Agent, or the Trustee or, if a
Paying Agent has been appointed under Section 4.05, the Paying Agent, receives
evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and (b) there is delivered to the Trustee or, if a Paying Agent has
been appointed under Section 4.05, the Paying Agent, such security or indemnity
as may be required by it to save it harmless, then, in the absence of notice to
the Trustee or, if a Paying Agent has been appointed under Section 4.05, the
Paying Agent, that such Certificate has been acquired by a bona fide purchaser,
the Trustee or, if a Paying Agent has been appointed under Section 4.05, the
Paying Agent, shall authenticate and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
tenor and Class. Upon the issuance of any new Certificate under this Section,
the Trustee or, if a Paying Agent has been appointed under Section 4.05, the
Paying Agent, may require of the Certificateholder the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses connected therewith. Any replacement
Certificate of any Class issued pursuant to this Section shall constitute
complete and indefeasible evidence of ownership of the Percentage Interest in
the distributions to which the Certificateholders of such Class are entitled, as
if originally issued, whether or not the mutilated, destroyed, lost or stolen
Certificate shall be found at any time, and such mutilated, destroyed, lost or
stolen Certificate shall be of no force or effect under this Agreement, to the
extent permitted by law.

     Section 4.04 Persons Deemed Owners. Prior to due presentation of a
Certificate of any Class for registration of transfer, the Depositor, the
Servicer, the Paying Agent and the Trustee may treat the Person in whose name
any Certificate is registered on the Record Date as the owner of such
Certificate and the Percentage Interest in the distributions to which the
Certificateholders of such Class are entitled on the relevant date as the Holder
of such Certificate and the Percentage Interest represented by such Certificate
for the purpose of receiving remittances pursuant to Section 6.01 and for all
other purposes whatsoever, and neither the Depositor, the Servicer, the Paying
Agent nor the Trustee shall be affected by notice to the contrary.

     Section 4.05 Appointment of Paying Agent and Certificate Registrar;
Certificate Account. The Trustee shall appoint a Paying Agent and a Certificate
Registrar (the "Certificate Registrar") hereunder, provided such Paying Agent
and such Certificate Registrar shall not be the Depositor, any Seller, or an
Affiliate of the Depositor or any Seller unless such Paying Agent or such
Certificate Registrar is the World Securities Services Department of Chase. No
later than two Business Days prior to each Distribution Date, the Servicer shall
deposit or cause to be deposited with the Paying Agent from funds on deposit in
the Collection Account a sum up to the Available Distribution Amount, such sum
to be held in trust for the benefit of Certificateholders in a segregated
account (the "Certificate Account") which shall be an Eligible Account in the
name of "U.S. Bank National Association, as Trustee, in trust for and for the
benefit of the Certificateholders of Multi-Class Mortgage Pass-Through
Certificates, Chase Mortgage Finance Corporation, Series 2006-A1 - Certificate
Account". The Paying Agent shall establish

                                       65

<PAGE>

such Certificate Account with a commercial bank, a savings bank or a savings and
loan association. The Paying Agent may invest moneys in the Certificate Account
in Eligible Investments, which shall mature not later than a date sufficient to
make payment on the Distribution Date next following the date of such investment
and shall not be sold or disposed of prior to maturity. All income and gain
realized from any such investment shall be for the benefit of the Paying Agent
as additional compensation and shall be subject to its withdrawal or order from
time to time. The amount of any losses incurred in respect of any such
investments (to the extent not offset by income from other such investments)
shall be deposited in the Certificate Account by the Paying Agent out of its own
funds immediately as realized. The Servicer shall cause the Paying Agent to
perform each of the obligations of the Paying Agent set forth herein and shall
be liable to the Trustee and the Certificateholders for failure of the Paying
Agent to perform such obligations. So long as the Paying Agent is a party other
than the Trustee, the Trustee shall have no liability in connection with the
performance or failure of performance of the Paying Agent. The Trustee
designates the World Securities Services Department of Chase as the initial
Paying Agent and initial Certificate Registrar. Only the Trustee may remove the
Paying Agent and Certificate Registrar and may do so at will, provided that the
Trustee gives 20 days' prior written notice of such removal to the Paying Agent
and Certificate Registrar and the Rating Agencies. Notwithstanding anything to
the contrary contained herein, no approvals or consent shall be required for the
subsequent appointment of The Bank of New York as Paying Agent.

     The Paying Agent will hold all sums held by it for the payment to
Certificateholders in trust for the benefit of the Certificateholders entitled
thereto until such sums shall be paid to such Certificateholders.

     Section 4.06 Authenticating Agents.

     (a) The Trustee may appoint one or more Authenticating Agents (each, an
"Authenticating Agent") which shall be authorized to act on behalf of the
Trustee in authenticating the Certificates. Wherever reference is made in this
Agreement to the authentication of Certificates by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by an Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent must be an entity organized and
doing business under the laws of the United States of America or of any state,
having a combined capital and surplus of at least $15,000,000, authorized under
such laws to do a trust business and subject to supervision or examination by
federal or state authorities. So long as the Authenticating Agent is a party
other than the Trustee, the Trustee shall have no liability in connection with
the performance or failure of performance of the Authenticating Agent. The
Trustee hereby appoints the Paying Agent as the initial Authenticating Agent.

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

     (c) Any Authenticating Agent may at any time resign by giving at least 30
days' advance written notice of resignation to the Trustee and the Depositor.
The Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Depositor. Upon receiving a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance within the provisions of this Section 4.06, the Trustee may appoint a
successor Authenticating Agent, shall give written notice of such appointment to
the Depositor and shall mail notice of such appointment to all Holders of
Certificates.

                                       66

<PAGE>

Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers, duties and responsibilities of
its predecessor hereunder, with like effect as if originally named as
Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section 4.06. No Authenticating
Agent shall have responsibility or liability for any action taken by it as such
at the direction of the Trustee. Each of the Authenticating Agent, Certificate
Registrar and Paying Agent shall be afforded the same rights, protections and
indemnities as the Trustee as set forth under Article VIII hereunder.

                               [END OF ARTICLE IV]

                                   ARTICLE V

                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

     Section 5.01 Servicer to Service Mortgage Loans. The Servicer shall service
and administer the Mortgage Loans and shall have full power and authority,
acting alone or through Sub-Servicers as provided in Section 5.02, to do any and
all things which it may deem necessary or desirable in connection with such
servicing and administration, all in accordance with Accepted Servicing
Practices. Without limiting the generality of the foregoing, the Servicer in its
own name or in the name of a Sub-Servicer shall, pursuant to a power of attorney
granted hereby by the Trustee for such purposes, when the Servicer or the
Sub-Servicer, as the case may be, believes it appropriate in its best judgment,
to execute and deliver, on behalf of the Certificateholders and the Trustee or
any of them, any and all instruments of satisfaction or cancellation, or of
partial or full release or discharge and all other comparable instruments, with
respect to the Mortgage Loans and with respect to the related Mortgaged
Properties; provided, however, that subject to the provisions of this paragraph,
the Servicer may allow a modification with respect to a Mortgage Loan if the
Servicer would take such action in the ordinary course of its business if it
were the owner of the Mortgage Loan. The Servicer will indemnify the Trustee for
any misuse of such power of attorney provided hereunder. The Servicer may agree
to a modification of any Mortgage Loan (the "Relevant Mortgage Loan") upon the
request of the related Mortgagor, provided that (i) the modification is in lieu
of a refinancing and the Mortgage Rate on the Relevant Mortgage Loan, as
modified, is approximately a prevailing market rate of newly-originated mortgage
loans having similar terms, (ii) the aggregate of the adjusted bases of all
Modified Mortgage Loans (including the Relevant Mortgage Loans) plus the
aggregate adjusted bases of any assets that are not qualified mortgages or
permitted investments under Section 860G(a) of the Code that are assets of the
Trust Fund established hereunder at all times on any day is less than one
percent of the aggregate of the adjusted bases of all assets of the Trust Fund
(including such Modified Mortgage Loans) on such day, and (iii) the Servicer
purchases the Relevant Mortgage Loan from the Trust Fund as described below.
Effective immediately after such modification, and, in any event, on the same
Business Day on which the modification occurs, all right, title and interest of
the Trustee in and to the Modified Mortgage Loan shall automatically be deemed
transferred and assigned to the Servicer and all benefits and burdens of
ownership thereof, including without limitation the right to accrued interest
thereon from and including the date of modification and the risk of default
thereon, shall pass to the Servicer. To confirm such transfer and assignment,
the Servicer, as servicer hereunder, as soon as practicable shall execute an
instrument of assignment of the Modified Mortgage Loan without recourse in
customary form to the Servicer in its individual capacity. The Servicer shall
deposit the Purchase Price for any Modified Mortgage Loan in the Collection
Account pursuant to Section 5.08. Upon receipt by the Trustee of written
notification of any such deposit signed by a Servicing Officer, the Trustee
shall release to the Servicer the related Mortgage File and shall execute and
deliver such instruments of transfer or assignment, in each case without
recourse, as shall be necessary more fully to vest in the Servicer any Modified
Mortgage Loan previously transferred and assigned pursuant thereto.
Notwithstanding anything herein to the contrary, the Servicer

                                       67

<PAGE>

shall not make or permit any modification of a Mortgage Loan that would cause
any REMIC Pool to fail to qualify as a REMIC for federal income tax purposes or
that would result in the imposition of any material tax under Section 860F(a) or
Section 860G(d) of the Code.

     The Servicer shall furnish to the Trustee for execution and redelivery to
the Servicer or, at the request of the Servicer, a Sub-Servicer, such documents
necessary or appropriate to enable the Servicer to service and administer the
Mortgage Loans and the Trustee shall not be responsible for the Servicer's
application thereof. The Servicer agrees to remain eligible as either a FNMA or
FHLMC seller/servicer, or both, for so long as it is Servicer.

     All Servicing Advances made by the Servicer in effecting the timely payment
of taxes, insurance and assessments on the properties subject to the Mortgage
Loans shall not, for the purpose of calculating monthly distributions to
Certificateholders, be added to the amount owing under the related Mortgage
Loans, notwithstanding that the terms of such Mortgage Loan so permit, and such
Servicing Advances shall be recoverable by the Servicer to the extent permitted
by Sections 5.09 and 5.23.

     Section 5.02 Sub-Servicing Agreements Between Servicer and Sub-Servicers;
Enforcement of Sub-Servicer's Obligations.

     (a) The Servicer may enter into Sub-Servicing Agreements with Sub-Servicers
for the servicing and administration of all or part of the Mortgage Loans.
References in this Agreement to actions taken or to be taken by the Servicer in
servicing the Mortgage Loans serviced by it include actions taken or to be taken
by a Sub-Servicer on behalf of the Servicer. Each Sub-Servicing Agreement will
be upon such terms and conditions as are not inconsistent with this Agreement
and as the Servicer and the Sub-Servicer have agreed. The Servicer hereby agrees
to notify the Trustee in writing promptly upon the appointment of any
Sub-Servicer. For purposes of this Agreement, the receipt by the Sub-Servicer of
any amount with respect to a Mortgage Loan (other than amounts representing
servicing compensation or reimbursement for an advance) shall be treated as the
receipt by the Servicer of such amount. The Sub-Servicer shall deposit all such
funds in an Eligible Account.

     (b) As part of its servicing activities hereunder, the Servicer, for the
benefit of the Trustee and the Certificateholders, shall enforce the obligations
of each Sub-Servicer under the related Sub-Servicing Agreement. Such
enforcement, including, without limitation, the legal prosecution of claims,
termination of Sub-Servicing Agreements as appropriate, and the pursuit of other
remedies, shall be in such form and carried out to such an extent and at such
time as the Servicer, in its good faith business judgment, would require were it
the owner of the related Mortgage Loans. The Servicer shall pay the costs of
such enforcement at its own expense but shall be reimbursed therefor only (i)
from a general recovery resulting from such enforcement only to the extent, if
any, that such recovery exceeds all amounts due in respect of the related
Mortgage Loans or (ii) from a specific recovery of costs, expenses or attorneys'
fees against the party against whom such enforcement is directed.

     (c) The Servicer shall not permit a Sub-Servicer to perform any servicing
responsibilities hereunder with respect to the Mortgage Loans unless that
Sub-Servicer first agrees in writing with the Servicer to deliver an Assessment
of Compliance and an Accountant's Attestation in such manner and at such times
that permits the Servicer to comply with Section 5.25 of this Agreement.

     Section 5.03 Successor Sub-Servicers. The Servicer shall be entitled to
terminate any Sub-Servicing Agreement that may exist in accordance with the
terms and conditions of such Sub-Servicing Agreement and without any limitation
by virtue of this Agreement.

                                       68

<PAGE>

     Section 5.04 Liability of the Servicer. Notwithstanding any Sub-Servicing
Agreement, any of the provisions of this Agreement relating to agreements or
arrangements between the Servicer and a Sub-Servicer or reference to actions
taken through a Sub-Servicer or otherwise, the Servicer shall remain obligated
and liable to the Trustee and Certificateholders for the servicing and
administering of the Mortgage Loans in accordance with the provisions of this
Agreement without diminution of such obligation or liability by virtue of such
Sub-Servicing Agreements or arrangements or by virtue of indemnification from
the Sub-Servicer and to the same extent and under the same terms and conditions
as if the Servicer alone were servicing and administering the Mortgage Loans.
The Servicer shall be entitled to enter into any agreement with a Sub-Servicer
for indemnification of the Servicer and nothing contained in this Agreement
shall be deemed to limit or modify such indemnification.

     Section 5.05 No Contractual Relationship Between Sub-Servicer and Trustee
or Certificateholders. Any Sub-Servicing Agreement that may be entered into and
any other transactions or services relating to the Mortgage Loans involving a
Sub-Servicer in its capacity as such and not as an originator shall be deemed to
be between the Sub-Servicer and the Servicer alone, and the Trustee and
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties or liabilities with respect to the Sub-Servicer.

     Section 5.06 Termination of Sub-Servicing Agreement. If the Servicer shall
for any reason no longer be the Servicer hereunder (including by reason of any
Event of Default), the Servicer shall thereupon terminate each Sub-Servicing
Agreement that may have been entered into, and the Trustee, its designee or the
successor servicer and the Trustee shall not be deemed to have assumed any of
the Servicer's interest therein or to have replaced the Servicer as a party to
any such Sub-Servicing Agreement.

     Section 5.07 Collection of Mortgage Loan Payments. Continuously from the
date hereof until the principal and interest on all Mortgage Loans are paid in
full, the Servicer will proceed diligently to collect all payments due under
each of the Mortgage Loans when the same shall become due and payable; provided,
however, that the Servicer may elect, to the extent consistent with Accepted
Servicing Practices, to waive any late payment charge and shall, to the extent
such procedures shall be consistent with this Agreement, follow such collection
procedures as it follows with respect to conventional mortgage loans held in its
own portfolio. Any such arrangements shall not diminish or otherwise affect the
Servicer's obligation to make Advances pursuant to Section 6.03.

     Section 5.08 Establishment of Collection Account; Deposit in Collection
Account. With respect to all of the Mortgage Loans, the Servicer shall segregate
and hold all funds collected and received pursuant to a Mortgage Loan separate
and apart from any of its own funds and general assets and shall establish and
maintain one or more Collection Accounts for the benefit of the
Certificateholders (collectively, the "Collection Account") which are Eligible
Accounts, in the form of a trust account, in the name of "U.S. Bank National
Association, as Trustee, in trust for and for the benefit of the
Certificateholders of Multi-Class Mortgage Pass-Through Certificates, Chase Home
Finance LLC as subservicer for JPMorgan Chase Bank, N.A. as Servicer, Chase
Mortgage Finance Corporation, Series 2006-A1 - Collection Account." Such
Collection Account shall be established with a commercial bank, a savings bank
or a savings and loan association. The Servicer may invest, or cause the
institution maintaining the Collection Account to invest, moneys in the
Collection Account in Eligible Investments, which shall mature not later than
two Business Days preceding the Distribution Date next following the date of
such investment and shall not be sold or disposed of prior to its maturity. All
income and gain realized from any such investment shall be for the benefit of
the Servicer as additional compensation and shall be subject to its withdrawal
or order from time to time. The amount of any losses incurred in respect of any
such investments (to the extent not offset by income from other such
investments) shall be deposited in the Collection Account by the Servicer out of
its own funds immediately as realized;

                                       69

<PAGE>

provided, however, that if the Trustee becomes the Servicer, the Trustee shall
not be required to deposit the amount of any loss incurred prior to it becoming
the Servicer.

          The Servicer shall deposit or cause to be deposited in the Collection
Account on a daily basis (and not later than the second Business Day following
receipt), and retain therein:

               (i) All payments which were received after the Cut-off Date on
     account of principal of the Mortgage Loans (other than the principal
     portion of Monthly Payments due on or before the Cut-off Date), and all
     Principal Prepayments collected on or after the Cut-off Date;

               (ii) All payments which were received after the Cut-off Date on
     account of interest on the Mortgage Loans (net of the Servicing Fee)(other
     than the interest portion of Monthly Payments due on or before the Cut-off
     Date);

               (iii) Any Subsequent Recovery or Net Liquidation Proceeds;

               (iv) All Insurance Proceeds received by the Servicer under any
     title, hazard or other insurance policy, including amounts required to be
     deposited pursuant to Sections 5.16 and 5.20, other than proceeds to be
     held in the Escrow Account or applied to the restoration or repair of the
     Mortgaged Property (or Underlying Mortgaged Property, in the case of a
     Co-op Loan) or released to the Mortgagor in accordance with the Servicer's
     normal servicing procedures or otherwise applied or held as required by
     applicable law;

               (v) All awards or settlements in respect of condemnation
     proceedings affecting any Mortgaged Property (or Underlying Mortgaged
     Property, in the case of a Co-op Loan), which are not released to the
     Mortgagor in accordance with the Servicer's normal servicing procedures;

               (vi) All Repurchase Proceeds;

               (vii) All Advances made by the Servicer pursuant to Section 6.03;

               (viii) All amounts representing revenues under the insurance
     provided pursuant to Section 5.19 to the extent of any losses borne by any
     Certificateholder;

               (ix) All revenues from any Mortgaged Property (or Underlying
     Mortgaged Property in the case of a Co-op Loan) acquired by the Servicer by
     foreclosure or deed in lieu of foreclosure net of any Servicing Advances
     with respect to such Mortgaged Property (or Underlying Mortgaged Property
     in the case of a Co-op Loan); and

               (x) Any other amounts required to be deposited therein pursuant
     to this Agreement.

     The Servicer shall maintain accounting records on a Mortgage Loan by
Mortgage Loan basis with respect to the Collection Account. The Servicer shall
give notice to the Trustee, any Paying Agent, the Depositor and each Rating
Agency of any change in the location of the Collection Account, prior to the use
thereof. Notwithstanding anything to the contrary herein, no Monthly Payment or
any portion thereof shall be permitted to remain in the Collection Account for
more than 12 months. Any Monthly Payment or any portion thereof that has
remained in the Collection Account for 12 months shall be deemed a Principal
Prepayment and distributed to Certificateholders pursuant to the provisions of
this Agreement on the Distribution Date immediately following the end of such 12
month period.

                                       70

<PAGE>

     Section 5.09 Permitted Withdrawals from the Collection Account. The
Servicer may, from time to time, withdraw funds from the Collection Account for
the following purposes:

     (a) to reimburse itself for Advances made pursuant to Section 6.03
(including amounts to reimburse the related Sub-Servicer for advances made
pursuant to the applicable Sub-Servicing Agreement), the Servicer's and the
related Sub-Servicer's right to receive reimbursement pursuant to this subclause
(i) being limited to amounts received on particular Mortgage Loans which
represent Late Collections (net of the Servicing Fees) with respect to those
particular Mortgage Loans;

     (b) to pay itself the Servicing Fee;

     (c) to reimburse itself for unreimbursed Servicing Advances, or to pay the
related Sub-Servicer any unreimbursed Servicing Advances, the Servicer's right
to receive reimbursement or make payments to the Sub-Servicer pursuant to this
subclause (c) with respect to any Mortgage Loan being limited to related
Liquidation Proceeds, Insurance Proceeds, Subsequent Recoveries and condemnation
awards;

     (d) to reimburse itself (or the related Sub-Servicer) or the Depositor for
expenses incurred by and recoverable by or reimbursable to it pursuant to
Section 5.01 or 5.16;

     (e) to reimburse itself (or the related Sub-Servicer) for any
Nonrecoverable Advances;

     (f) to pay to itself (or the related Sub-Servicer) income earned on the
investment of funds deposited in the Collection Account;

     (g) to make deposits into the Certificate Account in the amounts and in the
manner provided for herein;

     (h) to make payments to itself or others pursuant to any provision of this
Agreement, and to clear and terminate the Collection Account upon the
termination of this Agreement; and

     (i) to withdraw amounts deposited in error.

     Section 5.10 Establishment of Escrow Account; Deposits in Escrow Account.
With respect to those Mortgage Loans on which the Servicer or any Sub-Servicer
collects Escrow Payments, if any, the Servicer shall, and shall cause any
Sub-Servicer to, segregate and hold all funds collected and received pursuant to
each such Mortgage Loan which constitute Escrow Payments separate and apart from
any of its own funds and general assets and shall establish and maintain one or
more Escrow Accounts, in the form of trust accounts. Such Escrow Accounts shall
be established with a commercial bank, a mutual savings bank or a savings and
loan association the deposits of which are insured by the FDIC in a manner which
shall provide maximum available insurance thereunder, and which may be drawn on
by the Servicer. The Servicer shall, if requested by the Trustee, give notice to
the Trustee of the location of any Escrow Account. Nothing in this paragraph
shall be deemed to require the Servicer to collect Escrow Payments in the
absence of a provision in the related Mortgage requiring such collection.

     The Servicer shall deposit, or cause to be deposited, in any Escrow Account
or Accounts on a daily basis, and retain therein, (i) all Escrow Payments
collected on account of any Mortgage Loans serviced by the Servicer, for the
purpose of effecting timely payment of any such items as required under the
terms of this Agreement and (ii) all amounts representing proceeds of any hazard
insurance policy which are to be applied to the restoration or repair of any
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan). The Servicer shall make withdrawals therefrom only to effect

                                       71

<PAGE>

such payments as are required under this Agreement, and for such other purposes
as are set forth in Section 5.11. The Servicer shall be entitled to retain any
interest paid on funds deposited in the Escrow Account by the depository
institution other than interest on escrowed funds required by law to be paid to
the related Mortgagor and, to the extent required by law, the Servicer shall pay
interest on escrowed funds to the related Mortgagor notwithstanding that the
Escrow Account is non-interest-bearing or that interest paid thereon is
insufficient for such purposes.

     Section 5.11 Permitted Withdrawals from Escrow Account. Withdrawals from
any Escrow Account or Accounts may be made by a Servicer only (i) to effect
timely payments of ground rents, taxes, assessments, water rates, Standard
Hazard Policy premiums, or other items constituting Escrow Payments for the
related Mortgage, (ii) to reimburse the Servicer for any Servicing Advance made
by the Servicer, with respect to a related Mortgage Loan but only from amounts
received on the related Mortgage Loan which represent late payments or
collections of Escrow Payments thereunder, (iii) to refund to any Mortgagor any
funds found to be in excess of the amounts required under the terms of the
related Mortgage Loan or under applicable law, (iv) for application to
restoration or repair of the property subject to the related Mortgage, (v) to
pay to the Servicer, or to the Mortgagor to the extent required by law, any
interest paid on the funds deposited in the Escrow Account, (vi) to clear and
terminate the Escrow Account on the termination of this Agreement or (vii) to
withdraw amounts deposited in error.

     Section 5.12 Payment of Taxes, Insurance and Other Charges. With respect to
each Mortgage Loan, the Servicer shall maintain, or cause to be maintained,
accurate records reflecting any delinquencies or nonpayments with regard to
taxes, assessments and Standard Hazard Policy premiums. The Servicer assumes
full responsibility for ensuring the payment of all such bills and shall effect
payments of all such bills irrespective of each Mortgagor's faithful performance
in the payment of same or the making of the Escrow Payments and shall make
advances from its own funds to effect such payments.

     Section 5.13 Transfer of Accounts. The Servicer may transfer the Collection
Account or Escrow Account to an Eligible Account maintained with a different
depository institution from time to time and shall notify the Trustee and the
Paying Agent of any such transfer.

     Section 5.14 [Reserved].

     Section 5.15 Maintenance of the Primary Insurance Policies. The Servicer
shall not take, or permit any related Sub-Servicer to take, any action which
would result in non-coverage under any applicable Primary Insurance Policy of
any loss which, but for the actions of the Servicer or Sub-Servicer, would have
been covered thereunder. Except as otherwise required by applicable law, to the
extent coverage is available and until the Loan-to-Value Ratio of the related
Mortgage Loan is reduced to 80%, the Servicer shall keep or cause to be kept in
full force and effect each such Primary Insurance Policy in an amount equal to
the amount by which the unpaid principal balance of the related Mortgage Loan
exceeds 75% of the value (as described in the definition of Loan-to-Value Ratio)
of the related Mortgaged Property (or Underlying Mortgaged Property, in the case
of a Co-op Loan). The Servicer shall not cancel or refuse to renew any such
Primary Insurance Policy or consent to any related Sub-Servicer canceling or
refusing to renew any such Primary Insurance Policy applicable to a Mortgage
Loan subserviced by it, that is in effect at the date of the initial issuance of
the Certificates and is required to be kept in force hereunder unless the
replacement Primary Insurance Policy for such canceled or non-renewed policy is
maintained with an insurer whose claims-paying ability is rated at least as high
as the original insurer or is acceptable to each Rating Agency as confirmed in
writing by each such Rating Agency, unless otherwise required by law.

     Section 5.16 Maintenance of Standard Hazard Policies.

                                       72

<PAGE>

     (a) The Servicer shall cause to be maintained for each Mortgage Loan (other
than a Co-op Loan) a Standard Hazard Policy with extended coverage as is prudent
in the area where the Mortgaged Property is located in an amount which is equal
to the greater of (i) the lesser of (A) 100% of the maximum insurable value of
the improvements securing such Mortgage Loan or (B) the principal balance owing
on such Mortgage Loan, or (ii) such amount required to prevent the Mortgagor or
mortgagee from becoming a co-insurer. If the Mortgaged Property is in an area
identified at the time of origination in the Federal Register by the Federal
Emergency Management Agency as having special flood hazards (and such flood
insurance has been made available) the Servicer will cause to be maintained a
flood insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration with a generally acceptable insurance carrier,
in an amount representing coverage not less than the least of (i) the
outstanding Principal Balance of the Mortgage Loan, (ii) the full insurable
value or (iii) the maximum amount of insurance which is available under the
Flood Disaster Protection Act of 1973, as amended. The Servicer shall also
maintain on property acquired upon foreclosure, or by deed in lieu of
foreclosure, of any Mortgage Loan, fire and hazard insurance with extended
coverage in an amount which is not less than the lesser of (i) the outstanding
Principal Balance of the Mortgage Loan or (ii) the maximum insurable value of
the improvements which are a part of such property, liability insurance, and, to
the extent available, flood insurance in an amount as provided above. Any
amounts collected by the Servicer under any such policies (other than amounts to
be applied to the restoration or repair of the property subject to the related
Mortgage or property acquired in liquidation of the Mortgage Loan, or released
to the Mortgagor in accordance with the Servicer's normal servicing procedures)
shall be deposited, subject to applicable law, in the Collection Account. It is
understood and agreed that no earthquake or other additional insurance need be
required by the Servicer of any Mortgagor or maintained on property acquired in
respect of a Mortgage Loan, other than pursuant to such applicable laws and
regulations as shall at any time be in force and as shall require such
additional insurance. All such Standard Hazard Policies and other policies shall
be endorsed with standard mortgagee clauses with loss payable to the Servicer or
its designee. Any such Standard Hazard Policies or other policies may be in the
form of blanket policies; provided, however, that in the event of any claim
arising in connection with a hazard loss the Servicer shall be obligated, in the
case of blanket insurance policies, to deposit in the Collection Account any
amount not payable under such blanket policy because of a deductible clause in
such policy and not otherwise payable under an individual policy. The Servicer
shall not interfere with the Mortgagor's freedom of choice in selecting either
his insurance carrier or agent; provided, however, that the Servicer shall not
accept any such insurance policies from insurance companies unless such
companies are acceptable insurers in the discretion of the Servicer.

     (b) Any cost incurred by the Servicer in maintaining any of the foregoing
insurance shall not, for the purpose of calculating monthly distributions to
Certificateholders, be added to the amount owing under the Mortgage Loan,
notwithstanding that the terms of the Mortgage Loan so permit. Such costs (other
than the costs of maintaining a blanket hazard insurance policy not attributable
to a specific Mortgaged Property) shall be recoverable by the Servicer from the
Mortgagor or out of Insurance Proceeds, Subsequent Recoveries or Liquidation
Proceeds or to the extent permitted by Section 5.09.

     Section 5.17 [Reserved].

     Section 5.18 [Reserved].

     Section 5.19 Fidelity Bond and Errors and Omissions Insurance. The Servicer
shall maintain, at its own expense, a blanket fidelity bond and an errors and
omissions insurance policy, with broad coverage with responsible companies on
all officers, employees or other persons acting on behalf of the Servicer in any
capacity with regard to the Mortgage Loans to handle funds, money, documents and
papers relating to the Mortgage Loans. Any such fidelity bond and errors and
omissions insurance shall protect and insure the Servicer against losses,
including forgery, theft, embezzlement, fraud, errors and

                                       73

<PAGE>

omissions and negligent acts of such persons and shall be maintained at a level
acceptable to FNMA. No provision of this Section 5.19 requiring such fidelity
bond and errors and omissions insurance shall diminish or relieve the Servicer
from its duties and obligations as set forth in this Agreement. Upon request of
the Trustee, the Servicer shall cause to be delivered to the Trustee a
certification evidencing coverage under such fidelity bond and insurance policy.
Promptly upon receipt of any notice from the surety or the insurer that such
fidelity bond or insurance policy has been terminated or modified in a
materially adverse manner, the Servicer shall notify the Trustee and each Rating
Agency of any such termination or modification.

     Section 5.20 Collections under Insurance Policies; Enforcement of
Due-On-Sale Clauses; Assumption Agreements.

     (a) In connection with its activities as administrator and servicer of the
Mortgage Loans, the Servicer agrees to present, on behalf of itself, the Trustee
and the Certificateholders, claims to the insurer under any Standard Hazard
Policies and, in this regard, to take such reasonable action as shall be
necessary to permit recovery under any insurance policies. Pursuant to Section
5.08, the Servicer shall deposit Insurance Proceeds in the Collection Account.

     (b) When any Mortgaged Property (or stock allocated to a dwelling unit, in
the case of a Co-op Loan) is conveyed by the Mortgagor, the Servicer shall
enforce any due-on-sale clause contained in any Mortgage Note or Mortgage, to
the extent permitted by such Mortgage Note or Mortgage, applicable law and
governmental regulations. Subject to the foregoing, the Servicer is authorized
to take or enter into an assumption or substitution agreement from or with the
Person to whom such property has been or is about to be conveyed. In connection
with such assumption or substitution, the Servicer shall apply such underwriting
standards and follow such practices and procedures as shall be normal and usual
and as it applies to mortgage loans owned solely by it.

     Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any conveyance by the
Mortgagor of the Mortgaged Property (or stock allocated to a dwelling unit, in
the case of a Co-op Loan) or any assumption of a Mortgage Loan by operation of
law which the Servicer in good faith determines it may be restricted by law from
preventing, for any reason whatsoever.

     (c) Subject to the Servicer's duty to enforce any due-on-sale clause to the
effect set forth in Section 5.20(b), in any case in which a Mortgaged Property
(or stock allocated to a dwelling unit, in the case of a Co-op Loan) is to be
conveyed to a Person by a Mortgagor, and such Person is to enter into an
assumption agreement or modification agreement or supplement to the Mortgage
Note or Mortgage, the Servicer shall so notify the Trustee by forwarding to the
Trustee the original copy of such assumption or substitution agreement, which
copy shall be added by the Trustee to the related Mortgage File and shall, for
all purposes, be considered a part of such Mortgage File to the same extent as
all other documents and instruments constituting a part thereof. In connection
with any such assumption, modification agreement or substitution agreement, the
interest rate of the related Mortgage Note shall not be changed, the principal
amount of the Mortgage Note shall not be increased or decreased and the maturity
of the Mortgage Note shall not be extended, nor shall it be shortened by more
than one year. Any fee collected by the Servicer for entering into an assumption
or substitution of liability agreement with respect to such Mortgage Loan shall
be retained by the Servicer as additional servicing compensation.

     Section 5.21 Income and Realization from Defaulted Mortgage Loans. The
Servicer, on behalf of the Trustee, shall foreclose upon or otherwise comparably
convert the ownership of Mortgaged Properties (or stock allocated to a dwelling
unit, in the case of a Co-op Loan) securing such of the Mortgage Loans as come
into and continue in default and as to which no satisfactory arrangements can be

                                       74

<PAGE>

made for collection of delinquent payments pursuant to Section 5.07, shall
manage, conserve, protect and operate such Mortgaged Properties (or stock
allocated to a dwelling unit, in the case of a Co-op Loan) for the purposes of
their prompt disposition and sale, and shall dispose of such Mortgaged
Properties (or stock allocated to a dwelling unit, in the case of a Co-op Loan)
on such terms and conditions as it deems in the best interests of the
Certificateholders. The Servicer shall sell such property prior to the close of
the third calendar year beginning after the year in which such foreclosure or
conversion occurs or such longer period as would not prevent such Mortgaged
Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan)
from constituting "foreclosure property" within the meaning of Section
860G(a)(8) of the Code. The Servicer will ensure that no Mortgaged Property
shall be held, rented or otherwise used in such a manner or pursuant to any
terms that would (i) cause such Mortgaged Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code or
(ii) subject any REMIC Pool to the imposition of any federal income taxes on the
income earned on such Mortgaged Property, including any taxes imposed by reason
of Section 860F or 860G(c) of the Code. In connection with such activities, the
Servicer shall follow such practices and procedures as it shall deem necessary
or advisable, as shall be normal and usual in its general mortgage servicing
activities, including its management of foreclosed properties for a temporary
period as contemplated herein. The foregoing is subject to the provisions of
Section 5.28 of this Agreement and to the proviso that the Servicer shall not be
required to expend its own funds in connection with any management, foreclosure
or towards the restoration of any property unless it shall determine that such
management, restoration or foreclosure will increase any Subsequent Recoveries
or Liquidation Proceeds of the Mortgage Loan to Certificateholders after
reimbursement to itself for such expenses (respecting which it shall have
priority for purposes of withdrawals from the Collection Account pursuant to
Section 5.09). The Servicer shall be permitted to earn income with respect to
any Mortgaged Properties (or stock allocated to a dwelling unit, in the case of
a Co-op Loan), provided such income does not constitute "net income from
foreclosure property" within the meaning of Section 860G(c) of the Code. The
income earned from the management of such Mortgaged Properties (or stock
allocated to a dwelling unit, in the case of a Co-op Loan), net of reimbursement
to the Servicer for expenses (including any taxes) incurred in connection with
such management, shall be applied to the payment of principal of and interest on
the related defaulted Mortgage Loans (with interest accruing and principal
amortizing as though such Mortgage Loans were still current) and all such income
shall be deemed, for all purposes in this Agreement, to be payments on account
of principal and interest on the related Mortgage Notes and shall be deposited
into the Collection Account. To the extent the income received is in excess of
the amount attributable to amortizing principal and accrued interest at the Net
Mortgage Rate on the related Mortgage Loan, such excess shall be deposited in
the Collection Account.

     The Servicer shall take into account the existence of any hazardous
substances, hazardous wastes or solid wastes, as such terms are defined in the
Comprehensive Environmental Response Compensation and Liability Act, as amended,
the Resources Conservation and Recovery Act of 1976, as amended, or other
federal, state or local environmental legislation, on a Mortgaged Property (or
Underlying Mortgaged Property, in the case of a Co-op Loan) in determining
whether to foreclose upon or otherwise comparably convert the ownership of such
property. To the extent that the Servicer has actual knowledge of any such
substance or waste, it shall consult with the Trustee regarding the appropriate
course of action. The Servicer shall not institute foreclosure actions with
respect to a property containing substance or waste as described above if it
reasonably believes that such action would not be consistent with its servicing
standards, and in no event shall the Servicer manage, operate or take any other
action with respect thereto which the Servicer in good faith believes will
result in "clean-up" or other liability under applicable law. The net income
from the rental or sale of a REO Property shall be deposited in the Collection
Account within two (2) Business Days after receipt thereof by the Servicer.

     The Servicer may enter into a special servicing agreement with an
unaffiliated holder of 100% Percentage Interest of the Class of Class B
Certificates then outstanding having the highest numerical

                                       75

<PAGE>

class designation or a holder of a class of securities representing interests in
such Class B Certificate and/or other subordinate mortgage pass-through
certificates, such agreement to be (i) substantially in the form of Exhibit J
hereto or (ii) subject to each Rating Agency's acknowledgment that the ratings
of the Certificates in effect immediately prior to the entering into of such
agreement would not be qualified, downgraded or withdrawn and the Certificates
would not be placed on credit review status (except for possible upgrading) as a
result of such agreement. Any such agreement may contain provisions whereby such
holder may instruct the Servicer to commence or delay foreclosure proceedings
with respect to delinquent Mortgage Loans and will contain provisions for the
deposit of cash by the holder that would be available for distribution to
Certificateholders if Liquidation Proceeds are less than they otherwise may have
been had the Servicer acted in accordance with its normal procedures.

     Section 5.22 Trustee to Cooperate; Release of Mortgage Files.

     (a) Upon becoming aware of the payment in full of any Mortgage Loan, or
upon the receipt by the Servicer of a notification that payment in full will be
made in a manner customary for such purposes, the Servicer shall immediately
notify the Custodian with a copy to the Trustee by a certification (which
certification shall include a statement to the effect that all amounts received
or to be received in connection with such payment which are required to be
deposited in the Collection Account pursuant to Section 5.08 have been or will
be so deposited) of a Servicing Officer and shall request delivery to it of the
Mortgage File. Upon receipt of such certification and request, within five
Business Days the Custodian on behalf of the Trustee shall release the related
Mortgage File to the Servicer and the Trustee will execute and deliver to the
Servicer the request for reconveyance, deed of reconveyance or release or
satisfaction of mortgage or such other instruments releasing the lien of the
Mortgage as have been provided by the Servicer to the Trustee, together with the
Mortgage Note with written evidence of cancellation thereon, and the Trustee
shall have no further responsibility with respect to said Mortgage File. Upon
any such payment in full, or the receipt of such notification, the Servicer is
authorized to procure from the Trustee under the deed of trust which secured the
Mortgage Note, if any, a deed of full reconveyance covering the property
encumbered by such deed of trust, which assignment of deed of trust, except as
otherwise provided by any applicable law, shall be recorded by the Servicer in
the appropriate land records in the jurisdiction in which the assignment of deed
of trust is recorded, or, as the case may be, to procure from the Trustee an
instrument of satisfaction or, if the Mortgagor so requests, an assignment
without recourse, which deed of reconveyance, instrument of satisfaction or
assignment shall be delivered by the Servicer to the Person or Persons entitled
thereto. No expenses incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Collection Account or to the
Trustee.

     (b) From time to time as is appropriate for the servicing or foreclosure of
any Mortgage Loan, the Servicer shall deliver to the Custodian a certificate of
a Servicing Officer requesting that possession of the Mortgage File be released
to the Servicer and certifying as to the reason for such release and that such
release will not invalidate any insurance coverage provided in respect of the
Mortgage Loan under any of the insurance policies required by this Agreement.
With such certificate, the Servicer shall require that the Custodian on behalf
of the Trustee release the Mortgage File, and, within five Business Days, the
Custodian shall deliver the Mortgage File or any document therein to the
Servicer. The Servicer shall cause each Mortgage File so released to be returned
to the Custodian on behalf of the Trustee when the need therefor by the Servicer
no longer exists, unless (i) the Mortgage Loan has been liquidated and the Net
Liquidation Proceeds relating to the Mortgage Loan have been deposited in the
Collection Account or (ii) the Mortgage File has been delivered to an attorney,
or to a public trustee or other public official as required by law, for purposes
of initiating or pursuing legal action or other proceedings for the foreclosure
of the Mortgaged Property (or stock allocated to a dwelling unit, in the case of
a Co-op Loan) either judicially or non-judicially, and the Servicer has
delivered to the Custodian on behalf of the Trustee a certificate of a Servicing
Officer in the form of Exhibit L hereto certifying as to

                                       76

<PAGE>

the name and address of the Person to which such Mortgage File was delivered and
the purpose or purposes of such delivery.

     (c) Upon written request of the Servicer, the Trustee shall execute and
deliver to the Servicer any court pleadings, requests for trustee's sale or
other documents prepared by and delivered by the Servicer to the Trustee
necessary to the foreclosure or trustee's sale in respect of a Mortgaged
Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan) or
to any legal action brought to obtain judgment against any Mortgagor on the
Mortgage Note or Mortgage or to obtain a deficiency judgment, or to enforce any
other remedies or rights provided by the Mortgage Note or Mortgage or otherwise
available at law or in equity. Together with such documents or pleadings, the
Servicer shall deliver to the Trustee a certificate of a Servicing Officer
requesting that such pleadings or documents be executed by the Trustee and
certifying as to the reason such documents or pleadings are required and that
the execution and delivery thereof by the Trustee will not invalidate any
insurance coverage under the insurance policies required under this Agreement or
invalidate or otherwise affect the lien of the Mortgage, except for the
termination of such a lien upon completion of the foreclosure or trustee's sale.
The Trustee may rely on such certificate without further inquiry.

     (d) The Servicer may provide an electronic transmission for release of
documents under this Section 5.22 in a form agreed to in advance of initial
transmission by both the Servicer and the Custodian, which form shall contain
information readable without intervention by Custodian's data processing
operations computer hardware and software staff, and arranged in a record layout
to be specified by Custodian (a "Paperless Release Request"). The Servicer
agrees to maintain and control access to electronic signature information and
assumes liability for any unauthorized use thereof, except for any unauthorized
use thereof by the Custodian and, provided that, the Servicer shall have no
liability arising from the form of transmission if the Servicer complies with
the Custodian's standards set forth in the next paragraph of this Section
5.22(d). The Servicer also agrees to maintain accurate records of electronic
transactions related to the custodial files. The Servicer hereby authorizes the
Custodian to automatically append the electronic signature of an authorized
representative to the applicable request for release of documents and agrees and
acknowledges that by appending such authorized representative's electronic
signature, the Custodian shall be entitled to rely thereon. For purposes of this
Agreement the term "electronic signature" means an electronic identifier
intended by the person using it to have the same force and effect as the use of
a manual signature.

          The Servicer agrees in advance to comply with all Custodian data
encryption, security and record layout standards in connection with any
Paperless Release Request as may be amended from time to time upon notice from
Custodian to the Servicer. The Custodian reserves the right to restrict or
suspend the Servicer's access to the Custodian's computer systems for
maintenance or repairs or for any other reason in the Custodian's sole
discretion, provided however that the Custodian shall promptly provide the
Servicer with notice of such restriction or suspension. Notwithstanding the
foregoing, the Servicer is authorized to transmit and the Custodian is
authorized to accept signed facsimile copies of the requests for document
release described in this Section 5.22.

     Section 5.23 Servicing and Other Compensation. The Servicer, as
compensation for its activities hereunder, shall be entitled to receive, on or
prior to each Distribution Date, the amounts provided for as the Servicing Fee
and as reimbursement for Nonrecoverable Advances, Servicing Advances and
reimbursement for Advances, all as specified by Section 5.09. The amount of
compensation or reimbursement provided for shall be accounted for on a Mortgage
Loan-by-Mortgage Loan basis.

     Additional servicing compensation in the form of assumption fees,
prepayment fees and late payment charges shall be retained by the Servicer, to
the extent permitted by applicable law. The

                                       77

<PAGE>

Servicer shall be required to pay all expenses incurred by it in connection with
its servicing activities hereunder (including the fees, expenses and indemnities
of the Trustee and any Sub-Servicer) and shall not be entitled to reimbursement
therefor except as specifically provided in Sections 5.09 and 5.21.

     Section 5.24 1934 Act Reports.

     (a) As set forth on Schedule X hereto, for so long as the Trust is subject
to the Exchange Act reporting requirements, no later than the end of business on
the 2nd Business Day after the occurrence of an event requiring disclosure on
Form 8-K (a "reportable event") (i) the Depositor, the Seller, the Trustee and
the Paying Agent shall notify the Servicer of any item reportable on a Form 8-K
of which each such party has knowledge (unless such item is specific to the
Servicer, in which case the Servicer will be deemed to have notice) and (ii)
shall deliver to the Servicer at least two Business Days prior to the filing
deadline for such Form 8-K, all information, data, and exhibits (unless such
information, data, and exhibits are specific to the Servicer) required to be
provided or filed with such Form 8-K. After preparing the Form 8-K on behalf of
the Depositor, the Servicer shall execute and promptly file such Form 8-K.

     (b) For so long as the Trust is subject to the Exchange Act, within 15 days
after each Distribution Date, the Servicer shall, on behalf of the Trust and in
accordance with industry standards, file with the Commission via the Electronic
Data Gathering and Retrieval System (EDGAR), a Form 10-D with (1) a copy of the
report to the Certificateholders for such Distribution Date as an exhibit
thereto and (2) any other information known to the Servicer or provided to the
Servicer to be included at its discretion in Form 10-D ("Additional Form 10-D
Disclosure") as set forth in the next paragraph.

     (c) For so long as the Trust is subject to the Exchange Act, as set forth
in Schedule Y hereto, within 5 calendar days after the related Distribution Date
(i) the parties hereto, as applicable, will be required to provide to the
Servicer, to the extent known to such party, any Additional Form 10-D Disclosure
(including any breaches of pool asset representations and warranties or
transaction covenants of which the party has written notice and which has not
been included on the monthly distribution report for the period), if applicable,
and (ii) the Servicer, to the extent it deems necessary, shall incorporate such
Additional Form 10-D Disclosure into the Form 10-D and shall file such Form 10-D
by the 8th calendar day after the Distribution Date.

     (d) For so long as the Trust is subject to the Exchange Act, prior to the
90th calendar day after the end of the fiscal year for the trust, the Servicer
shall, on behalf of the Trust and in accordance with industry standards, prepare
and file with the Commission via EDGAR a Form 10 -K with respect to the Trust
Fund. Such Form 10-K shall include the following items: (i) an annual compliance
statement for the Servicer and each Subservicer, as described in Section 5.25 of
the Agreement, (ii)(A) the annual reports on assessment of compliance with
servicing criteria for the Paying Agent, each Servicer, Subservicer and
Subcontractor (unless the Servicer has determined that such compliance statement
is not required by Regulation AB), as described in Section 5.25 of the
Agreement, and (B) if any Reporting Servicer's report on assessment of
compliance with servicing criteria described in Section 5.25 identifies any
material instance of noncompliance, disclosure identifying such instance of
noncompliance, or if any report on assessment of compliance with servicing
criteria described in Section 5.25 of the Agreement is not included as an
exhibit to such Form 10-K, disclosure that such report is not included and an
explanation why such report is not included, (iii)(A) the registered public
accounting firm attestation report for the Paying Agent, the Servicer and each
Subservicer, as described in Section 5.26 of the Agreement, and (B) if any
registered public accounting firm attestation report described in the Section
5.26 of the Agreement identifies any material instance of noncompliance,
disclosure identifying such instance of noncompliance, or if any such registered
public accounting firm attestation report is not included as an exhibit to such
Form 10-K, disclosure that such report is not included and an explanation why
such report is not included, and (iv) a Sarbanes-Oxley Certification in the form
attached hereto as

                                       78

<PAGE>

Exhibit S, executed by the senior officer in charge of securitizations of the
Servicer. Any disclosure or information in addition to (i) through (iv) above
that is required to be included on Form 10-K ("Additional Form 10-K Disclosure")
shall be determined and prepared by and at the direction of the Servicer
pursuant to the following paragraph.

     (e) As set forth in Schedule Z hereto, no later than March 12 of each year
that the Trust is subject to the Exchange Act reporting requirements, commencing
in 2007, (i) the parties identified on Schedule Z shall be required to provide
to the Depositor and the Servicer, to the extent known, any Additional Form 10-K
Disclosure, if applicable, and (ii) the Servicer, to the extent it deems
necessary, shall incorporate such Additional Form 10-K Disclosure into the Form
10-K and shall file such Form 10-K by the 85th calendar day after the end of the
fiscal year for the Trust.

     (f) Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") which shall be in the form attached hereto as Exhibit S. The
Depositor will cause its senior officer in charge of securitization to execute
the Sarbanes-Oxley Certification required pursuant to Rule 13a-14 under the
Securities Exchange Act of 1934, as amended, by March 15 of each year in which
the Trust is subject to the reporting requirements of the Exchange Act. In
connection therewith, the Paying Agent shall sign a certification (in the form
attached hereto as Exhibit O) for the benefit of the Servicer and its officers,
directors and affiliates regarding certain aspects of the Form 10-K
Certification.

     (g) Following the first date legally permissible under applicable
regulations and interpretations of the Commission, the Servicer shall, on behalf
of the Trust and in accordance with industry standards, file with the Commission
via EDGAR a Form 15 Suspension Notification with respect to the Trust Fund, if
applicable.

     (h) The Servicer shall have no responsibility to file any items with the
Commission other than those specified in this section and the Servicer shall
execute any and all form 8-Ks and 10-Ds required hereunder. The Depositor shall
execute each form 10-K.

     (i) If the Commission issues additional interpretative guidance or
promulgates additional rules or regulations with respect to Regulation AB or
otherwise, or if other changes in applicable law occur, that would require the
reporting arrangements, or the allocation of responsibilities with respect
thereto, described in this Section 5.24, to be conducted differently than as
described, the Depositor, the Servicer, the Paying Agent and the Trustee shall
comply with reasonable requests made by CHF, the Servicer or the Depositor to
amend the provisions of this Section 5.24 in order to comply with such amended
reporting requirements and to deliver additional or different information as CHF
or the Depositor may determine in good faith is necessary to comply with the
provisions of Regulation AB, provided that such information is available to such
party without unreasonable effort or expense or is reimbursed by the requesting
party and within such timeframe as may be reasonably requested. Any such
supplementation or modification shall be made without the consent of the
Certificateholders, and may result in a change in the reports filed by the
Servicer on behalf of the Trust under the Exchange Act.

     (j) The Depositor, the Servicer, the Trustee and the Paying Agent agree to
use their good faith efforts to cooperate in complying with the requirements of
this Sections 5.24.

     Section 5.25 Annual Statement as to Compliance. Not later than (a) March 15
of each calendar year (other than the calendar year during which the Closing
Date occurs) or (b) with respect to any calendar year during which an annual
report on Form 10-K is not required to be filed pursuant to Section 5.24 on
behalf of the Trust, by April 15 of each calendar year (or if such day is not a
Business Day, the immediately succeeding Business Day), the Servicer shall
deliver to the Depositor, an Officers' Certificate in the form attached hereto
as Exhibit T stating, as to each signatory thereof, that (i) a review

                                       79

<PAGE>

of the activities of the Servicer during the preceding calendar year and of the
performance of the Servicer under this Agreement has been made under such
officer's supervision, and (ii) to the best of such officer's knowledge, based
on such review, the Servicer has fulfilled all its obligations under this
Agreement in all material respects throughout such year or a portion thereof,
or, if there has been a failure to fulfill any such obligation in any material
respect, specifying each such failure known to such officer and the nature and
status thereof. With respect to any Subservicer that meets the criteria of Item
1108(a)(2)(i) through (iii) of Regulation AB in the sole determination of the
Servicer, the Servicer shall request from such Subservicer, the Officer's
Certificate set forth in this Section 5.25 as and when required with respect to
such Subservicer.

     Section 5.26 Assessment of Compliance and Independent Public Accountants'
Attestation; Financial Statements.

     (a) Not later than (i) March 15 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 5.24 on behalf of the Trust, by April 15 of each
calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer, at its own expense, shall deliver to the Trustee
and the Depositor an officer's assessment of its compliance with the Servicing
Criteria during the preceding calendar year as required by Rules 13a-18 and
15d-18 of the Exchange Act and Item 1122 of Regulation AB (the "Assessment of
Compliance"), which addresses the items set forth in Exhibit R hereto.

     (b) Not later than (i) March 15 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 5.24 on behalf of the Trust, April 15 of each calendar
year (or if such day is not a Business Day, the immediately succeeding Business
Day), the Servicer, at its own expense, shall cause a nationally or regionally
recognized firm of independent registered public accountants (who may also
render other services to any Servicer, the Sellers or any affiliate thereof)
which is a member of the American Institute of Certified Public Accountants to
furnish a statement to the Trustee, the Paying Agent and the Depositor that
attests to and reports on the assessment of compliance provided by such Servicer
pursuant to Section 5.26(a) (the "Accountant's Attestation"). Such Accountant's
Attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
Regulation S-X under the Securities Act and the Exchange Act.

     (c) The Servicer shall request that any Subservicer and each Subcontractor
(to the extent determined by the Servicer to be required under Regulation AB)
not later than March 15 of each calendar year (other than the calendar year
during which the Closing Date occurs) with respect to any calendar year during
which the Trust's annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the
Commission, provide an Assessment of Compliance, which addresses the items set
forth in Exhibit R hereto. The Servicer shall request that any Subservicer
(other than the calendar year during which the Closing Date occurs) with respect
to any calendar year during which the Trust's annual report on Form 10-K is not
required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, by April 15 of each calendar year (or, in each
case, if such day is not a Business Day, the immediately succeeding Business
Day) provide an Assessment of Compliance, which addresses the items set forth in
Exhibit R hereto.

     (d) Not later than March 15 of each calendar year (other than the calendar
year during which the Closing Date occurs) with respect to any calendar year
during which the Trust's annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the
Commission, the Servicer shall request that each Subservicer and each
Subcontractor (to the extent determined by the Servicer to be required by
Regulation AB) provide an Accountant's Attestation by a

                                       80

<PAGE>

registered public accounting firm that attests to, and reports on, the
Assessment of Compliance pursuant to Section 5.26(c) above. Other than the
calendar year during which the Closing Date occurs, with respect to any calendar
year during which the Trust's annual report on Form 10-K is not required to be
filed in accordance with the Exchange Act and the rules and regulations of the
Commission, not later than April 15 of each calendar year (or, in each case, if
such day is not a Business Day, the immediately succeeding Business Day), the
Servicer shall request that each Subservicer provide an Accountant's Attestation
by a registered public accounting firm that attests to, and reports on, the
Assessment of Compliance pursuant to Section 5.26(c) above.

     (e) Not later than, with respect to any calendar year during which the
Trust's annual report on Form 10K is required to be filed in accordance with the
Exchange Act and the rules and regulations of the Commission, March 15 (or, in
each case, if such day is not a Business Day, the immediately preceding Business
Day), the Paying Agent shall deliver to the Depositor and the Servicer an
Assessment of Compliance with regard to the Servicing Criteria applicable to the
Paying Agent during the preceding calendar year, which addresses the items set
forth in Exhibit R hereto.

     (f) Not later than, with respect to any calendar year during which the
Trust's annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations of the Commission, March 15 (or,
in each case, if such day is not a Business Day, the immediately preceding
Business Day), the Paying Agent shall deliver to the Depositor and the Servicer
an Accountant's Attestation by a registered public accounting firm that attests
to, and reports on, the Assessment of Compliance pursuant to Section 5.26(e)
above.

     (g) Not later than, with respect to any calendar year during which the
Trust's annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations of the Commission, 15 calendar
days before the date on which the Trust's annual report on Form 10-K is required
to be filed in accordance with the Exchange Act and the rules and regulations of
the Commission (or, in each case, if such day is not a Business Day, the
immediately preceding Business Day), the Servicer shall request that each
custodian, including the Custodian, deliver to the Servicer an Assessment of
Compliance with regard to the Servicing Criteria applicable to such custodian
during the preceding calendar year, which addresses the items set forth in
Exhibit R hereto; provided, however, that where the Custodian and the Servicer
are both Chase, the provisions of this Section 5.26(g) may be satisfied by the
delivery of a single report containing the Assessment of Compliance of Chase.

     (h) Not later than March 12 (or, in each case, if such day is not a
Business Day, the immediately succeeding Business Day), of any calendar year
(other than the calendar year during which the Closing Date occurs) during which
the Trust's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission, the
Servicer shall request that each Custodian deliver to the Servicer an
Accountant's Attestation by a registered public accounting firm that attests to,
and reports on, the Assessment of Compliance pursuant to Section 5.26(g) above;
provided, however, that where the Custodian and the Servicer are both Chase, the
provisions of this Section 5.26(h) may be satisfied by the delivery of a single
report containing the Accountant's Attestation of Chase.

     (i) Each of the parties hereto acknowledges and agrees that the purpose of
this Section 5.26 is to facilitate compliance by the Seller, the Servicer and
the Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that the
parties' obligations hereunder will be supplemented and modified as necessary to
be consistent with any such amendments, interpretive advice or guidance,
convention or consensus among active participants in the asset-backed securities
markets, advice of counsel, or otherwise in respect of the requirements of
Regulation AB and the parties shall comply with reasonable requests made by the
Seller, the Servicer or

                                       81

<PAGE>

the Depositor for delivery of additional or different information as CHF or the
Depositor may determine in good faith is necessary to comply with the provisions
of Regulation AB, provided that such information is available to such party
without unreasonable effort or expense or is reimbursed by the requesting party
and within such timeframe as may be reasonably requested. Any such
supplementation or modification shall be made without the consent of the
Certificateholders, and may result in a change in the reports filed by the
Servicer on behalf of the Trust under the Exchange Act.

     Section 5.27 Access to Certain Documentation; Rights of the Depositor in
Respect of the Servicer. The Servicer shall provide access to the Trustee and
Certificateholders which are savings and loan associations, banks or insurance
companies or examiners of any federal or state banking or insurance regulatory
authority to the documentation regarding the Mortgage Loans if so required by
applicable regulations of any regulatory authority, such access to be afforded
subject to reimbursement for expenses without charge but only upon reasonable
request and during normal business hours at the offices of the Servicer
designated by it. The Depositor may, but is not obligated to, enforce the
obligations of the Servicer under this Agreement. The Depositor shall not assume
any responsibility or liability for any action or failure to take action by the
Servicer and is not obligated to supervise the performance of the Servicer under
this Agreement or otherwise.

     Section 5.28 REMIC-Related Covenants. For as long as the Trust Fund shall
exist, the Servicer, the Paying Agent and the Trustee shall act in accordance
herewith to assure continuing treatment of each REMIC created hereunder as a
REMIC. In particular:

     (a) The Servicer shall not create, or permit the creation of, any
"interests" in any REMIC created hereunder within the meaning of Section 860G(a)
of the Code other than the "regular interests" in each such REMIC designated as
such in Section 2.04(a) and the "residual interest" in each such REMIC
designated as such in Section 2.04(a);

     (b) As of all times as may be required by the Code, the Servicer will
ensure that substantially all of the assets of each REMIC created hereunder will
consist of "qualified mortgages" as defined in Section 860G(a)(3) of the Code
and "permitted investments" as defined in Section 860G(a)(5) of the Code. The
Paying Agent will maintain records that are sufficient to indicate the
compliance of each REMIC created hereunder with applicable requirements of the
Code (and applicable Proposed, Temporary or final Treasury Regulations) relating
to the assets held by such REMIC. Further, the Servicer shall not permit and the
Trustee shall not accept the transfer or substitution of any Mortgage Loan other
than pursuant to Section 3.03, 5.01 or 5.21 of this Agreement, and the Servicer
shall, in any case, not permit substitution unless the Servicer and the Trustee
have received an Opinion of Counsel, which will not be an expense of any REMIC
created hereunder, that such transfer or substitution would not adversely affect
the REMIC status of any REMIC created hereunder or would not otherwise be
prohibited by this Agreement;

     (c) The Servicer shall ensure that no REMIC created hereunder receives a
fee or other compensation for services and that no REMIC created hereunder
receives any income from assets other than "qualified mortgages" within the
meaning of Section 860G(a)(3) of the Code or "permitted investments" within the
meaning of Section 860G(a)(5) of the Code, and shall take whatever action it
deems necessary to avoid any material tax imposed by the Code on any REMIC
created hereunder;

     (d) None of the Depositor, the Servicer, the Paying Agent or the Trustee
shall sell or permit the sale of all or any portion of the Mortgage Loans or of
any Eligible Investment unless such sale is as a result of a repurchase of the
Mortgage Loans pursuant to this Agreement or the Trustee has received an Opinion
of Counsel, which will not be an expense of any REMIC created hereunder or the
Trustee, to the effect that such sale (i) is pursuant to a "qualified
liquidation" as defined in Section 860F(a)(4) of the

                                       82

<PAGE>

Code and as described in Section 11.01 hereof, or (ii) would not be treated as a
"prohibited transaction" within the meaning of Section 860F(a)(2) of the Code
that results in the realization of a material amount of gain or loss for federal
income tax purposes;

     (e) The Trustee shall not accept any contribution to any REMIC created
hereunder after the Startup Day without an Opinion of Counsel (which shall not
be an expense of the Trustee) that such contribution is included within the
exceptions provided in Section 860G(d)(2) of the Code and, therefore, will not
be subject to the tax imposed by Section 860G(d)(1) of the Code; and

     (f) Notwithstanding anything to the contrary in this Agreement, the
Servicer and the Trustee, at the direction of the Servicer, shall take any other
action or refuse to take any action otherwise required (including adjusting the
Purchase Price for any Mortgage Loan) where the Servicer deems such action or
inaction reasonably necessary to ensure the REMIC status of each REMIC created
hereunder under the Code and applicable regulations or to avoid the imposition
of any material tax liability on any REMIC created hereunder that will affect
amounts distributable to the Certificateholders.

     (g) In the event that any applicable federal, state or local tax, including
interest, penalties or assessments, additional amounts or additions to tax, is
imposed on any REMIC created hereunder, such tax shall be treated in the same
manner as a Realized Loss and shall be charged against amounts otherwise
distributable to the Holders of the Certificates, except as provided in the last
sentence of this Section 5.28 (g). The Trustee or, if a Paying Agent has been
appointed under Section 4.05, the Paying Agent shall withdraw from the
Collection Account sufficient funds to pay or provide for the payment of, and to
actually pay, such tax as is estimated to be legally owed by (but such
authorization shall not prevent the Trustee or, if a Paying Agent has been
appointed under Section 4.05, the Paying Agent from contesting, at the expense
of the Trust Fund (other than as a consequence of a breach of its obligations
under this Agreement), any such tax in appropriate proceedings, and withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings). The Trustee or, if a Paying Agent has been appointed under Section
4.05, the Paying Agent is hereby authorized to and shall segregate, into a
separate non-interest bearing account, the net income from any "prohibited
transaction" under Code Section 860F(a), the amount of any taxable contribution
to any REMIC created hereunder after the Startup Day that is subject to tax
under Code Section 860G(d), and 35% of any estimated "net income from
foreclosure property" under Section 860G(c) and use such income or amount, to
the extent necessary, to pay such tax. To the extent that any such tax is paid
to the Internal Revenue Service or applicable state or local tax authorities,
the Trustee or a Paying Agent has been appointed under Section 4.05, the Paying
Agent shall retain an equal amount from future amounts otherwise distributable
to the Holder of the Class A-R Certificate and shall distribute such retained
amounts to the Holders of the other Classes of Certificates, to the extent they
remain outstanding, until they are fully reimbursed for any amount of such taxes
previously charged to the then Holder of the Class A-R Certificate. Neither the
Trustee nor the Servicer shall be responsible for any taxes imposed on any REMIC
created hereunder except to the extent such taxes arise as a consequence of a
breach of their respective obligations under this Agreement. The Trustee shall
not be liable hereunder for any taxes imposed on any REMIC hereunder as the
result of any direction taken hereunder from the Servicer or any action of the
Servicer or Paying Agent hereunder.

                               [END OF ARTICLE V]

                                   ARTICLE VI

                       PAYMENTS TO THE CERTIFICATEHOLDERS

     Section 6.01 Distributions.

                                       83

<PAGE>

(I) Prior to the Credit Support Depletion Date, the Available Distribution
Amount shall be applied as follows:

     (a) On each Distribution Date, the Paying Agent shall apply an amount equal
to the Available Distribution Amount in the following order of priority:

          (i) (A) solely from amounts received with respect to Pool 1, to the
     Class 1-A Certificateholders, all distributable amounts up to the sum of
     (x) the Class 1-A Interest Accrual Amount and (y) the Class 1-A Interest
     Shortfall, distributed pursuant to (b)(i)(A) through (D), (M) and (N)
     below, (B) solely from amounts received with respect to Pool 2, to the
     Class 2-A Certificateholders, all distributable amounts up to the sum of
     (x) the Class 2-A Interest Accrual Amount and (y) the Class 2-A Interest
     Shortfall, distributed pursuant to (b)(i)(E) through (H) and (O) below, (C)
     solely from amounts received with respect to Pool 3, to the Class 3-A
     Certificateholders, all distributable amounts up to the sum of (x) the
     Class 3-A Interest Accrual Amount and (y) the Class 3-A Interest Shortfall,
     distributed pursuant to (b)(i)(I) and (J) below and (D) solely from amounts
     received with respect to Pool 4, to the Class 4-A Certificateholders, all
     distributable amounts up to the sum of (x) the Class 4-A Interest Accrual
     Amount and (y) the Class 4-A Interest Shortfall, distributed pursuant to
     (b)(i)(K) and (L) below ;

          (ii) the balance, if any, of the Available Distribution Amount shall
     be distributed (A) solely from amounts received with respect to Pool 1 pro
     rata (in accordance with the maximum amounts distributable in accordance
     with this clause (A)) to the Class 1-A Certificateholders in the amounts
     distributable pursuant to (b)(ii)(A) below, up to the Class 1-A Optimal
     Principal Amount, (B) solely from amounts received with respect to Pool 2
     pro rata (in accordance with the maximum amounts distributable in
     accordance with this clause (B)) to the Class 2-A Certificateholders in the
     amounts distributable pursuant to (b)(ii)(B) below, up to the Class 2-A
     Optimal Principal Amount, (C) solely from amounts received with respect to
     Pool 3 pro rata (in accordance with the maximum amounts distributable in
     accordance with this clause (C)) to the Class 3-A Certificateholders in the
     amounts distributable pursuant to (b)(ii)(C) below, up to the Class 3-A
     Optimal Principal Amount and (D) solely from amounts received with respect
     to Pool 4 pro rata (in accordance with the maximum amounts distributable in
     accordance with this clause (D)) to the Class 4-A Certificateholders in the
     amounts distributable pursuant to (b)(ii)(D) below, up to the Class 4-A
     Optimal Principal Amount;

          (iii) subject to subsection (b) below, to the Class M
     Certificateholders, the balance, if any, of the Available Distribution
     Amount after making the distributions provided for in paragraphs (i) and
     (ii) above, in accordance with, and up to the amount calculated pursuant
     to, Section 6.01(I)(c) below;

          (iv) subject to subsection (b) below, to the Class B
     Certificateholders, the balance, if any, of the Available Distribution
     Amount after making the distributions provided for in paragraphs (i)
     through (iii) above, in accordance with, and up to the amounts calculated
     pursuant to, Section 6.01(I)(d) below; and

          (v) to the Class A-R Certificateholders the balance, if any, of the
     Available Distribution Amount remaining after the distributions provided
     for in paragraphs (i) through (iv) above.

     (b) Amounts payable to the Class A Certificateholders on any Distribution
Date shall be distributed as follows:

                                       84

<PAGE>

          (i) to the extent the amount available for distribution pursuant to
     paragraph (a)(i) above is sufficient:

               (A) to the Class 1-A1 Certificateholders, (1) the Class 1-A1
          Interest Accrual Amount plus (2) the Class 1-A1 Shortfall from the
          preceding Distribution Date;

               (B) to the Class 1-A2 Certificateholders, (1) the Class 1-A2
          Interest Accrual Amount plus (2) the Class 1-A2 Shortfall from the
          preceding Distribution Date;

               (C) to the Class 1-A3 Certificateholders, (1) the Class 1-A3
          Interest Accrual Amount plus (2) the Class 1-A3 Shortfall from the
          preceding Distribution Date;

               (D) to the Class 1-A4 Certificateholders, (1) the Class 1-A4
          Interest Accrual Amount plus (2) the Class 1-A4 Shortfall from the
          preceding Distribution Date;

               (E) to the Class 2-A1 Certificateholders, (1) the Class 2-A1
          Interest Accrual Amount plus (2) the Class 2-A1 Shortfall from the
          preceding Distribution Date;

               (F) to the Class 2-A2 Certificateholders, (1) the Class 2-A2
          Interest Accrual Amount plus (2) the Class 2-A2 Shortfall from the
          preceding Distribution Date;

               (G) to the Class 2-A3 Certificateholders, (1) the Class 2-A3
          Interest Accrual Amount plus (2) the Class 2-A3 Shortfall from the
          preceding Distribution Date;

               (H) to the Class 2-A4 Certificateholders, (1) the Class 2-A4
          Interest Accrual Amount plus (2) the Class 2-A4 Shortfall from the
          preceding Distribution Date;

               (I) to the Class 3-A1 Certificateholders, (1) the Class 3-A1
          Interest Accrual Amount plus (2) the Class 3-A1 Shortfall from the
          preceding Distribution Date;

               (J) to the Class 3-A2 Certificateholders, (1) the Class 3-A2
          Interest Accrual Amount plus (2) the Class 3-A2 Shortfall from the
          preceding Distribution Date;

               (K) to the Class 4-A1 Certificateholders, (1) the Class 4-A1
          Interest Accrual Amount plus (2) the Class 4-A1 Shortfall from the
          preceding Distribution Date;

               (L) to the Class 4-A2 Certificateholders, (1) the Class 4-A2
          Interest Accrual Amount plus (2) the Class 4-A2 Shortfall from the
          preceding Distribution Date;

               (M) to the Class A-R Certificateholders, (1) the Class A-R
          Interest Accrual Amount plus (2) the Class A-R Shortfall from the
          preceding Distribution Date;

               (N) to the Class 1-AX Certificateholders, (1) the Class 1-AX
          Interest Accrual Amount plus (2) the Class 1-AX Shortfall from the
          preceding Distribution Date;

               (O) to the Class 2-AX Certificateholders, (1) the Class 2-AX
          Interest Accrual Amount plus (2) the Class 2-AX Shortfall from the
          preceding Distribution Date;

          (ii) concurrently, (A) to the Class 1-A Certificateholders, solely
     from the portion of the Available Distribution Amount related to amounts
     received with respect to Pool 1 up to the Class 1-A Optimal Principal
     Amount, allocated among the Class 1-A Certificates in accordance with the
     Class 1-A Principal Payment Rules, (B) to the Class 2-A Certificateholders,
     solely from

                                       85

<PAGE>

     the portion of the Available Distribution Amount related to amounts
     received with respect to Pool 2 up to the Class 2-A Optimal Principal
     Amount, allocated among the Class 2-A Certificates in accordance with the
     Class 2-A Principal Payment Rules, (C) to the Class 3-A Certificateholders,
     solely from the portion of the Available Distribution Amount related to
     amounts received with respect to Pool 3 up to the Class 3-A Optimal
     Principal Amount, allocated among the Class 3-A Certificates in accordance
     with the Class 3-A Principal Payment Rules and (D) to the Class 4-A
     Certificateholders, solely from the portion of the Available Distribution
     Amount related to amounts received with respect to Pool 4 up to the Class
     4-A Optimal Principal Amount, allocated among the Class 4-A Certificates in
     accordance with the Class 4-A Principal Payment Rules;

          (iii) to the extent that the portion of the Available Distribution
     Amount related to amounts available from Pool 1 remaining after giving
     effect to the distributions in (b)(i) above is insufficient to distribute
     in full to the Class 1-A Certificateholders amounts described in (b)(ii)(A)
     above (such shortfall, the "Class 1-A Deficiency Amount") and the portion
     of the Available Distribution Amount related to amounts available from Pool
     2 remaining after giving effect to the distributions in (b)(i) above
     exceeds the amount required to distribute in full to the Class 2-A
     Certificateholders the amounts described in (b)(ii)(B) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 3 remaining after giving effect to the distributions in (b)(i)
     above exceeds the amount required to distribute in full to the Class 3-A
     Certificateholders the amounts described in (b)(ii)(C) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 4 remaining after giving effect to the distributions in (b)(i)
     above exceeds the amount required to distribute in full to the Class 4-A
     Certificateholders the amounts described in (b)(ii)(D) above, such excess
     shall be distributed in reduction of the Class 1-A Deficiency Amount;

          (iv) to the extent that the portion of the Available Distribution
     Amount related to amounts available from Pool 2 remaining after giving
     effect to the distributions in (b)(i) above is insufficient to distribute
     in full to the Class 2-A Certificateholders amounts described in (b)(ii)(B)
     above (such shortfall, the "Class 2-A Deficiency Amount") and the portion
     of the Available Distribution Amount related to amounts available from Pool
     1 remaining after giving effect to the distributions in (b)(i) above
     exceeds the amount required to distribute in full to the Class 1-A
     Certificateholders the amounts described in (b)(ii)(A) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 3 remaining after giving effect to the distributions in (b)(i)
     above exceeds the amount required to distribute in full to the Class 3-A
     Certificateholders the amounts described in (b)(ii)(C) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 4 remaining after giving effect to the distributions in (b)(i)
     above exceeds the amount required to distribute in full to the Class 4-A
     Certificateholders the amounts described in (b)(ii)(D) above, such excess
     shall be distributed in reduction of the Class 2-A Deficiency Amount;

          (v) to the extent that the portion of the Available Distribution
     Amount related to amounts available from Pool 3 remaining after giving
     effect to the distributions in (b)(i) above is insufficient to distribute
     in full to the Class 3-A Certificateholders amounts described in (b)(ii)(C)
     above (such shortfall, the "Class 3-A Deficiency Amount") and the portion
     of the Available Distribution Amount related to amounts available from Pool
     1 remaining after giving effect to the distributions in (b)(i) above
     exceeds the amount required to distribute in full to the Class 1-A
     Certificateholders the amounts described in (b)(ii)(A) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 2 remaining after giving effect to the distributions in (b)(i)
     above exceeds the amount required to distribute in full to the Class 2-A
     Certificateholders the amounts described in (b)(ii)(B) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 4 remaining after giving effect to the

                                       86

<PAGE>

     distributions in (b)(i) above exceeds the amount required to distribute in
     full to the Class 4-A Certificateholders the amounts described in
     (b)(ii)(D) above, such excess shall be distributed in reduction of the
     Class 3-A Deficiency Amount;

          (vi) to the extent that the portion of the Available Distribution
     Amount related to amounts available from Pool 4 remaining after giving
     effect to the distributions in (b)(i) above is insufficient to distribute
     in full to the Class 4-A Certificateholders amounts described in (b)(ii)(D)
     above (such shortfall, the "Class 4-A Deficiency Amount") and the portion
     of the Available Distribution Amount related to amounts available from Pool
     1 remaining after giving effect to the distributions in (b)(i) above
     exceeds the amount required to distribute in full to the Class 1-A
     Certificateholders the amounts described in (b)(ii)(A) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 2 remaining after giving effect to the distributions in (b)(i)
     above exceeds the amount required to distribute in full to the Class 2-A
     Certificateholders the amounts described in (b)(ii)(B) above, or the
     portion of the Available Distribution Amount related to amounts available
     from Pool 3 remaining after giving effect to the distributions in (b)(i)
     above exceeds the amount required to distribute in full to the Class 3-A
     Certificateholders the amounts described in (b)(ii)(C) above, such excess
     shall be distributed in reduction of the Class 4-A Deficiency Amount;

          (vii) If the Available Distribution Amount is insufficient to make the
     distributions set forth in (b)(i) above, the Paying Agent shall distribute
     the Available Distribution Amount (A) solely from amounts received with
     respect to Pool 1, to the Class 1-A Certificateholders pro rata in
     accordance with the amounts otherwise distributable to them pursuant to
     (b)(i)(A) through (D), (M) and (N) above, (B) solely from amounts received
     with respect to Pool 2, to the Class 2-A Certificateholders pro rata in
     accordance with the amounts otherwise distributable to them pursuant to
     (b)(i)(E) through (H) and (O) above, (C) solely from amounts received with
     respect to Pool 3, to the Class 3-A Certificateholders pro rata in
     accordance with the amounts otherwise distributable to them pursuant to
     (b)(i)(I) and (J) above and (D) solely from amounts received with respect
     to Pool 4, to the Class 4-A Certificateholders pro rata in accordance with
     the amounts otherwise distributable to them pursuant to (b)(i)(K) and (L)
     above;

          (viii) If amounts available pursuant to paragraphs (iii) through (vi)
     to reduce the Class 1-A Deficiency Amount, the Class 2-A Deficiency Amount,
     the Class 3-A Deficiency Amount or the Class 4-A Deficiency Amount to zero
     is insufficient such available amounts will be applied to reduce such
     deficiencies pro rata based upon the amount of such Deficiency Amounts. If
     such available amounts exceed the amount required to reduce each Deficiency
     Amount to zero, amounts shall be applied from each Pool pro rata based up
     on the applicable amount of excess available pursuant to paragraphs (iii)
     through (vi); and

          (ix) In addition to the foregoing distributions, the Class 1-A
     Certificates, Class 2-A Certificates, Class 3-A Certificates or Class 4-A
     Certificates will receive additional principal distributions on any
     Distribution Date prior to the Credit Support Depletion Date under the
     circumstances specified in (A) and (B) below:

               (A) On any Distribution Date on or after the date on which the
          aggregate Outstanding Certificate Principal Balance of the Class 1-A
          Certificates, the aggregate Outstanding Certificate Principal Balance
          of the Class 2-A Certificates, the aggregate Outstanding Certificate
          Principal Balance of the Class 3-A Certificates or the aggregate
          Outstanding Certificate Principal Balance of the Class 4-A
          Certificates has been reduced to zero, all principal (in excess of
          that needed to reduce the aggregate Outstanding Certificate Principal
          Balance of the Class 1-A Certificates, the aggregate Outstanding

                                       87

<PAGE>

          Certificate Principal Balance of the Class 2-A Certificates, the
          aggregate Outstanding Certificate Principal Balance of the Class 3-A
          Certificates to zero or the aggregate Outstanding Certificate
          Principal Balance of the Class 4-A Certificates to zero) received on
          the Mortgage Loans in the Pool relating to such Class A Certificates
          that are no longer outstanding will be distributed as principal to the
          remaining Class A Certificates related to each other Pool, pro rata,
          based upon their respective Outstanding Certificate Principal
          Balances, in accordance with Section 6.01(I)(b)(ii)(A),
          6.01(I)(b)(ii)(B), 6.01(I)(b)(ii)(C) or 6.01(I)(b)(ii)(D), as
          applicable, in reduction of the Outstanding Certificate Principal
          Balances thereof, provided that on such Distribution Date either (a)
          the Aggregate Subordinated Percentage for such Distribution Date is
          less than 200% of the initial Aggregate Subordinated Percentage, or
          (b) the average outstanding Principal Balance of the Mortgage Loans in
          any Pool delinquent 60 days or more over the prior six months, as a
          percentage of the corresponding Pool 1 Subordinated Amount, Pool 2
          Subordinated Amount, Pool 3 Subordinated Amount or Pool 4 Subordinated
          Amount, is greater than or equal to 50%.

               (B) If on any Distribution Date on which the aggregate
          Outstanding Certificate Principal Balance of the Class 1-A
          Certificates, Class 2-A Certificates, Class 3-A Certificates or Class
          4-A Certificates would be greater than the related outstanding
          principal balance of the Mortgage Loans in the related Pool as of such
          date (giving effect to any advances but prior to giving effect to any
          principal prepayments received with respect to such Mortgage Loans
          that have not been passed through to Certificateholders) (the
          "Undercollateralized Pool"), after giving effect to distributions to
          be made on such Distribution Date, the portion of the Available
          Distribution Amount in respect of principal on the Mortgage Loans in
          the other Pools (each, an "Overcollateralized Pool") otherwise
          allocable to the Subordinated Certificates will be distributed to the
          Classes of Class A Certificates relating to the Undercollateralized
          Pool (in accordance with the priorities set forth herein), in
          reduction of the principal balances thereof, until the aggregate
          principal balance of the Class A Certificates included in the
          Undercollateralized Pool is equal to the outstanding principal balance
          of the Mortgage Loans in the related Pool as of such date (giving
          effect to any Advances but prior to giving effect to any principal
          prepayments received with respect to such Mortgage Loans that have not
          been passed through to the Certificateholders). Moreover, the
          Available Distribution Amount with respect to any Overcollateralized
          Pool will be further reduced (after distributions of interest to the
          Class A Certificates included in the Overcollateralized Pool) in an
          amount equal to one month's interest on the amount by which the
          Undercollateralized Pool is undercollateralized at the per annum rate
          equal to the Pool 1 Net WAC (if Pool 1 is an Undercollateralized
          Pool), the Pool 2 Net WAC (if Pool 2 is an Undercollateralized Pool),
          the Pool 3 Net WAC (if Pool 3 is an Undercollateralized Pool) and Pool
          4 Net WAC (if Pool 4 is an Undercollateralized Pool), plus any
          shortfall of such amounts from prior Distribution Dates; provided,
          however, that in no event will the Available Distribution Amount with
          respect to any Overcollateralized Pool on any Distribution Date be
          reduced by more than the sum of (i) the overcollateralized amount with
          respect to the Overcollateralized Pool and (ii) interest thereon at
          the weighted average Certificate Rate on the related Certificate Pool.
          Such amounts will be distributed to the applicable Classes of
          Certificates in the priority of interest payable on such Distribution
          Date. If two or more Pools are Undercollateralized Pools then amounts
          will be distributed to the Undercollateralized Pools pro rata based
          upon the amounts of under-collateralization with respect to each
          Undercollateralized Pool. If two or more Pools are Overcollateralized
          Pools then any amounts distributed to

                                       88

<PAGE>

          the Undercollateralized Pools will be allocated from each
          Overcollateralized Pool pro rata based upon amounts available with
          respect to each Overcollateralized Pool.

     (c) Amounts payable on any Distribution Date to the Class M
Certificateholders shall be distributed up to an amount equal to (A) the Class M
Interest Accrual Amount plus (B) the Class M Shortfall from the preceding
Distribution Date plus (C) the portion of the Subordinated Optimal Principal
Amount allocable (pursuant to Section 6.01(I)(e)) to the Class M Certificates
plus (D) any Carry-over Subordinated Principal Amounts with respect to the Class
M Certificates.

     (d) Amounts payable on any Distribution Date to the Class B
Certificateholders pursuant to Section 6.01(I)(a)(iv) shall be distributed in
the following priority:

          (1) first, to the Class B-1 Certificateholders, up to an amount equal
to (A) the Class B-1 Interest Accrual Amount plus (B) the Class B-1 Shortfall
from the preceding Distribution Date plus (C) the pro rata portion, if any, of
the Subordinated Optimal Principal Amount allocable to the Class B-1
Certificates in accordance with Section 6.01(I)(e) plus (D) any Carry-over
Subordinated Principal Amounts with respect to the Class B-1 Certificates plus
(E) any portion of the Subordinated Optimal Principal Amount allocated to the
Class M Certificates in excess of the Outstanding Certificate Principal Balance
of such Class;

          (2) second, to the Class B-2 Certificateholders, up to an amount equal
to (A) the Class B-2 Interest Accrual Amount plus (B) the Class B-2 Shortfall
from the preceding Distribution Date plus (C) the pro rata portion, if any, of
the Subordinated Optimal Principal Amount allocable to the Class B-2
Certificates in accordance with Section 6.01(I)(e) plus (D) any Carry-over
Subordinated Principal Amounts with respect to the Class B-2 Certificates plus
(E) any portion of the Subordinated Optimal Principal Amount allocated to the
Class B-1 Certificates in excess of the Outstanding Certificate Principal
Balance of such Class;

          (3) third, to the Class B-3 Certificateholders, up to an amount equal
to (A) the Class B-3 Interest Accrual Amount plus (B) the Class B-3 Shortfall
from the preceding Distribution Date plus (C) the pro rata portion, if any, of
the Subordinated Optimal Principal Amount allocable to the Class B-3
Certificates in accordance with Section 6.01(I)(e) plus (D) any Carry-over
Subordinated Principal Amounts with respect to the Class B-3 Certificates plus
(E) any portion of the Subordinated Optimal Principal Amount allocated to the
Class B-2 Certificates in excess of the Outstanding Certificate Principal
Balance of such Class;

          (4) fourth, to the Class B-4 Certificateholders, up to an amount equal
to (A) the Class B-4 Interest Accrual Amount plus (B) the Class B-4 Shortfall
from the preceding Distribution Date plus (C) the pro rata portion, if any, of
the Subordinated Optimal Principal Amount allocable to the Class B-4
Certificates in accordance with Section 6.01(I)(e) plus (D) any Carry-over
Subordinated Principal Amounts with respect to the Class B-4 Certificates plus
(E) any portion of the Subordinated Optimal Principal Amount allocated to the
Class B-3 Certificates in excess of the Outstanding Certificate Principal
Balance of such Class; and

          (5) fifth, to the Class B-5 Certificateholders, up to an amount equal
to (A) the Class B-5 Interest Accrual Amount plus (B) the Class B-5 Shortfall
from the preceding Distribution Date plus (C) the pro rata portion, if any, of
the Subordinated Optimal Principal Amount allocable to the Class B-5
Certificates in accordance with Section 6.01(I)(e) plus (D) any Carry-over
Subordinated Principal Amounts with respect to the Class B-5 Certificates plus
(E) any portion of the Subordinated Optimal Principal Amount allocated to the
Class B-4 Certificates in excess of the Outstanding Certificate Principal
Balance of such Class.

                                       89

<PAGE>

     (e) On each Distribution Date, the Subordinated Optimal Principal Amount
shall be allocated among the Classes of Subordinated Certificates entitled,
pursuant to the next succeeding sentence, to an allocation of principal on such
Distribution Date, pro rata based upon the Outstanding Certificate Principal
Balances of all such Classes so entitled. With respect to the Subordinated
Certificates, on each Distribution Date, principal shall be distributable to (1)
any Class of Subordinated Certificates which has current Credit Support (before
giving effect to any distribution of principal and any Realized Losses allocable
on such Distribution Date) greater than or equal to the Original Credit Support
for such Class; (2) the Class having the lowest numerical class designation of
any outstanding Class of Subordinated Certificates which does not meet the
criteria in (1) above; and (3) the Class B-5 Certificates if all other
outstanding Classes of Subordinated Certificates meet the criteria in (1) above
or if no other Class of Subordinated Certificates is outstanding; provided,
however, that no Class of Subordinated Certificates shall receive any
distributions of principal if any Class of Subordinated Certificates having a
lower numerical class designation than such Class fails to meet the criteria in
(1) above. For purposes of this paragraph, the Class M Certificates shall be
deemed to have a lower numerical class designation than each Class of Class B
Certificates.

(II) On or after the Credit Support Depletion Date, the Available Distribution
Amount shall be applied, first, in respect of interest in accordance with
Section 6.01(I)(b)(i) and, second, in respect of principal to each Class of the
Class A Certificates, pro rata, based upon their respective outstanding
balances.

(III) Based upon the information received from the Servicer, as provided in
Section 6.02, the Paying Agent shall make all calculations necessary to make the
distributions described in this Section 6.01. All distributions made to
Certificateholders of any Class on each Distribution Date will be made to the
Certificateholders of the respective Class of record on the next preceding
Record Date, except that the final distribution with respect to each Class shall
be made as provided in the forms of Certificates. All distributions made to
Certificateholders shall be based on the Percentage Interest of the Class
represented by their respective Certificates, and shall be made either by
transfer in immediately available funds to the account of such Holder at a bank
or other financial or depository institution having appropriate facilities
therefor, if such Holder has so notified the Trustee or, if a Paying Agent has
been appointed under Section 4.05, the Paying Agent, in writing at least 10
Business Days prior to the first Distribution Date for which distribution by
wire transfer is to be made and such Holder's Certificates of such Class in the
aggregate evidence an original denomination of not less than $5,000,000 or such
Holder holds a 100% Percentage Interest of such Class or, if not, by check
mailed to the address of the Person entitled thereto as it appears on the
Certificate Register, except that the final distribution in retirement of the
Certificates will be made only upon presentation and surrender of the
Certificates at the office specified in the final Distribution Notice. If on any
Determination Date, the Servicer determines that there are no Mortgage Loans
outstanding and no other funds or assets in the Trust Fund other than the funds
in the Certificate Account, the Trustee or if a Paying Agent has been appointed
under Section 4.05, the Paying Agent shall promptly send the final distribution
notice to each Certificateholder specifying the manner in which the final
distribution will be made.

     Section 6.02 Statements to the Certificateholders.

     (a) Not later than the earlier of (i) three Business Days after the
Determination Date and (ii) the second Business Day prior to each Distribution
Date, the Servicer shall send to the Paying Agent and the Trustee (in such
format as may be mutually agreed) the relevant information for purposes of this
Section 6.02. Not later than each Distribution Date, the Paying Agent shall make
available on its website located at www.jpmorgan.com/sfr or upon request shall
send to any Certificateholder, the Depositor, the Trustee, the Servicer, any
co-trustee, and each Rating Agency a statement setting forth the following

                                       90

<PAGE>

information, after giving effect to the distributions to be made by the Paying
Agent pursuant to Section 6.01 on or as of such Distribution Date:

          (i) with respect to each Class of Certificates the amount of such
     distribution to Holders of such Class allocable to principal;

          (ii) with respect to each Class of Certificates the amount of such
     distribution to Holders of such Class allocable to interest;

          (iii) the aggregate amount of any Principal Prepayments, Repurchase
     Proceeds or other unscheduled recoveries included in the distributions to
     Certificateholders, in each case both in the aggregate and by Pool;

          (iv) the aggregate amount of any Advances by the Servicer pursuant to
     Section 6.03, both in the aggregate and by Pool;

          (v) the number of Outstanding Mortgage Loans and the Mortgage Pool
     Principal Balance as of the close of business as of the end of the related
     Principal Prepayment Period;

          (vi) the related amount of the Servicing Fees (as adjusted pursuant to
     Section 6.05) retained or withdrawn from the Collection Account by the
     Servicer;

          (vii) the number and aggregate principal amounts of Mortgage Loans (A)
     delinquent (calculated using the Mortgage Bankers Association (MBA) method)
     (1) one Monthly Payment, (2) two Monthly Payments and (3) three or more
     Monthly Payments, (B) in foreclosure and (C) in bankruptcy, in each case,
     as of the end of the close of business on the first day of the calendar
     month of such Distribution Date;

          (viii) the number and the principal balance of Mortgage Loans with
     respect to any real estate acquired through foreclosure or grant of a deed
     in lieu of foreclosure;

          (ix) the aggregate amount of all Advances recovered during the related
     Due Period;

          (x) with respect to the following Distribution Date, the Class A
     Percentage, the Class M Percentage, the Class B Percentage, the Class A
     Principal Balance, the Class M Principal Balance, the Class B Principal
     Balance, the Class A Prepayment Percentage, the Class 1-A Percentage, the
     Class 2-A Percentage, the Class 3-A Percentage, the Class 4-A Percentage,
     the Class 1-A Prepayment Percentage, the Class 2-A Prepayment Percentage,
     the Class 3-A Prepayment Percentage, the Class 4-A Prepayment Percentage,
     the Class 1-A Principal Balance, the Class 2-A Principal Balance, the Class
     3-A Principal Balance, the Class 4-A Principal Balance and the level of
     Credit Support, if any, with respect to each Class of Subordinated
     Certificates;

          (xi) the aggregate amount of Realized Losses during the related Due
     Period and the aggregate amount of Realized Losses since the Cut-off Date;

          (xii) the allocation to each Class of Certificate of any Realized
     Losses during the related Due Period;

                                       91

<PAGE>

          (xiii) the Outstanding Certificate Principal Balance of each Class of
     Certificates immediately prior to and after giving effect to the
     distributions to each Class on such Distribution Date;

          (xiv) with respect to each Class of Certificates, any amounts of
     Compensating Interest Shortfalls and Relief Act Reductions on such
     Distribution Date;

          (xv) the number of Mortgage Loans with respect to which a reduction in
     the Mortgage Rate has occurred pursuant to the Relief Act, as well as the
     amount of interest not required to be paid with respect to any such
     Mortgage Loans during the related Due Period as a result of such
     reductions; both in the aggregate and for each Class of Certificates;

          (xvi) updated pool composition information such as weighted average
     coupon, weighted average life, weighted average remaining term, pool
     factors and prepayment amounts;

          (xvii) if applicable, any material changes to methodology regarding
     calculations of delinquencies and charge-offs;

          (xviii) any material modifications, extensions or waivers to pool
     asset terms, fees, penalties or payments during the distribution period or
     that have cumulatively become material over time;

          (xix) material breaches of pool asset representations or warranties or
     transaction covenants;

          (xx) information on ratio, coverage or other test used for determining
     any early amortization, liquidation or other performance trigger and
     whether the trigger was met;

          (xxi) if applicable, information regarding any new issuance of
     asset-backed securities backed by the same asset pool, any pool asset
     changes (other than in connection with a pool asset converting into cash in
     accordance with its terms), such as additions or removals in connection
     with a prefunding period and pool asset substitutions and repurchases (and
     purchase rates, if applicable), and cash flows available for future
     purchases, such as the balances of any prefunding or revolving accounts, if
     applicable; and

          (xxii) any material changes in the solicitation, credit-granting,
     underwriting, origination, acquisition or pool selection criteria or
     procedures, as applicable, used to originate, acquire or select the new
     pool assets.

     The Paying Agent's responsibility for sending the above information to the
Certificateholders is limited to the availability, timeliness and accuracy of
the information derived from the Servicer which shall be provided as required in
this Section 6.02(a).

     Upon reasonable advance notice in writing if required by federal
regulation, the Servicer will provide to each Certificateholder which is a
savings and loan association, bank or insurance company certain reports and
access during business hours to information and documentation regarding the
Mortgage Loans sufficient to permit such Certificateholder to comply with
applicable regulations of regulatory authorities with respect to investment in
the Certificates; provided, that the Servicer shall be entitled to be reimbursed
by each such Certificateholder for the Servicer's actual expenses incurred in
providing such reports and access.

                                       92

<PAGE>

     (b) The Servicer shall cause to be prepared, and the Servicer or the
Trustee, as required by applicable law, shall file, any and all tax returns,
information statements or other filings required to be delivered to
Certificateholders and any governmental taxing authority pursuant to any
applicable law with respect to the Trust Fund and the transactions contemplated
hereby (the Servicer or the Trustee may, at its option but with the consent of
the other, which consent shall not be unreasonably withheld, appoint an
organization which regularly engages in the preparation and filing of such
documents on a continuous basis for profit and which represents itself to be
expert in such matters) and the Servicer shall maintain a record of the
information necessary for the application of Section 860E(e) of the Code and
shall make such information available as required by Section 860D(a)(6) of the
Code; provided, however, that the Servicer shall notify the Trustee of the
Trustee's obligation to make any such filings and that any fees of the
organization appointed as provided above shall be paid by the Servicer; and
provided further that if an organization is employed, as described above, to
prepare and file any such filings, neither the Trustee nor the Servicer shall be
liable for any errors by such organization.

     Section 6.03 Advances by the Servicer. If, on any Determination Date, the
Servicer determines that any Monthly Payments due on the immediately preceding
Due Date have not been received, the Servicer shall, unless it determines in its
sole discretion that such amounts will not be recoverable from Late Collections,
Liquidation Proceeds or otherwise, make an Advance on or before two Business
Days prior to the related Distribution Date in an amount equal to the amount of
such delinquent Monthly Payments, after adjustment of any delinquent interest
payment for the Servicing Fee. For purposes of this Section 6.03, the delinquent
Monthly Payments referred to in the preceding sentence shall be deemed to
include an amount equal to the Monthly Payments that would have been due on
Mortgage Loans which have been foreclosed or otherwise terminated and in
connection with which the Servicer acquired and continues to own the Mortgaged
Properties on behalf of the Certificateholders. If the Servicer makes an
Advance, it shall on or prior to two Business Days prior to such Distribution
Date either (i) deposit in the Collection Account an amount equal to such
Advance, (ii) cause to be made an appropriate entry in the records of the
Collection Account that funds in such account being held for future distribution
or withdrawal have been, as permitted by this Section 6.03, used by the Servicer
to make such Advance or (iii) make Advances in the form of any combination of
clauses (i) and (ii) aggregating the amount of such Advance. Any funds being
held in the Collection Account for future distribution to Certificateholders and
so used pursuant to clause (ii) or (iii) above shall be replaced by the Servicer
from its own funds by deposit into the Collection Account on or before any
subsequent Distribution Date to the extent that funds in the Collection Account
on such Distribution Date shall be less than the amount of payments required to
be made to Certificateholders on such Distribution Date. Any such Advance shall
be included with the distribution to the Certificateholders on the related
Distribution Date. If the Servicer determines not to make a Nonrecoverable
Advance, it shall on the related Determination Date furnish to the Trustee, any
co-trustee, the Paying Agent and each Rating Agency notice of such
determination. The Servicer shall be entitled to be reimbursed from the
Collection Account for all Advances and Nonrecoverable Advances as provided in
Section 5.09.

     Section 6.04 Allocation of Realized Losses.

     (a) Prior to each Determination Date, the Servicer shall determine (i) the
total amount of Realized Losses, if any, incurred during the related Principal
Prepayment Period; (ii) whether and to what extent such Realized Losses
constitute Excess Losses; and (iii) the respective portions of such Realized
Losses allocable to interest and to principal.

     (b) The principal portion of any Realized Losses on the Pool 1 Mortgage
Loans, the Pool 2 Mortgage Loans, the Pool 3 Mortgage Loans or the Pool 4
Mortgage Loans, other than Excess Losses, shall be allocated as follows: first,
to the Class B-5 Certificates until the Outstanding Certificate Principal
Balance of the Class B-5 Certificates has been reduced to zero; second, to the
Class B-4 Certificates until

                                       93

<PAGE>

the Outstanding Certificate Principal Balance of the Class B-4 Certificates has
been reduced to zero; third, to Class B-3 Certificates until the Outstanding
Certificate Principal Balance of the Class B-3 Certificates has been reduced to
zero; fourth, to the Class B-2 Certificates until the Outstanding Certificate
Principal Balance of the Class B-2 Certificates has been reduced to zero; fifth,
to the Class B-1 Certificates until the Outstanding Certificate Principal
Balance of the Class B-1 Certificates has been reduced to zero; sixth, to the
Class M Certificates until the Outstanding Certificate Principal Balance of the
Class M Certificates has been reduced to zero; and seventh, to the Class A
Certificates, allocated to the Class A Certificates pro rata based upon their
respective Outstanding Certificate Principal Balances until the aggregate
Outstanding Certificate Principal Balance of such Class A Certificates have been
reduced to zero; provided, however, that any portion of any Realized Loss, other
than Excess Losses, that would otherwise be allocated in accordance with this
paragraph to (w) the Class 1-A1, Class 1-A2 or Class 1-A3 Certificates, will
instead be allocated to the Class 1-A4 Certificates until the Outstanding
Certificate Principal Balance of the Class 1-A4 Certificates has been reduced to
zero, (x) the Class 2-A1, Class 2-A2 or Class 2-A3 Certificates, will instead be
allocated to the Class 2-A4 Certificates until the Outstanding Certificate
Principal Balance of the Class 2-A4 Certificates has been reduced to zero, (y)
the Class 3-A1 Certificates, will instead be allocated to the Class 3-A2
Certificates until the Outstanding Certificate Principal Balance of the Class
3-A2 Certificates has been reduced to zero and (z) the Class 4-A1 Certificates,
will instead be allocated to the Class 4-A2 Certificates until the Outstanding
Certificate Principal Balance of the Class 4-A2 Certificates has been reduced to
zero. The principal portion of any Excess Losses with respect to each Mortgage
Loan shall be allocated without priority among (i) all Classes of Subordinated
Certificates and (ii) (A) the Classes of Class 1-A Certificates (if the Excess
Loss occurred with respect to a Pool 1 Mortgage Loan), (B) the Classes of Class
2-A Certificates (if the Excess Loss occurred with respect to a Pool 2 Mortgage
Loan), (C) the Classes of Class 3-A Certificates (if the Excess Loss occurred
with respect to a Pool 3 Mortgage Loan) or (D) the Classes of Class 4-A
Certificates (if the Excess Loss occurred with respect to a Pool 4 Mortgage
Loan) pro rata based upon their respective Outstanding Certificate Principal
Balances. For purposes of the foregoing sentence, each Class of Subordinated
Certificates will be deemed to have an Outstanding Certificate Principal Balance
(and to accrue interest thereon) equal to the actual Outstanding Certificate
Principal Balance thereof times a fraction, the numerator of which is the Pool 1
Subordinated Amount (for a loss on a Pool 1 Mortgage Loan), the Pool 2
Subordinated Amount (for a loss on a Pool 2 Mortgage Loan), the Pool 3
Subordinated Amount (for a loss on a Pool 3 Mortgage Loan) or the Pool 4
Subordinated Amount (for a loss on a Pool 4 Mortgage Loan) and the denominator
of which is the aggregate of the Pool 1 Subordinated Amount, the Pool 2
Subordinated Amount, the Pool 3 Subordinated Amount and the Pool 4 Subordinated
Amount.

     (c) As used herein, an allocation of a Realized Loss on a "pro rata basis"
among two or more specified Classes of Certificates means an allocation on a pro
rata basis, among the various Classes so specified, to each such Class of
Certificates on the basis of their Outstanding Certificate Principal Balances
prior to giving effect to distributions to be made on such Distribution Date.
All Realized Losses and all other losses allocated to a Class of Certificates
hereunder will be allocated among the Certificates of such Class in proportion
to the Percentage Interests evidenced thereby.

     (d) In the event that a recovery is made with respect to any Realized Loss,
the amount of such recovery shall be treated as a Principal Prepayment and
deposited into the Collection Account and distributed on the applicable
Distribution Date.

     Section 6.05 Compensating Interest; Allocation of Certain Interest
Shortfalls.

     (a) Upon a Principal Prepayment of a Mortgage Loan, the Servicer shall
deposit into the Collection Account from its own funds, as a reduction of its
servicing compensation hereunder, an amount, if any, by which the amount of the
interest that would otherwise accrue with respect to such Mortgage Loan from the
date of prepayment to the Due Date in the related Due Period at the Net

                                       94

<PAGE>

Mortgage Rate exceeds the amount of the interest (adjusted to the Net Mortgage
Rate) collected from the Mortgagor with respect to such period (such amount,
"Compensating Interest"); provided, however, that with respect to any
Distribution Date, the Servicer's obligation to deposit any such amount is
limited to an amount equal to the product of (i) one-twelfth of 0.125% and (ii)
the aggregate Scheduled Principal Balance of the Mortgage Loans with respect to
such Distribution Date.

     (b) On any Distribution Date, the excess, if any, of (X) Compensating
Interest with respect to such Distribution Date over (Y) the amount deposited in
the Collection Account pursuant to (a) above for such Distribution Date shall
equal the "Compensating Interest Shortfall" with respect to such Distribution
Date. On any Distribution Date, the Compensating Interest Shortfall shall be
allocated pro rata among the outstanding Classes of Class A, Class M and Class B
Certificates based on the amount of interest to which each such Class would
otherwise be paid on such Distribution Date had there been no such Compensating
Interest Shortfall.

     (c) On any Distribution Date, the interest portion of any Realized Losses
("Realized Loss Interest Shortfall") (other than the interest portion of Excess
Losses) shall be allocated to the Class of Subordinated Certificates then
outstanding having the highest numerical class designation (for this purpose,
the Class M Certificates shall be deemed to have a lower numerical class
designation than each Class of Class B Certificates) or, if no Class of
Subordinated Certificates is then outstanding, to the Class A Certificates pro
rata among the outstanding Classes of Class A Certificates based on the amount
of interest to which each such Class would otherwise be paid on such
Distribution Date had there been no such Realized Loss Interest Shortfall. On
any Distribution Date, the interest portion of any Excess Losses shall be
allocated pro rata among the outstanding Classes of Certificates based upon the
amount of interest to which each such Class would otherwise be paid on such
Distribution Date had there been no such Excess Losses allocable to interest.

     (d) Any interest shortfall resulting from the Relief Act shall be allocated
pro rata among the outstanding Classes of Certificates based upon the amount of
interest to which each such Class would otherwise be paid on such Distribution
Date.

     Section 6.06 Subordination. The rights of the Class B Certificateholders to
receive distributions in respect of the Class B Certificates on any Distribution
Date shall be subordinated to the rights of the Class A and Class M
Certificateholders to receive distributions in respect of the Class A and Class
M Certificates. The rights of the Class M Certificateholders to receive
distributions in respect of the Class M Certificates on any Distribution Date
shall be subordinated to the rights of the Class A Certificateholders to receive
distributions in respect of the Class A Certificates. The rights of the Class
B-1 Certificateholders to receive distributions in respect of the Class B-1
Certificates on any Distribution Date shall be subordinate to the rights of the
Class A and Class M Certificateholders to receive distributions in respect of
such Class A and Class M Certificates. Each Class of Class B Certificates (other
than the Class B-1 Certificates) is subordinated to the Class A Certificates,
the Class M Certificates and each Class of Class B Certificates having a lower
numerical class designation than such Class of Class B Certificates. The rights
of the Servicer, as servicer, to receive funds from the Collection Account,
pursuant to Section 5.09, on account of the Servicing Fee (except as provided in
Section 6.05) in respect of each Mortgage Loan, assumption fees, late payment
charges and other mortgagor charges, reimbursement of Advances and expenses or
otherwise, shall not be subordinated to the rights of the Class A, Class M or
Class B Certificateholders. Amounts held by the Servicer or the Paying Agent for
future distribution to the Class M or Class B Certificateholders, including,
without limitation, in the Collection Account, shall not be distributed in
respect of the Class M or Class B Certificates except in accordance with the
terms of this Agreement. The Class B Certificateholders are deemed to have
granted a security interest in such amounts to the Class A and Class M
Certificateholders to secure the rights of the Class A and Class M
Certificateholders to receive distributions in priority over the Class B

                                       95

<PAGE>

Certificateholders. The Class M Certificateholders are deemed to have granted a
security interest in such amounts to the Class A Certificateholders to secure
the rights of the Class A Certificateholders to receive distributions in
priority over the Class A Certificateholders.

     Section 6.07 [Reserved.]

                               [END OF ARTICLE VI]

                                   ARTICLE VII

                     REPORTS TO BE PREPARED BY THE SERVICER

     Section 7.01 Servicer Shall Provide Information as Reasonably Required. The
Servicer shall furnish to the Trustee or, if a Paying Agent has been appointed
pursuant to Section 4.05, the Paying Agent, during the term of this Agreement,
such periodic, special, or other reports or information, whether or not provided
for herein, as shall be necessary, reasonable, or appropriate in respect to the
Trustee or, if a Paying Agent has been appointed pursuant to Section 4.05, the
Paying Agent, or otherwise in respect to the purposes of this Agreement, all
such reports or information to be as provided by and in accordance with such
applicable instructions and directions as the Trustee or, if a Paying Agent has
been appointed pursuant to Section 4.05, the Paying Agent may reasonably
require.

     Section 7.02 Federal Information Returns and Reports to Certificateholders.

     (a) For federal income tax purposes, the taxable year of each REMIC Pool
shall be a calendar year and the Servicer shall maintain or cause the
maintenance of the books of each REMIC Pool on the accrual method of accounting.

     (b) The Servicer or anyone acting on its behalf pursuant to Section 2.04(g)
shall prepare and file or cause to be filed with the Internal Revenue Service
federal tax or information returns with respect to the Trust Fund, each REMIC
Pool and the Certificates containing such information and at the times and in
the manner as may be required by the Code or applicable Treasury regulations,
and shall furnish to each Certificateholder at any time during the calendar year
for which such returns or reports are made such statements or information at the
times and in the manner as may be required thereby. Without limitation on any
other requirement of this Section 7.02, the Servicer shall make available the
information necessary for the application of Section 860E(e) of the Code within
60 days of such request. With respect to the Class A-R Certificate, the Servicer
shall provide such information or cause such information to be provided to (i)
the Internal Revenue Service, (ii) the transferor of a Class A-R Certificate to
a Disqualified Organization and (iii) a Pass-Thru Entity that holds a Class A-R
Certificate with one or more record holders that are Disqualified Organizations.
The Servicer also shall provide or cause to be provided promptly the above
described computation and information relating to the tax on transfers to
Disqualified Organizations or holdings by Pass-Thru Entities within sixty (60)
days after becoming aware of the transfer to a Disqualified Organization or
Pass-Thru Entity with one or more Disqualified Organization owners, as the case
may be. In addition, except as may be provided in Treasury Regulations, any
Person holding an interest in a Pass-Thru Entity as a nominee for another will,
with respect to such interest, be treated as a Pass-Thru Entity. In connection
with the foregoing, the Servicer shall provide the name, address and telephone
number of the person who can be contacted to obtain information required to be
reported to the holders of regular interests in any REMIC created hereunder (the
"REMIC Reporting Agent") as required by IRS Form 8811. The Trustee hereby
designates the Servicer to serve as the REMIC Reporting Agent. The Servicer
shall indicate the elections to treat each of the Lower-Tier REMIC, the
Middle-Tier REMIC and the Upper-Tier REMIC as a REMIC (which elections shall
apply to

                                       96

<PAGE>

the taxable period ending December 31, 2005 and each calendar year thereafter)
in such manner as the Code or applicable Treasury regulations may prescribe. The
Trustee shall sign all tax and information returns filed pursuant to this
Section 7.02 and any other returns as may be required by the Code, and in doing
so shall rely entirely upon, and shall have no liability for information
provided by, or calculations provided by, the Servicer. The Servicer is hereby
designated as the agent of the Holder of the Class A-R Certificate who shall be
the "tax matters person" (within the meaning of Treas. Reg. Section 1.860F-4(d))
for each REMIC Pool. Any Holder of a Class A-R Certificate will by acceptance
thereof so appoint the Servicer as agent and attorney-in-fact for the purpose of
acting as tax matters person. In the event that the Code or applicable Treasury
regulations prohibit the Trustee from signing tax or information returns or
other statements, or the Servicer from acting as tax matters person (as an agent
or otherwise), the Trustee or the Servicer, as the case may be, shall take
whatever action that in its sole good faith judgment is necessary for the proper
filing of such information returns or for the provision of a tax matters person,
including designation of the Holder of a Class A-R Certificate to sign such
returns or act as tax matters person. Each Holder of a Class A-R Certificate
shall be bound by this Section 7.02 by virtue of its acceptance of a Class A-R
Certificate.

                              [END OF ARTICLE VII]

                                  ARTICLE VIII

                         THE DEPOSITOR AND THE SERVICER

     Section 8.01 Indemnification; Third Party Claims. The Servicer agrees to
indemnify the Depositor and the Trustee and hold the Depositor and the Trustee,
their officers, directors, employees and agents harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, fees and expenses that the Depositor or the
Trustee, or their officers, directors, employees or agents may sustain in any
way related to failure of the Servicer to perform its duties and service the
Mortgage Loans in compliance with the terms of this Agreement; provided that no
such indemnification shall be required with respect to acts of a prior Servicer.
The Servicer shall immediately notify the Depositor and the Trustee if a claim
is made by a third party with respect to this Agreement or the Mortgage Loans,
assume (with the consent of the Depositor and the Trustee) the defense of any
such claim and pay all expenses in connection therewith, including counsel fees,
and promptly pay, discharge and satisfy any judgment or decree which may be
entered against it, the Depositor or the Trustee, their officers, directors,
employees or agents in respect of such claim. This right to indemnification
shall survive the termination of this Agreement.

     Section 8.02 Merger or Consolidation of the Depositor or the Servicer. The
Depositor and the Servicer will each keep in full effect its existence, rights
and franchises as a corporation, and will obtain and preserve its qualification
to do business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the Mortgage Loans
and to perform its duties under this Agreement. The Servicer will not sell all
or substantially all of its assets without the prior written consent of the
Depositor and the Trustee which shall not be unreasonably withheld or delayed.

     Any Person into which the Depositor or the Servicer may be merged or
consolidated, or to whom the Depositor or the Servicer has sold substantially
all of its assets, or any corporation resulting from any merger, conversion or
consolidation to which the Depositor or the Servicer shall be a party, or any
Person succeeding to the business of the Depositor or the Servicer, shall be the
successor of the Depositor or the Servicer hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding; provided, however, that the
successor or

                                       97

<PAGE>

surviving Person to the Servicer shall satisfy the requirements of Section 8.05
with respect to the qualifications of a successor to the Servicer.

     Notwithstanding anything else in this Section 8.02 and Section 8.04 to the
contrary, the Servicer may assign its rights and delegate its duties and
obligations under this Agreement; provided that the Person accepting such
assignment or delegation shall be a Person which is qualified to service
mortgage loans on behalf of FNMA or FHLMC, is approved in advance in writing by
the Trustee and the Depositor, is willing to service the Mortgage Loans and
executes and delivers to the Depositor and the Trustee an agreement, in form and
substance reasonably satisfactory to the Depositor and the Trustee, which
contains an assumption by such Person of the due and punctual performance and
observance of each covenant and condition to be performed or observed by the
Servicer under this Agreement; provided further that each Rating Agency's rating
of any of the Classes of Certificates that have been rated in effect immediately
prior to such assignment and delegation will not be qualified or reduced or
withdrawn as a result of such assignment and delegation. In the case of any such
assignment and delegation, the Servicer shall be released from its obligations
as Servicer under this Agreement, except that the Servicer shall remain liable
for all liabilities and obligations incurred by it as Servicer hereunder prior
to the satisfaction of the conditions to such assignment and delegation set
forth in the next preceding sentence.

     Section 8.03 Limitation on Liability of the Depositor, the Servicer, the
Trustee and Others. Neither the Depositor, the Servicer nor any of the
directors, officers, employees or agents of the Depositor or the Servicer shall
be under any liability to the Trustee or the Certificateholders for any action
taken, or for refraining from the taking of any action, in good faith pursuant
to this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Depositor or the Servicer against any breach of
warranties or representations made herein, or failure to perform its obligations
in strict compliance with this Agreement, or any liability which would otherwise
be imposed by reason of any breach of the terms and conditions of this
Agreement. The Depositor, the Servicer, the Trustee, and any director, officer,
employee or agent of the Depositor, the Servicer or the Trustee may rely in good
faith on any document of any kind prima facie properly executed and submitted by
any Person respecting any matters arising hereunder. Neither the Depositor, the
Servicer nor the Trustee shall be under any obligation to appear in, prosecute
or defend any legal action which is not incidental to its respective duties to
service the Mortgage Loans in accordance with this Agreement and which in its
opinion may cause it to incur any expenses or liability; provided, however, that
the Depositor, the Servicer or the Trustee may in its discretion (and, in the
case of the Depositor or the Servicer, with the consent of the Trustee, which
consent shall not be unreasonably withheld) undertake any such action which it
may deem necessary or desirable with respect to this Agreement and the rights
and duties of the parties hereto. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and
liabilities payable from the Collection Account and the Depositor, the Servicer
or the Trustee shall be entitled to be reimbursed therefor out of the Collection
Account as provided by Section 5.09; provided that no such right of
reimbursement shall exist with respect to the Servicer when such claim relates
to the failure of the Servicer to service the Mortgage Loans in strict
compliance with the terms of this Agreement or to a breach of a representation
or warranty made by the Servicer hereunder.

     Section 8.04 Depositor and Servicer Not to Resign. Except as described in
Section 8.02, neither the Depositor nor the Servicer shall assign this Agreement
or resign from the obligations and duties hereby imposed on it except by mutual
consent of the Depositor, the Servicer and all of the Certificateholders unless
the determination is made that its duties hereunder are no longer permissible
under applicable law and such incapacity cannot be cured by the Depositor or the
Servicer. Any such determination permitting the resignation of the Depositor or
the Servicer shall be evidenced by an opinion of independent counsel to such
effect delivered to the Trustee which opinion of counsel shall be in form and
substance acceptable to the Trustee. Upon any such assignment or resignation,
the Depositor or the Servicer, as appropriate, shall send notice to all
Certificateholders of the effect of such assignment or

                                       98

<PAGE>

resignation upon the then current rating of the Class of Certificates by each
Rating Agency whose rating on such Class is then in effect. No such resignation
shall become effective until a successor shall have assumed the Depositor's or
the Servicer's responsibilities and obligations hereunder in the manner provided
in Section 8.05. Any purported assignment or resignation which does not comply
with the requirements of this Section shall be of no effect.

     Section 8.05 Successor to the Servicer. In connection with the termination
of the Servicer's responsibilities and duties under this Agreement pursuant to
Section 8.04 or 9.01, the Trustee shall succeed to and assume all of the
Servicer's responsibilities, rights, duties and obligations as Servicer (but not
in any other capacity) under this Agreement (except that the Trustee shall not
be obligated to make Advances if prohibited by applicable law nor to effectuate
repurchases or substitutions of Mortgage Loans pursuant to Section 2.02 and
except that the Trustee makes no representations and warranties pursuant to
Sections 3.01 and 3.02). Prior to the termination of the Servicer's
responsibilities, duties and liabilities under this Agreement, the Trustee may
appoint a successor having a net worth of not less than $15,000,000 and which is
a FNMA or FHLMC approved seller/servicer in good standing and which shall
succeed to all rights and assume all of the responsibilities, duties and
liabilities of the Servicer under this Agreement, except as aforesaid, if the
Trustee receives a letter from each Rating Agency that such appointment would
not result in a reduction or withdrawal of the current rating of any Class of
Certificates that is rated by a Rating Agency. Any co-trustee appointed pursuant
to Section 10.10 for purposes of this Section 8.05 shall have an obligation to
make Advances pursuant to Section 6.03 during such time as the Trustee is the
Servicer, which obligation shall be joint and several with that of the Trustee
as Servicer. If the Trustee has become the successor to the Servicer in
accordance with this Section or Section 9.03, then notwithstanding the above,
the Trustee may, if it shall be unwilling to so act, or shall, if it is unable
to so act, appoint, or petition a court of competent jurisdiction to appoint,
any established housing and home finance institution having a net worth of not
less than $15,000,000 and which is a FNMA or FHLMC approved seller/servicer in
good standing as the successor to the Servicer hereunder in the assumption of
all of the responsibilities, duties or liabilities of the Servicer hereunder. In
connection with any such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree or such court shall determine;
provided, however, that no such compensation shall be in excess of that
permitted under this Agreement without the consent of all of the
Certificateholders. If the Trustee is acting as Servicer, the Trustee shall be
entitled to all compensation of the Servicer hereunder, and all such
compensation due to the Trustee as Servicer shall be in addition to all
compensation it is entitled to as Trustee under this Agreement. If the
Servicer's duties, responsibilities and liabilities under this Agreement should
be terminated pursuant to Section 8.02, 8.04 or 9.01, the Servicer shall
discharge such duties and responsibilities during the period from the date it
acquires knowledge of such termination until the effective date thereof with the
same degree of diligence and prudence which it is obligated to exercise under
this Agreement, and shall take no action whatsoever that might impair or
prejudice the rights or financial condition of its successor or the Trust Fund.
The resignation or removal of the Servicer pursuant to Section 8.02, 8.04 or
9.01 shall not become effective until a successor shall be appointed pursuant to
this Section and shall in no event relieve the Servicer of liability for breach
of the representations and warranties made pursuant to Section 3.02.

     Any successor appointed as provided herein shall execute, acknowledge and
deliver to the Servicer and to the Trustee an instrument accepting such
appointment, whereupon such successor shall become fully vested with all the
rights, powers, duties, responsibilities, obligations and liabilities of the
Servicer, with like effect as if originally named as a party to this Agreement
and the Certificates. Any termination or resignation of the Servicer or this
Agreement pursuant to Section 8.02, 8.04, 9.01 or 11.01 shall not affect any
claims that the Trustee may have against the Servicer for events or actions
taken or not taken by the Servicer arising prior to any such termination or
resignation.

                                       99

<PAGE>

     The Servicer shall timely deliver to the successor the funds that were, or
were required to be, in the Collection Account and the Escrow Account, if any,
and all Mortgage Files and related documents, statements and recordkeeping held
by it hereunder and the Servicer shall account for all funds and shall execute
and deliver such instruments and do such other things as may reasonably be
required to more fully and definitely vest and confirm in the successor all such
rights, powers, duties, responsibilities, obligations and liabilities of the
Servicer.

     Upon a successor's acceptance of appointment as such, the Servicer shall
notify, in writing, the Trustee, the Certificateholders and each Rating Agency
of such appointment.

     Section 8.06 Maintenance of Ratings. The Servicer shall cooperate with the
Depositor and take any action that may be reasonably necessary to maintain the
current rating or ratings on the Certificates.

                              [END OF ARTICLE VIII]

                                   ARTICLE IX

                                     DEFAULT

     Section 9.01 Events of Default. If one or more of the following Events of
Default shall occur and be continuing, that is to say:

     (a) any failure by the Servicer to remit any payment required to be made or
distributed under the terms of this Agreement which continues unremedied for a
period of three (3) Business Days after the date upon which written notice of
such failure, requiring the same to be remedied, shall have been given to the
Servicer by the Trustee, the Paying Agent or the Depositor or to the Servicer,
the Trustee, the Paying Agent and the Depositor by the Holders of Certificates
of any Class evidencing, as to such Class, Percentage Interests aggregating not
less than 25%; or

     (b) a breach by the Servicer in a material respect of any representation or
warranty set forth in Section 3.02, or failure on the part of the Servicer duly
to observe or perform in any material respect any other of the covenants or
agreements on the part of the Servicer set forth in this Agreement, which
continues unremedied for a period of 60 days after the date on which written
notice of such breach or failure, requiring the same to be remedied, shall have
been given to the Servicer by the Trustee or the Depositor or to the Servicer,
the Trustee and the Depositor by the Holders of Certificates of any Class
evidencing, as to such Class, Percentage Interests aggregating not less than
25%; or

     (c) the Servicer shall notify the Trustee and any Paying Agent appointed
pursuant to Section 4.05 in writing that it is unable to make an Advance
required to be made in accordance with Section 6.03; or;

     (d) a decree or order of a court or agency or supervisory authority having
jurisdiction for the appointment of a conservator or receiver or liquidator in
any insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall
have been entered against the Servicer and such decree or order shall have
remained in force undischarged or unstayed for a period of 60 days; or

                                       100

<PAGE>

     (e) the Servicer shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt, marshalling of
assets and liabilities or similar proceedings of or relating to the Servicer or
of or relating to all or substantially all of the Servicer's property; or

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

then, and in each and every such case, so long as an Event of Default shall not
have been remedied, upon receiving notice or knowledge of such event, the
Trustee shall notify the Certificateholders and each Rating Agency of such Event
of Default. The Trustee may, upon receipt of such notice or knowledge, and at
the written direction of the Holders of Certificates evidencing Percentage
Interests aggregating more than 50%, shall, by notice in writing to the
Servicer, terminate all the rights and obligations of the Servicer under this
Agreement and in and to the Mortgage Loans and the proceeds thereof. On or after
the receipt by the Servicer of such written notice, all authority and power of
the Servicer under this Agreement, whether with respect to the Mortgage Loans or
otherwise, shall pass to and be vested in the successor appointed pursuant to
Section 8.05. Upon written request from the Trustee, the Servicer shall prepare,
execute and deliver, any and all documents and other instruments, place in such
successor's possession all Mortgage Files, and do or accomplish all other acts
or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise, at the Servicer's sole
expense. The Servicer agrees to cooperate with the Trustee and any co-trustee in
effecting the termination of the Servicer's responsibilities and rights
hereunder, including, without limitation, the transfer to such successor for
administration by it of all cash amounts which shall at the time be credited or
should have been credited by the Servicer to the Collection Account or Escrow
Account or thereafter received with respect to the Mortgage Loans. The Trustee
will have no obligation to take any action or institute, conduct or defend any
litigation under this Agreement at the request, order or direction of any of the
Holders of Certificates unless such Certificateholders have offered to the
Trustee reasonable security or indemnity against the costs, expenses and
liabilities which the Trustee may incur. The Paying Agent shall provide
information regarding the Certificateholders available to the Paying Agent in
order to allow the Trustee to comply with the provisions above.

     Section 9.02 Waiver of Defaults. The Trustee may waive any default by the
Servicer in the performance of its obligations hereunder and its consequences,
except that a default in the making of any required distribution on any of the
Certificates may only be waived by the Holders of a majority of the Percentage
Interests of the affected Certificateholders. Upon any such waiver of a past
default, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereon except to the extent expressly so waived.

     Section 9.03 Trustee to Act; Appointment of Successor. On and after the
time the Servicer receives a notice of termination pursuant to Section 9.01, the
Trustee or a successor servicer appointed by it shall be the successor in all
respects to the Servicer to the extent provided in Section 8.05.

     Section 9.04 Notification to Certificateholders and the Rating Agencies.

     (a) Upon any such termination pursuant to Section 9.01, the Trustee shall
give prompt written notice thereof to Certificateholders at their respective
addresses appearing in the Certificate Register and to each Rating Agency.

                                       101

<PAGE>

     (b) Within sixty (60) days of a Responsible Officer of the Trustee having
received written notice of the occurrence of any Event of Default, the Trustee
shall transmit by mail to all Holders of Certificates notice of each such Event
of Default hereunder known to the Trustee, unless such Event of Default shall
have been cured or waived.

     (c) The Paying Agent shall provide information regarding the
Certificateholders available to the Paying Agent in order to allow the Trustee
to comply with the provisions above.

                               [END OF ARTICLE IX]

                                    ARTICLE X

                             CONCERNING THE TRUSTEE

     Section 10.01 Duties of Trustee. The Trustee, prior to the occurrence of an
Event of Default and after the curing of all Events of Default which may have
occurred, undertakes to, and is empowered to, perform such duties and only such
duties as are specifically set forth in this Agreement. Any permissive right of
the Trustee as enumerated in this Agreement shall not be construed as a duty;
provided that in case an Event of Default has occurred (which has not been
cured), the Trustee shall exercise such of the rights and powers vested in it by
this Agreement, and use the same degree of care and skill in their exercise as a
prudent man would exercise or use under the circumstances in the conduct of such
man's own affairs.

     No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct; provided, however, that:

          (i) Prior to the occurrence of an Event of Default, and after the
     curing of all such Events of Default which may have occurred, the duties
     and obligations of the Trustee shall be determined solely by the express
     provisions of this Agreement, the Trustee shall not be liable except for
     the performance of such duties and obligations as are specifically set
     forth in this Agreement, no implied covenants or obligations shall be read
     into this Agreement against the Trustee and, in the absence of bad faith on
     the part of the Trustee, the Trustee may conclusively rely, as to the truth
     of the statements and the correctness of the opinions expressed therein,
     upon any certificates or opinions furnished to the Trustee and conforming
     to the requirements of this Agreement;

          (ii) The Trustee shall not be liable for an error of judgment made in
     good faith by a Responsible Officer or Responsible Officers of the Trustee,
     unless it shall be proved that the Trustee was negligent in ascertaining
     the pertinent facts; and

          (iii) The Trustee shall not be liable with respect to any action
     taken, suffered or omitted to be taken by it in good faith in accordance
     with the direction of Certificateholders of any Class holding Certificates
     which evidence, as to such Class, Percentage Interests aggregating not less
     than 25% as to the time, method and place of conducting any proceeding for
     any remedy available to the Trustee, or exercising any trust or power
     conferred upon the Trustee, under this Agreement.

          (iv) The Trustee shall execute the Letter of Representations, a form
     of which is attached hereto as Exhibit P, on behalf of the Depositor.

                                       102

<PAGE>

     Section 10.02 Certain Matters Affecting the Trustee. Except as otherwise
provided in Section 10.01:

     (a) The Trustee may rely upon and shall be protected in acting or
refraining from acting upon any resolution, Officers' Certificate, certificate
of auditors or any other certificate, statement, instrument, opinion, report,
notice, request, consent, order, appraisal, bond or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

     (b) The Trustee may consult with counsel, and any advice or Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken or suffered or omitted by it hereunder in good faith and in
accordance with such advice or Opinion of Counsel;

     (c) The Trustee shall be under no obligation to exercise any of the trusts
or powers vested in it by this Agreement or to institute, conduct or defend any
litigation hereunder or in relation hereto at the request, order or direction of
any of the Certificateholders, pursuant to the provisions of this Agreement,
unless such Certificateholders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby;

     (d) Neither the Trustee nor any of its directors, officers, employees or
agents shall be personally liable for any action taken, suffered or omitted by
it in good faith and believed by it or any of them to be authorized or within
the discretion or rights or powers conferred upon the Trustee by this Agreement;

     (e) Prior to the occurrence of an Event of Default hereunder and after the
curing of all Events of Default which may have occurred, the Trustee shall not
be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless
requested in writing to do so by Holders of Certificates of any Class
evidencing, as to such Class, Percentage Interests aggregating not less than 25%
(in the case of conflicting requests by two or more 25% or greater Percentage
Interests, the Trustee shall act in accordance with the first such request);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Agreement,
the Trustee may require reasonable indemnity against such expense or liability
as a condition to such proceeding. The reasonable expense of every such
examination shall be paid by the Servicer, if an Event of Default shall have
occurred and is continuing, and otherwise by the Certificateholder requesting
the investigation;

     (f) The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents,
subcontractors or attorneys; and

     (g) Nothing in this Agreement shall be construed to require the Trustee
(except as might otherwise be required in its capacity as successor Servicer) to
expend its own funds.

     Section 10.03 Trustee Not Liable for Certificates or Mortgage Loans. The
recitals contained herein shall be taken as the statements of the Depositor or
the Servicer, as the case may be, and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations or warranties as to the
validity or sufficiency of this Agreement or of the Certificates, of any
Mortgage Loan or related document or the Trust Estate. The Trustee shall not be
accountable for the use or application by the Depositor or the Servicer of any
of the Certificates or of the proceeds of such Certificates, or for the use or
application of any funds paid to the Depositor or the Servicer in respect of the
Mortgage Loans or deposited in or withdrawn from the Collection Account by the
Depositor or the Servicer or the Certificate

                                       103

<PAGE>

Account by the Paying Agent. The Trustee shall have no responsibility for the
timeliness or the amount of payments made by the Paying Agent to the
Certificateholders.

     Section 10.04 Trustee May Own Certificates. The Trustee in its individual
or any other capacity may become the owner or pledgee of Certificates with the
same rights it would have if it were not Trustee.

     Section 10.05 Fees and Expenses. The Paying Agent, from moneys received
from the Servicer, covenants and agrees to pay to the Trustee and its agents a
monthly fee (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) equal to the product of (a) the
Aggregate Principal Balance of the Mortgage Loans as of the Determination Date
in the preceding month and (b) one-twelfth of 0.000010, and the Servicer will
pay or reimburse the Trustee, or its agents upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee or its
agents in accordance with any of the provisions of this Agreement (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all persons not regularly in its employ, and the expenses incurred by the
Trustee in connection with the appointment of an office or agency pursuant to
Section 10.11) and the Servicer shall indemnify and hold harmless the Trustee
its officers, directors, employees and agents from and against any and all
claims, liabilities, losses or expenses (including but not limited to reasonable
attorneys fees) incurred in connection with the administration of this Trust and
the performance of its duties hereunder provided that the Servicer shall not be
required to reimburse any such expense or indemnify against any such loss or
liability incurred by the Trustee through the Trustee's own negligence or bad
faith. Notwithstanding anything to the contrary in this Agreement, this Section
shall survive the termination of this Agreement.

     Section 10.06 Eligibility Requirements for Trustee. The Trustee hereunder
shall at all times be an entity having its principal office in a state and city
acceptable to the Depositor and organized and doing business under the laws of
such state or the United States of America, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least $50,000,000 and subject to supervision or examination by federal or state
authority. The Trustee shall not be an Affiliate of either Seller or the
Depositor. If such entity publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation 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 Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 10.07.

     Section 10.07 Resignation and Removal of the Trustee. The Trustee, and any
co-trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Depositor, the Servicer and each
Rating Agency. Upon receiving such notice of resignation, the Depositor shall
promptly appoint a successor trustee or co-trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee; provided that such appointment
does not result in a reduction or withdrawal of the rating of any of the Classes
of Certificates that have been rated. If no successor trustee shall have been so
appointed and have accepted appointment within thirty (30) days after the giving
of such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee.

     If at any time, the Trustee shall cease to be eligible in accordance with
the provisions of Section 10.06 and shall fail to resign after written request
therefor by the Depositor, or if at any time the Trustee shall become incapable
of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the

                                       104

<PAGE>

Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor may remove the Trustee and
appoint a successor trustee by written instrument, in duplicate, one copy of
which instrument shall be delivered to the Trustee so removed and one copy to
the successor trustee.

     The Holders of Certificates evidencing in the aggregate more than 50% of
Percentage Interest may at any time remove the Trustee and appoint a successor
trustee by written instrument or instruments, in triplicate, signed by such
Holders or their attorneys-in-fact duly authorized, one complete set of which
instruments shall be delivered to the Depositor, one complete set to the Trustee
so removed and one complete set to the successor so appointed.

     Any resignation or removal of the Trustee or any resignation of any
co-trustee and appointment of a successor trustee or co-trustee pursuant to any
of the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 10.08, or upon
acceptance of appointment by a co-trustee, as applicable, unless with respect to
a co-trustee, the Trustee receives written notice from each Rating Agency that
the failure to appoint a successor co-trustee would not result in a withdrawal
or reduction of the rating of any of the Classes of Certificates that have been
rated, in which case the resignation of any co-trustee shall be effective upon
receipt of such written notice. Any co-trustee may not be removed unless the
Depositor and the Trustee each receive written notice from each Rating Agency
that such removal would not result in a withdrawal or reduction of the rating of
any of the Classes of Certificates that have been rated, in which case the
removal of any co-trustee shall be effective upon receipt of such written
notice.

     Section 10.08 Successor Trustee. Any successor trustee appointed as
provided in Section 10.07 shall execute, acknowledge and deliver to the
Depositor and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective, and such successor trustee shall
become effective and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. The predecessor trustee shall deliver to the successor
trustee all Mortgage Files and related documents and statements held by it
hereunder, and the Depositor, the Servicer and the predecessor trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for more fully and certainly vesting and confirming in the successor
trustee all such rights, powers, duties and obligations.

     No successor trustee shall accept appointment as provided in this Section
unless at the time of such acceptance such successor trustee shall be eligible
under the provisions of Section 10.06. Prior to the appointment of any successor
trustee becoming effective, the Depositor shall have received from each Rating
Agency written confirmation that such appointment would not result in a
reduction of the rating of the Class A or Class M Certificates.

     Upon acceptance of appointment by a successor trustee as provided in this
Section, the Servicer shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates at their addresses as shown in the
Certificate Register, to the Servicer, any Sub-Servicer and to each Rating
Agency. If the Depositor fails to mail such notice within ten (10) days after
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed at the expense of the Depositor.

     Section 10.09 Merger or Consolidation of Trustee. Any entity into which the
Trustee may be merged or converted or with which it may be consolidated or any
entity resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any entity succeeding to the business

                                       105

<PAGE>

of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be eligible under the provisions of Section 10.06, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding.

     Section 10.10 Appointment of Co-Trustee or Separate Trustee. At any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing the same may at the time be
located, the Depositor and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee to act as co-trustee or co-trustees, jointly with the
Trustee, of any part of the Trust Fund, and to vest in such Person or Persons,
in such capacity, such title to the Trust Fund, or any part thereof, and,
subject to the other provisions of this Section 10.10, such powers, duties,
obligations, rights and trusts as the Depositor and the Trustee may consider
necessary or desirable. If the Depositor shall not have joined in such
appointment within fifteen (15) days after the receipt by it of a request so to
do, or in case an Event of Default shall have occurred and be continuing, the
Trustee alone shall have the power to make such appointment. No co-trustee or
separate trustee hereunder shall be required to meet the terms of eligibility as
a successor trustee under Section 10.06, hereunder, and no notice to Holders of
Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be
required under Section 10.08 hereof.

     In the case of any appointment of a co-trustee or separate trustee pursuant
to this Section 10.10, all rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised or
performed by the Trustee and such separate trustee or co-trustee jointly and
severally, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed (whether as Trustee hereunder or
as successor to the Servicer hereunder), the Trustee shall be incompetent or
unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Trust Fund or any
portion thereof in any such jurisdiction) shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

     Every instrument appointing any separate trustee or co-trustee shall refer
to this Agreement and the conditions of this Article X. Each separate trustee
and co-trustee, upon its acceptance of the trusts conferred, shall be vested
with the estates or property specified in its instrument of appointment, either
jointly with the Trustee or separately, as may be provided therein, subject to
all the provisions of this Agreement, specifically including every provision of
this Agreement relating to the conduct of, affecting the liability of, or
affording protection to, the Trustee. Every such instrument shall be filed with
the Trustee.

     Any separate trustee or co-trustee may, at any time, constitute the
Trustee, its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name.

     Section 10.11 Appointment of Office or Agency. The Trustee may appoint an
office or agency in The City of New York where Certificates may be surrendered
for registration of transfer or exchange. The Trustee will maintain an office at
the address stated in Section 12.07 hereof where notices and demands to or upon
the Trustee in respect of the Certificates may be served.

     Section 10.12 Indemnification.

     (a) The Paying Agent shall indemnify and hold harmless the Trustee, the
Depositor, the Servicer and their respective officers, directors, agents and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a failure of the Paying Agent to deliver when
required any

                                       106

<PAGE>

Assessment of Compliance required of it pursuant to Section 5.26 or any material
misstatement or omission contained in any Assessment of Compliance provided on
its behalf pursuant to Section 5.26. If the indemnification provided for herein
is unavailable or insufficient to hold harmless the indemnified parties, then
the Paying Agent agrees that it shall contribute to the amount paid or payable
by the indemnified parties as a result of the losses, claims, damages or
liabilities of the indemnified parties in such proportion as is appropriate to
reflect the relative fault of the Paying Agent on the one hand and of the
indemnified parties on the other.

     (b) The Servicer shall indemnify and hold harmless the Trustee, the Paying
Agent and the Depositor and their respective officers, directors, agents and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach by the Servicer or any of its officers,
directors, agents or Affiliates of its obligations under Sections 5.24, 5.25,
and 5.26, any material misstatement or omission in any documents prepared
thereunder (to the extent the Servicer is responsible for providing information
or calculating amounts included in such information), the failure of the
Servicer to deliver when required any Assessment of Compliance or Accountant's
Attestation required of it pursuant to Section 5.26 or Annual Statement of
Compliance required pursuant to Section 5.25, as applicable, or any material
misstatement or omission contained in any Assessment of Compliance, Accountant's
Attestation or Annual Statement of Compliance provided on its behalf pursuant to
Section 5.25 or 5.26, as applicable, or the negligence, bad faith or willful
misconduct of the Servicer in connection therewith. If the indemnification
provided for herein is unavailable or insufficient to hold harmless the
indemnified parties, then the Servicer agrees that it shall contribute to the
amount paid or payable by the indemnified parties as a result of the losses,
claims, damages or liabilities of the indemnified parties in such proportion as
is appropriate to reflect the relative fault of the Servicer on the one hand and
of the indemnified parties on the other.

                               [END OF ARTICLE X]

                                   ARTICLE XI

                                   TERMINATION

     Section 11.01 Termination. The respective obligations and responsibilities
of the Depositor, the Servicer (except the duty to pay the Trustee's fees and
expenses and indemnification hereunder) and the Trustee shall terminate upon (i)
the later of the final payment or other liquidation (or any Advance with respect
thereto) of the last Mortgage Loan or the disposition of all property acquired
upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan and the
remittance of all funds due hereunder; or (ii) at the option of the Servicer, on
any Distribution Date which occurs in the month next following a Due Date on
which the aggregate unpaid Principal Balance of all Outstanding Mortgage Loans
is less than 5% of the aggregate unpaid Principal Balance of the Mortgage Loans
on the Cut-off Date, so long as the Servicer deposits or causes to be deposited
in the Collection Account during the Principal Prepayment Period related to such
Distribution Date (and provides notice to the Trustee with a copy to the Paying
Agent appointed pursuant to Section 4.05 of its intention to so deposit on or
before 20th day of such Principal Prepayment Period) an amount equal to the
Purchase Price for each Outstanding Mortgage Loan, less any unreimbursed
Advances made with respect to any Mortgage Loan (which amount shall offset
completely any unreimbursed Advances for which the Servicer is otherwise
entitled to reimbursement), and, with respect to all property acquired in
respect of any Mortgage Loan remaining in the Trust Fund, an amount equal to the
fair market value of such property, as determined by an appraisal to be
conducted by an appraiser selected by the Trustee, less unreimbursed Advances
made with respect to any Mortgage Loan with respect to which property has been
acquired; provided, however, that in no

                                       107

<PAGE>

event shall the trust created hereby continue beyond the expiration of 21 years
from the death of the last survivor of the descendants of Joseph P. Kennedy, the
late ambassador of the United States to the Court of St. James's, living on the
date hereof. Notwithstanding the foregoing, a termination may be effected by the
making of such optional repurchases only if the termination of the Trust Fund
satisfies the requirement for a "qualified liquidation" of the Trust Fund within
the meaning of Section 860F(a)(4) of the Code and the purchases of the
Outstanding Mortgage Loans pursuant to this Section 11.01 will not constitute
"prohibited transactions" within the meaning of Section 860F(a)(2) of the Code.

     Notice of any termination, specifying the Distribution Date upon which all
Certificateholders may surrender their Certificates to the Trustee or, if a
Paying Agent has been appointed pursuant to Section 4.05, the Paying Agent for
payment and cancellation, shall be given promptly by the Trustee or, if a Paying
Agent has been appointed under Section 4.05, the Paying Agent, (upon direction
by the Depositor ten (10) days prior to the date such notice is to be mailed) by
signed letter to Certificateholders and each Rating Agency mailed no later than
the 25th day of the month preceding the month of such final distribution
specifying (i) the Distribution Date upon which final payment on the
Certificates will be made upon presentation and surrender of Certificates at the
office or agency of the Trustee or, if a Paying Agent has been appointed under
Section 4.05, the Paying Agent, therein designated and (ii) that the Record Date
otherwise applicable to such Distribution Date is not applicable, payments being
made only upon presentation and surrender of the Certificates at the office or
agency of the Trustee or, if a Paying Agent has been appointed under Section
4.05, the Paying Agent, therein specified. The Servicer shall indicate the date
of adoption of the plan of qualified liquidation in a statement attached to the
final federal income tax return of each REMIC Pool. After giving such notice,
the Trustee or if a Paying Agent has been appointed under Section 4.05, the
Paying Agent shall not register the transfer or exchange of any Certificates. If
such notice is given in connection with the Servicer's election to purchase the
Outstanding Mortgage Loans, the Servicer shall deposit in the Collection Account
after adoption of the plan during the applicable Principal Prepayment Period an
amount equal to the purchase price as determined as provided in clause (ii) of
the preceding paragraph and on the Distribution Date on which such termination
is to occur, Certificateholders will be entitled to the amount of such purchase
price but not amounts in excess thereof, all as provided herein. Upon
presentation and surrender of the Certificates, the Trustee, or if a Paying
Agent has been appointed under Section 4.05, the Paying Agent shall notify the
Servicer and the Servicer shall cause to be distributed to Certificateholders an
amount equal to (a) the amount otherwise distributable on such Distribution
Date, if not in connection with a purchase; or (b) if the Servicer elected to so
purchase, the purchase price determined as provided in clause (ii) of the
preceding paragraph. Following such final deposit the Trustee shall promptly
release to the Servicer the Mortgage Files for the remaining Mortgage Loans, and
the Trustee shall execute all assignments, endorsements and other instruments
necessary to effectuate such transfer and shall have no further responsibility
with regard to said Mortgage Files.

     If all of the Certificateholders shall not surrender their Certificates for
cancellation within three (3) months after the time specified in the
above-mentioned written notice, at the close of the 90 day period beginning
after the written notice is given, each remaining Certificateholder will be
credited with an amount that would have been otherwise distributed to such
Certificateholder, and the Trustee or, if a Paying Agent has been appointed
under Section 4.05, the Paying Agent, shall give a second written notice to the
remaining Certificateholders to surrender their Certificates for cancellation
and receive the final distribution with respect thereto. If within three (3)
months after the second notice all the Certificates shall not have been
surrendered for cancellation, the Trustee or, if a Paying Agent has been
appointed under Section 4.05, the Paying Agent, shall appoint an agent to take
appropriate and reasonable steps to contact the remaining Certificateholders
concerning surrender of their Certificates, and the cost thereof shall be paid
out of the funds and other assets which remain in the Trust Fund hereunder.

                               [END OF ARTICLE XI]

                                       108

<PAGE>

                                  ARTICLE XII

                            MISCELLANEOUS PROVISIONS

     Section 12.01 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.

     Section 12.02 Limitation on Rights of Certificateholders. The death or
incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust Fund, nor entitle such Certificateholder's legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding-up of the Trust Fund, nor
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.

     No Certificateholder shall have any right to vote (except as expressly
provided herein) or in any manner otherwise control the operation and management
of the Trust Fund, or the obligations of the parties hereto, nor shall anything
herein set forth, or contained in the terms of the Certificates, be construed so
as to constitute the Certificateholders from time to time as partners or members
of an association; nor shall any Certificateholder be under any liability to any
third Person by reason of any action taken by the parties to this Agreement
pursuant to any provision hereof.

     No Certificateholder shall have any right by virtue of any provision of
this Agreement to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Agreement, unless such Holder previously
shall have given to the Trustee a written notice of default and of the
continuance thereof, as hereinbefore provided, and the Holders of Certificates
of any Class evidencing in the aggregate not less than 25% of the Percentage
Interests of such Class shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
(in the case of conflicting requests by two or more 25% or greater Percentage
Interests, the Trustee shall act in accordance with the first such request) and
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby,
and the Trustee, for sixty (60) days after its receipt of such notice, request
and offer of indemnity, shall have neglected or refused to institute any such
action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
of any Class shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates of such Class or any other Class, or
to obtain or seek to obtain priority over or preference to any other such
Holder, or to enforce any right under this Agreement, except in the manner
herein provided and for the common benefit of Certificateholders of such Class
or all Classes, as the case may be. For the protection and enforcement of the
provisions of this Section, each and every Certificateholder and the Trustee
shall be entitled to such relief as can be given either at law or in equity.

     Section 12.03 Amendment. This Agreement may be amended from time to time by
the Depositor, the Servicer and the Trustee, without the consent of any of the
Certificateholders, to cure any ambiguity, to correct or supplement any
provisions herein which may be inconsistent with any other provisions herein, to
ensure continuing treatment of each REMIC created hereunder as a REMIC to avoid
or minimize the risk of imposition of any tax on any REMIC created hereunder
pursuant to the Code, or to make any other provisions with respect to matters or
questions arising under this Agreement which shall not be materially
inconsistent with the provisions of this Agreement, provided that such actions
shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any

                                       109

<PAGE>

Certificateholder of a Class having an Outstanding Certificate Principal Balance
of greater than zero or cause any REMIC created hereunder to fail to qualify as
a REMIC.

     This Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66-2/3% of the Percentage Interest of
each Class of Certificates having an Outstanding Certificate Principal Balance
greater than zero and affected thereby for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this
Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment shall (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) reduce the aforesaid
percentage of Certificates of any Class the Holders of which are required to
consent to any such amendment or (iii) change the percentage specified in clause
(ii) of the first paragraph of Section 11.01, without the consent of the Holders
of all Certificates of such Class then outstanding.

     Notwithstanding anything to the contrary in this Agreement, this Agreement
may be amended from time to time by the Depositor, the Servicer and the Trustee
with the consent of Certificateholders evidencing not less than 66-2/3% of the
interests held by parties other than the Depositor, its Affiliates or its
agents, for the purposes of significantly changing the Permitted Activities of
the Trust.

     Promptly after the execution of any such amendment the Trustee shall
furnish written notification of the substance of such amendment to each
Certificateholder and each Rating Agency.

     It shall not be necessary for the consent of Certificateholders under this
Section 12.03 to approve the particular form of any proposed amendment but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe. In connection with any amendment
pursuant to this Section 12.03 the Trustee, Paying Agent and Depositor shall be
entitled to receive an Opinion of Counsel to the effect that such amendment is
authorized or permitted by this Agreement and that all conditions precedent to
the execution of such amendment in accordance with this Section 12.03 have been
met.

     Section 12.04 Counterparts. This Agreement may be executed simultaneously
in any number of counterparts, each of which counterparts shall be deemed to be
an original, and such counterparts shall constitute but one and the same
instrument.

     Section 12.05 Duration of Agreement. This Agreement shall continue in
existence and effect until terminated as herein provided.

     Section 12.06 Governing Law. This Agreement shall be construed in
accordance with the laws of the State of New York and the obligations, rights
and remedies of the parties hereunder shall be determined in accordance with
such laws.

     Section 12.07 Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by first class or registered mail, postage prepaid, to
(i) in the case of the Depositor, Chase Mortgage Finance Corporation, 300 Tice
Boulevard, 3rd Floor North, Woodcliff Lake, New Jersey 07675, Attention:
Structured Finance, (ii) in the case of the Servicer, JPMorgan Chase Bank, N.A.,
1111 Polaris Parkway, Columbus, Ohio 43240, (iii) in the case of the Custodian,
JPMorgan Chase Bank, N.A., 1080 Oliver Road, Monroe, Louisiana, 71201, (iv) in
the case of the Trustee, U.S. Bank National Association, 209 South LaSalle
Street, Chicago, Illinois 60604, (v) in the case of the Paying Agent, JPMorgan
Chase Bank, N.A., 600

                                       110

<PAGE>

Travis, 9th Floor, Houston, Texas 77002, (vi) in the case of Moody's, Moody's
Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007
(vii) in the case of Fitch Ratings, One State Street Plaza, New York, New York
10004 and (viii) in the case of any of the foregoing persons, such other
addresses as may hereafter be furnished by any such persons to the other parties
to this Agreement.

     Section 12.08 Further Assurances. The Sellers and the Servicer agree to do
and perform, from time to time, any and all acts and to execute any and all
further instruments required or reasonably requested by the Trustee more fully
to effect the purposes of this Agreement, including, without limitation, the
execution of any financing statements and the preparation for execution by the
Trustee of any continuation statements relating to the Co-op Loans for filing
under the provisions of the Uniform Commercial Code as in effect in the
jurisdiction in which the Underlying Mortgaged Property related to the affected
Co-op Loan is located. The Trustee agrees that it shall promptly execute and
redeliver to the Relevant Seller or the Servicer for filing any such
continuation statement so prepared by such Seller relating to the Co-op Loans.

                              [END OF ARTICLE XII]

                                       111

<PAGE>

     IN WITNESS WHEREOF, the Depositor, the Servicer, the Paying Agent and the
Trustee have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written.

                                        CHASE MORTGAGE FINANCE CORPORATION,
                                        as Depositor

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

                                        JPMORGAN CHASE BANK, N.A.,
                                        as Servicer and as Custodian

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

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

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

<PAGE>

                                        JPMORGAN CHASE BANK, N.A.,
                                        as Paying Agent

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

<PAGE>

                                    EXHIBIT A

                             MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                       A-1

<PAGE>

                                    EXHIBIT B

                            CONTENTS OF MORTGAGE FILE

     (i) With respect to each Mortgage Loan which is not a Co-op Loan:

     (A) (I) Original Mortgage Note bearing all intervening endorsements,
endorsed, "Pay to the order of ___________, without recourse" and signed in the
name of the last endorsee by an authorized officer.

     (B) The original Mortgage (including all riders thereto) with evidence of
recording thereon, or a copy thereof certified by the public recording office in
which such Mortgage has been recorded or, if the original Mortgage has not been
returned from the applicable public recording office, a true certified copy of
the original that was sent for recording, certified by the Seller.

     (C) With respect to each Non-MERS Mortgage Loan which is not a Co-op Loan,
the original Assignment of Mortgage to "U.S. Bank National Association, as
trustee (Chase Mortgage Finance Corporation)," which assignment shall be in form
and substance acceptable for recording, or a copy certified by the Relevant
Seller as a true and correct copy of the original Assignment of Mortgage which
has been sent for recordation. Subject to the foregoing, such assignments may,
if permitted by law, be by blanket assignments for Mortgage Loans covering
Mortgaged Properties situated within the same county. If the Assignment of
Mortgage is in blanket form, a copy of the Assignment of Mortgage shall be
included in the related individual Mortgage File.

     (D) The original policy of title insurance, or in the event such original
title policy is unavailable a copy of the related policy (provided that use of a
copy is acceptable to the related title insurance or escrow company), including
riders and endorsements thereto, or if the policy has not yet been issued, a
written commitment or interim binder or preliminary report of title issued by
the title insurance or escrow company.

     (E) Originals of all recorded intervening Assignments of Mortgage, or
copies thereof, certified by the public recording office in which such
Assignments or Mortgage have been recorded showing a complete chain of title
from the originator to the Depositor, with evidence of recording, thereon, or a
copy thereof certified by the public recording office in which such Assignment
of Mortgage has been recorded or, if the original Assignment of Mortgage has not
been returned from the applicable public recording office, a true certified
copy, certified by the Relevant Seller of the original Assignment of Mortgage
together with a certificate of the Relevant Seller certifying that the original
Assignment of Mortgage has been delivered for recording in the appropriate
public recording office of the jurisdiction in which the Mortgaged Property is
located.

     (F) Originals, or copies thereof certified by the public recording office
in which such documents have been recorded, of each assumption, extension,
modification, written assurance or substitution agreements, if applicable, or if
the original of such document has not been returned from the applicable public
recording office, a true certified copy, certified by the Relevant Seller, of
such original document together with certificate of such Seller certifying the
original of such document has been delivered for recording in the appropriate
recording office of the jurisdiction in which the Mortgaged Property is located.

                                       B-1

<PAGE>

     (G) If the Mortgage Note or Mortgage or any other material document or
instrument relating to the Mortgage Loan has been signed by a Person on behalf
of the Mortgagor, the original power of attorney or other instrument that
authorized and empowered such Person to sign bearing evidence that such
instrument has been recorded, if so required in the appropriate jurisdiction
where the Mortgaged Property is located (or, in lieu thereof, a duplicate or
conformed copy of such instrument, together with a certificate of receipt from
the recording office, certifying that such copy represents a true and complete
copy of the original and that such original has been or is currently submitted
to be recorded in the appropriate governmental recording office of the
jurisdiction where the Mortgaged Property is located), or if the original power
of attorney or other such instrument has been delivered for recording in the
appropriate public recording office of the jurisdiction in which the Mortgaged
Property is located, a copy of any applicable power of attorney.

     (ii) With respect to each Co-op Loan:

         (A)(I) The original Mortgage Note endorsed "Pay to the order of
      ___________, without recourse" and signed in the name of the last endorsee
      by an authorized officer.

         (B) The original Mortgage entered into by the Mortgagor with respect to
      such Co-op Loan.

         (C) The original Assignment of Mortgage to "U.S. Bank National
      Association as trustee (Chase Mortgage Finance Corporation)."

         (D) Original Assignments of Mortgage showing a complete chain of
      assignment from the originator of the related Co-op Loan to the Seller.

         (E) Original Form UCC-1 and any continuation statements with evidence
      of filing thereon entered into by the Mortgagor with respect to such Co-op
      Loan or if the original of such document has not been returned from the
      applicable public recording office, a true certified copy of the document
      sent for recording.

         (F) Form UCC-3 (or copy thereof) by the applicable Mortgage Loan Seller
      or its agent assigning the security interest covered by such Form UCC-1 to
      "U.S. Bank National Association as trustee" or to blank, together with all
      Forms UCC-3 (or copies thereof) showing a complete chain of assignment
      from the originator of the related Co-op Loan to the Seller, with evidence
      of recording thereon.

         (G) Stock certificate representing the stock allocated to the related
      dwelling unit in the related residential cooperative housing corporation
      and pledged by the related Mortgagor to the originator of such Co-op Loan
      with a stock power in blank attached.

         (H) Original proprietary lease.

         (I) Original assignment of proprietary lease, to the Trustee or to
      blank, and all intervening assignments thereof.

         (J) Original recognition agreement of the interests of the mortgagee
      with respect to the Co-op Loan by the residential cooperative housing
      corporation, the stock of which was pledged by the related Mortgagor to
      the originator of such Co-op Loan.

         (K) Originals of any assumption, consolidation or modification
      agreements relating to any of the items specified in (A) through (F) above
      with respect to such Co-op Loan.

                                       B-2

<PAGE>

                                    EXHIBIT C

                           FORM OF CLASS A CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR INTEREST"
IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE").

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN CHASE
MORTGAGE FINANCE CORPORATION ("CMFC"), JPMORGAN CHASE BANK, N.A. (THE
"SERVICER") OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER
THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY CMFC, THE SERVICER, THE
TRUSTEE OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE WILL BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

[THIS LEGEND WILL APPEAR ON THE CERTIFICATE ONLY IF SUCH CERTIFICATE IS AN
INTEREST-ONLY CERTIFICATE.] THE CLASS __-AX CERTIFICATES ARE NOT ENTITLED TO
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.

                            CLASS __-A__ CERTIFICATE

Number: 06-A1-__-A__-1                   Original Denomination:
                                         $

Cut-off Date: August 1, 2006             Final Scheduled
                                         Distribution Date: September 25, 2036

First Distribution Date:                 Aggregate Original Principal
September 25, 2006                       Balance of all Class __-A__
                                         Certificates: $

Certificate Rate:                        CUSIP:

                                       B-1

<PAGE>

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 Series 2006-A1

evidencing an ownership interest in distributions allocable to the Class __-A__
Certificates with respect to a pool of conventional one- to four-family mortgage
loans formed and sold by

                       CHASE MORTGAGE FINANCE CORPORATION

     Unless this Certificate is presented by an authorized representative of the
Depository Trust Company, a New York corporation ("DTC"), to the Paying Agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Original
Denomination of all Class __-A__ Certificates) in certain distributions with
respect to a pool of conventional one- to four-family first lien mortgage loans
(the "Mortgage Loans") formed and sold by Chase Mortgage Finance Corporation
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by JPMorgan Chase Bank, N.A. (the "Servicer") and
are secured by first liens on Mortgaged Properties. The Trust Fund was created
pursuant to a Pooling and Servicing Agreement (the "Agreement"), dated as of
August 1, 2006 among the Depositor, the Servicer and U.S. Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, Class __-A__ (the "Class __-A__ Certificates") and
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which Agreement such Holder is bound. Also
issued under the Agreement are Certificates designated as Chase Mortgage Finance
Trust, Multi-Class Mortgage Pass-Through Certificates, Series 2006-A1, Class M
Certificates and Class B Certificates. The Class A Certificates, the Class M
Certificates and the Class B Certificates are collectively referred to herein as
the "Certificates."

     Pursuant to the terms of the Agreement, the Paying Agent appointed under
Section 4.05 of the Agreement will distribute from funds in the Certificate
Account the amount as described on the reverse hereof on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately
following (the "Distribution Date"), commencing on September 25, 2006. Such
distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made.

     Distributions on this Certificate will be made either by check mailed to
the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register, or by wire transfer in immediately available
funds to the account of such Holder at a bank or other financial or depository
institution having appropriate facilities therefor, if such Holder has so
notified the Paying Agent in writing at least 10 Business Days prior to the
first Distribution Date for which distribution by wire

                                        2

<PAGE>

transfer is to be made, and such Holder's Certificates evidence an aggregate
Original Denomination of not less than $5,000,000 or such Holder holds a 100%
Percentage Interest of such Class. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Paying
Agent, of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office of the Paying Agent, for the purpose
and specified in such notice of final distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, or at the office of its designated agent, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such
purpose, the Paying Agent will, subject to the limitations set forth in the
Agreement, authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Paying Agent of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency of the Paying Agent, for that purpose and
specified in such notice of final distribution.

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

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

                                       3

<PAGE>

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly
executed.

Dated:  August 22, 2006                            CHASE MORTGAGE FINANCE
                                                   CORPORATION

                                                   By:
                                                       -------------------------
                                                       Authorized Officer

                                       4

<PAGE>

Dated:  August 22, 2006                            CERTIFICATE OF AUTHENTICATION

                                                   This is one of the
                                                   Certificates referred to in
                                                   the within-mentioned
                                                   Agreement.

                                                   JPMORGAN CHASE BANK, N.A.
                                                    as Authenticating Agent

                                                   By:
                                                       -------------------------
                                                       Authorized Signatory

                                       5

<PAGE>

                             REVERSE OF CERTIFICATE

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2006-A1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, issued in one or more Classes of Class A, Class M
and Class B Certificates. The Class A Certificates evidence in the aggregate the
Class A Percentage of distributions relating to repayments of principal and
interest on the Mortgage Loans. The Class M Certificates evidence in the
aggregate the Class M Percentage of distributions relating to repayments of
principal and interest on the Mortgage Loans. The Class B Certificates evidence
in the aggregate the Class B Percentage of distributions relating to repayments
of principal and interest on the Mortgage Loans.

     Following the initial issuance of the Certificates, the Principal Balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current Principal
Balance by inquiry of the Paying Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that neither the Trustee nor the Paying Agent is
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee and the Paying Agent.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the
registration of Certificates and of transfers and exchanges of Certificates.
Upon surrender for registration of transfer of any Certificate at any office or
agency of the Paying Agent, the Paying Agent will, subject to the limitations
set forth in the Agreement, authenticate and deliver, in the name of the
designated transferee or transferees, a Certificate of a like Class and dated
the date of authentication by the Authenticating Agent.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Paying Agent 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 the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor, the Servicer, the Paying Agent nor the Trustee will be affected by
notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC (as hereinafter defined) included in the Trust Fund as a
REMIC, or

<PAGE>

to make any other provisions with respect to matters or questions arising under
the Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder or cause any REMIC included in the Trust Fund to fail to
qualify as a REMIC.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of
each Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) reduce the aforesaid
percentage of Certificates of any Class the Holders of which are required to
consent to any such amendment or (iii) change the percentage specified in clause
(ii) of the first paragraph of Section 11.01 of the Agreement, without the
consent of the Holders of all Certificates of such Class then outstanding.

     The Agreement provides that the Trust Fund will elect to be treated as one
or more "real estate mortgage investment conduits" for federal income tax
purposes (each, a "REMIC"). The Class A Certificates (other than the Class A-R
Certificate), the Class M Certificates and the Class B Certificates will
constitute "regular interests" in a REMIC. The Class A-R Certificate will
constitute the sole class of "residual interest" in each of the REMICs.

     The respective obligations and responsibilities of the Depositor, the
Servicer (except the duty to pay the Trustee's fees and expenses and
indemnification hereunder) and the Trustee shall terminate upon (i) the later of
the final payment or other liquidation (or any Advance with respect thereto) of
the last Mortgage Loan or the disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and the
remittance of all funds due hereunder; or (ii) at the option of the Servicer on
any Distribution Date which occurs in the month next following a Due Date on
which the aggregate unpaid Principal Balance of all Outstanding Mortgage Loans
is less than 5% of the aggregate unpaid Principal Balance of the Mortgage Loans
on the Cut-off Date, so long as the Servicer deposits or causes to be deposited
in the applicable Collection Account during the Principal Prepayment Period
related to such Distribution Date (and provides notice to the Trustee of its
intention to so deposit on or before the 20th day of such Principal Prepayment
Period) an amount equal to the Purchase Price for each Outstanding Mortgage
Loan, less any unreimbursed Advances made with respect to any Mortgage Loan
(which amount shall offset completely any unreimbursed Advances for which the
Servicer is otherwise entitled to reimbursement), and, with respect to all
property acquired in respect of any Mortgage Loan remaining in the Trust Fund,
an amount equal to the fair market value of such property, as determined by an
appraisal to be conducted by an appraiser selected by the Trustee, less
unreimbursed Advances made with respect to any Mortgage Loan with respect to
which property has been acquired; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from
the death of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James's, living on the date
hereof.

                                       2

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________________Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:

(Signature guaranty)                     _______________________________________
                                         NOTICE: The signature to this
                                         assignment must correspond with the
                                         name as it appears upon the face of the
                                         within Certificate in every particular,
                                         without alteration or enlargement or
                                         any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      C-3

<PAGE>
                                    EXHIBIT D

                           FORM OF CLASS M CERTIFICATE

THIS CLASS M CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR INTEREST"
IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE").

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN CHASE
MORTGAGE FINANCE CORPORATION ("CMFC"), JPMORGAN CHASE BANK, N.A. (THE
"SERVICER") OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER
THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY CMFC, THE SERVICER, THE
TRUSTEE OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE WILL BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                               CLASS M CERTIFICATE

Number: 06-A1-M-1                        Original Denomination:
                                         $

Cut-off Date: August 1, 2006             Final Scheduled
                                         Distribution Date: September 25, 2036

First Distribution Date:                 Aggregate Original Principal
September 25, 2006                       Balance of all Class M
                                         Certificates: $

Certificate Rate:                        CUSIP:

<PAGE>

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 Series 2006-A1

evidencing an ownership interest in distributions allocable to the Class M
Certificates with respect to a pool of conventional one- to four-family mortgage
loans formed and sold by

                       CHASE MORTGAGE FINANCE CORPORATION

     Unless this Certificate is presented by an authorized representative of the
Depository Trust Company, a New York corporation ("DTC"), to the Paying Agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Original
Denomination of all Class M Certificates) in certain distributions with respect
to a pool of conventional one-to four-family first lien mortgage loans (the
"Mortgage Loans") formed and sold by Chase Mortgage Finance Corporation
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by JPMorgan Chase Bank, N.A. (the "Servicer") and
are secured by first lien on Mortgaged Properties. The Trust Fund was created
pursuant to a Pooling and Servicing Agreement (the "Agreement"), dated as of
August 1, 2006 among the Depositor, the Servicer and U.S. Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, Class M (the "Class M Certificates") and is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which Agreement such Holder is bound. Also issued under
the Agreement are Certificates designated as Chase Mortgage Finance Trust,
Multi-Class Mortgage Pass-Through Certificates, Series 2006-A1, Class A
Certificates and Class B Certificates. The Class A Certificates are senior to,
and the Class B Certificates are subordinate to, the Class M Certificates in
right of payment to the extent described herein and in the Agreement. The Class
A Certificates, the Class M Certificates and the Class B Certificates are
collectively referred to herein as the "Certificates." Amounts properly
distributed to the Class M Certificateholders pursuant to the Agreement will be
deemed released from the Trust Fund, and the Class M Certificateholders will not
in any event be required to refund any such distributed amounts.

     Pursuant to the terms of the Agreement, the Paying Agent will distribute
from funds in the Certificate Account the amount as described on the reverse
hereof on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (the "Distribution Date"), commencing on
September 25, 2006. Such distributions will be made to the Person in whose name
this Certificate is registered at the close of business on the last Business Day
of the month preceding the month in which such payment is made.

<PAGE>

     Distributions on this Certificate will be made either by check mailed to
the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register, or by wire transfer in immediately available
funds to the account of such Holder at a bank or other financial or depository
institution having appropriate facilities therefor, if such Holder has so
notified the Paying Agent in writing at least 10 Business Days prior to the
first Distribution Date for which distribution by wire transfer is to be made,
and such Holder's Certificates evidence an aggregate Original Denomination of
not less than $5,000,000 or such Holder holds a 100% Percentage Interest of such
Class. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Paying Agent of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office of the Paying Agent for the purpose and specified in such notice of final
distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, or at the office of its designated agent, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such
purpose, the Paying Agent will, subject to the limitations set forth in the
Agreement, authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Paying Agent of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency of the Paying Agent, for that purpose and
specified in such notice of final distribution.

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

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

<PAGE>

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly
executed.

Dated: August 22, 2006                             CHASE MORTGAGE FINANCE
                                                   CORPORATION

                                                   By:
                                                       -------------------------
                                                       Authorized Officer

<PAGE>

Dated:  August 22, 2006                            CERTIFICATE OF AUTHENTICATION

                                                   This is one of the
                                                   Certificates referred to in
                                                   the within-mentioned
                                                   Agreement.

                                                   JPMORGAN CHASE BANK, N.A.
                                                    as Authenticating Agent

                                                   By:
                                                       -------------------------
                                                       Authorized Signatory

<PAGE>

                             REVERSE OF CERTIFICATE

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2006-A1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, issued in one or more Classes of Class A, Class M
and Class B Certificates. The Class A Certificates evidence in the aggregate the
Class A Percentage of distributions relating to repayments of principal and
interest on the Mortgage Loans. The Class M Certificates evidence in the
aggregate the Class M Percentage of distributions relating to repayments of
principal and interest on the Mortgage Loans. The Class B Certificates evidence
in the aggregate the Class B Percentage of distributions relating to repayments
of principal and interest on the Mortgage Loans.

     Following the initial issuance of the Certificates, the Principal Balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current Principal
Balance by inquiry of the Paying Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that neither the Trustee nor the Paying Agent is
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee and the Paying Agent.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the
registration of Certificates and of transfers and exchanges of Certificates.
Upon surrender for registration of transfer of any Certificate at any office or
agency of the Paying Agent, the Paying Agent will, subject to the limitations
set forth in the Agreement, authenticate and deliver, in the name of the
designated transferee or transferees, a Certificate of a like Class and dated
the date of authentication by the Authenticating Agent.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Paying Agent 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 the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor, the Servicer, the Paying Agent nor the Trustee will be affected by
notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC (as hereinafter defined) included in the Trust Fund as a
REMIC, or

<PAGE>

to make any other provisions with respect to matters or questions arising under
the Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder or cause any REMIC included in the Trust Fund to fail to
qualify as a REMIC.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of
each Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) reduce the aforesaid
percentage of Certificates of any Class the Holders of which are required to
consent to any such amendment or (iii) change the percentage specified in clause
(ii) of the first paragraph of Section 11.01 of the Agreement, without the
consent of the Holders of all Certificates of such Class then outstanding.

     The Agreement provides that the Trust Fund will elect to be treated as one
or more "real estate mortgage investment conduits" for federal income tax
purposes (each, a "REMIC"). The Class A Certificates (other than the Class A-R
Certificate), the Class M Certificates and the Class B Certificates will
constitute "regular interests" in a REMIC. The Class A-R Certificate will
constitute the sole class of "residual interest" in each of the REMICs.

     The respective obligations and responsibilities of the Depositor, the
Servicer (except the duty to pay the Trustee's fees and expenses and
indemnification hereunder) and the Trustee shall terminate upon (i) the later of
the final payment or other liquidation (or any Advance with respect thereto) of
the last Mortgage Loan or the disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and the
remittance of all funds due hereunder; or (ii) at the option of the Servicer, on
any Distribution Date which occurs in the month next following a Due Date on
which the aggregate unpaid Principal Balance of all Outstanding Mortgage Loans
is less than 5% of the aggregate unpaid Principal Balance of the Mortgage Loans
on the Cut-off Date, so long as the Servicer deposits or causes to be deposited
in the applicable Collection Account during the Principal Prepayment Period
related to such Distribution Date (and provides notice to the Trustee of its
intention to so deposit on or before the 20th day of such Principal Prepayment
Period) an amount equal to the Purchase Price for each Outstanding Mortgage
Loan, less any unreimbursed Advances made with respect to any Mortgage Loan
(which amount shall offset completely any unreimbursed Advances for which the
Servicer is otherwise entitled to reimbursement), and, with respect to all
property acquired in respect of any Mortgage Loan remaining in the Trust Fund,
an amount equal to the fair market value of such property, as determined by an
appraisal to be conducted by an appraiser selected by the Trustee, less
unreimbursed Advances made with respect to any Mortgage Loan with respect to
which property has been acquired; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from
the death of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James's, living on the date
hereof.

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

____________________________________________Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:

(Signature guaranty)                     _______________________________________
                                         NOTICE: The signature to this
                                         assignment must correspond with the
                                         name as it appears upon the face of the
                                         within Certificate in every particular,
                                         without alteration or enlargement or
                                         any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      D-1

<PAGE>

                                    EXHIBIT E

                           FORM OF CLASS B CERTIFICATE

THIS CLASS B-__ CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
CERTIFICATES AND THE CLASS M CERTIFICATES AS DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR INTEREST"
IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE").

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN CHASE
MORTGAGE FINANCE CORPORATION ("CMFC"), JPMORGAN CHASE BANK, N.A. (THE
"SERVICER") OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER
THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY CMFC, THE SERVICER, THE
TRUSTEE OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE WILL BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                             CLASS B-__ CERTIFICATE

Number:  06-A1-B-__-1                    Original Denomination:
                                         $

Cut-off Date:  August 1, 2006            Final Scheduled
                                         Distribution Date: September 25, 2036

First Distribution Date:                 Aggregate Original Principal
September 25, 2006                       Balance of all Class B-__
                                         Certificates:  $

Certificate Rate:                        CUSIP:

                                       E-1

<PAGE>

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 Series 2006-A1

evidencing an ownership interest in distributions allocable to the Class B-__
Certificates with respect to a pool of conventional one-to four-family mortgage
loans formed and sold by

                       CHASE MORTGAGE FINANCE CORPORATION

     Unless this Certificate is presented by an authorized representative of the
Depository Trust Company, a New York corporation ("DTC"), to the Paying Agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Original
Denomination of all Class B-__ Certificates) in certain distributions with
respect to a pool of conventional one- to four-family first lien mortgage loans
(the "Mortgage Loans") formed and sold by Chase Mortgage Finance Corporation
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by JPMorgan Chase Bank, N.A. (the "Servicer") and
are secured by first liens on Mortgaged Properties. The Trust Fund was created
pursuant to a Pooling and Servicing Agreement (the "Agreement"), dated as of
August 1, 2006 among the Depositor, the Servicer and U.S. Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, Class B-__ (the "Class B-__ Certificates") and is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which Agreement such Holder is bound. Also
issued under the Agreement are Certificates designated as Chase Mortgage Finance
Trust, Multi-Class Mortgage Pass-Through Certificates, Series 2006-A1, Class A
Certificates and Class M Certificates. The rights of the Class B-__
Certificateholders to receive distributions in respect of the Class B
Certificates on any Distribution Date are subordinated to the rights of the
Class A and Class M Certificateholders to receive distributions in respect of
the Class A and Class M Certificates to the extent, and only to the extent, set
forth in the Agreement. The Class A Certificates, the Class M Certificates and
the Class B Certificates are collectively referred to herein as the
"Certificates." Amounts properly distributed to the Class B Certificateholders
pursuant to the Agreement will be deemed released from the Trust Fund, and the
Class B Certificateholders will not in any event be required to refund any such
distributed amounts.

     Pursuant to the terms of the Agreement, the Paying Agent appointed under
Section 4.05 of the Agreement will distribute from funds in the Certificate
Account the amount as described on the reverse hereof on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately
following (the "Distribution Date"), commencing on September 25, 2006. Such
distributions will be made to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
preceding the month in which such payment is made.

                                       E-2

<PAGE>

     Distributions on this Certificate will be made either by check mailed to
the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register, or by wire transfer in immediately available
funds to the account of such Holder at a bank or other financial or depository
institution having appropriate facilities therefor, if such Holder has so
notified the Paying Agent in writing at least 10 Business Days prior to the
first Distribution Date for which distribution by wire transfer is to be made,
and such Holder's Certificates evidence an aggregate original denomination of
not less than $5,000,000 or such Holder holds a 100% Percentage Interest of such
Class. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Paying Agent, of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office of the Paying Agent, for the purpose and specified in such notice of
final distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, or at the office of its designated agent, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such
purpose, the Paying Agent will, subject to the limitations set forth in the
Agreement, authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Paying Agent, of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency of the Paying Agent, for that purpose and
specified in such notice of final distribution.

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

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

                                       E-3

<PAGE>

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly
executed.

Dated: August 22, 2006                           CHASE MORTGAGE FINANCE
                                                 CORPORATION

                                                 By:
                                                     ---------------------------
                                                     Authorized Officer

                                       E-4

<PAGE>

Dated: August 22, 2006                           CERTIFICATE OF AUTHENTICATION

                                                 This is one of the Certificates
                                                 referred to in the
                                                 within-mentioned Agreement.

                                                 JPMORGAN CHASE BANK, N.A.
                                                 as Authenticating Agent

                                                 By:
                                                     ---------------------------
                                                     Authorized Signatory

                                       E-5

<PAGE>

                             REVERSE OF CERTIFICATE

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2006-A1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, issued in one or more Classes of Class A, Class M
and Class B Certificates. The Class A Certificates evidence in the aggregate the
Class A Percentage of distributions relating to repayments of principal and
interest on the Mortgage Loans. The Class M Certificates evidence in the
aggregate the Class M Percentage of distributions relating to repayments of
principal and interest on the Mortgage Loans. The Class B Certificates evidence
in the aggregate the Class B Percentage of distributions relating to repayments
of principal and interest on the Mortgage Loans.

     Following the initial issuance of the Certificates, the Principal Balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current Principal
Balance by inquiry of the Paying Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that neither the Trustee nor the Paying Agent is
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee and the Paying Agent.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the
registration of Certificates and of transfers and exchanges of Certificates.
Upon surrender for registration of transfer of any Certificate at any office or
agency of the Paying Agent, the Paying Agent will, subject to the limitations
set forth in the Agreement, authenticate and deliver, in the name of the
designated transferee or transferees, a Certificate of a like Class and dated
the date of authentication by the Authenticating Agent.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Paying Agent 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 the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor, the Servicer, the Paying Agent nor the Trustee will be affected by
notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC (as hereinafter defined) included in the Trust Fund as a
REMIC, or to make any other provisions with respect to matters or questions
arising under the Agreement which are

                                       E-6

<PAGE>

not materially inconsistent with the provisions of the Agreement, provided that
such action does not, as evidenced by an Opinion of Counsel, adversely affect in
any material respect the interests of any Certificateholder or cause any REMIC
included in the Trust Fund to fail to qualify as a REMIC.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of
each Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) reduce the aforesaid
percentage of Certificates of any Class the Holders of which are required to
consent to any such amendment or (iii) change the percentage specified in clause
(ii) of the first paragraph of Section 11.01 of the Agreement, without the
consent of the Holders of all Certificates of such Class then outstanding.

     The Agreement provides that the Trust Fund will elect to be treated as one
or more "real estate mortgage investment conduits" for federal income tax
purposes (each, a "REMIC"). The Class A Certificates (other than the Class A-R
Certificate), the Class M Certificates and the Class B Certificates will
constitute "regular interests" in a REMIC. The Class A-R Certificate will
constitute the sole class of "residual interest" in each of the REMICs.

     The respective obligations and responsibilities of the Depositor, the
Servicer (except the duty to pay the Trustee's fees and expenses and
indemnification hereunder) and the Trustee shall terminate upon (i) the later of
the final payment or other liquidation (or any Advance with respect thereto) of
the last Mortgage Loan or the disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and the
remittance of all funds due hereunder; or (ii) at the option of the Servicer, on
any Distribution Date which occurs in the month next following a Due Date on
which the aggregate unpaid Principal Balance of all Outstanding Mortgage Loans
is less than 5% of the aggregate unpaid Principal Balance of the Mortgage Loans
on the Cut-off Date, so long as the Servicer deposits or causes to be deposited
in the applicable Collection Account during the Principal Prepayment Period
related to such Distribution Date (and provides notice to the Trustee of its
intention to so deposit on or before the 20th day of such Principal Prepayment
Period) an amount equal to the Purchase Price for each Outstanding Mortgage
Loan, less any unreimbursed Advances made with respect to any Mortgage Loan
(which amount shall offset completely any unreimbursed Advances for which the
Servicers are otherwise entitled to reimbursement), and, with respect to all
property acquired in respect of any Mortgage Loan remaining in the Trust Fund,
an amount equal to the fair market value of such property, as determined by an
appraisal to be conducted by an appraiser selected by the Trustee, less
unreimbursed Advances made with respect to any Mortgage Loan with respect to
which property has been acquired; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from
the death of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James's, living on the date
hereof.

                                       E-7

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________________Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:

(Signature guaranty)                     _______________________________________
                                         NOTICE: The signature to this
                                         assignment must correspond with the
                                         name as it appears upon the face of the
                                         within Certificate in every particular,
                                         without alteration or enlargement or
                                         any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                       E-8

<PAGE>

                                    EXHIBIT F

                          FORM OF CLASS A-R CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN MULTIPLE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN CHASE
MORTGAGE FINANCE CORPORATION ("CMFC"), JPMORGAN CHASE BANK, N.A. (THE
"SERVICER") OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER
THIS CERTIFICATE, THE REMIC RESIDUAL INTERESTS REPRESENTED HEREBY NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY CMFC, THE SERVICER, THE
TRUSTEE OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE
RECEIVED A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS CERTIFICATE TO THE
EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A
PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY PROVISIONS
UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE
SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
(COLLECTIVELY, A "PLAN"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS
CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH PLAN.

TRANSFERABILITY OF THIS CERTIFICATE IS RESTRICTED UNDER THE PROVISIONS OF
SECTION 4.02 OF THE AGREEMENT.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE WILL BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

<PAGE>

                              CLASS A-R CERTIFICATE

Number:  06-A1-A-R-1                      Original Denomination:
                                          $100.00

Cut-off Date: August 1, 2006              Final Scheduled
                                          Distribution Date: September 25, 2036

First Distribution Date:                  Aggregate Original Principal
September 25, 2006                        Balance of Class A-R
                                          Certificate: $100.00

Certificate Rate:                         CUSIP:

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 Series 2006-A1

evidencing an ownership interest in distributions allocable to the Class A-R
Certificate with respect to a pool of conventional one-to four-family mortgage
loans formed and sold by

                       CHASE MORTGAGE FINANCE CORPORATION

     This certifies that JPMORGAN CHASE BANK, N.A. is the registered owner of
the ownership interest (the "Ownership Interest") evidenced by this Certificate
in certain distributions with respect to a pool of conventional one- to
four-family first lien mortgage loans (the "Mortgage Loans") formed and sold by
Chase Mortgage Finance Corporation (hereinafter called the "Depositor"), and
certain other property held in trust for the benefit of Certificateholders
(collectively, the "Trust Fund"). The Mortgage Loans are serviced by JPMorgan
Chase Bank, N.A. (the "Servicer") and are secured by first liens on Mortgaged
Properties. The Trust Fund was created pursuant to a Pooling and Servicing
Agreement (the "Agreement"), dated as of August 1, 2006 among the Depositor, the
Servicer and U.S. Bank National Association, as trustee (the "Trustee"), a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, Class A-R (the "Class A-R Certificate") and is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which Agreement such Holder is bound. Also
issued under the Agreement are Certificates designated as Chase Mortgage Finance
Trust, Multi-Class Mortgage Pass-Through Certificates, Series 2006-A1, Class M
Certificates and Class B Certificates. The Class A Certificates, the Class M
Certificates and the Class B Certificates are collectively referred to herein as
the "Certificates."

     Pursuant to the terms of the Agreement, the Paying Agent will distribute
from funds in the Certificate Account the amount as described on the reverse
hereof on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (the "Distribution Date"), commencing on
September 25, 2006. Such distributions will be made to the Person in whose name
this

                                        2

<PAGE>

Certificate is registered at the close of business on the last Business Day of
the month preceding the month in which such payment is made.

     Distributions on this Certificate will be made either by check mailed to
the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register, or by wire transfer in immediately available
funds to the account of such Holder at a bank or other financial or depository
institution having appropriate facilities therefor, if such Holder has so
notified the Paying Agent in writing at least 10 Business Days prior to the
first Distribution Date for which distribution by wire transfer is to be made,
and such Holder's Certificates evidence an aggregate Original Denomination of
not less than $5,000,000 or such Holder holds a 100% Percentage Interest of such
Class. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Paying Agent, of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office of the Paying Agent, for the purpose and specified in such notice of
final distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, or at the office of its designated agent, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such
purpose, the Paying Agent will, subject to the limitations set forth in the
Agreement, authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Paying Agent of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency of the Agreement, the Paying Agent, for that
purpose and specified in such notice of final distribution.

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

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

                                        3

<PAGE>

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly
executed.

Dated: August 22, 2006                           CHASE MORTGAGE FINANCE
                                                 CORPORATION

                                                 By:
                                                     ---------------------------
                                                     Authorized Officer

                                        4

<PAGE>

Dated: August 22, 2006                           CERTIFICATE OF AUTHENTICATION

                                                 This is one of the Certificates
                                                 referred to in the
                                                 within-mentioned Agreement.

                                                 JPMORGAN CHASE BANK, N.A.
                                                 as Authenticating Agent

                                                 By:
                                                     ---------------------------
                                                     Authorized Signatory

                                        5

<PAGE>

                             REVERSE OF CERTIFICATE

                          CHASE MORTGAGE FINANCE TRUST
                  MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2006-A1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Chase Mortgage Finance Trust, Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, issued in one or more Classes of Class A, Class M
and Class B Certificates. The Class A Certificates evidence in the aggregate the
Class A Percentage of distributions relating to repayments of principal and
interest on the Mortgage Loans. The Class M Certificates evidence in the
aggregate the Class M Percentage of distributions relating to repayments of
principal and interest on the Mortgage Loans. The Class B Certificates evidence
in the aggregate the Class B Percentage of distributions relating to repayments
of principal and interest on the Mortgage Loans.

     Following the initial issuance of the Certificates, the Principal Balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current Principal
Balance by inquiry of the Paying Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that neither the Trustee nor the Paying Agent is
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee and the Paying Agent.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New
York, New York, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the
registration of Certificates and of transfers and exchanges of Certificates.
Upon surrender for registration of transfer of any Certificate at any office or
agency of the Paying Agent, the Paying Agent will, subject to the limitations
set forth in the Agreement, authenticate and deliver, in the name of the
designated transferee or transferees, a Certificate of a like Class and dated
the date of authentication by the Authenticating Agent.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Paying Agent 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 the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor, the Servicer, the Paying Agent nor the Trustee will be affected by
notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC (as hereinafter defined) included in the Trust Fund as a
REMIC, or to make any other provisions with respect to matters or questions
arising under the Agreement which are

<PAGE>

not materially inconsistent with the provisions of the Agreement, provided that
such action does not, as evidenced by an Opinion of Counsel, adversely affect in
any material respect the interests of any Certificateholder or cause any REMIC
included in the Trust Fund to fail to qualify as a REMIC.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of
each Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) reduce the aforesaid
percentage of Certificates of any Class the Holders of which are required to
consent to any such amendment or (iii) change the percentage specified in clause
(ii) of the first paragraph of Section 11.01 of the Agreement, without the
consent of the Holders of all Certificates of such Class then outstanding.

     The Agreement provides that the Trust Fund will elect to be treated as one
or more "real estate mortgage investment conduits" for federal income tax
purposes (each, a "REMIC"). The Class A Certificates (other than the Class A-R
Certificate), the Class M Certificates and the Class B Certificates will
constitute "regular interests" in a REMIC. The Class A-R Certificate will
constitute the sole class of "residual interest" in each of the REMICs.

     The respective obligations and responsibilities of the Depositor, the
Servicer (except the duty to pay the Trustee's fees and expenses and
indemnification hereunder) and the Trustee shall terminate upon (i) the later of
the final payment or other liquidation (or any Advance with respect thereto) of
the last Mortgage Loan or the disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and the
remittance of all funds due hereunder; or (ii) at the option of the Servicer, on
any Distribution Date which occurs in the month next following a Due Date on
which the aggregate unpaid Principal Balance of all Outstanding Mortgage Loans
is less than 5% of the aggregate unpaid Principal Balance of the Mortgage Loans
on the Cut-off Date, so long as the Servicer deposits or causes to be deposited
in the applicable Collection Account during the Principal Prepayment Period
related to such Distribution Date (and provides notice to the Trustee of its
intention to so deposit on or before the 20th day of such Principal Prepayment
Period) an amount equal to the Purchase Price for each Outstanding Mortgage
Loan, less any unreimbursed Advances made with respect to any Mortgage Loan
(which amount shall offset completely any unreimbursed Advances for which the
Servicer is otherwise entitled to reimbursement), and, with respect to all
property acquired in respect of any Mortgage Loan remaining in the Trust Fund,
an amount equal to the fair market value of such property, as determined by an
appraisal to be conducted by an appraiser selected by the Trustee, less
unreimbursed Advances made with respect to any Mortgage Loan with respect to
which property has been acquired; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from
the death of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James's, living on the date
hereof.

                                        2

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________________Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:

(Signature guaranty)                     _______________________________________
                                         NOTICE: The signature to this
                                         assignment must correspond with the
                                         name as it appears upon the face of the
                                         within Certificate in every particular,
                                         without alteration or enlargement or
                                         any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                       F-1

<PAGE>

                                    EXHIBIT G

                          FORM OF TRUSTEE CERTIFICATION

                                     [DATE]

     U.S. Bank National Association, as trustee (the "Trustee") under the
Pooling and Servicing Agreement dated as of August 1, 2006 (the "Agreement")
among Chase Mortgage Finance Corporation (the "Company"), the Trustee, and
JPMorgan Chase Bank, N.A., regarding Chase Mortgage Finance Trust, Series
2006-A1, hereby certifies that, except as noted in the Exception Report:

     1. The Trustee or the Custodian on behalf of the Trustee took the Mortgage
Notes and other property in the Trust Fund in good faith for value and without
notice or knowledge (i) of any adverse claims, liens or encumbrances, (ii) that
any Mortgage Note was overdue or had been dishonored or subject to any security
interest or other right or interest therein, or (iii) of any defense against or
claim to the Mortgage Notes or other property in the Trust Fund on the part of
any entity;

     2. The Trustee or the Custodian on behalf of the Trustee received actual
possession of the Mortgage Notes; and

     3. The Trustee or the Custodian on behalf of the Trustee took possession of
the Mortgage Notes in the ordinary course of its business.

     Capitalized words used herein shall have the respective meanings assigned
to them in the Agreement.

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

                                      G-1

<PAGE>

     IN WITNESS WHEREOF, the undersigned executed this Trustee's Certificate as
of the 22nd day of August, 2006.

                                                 U.S. BANK NATIONAL ASSOCIATION,
                                                 as Trustee

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

                                      G-2

<PAGE>

                                    EXHIBIT H

                            FORM OF INVESTMENT LETTER

                              (ACCREDITED INVESTOR)

                                     [DATE]

JPMorgan Chase Bank, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240

JPMorgan Chase Bank, N.A.
Global Trust Services
Four New York Plaza
6th Floor
New York, New York 10004

J.P. Morgan Securities Inc.
270 Park Avenue, 7th Floor
New York, New York 10017

U.S. Bank National Association, as trustee
209 South LaSalle Street, 3rd Floor
Chicago, Illinois 60604
Attn: Corporate Trust Services/CMFT 2006-A1

          Re:  Chase Mortgage Finance Corporation Multi-Class Mortgage
               Pass-Through Certificates, Series 2006-A1, [CLASS B- ]

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from ________________
_________ (the "Transferor") $_______ by original principal balance (the
"Transferred Certificates") of Multi-Class Mortgage Pass-Through Certificates,
Series 2006-A1, [CLASS B- ] (the "Certificates"), issued pursuant to a pooling
and servicing agreement, dated as of August 1, 2006 (the "Pooling and Servicing
Agreement"), among Chase Mortgage Finance Corporation (the "Depositor"),
JPMorgan Chase Bank, N.A. ("Chase"), as servicer and custodian, JPMorgan Chase
Bank, N.A., as paying agent and U.S. Bank National Association, as trustee (the
"Trustee"). [THE PURCHASER INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE IN
THE NAME OF ____________________, AS NOMINEE FOR __________________.] All terms
used and not otherwise defined herein shall have the meanings set forth in the
Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

                                      H-1

<PAGE>

     1. The Purchaser understands that (a) the Certificates have not been
registered or qualified under the Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state, (b) neither the
Depositor nor the Trustee is required, and neither of them intends, to so
register or qualify the Certificates, (c) the Certificates cannot be resold
unless (i) they are registered and qualified under the Securities Act and the
applicable state securities laws or (ii) an exemption from registration and
qualification is available and (d) the Pooling and Servicing Agreement contains
restrictions regarding the transfer of the Certificates.

     2. The Certificates will bear a legend to the following effect:

     THIS CLASS B CERTIFICATE HAS NOT AND WILL NOT BE REGISTERED UNDER THE
     SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
     MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN
     TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER
     APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
     OF SECTION 4.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

     [THIS LEGEND WILL APPEAR ON THE CERTIFICATE ONLY IF SUCH CERTIFICATE IS AN
     ERISA RESTRICTED CERTIFICATE.] NO TRANSFER OF THIS CERTIFICATE SHALL BE
     MADE UNLESS THE DEPOSITOR SHALL HAVE RECEIVED (A) A REPRESENTATION LETTER
     FROM THE TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE
     IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
     RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
     SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
     (THE "CODE"), OR A PLAN SUBJECT TO ANY PROVISIONS UNDER ANY FEDERAL, STATE,
     LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR
     TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW")
     (COLLECTIVELY, A "PLAN"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS
     CERTIFICATE FOR, ON BEHALF OF OR WITH ANY ASSETS OF ANY SUCH PLAN, (B) IF
     THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A
     REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS AN INSURANCE
     COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE
     COMPANY GENERAL ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED
     TRANSACTION CLASS EXEMPTION ("PTCE") 95-60 AND THE ACQUISITION AND HOLDING
     OF THE CERTIFICATE ARE COVERED AND EXEMPT UNDER SECTIONS I AND III OF PTCE
     95-60 OR (C) SOLELY IN THE CASE OF A DEFINITIVE CERTIFICATE, AN OPINION OF
     COUNSEL SATISFACTORY TO THE DEPOSITOR, AND UPON WHICH THE DEPOSITOR SHALL
     BE ENTITLED TO RELY, TO THE EFFECT THAT THE ACQUISITION AND HOLDING OF THIS
     CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN
     A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR THE CODE OR A VIOLATION
     OF SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE, THE DEPOSITOR OR THE
     SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES
     IN THE POOLING AND SERVICING AGREEMENT, WHICH

                                      H-2

<PAGE>

     OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE DEPOSITOR OR
     THE SERVICER.

     3. The Purchaser is acquiring the Transferred Certificates for its own
account [for investment only]*/ and not with a view to or for sale or other
transfer in connection with any distribution of the Transferred Certificates in
any manner that would violate the Securities Act or any applicable state
securities laws, subject, nevertheless, to the understanding that disposition of
the Purchaser's property shall at all times be and remain within its control.

     4. The Purchaser (a) is a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters, and in
particular in such matters related to securities similar to the Certificates,
such that it is capable of evaluating the merits and risks of investment in the
Certificates, (b) is able to bear the economic risks of such an investment and
(c) is an "accredited investor" within the meaning of Rule 501(a) promulgated
pursuant to the Securities Act.

     5. The Purchaser will not nor has it authorized nor will it authorize any
Person to (a) offer, pledge, sell, dispose of or otherwise transfer any
Certificate, any interest in any Certificate or any other similar security to
any Person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c)
otherwise approach or negotiate with respect to any Certificate, any interest in
any Certificate or any other similar security with any person in any manner, (d)
make any general solicitation by means of general advertising or in any other
manner, or (e) take any other action, that would constitute a distribution of
any Certificate under the Securities Act or the Investment Company Act of 1940,
as amended (the "1940 Act"), that would render the disposition of any
Certificate a violation of Section 5 of the Securities Act or any state
securities law, or that would require registration or qualification pursuant
thereto. Neither the Purchaser nor anyone acting on its behalf has offered the
Certificates for sale or made any general solicitation by means of general
advertising or in any other manner with respect to the Certificates. The
Purchaser will not sell or otherwise transfer any of the Certificates, except in
compliance with the provisions of the Pooling and Servicing Agreement.

     6. If the Purchaser is acquiring ERISA Restricted Certificates, the
Purchaser is not a Plan and is not acquiring the ERISA Restricted Certificates
for, on behalf of or with any assets of any such Plan, except as may be
permitted in accordance with Section 4.02(d) of the Pooling and Servicing
Agreement.

     7. Prior to the sale or transfer by the Purchaser of any of the
Certificates, the Purchaser will obtain from any subsequent purchaser
substantially the same certifications, representations, warranties and covenants
contained in the foregoing paragraphs and in this letter or a letter
substantially in the form of Exhibit I to the Pooling and Servicing Agreement.

     8. The Purchaser agrees to indemnify the Trustee, the Servicer and the
Depositor against any liability that may result from any misrepresentation made
herein.

     9. The Purchaser has received such information as Purchaser deems necessary
in order to make its investment decision.

                                Very truly yours,

                                   [PURCHASER]

----------
*/   Not required of a broker/dealer purchaser.

                                      H-3

<PAGE>

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

                                      H-4

<PAGE>

                                    EXHIBIT I

                       FORM OF RULE 144A INVESTMENT LETTER

                         (QUALIFIED INSTITUTIONAL BUYER)

                                     [DATE]

JPMorgan Chase Bank, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240

JPMorgan Chase Bank, N.A.
Global Trust Services
Four New York Plaza
6th Floor
New York, New York 10004

J.P. Morgan Securities Inc.
270 Park Avenue, 7th Floor
New York, New York 10017

U.S. Bank National Association, as trustee
209 South LaSalle Street, 3rd Floor
Chicago, Illinois 60604
Attn: Corporate Trust Services/CMFT 2006-A1

          Re:  Chase Mortgage Finance Corporation, Multi-Class Mortgage
               Pass-Through Certificates, Series 2006-A1, [CLASS B- ]

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from
_________________________ (the "Transferor") $_______ by original principal
balance (the "Transferred Certificates") of Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, [CLASS B-] (the "Certificates"), issued pursuant
to a pooling and servicing agreement, dated as of August 1, 2006 (the "Pooling
and Servicing Agreement"), among Chase Mortgage Finance Corporation (the
"Depositor"), JPMorgan Chase Bank, N.A. ("Chase"), as servicer (the "Servicer"),
and U.S. Bank National Association, as trustee (the "Trustee"). [THE PURCHASER
INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE IN THE NAME OF
____________________, AS NOMINEE FOR __________________.] All terms used and not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

                                       I-1

<PAGE>

In connection with our acquisition of the above Transferred Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Transferred Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Transferred Certificates, (d) solely with respect to an
ERISA Restricted Certificate, we (A) are not an employee benefit plan within the
meaning of Title I of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code") or a plan subject to any provisions under any
federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to the foregoing provisions of ERISA or the Code ("Similar
Law") (collectively, a "Plan"), and is not directly or indirectly acquiring the
Certificate for, on behalf of or with any assets of any such Plan, (B) if the
Certificate has been the subject of an ERISA-Qualifying Underwriting, are an
insurance company that is acquiring the Certificate with assets of an "insurance
company general account" as defined in Section V(e) of Prohibited Transaction
Class Exemption 95-60 ("PTCE 95-60"), and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or
(C) solely in the case of a Definitive Certificate, will deliver herewith an
Opinion of Counsel satisfactory to the Depositor and the Trustee, and upon which
the Depositor and the Trustee shall be entitled to rely, to the effect that the
acquisition and holding of this Certificate by the prospective transferee will
not constitute or result in a nonexempt prohibited transaction under ERISA or
the Code or a violation of Similar Law and will not subject the Trustee, the
Depositor or the Servicer to any obligation in addition to those undertaken by
such entities in the Pooling and Servicing Agreement, which Opinion of Counsel
shall not be an expense of the Trustee, the Depositor or the Servicer,(e) we
have not, nor has anyone acting on our behalf offered, transferred, pledged,
sold or otherwise disposed of the Certificates, any interest in the Certificates
or any other similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Certificates, any interest in the
Certificates or any other similar security from, or otherwise approached or
negotiated with respect to the Certificates, any interest in the Certificates or
any other similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Certificates under
the Securities Act or that would render the disposition of the Certificates a
violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will act, nor has authorized or will authorize any person to act,
in such manner with respect to the Certificates, (f) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act and have completed one of the forms of certification to that effect attached
hereto as Annex 1 or Annex 2. We are aware that the sale of the Transferred
Certificates to us is being made in reliance on Rule 144A. We are acquiring the
Transferred Certificates for our own account or for resale pursuant to Rule 144A
and further understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed by us, based upon
certifications of such purchaser or information we have in our possession, to be
a qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the Securities Act. We
have received such information as we deem necessary in order to make our
investment decision.

                                      I-2

<PAGE>

     We agree to indemnify the Trustee, the Servicer and the Depositor against
any liability that may result from any misrepresentation made herein.

                                                 Very truly yours,

                                                 [PURCHASER]

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

                                      I-3

<PAGE>

                                                                         ANNEX 1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [FOR TRANSFEREES OTHER THAN REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

     2. In connection with the purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $____________*/ in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

          ____ Corporation, etc. The Buyer is a corporation (other than a bank,
               savings and loan association or similar institution),
               Massachusetts or similar business trust, partnership, or
               charitable organization described in Section 501(c)(3) of the
               Internal Revenue Code of 1986, as amended.

          ____ Bank. The Buyer (a) is a national bank or banking institution
               organized under the laws of any State, territory or the District
               of Columbia, the business of which is substantially confined to
               banking and is supervised by Federal, State or territorial
               banking commission or similar official or is a foreign bank or
               equivalent institution, and (b) has an audited net worth of at
               least $25,000,000 as demonstrated in its latest annual financial
               statements, a copy of which is attached hereto.

          ____ Savings and Loan. The Buyer (a) is a savings and loan
               association, building and loan association, cooperative bank,
               homestead association or similar institution, which is supervised
               and examined by a State or Federal authority having supervision
               over such institution or is a foreign savings and loan
               association or equivalent institution and (b) has an audited net
               worth of at least $25,000,000 as demonstrated in its latest
               annual financial statements, a copy of which is attached hereto.

          ____ Broker-dealer. The Buyer is a dealer registered pursuant to
               Section 15 of the Securities Exchange Act of 1934, as amended.

----------
*    Buyer must own and/or invest on a discretionary basis at least $100,000,000
     in securities unless Buyer is a dealer, and, in that case, Buyer must own
     and/or invest on a discretionary basis at least $10,000,000 in securities.

                                      I-4

<PAGE>

          ____ Insurance Company. The Buyer is an insurance company whose
               primary and predominant business activity is the writing of
               insurance or the reinsuring of risks underwritten by insurance
               companies and which is subject to supervision by the insurance
               commissioner or a similar official or agency of the State,
               territory or the District of Columbia.

          ____ State or Local Plan. The Buyer is a plan established and
               maintained by a State, its political subdivisions, or any agency
               or instrumentality of the State or its political subdivisions,
               for the benefit of its employees.

          ____ ERISA Plan. The Buyer is an employee benefit plan within the
               meaning of Title I of the Employee Retirement Income Security Act
               of 1974, as amended.

          ____ Investment Advisor. The Buyer is an investment advisor registered
               under the Investment Advisors Act of 1940, as amended.

          ____ Small Business Investment Company. Buyer is a small business
               investment company licensed by the U.S. Small Business
               Administration under Section 301(c) or (d) of the Small Business
               Investment Act of 1958, as amended.

          ____ Business Development Company. Buyer is a business development
               company as defined in Section 202(a)(22) of the Investment
               Advisors Act of 1940, as amended.

     3. The term "securities" as used for purposes of the calculation of the
dollar amount in paragraph 2 excludes: (i) securities of issuers that are
affiliated with the Buyer, (ii) securities that are part of an unsold allotment
to or subscription by the Buyer, if the Buyer is a dealer, (iii) securities
issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi)
repurchase agreements, (vii) securities owned but subject to a repurchase
agreement and (viii) currency, interest rate and commodity swaps.

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

     5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

     6. Until the date of purchase of the Rule 144A Securities, the Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan as

                                      I-5

<PAGE>

provided above, the Buyer agrees that it will furnish to such parties updated
annual financial statements promptly after they become available.

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

                                      I-6

<PAGE>

                                                                         ANNEX 2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [FOR TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A"), because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

     2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

          _____ The Buyer owned $___________ in securities (other than the
                excluded securities referred to below) as of the end of the
                Buyer's most recent fiscal year (such amount being calculated in
                accordance with Rule 144A).

          _____ The Buyer is part of a Family of Investment Companies which
                owned in the aggregate $__________ in securities (other than the
                excluded securities referred to below) as of the end of the
                Buyer's most recent fiscal year (such amount being calculated in
                accordance with Rule 144A).

     3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

     4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

     5. The Buyer is familiar with Rule 144A and understands that the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates are relying and will continue to rely on the

                                      I-7

<PAGE>

statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

     6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

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

                                         IF AN ADVISER:

                                         ---------------------------------------
                                         Print Name of Buyer

                                         Date:
                                               ---------------------------------

                                      I-8

<PAGE>

                                    EXHIBIT J

             FORM OF SPECIAL SERVICING AND COLLATERAL FUND AGREEMENT

     This SPECIAL SERVICING AND COLLATERAL FUND AGREEMENT (the "Agreement") is
made and entered into as of [DATE], between JPMorgan Chase Bank, N.A., (the
"Company") and _____________________ (the "Purchaser").

                              PRELIMINARY STATEMENT

     __________________ (the "Owner") is the holder of the entire interest in
Chase Mortgage Finance Corporation Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, Class B-5 (the "Class B-5 Certificates"). The
Class B-5 Certificates were issued pursuant to a Pooling and Servicing Agreement
dated as of August 1, 2006 (the "Pooling and Servicing Agreement") among Chase
Mortgage Finance Corporation, (the "Company"), JPMorgan Chase Bank, N.A. as
servicer thereunder (the "Servicer") and U.S. Bank National Association, as
trustee (the "Trustee").

     The Owner intends to resell all of the Class B-5 Certificates directly to
the Purchaser on or promptly after the date hereof.

     In connection with such sale, the parties hereto have agreed that the
Company, as Servicer, will engage in certain special servicing procedures
relating to foreclosures for benefit of the Purchaser, and that the Purchaser
will deposit funds in a collateral fund to cover any losses attributable to such
procedures as well as all advances and costs in connection therewith, as set
forth herein.

     In consideration of the mutual agreements herein contained, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Purchaser
agree to the following:

                                    ARTICLE I

                                   DEFINITIONS

     Section 1.01 Defined Terms.

     Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

     Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day
on which banking institutions in the State of New York are required or
authorized by law or executive order to be closed.

     Collateral Fund: The fund established and maintained pursuant to Section
3.01 hereof.

     Collateral Fund Permitted Investments: Either: (i) obligations of, or
obligations fully guaranteed as to principal and interest by, the United States,
or any agency or instrumentality thereof, provided such obligations are backed
by the full faith and credit of the United States, (ii) a money market fund
rated in the highest rating category by a nationally recognized rating agency
selected by the Company, (iii) cash, (iv) mortgage pass-through certificates
issued or guaranteed by GNMA, FNMA or FHLMC, (v) commercial paper (including
both non-interest bearing discount obligations and interest bearing obligations
payable on demand or on a specified date), the issuer of which may be an
affiliate of the Company, having at the time of such investment a rating of at
least Prime-1 by Moody's Investors

                                      J-1

<PAGE>

Service, Inc. ("Moody's") or at least D-1 by Fitch Ratings and (vi) demand and
time deposits in, certificates of deposit of, any depository institution or
trust company (which may be an affiliate of the Company) incorporated under the
laws of the United States of America or any state thereof and subject to
supervision and examination by federal and/or state banking authorities, so long
as at the time of such investment either (x) the long-term debt obligations of
such depository institution or trust company have a rating of at least Aa by
Moody's or at least AA by Fitch Ratings or (y) the certificate of deposit or
other unsecured short-term debt obligations of such depository institution or
trust company have a rating of at least A-1 by Fitch Ratings or Prime-1 by
Moody's and, for each of the preceding clauses (i), (iv), (v) and (vi), the
maturity thereof shall be not later than the earlier to occur of (A) 30 days
from the date of the related investment and (B) the next succeeding Distribution
Date.

     Commencement of Foreclosure: The first official action required under local
law in order to commence foreclosure proceedings or to schedule a trustee's sale
under a deed of trust, including (i) in the case of a mortgage, any filing or
service of process necessary to commence an action to foreclose, or (ii) in the
case of a deed of trust, the posting, publishing, filing or delivery of a notice
of sale, but not including in either case (x) any notice of default, notice of
intent to foreclose or sell or any other action prerequisite to the actions
specified in (i) or (ii) above and upon the consent of the Purchaser which will
be deemed given unless expressly withheld within two Business Days of
notification, (y) the acceptance of a deed-in-lieu of foreclosure (whether in
connection with a sale of the related property or otherwise) or (z) initiation
and completion of a short pay-off.

     Current Appraisal: With respect to any Mortgage Loan as to which the
Purchaser has made an Election to Delay Foreclosure, an appraisal of the related
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan), obtained by the Purchaser at its expense from an appraiser (which shall
not be an affiliate of the Purchaser) acceptable to the Company as nearly
contemporaneously as practicable to the time of the Purchaser's election,
prepared based on the Company's customary requirements for such appraisals.

     Election to Delay Foreclosure: Any election by the Purchaser to delay the
Commencement of Foreclosure, made in accordance with Section 2.02(b).

     Election to Foreclose: Any election by the Purchaser to proceed with the
Commencement of Foreclosure, made in accordance with Section 2.03(a).

     Required Collateral Fund Balance: As of any date of determination, an
amount equal to the aggregate of all amounts previously required to be deposited
in the Collateral Fund pursuant to Section 2.02(d) (after adjustment for all
withdrawals and deposits pursuant to Section 2.02(e)) and Section 2.03(b) (after
adjustment for all withdrawals and deposits pursuant to Section 2.03(c)) and
Section 3.03 to be reduced by all withdrawals therefrom pursuant to Section
2.02(g) and Section 2.03(d).

     Section 1.02. Definitions Incorporated by Reference.

     All capitalized terms not otherwise defined in this Agreement shall have
the meanings assigned in the Pooling and Servicing Agreement.

                                      J-2

<PAGE>

                                   ARTICLE II

                          SPECIAL SERVICING PROCEDURES

     Section 2.01 Reports and Notices.

     1. In connection with the performance of its duties under the Pooling and
Servicing Agreement relating to the realization upon defaulted Mortgage Loans,
the Company, as Servicer, shall provide to the Purchaser the following notices
and reports:

          (a)  Within five Business Days after each Distribution Date (or
               included in or with the monthly statement to Certificateholders
               pursuant to the Pooling and Servicing Agreement), the Company
               shall provide to the Purchaser a report indicating for the Trust
               the number of Mortgage Loans that are (A) thirty days, (B) sixty
               days, (C) ninety days or more delinquent or (D) in foreclosure,
               and indicating for each such Mortgage Loan the outstanding
               principal balance.

          (b)  Prior to the Commencement of Foreclosure in connection with any
               Mortgage Loan, the Company shall provide the Purchaser with a
               notice (sent by telecopier) of such proposed and imminent
               foreclosure, stating the loan number and the aggregate amount
               owing under the Mortgage Loan.

     2. If requested by the Purchaser, the Company shall make its servicing
personnel available (during their normal business hours) to respond to
reasonable inquiries by the Purchaser in connection with any Mortgage Loan
identified in a report under subsection (a)(i)(B), (a)(i)(C), (a)(i)(D) or
(a)(ii) which has been given to the Purchaser; provided, that (1) the Company
shall only be required to provide information that is readily accessible to its
servicing personnel and is non-confidential and (2) the Company shall not be
required to provide any written information under this subsection.

     3. In addition to the foregoing, the Company shall provide to the Purchaser
such information as the Purchaser may reasonably request concerning each
Mortgage Loan that is at least sixty days delinquent and each Mortgage Loan
which has become real estate owned, through the final liquidation thereof;
provided that the Company shall only be required to provide information that is
readily accessible to its servicing personnel and is non-confidential.

          (a)  With respect to all Mortgage Loans which are serviced at any time
               by the Company through a Subservicer, the Company shall be
               entitled to rely for all purposes hereunder, including for
               purposes of fulfilling its reporting obligations under this
               Section 2.01 on the accuracy and completeness of any information
               provided to it by the applicable Subservicer.

     Section 2.02 Purchaser's Election to Delay Foreclosure Proceedings.

     1. The Purchaser directs the Company that in the event that the Company
does not receive written notice of the Purchaser's election pursuant to
subsection (b) below within 24 hours (exclusive of any intervening non-Business
Days) of transmission of the notice provided by the Company under Section
2.01(a)(ii), subject to extension as set forth in Section 2.02(b), the Company
shall proceed with the Commencement of Foreclosure in respect of such Mortgage
Loan in accordance with its normal foreclosure policies without further notice
to the Purchaser. Any foreclosure that has been initiated may be discontinued
(i) without notice to the Purchaser, if the Mortgage Loan has been brought
current or if a refinancing or prepayment occurs with respect to the Mortgage
Loan (including by means of a short payoff approved by the Company) (ii) with
notice to the Purchaser if the Company has reached the terms of a forbearance
agreement with the borrower. In such latter case the Company may complete such

                                      J-3

<PAGE>

forbearance agreement unless instructed otherwise by the Purchaser within one
Business Day of notification.

     2. In connection with any Mortgage Loan with respect to which a notice
under Section 2.01(a)(ii) has been given to the Purchaser, the Purchaser may
elect, for reasonable cause as determined by the Purchaser, to instruct the
Company to delay the Commencement of Foreclosure until such term as the
Purchaser determines that the Company may proceed with the Commencement of
Foreclosure. Such election must be evidenced by written notice received within
24 hours (exclusive of any intervening non-Business Days) of transmission of the
notice provided by the Company under Section 2.01(a)(ii). Such 24 hour period
shall be extended for no longer than an additional four Business Days after the
receipt of the information if the Purchaser requests additional information
related to such foreclosure; provided, however that the Purchaser will have at
least one Business Day to respond to any requested additional information. Any
such additional information shall (i) not be confidential in nature and (ii) be
obtainable by the Company from existing reports, certificates or statements or
otherwise be readily accessible to its servicing personnel. The Purchaser agrees
that it has no right to deal with the Mortgagor. If the Company's normal
foreclosure policy includes acceptance of a deed-in-lieu of foreclosure or short
payoff, the Purchaser will be notified and given one Business Day to respond.

     3. With respect to any Mortgage Loan as to which the Purchaser has made an
Election to Delay Foreclosure, the Purchaser shall obtain a Current Appraisal as
soon as practicable, and shall provide the Company with a copy of such Current
Appraisal.

     4. Within two Business Days of making any Election to Delay Foreclosure,
the Purchaser shall remit by wire transfer to the Company, for deposit in the
Collateral Fund, an amount, as calculated by the Company, equal to the sum of
(i) 125% of the greater of the outstanding Principal Balance of the Mortgage
Loan and the value shown in the Current Appraisal referred to in subsection (c)
above (or, if such Current Appraisal has not yet been obtained, the Company's
estimate thereof, in which case the required deposit under this subsection shall
be adjusted upon obtaining of such Current Appraisal), and (ii) three months'
interest on the Mortgage Loan at the applicable Mortgage Rate. If any Election
to Delay Foreclosure extends for a period in excess of three months (such excess
period being referred to herein as the "Excess Period"), the Purchaser shall
remit by wire transfer in advance to the Company for deposit in the Collateral
Fund the amount, as calculated by the Company, equal to interest on the Mortgage
Loan at the applicable Mortgage Rate for the Excess Period. The terms of this
Agreement shall no longer apply to the servicing of any Mortgage Loan upon the
failure of the Purchaser to deposit the above amounts relating to the Mortgage
Loan within two Business Days of the Election to Delay Foreclosure.

     5. With respect to any Mortgage Loan as to which the Purchaser has made an
Election to Delay Foreclosure, the Company may withdraw from the Collateral Fund
from time to time amounts necessary to reimburse the Company for all Advances
and Liquidation Expenses thereafter made by the Company as Servicer in
accordance with the Pooling and Servicing Agreement. To the extent that the
amount of any such Liquidation Expense is determined by the Company based on
estimated costs, and the actual costs are subsequently determined to be higher,
the Company may withdraw the additional amount from the Collateral Fund. In the
event that the Mortgage Loan is brought current by the Mortgagor and the
foreclosure action is discontinued, the amounts so withdrawn from the Collateral
Fund shall be redeposited therein as and to the extent that reimbursement
therefor from amounts paid by the Mortgagor is not prohibited pursuant to the
Pooling and Servicing Agreement. Except as provided in the preceding sentence,
amounts withdrawn from the Collateral Fund to cover Advances and Liquidation
Expenses shall not be redeposited therein or otherwise reimbursed to the
Purchaser. If and when any such Mortgage Loan is brought current by the
Mortgagor, all amounts remaining in the Collateral Fund in respect of such

                                      J-4

<PAGE>

Mortgage Loan (after adjustment for all withdrawals and deposits pursuant to
this subsection) shall be released to the Purchaser.

     6. With respect to any Mortgage Loan as to which the Purchaser has made an
Election to Delay Foreclosure, the Company shall continue to service the
Mortgage Loan in accordance with its customary procedures (other than the delay
in Commencement of Foreclosure as provided herein). If and when the Purchaser
shall notify the Company that it believes that it is appropriate to do so, the
Company shall proceed with the Commencement of Foreclosure. In any event, if the
Mortgage Loan is not brought current by the Mortgagor by the time the loan
becomes 6 months delinquent, the Purchaser's election shall no longer be
effective and at the Purchaser's option, either (i) the Purchaser shall purchase
the Mortgage Loan from the Trust Fund at a purchase price equal to the fair
market value as shown on the Current Appraisal, to be paid by (x) applying any
balance in the Collateral Fund to such purchase price, and (y) to the extent of
any deficiency, by wire transfer of immediately available funds to the Company
or Trustee; or (ii) the Company shall proceed with the Commencement of
Foreclosure.

     7. Upon the occurrence of a liquidation with respect to any Mortgage Loan
as to which the Purchaser made an Election to Delay Foreclosure and as to which
the Company proceeded with the Commencement of Foreclosure in accordance with
subsection (f) above, the Company shall calculate the amount, if any, by which
the value shown on the Current Appraisal obtained under subsection (c) exceeds
the actual sales price obtained for the related Mortgaged Property (or stock
allocated to a dwelling unit in the case of a Co-op Loan) (net of Liquidation
Expenses and accrued interest related to the extended foreclosure period), and
the Company shall withdraw the amount of such excess from the Collateral Fund,
shall remit the same to the Trust Fund and in its capacity as Servicer shall
apply such amount as additional Liquidation Proceeds pursuant to the Pooling and
Servicing Agreement. After making such withdrawal, all amounts remaining in the
Collateral Fund in respect of such Mortgage Loan (after adjustment for all
withdrawals and deposits pursuant to subsection (e)) shall be released to the
Purchaser.

     Section 2.03 Purchaser's Election to Commence Foreclosure Proceedings.

     1. In connection with any Mortgage Loan identified in a report under
Section 2.01(a)(i)(B), the Purchaser may elect, for reasonable cause as
determined by the Purchaser, to instruct the Company to proceed with the
Commencement of Foreclosure as soon as practicable. Such election must be
evidenced by written notice received by the Company by 5:00 p.m., New York City
time, on the third Business Day following the delivery of such report under
Section 2.01(a)(i).

     2. Within two Business Days of making any Election to Foreclose, the
Purchaser shall remit to the Company, for deposit in the Collateral Fund, an
amount, as calculated by the Company, equal to 125% of the current Principal
Balance of the Mortgage Loan and three months' interest on the Mortgage Loan at
the applicable Mortgage Rate. If and when any such Mortgage Loan is brought
current by the Mortgagor, all amounts in the Collateral Fund in respect of such
Mortgage Loan shall be released to the Purchaser. The terms of this Agreement
shall no longer apply to the servicing of any Mortgage Loan upon the failure of
the Purchaser to deposit the above amounts relating to the Mortgage Loans within
two Business Days at the Election to Foreclose.

     3. With respect to any Mortgage Loan as to which the Purchaser has made an
Election to Foreclose, the Company shall continue to service the Mortgage Loan
in accordance with its customary procedures (other than to proceed with the
Commencement of Foreclosure as provided herein). In connection therewith, the
Company shall have the same rights to make withdrawals for Advances and
Liquidation Expenses from the Collateral Fund as are provided under Section
2.02(e), and the Company shall make reimbursements thereto to the limited extent
provided under such subsection. The Company shall not be required to proceed
with the Commencement of Foreclosure if (i) the same is stayed as a result of
the Mortgagor's bankruptcy or is otherwise barred by applicable law, or to the
extent that all

                                      J-5

<PAGE>

legal conditions precedent thereto have not yet been complied with or (ii) the
Company believes there is a breach of representation or warranties by the
Company, which may result in a repurchase or substitution of such Mortgage Loan,
or (iii) the Company reasonably believes the Mortgaged Property (or Underlying
Mortgaged Property, in the case of a Co-op Loan) may be contaminated with or
affected by hazardous wastes or hazardous substances (and the Company supplies
the Purchaser with information supporting such belief). The Company will
repurchase or substitute a Mortgage Loan pursuant to the preceding clause (ii)
within the time period specified in the Pooling and Servicing Agreement. Any
foreclosure that has been initiated may be discontinued (i) without notice to
the Purchaser if the Mortgage Loan has been brought current or if a refinancing
or prepayment occurs with respect to the Mortgage Loan (including by means of a
short payoff approved by the Company), or (ii) with notice to the Purchaser if
the Company has reached the terms of a forbearance agreement unless instructed
otherwise by the Purchaser within two Business Days of notification.

     4. Upon the occurrence of a liquidation with respect to any Mortgage Loan
as to which the Purchaser made an Election to Foreclose and as to which the
Company proceeded with the Commencement of Foreclosure in accordance with
subsection (c) above, the Company shall calculate the amount, if any, by which
the Principal Balance of the Mortgage Loan at the time of liquidation (plus all
unreimbursed Advances and Liquidation Expenses in connection therewith other
than those paid from the Collateral Fund) exceeds the actual sales price
obtained for the related Mortgaged Property (or stock allocated to a dwelling
unit in the case of a Co-op Loan), and the Company shall withdraw the amount of
such excess from the Collateral Fund, shall remit the same to the Trust Fund and
in its capacity as Servicer shall apply such amount as additional Liquidation
Proceeds pursuant to the Pooling and Servicing Agreement. After making such
withdrawal, all amounts remaining in the Collateral Fund (after adjustment for
all withdrawals and deposits pursuant to subsection (c)) in respect of such
Mortgage Loan shall be released to the Purchaser.

     Section 2.04 Termination.

     1. With respect to all Mortgage Loans included in the Trust Fund, the
Purchaser's rights to make any Election to Delay Foreclosure or any Election to
Foreclose and the Company's obligations under Section 2.01 shall terminate (i)
at such time as the Certificate Principal Balance of the Class B-5 Certificates
has been reduced to zero, (ii) if the greater of (x) ___% (or such lower or
higher percentages that represents the Company's actual historical loss
experience with respect to the Mortgage Loans in the related pool) of the
aggregate principal balance of all Mortgage Loans that are in foreclosure or are
more than 90 days delinquent on a contractual basis and REO properties or if the
aggregate amount that the Company estimates will be required to be withdrawn
from the Collateral Fund with respect to Mortgage Loans as to which the
Purchaser has made an Election to Delay Foreclosure or an Election to Foreclose
exceeds (z) the Outstanding Certificate Principal Balance of the Class B-5
Certificates, or (iii) upon any transfer by the Purchaser of any interest (other
than the minority interest therein, but only if the transferee provides written
acknowledgment to the Company of the Purchaser's right hereunder and that such
transferee will have no rights hereunder) in the Class B-5 Certificates (whether
or not such transfer is registered under the Pooling and Servicing Agreement),
including any such transfer in connection with a termination of the Trust Fund.
Except as set forth above, this Agreement and the respective rights, obligations
and responsibilities of the Purchaser and the Company hereunder shall terminate
upon the later to occur of (i) the final liquidation of the last Mortgage Loan
as to which the Purchaser made any Election to Delay Foreclosure or any Election
to Foreclose and the withdrawal of all remaining amounts in the Collateral Fund
as provided herein and (ii) ten (10) Business Day's notice.

     2. Purchaser's rights pursuant to Section 2.02 or 2.03 of this Agreement
shall terminate with respect to a Mortgage loan as to which the Purchaser has
exercised its rights under Section 2.02 or 2.03 hereof, upon Purchaser's failure
to deposit any amounts required pursuant to Section 2.02(d) or 2.03(b).

                                      J-6

<PAGE>

     3. Neither the Servicer nor any of its directors, officers, employees or
agents shall be under any liability for any action taken or for refraining from
the taking of any action in good faith pursuant to this Agreement, or for errors
in judgment; provided, however, that this provision shall not protect the
Servicer or any such Person against any liability which would otherwise be
imposed by reason of willful misfeasance, bad faith or gross negligence in the
performance of duties or by reason of reckless disregard of obligations and
duties hereunder. The Servicer and any director, officer, employee or agent
thereof may rely in good faith on any document of any kind prima facie properly
executed and submitted by an Person respecting any matters arising hereunder.

                                   ARTICLE III

                       COLLATERAL FUND; SECURITY INTEREST

     Section 3.01 Collateral Fund.

     1. Upon receipt from the Purchaser of the initial amount required to be
deposited in the Collateral Fund pursuant to Article 11, the Company shall
establish and maintain with itself as a segregated account on its books and
records an account (the "Collateral Fund"), entitled "JPMorgan Chase Bank, N.A.,
as Servicer, for the benefit of registered holders of Chase Mortgage Finance
Corporation Multi-Class Mortgage Pass-Through Certificates, Series 2006-A1,
Class B-5." Amounts in the Collateral Fund shall continue to be the property of
the Purchaser, subject to the first priority security interest granted hereunder
for the benefit of the Certificate holders, until withdrawn from the Collateral
Fund pursuant to Section 2.02 or 2.03 hereof.

     2. Upon the termination of this Agreement and the liquidation of all
Mortgage Loans as to which the Purchaser has made any Election to Delay
Foreclosure or any Election to Foreclose pursuant to Section 2.04 hereof, the
Company shall distribute to the Purchaser all amounts remaining in the
Collateral Fund together with any investment earnings thereon.

     3. The Collateral Fund shall be an "outside reserve fund" within the
meaning of the REMIC Provisions, beneficially owned by the Purchaser, who shall
report all income, gain or loss with respect thereto. Any amounts transferred
from the Trust Fund to the Collateral Fund shall be deemed to be transferred to
the Purchaser, as beneficial owner of the Collateral Fund. In no event shall the
Purchaser (i) take or cause the Trustee or the Company to take any action that
could cause any REMIC established under the Trust Agreement to fail to qualify
as a REMIC or cause the imposition on any such REMIC of any "prohibited
transaction" or "prohibited contribution" taxes or (ii) cause the Trustee or the
Company to fail to take any action necessary to maintain the status of any such
REMIC as a REMIC.

     Section 3.02. Collateral Fund Permitted Investments.

     1. The Company shall, at the written direction of the Purchaser invest the
funds in the Collateral Fund in Collateral Fund Permitted Investments. Such
direction shall not be changed more frequently than quarterly. In the absence of
any direction, the Company shall select such investments in accordance with the
definition of Collateral Fund Permitted Investments in its discretion.

     2. All income and gain realized from any investment as well as any interest
earned on deposits in the Collateral Fund (net of any losses on such
investments) and any payments of principal made in respect of any Collateral
Fund Permitted Investment shall be deposited in the Collateral Fund upon
receipt. All costs and realized losses associated with the purchase and sale of
Collateral Fund Permitted Investments shall be borne by the Purchaser and the
amount of net realized losses shall be deposited by the Purchaser in the
Collateral Fund. The Company shall periodically (but not more frequently than
monthly) distribute to the Purchaser upon request an amount of cash, to the
extent cash is

                                      J-7

<PAGE>

available therefor in the Collateral Fund, equal to the amount by which the
balance of the Collateral Fund, after giving effect to all other distributions
to be made from the Collateral Fund on such date, exceeds the Required
Collateral Fund Balance. Any amounts so distributed shall be released from the
lien and security interest of this Agreement.

     Section 3.03 Grant of Security Interest.

     1. The Purchaser grants to the Company and the Trustee for the benefit of
the Certificateholders a security interest in and lien on all of the Purchaser's
right, title and interest, whether now owned or hereafter acquired, in and to:
(1) the Collateral Fund, (2) all amounts deposited in the Collateral Fund and
Collateral Fund Permitted Investments in which such amounts are invested (and
the distributions and proceeds of such investments) and (3) all cash and
non-cash proceeds of any of the foregoing, including proceeds of the voluntary
or involuntary conversion thereof (all of the foregoing collectively, the
"Collateral").

     2. The Purchaser acknowledges the lien on and security interest in the
Collateral for the benefit of the Certificateholders. The Purchaser shall take
all actions requested by the Company or the Trustee as may be reasonably
necessary to perfect the security interest created under this Agreement in the
Collateral and cause it to be prior to all other security interests and liens,
including the execution and delivery to the Company for filing of appropriate
financing statements in accordance with applicable law. The Company shall file
appropriate continuation statements, or appoint an agent on its behalf to file
such statements, in accordance with applicable law.

     Section 3.04 Collateral Shortfalls.

     In the event that amounts on deposit in the Collateral Fund at any time are
insufficient to cover any withdrawals therefrom that the Company or the Trustee
is then entitled to make hereunder, the Purchaser shall be obligated to pay such
amounts to the Company or the Trustee immediately upon demand. Such obligation
shall constitute a general corporate obligation of the Purchaser.

                                   ARTICLE IV

                            MISCELLANEOUS PROVISIONS

     Section 4.01 Amendment.

     This Agreement may be amended from time to time by the Company and the
Purchaser by written agreement signed by the Company and the Purchaser.

     Section 4.02 Counterparts.

     This Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
such counterparts shall constitute but one and the same instrument.

     Section 4.03 Governing Law.

     This Agreement shall be construed in accordance with the laws of the State
of New York and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws.

     Section 4.04 Notices.

                                      J-8

<PAGE>

     All demands, notices and direction hereunder shall be in writing or by
telecopy and shall be deemed effective upon receipt to:

in the case of the Company,

                         JPMorgan Chase Bank, N.A.
                         1111 Polaris Parkway
                         Columbus, Ohio 43240

such other address as may hereafter be furnished in writing by the Company, or

in the case of the Purchaser, with respect to notices pursuant to Section 2.01,

                                         [PURCHASER]

                                         _______________________________________
                                         [ADDRESS]
                                         Attn: _________________________________
                                         Phone: ________________________________
                                         Fax: __________________________________

with respect to all other notices pursuant to this Agreement,

                                         _______________________________________
                                         [ADDRESS]

                                         Attn: _________________________________
                                         Phone: ________________________________
                                         Fax: __________________________________

or such other address as may hereafter be furnished in writing by the Purchaser.

     Section 4.05 Severability of Provisions.

     If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever, including regulatory, held
invalid, then such covenants, agreements, provisions or terms shall be deemed
severable from the remaining covenants, agreements, provisions or terms of this
Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement.

     Section 4.06 Successors and Assigns.

     The provisions of this Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of the parties hereto, and all
such provisions shall inure to the benefit of the Certificateholders; provided,
however, that the rights under this Agreement cannot be assigned by the
Purchaser without the consent of the Company.

     Section 4.07 Article and Section Headings.

     The article and section headings herein are for convenience of reference
only, and shall not limit or otherwise affect the meaning hereof.

                                      J-9

<PAGE>

     Section 4.08 Confidentiality.

     The Purchaser agrees that all information supplied by or on behalf of the
Company pursuant to Sections 2.01 or 2.02, including individual account
information, is the property of the Company and the Purchaser agrees to hold
such information confidential and not to disclose such information.

                                      J-10

<PAGE>

     IN WITNESS WHEREOF, the Company and the Purchaser have caused their names
to be signed hereto by their respective officers thereunto duly authorized, all
as of the day and year first above written.

                                         JPMORGAN CHASE BANK, N.A.

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

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

                                      J-11

<PAGE>

                                    EXHIBIT K

                      FORM OF CLASS A-R TRANSFEREE'S LETTER

                CHASE MORTGAGE FINANCE CORPORATION SERIES 2006-A1

                                     [DATE]

Chase Mortgage Finance Corporation
300 Tice Boulevard, Third Floor
Woodcliff Lake, New Jersey 07675

JPMorgan Chase Bank, N.A.
Global Trust Services
Four New York Plaza
6th Floor
New York, New York 10004

U.S. Bank National Association, as trustee
209 South LaSalle Street, 3rd Floor
Chicago, Illinois 60604
Attn: Corporate Trust Services/CMFT 2006-A1

Ladies and Gentlemen:

     We propose to purchase Chase Mortgage Finance Corporation's Multi-Class
Mortgage Pass-Through Certificates, Series 2006-A1, Class A-R, described in the
Prospectus Supplement, dated August [18], 2006 and Prospectus, dated August 17,
2006.

     1. We certify that (a) we are not a disqualified organization, (b) we are
not purchasing such Class A-R Certificate on behalf of a disqualified
organization and (c) we are not an entity that holds such Class A-R Certificate
as nominee to facilitate the clearance and settlement of such securities through
electronic book-entry changes in accounts of participating organizations; for
this purpose the term "disqualified organization" means the United States, any
state or political subdivision thereof, any foreign government, any
international organization, any agency or instrumentality of any of the
foregoing (except any entity treated as other than an instrumentality of the
foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code of
1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

     2. We certify that we are not an employee benefit plan subject to Title I
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a
plan subject to Section 4975 of the Internal Revenue Code of 1986, as amended
(the "Code") or a plan or arrangement subject to any provisions under any
federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to the

                                       K-1

<PAGE>

foregoing provisions of ERISA or the Code (collectively, a "Plan"), and are not
directly or indirectly acquiring the Class A-R Certificate for, on behalf of or
with any assets of any such Plan.

     3. We certify that (a) we have historically paid our debts as they became
due, (b) we intend, and believe that we will be able, to continue to pay our
debts as they become due in the future, (c) we understand that, as beneficial
owner of the Class A-R Certificate, we may incur tax liabilities in excess of
any cash flows generated by the Class A-R Certificate, (d) we intend to pay any
taxes associated with holding the Class A-R Certificate as they become due and
(e) we will not cause income from the Class A-R Certificate to be attributable
to a foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of ours or another U.S. taxpayer.

     4. We acknowledge that we will be the beneficial owner of the Class A-R
Certificate and:*/

          ______ The Class A-R Certificate will be registered in our name.

          ______ The Class A-R Certificate will be held in the name of our
                 nominee, ____________________, which is not a disqualified
                 organization.

     5. Unless Chase Mortgage Finance Corporation ("CMFC") has consented to the
transfer to us by executing the form of Consent affixed hereto as Appendix B, we
certify that we are a U.S. person; for this purpose the term "U.S. Person" means
a citizen or resident of the United States, a corporation or partnership
(unless, in the case of a partnership, Treasury regulations are adopted that
provide otherwise) created or organized in or under the laws of the United
States, any state thereof or the District of Columbia, including an entity
treated as a corporation or partnership for federal income tax purposes, an
estate whose income is subject to Unites States federal income tax regardless of
its source, or a trust if a court within the United States is able to exercise
primary supervision over the administration of such trust, and one or more such
U.S. Persons have the authority to control all substantial decisions of such
trust, (or, to the extent provided in applicable Treasury regulations, certain
trusts in existence on August 20, 1996 which are eligible to elect to be treated
as U.S. Persons). We agree that any breach by us of this certification shall
render the transfer of any interest in the Class A-R Certificate to us
absolutely null and void and shall cause no rights in the Class A-R Certificate
to vest in us.

     6. We agree that in the event that at some future time we wish to transfer
any interest in the Class A-R Certificate, we will transfer such interest in the
Class A-R Certificate only (a) to a transferee that (i) is not a disqualified
organization and is not purchasing such interest in the Class A-R Certificate on
behalf of a disqualified organization, (ii) is a U.S. person and (iii) has
delivered to CMFC a letter in the form of this letter (including the affidavit
appended hereto) and, if requested by CMFC, an opinion of counsel (in a form
acceptable to CMFC) that the proposed transfer will not cause the interest in
the Class A-R Certificate to be held by a disqualified organization or a person
who is not a U.S. person or (b) with the written consent of CMFC.

     7. We hereby designate JPMorgan Chase Bank, N.A. as our fiduciary to act as
the tax matters person for the Series 2006-A1 REMICs.

                                        Very truly yours,

                                        [PURCHASER]
----------
*/   Check appropriate box and if necessary fill in the name of the Transferee's
     nominee.

                                       K-2

<PAGE>

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

Accepted as of _______________, 200_

CHASE MORTGAGE FINANCE CORPORATION

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

                                       K-3

<PAGE>

                                                                      APPENDIX A

Affidavit pursuant to (i) Section 860E(e)(4) of the Internal Revenue Code of
1986, as amended, and (ii) certain provisions of the Pooling and Servicing
Agreement

     Under penalties of perjury, the undersigned declares that the following is
true:

     (1)  He or she is an officer of _________________________ (the
          "Transferee"),

     (2)  the Transferee's Employee Identification number is __________,

     (3)  the Transferee is not a "disqualified organization" (as defined
          below), has no plan or intention of becoming a disqualified
          organization, and is not acquiring any of its interest in the Chase
          Mortgage Finance Corporation, Multi-Class Mortgage Pass-Through
          Certificates, Series 2006-A1, Class A-R on behalf of a disqualified
          organization or any other entity,

     (4)  unless Chase Mortgage Finance Corporation ("CMFC") has consented to
          the transfer to the Transferee by executing the form of Consent
          affixed as Appendix B to the Transferee's Letter to which this
          Certificate is affixed as Appendix A, the Transferee is a "U.S.
          Person" (as defined below),

     (5)  that no purpose of the transfer is to avoid or impede the assessment
          or collection of tax,

     (6)  the Transferee has historically paid its debts as they became due,

     (7)  the Transferee intends, and believes that it will be able, to continue
          to pay its debts as they become due in the future,

     (8)  the Transferee understands that, as beneficial owner of the Class A-R
          Certificate, it may incur tax liabilities in excess of any cash flows
          generated by the Class A-R Certificate,

     (9)  the Transferee intends to pay any taxes associated with holding the
          Class A-R Certificate as they become due,

     (10) the Transferee consents to any amendment of the Pooling and Servicing
          Agreement that shall be deemed necessary by CMFC (upon advice of
          counsel) to constitute a reasonable arrangement to ensure that the
          Class A-R Certificate will not be owned directly or indirectly by a
          disqualified organization, and

     (11) IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
          transfer is not a direct or indirect transfer of the Class A-R
          Certificate to a foreign permanent establishment or fixed base (within
          the meaning of an applicable income tax treaty) of the Transferee, and
          as to each of the residual interests represented by the Class A-R
          Certificate, the present value of the anticipated tax liabilities
          associated with holding such residual interest does not exceed the sum
          of:

          the present value of any consideration given to the Transferee to
     acquire such residual interest;

          the present value of the expected future distributions on such
     residual interest; and

          the present value of the anticipated tax savings associated with
     holding such residual interest as the related REMIC generates losses.

                                       K-4

<PAGE>

          For purposes of this declaration, (i) the Transferee is assumed to pay
          tax at a rate equal to the highest rate of tax specified in Section
          11(b)(1) of the Code, but the tax rate specified in Section
          55(b)(1)(B) of the Code may be used in lieu of the highest rate
          specified in Section 11(b)(1) of the Code if the Transferee has been
          subject to the alternative minimum tax under Section 55 of the Code in
          the preceding two years and will compute its taxable income in the
          current taxable year using the alternative minimum tax rate, and (ii)
          present values are computed using a discount rate equal to the Federal
          short-term rate prescribed by Section 1274(d) of the Code for the
          month of the transfer and the compounding period used by the
          Transferee;]

[Alternative (11) (A) at the time of the transfer, and at the close of each of
          the Transferee's two fiscal years preceding the year of transfer, the
          Transferee's gross assets for financial reporting purposes exceed $100
          million and its net assets for financial reporting purposes exceed $10
          million; and

     (B)  the Transferee is an eligible corporation as defined in Treasury
          regulation Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class A-R Certificate will be to
          another eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

          For purposes of this declaration, (i) the gross assets and net assets
          of the Transferee do not include any obligation of any related person
          (as defined in Treasury regulation section 1.860E-1(c)(6)(ii)) or any
          other asset if a principal purpose for holding or acquiring the other
          asset is to permit the Transferee to make this declaration or to
          satisfy the requirements of Treasury regulation section
          1.860E-1(c)(5)(i);]

[Alternative (11) Intentionally left blank;]

     (12) the Transferee represents that it will not cause income from the Class
A-R Certificate to be attributable to a foreign permanent establishment or fixed
base (within the meaning of an applicable income tax treaty) of the Transferee
or another U.S. taxpayer;

          For purpose of this affidavit, the term "disqualified organization"
          means the United States, any state or political subdivision thereof,
          any foreign government, any international organization, any agency or
          instrumentality of any of the foregoing (except any entity treated as
          other than an instrumentality of the foregoing for purposes of Section
          168(h)(2)(D) of the Internal Revenue Code of 1986, as amended (the
          "Code")), any organization (other than a cooperative described in
          Section 521 of the Code) that is exempt from taxation under the Code
          (unless such organization is subject to tax on excess inclusions) and
          any organization that is described in Section 1381(a)(2)(C) of the
          Code and the term "U.S. Person" means a citizen or resident of the
          United States, a corporation or partnership (unless, in the case of a
          partnership, Treasury regulations are adopted that provide otherwise)
          created or organized in or under the laws of the United States, any
          state thereof or the District of Columbia, including an entity treated
          as a corporation or partnership for federal income tax purposes, an
          estate whose income is subject to Unites States federal income tax
          regardless of its source, or a trust if a court within the United
          States is able to exercise primary supervision over the administration
          of such trust, and one or more such U.S. Persons have the authority to
          control all substantial decisions of

                                       K-5

<PAGE>

          such trust, (or, to the extent provided in applicable Treasury
          regulations, certain trusts in existence on August 20, 1996 which are
          eligible to elect to be treated as U.S. Persons).

                                       K-6

<PAGE>

_____________________________________

By:
    ---------------------------------

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

Address of Investor for receipt of distribution:

Address of Investor for receipt of tax information:

(Corporate Seal)

Attest:

_____________________________________
_____________________________________, Secretary

Personally appeared before me the above-named ______________, known or proved to
me to be the same person who executed the foregoing instrument and to be the
_______ of the Investor, and acknowledged to me that he executed the same as his
free act and deed and the free act and deed of the Investor.

     Subscribed and sworn before me this _____ day of __________, 200_.

Notary Public

County of ___________________________
State of ____________________________
My commission expires the _____day of __________

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

Dated:
       --------------------

                                       K-7

<PAGE>

                                                                      APPENDIX B

                                     CONSENT

_____________________________________(Transferee)
_____________________________________
_____________________________________
_____________________________________

Ladies and Gentlemen:

     Chase Mortgage Finance Corporation ("CMFC") hereby consents to the transfer
to, and registration in the name of, the Transferee (or, if applicable,
registration in the name of such Transferee's nominee of the Multi-Class
Mortgage Pass-Through Certificates, Series 2006-A1, Class A-R described in the
Transferee's Letter to which this Consent is appended, notwithstanding CMFC's
knowledge that the Transferee is not a U.S. Person (as defined in such
Transferee's Letter).

                                        CHASE MORTGAGE FINANCE CORPORATION

                                        By:
                                            ------------------------------------
Dated:
       --------------------

                                       K-8

<PAGE>

                                   EXHIBIT K-1

                      FORM OF CLASS A-R TRANSFEROR'S LETTER

                CHASE MORTGAGE FINANCE CORPORATION SERIES 2006-A1

                                     [DATE]

JPMorgan Chase Bank, N.A.
Global Trust Services
Four New York Plaza
6th Floor
New York, New York 10004

U.S. Bank National Association, as trustee
209 South LaSalle Street, 3rd Floor
Chicago, Illinois 60604
Attn: Corporate Trust Services/CMFT 2006-A1

          We propose to transfer to ___________________ (the "Transferee") Chase
Mortgage Finance Corporation's Multi-Class Mortgage Pass-Through Certificates,
Series 2006-A1, Class A-R, described in the Prospectus Supplement, dated August
[ ], 2006 and Prospectus, dated August 17, 2006. We have reviewed the attached
affidavit of the Transferee, and have no actual knowledge that such affidavit is
not true, and have no reason to believe that the Transferee has the intention to
impede the assessment or collection of any federal, state or local taxes legally
required to be paid with respect to the Class A-R Certificate referred to in the
attached affidavit. In addition, we have conducted a reasonable investigation at
the time of the transfer and found that the Transferee has historically paid its
debts as they came due and we found no significant evidence to indicate that the
Transferee will not continue to pay its debts as they become due.

                                        Very truly yours,

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

                                      K-1-1

<PAGE>

                                    EXHIBIT L

                        REQUEST FOR RELEASE OF DOCUMENTS

To: JPMorgan Chase Bank, N.A.
    1111 Polaris Parkway
    Columbus, Ohio 43240

          Re: Pooling and Servicing Agreement, dated as of August 1, 2006, by
              and among Chase Mortgage Finance Corporation, JPMorgan Chase
              Bank, N.A. and U.S. Bank National Association relating to the
              issuance of the Series 2006-A1 - Multi-Class Mortgage
              Pass-Through Certificates

     In connection with the administration of the Mortgage Loans held by you, as
Custodian on behalf of the Trustee, pursuant to the above-captioned Pooling and
Servicing Agreement, we request the release, and hereby acknowledge receipt, of
the Mortgage File for the Mortgage Loan described below, for the reason
indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

_______ 1. Mortgage Paid in Full
_______ 2. Foreclosure
_______ 3. Substitution
_______ 4. Other Liquidation
_______ 5. Nonliquidation Reason:

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

                                        By:
                                            ------------------------------------
                                                   (authorized signatory)

                                        Issuer:
                                                --------------------------------
                                        Address:
                                                 -------------------------------

                                        ----------------------------------------
                                        Date:
                                              ----------------------------------

                                       L-1

<PAGE>

Custodian

JPMorgan Chase Bank, N.A.
Please acknowledge the execution of the above request by your signature and date
below:

                                        ----------------------------------------
Signature                               Date

Documents returned to Custodian:

                                        ----------------------------------------
Custodian                               Date

                                       L-2

<PAGE>

                                    EXHIBIT M

                 FORM OF TRANSFEREE ERISA REPRESENTATION LETTER

                                     [DATE]

U.S. Bank National Association
209 South LaSalle Street, 3rd Floor
Chicago, Illinois 60604
Attn: Corporate Trust Services/CMFT 2006-A1

Chase Mortgage Finance Corporation
300 Tice Boulevard, Third Floor
Woodcliff Lake, New Jersey 07675

          Re: Chase Mortgage Finance Corporation, Multi-Class Mortgage
              Pass-Through Certificates, Series 2006-A1, [CLASS B- ]

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from
___________________________ (the "Transferor") $_______ by original principal
balance (the "Transferred Certificate") of Multi-Class Mortgage Pass-Through
Certificates, Series 2006-A1, [CLASS B-__] (the "Certificates"), issued pursuant
to a pooling and servicing agreement, dated as of August 1, 2006 (the "Pooling
and Servicing Agreement"), among Chase Mortgage Finance Corporation (the
"Depositor"), JPMorgan Chase Bank, N.A. ("Chase"), as servicer (the "Servicer")
and U.S. Bank National Association, as trustee (the "Trustee"). [THE PURCHASER
INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE IN THE NAME OF
____________________, AS NOMINEE FOR __________________.] All terms used and not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, we hereby certify, represent and warrant to, and
covenant with, the Depositor that we:

(A) are not an employee benefit plan within the meaning of Title I of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a plan
subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the
"Code") or a plan subject to any provisions under any federal, state, local,
non-U.S. or other laws or regulations that are substantively similar to the
foregoing provisions of ERISA or the Code ("Similar Law") (collectively, a
"Plan"), and is not directly or indirectly acquiring the Certificate for, on
behalf of or with any assets of any such Plan, (B) if the Certificate has been
the subject of an ERISA-Qualifying Underwriting, are an insurance company that
is acquiring the Certificate with assets of an "insurance company general
account" as defined in Section V(e) of Prohibited Transaction Class Exemption
95-60 ("PTCE 95-60"), and the acquisition and holding of the Certificate are
covered and exempt under Sections I and III of PTCE 95-60, or (C) solely in the
case of a Definitive Certificate, will deliver herewith an Opinion of Counsel
satisfactory to the Depositor, and upon which the Depositor shall be entitled to
rely, to the effect that the acquisition and holding of this Certificate by the
prospective transferee will not constitute or result in a nonexempt prohibited
transaction under ERISA or the Code or

                                       M-1

<PAGE>

a violation of Similar Law and will not subject the Trustee, the Depositor or
the Servicer to any obligation in addition to those undertaken by such entities
in the Pooling and Servicing Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Depositor or the Servicer.

     We agree to indemnify the Trustee, the Servicer and the Depositor against
any liability that may result from any misrepresentation made herein.

                                       M-2

<PAGE>

                                        Very truly yours,

                                        [PURCHASER]

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

                                       M-3

<PAGE>

                                    EXHIBIT N

                                   [RESERVED]

                                       N-1

<PAGE>

                                    EXHIBIT O

                  FORM OF OFFICER'S CERTIFICATE (PAYING AGENT)

                                     [DATE]

Chase Mortgage Finance Corporation
300 Tice Boulevard, Third Floor
Woodcliff Lake, New Jersey 07675

     Reference is made to each pooling and servicing agreement listed on Exhibit
A hereto (each, an "Agreement") in which JPMorgan Chase Bank, N.A. has been
appointed the paying agent (the "Paying Agent"). JPMorgan Chase Bank, N.A.,
hereby certifies to you that:

     1. I have reviewed the information contained in each monthly statement to
     certificateholders, any information provided by the Paying Agent with
     respect to the annual report on Form 10-K for the fiscal year [2006] (the
     "Annual Report"), and any information provided by the Paying Agent with
     respect to all reports on Form 8-K (if any) and on Form 10-D required to be
     filed in respect of the period covered by the Annual Report (collectively
     with the Annual Report, the "Reports"), of the Trust;

     2. Based on my knowledge, the information in these reports, taken as a
     whole, does not contain any untrue statement of a material fact or omit to
     state a material fact required by the respective pooling and servicing
     agreement to be included therein and necessary to make the statements made,
     in light of the circumstances under which such statements were made, not
     misleading as of the last day of the period covered by the annual reports;
     and

     3. Based on my knowledge, the distribution or servicing information
     required to be provided to the Paying Agent by the Servicer under each
     Agreement for inclusion in the reports is included in the reports.

     4. In compiling the distribution information, the Paying Agent has relied
     upon information furnished to it by the Servicer under each pooling and
     servicing agreement. The Paying Agent shall have no responsibility or
     liability for any inaccuracy in such reports resulting from information so
     provided by the Servicer.

                                        JPMORGAN CHASE BANK, N.A.

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

                                       O-1

<PAGE>

                                    EXHIBIT P

                            LETTER OF REPRESENTATIONS

                                       P-1

<PAGE>

                                    EXHIBIT Q

                                   [RESERVED]

                                       Q-1

<PAGE>

                                    EXHIBIT R

                       SERVICING CRITERIA TO BE ADDRESSED
                           IN ASSESSMENT OF COMPLIANCE
                          (RMBS unless otherwise noted)

                                 [TO BE UPDATED]

DEFINITIONS                                                    KEY:
PRIMARY SERVICER - transaction party having borrower contact      X - obligation

CUSTODIAN - safe keeper of certain  pool assets
TRUSTEE - fiduciary of the transaction
PAYING AGENT - agent of the Trustee

WHERE THERE ARE MULTIPLE CHECKS FOR CRITERIA THE ATTESTING PARTY WILL IDENTIFY
IN THEIR MANAGEMENT ASSERTION THAT THEY ARE ATTESTING ONLY TO THE PORTION OF THE
DISTRIBUTION CHAIN THEY ARE RESPONSIBLE FOR IN THE RELATED TRANSACTION
AGREEMENTS.

<TABLE>
<CAPTION>
                                                           JPMORGAN*       JPMORGAN      U.S. BANK       JPMORGAN
                                                          CHASE BANK,     CHASE BANK,    NATIONAL      CHASE BANK,
                                                              N.A.       N.A. (PAYING   ASSOCIATION        N.A.
REG AB REFERENCE    SERVICING CRITERIA                     (SERVICER)       AGENT)       (TRUSTEE)     (CUSTODIAN)
-------------------------------------------------------------------------------------------------------------------
<S>                 <C>                                        <C>      <C>                 <C>       <C>
                    GENERAL SERVICING CONSIDERATIONS

1122(d)(1)(i)       Policies and procedures are                X               X
                    instituted to monitor any
                    performance or other triggers and
                    events of default in accordance
                    with the transaction agreements.

1122(d)(1)(ii)      If any material servicing                  X        IF APPLICABLE                 IF APPLICABLE
                    activities are outsourced to third                      FOR A                     FOR A
                    parties, policies and procedures                     TRANSACTION                  TRANSACTION
                    are instituted to monitor the                        PARTICIPANT                  PARTICIPANT
                    third party's performance and
                    compliance with such servicing
                    activities.

1122(d)(1)(iii)     Any requirements in the                    X              N/A           N/A
                    transaction agreements to maintain
                    a back-up servicer for the Pool
                    Assets are maintained.

1122(d)(1)(iv)      A fidelity bond and errors and             X
                    omissions policy is in effect on
                    the party participating in the
                    servicing function throughout the
                    reporting period in the amount of
                    coverage required by and otherwise
                    in accordance with the terms of
                    the transaction agreements.
</TABLE>

                                       R-1

<PAGE>

<TABLE>
<CAPTION>
                                                           JPMORGAN*       JPMORGAN      U.S. BANK       JPMORGAN
                                                          CHASE BANK,     CHASE BANK,    NATIONAL      CHASE BANK,
                                                              N.A.       N.A. (PAYING   ASSOCIATION        N.A.
REG AB REFERENCE    SERVICING CRITERIA                     (SERVICER)       AGENT)       (TRUSTEE)     (CUSTODIAN)
-------------------------------------------------------------------------------------------------------------------
<S>                 <C>                                        <C>      <C>             <C>           <C>
                    CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)       Payments on pool assets are                X               X
                    deposited into the appropriate
                    custodial bank accounts and
                    related bank clearing accounts no
                    more than two business days
                    following receipt, or such other
                    number of days specified in the
                    transaction agreements.

1122(d)(2)(ii)      Disbursements made via wire                X               X
                    transfer on behalf of an obligor
                    or to an investor are made only by
                    authorized personnel.

1122(d)(2)(iii)     Advances of funds or guarantees            X
                    regarding collections, cash flows
                    or distributions, and any interest
                    or other fees charged for such
                    advances, are made, reviewed and
                    approved as specified in the
                    transaction agreements.

1122(d)(2)(iv)      The related accounts for the               X               X
                    transaction, such as cash reserve
                    accounts or accounts established
                    as a form of over
                    collateralization, are separately
                    maintained (e.g., with respect to
                    commingling of cash) as set forth
                    in the transaction agreements.

1122(d)(2)(v)**     Each custodial account is                  X               X
                    maintained at a federally insured
                    depository institution as set
                    forth in the transaction
                    agreements. For purposes of this
                    criterion, "federally insured
                    depository institution" with
                    respect to a foreign financial
                    institution means a foreign
                    financial institution that meets
                    the requirements of Rule
                    13k-1(b)(1) of the Securities
                    Exchange Act.

1122(d)(2)(vi)      Unissued checks are safeguarded so         X        If applicable
                    as to prevent unauthorized access.

1122(d)(2)(vii)     Reconciliations are prepared on a          X               X
                    monthly basis for all asset-backed
                    securities related bank accounts,
                    including custodial accounts and
                    related bank clearing accounts.
                    These reconciliations are (A)
                    mathematically accurate; (B)
                    prepared within 30 calendar days
                    after the bank statement cutoff
                    date, or such other number of days
                    specified in the transaction
                    agreements; (C) reviewed and
                    approved by someone other than the
                    person who prepared the
                    reconciliation; and (D) contain
                    explanations for reconciling
                    items. These reconciling items are
                    resolved
</TABLE>

                                       R-2

<PAGE>

<TABLE>
<CAPTION>
                                                           JPMORGAN*       JPMORGAN      U.S. BANK       JPMORGAN
                                                          CHASE BANK,     CHASE BANK,    NATIONAL      CHASE BANK,
                                                              N.A.       N.A. (PAYING   ASSOCIATION        N.A.
REG AB REFERENCE    SERVICING CRITERIA                     (SERVICER)       AGENT)       (TRUSTEE)     (CUSTODIAN)
-------------------------------------------------------------------------------------------------------------------
<S>                 <C>                                        <C>         <C>          <C>                 <C>
                    within 90 calendar days of their
                    original identification, or such
                    other number of days specified in
                    the transaction agreements.

                    INVESTOR REMITTANCES AND REPORTING

1122(d)(3)(i)       Reports to investors, including            X               X
                    those to be filed with the                               (not
                    Commission, are maintained in                          including
                    accordance with the transaction                          (c))
                    agreements and applicable
                    Commission requirements.
                    Specifically, such reports (A) are
                    prepared in accordance with
                    timeframes and other terms set
                    forth in the transaction
                    agreements; (B) provide
                    information calculated in
                    accordance with the terms
                    specified in the transaction
                    agreements; (C) are filed with the
                    Commission as required by its
                    rules and regulations; and (D)
                    agree with investors' or the
                    trustee's records as to the total
                    unpaid principal balance and
                    number of Pool Assets serviced by
                    the Servicer.

1122(d)(3)(ii)      Amounts due to investors are               X               X
                    allocated and remitted in
                    accordance with timeframes,
                    distribution priority and other
                    terms set forth in the transaction
                    agreements.

1122(d)(3)(iii)     Disbursements made to an investor          X               X
                    are posted within two business
                    days to the Servicer's investor
                    records, or such other number of
                    days specified in the transaction
                    agreements.

1122(d)(3)(iv)      Amounts remitted to investors per          X               X
                    the investor reports agree with
                    cancelled checks, or other form of
                    payment, or custodial bank
                    statements.

                    POOL ASSET ADMINISTRATION

1122(d)(4)(i)       Collateral or security on pool             X                                            X
                    assets is maintained as required
                    by the transaction agreements or
                    related pool asset documents.

1122(d)(4)(ii)      Pool assets and related documents          X                                            X
                    are safeguarded as required by the
                    transaction agreements

1122(d)(4)(iii)     Any additions, removals or                 X
                    substitutions to the asset pool
                    are made, reviewed and approved in
                    accordance with any conditions or
                    requirements in the transaction
                    agreements.

1122(d)(4)(iv)      Payments on pool assets, including         X
                    any payoffs, made in accordance
                    with the
</TABLE>

                                       R-3

<PAGE>

<TABLE>
<CAPTION>
                                                           JPMORGAN*       JPMORGAN      U.S. BANK       JPMORGAN
                                                          CHASE BANK,     CHASE BANK,    NATIONAL      CHASE BANK,
                                                              N.A.       N.A. (PAYING   ASSOCIATION        N.A.
REG AB REFERENCE    SERVICING CRITERIA                     (SERVICER)       AGENT)       (TRUSTEE)     (CUSTODIAN)
-------------------------------------------------------------------------------------------------------------------
<S>                 <C>                                        <C>      <C>             <C>           <C>
                    related pool asset documents are
                    posted to the Servicer's obligor
                    records maintained no more than two
                    business days after receipt, or
                    such other number of days specified
                    in the transaction agreements, and
                    allocated to principal, interest or
                    other items (e.g., escrow) in
                    accordance with the related pool
                    asset documents.

1122(d)(4)(v)       The Servicer's records regarding           X
                    the pool assets agree with the
                    Servicer's records with respect to
                    an obligor's unpaid principal
                    balance.

1122(d)(4)(vi)      Changes with respect to the terms          X
                    or status of an obligor's pool
                    assets (e.g., loan modifications
                    or re-agings) are made, reviewed
                    and approved by authorized
                    personnel in accordance with the
                    transaction agreements and related
                    pool asset documents.

1122(d)(4)(vii)     Loss mitigation or recovery                X
                    actions (e.g., forbearance plans,
                    modifications and deeds in lieu of
                    foreclosure, foreclosures and
                    repossessions, as applicable) are
                    initiated, conducted and concluded
                    in accordance with the timeframes
                    or other requirements established
                    by the transaction agreements.

1122(d)(4)(viii)    Records documenting collection             X
                    efforts are maintained during the
                    period a pool asset is delinquent
                    in accordance with the transaction
                    agreements. Such records are
                    maintained on at least a monthly
                    basis, or such other period
                    specified in the transaction
                    agreements, and describe the
                    entity's activities in monitoring
                    delinquent pool assets including,
                    for example, phone calls, letters
                    and payment rescheduling plans in
                    cases where delinquency is deemed
                    temporary (e.g., illness or
                    unemployment).

1122(d)(4)(ix)      Adjustments to interest rates or           X
                    rates of return for pool assets
                    with variable rates are computed
                    based on the related pool asset
                    documents.

1122(d)(4)(x)       Regarding any funds held in trust          X
                    for an obligor (such as escrow
                    accounts): (A) such funds are
                    analyzed, in accordance with the
                    obligor's pool asset documents, on
                    at least an annual
</TABLE>

                                       R-4

<PAGE>

<TABLE>
<CAPTION>
                                                           JPMORGAN*       JPMORGAN      U.S. BANK       JPMORGAN
                                                          CHASE BANK,     CHASE BANK,    NATIONAL      CHASE BANK,
                                                              N.A.       N.A. (PAYING   ASSOCIATION        N.A.
REG AB REFERENCE    SERVICING CRITERIA                     (SERVICER)       AGENT)       (TRUSTEE)     (CUSTODIAN)
-------------------------------------------------------------------------------------------------------------------
<S>                 <C>                                        <C>      <C>             <C>           <C>
                    basis, or such other period
                    specified in the transaction
                    agreements; (B) interest on such
                    funds is paid, or credited, to
                    obligors in accordance with
                    applicable pool asset documents and
                    state laws; and (C) such funds are
                    returned to the obligor within 30
                    calendar days of full repayment of
                    the related pool assets, or such
                    other number of days specified in
                    the transaction agreements.

1122(d)(4)(xi)      Payments made on behalf of an              X
                    obligor (such as tax or insurance
                    payments) are made on or before
                    the related penalty or expiration
                    dates, as indicated on the
                    appropriate bills or notices for
                    such payments, provided that such
                    support has been received by the
                    servicer at least 30 calendar days
                    prior to these dates, or such
                    other number of days specified in
                    the transaction agreements.

1122(d)(4)(xii)     Any late payment penalties in              X
                    connection with any payment to be
                    made on behalf of an obligor are
                    paid from the Servicer's funds and
                    not charged to the obligor, unless
                    the late payment was due to the
                    obligor's error or omission.

1122(d)(4)(xiii)    Disbursements made on behalf of an         X
                    obligor are posted within two
                    business days to the obligor's
                    records maintained by the
                    servicer, or such other number of
                    days specified in the transaction
                    agreements.

1122(d)(4)(xiv)     Delinquencies, charge-offs and             X
                    uncollectible accounts are
                    recognized and recorded in
                    accordance with the transaction
                    agreements.

1122(d)(4)(xv)      Any external enhancement or other          X
                    support, identified in Item
                    1114(a)(1) through (3) or Item
                    1115 of Regulation AB, is
                    maintained as set forth in the
                    transaction agreements.
</TABLE>

*    Certain obligations will be satisfied by Chase Home Finance LLC as
     subservicer.

**   Subject to further interpretation by the SEC.

                                       R-5

<PAGE>

                                    EXHIBIT S

                      FORM OF SARBANES-OXLEY CERTIFICATION

                                     [DATE]

Chase Mortgage Finance Corporation
300 Tice Boulevard, Third Floor
Woodcliff Lake, New Jersey 07675

          Re:  Chase Mortgage Finance Corporation, Multi-Class Mortgage
               Pass-Through Certificates, Series 2006-A1

I, [identify the certifying individual], certify that:

     I have reviewed the report on Form 10-K and all reports on Form 10-D
required to be filed in respect of the period covered by this report on Form
10-K of [identify the issuing entity] (the "Exchange Act periodic reports");

     1. Based on my knowledge, the Exchange Act periodic reports, taken as a
whole, do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

     2. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act periodic reports;

     3. [I am responsible for reviewing the activities performed by the
servicer(s) and based on my knowledge and the compliance review(s) conducted in
preparing the servicer compliance statement(s) required in this report under
Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic
reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the
servicing agreement(s); and]

     4. All of the reports on assessment of compliance with servicing criteria
for ABS and their related attestation reports on assessment of compliance with
servicing criteria for asset-backed securities required to be included in this
report in accordance with Item 1122 of Regulation AB and Exchange Act Rules
13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form 10-K.

[In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated parties [name of servicer,
sub-servicer, co-servicer, depositor or trustee].]

                                       S-1

<PAGE>

Date:
      -----------------------------

                                                --------------------------------
                                                [Signature]
                                                [Title]

                                       S-2

<PAGE>

                                    EXHIBIT T

                   FORM OF ITEM 1123 CERTIFICATION OF SERVICER

                                     [DATE]

Chase Mortgage Finance Corporation
300 Tice Boulevard, Third Floor
Woodcliff Lake, New Jersey 07675

          Re:  Chase Mortgage Finance Corporation, Multi-Class Mortgage
               Pass-Through Certificates, Series 2006-A1

I, [identify name of certifying individual], [title of certifying individual] of
JPMorgan Chase Bank, N.A. (the "Servicer"), hereby certify that:

(1) A review of the activities of the Servicer during the preceding calendar
year and of the performance of the Servicer under the Agreement has been made
under my supervision; and

(2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the Agreement in all material respects
throughout such year or a portion thereof[, or, if there has been a failure to
fulfill any such obligation in any material respect, I have specified below each
such failure known to me and the nature and status thereof].

Date:

                                                JPMorgan Chase Bank, N.A., as
                                                Servicer

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

                                       T-1

<PAGE>

                                   SCHEDULE X

          ITEM ON FORM 8-K                          PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
*Item 1.01- Entry into a Material       All parties
Definitive Agreement

*Item 1.02- Termination of a Material   All parties
Definitive Agreement

Item 1.03- Bankruptcy or Receivership   Depositor

Item 2.04- Triggering Events that       Depositor
Accelerate or Increase a Direct
Financial Obligation or an Obligation
under an Off-Balance Sheet
Arrangement

*Item 3.03- Material Modification to    Depositor, Servicer
Rights of Security Holders

Item 5.03- Amendments of Articles of    Depositor
Incorporation or Bylaws; Change of
Fiscal Year

Item 6.01- ABS Informational and        Depositor
Computational Material

*Item 6.02- Change of Servicer or       Servicer, Trustee (as to change of
Trustee                                 Trustee only), Paying Agent (as to
                                        change of Paying Agent only)

*Item 6.03- Change in Credit            Depositor
Enhancement or External Support

*Item 6.04- Failure to Make a           Paying Agent
Required Distribution

Item 6.05- Securities Act Updating      Depositor
Disclosure

Item 7.01- Reg FD Disclosure            Depositor

Item 8.01                               Depositor

Item 9.01                               Depositor

                                       X-1

<PAGE>

                                   SCHEDULE Y

          ITEM ON FORM 10-D                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
Item 1: Distribution and Pool           Paying Agent through the Item 602
Performance Information                 statement based on information provided
                                        to it by the Servicer

Plus any information required by Item   Servicer
1121 which is NOT included on the
monthly statement to
Certificateholders

Item 2: Legal Proceedings per Item      All parties to the PSA (as to
1117 of Reg AB                          themselves), the
                                        depositor/trustee/paying agent/servicer
                                        (to the extent known) as to the issuing
                                        entity, the depositor/servicer as to the
                                        sponsor, 1106(b) originator and any
                                        1100(d)(1) party

Item 3: Sale of Securities and Use of   Depositor
Proceeds

Item 4: Defaults Upon Senior            Servicer, Paying Agent (except as to
Securities                              9.01(b) or (d)) and Trustee (to the
                                        extent of knowledge thereof)

Item 5: Submission of Matters to a      Depositor, Paying Agent (to the extent
Vote of Security Holders                it is submitting a matter to vote) and
                                        the Trustee (to the extent it is
                                        submitting a matter to vote)

Item 6: Significant Obligors of Pool    Depositor/Sponsor/Mortgage Loan Seller/
Assets                                  Servicer

Item 7: Significant Enhancement         Depositor/Sponsor
Provider Information

Item 8: Other Information               Servicer, Paying Agent and any other
                                        party responsible for disclosure items
                                        on Form 10-D

Item 9: Exhibits                        Servicer

                                       Y-1

<PAGE>

                                   SCHEDULE Z

          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
Item 1B: Unresolved Staff Comments      Depositor

*Item 9B: Other Information             Servicer, Paying Agent and any other
                                        party responsible for disclosure items
                                        on Form 8-K

*Item 15: Exhibits, Financial           Servicer/subservicers/Depositor
Statement Schedules

*Additional Item:                       All parties to the PSA (as to
Disclosure per Item 1117 of Reg AB      themselves), the
                                        Depositor/Trustee/Paying Agent/Servicer
                                        (to the extent
                                        known) as to the issuing entity, the
                                        depositor/servicer as to the sponsor,
                                        1106(b) originator, any 1100(d)(1) party

*Additional Item:                       All parties to the PSA, the sponsor,
Disclosure per Item 1119 of Reg AB      originator, significant obligor,
                                        enhancement or support provider

Additional Item:                        Depositor/Sponsor/Mortgage Loan
Disclosure per Item 1112(b) of Reg AB   Seller/Servicer

Additional Item:                        Depositor/Sponsor
Disclosure per Items 1114(b) and
1115(b) of Reg AB

                                       Z-1SECURITIES PURCHASE AGREEMENT

     SECURITIES  PURCHASE  AGREEMENT  (the  "AGREEMENT"), dated as of August 30,
2006,  by  and  among Charys Holding Company, Inc., a Delaware corporation, (the
"COMPANY"),  and  the investors listed on the Schedule of Buyers attached hereto
(individually,  a  "BUYER"  and  collectively,  the  "BUYERS").

     WHEREAS:

     A.     The  Company  and  each  Buyer  is  executing  and  delivering  this
Agreement  in  reliance upon the exemption from securities registration afforded
by  Section 4(2) of the Securities Act of 1933, as amended (the "1933 ACT"), and
Rule  506  of  Regulation D ("REGULATION D") as promulgated by the United States
Securities  and  Exchange  Commission  (the  "SEC")  under  the  1933  Act.

     B.     The  Company  has  authorized  a  new  series  of  senior  secured
convertible  notes  of  the  Company,  which notes shall be convertible into the
Company's  common  stock,  par  value  $0.001 per share (the "COMMON STOCK"), in
accordance  with  the  terms  of  the  notes.

     C.     Each  Buyer wishes to purchase, and the Company wishes to sell, upon
the  terms and conditions stated in this Agreement, (i) that aggregate principal
amount of the Notes, in substantially the form attached hereto as Exhibit A (the
                                                                  ---------
"NOTES"),  set forth opposite such Buyer's name in column (3) on the Schedule of
Buyers  attached  hereto  (as converted, collectively, the "CONVERSION SHARES"),
and  (ii)  warrants, in substantially the form attached hereto as Exhibit B (the
                                                                  ---------
"WARRANTS"), to acquire that number of shares of Common Stock set forth opposite
such  Buyer's  name  in column (4) on the Schedule of Buyers.  Any shares of the
Common  Stock  issued  or  issuable  upon  the  exercise  of  the  Warrants  are
hereinafter  referred  to  as  the  "Warrant  Shares."

     D.     At  the  Closing (as defined below) the parties hereto shall execute
and  deliver a Registration Rights Agreement, substantially in the form attached
hereto as Exhibit C (the "REGISTRATION RIGHTS AGREEMENT"), pursuant to which the
          ---------
Company  has  agreed  to provide certain registration rights with respect to the
Conversion  Shares  and  the Warrant Shares under the 1933 Act and the rules and
regulations  promulgated  thereunder,  and  applicable  state  securities  laws.

     E.     The  Notes,  the  Conversion  Shares,  the  Warrants and the Warrant
Shares  collectively  are  referred  to  herein  as  the  "SECURITIES."

     F.     Except  as  may  be  otherwise  provided herein, the Notes will rank
senior  to  all  outstanding  and future indebtedness of the Company, subject to
Permitted  Senior  Indebtedness  (as defined in the Notes), and except as may be
otherwise  provided  herein  will  be  secured  by  a  first priority, perfected
security  interest in all of the assets of the Company and each of the Company's
subsidiaries,  as evidenced by the security agreement attached hereto as Exhibit
                                                                         -------
D  (the  "SECURITY  AGREEMENT")  and  any  ancillary  documents related thereto,
-
collectively  the  "SECURITY  DOCUMENTS").

<PAGE>
     NOW,  THEREFORE,  the  Company  and  each  Buyer  hereby  agree as follows:

1.     PURCHASE  AND  SALE  OF  NOTES  AND  WARRANTS.
       ---------------------------------------------

     (a)     Purchase  of  Notes  and  Warrants.
             ----------------------------------

          (i)     Notes  and  Warrants.  Subject to the satisfaction (or waiver)
                  --------------------
of  the  conditions set forth in Sections 6 and 7 below, the Company shall issue
and sell to each Buyer, and each Buyer severally, but not jointly, will purchase
from  the Company on the Closing Date (as defined below), (x) a principal amount
of  Notes  as  is  set  forth  opposite  such  Buyer's name in column (3) on the
Schedule  of Buyers and (y) Warrants to acquire that number of Warrant Shares as
is  set forth opposite such Buyer's name in column (4) on the Schedule of Buyers
(the  "CLOSING").

          (ii)     Closing.  The  Closing shall occur on the Closing Date at the
                   -------
offices  of  Gottbetter & Partners, LLP, 488 Madison Avenue, New York, NY 10022.

          (iii)     Purchase  Price.  The aggregate purchase price for the Notes
                    ---------------
and  the  Warrants  to  be purchased by such Buyer at the Closing (the "PURCHASE
PRICE")  shall  be the amount set forth opposite such Buyer's name in column (6)
of  the  Schedule  of  Buyers.  Each  Buyer  shall  pay  $0.95 for each $1.00 of
principal  amount of Notes and related Warrants to be purchased by such Buyer at
the  Closing.

     (b)     Closing Date. The date and time of the Closing (the "CLOSING DATE")
             ------------
shall  be  10:00 a.m., New York City Time, on the date following notification of
satisfaction  (or waiver) of the conditions to the Closing set forth in Sections
6  and  7  below (or such later date as is mutually agreed to by the Company and
each  Buyer).

     (c)     Form of Payment.  On the Closing Date and following satisfaction of
             ---------------
the Closing conditions set forth in Section 7, each Buyer shall pay its Purchase
Price  to  the  Company  for the Notes and the Warrants being issued and sold to
such  Buyer at the Closing by wire transfer of immediately available funds to an
account  designate  in writing by the Company. On the Closing Date and following
satisfaction of the Closing conditions set forth in Section 6, the Company shall
deliver  to  each  Buyer  (A)  the Notes (in the principal amounts as such Buyer
shall  have  requested prior to the Closing) which such Buyer is then purchasing
and (B) the Warrants (in the amounts as such Buyer shall have requested prior to
the  Closing)  which  such  Buyer  is  purchasing, in each case duly executed on
behalf  of the Company and registered in the name of such Buyer or its designee.

2.     BUYER'S  REPRESENTATIONS  AND  WARRANTIES.
       -----------------------------------------

     Each  Buyer  represents  and  warrants  with  respect  to only itself that:

                                        2
<PAGE>
     (a)     No  Public  Sale  or Distribution.  Such Buyer is (i) acquiring the
             ---------------------------------
Notes and the Warrants and (ii) upon conversion of the Notes and exercise of the
Warrants  will  acquire  the  Conversion  Shares issuable upon conversion of the
Notes and the Warrant Shares issuable upon exercise of the Warrants, for its own
account  and  not  with  a  view  towards, or for resale in connection with, the
public  sale  or  distribution  thereof,  except pursuant to sales registered or
exempt  from  registration under the 1933 Act; provided, however, that by making
                                               --------  -------
the  representations  herein,  such  Buyer  does  not  agree  to hold any of the
Securities  for  any  minimum  or  other specific term and reserves the right to
dispose  of  the  Securities  at  any  time  in accordance with or pursuant to a
registration  statement  or  an  exemption from registration under the 1933 Act.
Such  Buyer  is acquiring the Securities hereunder in the ordinary course of its
business.  Such  Buyer  does  not presently have any agreement or understanding,
directly  or  indirectly,  with  any Person to distribute any of the Securities.
Further,  there  are no contracts, arrangements, understandings or relationships
(legal  or  otherwise) among such Buyer and any other Person with respect to any
securities  of  the  Company, including but not limited to transfer or voting of
any  of  the  Securities,  finder's  fees,  joint  ventures,  loan  or  option
arrangements, puts or calls, guarantees of profits, division of profits or loss,
or  the  giving  or  withholding  of  proxies.

     (b)     Accredited  Investor  Status  and  Qualified  Institutional  Buyer
             ------------------------------------------------------------------
Status.  Such  Buyer is an "accredited investor" as that term is defined in Rule
------
501(a)  under  the 1933 Act.  Such Buyer is not a registered broker-dealer under
Section  15 of the Securities Exchange Act of 1934, as amended (the "1934 ACT").

     (c)     Reliance on Exemptions.  Such Buyer understands that the Securities
             ----------------------
are  being  offered  and  sold to it in reliance on specific exemptions from the
registration requirements of United States federal and state securities laws and
that  the  Company  is  relying in part upon the truth and accuracy of, and such
Buyer's  compliance  with,  the  representations,  warranties,  agreements,
acknowledgments  and  understandings  of such Buyer set forth herein in order to
determine  the availability of such exemptions and the eligibility of such Buyer
to  acquire  the  Securities.

     (d)     Information.  Such  Buyer  and  its  advisors,  if  any,  have been
             -----------
furnished  with  all materials relating to the business, finances and operations
of  the  Company  and materials relating to the offer and sale of the Securities
which  have  been requested by such Buyer.  Such Buyer and its advisors, if any,
have  been  afforded  the  opportunity to ask questions of the Company.  Neither
such  inquiries  nor  any  other  due diligence investigations conducted by such
Buyer  or  its  advisors,  if any, or its representatives shall modify, amend or
affect  such  Buyer's  right  to  rely  on  the  Company's  representations  and
warranties  contained herein.  Such Buyer understands that its investment in the
Securities  involves  a  high  degree  of  risk.  Such  Buyer  has  sought  such
accounting,  legal  and  tax  advice  as  it has considered necessary to make an
informed  investment decision with respect to its acquisition of the Securities.
Specifically,  such  Buyer has been provided with access to all of the Company's
SEC  Documents  (as  defined  in Section 3(k)), including the following: (i) the
Company's  annual  report  to  stockholders  for the fiscal year ended April 30,
2005,  the  definitive  proxy  statement  filed  in  connection with that annual
report;  (ii) the information contained in an annual report on Form 10-KSB under
the 1934 Act for the fiscal year ended April 30, 2005; and (iii) the information
contained  in any reports or documents required to be filed by the Company under
Sections  13(a),  14(a),  14(c),  and  15(d)  of  the  1934

                                        3
<PAGE>
Act  since  the  distribution  or  filing  of  the  reports  specified  above.

     (e)     No  Governmental  Review.  Such  Buyer  understands  that no United
             ------------------------
States  federal  or  state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement of the Securities or the
fairness  or  suitability  of  the  investment  in  the Securities nor have such
authorities  passed  upon  or  endorsed  the  merits  of  the  offering  of  the
Securities.

     (f)     Transfer or Resale.  Such Buyer understands that except as provided
             ------------------
in  the  Registration Rights Agreement: (i) the Securities have not been and are
not  being  registered  under the 1933 Act or any state securities laws, and may
not  be  offered for sale, sold, assigned or transferred unless (A) subsequently
registered  thereunder,  (B)  such  Buyer shall have delivered to the Company an
opinion  of  counsel,  in  a  form  reasonably acceptable to the Company, to the
effect  that  such  Securities  to be sold, assigned or transferred may be sold,
assigned  or transferred pursuant to an exemption from such registration, or (C)
such  Buyer  provides the Company with reasonable assurance that such Securities
can  be  sold,  assigned  or  transferred  pursuant  to  Rule  144  or Rule 144A
promulgated  under  the  1933  Act,  as  amended,  (or a successor rule thereto)
(collectively,  "RULE 144"); (ii) any sale of the Securities made in reliance on
Rule  144 may be made only in accordance with the terms of Rule 144 and further,
if  Rule 144 is not applicable, any resale of the Securities under circumstances
in which the seller (or the Person (as defined in Section 3(s)) through whom the
sale is made) may be deemed to be an underwriter (as that term is defined in the
1933 Act) may require compliance with some other exemption under the 1933 Act or
the  rules  and regulations of the SEC thereunder; and (iii) neither the Company
nor  any  other  Person is under any obligation to register the Securities under
the  1933  Act  or  any  state  securities  laws or to comply with the terms and
conditions  of  any  exemption  thereunder.  The  Securities  may  be pledged in
connection  with  a  bona  fide  margin  account  or  other  loan  or  financing
arrangement secured by the Securities and such pledge of Securities shall not be
deemed  to be a transfer, sale or assignment of the Securities hereunder, and no
Buyer  effecting a pledge of Securities shall be required to provide the Company
with  any  notice thereof or otherwise make any delivery to the Company pursuant
to  this  Agreement  or  any  other  Transaction Document (as defined in Section
3(b)),  including,  without  limitation,  this  Section  2(f).

     (g)     Legends.  Such  Buyer  understands  that  the certificates or other
             -------
instruments  representing the Notes and the Warrants and, until such time as the
resale  of  the  Conversion  Shares  and the Warrant Shares have been registered
under  the  1933  Act  as contemplated by the Registration Rights Agreement, the
stock  certificates  representing  the Conversion Shares and the Warrant Shares,
except  as  set forth below, shall bear any legend as required by the "blue sky"
laws  of  any state and a restrictive legend in substantially the following form
(and  a  stop-transfer  order  may  be  placed  against  transfer  of such stock
certificates):

     [NEITHER  THE  ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS
     CERTIFICATE  NOR  THE  SECURITIES  INTO  WHICH  THESE  SECURITIES  ARE
     [CONVERTIBLE]  [EXERCISABLE] HAVE BEEN] [THE SECURITIES REPRESENTED BY
     THIS  CERTIFICATE  HAVE  NOT  BEEN]  REGISTERED  UNDER  THE

                                        4
<PAGE>
     SECURITIES  ACT  OF  1933,  AS AMENDED, OR APPLICABLE STATE SECURITIES
     LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
     ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
     FOR  THE  SECURITIES  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
     (B)  AN  OPINION  OF  COUNSEL,  IN A FORM REASONABLY ACCEPTABLE TO THE
     COMPANY,  THAT  REGISTRATION  IS  NOT  REQUIRED UNDER SAID ACT OR (II)
     UNLESS  SOLD  PURSUANT  TO  RULE  144  OR  RULE  144A  UNDER SAID ACT.
     NOTWITHSTANDING  THE  FOREGOING,  THE  SECURITIES  MAY  BE  PLEDGED IN
     CONNECTION  WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
     ARRANGEMENT  SECURED  BY  THE  SECURITIES.

The  legend  set  forth  above  shall  be  removed and the Company shall issue a
certificate without such legend to the holder of the Securities upon which it is
stamped,  or  issue  to  such  holder  by  electronic delivery at the applicable
balance  account  at  DTC (as defined below), unless otherwise required by state
securities  laws,  if:  (i)  such Securities are registered for resale under the
1933  Act,  (ii)  in  connection with a sale, assignment or other transfer, such
holder  provides  the  Company  with an opinion of counsel, in a form reasonably
acceptable  to the Company, to the effect that such sale, assignment or transfer
of  the  Securities  may  be  made  without  registration  under  the applicable
requirements  of  the  1933  Act, or (iii) such holder provides the Company with
reasonable  assurance  that  the Securities can be sold, assigned or transferred
pursuant  to  Rule  144  or  Rule  144A.

     (h)     Validity;  Enforcement.  The  Transaction  Documents  to which such
             ----------------------
Buyer  is  a party have been duly and validly authorized, executed and delivered
on  behalf  of  such  Buyer  and  shall  constitute the legal, valid and binding
obligations  of  such  Buyer  enforceable  against such Buyer in accordance with
their  respective terms, except as such enforceability may be limited by general
principles  of  equity  or to applicable bankruptcy, insolvency, reorganization,
moratorium,  liquidation  and  other  similar  laws  relating  to,  or affecting
generally,  the  enforcement  of  applicable  creditors'  rights  and  remedies.

     (i)     No  Conflicts.  The  execution,  delivery  and  performance by such
             -------------
Buyer  of  the  Transaction  Documents  to  which  such Buyer is a party and the
consummation  by  such Buyer of the transactions contemplated hereby and thereby
will not (i) result in a violation of the organizational documents of such Buyer
or (ii) conflict with, or constitute a default (or an event which with notice or
lapse  of  time  or  both  would  become a default) under, or give to others any
rights  of  termination,  amendment,  acceleration  or  cancellation  of,  any
agreement,  indenture  or  instrument  to  which such Buyer is a party, or (iii)
result  in  a violation of any law, rule, regulation, order, judgment  or decree
(including  federal  and state securities laws) applicable to such Buyer, except
in  the  case  of  clauses  (ii)  and (iii) above, for such conflicts, defaults,
rights  or  violations  which  would  not,  individually  or  in  the aggregate,
reasonably  be expected to have a material adverse effect on the ability of such
Buyer  to  perform  its  obligations  hereunder.

     (j)     Residency.  Such Buyer is a resident of that jurisdiction specified
             ---------
below  its

                                        5
<PAGE>
address  on  the  Schedule  of  Buyers.

     (k)     Independent  Investment  Decision.  Such  Buyer  has  independently
             ---------------------------------
evaluated  the merits of its decision to purchase the Securities pursuant to the
Transaction Documents, and such Buyer confirms that it has (i) not relied on the
advice  of  any  other  Buyer's  business  and/or  legal  counsel in making such
decision  and  (ii)  not  received or relied on any advice of the Company or its
business  and/or legal counsel in making such decision.  Such Buyer acknowledges
that  it  had  the  opportunity  to review this Agreement, the other Transaction
Documents  and  the  transactions  contemplated  hereby and thereby with its own
legal  counsel  and  investment and tax advisors, if any.  Such Buyer is relying
solely on such counsel and advisors and not on any statements or representations
of  the  Company  or  any  of  its  representatives  or agents for legal, tax or
investment advice with respect to this investment, the transactions contemplated
by  this  Agreement  and  the  other  Transaction  Documents.

     (l)     [Intentionally  Omitted]

     (m)     [Intentionally  Omitted]

     (n)     General  Solicitation.  Such Buyer is not purchasing the Securities
             ---------------------
as  a  result  of  any  advertisement,  article,  notice  or other communication
regarding  the  Securities published in any newspaper, magazine or similar media
or  broadcast  over  television  or  radio  or  presented  at  any  seminar.

     (o)     Organization;  Authority.  Such  Buyer is an entity duly organized,
             ------------------------
validly  existing and in good standing under the laws of the jurisdiction of its
organization  with  the requisite corporate or partnership or other entity power
and  authority  to enter into and to consummate the transactions contemplated by
the  applicable  Transaction Documents to which it is a party (as defined below)
and  otherwise  to  carry  out  its  obligations  thereunder.

     (p)     Prohibited Transactions.  During the last 30 days prior to the date
             -----------------------
hereof,  neither  such  Buyer,  nor  any  Affiliate  of  such  Buyer, foreign or
domestic,  which  (x) had knowledge of the transactions contemplated hereby, (y)
has  or  shares  discretion  relating  to such Buyer's investments or trading or
information  concerning  such  Buyer's  investments, including in respect of the
Securities,  and  (z) is subject to such Buyer's review or input concerning such
Affiliate's  investments  or  trading  (collectively, "TRADING AFFILIATES") has,
directly  or indirectly, effected or agreed to effect any short sale (as defined
in  Rule  200 under Regulation SHO), whether or not against the box, established
any  "put  equivalent  position" (as defined in Rule 16a-1(h) under the Exchange
Act)  with  respect  to the Common Stock, borrowed or pre-borrowed any shares of
Common Stock, or granted any other right (including, without limitation, any put
or call option) with respect to the Common Stock or with respect to any security
that  includes, relates to or derived any significant part of its value from the
Common Stock or otherwise sought to hedge its position in the Securities each, a
"PROHIBITED  TRANSACTION").  Prior  to  the  earliest  to  occur  of  (i)  the
termination  of  this  Agreement,  (ii)  the  Effective  Date  or  (iii)  the
Effectiveness  Deadline,  such  Buyer  shall  not,  and  shall cause its Trading
Affiliates  not  to,  engage,  directly  or  indirectly,  in  (a)  a  Prohibited
Transaction  nor  (b) any sale, assignment, pledge, hypothecation, put, call, or
other  transfer  of  any  of  the  shares  of  Common  Stock,  warrants or other
securities  of  the  issuer  acquired

                                        6
<PAGE>
hereunder.  Notwithstanding  the  foregoing,  if  such  Buyer  or  any  Trading
Affiliate  is  a  multi-managed  investment  vehicle  whereby separate portfolio
managers  manage separate portions of such Buyer's or Trading Affiliate's assets
and  the portfolio managers have no direct knowledge of the investment decisions
made  by  the  portfolio  managers  managing  other  portions of such Buyer's or
Trading Affiliate's assets, the representations set forth above shall only apply
with  respect to the portion of the assets managed by the portfolio manager that
made  the  investment  decision  to  purchase  the  Securities  covered  by this
Agreement.

3.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.
       --------------------------------------------------

     The  Company  represents  and  warrants  to  each  of  the  Buyers  that:

     (a)     Organization and Qualification.  The Company and its "SUBSIDIARIES"
             ------------------------------
(which  for  purposes of this Agreement means any joint venture or any entity in
which the Company, directly or indirectly, owns capital stock or holds an equity
or  similar  interest)  are entities duly organized and validly existing in good
standing  under  the laws of the jurisdiction in which they are formed, and have
the  requisite power and authority to own their properties and to carry on their
business  as  now  being conducted.  Each of the Company and its Subsidiaries is
duly  qualified  as  a  foreign entity to do business and is in good standing in
every  jurisdiction  in  which  its  ownership  of property or the nature of the
business  conducted  by  it  makes  such  qualification necessary, except to the
extent that the failure to be so qualified or be in good standing would not have
a Material Adverse Effect.  As used in this Agreement, "MATERIAL ADVERSE EFFECT"
means  any  material  adverse  effect  on  the  business,  properties,  assets,
operations,  results  of  operations,  condition  (financial  or  otherwise)  or
prospects  of  the  Company  and  its  Subsidiaries, taken as a whole, or on the
transactions  contemplated  hereby and the other Transaction Documents or by the
agreements  and  instruments  to  be  entered  into  in  connection  herewith or
therewith,  or  on  the  authority  or  ability  of  the  Company to perform its
obligations under the Transaction Documents (as defined below).  The Company has
no  Subsidiaries  except  as  set  forth  on  Schedule  3(a).  The Company owns,
                                              --------------
directly  or  indirectly,  all of the capital stock or other equity interests of
each  Subsidiary  free  and  clear of any liens, except those liens and security
interests  which may have been created or will be created in connection with the
Company's  acquisition  of each Subsidiary as detailed on Schedule 3(a) attached
                                                          -------------
hereto  (the  "PERMITTED  LIENS"  hereinafter  defined),  and all the issued and
outstanding  shares  of  capital stock of each Subsidiary are validly issued and
are  fully  paid,  non-assessable  and  free of preemptive and similar rights to
subscribe  for  or  purchase  securities.

     (b)     Authorization;  Enforcement;  Validity.  The  Company  has  the
             --------------------------------------
requisite  power  and  authority to enter into and perform its obligations under
this  Agreement, the Notes, the Warrants, the Registration Rights Agreement, the
Security  Documents,  the Irrevocable Transfer Agent Instructions (as defined in
Section  5(b)),  and  each  of  the other agreements entered into by the Company
hereto  in  connection  with  the  transactions  contemplated  by this Agreement
(collectively,  the  "TRANSACTION  DOCUMENTS")  and  to  issue the Securities in
accordance  with  the  terms  hereof and thereof.  The execution and delivery of
this  Agreement  and  the  other  Transaction  Documents  by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby,
including,  without  limitation, the issuance of the Notes and the Warrants, the
reservation  for  issuance  and  the  issuance  of  the  Conversion  Shares

                                        7
<PAGE>
issuable upon conversion of the Notes, the reservation for issuance and issuance
of  Warrant Shares issuable upon exercise of the Warrants, and the granting of a
security  interest in the Collateral (as defined in the Security Documents) have
been duly authorized by the Company's board of directors and (other than (i) the
filing  of  appropriate UCC financing statements with the appropriate states and
other  authorities pursuant to the Security Agreement, (ii) the filing of a Form
D under Regulation D of the 1933 Act and (iii) the filing with the SEC of one or
more  Registration  Statements  and  any other filings as may be required by any
state  securities agency in accordance with the requirements of the Registration
Rights  Agreement)  no  further filing, consent, or authorization is required by
the Company, its board of directors or its stockholders.  This Agreement and the
other  Transaction  Documents  to  which  the Company and/or any Subsidiary is a
party  have  been  duly  executed  and  delivered  by  the  Company  and/or such
Subsidiary,  as  applicable,  and  constitute  the  legal,  valid  and  binding
obligations  of  the  Company and/or such Subsidiary, as applicable, enforceable
against  the  Company  and/or such Subsidiary, as applicable, in accordance with
their  respective terms, except as such enforceability may be limited by general
principles  of  equity  or  applicable  bankruptcy,  insolvency, reorganization,
moratorium,  liquidation  or  other  similar  laws  relating  to,  or  affecting
generally,  the  enforcement  of  applicable  creditors'  rights  and  remedies.

     (c)     Issuance of Securities.  The issuance of the Notes and the Warrants
             ----------------------
are  duly authorized and are free from all taxes, liens and charges with respect
to  the  issue  thereof.  As  of the Closing, a number of shares of Common Stock
shall  have  been duly authorized and reserved for issuance which equals 175% of
the  maximum number of shares Common Stock initially issuable upon conversion of
the Notes and upon exercise of the Warrants.  Upon conversion in accordance with
the  Notes  or exercise in accordance with the Warrants, as the case may be, the
Conversion  Shares and the Warrant Shares, respectively, will be validly issued,
fully  paid  and  nonassessable  and free from all preemptive or similar rights,
taxes,  liens  and  charges  with respect to the issue thereof, with the holders
being  entitled  to  all rights accorded to a holder of Common Stock.  The offer
and  issuance by the Company of the Securities is exempt from registration under
the  1933  Act.

     (d)     No  Conflicts.  The  execution,  delivery  and  performance of this
             -------------
Agreement  and  the  other  Transaction  Documents  by  the  Company  and  the
consummation  by the Company of the transactions contemplated hereby and thereby
(including,  without limitation, the issuance of the Notes and the Warrants, the
granting  of  a  security  interest  in  the  Collateral and the reservation for
issuance  and issuance of the Conversion Shares and the Warrant Shares) will not
(i)  result  in  a  violation  of  the  Articles of Incorporation (as defined in
Section  3(r))  of  the Company or any of its Subsidiaries, any capital stock of
the  Company or Bylaws (as defined in Section 3(r)) of the Company or any of its
Subsidiaries  or  (ii) conflict with, or constitute a default (or an event which
with  notice  or lapse of time or both would become a default) under, or give to
others  any  rights  of termination, amendment, acceleration or cancellation of,
any  agreement,  indenture  or  instrument  to  which  the Company or any of its
Subsidiaries  is  a  party,  or  (iii)  result  in a violation of any law, rule,
regulation,  order,  judgment  or decree (including federal and state securities
laws  and  regulations  and  the  rules  and regulations of the Over-The-Counter
Bulletin Board (the "PRINCIPAL MARKET")) applicable to the Company or any of its
Subsidiaries  or  by  which  any  property or asset of the Company or any of its
Subsidiaries  is  bound  or  affected.

                                        8
<PAGE>
     (e)     Consents.  Other than as set forth on Schedule 3(e), the Company is
             --------                              -------------
not  required  to  obtain  any  consent,  authorization or order of, or make any
filing or registration with, any court, governmental agency or any regulatory or
self-regulatory  agency  or any other Person in order for it to execute, deliver
or  perform  any  of  its  obligations  under or contemplated by the Transaction
Documents,  in  each  case  in accordance with the terms hereof or thereof.  All
consents, authorizations, orders, filings and registrations which the Company is
required  to  obtain pursuant to the preceding sentence shall have been obtained
or  effected  on  or  prior  to  the  Closing  Date,  and  the  Company  and its
Subsidiaries  are  unaware of any facts or circumstances which might prevent the
Company  from  obtaining  or effecting any of the registrations, applications or
filings  pursuant to the preceding sentence.  The Company is not in violation of
the applicable listing requirements of the Principal Market and has no knowledge
of  any  facts  which  would  reasonably  lead to delisting or suspension of the
Common  Stock  in  the  foreseeable  future.  The issuance by the Company of the
Securities shall not have the effect of delisting or suspending the Common Stock
from  the  Principal  Market.

     (f)     Acknowledgment  Regarding  Buyer's  Purchase  of  Securities.  The
             ------------------------------------------------------------
Company acknowledges and agrees that each Buyer is acting solely in the capacity
of  an  arm's length purchaser with respect to the Transaction Documents and the
transactions contemplated hereby and thereby and that no Buyer is (i) an officer
or director of the Company, (ii) to the knowledge of the Company, an "affiliate"
of  the  Company  (as  defined  in  Rule  144)  or (iii) to the knowledge of the
Company, a "beneficial owner" of more than 10% of the shares of Common Stock (as
defined  for  purposes  of  Rule  13d-3  of the 1934 Act).   The Company further
acknowledges  that no Buyer is acting as a financial advisor or fiduciary of the
Company  (or  in  any  similar  capacity) with respect to this Agreement and the
other  Transaction  Documents  and  the  transactions  contemplated  hereby  and
thereby, and any advice given by a Buyer or any of its representatives or agents
in  connection  with  this Agreement and the other Transaction Documents and the
transactions  contemplated  hereby  and  thereby  is  merely  incidental to such
Buyer's  purchase  of  the  Securities.  The  Company further represents to each
Buyer  that  the  Company's decision to enter into the Transaction Documents has
been  based  solely  on  the  independent  evaluation  by  the  Company  and its
representatives.

     (g)     No  General  Solicitation.  Neither  the  Company,  nor  any of its
             -------------------------
Subsidiaries  or  Affiliates, nor, to the Company's knowledge, any Person acting
on  its  or  their  behalf,  has  engaged in any form of general solicitation or
general  advertising (within the meaning of Regulation D) in connection with the
offer  or  sale  of  the  Securities.  The  Company shall be responsible for the
payment  of  any  placement  agent's  fees, financial advisory fees, or brokers'
commissions  (other  than  for  persons  engaged  by any Buyer or its investment
advisor)  relating  to  or  arising out of the transactions contemplated hereby.
The Company shall pay, and hold each Buyer harmless against, any liability, loss
or  expense  (including,  without  limitation, attorney's fees and out-of-pocket
expenses)  arising  in  connection with any such claim (including any claim from
the  Placement  Agent (as defined below)).  The Company acknowledges that it has
engaged  Gunn  Allen  Financial  as  placement  agent (the "PLACEMENT AGENT") in
connection with the sale of the Securities.  Other than the Placement Agent, the
Company  has  not  engaged any placement agent or other agent in connection with
the  sale  of  the  Securities.

     (h)     No Integrated Offering.  None of the Company, its Subsidiaries, any
             ----------------------
of  their

                                        9
<PAGE>
Affiliates,  or  any  Person  acting  on  its  or  their behalf has, directly or
indirectly,  made any offers or sales of any security or solicited any offers to
buy  any security, under circumstances that would require registration of any of
the Securities under the 1933 Act or cause this offering of the Securities to be
integrated  with  prior offerings by the Company for purposes of the 1933 Act or
any  applicable  stockholder approval provisions, including, without limitation,
under the rules and regulations of any exchange or automated quotation system on
which  any  of  the securities of the Company are listed or designated.  None of
the  Company,  its Subsidiaries, their Affiliates or any Person acting on its or
their behalf will take any action or steps referred to in the preceding sentence
that  would  require registration of any of the Securities under the 1933 Act or
cause  the  offering  of  the  Securities to be integrated with other offerings.

     (i)     Dilutive Effect.  The Company understands and acknowledges that the
             ---------------
number  of  Conversion  Shares  issuable  upon  conversion  of the Notes and the
Warrant  Shares  issuable upon exercise of the Warrants will increase in certain
circumstances.  The  Company  further  acknowledges that its obligation to issue
Conversion Shares upon conversion of the Notes in accordance with this Agreement
and  the  Notes  and its obligation to issue the Warrant Shares upon exercise of
the Warrants in accordance with this Agreement and the Warrant is, in each case,
absolute  and unconditional regardless of the dilutive effect that such issuance
may  have  on  the  ownership  interests  of  other stockholders of the Company.

     (j)     Application of Takeover Protections; Rights Agreement.  The Company
             -----------------------------------------------------
and  its board of directors have taken all necessary action, if any, in order to
render  inapplicable any control share acquisition, business combination, poison
pill  (including  any  distribution  under  a rights agreement) or other similar
anti-takeover  provision  under the Articles of Incorporation or the laws of the
jurisdiction  of  its formation which is or could become applicable to any Buyer
as  a  result  of  the  transactions  contemplated by this Agreement, including,
without  limitation,  the  Company's  issuance of the Securities and any Buyer's
ownership  of  the Securities.  The Company has not adopted a stockholder rights
plan or similar arrangement relating to accumulations of beneficial ownership of
Common  Stock  or  a  change  in  control  of  the  Company.

     (k)     SEC  Documents;  Financial  Statements.  Except as disclosed in the
             --------------------------------------
SEC  Documents  or  on Schedule 3(k), during the two (2) years prior to the date
                       -------------
hereof,  the  Company  has  filed  all reports, schedules, forms, statements and
other  documents  required  to  be  filed  by  it  with  the SEC pursuant to the
reporting  requirements of the 1934 Act (all of the foregoing filed prior to the
date  hereof  and  all exhibits included therein and financial statements, notes
and  schedules  thereto  and  documents  incorporated by reference therein being
herein  referred  to  as the "SEC DOCUMENTS").  The Company has delivered to the
Buyers  or their respective representatives true, correct and complete copies of
the  SEC  Documents not available on the EDGAR system if such SEC Documents have
been  requested  in writing by Buyers.  As of their respective filing dates, the
SEC  Documents  complied  in  all material respects with the requirements of the
1934  Act  and  the  rules  and  regulations  of  the SEC promulgated thereunder
applicable to the SEC Documents, and except as subsequently amended, none of the
SEC  Documents,  at  the time they were filed with the SEC, contained any untrue
statement  of a material fact or omitted to state a material fact required to be
stated  therein  or  necessary  in  order to make the statements therein, in the
light  of  the  circumstances under which they were made, not misleading.  As of
their  respective  filing  dates,  except as subsequently amended, the financial

                                       10
<PAGE>
statements  of  the Company included in the SEC Documents complied as to form in
all  material respects with applicable accounting requirements and the published
rules  and  regulations  of  the  SEC  with  respect  thereto.  Such  financial
statements  have  been prepared in accordance with generally accepted accounting
principles, consistently applied, during the periods involved (except (i) as may
be  otherwise  indicated  in  such financial statements or the notes thereto, or
(ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes  or  may be condensed or summary statements) and fairly present in all
material  respects the financial position of the Company as of the dates thereof
and  the  results  of  its  operations and cash flows for the periods then ended
(subject,  in  the  case  of  unaudited  statements,  to  normal  year-end audit
adjustments).  No other  information  provided by or on behalf of the Company to
the Buyers in connection with the transactions  contemplated hereby which is not
included  in the  SEC  Documents,  including,  without  limitation,  information
referred to in Section 2(d) of this  Agreement or in any  disclosure  schedules,
contains any untrue  statement of a material fact or omits to state any material
fact  necessary  in  order  to  make  the  statements  therein,  in the light of
thecircumstance  under  which  they  are  or  were  made,  not  misleading.

     (l)     Absence  of  Certain  Changes.  Except  as  disclosed  in  the  SEC
             -----------------------------
Documents  or  on  Schedule  3(l),  since  the date of the Company's most recent
                   --------------
audited  financial  statements  contained  in  a  Form 10-KSB, there has been no
material  adverse  change  and  no material adverse development in the business,
assets,  properties,  operations, condition (financial or otherwise), results of
operations  or  prospects  of  the  Company.  Except  as  disclosed  in  the SEC
Documents  or  on  Schedule  3(l),  since  the date of the Company's most recent
                   --------------
audited financial statements contained in a Form 10-KSB, neither the Company nor
any  of  its  Subsidiaries has (i) declared or paid any dividends, (ii) sold any
assets,  individually  or in the aggregate, in excess of $100,000 outside of the
ordinary  course of business or (iii)  had capital expenditures, individually or
in  the  aggregate,  in  excess of $100,000.  Neither the Company nor any of its
Subsidiaries  has  taken any steps to seek protection pursuant to any bankruptcy
law  nor  does  the  Company  have  any  knowledge or reason to believe that its
creditors  intend  to  initiate involuntary bankruptcy proceedings or any actual
knowledge  of  any  fact  which  would reasonably lead a creditor to do so.  The
Company  and its Subsidiaries, individually and on a consolidated basis, are not
as  of the date hereof, and after giving effect to the transactions contemplated
hereby  to  occur at the Closing, will not be Insolvent (as defined below).  For
purposes  of  this Section 3(l), "INSOLVENT" means (i) the present fair saleable
value  of  the  Company's  assets  is  less  than the amount required to pay the
Company's  total  Indebtedness (as defined in Section 3(s)), (ii) the Company is
unable  to pay its debts and liabilities, subordinated, contingent or otherwise,
as  such  debts  and  liabilities become absolute and matured, (iii) the Company
intends  to  incur or believes that it will incur debts that would be beyond its
ability  to  pay as such debts mature or (iv) the Company has unreasonably small
capital  with  which  to  conduct  the  business  in which it is engaged as such
business  is  now  conducted  and  is  proposed  to  be  conducted.

     (m)     No  Undisclosed Events, Liabilities, Developments or Circumstances.
             ------------------------------------------------------------------
No  event,  liability, development or circumstance has occurred or exists, or is
contemplated  to  occur  with  respect to the Company, its Subsidiaries or their
respective  business,  properties, prospects, operations or financial condition,
that  would  be  required  to  be  disclosed  by  the  Company  under applicable
securities  laws  on  a  registration  statement  on  Form  SB-2  or  any  other
appropriate  form  filed  with  the  SEC relating to an issuance and sale by the
Company  of  its  Common  Stock

                                       11
<PAGE>
and  which  has  not  been  publicly  announced.

     (n)     Conduct  of  Business; Regulatory Permits.  Neither the Company nor
             -----------------------------------------
any  of  its  Subsidiaries is in material violation of any term of or in default
under its Articles of Incorporation or Bylaws or their organizational charter or
certificate  of  incorporation or bylaws, respectively.  Neither the Company nor
any  of  its  Subsidiaries  is  in material violation of any judgment, decree or
order  or  any  law,  statute,  ordinance,  rule or regulation applicable to the
Company or its Subsidiaries, and neither the Company nor any of its Subsidiaries
is,  or  will conduct its business, in violation of any of the foregoing, except
for  possible violations which would not, individually or in the aggregate, have
a  Material  Adverse  Effect.  Without limiting the generality of the foregoing,
the Company is not in violation of any of the rules, regulations or requirements
of the Principal Market and has no knowledge of any facts or circumstances which
would  reasonably  lead  to  delisting  or suspension of the Common Stock by the
Principal  Market  in the foreseeable future.  During the two (2) years prior to
the  date  hereof, (i) the Common Stock has been designated for quotation on the
Principal Market, (ii) trading in the Common Stock has not been suspended by the
SEC or the Principal Market and (iii) the Company has received no communication,
written  or  oral, from the SEC or the Principal Market regarding the suspension
or delisting of the Common Stock from the Principal Market.  The Company and its
Subsidiaries  possess all certificates, authorizations and permits issued by the
appropriate  regulatory  authorities  necessary  to  conduct  their  respective
businesses,  except  where  the  failure  to  possess  such  certificates,
authorizations  or  permits  would not have, individually or in the aggregate, a
Material  Adverse  Effect,  and  neither the Company nor any such Subsidiary has
received any notice of proceedings relating to the revocation or modification of
any  such  certificate,  authorization  or  permit.

     (o)     Foreign  Corrupt  Practices.  Neither  the  Company, nor any of its
             ---------------------------
Subsidiaries,  nor any director, officer, agent, employee or other Person acting
on  behalf  of  the Company or any of its Subsidiaries has, in the course of its
actions  for,  or  on behalf of, the Company or any of its Subsidiaries (i) used
any  corporate funds for any unlawful contribution, gift, entertainment or other
unlawful  expenses  relating  to  political  activity;  (ii)  made any direct or
indirect  unlawful  payment  to  any  foreign or domestic government official or
employee  from  corporate  funds;  (iii)  violated  or  is  in  violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made  any  unlawful  bribe, rebate, payoff, influence payment, kickback or other
unlawful  payment  to  any  foreign or domestic government official or employee.

     (p)     Sarbanes-Oxley  Act.  The Company is in compliance with any and all
             -------------------
applicable  requirements of the Sarbanes-Oxley Act of 2002 that are effective as
of the date hereof, and any and all applicable rules and regulations promulgated
by  the  SEC  thereunder  that  are  effective  as  of  the  date  hereof.

     (q)     Transactions  With  Affiliates.  Except  as  set  forth  in the SEC
             ------------------------------
Documents  filed  at  least ten days prior to the date hereof and other than the
grant  of stock options disclosed on the SEC Documents or on Schedule 3(q), none
                                                             -------------
of  the  officers,  directors  or  employees  of  the  Company  or  any  of  its
Subsidiaries  is presently a party to any transaction with the Company or any of
its Subsidiaries (other than for ordinary course services as employees, officers
or  directors), including any contract, agreement or other arrangement providing
for  the  furnishing

                                       12
<PAGE>
of  services  to  or by, providing for rental of real or personal property to or
from,  or  otherwise requiring payments to or from any such officer, director or
employee  or,  to  the  knowledge of the Company or any of its Subsidiaries, any
corporation,  partnership,  trust  or  other  entity  in which any such officer,
director,  or  employee  has  a substantial interest or is an officer, director,
trustee  or  partner.

     (r)     Equity  Capitalization.  As  of  the  date  hereof,  the authorized
             ----------------------
capital stock of the Company consists of (i) 300,000,000 shares of Common Stock,
of  which  as  of  the date hereof, 32,225,129 are issued and outstanding, up to
8,000,000  shares  will be reserved for issuance pursuant to the Company's stock
option  and  purchase  plans  and  22,500,000  shares  are reserved for issuance
pursuant  to  securities  (other than the Notes and the Warrants) exercisable or
exchangeable for, or convertible into, shares of Common Stock and (ii) 5,000,000
shares  of  preferred stock, par value $0.001 per share, of which as of the date
hereof, 1,000,000 shares of Series A Preferred Stock are issued and outstanding,
500,000 shares of Series C Preferred Stock are issued and outstanding, and 1,300
shares  of  Series  D  Preferred  Stock are issued and outstanding.  All of such
outstanding  shares  have been, or upon issuance will be, validly issued and are
fully paid and nonassessable.  Except as disclosed on Schedule 3(r): (i) none of
                                                               ----
the Company's capital stock is subject to preemptive rights or any other similar
rights  or  any liens or encumbrances suffered or permitted by the Company; (ii)
or  in  the  SEC  Documents,  there are no outstanding options, warrants, scrip,
rights  to  subscribe  to,  calls  or  commitments  of  any character whatsoever
relating  to,  or  securities  or  rights  convertible  into,  or exercisable or
exchangeable  for,  any capital stock of the Company or any of its Subsidiaries,
or  contracts,  commitments, understandings or arrangements by which the Company
or  any  of  its Subsidiaries is or may become bound to issue additional capital
stock  of  the  Company  or any of its Subsidiaries or options, warrants, scrip,
rights  to  subscribe  to,  calls  or  commitments  of  any character whatsoever
relating  to,  or  securities  or  rights  convertible  into,  or exercisable or
exchangeable  for,  any capital stock of the Company or any of its Subsidiaries;
(iii)  there  are  no  outstanding  debt  securities,  notes,  credit  or  loan
agreements,  credit  facilities  or  other  agreements, documents or instruments
evidencing  Indebtedness  (as  defined  below)  of  the  Company  or  any of its
Subsidiaries or by which the Company or any of its Subsidiaries is or may become
bound;  (iv)  there  are  no  financing  statements  securing obligations in any
material  amounts,  either  singly or in the aggregate, filed in connection with
the  Company  or  any  of  its  Subsidiaries;  (v)  there  are  no agreements or
arrangements  under which the Company or any of its Subsidiaries is obligated to
register the sale of any of their securities under the 1933 Act (except pursuant
to  the Registration Rights Agreement); (vi) there are no outstanding securities
or  instruments  of  the  Company  or  any of its Subsidiaries which contain any
redemption  or  similar  provisions,  and  there  are no contracts, commitments,
understandings  or  arrangements by which the Company or any of its Subsidiaries
is  or  may become bound to purchase, repurchase, retire or redeem a security of
the  Company  or  any  of  its  Subsidiaries;  (vii)  there are no securities or
instruments  containing  anti-dilution  or  similar  provisions  that  will  be
triggered  by  the  issuance of the Securities; (viii) the Company does not have
any  stock  appreciation  rights  or  "phantom stock" plans or agreements or any
similar  plan  or  agreement;  and (ix) the Company and its Subsidiaries have no
liabilities or obligations required to be disclosed in the SEC Documents but not
so  disclosed  in  the  SEC Documents, other than those incurred in the ordinary
course  of  the  Company's or its Subsidiaries' respective businesses and which,
individually  or  in  the aggregate, do not or would not have a Material Adverse
Effect.  The  Company  has  furnished  to  the  Buyers  true,  correct  and

                                       13
<PAGE>
complete copies of the Company's Articles of Incorporation, as amended and as in
effect  on  the date hereof (the "ARTICLES OF INCORPORATION"), and the Company's
Bylaws,  as  amended  and  as  in effect on the date hereof (the "BYLAWS").  The
terms  of  all  securities convertible into, or exercisable or exchangeable for,
shares of Common Stock and the material rights of the holders thereof in respect
thereto  are  disclosed  in  the  SEC  Documents  or  on  Schedule  3(r).
                                                                    ----

     (s)     Indebtedness  and  Other  Contracts.  Except  as  disclosed  on
             -----------------------------------
Schedule3(s), or any of the other Schedules attached hereto, neither the Company
------------
nor  any  of  its  Subsidiaries (i) has any outstanding Indebtedness (as defined
below),  (ii) is a party to any contract, agreement or instrument, the violation
of  which,  or  default  under  which, by the other party(ies) to such contract,
agreement  or  instrument would result in a Material Adverse Effect, (iii) is in
violation  of  any  term  of  or  in  default  under  any contract, agreement or
instrument  relating  to  any  Indebtedness,  except  where  such violations and
defaults  would  not  result,  individually  or  in the aggregate, in a Material
Adverse  Effect,  or  (iv)  is  a party to any contract, agreement or instrument
relating  to  any Indebtedness, the performance of which, in the judgment of the
Company's  officers,  has or is expected to have a Material Adverse Effect.  The
Company's  SEC Documents and Schedule 3(s) provide a detailed description of the
                             -------------
material  terms  of  any  such  outstanding  Indebtedness.  For purposes of this
Agreement:  (x)  "INDEBTEDNESS" of any Person means, without duplication (A) all
indebtedness  for  borrowed  money,  (B)  all  obligations issued, undertaken or
assumed  as  the  deferred  purchase  price  of  property  or services including
(without  limitation)  "Capital  Leases"  in  accordance with generally accepted
accounting  principles  (other  than trade payables entered into in the ordinary
course  of  business), (C) all reimbursement or payment obligations with respect
to  letters  of  credit,  surety  bonds  and  other similar instruments, (D) all
obligations  evidenced  by  notes,  bonds,  debentures  or  similar instruments,
including  obligations  so evidenced incurred in connection with the acquisition
of property, assets or businesses, (E) all indebtedness created or arising under
any  conditional  sale  or  other  title  retention  agreement,  or  incurred as
financing,  in  either case with respect to any property or assets acquired with
the  proceeds  of  such indebtedness (even though the rights and remedies of the
seller  or  bank  under  such  agreement  in the event of default are limited to
repossession  or  sale of such property), (F) all monetary obligations under any
leasing  or  similar  arrangement  which,  in connection with generally accepted
accounting  principles, consistently applied for the periods covered thereby, is
classified  as  a capital lease, (G) all indebtedness referred to in clauses (A)
through  (F)  above secured by (or for which the holder of such Indebtedness has
an  existing  right,  contingent  or  otherwise, to be secured by) any mortgage,
lien,  pledge,  charge,  security  interest  or other encumbrance upon or in any
property or assets (including accounts and contract rights) owned by any Person,
even  though  the  Person  which owns such assets or property has not assumed or
become  liable  for  the  payment  of  such indebtedness, and (H) all Contingent
Obligations  in  respect  of  indebtedness or obligations of others of the kinds
referred to in clauses (A) through (G) above; (y) "CONTINGENT OBLIGATION" means,
as  to any Person, any direct or indirect liability, contingent or otherwise, of
that  Person  with  respect  to  any  indebtedness,  lease,  dividend  or  other
obligation  of  another  Person  if  the primary purpose or intent of the Person
incurring such liability, or the primary effect thereof, is to provide assurance
to the obligee of such liability that such liability will be paid or discharged,
or  that  any  agreements  relating  thereto  will be complied with, or that the
holders  of  such liability will be protected (in whole or in part) against loss
with  respect thereto; and (z) "PERSON" means an individual, a limited liability
company,  a  partnership,  a  joint  venture,  a  corporation,  a  trust,  an
unincorporated  organization

                                       14
<PAGE>
and  a  government  or  any  department  or  agency  thereof.

     (t)     Absence  of  Litigation.  There  is  no  action,  suit, proceeding,
             -----------------------
inquiry  or  investigation  before or by the Principal Market, any court, public
board,  government  agency,  self-regulatory organization or body pending or, to
the knowledge of the Company, threatened against or affecting the Company or any
of  its  Subsidiaries,  the Common Stock or any of the Company's Subsidiaries or
any of the Company's or its Subsidiaries' officers or directors, which is in the
aggregate  material  to the Company, except as set forth in the SEC Documents or
on  Schedule  3(t).
              ----

     (u)     Insurance.  The Company and each of its Subsidiaries are insured by
             ---------
insurers  of  recognized  financial responsibility against such losses and risks
and  in  such  amounts  as  management of the Company believes to be prudent and
customary  in  the  businesses  in  which  the  Company and its Subsidiaries are
engaged.  Neither  the  Company  nor  any  such  Subsidiary has been refused any
insurance  coverage  sought  or applied for and neither the Company nor any such
Subsidiary  has  any  reason  to  believe  that it will not be able to renew its
existing  insurance  coverage  as  and  when  such coverage expires or to obtain
similar  coverage  from  similar  insurers  as  may be necessary to continue its
business  at  a  cost  that  would  not  have  a  Material  Adverse  Effect.

     (v)     Employee  Relations.
             -------------------

          (i)     Neither  the Company nor any of its Subsidiaries is a party to
any  collective  bargaining  agreement  or  employs  any member of a union.  The
Company  and  its Subsidiaries believe that their relations with their employees
are  good.  No  executive  officer of the Company or any of its Subsidiaries (as
defined  in  Rule  501(f)  of the 1933 Act) has notified the Company or any such
Subsidiary that such officer intends to leave the Company or any such Subsidiary
or  otherwise  terminate  such officer's employment with the Company or any such
Subsidiary.  To  the  knowledge  of  the  Company,  no  executive officer of the
Company  or  any of its Subsidiaries, is, or is now expected to be, in violation
of  any material term of any employment contract, confidentiality, disclosure or
proprietary  information  agreement,  non-competition  agreement,  or  any other
contract  or agreement or any restrictive covenant, and the continued employment
of  each  such  executive  officer  does  not  subject the Company or any of its
Subsidiaries  to  any  liability  with  respect to any of the foregoing matters.

          (ii)     The  Company  and its Subsidiaries are in material compliance
with  all  federal,  state,  local  and  foreign laws and regulations respecting
labor, employment and employment practices and benefits, terms and conditions of
employment  and  wages and hours, except where failure to be in compliance would
not,  either  individually or in the aggregate, reasonably be expected to result
in  a  Material  Adverse  Effect.

     (w)     Title.  The  Company  and its Subsidiaries have good and marketable
             -----
title  in  fee  simple to all real property and good and marketable title to all
personal property owned by them which is material to the business of the Company
and its Subsidiaries, in each case free and clear of all liens, encumbrances and
defects  except  for Permitted Liens and except such as do not materially affect
the  value  of such property and do not interfere with the use made and proposed

                                       15
<PAGE>
to  be  made  of such property by the Company and any of its Subsidiaries.   Any
real  property  and  facilities  held  under lease by the Company and any of its
Subsidiaries  are  held  by  them under valid, subsisting and enforceable leases
with  such exceptions as are not material and do not interfere with the use made
and  proposed  to be made of such property and facilities by the Company and its
Subsidiaries.

     (x)     Intellectual  Property  Rights.  Except  as  set  forth  in the SEC
             ------------------------------
Documents  or  on  Schedule3(x), the Company and its Subsidiaries own or possess
                   ------------
adequate  rights  or licenses to use all trademarks, trade names, service marks,
service  mark  registrations, service names, patents, patent rights, copyrights,
inventions,  licenses, approvals, governmental authorizations, trade secrets and
other intellectual property rights ("INTELLECTUAL PROPERTY RIGHTS") necessary to
conduct  their  respective  businesses as now conducted.  Except as set forth in
the  SEC  Documents  or  on  Schedule  3(x),  none of the Company's Intellectual
                                       ----
Property  Rights  have  expired  or  terminated,  or  are  expected to expire or
terminate,  within  three  years from the date of this Agreement.  Except as set
forth  in  the  SEC Documents or on Schedule 3(x), the Company does not have any
                                    -------------
knowledge of any infringement by the Company or its Subsidiaries of Intellectual
Property  Rights  of others.  There is no claim, action or proceeding being made
or  brought,  or  to the knowledge of the Company, being threatened, against the
Company  or  any of its Subsidiaries regarding its Intellectual Property Rights.
The  Company  is  unaware of any facts or circumstances which might give rise to
any  of  the  foregoing  infringements  or  claims, actions or proceedings.  The
Company  and its Subsidiaries have taken reasonable security measures to protect
the  secrecy,  confidentiality  and  value of all of their Intellectual Property
Rights.

     (y)     Environmental  Laws.  To  the  Company's knowledge, the Company and
             -------------------
its  Subsidiaries  (i) are in material compliance with any and all Environmental
Laws (as hereinafter defined), (ii) have received all material permits, licenses
or  other  approvals  required  of  them  under applicable Environmental Laws to
conduct  their  respective  businesses and (iii) are in material compliance with
all  terms and conditions of any such permit, license or approval where, in each
of  the foregoing clauses (i), (ii) and (iii), the failure to so comply could be
reasonably  expected  to  have,  individually  or  in  the aggregate, a Material
Adverse  Effect.  The  term "ENVIRONMENTAL LAWS" means all federal, state, local
or  foreign  laws  relating  to  pollution  or protection of human health or the
environment  (including,  without  limitation,  ambient  air,  surface  water,
groundwater,  land surface or subsurface strata), including, without limitation,
laws  relating  to  emissions,  discharges,  releases  or threatened releases of
chemicals,  pollutants, contaminants, or toxic or hazardous substances or wastes
(collectively,  "HAZARDOUS  MATERIALS")  into  the  environment,  or  otherwise
relating  to the manufacture, processing, distribution, use, treatment, storage,
disposal,  transport  or  handling  of  Hazardous  Materials,  as  well  as  all
authorizations,  codes,  decrees,  demands  or  demand  letters,  injunctions,
judgments,  licenses,  notices  or  notice  letters,  orders,  permits, plans or
regulations  issued,  entered,  promulgated  or  approved  thereunder.

     (z)     Subsidiary  Rights.  Except as set forth in the SEC Documents or on
             ------------------
Schedule 3(z),  the  Company and its Subsidiaries have the unrestricted right to
-------------
vote,  and  (subject  to  limitations  imposed  by  applicable  law)  to receive
dividends  and  distributions  on, all capital securities of its Subsidiaries as
owned  by  the  Company  or  such  Subsidiary.

                                       16
<PAGE>
     (aa)     Investment  Company.  The  Company is not, and is not an affiliate
              -------------------
of,  an "investment company" within the meaning of the Investment Company Act of
1940,  as  amended.

     (bb)     Tax  Status.  Except  as  disclosed  in  the  SEC  Documents or on
              -----------
Schedule  3(bb),  the Company and each of its Subsidiaries (i) has made or filed
---------------
all  foreign,  federal  and  state income and all other tax returns, reports and
declarations  required by any jurisdiction to which it is subject, (ii) has paid
all  taxes  and  other governmental assessments and charges that are material in
amount, shown or determined to be due on such returns, reports and declarations,
except  those being contested in good faith and (iii) has set aside on its books
provision  reasonably  adequate  for  the  payment  of  all  taxes  for  periods
subsequent  to the periods to which such returns, reports or declarations apply.
Except  as  disclosed  in  the  SEC Documents or on Schedule 3(bb), there are no
                                                    --------------
unpaid taxes in any material amount claimed to be due by the taxing authority of
any  jurisdiction, and the officers of the Company know of no basis for any such
claim.  Except  as disclosed in the SEC Documents or on Schedule 3(bb), no liens
                                                        --------------
have  been  filed  and no claims are being asserted by or against the Company or
any  of  its  Subsidiaries with respect to any taxes (other than liens for taxes
not  yet  due  and  payable).  Except  as  disclosed  in the SEC Documents or on
Schedule  3(bb),  neither the Company nor it Subsidiaries has received notice of
---------------
assessment  or  proposed assessment of any taxes claimed to be owed by it or any
other  Person  on  its  behalf.  Except  as disclosed in the SEC Documents or on
Schedule  3(bb),  neither  the  Company nor any Subsidiary is a party to any tax
---------------
sharing  or  tax  indemnity agreement or any other agreement of a similar nature
that remains in effect.  Except as disclosed in the SEC Documents or on Schedule
                                                                        --------
3(bb),  each  of  the  Company and its Subsidiaries has complied in all material
-----
respects  with  all  applicable  legal  requirements relating to the payment and
withholding  of  taxes and, within the time and in the manner prescribed by law,
has  withheld  from  wages,  fees and other payments and paid over to the proper
governmental  or  regulatory  authorities  all  amounts  required.

     (cc)     Internal Accounting and Disclosure Controls.  The Company and each
              -------------------------------------------
of its Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that (i) transactions are executed in accordance
with  management's  general  or  specific  authorizations, (ii) transactions are
recorded  as  necessary  to  permit  preparation  of  financial  statements  in
conformity  with  generally accepted accounting principles and to maintain asset
and  liability  accountability,  (iii)  access  to  assets  or  incurrence  of
liabilities  is  permitted  only  in  accordance  with  management's  general or
specific  authorization  and  (iv)  the  recorded  accountability for assets and
liabilities  is  compared with the existing assets and liabilities at reasonable
intervals  and  appropriate  action is taken with respect to any difference (the
"INTERNAL  ACCOUNTING  CONTROLS").  To  the  best  of its knowledge, the Company
maintains  disclosure  controls  and procedures (as such term is defined in Rule
13a-14  under  the  1934  Act)  that  are  reasonably effective in ensuring that
information required to be disclosed by the Company in the reports that it files
or  submits  under the 1934 Act is recorded, processed, summarized and reported,
within  the time periods specified in the rules and forms of the SEC, including,
without  limitation, controls and procedures designed to ensure that information
required  to be disclosed by the Company in the reports that it files or submits
under  the 1934 Act is accumulated and communicated to the Company's management,
including  its  principal  executive  officer  or  officers  and  its  principal
financial  officer  or  officers,  as  appropriate,  to  allow  timely decisions
regarding  required  disclosure.

                                       17
<PAGE>
     (dd)     Off  Balance  Sheet  Arrangements.  There  is  no  transaction,
              ---------------------------------
arrangement,  or  other  relationship  between  the  Company  or  any  of  its
Subsidiaries  and  an  unconsolidated  or other off balance sheet entity that is
required  to  be  disclosed  by  the  Company in the SEC Documents and is not so
disclosed  or  that  otherwise  would  be  reasonably  likely to have a Material
Adverse  Effect.

     (ee)     Ranking  of  Notes.  Except  as  set  forth  on  Schedule (ee), no
              ------------------                               -------------
Indebtedness of the Company is senior to or ranks  pari passu  with the Notes in
right  of  payment,  whether  with  respect of payment of redemptions, interest,
damages  or  upon  liquidation  or  dissolution  or  otherwise.

     (ff)     Form  SB-2  Eligibility.  The  Company is eligible to register the
              -----------------------
Conversion  Shares  and  the  Warrant Shares for resale by the Buyers using Form
SB-2  promulgated  under  the  1933  Act.

     (gg)     Transfer  Taxes.  On the Closing Date, all stock transfer or other
              ---------------
taxes  (other  than  income  or  similar taxes) which are required to be paid in
connection with the sale and transfer of the Securities to be sold to each Buyer
hereunder will be, or will have been, fully paid or provided for by the Company,
and  all  material  laws  imposing such taxes will be or will have been complied
with.

     (hh)     Manipulation of Price.  The Company and its Subsidiaries have not,
              ---------------------
and  to  the  Company's  knowledge  no  one acting on its behalf has, (i) taken,
directly  or indirectly, any action designed to cause or to result or that could
reasonably  be  expected to cause or result in the stabilization or manipulation
of  the price of any security of the Company to facilitate the sale or resale of
any  of  the  Securities,  (ii)  other  than the Placement Agent, sold, bid for,
purchased,  or  paid  any  compensation  for soliciting purchases of, any of the
Securities,  or  (iii)  other than the Placement Agent, paid or agreed to pay to
any  person  any  compensation  for  soliciting  another  to  purchase any other
securities  of  the  Company.

     (ii)     U.S.  Real  Property Holding Corporation.  The Company is not, nor
              ----------------------------------------
has  ever  been,  a U.S. real property holding corporation within the meaning of
Section  897  of  the Internal Revenue Code of 1986, as amended, and the Company
shall  so  certify  upon  Buyer's  request.

     (jj)     Disclosure.  The  Company  confirms  that neither it nor any other
              ----------
Person  acting  on  its behalf has provided any of the Buyers or their agents or
counsel with any information that constitutes or could reasonably be expected to
constitute  material,  nonpublic  information  other  than  the existence of the
transactions  contemplated by this Agreement or the other Transaction Documents.
The  Company  understands  and confirms that each of the Buyers will rely on the
foregoing  representations  in effecting transactions in the Securities.  To the
best  knowledge  of the Company, all disclosure provided to the Buyers regarding
the  Company,  its  business and the transactions contemplated by this Agreement
and the other Transaction Documents, including the Schedules and Exhibits hereto
and  thereto,  furnished  by or on behalf of the Company is true and correct and
does  not  contain  any untrue statement of a material fact or omit to state any
material  fact  necessary in order to make the statements made herein or herein,
in  the  light  of  the

                                       18
<PAGE>
circumstances  under  which  they were made, not misleading.  Each press release
issued  by  the  Company  or  its  Subsidiaries  during  the  twelve (12) months
preceding  the date of this Agreement, which was not subsequently corrected, did
not  contain any untrue statement of a material fact or omit to state a material
fact  required to be stated therein or necessary in order to make the statements
therein,  in  the  light  of  the  circumstances under which they were made, not
misleading.  No  event  or  circumstance has occurred or information exists with
respect  to  the  Company  or  any of its Subsidiaries or its or their business,
assets,  liabilities,  properties, prospects, operations or financial conditions
(financial  or  otherwise),  which,  under  applicable  law, rule or regulation,
requires public disclosure or announcement by the Company but which has not been
so  publicly  announced  or  disclosed.

     (kk)     Lien  Searches.  Within six (6) Business Days prior to the Closing
              --------------
Date,  the  Company shall have delivered or caused to be delivered to each Buyer
certified  copies  of UCC financing statement search results listing any and all
effective financing statements filed within five years prior to such date in any
applicable  jurisdiction that name the Company or any of their Subsidiaries as a
debtor to perfect an interest in any of the assets thereof, together with copies
of such financing statements.  In addition, attached hereto as Schedule 3(kk) is
                                                               --------------
a  list of all proposed liens that will be created in connection with financings
relating  to  the acquisition of any future Subsidiary, which proposed liens and
the  liens  disclosed by the lien search to be provided within six Business Days
after  the  Closing Date are herein defined as the "Permitted Liens."  Except as
provided  in  the  Permitted  Liens,  no  financing  statements,  except for any
financing  statements  filed  with  respect  to  the  Senior Indebtedness and as
otherwise agreed to in writing by the Buyers as provided herein, shall cover any
of  the  "Collateral" (as defined in the Security Documents), and the results of
searches  for  any effective tax liens and judgment liens filed against any such
Person  or its property in any applicable jurisdiction, which results, except as
otherwise  agreed to in writing by the Buyers, shall not show any such effective
tax  liens  and  judgment  liens.

     (ll)     Waiver  of  Rights  Offering.  Each  of Gottbetter Capital Master,
              ----------------------------
Ltd., Pierce Diversified Strategy Master Fund LLC, Castlerigg Master Investments
Ltd.  and  UBS  O'Connor  LLC  (F/B/O O'Connor Pipes Corporate Strategies Master
Ltd.)  have  received  that certain Offer Notice dated July 19, 2006 (the "OFFER
NOTICE")  delivered  by  the  Company  pursuant  to Section 4(q) of that certain
Securities  Purchase  Agreement  dated  May  19,  2006  (the  "SERIES D PURCHASE
AGREEMENT")  and (b) each has waived its right to participate in the offering of
the securities by the Company referenced in the Offer Notice as Buyers under the
Series  D  Purchase  Agreement  (such  written waivers, the "SERIES D WAIVERS").

4.     COVENANTS.
       ----------

     (a)     Best  Efforts.  Each  party  shall  use  its best efforts timely to
             -------------
satisfy  each  of the conditions to be satisfied by it as provided in Sections 6
and  7  of  this  Agreement.

     (b)     Form  D  and  Blue  Sky.  The  Company agrees to file a Form D with
             -----------------------
respect  to  the Securities as required under Regulation D and to provide a copy
thereof  to  each  Buyer  promptly  after such filing.  The Company shall, on or
before  the  Closing  Date,  take  such  action  as the Company shall reasonably
determine  is  necessary  in  order to obtain an exemption for or to qualify the
Securities  for  sale  to  the  Buyers at the Closing pursuant to this Agreement
under

                                       19
<PAGE>
applicable  securities or "Blue Sky" laws of the states of the United States (or
to  obtain  an exemption from such qualification), and shall provide evidence of
any  such  action  so  taken to the Buyers on or prior to the Closing Date.  The
Company shall make all filings and reports relating to the offer and sale of the
Securities required under applicable securities or "Blue Sky" laws of the states
of  the  United  States  following  the  Closing  Date.

     (c)     Reporting  Status.  Until  the  date  on  which  the  Investors (as
             -----------------
defined in the Registration Rights Agreement) shall have sold all the Conversion
Shares  and Warrant Shares and none of the Notes or Warrants is outstanding (the
"REPORTING  PERIOD"),  the  Company  shall file all reports required to be filed
with  the  SEC pursuant to the 1934 Act, and the Company shall not terminate its
status as an issuer required to file reports under the 1934 Act even if the 1934
Act  or  the  rules  and  regulations  thereunder  would  otherwise  permit such
termination.

     (d)     Use  of  Proceeds.  The Company will use the proceeds from the sale
             -----------------
of  the  Securities  substantially  as  set  forth  in  Schedule  4(d).
                                                        --------------

     (e)     Financial Information.  The Company agrees to send the following to
             ---------------------
each  Investor  (as  defined  in  the  Registration Rights Agreement) during the
Reporting  Period  (i) unless the following are filed with the SEC through EDGAR
and  are  available  to  the  public  through  the  EDGAR system, within one (1)
Business Day after the filing thereof with the SEC, a copy of its Annual Reports
on  Form 10-K or 10-KSB, any interim reports or any consolidated balance sheets,
income  statements,  stockholders' equity statements and/or cash flow statements
for  any  period  other  than  annual,  any  Current Reports on Form 8-K and any
registration statements (other than on Form S-8) or amendments filed pursuant to
the 1933 Act, (ii) on the same day as the release thereof, facsimile or e-mailed
copies  of  all press releases issued by the Company or any of its Subsidiaries,
and (iii) copies of any notices and other information made available or given to
the  stockholders  of  the  Company generally, contemporaneously with the making
available  or giving thereof to the stockholders.  As used herein "Business Day"
means  any  other  day  other  than  a  Saturday,  Sunday, or other day on which
commercial  banks  in  The City of New York are authorized or required by law to
remain  closed.

     (f)     Listing.  Pursuant  to  the  Registration  Rights  Agreement,  the
             -------
Company  shall  promptly secure the listing of all of the Registrable Securities
(as  defined in the Registration Rights Agreement) upon each national securities
exchange  and automated quotation system, if any, upon which the Common Stock is
then  listed  (subject  to  official notice of issuance) and shall maintain such
listing of all Registrable Securities from time to time issuable under the terms
of  the  Transaction  Documents.  The  Company shall maintain the Common Stock's
authorization  for  quotation  on the Principal Market.  Neither the Company nor
any of its Subsidiaries shall take any action which would be reasonably expected
to  result  in  the delisting or suspension of the Common Stock on the Principal
Market.  The  Company  shall  pay  all  fees  and  expenses  in  connection with
satisfying  its  obligations  under  this  Section  4(f).

     (g)     Fees.  The Company shall (i) pay Gottbetter & Partners, LLP ("G&P")
             ----
$40,000  in  legal  fees  plus  reasonable  expenses  and  (ii)  shall reimburse
Gottbetter  Capital  Finance,  LLC  (a  Buyer)  ("GCF") or its designee(s) up to
$15,000  for  due  diligence  and all reasonable expenses incurred in connection
with  the  transactions  contemplated  by  the  Transaction  Documents

                                       20
<PAGE>
(including  all reasonable legal fees and disbursements in connection therewith,
documentation  and  implementation  of  the  transactions  contemplated  by  the
Transaction  Documents and due diligence in connection therewith), which amounts
shall  be  withheld  by  such Buyer from its Purchase Price at the Closing.  The
Company  shall  be  responsible  for  the payment of any placement agent's fees,
financial advisory fees, or broker's commissions (other than for Persons engaged
by any Buyer) relating to or arising out of the transactions contemplated by the
Transaction  Documents  including,  without  limitation, any fees or commissions
payable  to  the  Placement  Agent.  The  Company shall pay, and hold each Buyer
harmless against, any liability, loss or expense (including, without limitation,
reasonable  attorney's  fees  and  out-of-pocket expenses) arising in connection
with  any  claim  against  a  Buyer  relating  to  any  such payment.  Except as
otherwise  set  forth in the Transaction Documents, each party to this Agreement
shall bear its own expenses in connection with the sale of the Securities to the
Buyers.

     (h)     Pledge of Securities.  The Company acknowledges and agrees that the
             --------------------
Securities  may  be pledged by an Investor in connection with a bona fide margin
agreement  or  other  loan  or  financing  arrangement  that  is  secured by the
Securities.  The pledge of Securities shall not be deemed to be a transfer, sale
or assignment of the Securities hereunder, and no Investor effecting a pledge of
Securities  shall  be required to provide the Company with any notice thereof or
otherwise  make  any  delivery  to the Company pursuant to this Agreement or any
other  Transaction Document, including, without limitation, Section 2(f) hereof;
provided  that  an Investor and its pledgee shall be required to comply with the
provisions  of  Section  2(f)  hereof  in  order  to  effect a sale, transfer or
assignment  of Securities to such pledgee.  The Company hereby agrees to execute
and  deliver  such  documentation  as a pledgee of the Securities may reasonably
request  in  connection  with  a  pledge of the Securities to such pledgee by an
Investor.

     (i)     Disclosure  of  Transactions and Other Material Information.  On or
             -----------------------------------------------------------
before  8:30  a.m., New York Time, on the fourth Business Day following the date
of  this  Agreement,  the  Company  shall  file  a  Current  Report  on Form 8-K
describing  the  terms  of  the  transactions  contemplated  by  the Transaction
Documents  in  the  form  required  by  the  1934 Act and attaching the material
Transaction  Documents  (including, without limitation, this Agreement, the form
of Note, the form of Warrant, the Registration Rights Agreement and the Security
Agreement)  as  exhibits  to such filing (collectively, the "8-K FILING").  From
and  after  the  filing  of  the 8-K Filing with the SEC, the Company shall have
disclosed  any  material,  nonpublic  information delivered to the Buyers by the
Company, any of its Subsidiaries or any of their respective officers, directors,
employees,  stockholders, representatives or agents.  The Company shall not, and
shall  cause  each  of  its  Subsidiaries  and  its and each of their respective
officers,  directors,  employees  and agents, not to, provide any Buyer with any
material, nonpublic information regarding the Company or any of its Subsidiaries
from  and  after  the  filing of the 8-K Filing with the SEC without the express
written  consent  of  such  Buyer.  In  the  event  of a breach of the foregoing
covenant  by  the  Company, its Subsidiaries, or any of its respective officers,
directors, employees and agents, in addition to any other remedy provided herein
or  in  the Transaction Documents, a Buyer shall have the right to make a public
disclosure,  in  the form of a press release, public advertisement or otherwise,
of  such  material,  nonpublic  information  without  the  prior approval by the
Company,  its  Subsidiaries,  or  any  of  their respective officers, directors,
employees  or  agents.  No  Buyer  shall  have any liability to the Company, its
Subsidiaries,  or any of its or their respective officers, directors, employees,
stockholders  or  agents  for  any  such

                                       21
<PAGE>
disclosure.  Subject  to the foregoing, none of the Company, its Subsidiaries or
any  Buyer  shall  issue  any press releases or any other public statements with
respect  to  the  transactions  contemplated hereby; provided, however, that the
Company  shall be entitled, without the prior approval of any Buyer, to make any
press  release  or other public disclosure with respect to such transactions (i)
in  substantial  conformity  with  the  8-K  Filing  and  substantially
contemporaneously  therewith  and  (ii)  as  is  required  by applicable law and
regulations  (provided  that  in the case of clause (i) the Required Holders (as
defined  in  the Notes) shall be consulted by the Company in connection with any
such  press  release  or  other  public  disclosure  prior  to  its  release).

     (j)     Restriction on Redemption and Cash Dividends.  So long as any Notes
             --------------------------------------------
are  outstanding,  the  Company  shall  not,  directly or indirectly, redeem, or
declare  or  pay  any cash dividend, except for the Series D Preferred Stock, or
distribution  on  the  Common Stock or preferred stock without the prior express
written  consent  of  the  Required  Holders.

     (k)     Additional  Notes; Variable Securities; Dilutive Issuances.  Except
             ----------------------------------------------------------
as  may  be permitted with respect to the purchase of any of its Subsidiaries as
disclosed  on  Schedule  4(k) attached hereto, so long as any Buyer beneficially
               --------------
owns  any  Notes, the Company will not issue any Notes (other than to the Buyers
as  contemplated  hereby)  and  the Company shall not issue any other securities
that  would cause a breach or default under the Notes.  For long as any Notes or
Warrants remain outstanding, the Company shall not, in any manner, issue or sell
any  rights,  warrants  or  options to subscribe for or purchase Common Stock or
directly  or  indirectly  convertible  into  or  exchangeable or exercisable for
Common  Stock  at  a price which varies or may vary with the market price of the
Common Stock, including by way of one or more reset(s) to any fixed price unless
the  conversion,  exchange or exercise price of any such security cannot be less
than the then applicable Conversion Price (as defined in the Notes) with respect
to  the  Common  Stock into which any Note is convertible or the then applicable
Exercise  Price  (as  defined  in the Warrants) with respect to the Common Stock
into  which any Warrant is exercisable.  Except as may be permitted with respect
to  the  purchase  of  any  of  its  Subsidiaries  and  as  disclosed in the SEC
Documents,  or  so long as any Notes or Warrants remain outstanding, the Company
shall not, in any manner, enter into or affect any Dilutive Issuance (as defined
in the Notes) if the effect of such Dilutive Issuance is to cause the Company to
be  required to issue upon conversion of any Note or exercise of any Warrant any
shares  of Common Stock in excess of that number of shares of Common Stock which
the  Company  has  authorized  and  reserved for purposes of such conversions or
exercises  or  which  the  Company  may  issue  upon conversion of the Notes and
exercise  of  the Warrants without breaching the Company's obligations under the
rules  or  regulations  of  the  Principal  Market.

     (l)     Corporate Existence.  So long as any Buyer beneficially owns any
             -------------------
Securities, the Company shall not be party to any Fundamental Transaction (as
defined in the Notes) unless the Company is in compliance with the applicable
provisions governing Fundamental Transactions set forth in the Notes and the
Warrants.

     (m)     Reservation  of  Shares.  So long as any Buyer owns any Securities,
             -----------------------
the Company shall take all action necessary to at all times have authorized, and
reserved  for the purpose of issuance, no less than 175% of the number of shares
of  Common  Stock  issuable  upon  conversion

                                       22
<PAGE>
of  all of the Notes and issuable upon exercise of the Warrants then outstanding
(without  taking  into account any limitations on the conversion of the Notes or
exercise  of  the  Warrants  set forth in the Notes and Warrants, respectively).

     (n)     Conduct  of  Business.  The  business  of  the  Company  and  its
             ---------------------
Subsidiaries  shall  not  be  conducted  in  violation  of any law, ordinance or
regulation  of  any  government,  or  any  department  or  agency  thereof  or
governmental  entity,  except  where  such  violations  would not result, either
individually  or  in  the  aggregate,  in  a  Material  Adverse  Effect.

     (o)     Additional  Issuances  of  Securities.
             -------------------------------------

          (i)     For  purposes  of this Section 4(o), the following definitions
     shall  apply.

               (1)     "CONVERTIBLE  SECURITIES"  means  any stock or securities
          (other  than  Options)  convertible  into  or  exercisable  or
          exchangeable  for  shares  of  Common  Stock.

               (2)     "OPTIONS"  means  any  rights,  warrants  or  options  to
          subscribe  for  or  purchase  shares  of  Common  Stock or Convertible
          Securities.

               (3)     "COMMON  STOCK  EQUIVALENTS" means, collectively, Options
          and  Convertible  Securities.

          (ii)     Except  as  may  be required in connection with the Company's
     acquisition  of  any  of  its  future Subsidiaries as disclosed on Schedule
                                                                        --------
     4(k)  attached  hereto,  or  other  obligations  as  disclosed  in  the SEC
     ----
     Documents,  from the date hereof until the date that is 30 Trading Days (as
     defined  in  the  Notes) following the Effective Date (the "TRIGGER DATE"),
     the Company will not, directly or indirectly, offer, sell, grant any option
     to purchase, or otherwise dispose of (or announce any offer, sale, grant or
     any  option  to  purchase  or  other  disposition  of)  any  of  its or its
     Subsidiaries'  equity  or  equity  equivalent securities, including without
     limitation  any  debt, preferred stock or other instrument or security that
     is,  at  any  time during its life and under any circumstances, convertible
     into  or  exchangeable  or exercisable for shares of Common Stock or Common
     Stock Equivalents (any such offer, sale, grant, disposition or announcement
     being  referred  to  as  a  "SUBSEQUENT  PLACEMENT").

          (iii)     Except  as  may be required in connection with the Company's
     acquisition  of  any  of  its  Subsidiaries,  or  other  obligations  as
     disclosed  in  the  SEC  Documents, from the Trigger Date until the date on
     which  none  of the Notes is outstanding, the Company will not, directly or
     indirectly,  effect  any Subsequent Placement unless the Company shall have
     first  complied  with  this  Section  4(o)(iii).

               (1)     The  Company  shall deliver to each Buyer who still holds
          Notes  a  written  notice  (the  "OFFER  NOTICE")  of  any proposed or
          intended  issuance or sale or exchange (the "OFFER") of the securities
          being  offered  (the  "OFFERED SECURITIES") in a Subsequent Placement,
          which  Offer  Notice  shall  (w)  identify

                                       23
<PAGE>
          and  describe  the  Offered  Securities,  (x)  describe  the price and
          other  terms  upon which they are to be issued, sold or exchanged, and
          the  number  or amount of the Offered Securities to be issued, sold or
          exchanged, (y) identify the persons or entities (if known) to which or
          with  which  the Offered Securities are to be offered, issued, sold or
          exchanged  and  (z)  offer  to issue and sell to or exchange with such
          Buyers  all of the Offered Securities, allocated among such Buyers (a)
          based  on  such  Buyer's  pro  rata portion of the aggregate principal
          amount of Notes purchased hereunder (the "BASIC AMOUNT"), and (b) with
          respect  to  each  Buyer that elects to purchase its Basic Amount, any
          additional portion of the Offered Securities attributable to the Basic
          Amounts  of other Buyers as such Buyer shall indicate it will purchase
          or acquire should the other Buyers subscribe for less than their Basic
          Amounts  (the  "UNDERSUBSCRIPTION  AMOUNT").

               (2)     To  accept an Offer, in whole or in part, such Buyer must
          deliver  a  written  notice  to  the  Company  prior to the end of the
          tenth  (10th  )  Business  Day after such Buyer's receipt of the Offer
          Notice (the "OFFER PERIOD"), setting forth the portion of such Buyer's
          Basic  Amount  that  such  Buyer elects to purchase and, if such Buyer
          shall elect to purchase all of its Basic Amount, the Undersubscription
          Amount,  if  any,  that such Buyer elects to purchase (in either case,
          the  "NOTICE  OF  ACCEPTANCE"). If the Basic Amounts subscribed for by
          all  Buyers  are less than the total of all of the Basic Amounts, then
          each Buyer who has set forth an Undersubscription Amount in its Notice
          of  Acceptance shall be entitled to purchase, in addition to the Basic
          Amounts subscribed for, the Undersubscription Amount it has subscribed
          for;  provided,  however,  that  if  the  Undersubscription  Amounts
                --------  --------
          subscribed  for  exceed  the  difference  between the total of all the
          Basic  Amounts  and  the  Basic Amounts subscribed for (the "AVAILABLE
          UNDERSUBSCRIPTION  AMOUNT"),  each  Buyer  who  has subscribed for any
          Undersubscription  Amount  shall  be  entitled  to  purchase only that
          portion  of the Available Undersubscription Amount as the Basic Amount
          of such Buyer bears to the total Basic Amounts of all Buyers that have
          subscribed  for  Undersubscription Amounts, subject to rounding by the
          Company  to  the  extent  it  deems  reasonably  necessary.

               (3)     Following the expiration of the Offer Period, the Company
          shall  as  promptly  as  reasonably  practicable offer, issue, sell or
          exchange  all  or  any  part  of such Offered Securities as to which a
          Notice  of  Acceptance  has not been given by the Buyers (the "REFUSED
          SECURITIES"),  but  only to the offerees described in the Offer Notice
          (if  so  described  therein)  and  only  upon  terms  and  conditions
          (including,  without  limitation, unit prices and interest rates) that
          are  not  more  favorable  to  the acquiring person or persons or less
          favorable  to  the  Company  than those set forth in the Offer Notice.

               (4)     In  the event the Company shall propose to sell less than
          all  the  Refused  Securities  (any  such sale to be in the manner and
          on the terms specified in Section 4(o)(iii)(3) above), then each Buyer
          may,  at its sole option and in its sole discretion, reduce the number
          or  amount  of  the  Offered  Securities  specified

                                       24
<PAGE>
          in  its  Notice  of  Acceptance  to  an  amount that shall be not less
          than  the  number  or amount of the Offered Securities that such Buyer
          elected  to purchase pursuant to Section 4(o)(iii)(2) above multiplied
          by  a  fraction,  (i)  the  numerator  of which shall be the number or
          amount  of  Offered Securities the Company actually proposes to issue,
          sell or exchange (including Offered Securities to be issued or sold to
          Buyers pursuant to Section 4(o)(iii)(3) above prior to such reduction)
          and  (ii) the denominator of which shall be the original amount of the
          Offered  Securities.  In  the event that any Buyer so elects to reduce
          the  number or amount of Offered Securities specified in its Notice of
          Acceptance,  the Company may not issue, sell or exchange more than the
          reduced  number  or  amount of the Offered Securities unless and until
          such  securities  have  again been offered to the Buyers in accordance
          with  Section  4(o)(iii)(1)  above.

               (5)     Upon the closing of the issuance, sale or exchange of all
          or  less  than  all  of  the  Refused  Securities,  the  Buyers  shall
          acquire  from  the Company, and the Company shall issue to the Buyers,
          the number or amount of Offered Securities specified in the Notices of
          Acceptance,  as  reduced pursuant to Section 4(o)(iii)(3) above if the
          Buyers have so elected, upon the terms and conditions specified in the
          Offer. The purchase by the Buyers of any Offered Securities is subject
          in all cases to the preparation, execution and delivery by the Company
          and  the  Buyers  of  a  purchase  agreement  relating to such Offered
          Securities reasonably satisfactory in form and substance to the Buyers
          and  their  respective  counsel  and  to  the Company and its counsel.

               (6)     Any  Offered  Securities  not  acquired  by the Buyers or
          other  persons  in  accordance  with  Section  4(o)(iii)(3)  above may
          not  be  issued, sold or exchanged until they are again offered to the
          Buyers  under  the  procedures  specified  in  this  Agreement.

          (iv)     The  restrictions  contained in subsections (ii) and (iii) of
     this  Section  4(o)  shall  not  apply  in  connection with the issuance of
     any  Excluded  Securities  (as  defined  in  the  Notes).

     (p)     Additional  Registration Statements.  Until the Effective Date, the
             -----------------------------------
Company  will  not  file a registration statement under the 1933 Act relating to
securities  that  are  not  the  Securities.

     (q)     No  Short  Position.  Each  of  the  Buyers  and any of its Trading
             -------------------
Affiliates  do  not  have  an  open  short  position  in  the  Common  Stock.

     (r)     Account  Control  Agreements.  The  Company  shall  deliver  to the
             ----------------------------
Buyer(s)  within  ten  (10)  Business Days following the Closing Date, a deposit
account  control  agreement, in form and substance satisfactory to the Buyer(s),
duly  executed  by  the  Company,  the  Buyer(s)  and  the  Company's  bank (the
"DEPOSITORY  BANK")  with  respect  to  the  accounts  of  the  Company  and, if
applicable,  the accounts of its Subsidiaries maintained at the Depository Bank.

                                       25
<PAGE>
     (s)     Transactions  With  Affiliates.  Except  as  may  be  required  in
             ------------------------------
connection  with  the Company's future acquisition of any of its Subsidiaries as
disclosed on Schedule 4(k) attached hereto, or other obligations as disclosed in
             -------------
the  SEC  Documents,  so long as any Note or Warrant is outstanding, the Company
shall  not,  and shall cause each of its Subsidiaries not to, enter into, amend,
modify  or  supplement, or permit any Subsidiary to enter into, amend, modify or
supplement  any  agreement,  transaction, commitment, or arrangement with any of
its  or  any  Subsidiary's  officers,  directors,  person  who  were officers or
directors  at  any  time  during  the  previous  two (2) years, stockholders who
beneficially  own  five  percent (5%) or more of the Common Stock, or Affiliates
(as  defined  below)  or  with  any  individual  related  by blood, marriage, or
adoption  to  any such individual or with any entity in which any such entity or
individual owns a five percent (5%) or more beneficial interest (each a "RELATED
PARTY"),  except  for (a) customary employment arrangements and benefit programs
on  reasonable terms, (b) any agreement, transaction, commitment, or arrangement
on  an  arms-length basis on terms no less favorable than terms which would have
been  obtainable  from  a  person  other  than  such  Related  Party, or (c) any
agreement  transaction,  commitment,  or  arrangement  which  is  approved  by a
majority of the disinterested directors of the Company, for purposes hereof, any
director  who is also an officer of the Company or any subsidiary of the Company
shall  not  be  a  disinterested  director  with  respect to any such agreement,
transaction, commitment, or arrangement.  "Affiliate" for purposes hereof means,
with respect to any person or entity, another person or entity that, directly or
indirectly,  (i)  has a ten percent (10%) or more equity interest in that person
or  entity, (ii) has ten percent (10%) or more common ownership with that person
or  entity,  (iii) controls that person or entity, or (iv) shares common control
with  that  person or entity.  "Control" or "controls" for purposes hereof means
that  a person or entity has the power, direct or indirect, to conduct or govern
the  policies  of  another  person  or  entity.

     (t)     Restriction  on  Issuance  of  the Capital Stock.  Except as may be
             ------------------------------------------------
required  in  connection  with  the  Company's  future acquisition of any of its
Subsidiaries as disclosed on Schedule 4(k) attached hereto, or other obligations
                             -------------
as  disclosed  in  the  SEC  Documents,  and  except for Excluded Securities (as
defined  in the Notes), the Company shall not, without the prior written consent
of  the  Buyers,  (i)  issue  or  sell shares of Common Stock or preferred stock
without  consideration or for a consideration per share less than the greater of
the  Closing  Bid  Price of the Common Stock determined immediately prior to its
issuance  or $0.01, if the Common Stock is not traded or quoted on the Principal
Market  or  any  national  exchange,  (ii)  issue  any  warrant,  option, right,
contract,  call,  or  other security instrument granting the holder thereof, the
right  to acquire Common Stock without consideration or for a consideration less
than  the  greater  of  such  Common  Stock's Closing Bid Price value determined
immediately prior to its issuance or $0.01, if the Common Stock is not traded on
the  Principal  Market  or  any national exchange, (iii) enter into any security
instrument  granting the holder a security interest in any assets of the Company
or  its  Subsidiaries,  or  (iv)  file  any  registration statement on Form S-8,
provided  that  (x)  such  shares  are not issued without consideration or for a
consideration  less  than the greater of the Common Stock's Closing Bid Price on
the  date  of  issuance or $0.01, if the Common Stock is not traded or quoted on
the  Principal  Market  or  any  national  exchange,  and  (y)  such  Form  S-8
registration statement is not filed prior to 90 days following the effectiveness
of  the  registration  statement.  "Closing  Bid  Price" on any day shall be the
closing  bid  price  for  a  share of Common Stock on such date on the Principal
Market (or such other exchange, market, or other system that the Common Stock is
then  traded  on),  as  reported  on Bloomberg, L.P. (or similar organization or
agency  succeeding  to  its  functions  of  reporting  prices).

                                       26
<PAGE>
     (u)     Removal  of  Legend.  In  addition  to  the Buyer's other available
             -------------------
remedies,  the  Company  shall  pay to the Buyer, in cash, as partial liquidated
damages  and  not  as  a  penalty,  for  each  $1,000  of  Warrant Shares and/or
Conversion  Shares  (based  on the closing price of the Common Stock on the date
such  Warrant  Shares  and/or  Conversion  Shares are submitted to the Company's
transfer  agent),  $5  per  trading  day (increasing to $10 per Trading Day five
Trading Days after such damages have begun to accrue) for each trading day after
the  third  trading  day  following  delivery  by  a Buyer to the Company or the
Company's  transfer  agent  of  a certificate representing Warrant Shares and/or
Conversion  Shares  issued  with a restrictive legend, until such certificate is
delivered  to the Buyer with such legend removed. Nothing herein shall limit the
Buyer's  right  to  pursue actual damages for the failure of the Company and its
transfer  agent  to deliver certificates representing any securities as required
hereby  or  by  the Irrevocable Transfer Agent Instructions, and the Buyer shall
have  the  right  to  pursue  all  remedies available to it at law or in equity,
including,  without  limitation,  a  decree  of  specific  performance  and/or
injunctive  relief.

     (v)     Conduct of Business.  Neither the Company nor its Subsidiaries will
             -------------------
conduct  its  business  in  violation  of  any  term  of or in default under its
Certificate or Articles of Incorporation or Bylaws.  Neither the Company nor any
of  its  Subsidiaries  will  conduct  its business in violation of any judgment,
decree  or order or any statute, ordinance, rule or regulation applicable to the
Company  or  its  Subsidiaries,  except for possible violations which would not,
individually  or  in  the  aggregate,  have  a  Material  Adverse  Effect.

     (w)     Collateral  Agent.
             ------------------

               (i)     Each  Buyer  hereby  (a)  appoints GCF, as the collateral
agent  hereunder  and  under the other Security Documents (in such capacity, the
"COLLATERAL  AGENT"), and (b) authorizes the Collateral Agent (and its officers,
directors,  employees  and agents) to take such action on such Buyer's behalf in
accordance  with  the  terms hereof and thereof.  The Collateral Agent shall not
have,  by  reason  hereof  or  any  of the other Security Documents, a fiduciary
relationship  in  respect of any Buyer.  Neither the Collateral Agent nor any of
its  officers,  directors,  employees and agents shall have any liability to any
Buyer  for  any  action taken or omitted to be taken in connection hereof or any
other  Security Document except to the extent caused by its own gross negligence
or  willful  misconduct, and each Buyer agrees to defend, protect, indemnify and
hold harmless the Collateral Agent and all of its officers, directors, employees
and  agents  (collectively, the "COLLATERAL AGENT INDEMNITEES") from and against
any  losses,  damages,  liabilities, obligations, penalties, actions, judgments,
suits,  fees,  costs  and  expenses  (including,  without limitation, reasonable
attorneys'  fees,  costs  and  expenses)  incurred  by  such  Collateral  Agent
Indemnitee,  whether  direct,  indirect  or  consequential,  arising  from or in
connection  with  the  performance  by  such  Collateral Agent Indemnitee of the
duties  and  obligations  of  Collateral  Agent  pursuant  hereto  or any of the
Security  Documents.

               (ii)     The  Collateral Agent shall be entitled to rely upon any
written  notices,  statements,  certificates,  orders  or other documents or any
telephone  message believed by it in good faith to be genuine and correct and to
have  been  signed,  sent  or made by the proper Person, and with respect to all
matters  pertaining  to  this  Agreement  or  any  of  the  other

                                       27
<PAGE>
Transaction  Documents  and  its  duties hereunder or thereunder, upon advice of
counsel  selected  by  it.

               (iii)     The  Collateral  Agent  (i)  may  resign  from  the
performance  of  all  its functions and duties hereunder and under the Notes and
the  Security  Documents  at  any time by giving at least ten (10) Business Days
prior  written  notice  to the Company and each holder of the Notes and (ii) the
Collateral Agent shall immediately resign if Gottbetter Capital Finance, LLC, or
one  of  its  affiliates,  is no longer a holder of the Notes.  Such resignation
shall  take  effect  upon  the  acceptance  by  a  successor Collateral Agent of
appointment as provided below.  Upon any such notice of resignation, the holders
of  a  majority  of  the  outstanding  principal under the Notes shall appoint a
successor  Collateral  Agent.  Upon  the  acceptance  of  the  appointment  as
Collateral  Agent,  such  successor Collateral Agent shall succeed to and become
vested  with  all  the  rights,  powers,  privileges  and duties of the retiring
Collateral Agent, and the retiring Collateral Agent shall be discharged from its
duties  and  obligations  under this Agreement, the Notes and the other Security
Documents.  After  any  Collateral Agent's resignation hereunder, the provisions
of  this  Section  4(w)  shall  inure to its benefit.  If a successor Collateral
Agent shall not have been so appointed within said ten (10) Business Day period,
the  retiring  Collateral  Agent shall then appoint a successor Collateral Agent
who  shall  serve  until  such time, if any, as the holders of a majority of the
outstanding  principal  under  the Notes appoint a successor Collateral Agent as
provided  above.

5.     REGISTER;  TRANSFER  AGENT  INSTRUCTIONS.
       ----------------------------------------

     (a)     Register.  The  Company  shall  maintain at its principal executive
             --------
offices  (or  such  other office or agency of the Company as it may designate by
notice  to each holder of Securities), a register for the Notes and the Warrants
in  which  the  Company shall record the name and address of the Person in whose
name the Notes and the Warrants have been issued (including the name and address
of  each  transferee),  the  principal  amount of Notes held by such Person, the
number of Conversion Shares issuable upon conversion of the Notes and the number
of  Warrant  Shares  issuable upon exercise of the Warrants held by such Person.
The  Company  shall  keep  the  register  open and available at all times during
business  hours  for  inspection  by  any  Buyer  or  its legal representatives.

     (b)     Transfer  Agent  Instructions.  The Company shall issue irrevocable
             -----------------------------
instructions  to its transfer agent, and any subsequent transfer agent, to issue
certificates  or  credit  shares  to  the  applicable  balance  accounts  at The
Depository  Trust  Company  ("DTC"), registered in the name of each Buyer or its
respective  nominee(s),  for the Conversion Shares and the Warrant Shares issued
at  the  Closing  or upon conversion of the Notes or exercise of the Warrants in
such  amounts  as  specified from time to time by each Buyer to the Company upon
conversion  of  the  Notes  or exercise of the Warrants in the form of Exhibit E
                                                                       ---------
attached  hereto  (the  "IRREVOCABLE TRANSFER AGENT INSTRUCTIONS").  The Company
warrants  that  no  instruction  other  than  the  Irrevocable  Transfer  Agent
Instructions referred to in this Section 5(b), and stop transfer instructions to
give effect to Section 2(g) hereof, will be given by the Company to its transfer
agent,  and  that  the  Securities shall otherwise be freely transferable on the
books and records of the Company as and to the extent provided in this Agreement
and  the  other Transaction Documents.  If a Buyer effects a sale, assignment or
transfer  of  the  Securities in accordance with Section 2(f), the Company shall
permit  the  transfer  and  shall  promptly  instruct  its  transfer  agent

                                       28
<PAGE>
to  issue  one  or  more certificates or credit shares to the applicable balance
accounts  at  DTC  in  such  name and in such denominations as specified by such
Buyer to effect such sale, transfer or assignment.  In the event that such sale,
assignment  or  transfer  involves  Conversion  Shares  or  Warrant Shares sold,
assigned  or  transferred  pursuant  to  an  effective registration statement or
pursuant  to  Rule  144,  the  transfer agent shall issue such Securities to the
Buyer,  assignee  or  transferee,  as  the  case may be, without any restrictive
legend.  The  Company  acknowledges  that  a  breach  by  it  of its obligations
hereunder  will  cause  irreparable  harm  to a Buyer.  Accordingly, the Company
acknowledges  that  the remedy at law for a breach of its obligations under this
Section  5(b)  will  be  inadequate  and  agrees,  in  the  event of a breach or
threatened  breach by the Company of the provisions of this Section 5(b), that a
Buyer  shall  be  entitled,  in  addition to all other available remedies, to an
order  and/or injunction restraining any breach and requiring immediate issuance
and  transfer,  without  the  necessity of showing economic loss and without any
bond  or  other  security  being  required.

6.     CONDITIONS  TO  THE  COMPANY'S  OBLIGATION  TO  SELL.
       -----------------------------------------------------

     The obligation of the Company hereunder to issue and sell the Notes and the
related Warrants to each Buyer at the Closing is subject to the satisfaction, at
or  before  the Closing Date, of each of the following conditions, provided that
these  conditions  are  for  the Company's sole benefit and may be waived by the
Company  at  any  time in its sole discretion by providing each Buyer with prior
written  notice  thereof:

          (i)     Such  Buyer  shall  have  executed  each  of  the  Transaction
     Documents  to  which  it  is  a  party  and  delivered  the  same  to  the
     Company.

          (ii)     Such  Buyer  and each other Buyer shall have delivered to the
     Company  the  Purchase  Price  (less,  in  the  case  of  GCF,  the amounts
     withheld  pursuant  to Section 4(g)) for the Notes and the related Warrants
     being  purchased  by  such  Buyer  at  the  Closing  by  wire  transfer  of
     immediately  available  funds pursuant to the wire instructions provided by
     the  Company.

          (iii)     The  representations  and  warranties of such Buyer shall be
     true  and  correct  in  all  material respects as of the date when made and
     as  of  the  Closing  Date  as  though  made  at  that  time  (except  for
     representations  and warranties that speak as of a specific date), and such
     Buyer shall have performed, satisfied and complied in all material respects
     with the covenants, agreements and conditions required by this Agreement to
     be  performed,  satisfied or complied with by such Buyer at or prior to the
     Closing  Date.

7.     CONDITIONS  TO  EACH  BUYER'S  OBLIGATION  TO  PURCHASE.
       -------------------------------------------------------

     The  obligation  of  each  Buyer  hereunder  to  purchase the Notes and the
related Warrants at the Closing is subject to the satisfaction, at or before the
Closing  Date,  of  each  of  the  following  conditions,  provided  that  these
conditions  are for each Buyer's sole benefit and may be waived by such Buyer at
any  time  in  its  sole  discretion by providing the Company with prior written
notice  thereof:

                                       29
<PAGE>
          (i)     The Company shall have executed and delivered (or, in the case
     of  any  Transaction  Document  to  which  a  Subsidiary is a party, caused
     such  Subsidiary  to  execute  and  deliver)  to such Buyer (A) each of the
     Transaction  Documents  to  which  it or any Subsidiary is a party, (B) the
     Notes  (in  such  principal  amounts  as  such  Buyer  shall request) being
     purchased  by such Buyer at the Closing pursuant to this Agreement, and (C)
     the  Warrants (in such amounts as such Buyer shall request) being purchased
     by  such  Buyer  at  the  Closing  pursuant  to  this  Agreement.

          (ii)     Such Buyer shall have received the opinion of Glast, Phillips
     &  Murray,  P.C.,  the  Company's  outside counsel, dated as of the Closing
     Date,  in  substantially the form of Exhibit F attached hereto and a letter
                                          ---------
     stating  that  the  Company  is  good  standing  with  its  attorneys.

          (iii)     The  Company  shall have delivered to such Buyer a true copy
     of  the  Irrevocable  Transfer  Agent  Instructions,  which  instructions
     shall  have  been delivered to and acknowledged in writing by the Company's
     transfer  agent.

          (iv)     The Company shall have delivered to such Buyer a true copy of
     a  certificate  evidencing  the  formation  and  good  standing  of  the
     Company  and  each  of  its  Subsidiaries  in such entity's jurisdiction of
     formation  issued  by the Secretary of State (or comparable office) of such
     jurisdiction,  as  of  a  date  within  ten  (10) days of the Closing Date.

          (v)     The  Company shall have delivered to such Buyer a true copy of
     a  certificate  evidencing  the  Company's  and  each  Subsidiary's
     qualification  as  a  foreign  corporation  and good standing issued by the
     Secretary of State (or comparable office) of each jurisdiction in which the
     Company  or such Subsidiary conducts business, as of a date within ten (10)
     days  of  the  Closing  Date.

          (vi)     The  Company  shall  have delivered to such Buyer a certified
     copy  of  the  Articles  of  Incorporation as certified by the Secretary of
     State  of  the  State of Delaware within ten (10) days of the Closing Date.

          (vii)     The  Company  shall  have  delivered  to  such  Buyer  a
     certificate,  executed  by  the  Chief  Executive  Officer  of  the Company
     and dated as of the Closing Date, as to (i) the resolutions consistent with
     Section  3(b)  as  adopted  by  the  Company's Board of Directors in a form
     reasonably acceptable to such Buyer, (ii) the Articles of Incorporation and
     (iii)  the  Bylaws,  each as in effect at the Closing, in the form attached
     hereto  as  Exhibit  G.
                 ----------

          (viii)     The  representations and warranties of the Company shall be
     true  and  correct  in  all  material  respects (other than representations
     and  warranties  that  are  already  qualified  by  materiality or Material
     Adverse  Effect  which shall be true and correct in all respects) as of the
     date  when  made  and  as  of  the Closing Date as though made at that time
     (except  for  representations  and  warranties  that speak as of a specific
     date)  and  the Company shall have performed, satisfied and complied in all
     respects  with  the  covenants,

                                       30
<PAGE>
     agreements  and  conditions  required  by  the  Transaction Documents to be
     performed,  satisfied  or  complied  with by the Company at or prior to the
     Closing Date. Such Buyer shall have received a certificate, executed by the
     Chief  Executive  Officer  of the Company, dated as of the Closing Date, to
     the  foregoing  effect  and  as  to such other matters as may be reasonably
     requested  by  such  Buyer  in  the  form  attached  hereto  as  Exhibit H.
                                                                      ---------

          (ix)     The  Company shall have delivered to such Buyer a letter from
     the  Company's  transfer  agent  certifying  the number of shares of Common
     Stock  outstanding  as  of  a date within two (2) days of the Closing Date.

          (x)     The  Common  Stock  (I)  shall  be designated for quotation or
     listed  on  the  Principal  Market  and (II) shall not have been suspended,
     as  of the Closing Date, by the SEC or the Principal Market from trading on
     the  Principal  Market  nor  shall  suspension  by the SEC or the Principal
     Market  have been threatened, as of the Closing Date, either (A) in writing
     by  the  SEC  or  the  Principal Market or (B) by falling below the minimum
     listing  maintenance  requirements  of  the  Principal  Market.

          (xi)     The  Company shall have obtained all governmental, regulatory
     or  third  party  consents  and  approvals,  if any, necessary for the sale
     of  the  Securities and the grant of the security interest in the assets of
     the  Company  and  its  Subsidiaries, including the consent of any existing
     lender  or  landlord  of  the  Company  or  any  Subsidiary, as applicable.

          (xii)     The  Company  shall  have  provided  to  the  Buyer  an
     acknowledgement,  to  the  satisfaction  of  the  Buyer, from the Company's
     certified  public  accountant  as  to  its  ability to provide all consents
     required  in order to file a registration statement in connection with this
     transaction  and  that  the  Company is in good standing with its auditors.

          (xiii)     Within six (6) Business Days prior to the Closing Date, the
     Company  shall  have  delivered  or  caused  to  be delivered to each Buyer
     (A)  true  copies  of UCC search results setting forth the Permitted Liens,
     and  the  results  of  searches  for  any  tax lien and judgment lien filed
     against  such  Person  or  its property, which results, except as otherwise
     agreed  to  in  writing  by  the  Buyers  shall not show any such Liens (as
     defined  in  the  Security Documents); and (B) a perfection opinion in form
     and  substance  satisfactory  to  the  Buyers.

          (xiv)     The  Company shall have delivered to the Buyers the Series D
     Waiver  signed  by  all  of  the Buyers in the Series D Purchase Agreement.

          (xv)     The  Company  shall  have  delivered to such Buyer such other
     documents  relating  to  the  transactions  contemplated  by this Agreement
     as  such  Buyer  or  its  counsel  may  reasonably  request.

8.     TERMINATION.  In  the event that the Closing shall not have occurred with
       -----------
respect  to  a

                                       31
<PAGE>
Buyer  on  or  before  five  (5)  Business  Days from the date hereof due to the
Company's  or  such  Buyer's  failure  to  satisfy  the  conditions set forth in
Sections  6  and  7  above  (and  the nonbreaching party's failure to waive such
unsatisfied  condition(s)),  the  nonbreaching  party  shall  have the option to
terminate  this Agreement with respect to such breaching party without liability
to  any  other  party;  provided,  however, that if this Agreement is terminated
                        --------   -------
pursuant  to this Section 8, the Company shall remain obligated to reimburse the
non-breaching  Buyers  for  the  expenses  described  in  Section  4(g)  above.

9.     MISCELLANEOUS.
       -------------

     (a)     Governing  Law; Jurisdiction; Jury Trial.  All questions concerning
             ----------------------------------------
the  construction,  validity,  enforcement  and interpretation of this Agreement
shall  be governed by the internal laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the
State  of  New York or any other jurisdictions) that would cause the application
of  the  laws of any jurisdictions other than the State of New York.  Each party
hereby  irrevocably  submits  to  the  exclusive  jurisdiction  of the state and
federal  courts  sitting  in The City of New York, Borough of Manhattan, for the
adjudication  of  any  dispute  hereunder  or in connection herewith or with any
transaction  contemplated  hereby  or  discussed  herein, and hereby irrevocably
waives,  and  agrees  not to assert in any suit, action or proceeding, any claim
that  it  is  not personally subject to the jurisdiction of any such court, that
such  suit, action or proceeding is brought in an inconvenient forum or that the
venue  of  such  suit,  action  or  proceeding  is  improper.  Each party hereby
irrevocably  waives  personal  service  of process and consents to process being
served  in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such  service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.   EACH PARTY HEREBY IRREVOCABLY
WAIVES  ANY  RIGHT  IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION  OF  ANY  DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF
THIS  AGREEMENT  OR  ANY  TRANSACTION  CONTEMPLATED  HEREBY.

     (b)     Counterparts.  This  Agreement  may  be  executed  in  two  or more
             ------------
identical  counterparts,  all  of  which  shall  be  considered one and the same
agreement  and shall become effective when counterparts have been signed by each
party  and  delivered  to  the  other party; provided that a facsimile signature
shall  be  considered  due  execution  and  shall  be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a  facsimile  signature.

     (c)     Headings.  The  headings  of  this Agreement are for convenience of
             --------
reference  and  shall  not  form  part of, or affect the interpretation of, this
Agreement.

     (d)     Severability.  If  any provision of this Agreement shall be invalid
             ------------
or  unenforceable in any jurisdiction, such invalidity or unenforceability shall
not  affect the validity or enforceability of the remainder of this Agreement in
that  jurisdiction  or  the  validity or enforceability of any provision of this
Agreement  in  any  other  jurisdiction.

                                       32
<PAGE>
     (e)     Entire  Agreement;  Amendments.  This  Agreement  and  the  other
             ------------------------------
Transaction  Documents  supersede  all  other  prior  oral or written agreements
between  the  Buyers,  the Company, their Affiliates and Persons acting on their
behalf  with  respect  to  the matters discussed herein, and this Agreement, the
other  Transaction  Documents  and the instruments referenced herein and therein
contain  the  entire  understanding  of  the parties with respect to the matters
covered  herein  and  therein  and,  except  as specifically set forth herein or
therein,  neither  the Company nor any Buyer makes any representation, warranty,
covenant  or  undertaking  with  respect  to such matters.  No provision of this
Agreement  may  be  amended other than by an instrument in writing signed by the
Company  and  the  Required Holders, and any amendment to this Agreement made in
conformity  with  the  provisions  of  this Section 9(e) shall be binding on all
Buyers  and  holders  of  Securities, as applicable.  No provision hereof may be
waived  other  than by an instrument in writing signed by the party against whom
enforcement  is sought.  No such amendment shall be effective to the extent that
it  applies  to  less  than all of the holders of the applicable Securities then
outstanding.  No  consideration  shall be offered or paid to any Person to amend
or  consent  to  a  waiver  or  modification  of  any  provision  of  any of the
Transaction  Documents  unless  the same consideration also is offered to all of
the  parties  to  the  Transaction Documents, holders of Notes or holders of the
Warrants, as the case may be.  The Company has not, directly or indirectly, made
any  agreements  with  any  Buyers  relating  to  the terms or conditions of the
transactions  contemplated  by  the Transaction Documents except as set forth in
the  Transaction  Documents.

     (f)     Notices.  Any  notices,  consents,  waivers or other communications
             -------
required  or  permitted to be given under the terms of this Agreement must be in
writing  and  will  be  deemed  to  have been delivered:  (i) upon receipt, when
delivered  personally;  (ii)  upon  receipt,  when  sent  by facsimile (provided
confirmation  of  transmission  is  mechanically or electronically generated and
kept on file by the sending party); or (iii) one Business Day after deposit with
an  overnight  courier  service, in each case properly addressed to the party to
receive  the  same.  The addresses and facsimile numbers for such communications
shall  be:

     If to the Company:

                              Charys Holding Company, Inc.
                              1117 Perimeter Center West, Suite N415
                              Atlanta, GA 30338
                              Attention:     Billy Ray, Jr.
                              Telephone:     678-443-2300
                              Facsimile:     678-443-2320

     Copy to (for informational purposes only):

                              Glast, Phillips & Murray, P.C.
                              815 Walker Street, Suite 1250
                              Houston, Texas 77002
                              Attention:     Norman T. Reynolds, Esq.

                                       33
<PAGE>
                              Telephone:     713-237-3135
                              Facsimile:     713-237-3202

     If to the Transfer Agent:

                              Fidelity Transfer Company
                              1800 S. West Temple, Suite 301
                              Salt Lake City, Utah 84115
                              Attention:     Heidi Sadowski
                              Telephone:     801-484-7222
                              Facsimile:     801-466-4122

     If  to  a  Buyer,  to  its  address  and  facsimile number set forth on the
Schedule  of Buyers, with copies to such Buyer's representatives as set forth on
the  Schedule  of  Buyers,  with  a  copy  (for informational purposes only) to:

                              Gottbetter & Partners, LLP
                              488 Madison Avenue, 12th Floor
                              New York, New York 10022
                              Telephone:     (212) 400-6900
                              Facsimile:     (212) 400-6901
                              Attention:     Jason M. Rimland, Esq.

     or to such other address and/or facsimile number and/or to the attention of
such  other  Person as the recipient party has specified by written notice given
to  each  other  party  five (5) days prior to the effectiveness of such change.
Written  confirmation  of  receipt  (A)  given  by the recipient of such notice,
consent,  waiver  or  other  communication,  (B)  mechanically or electronically
generated by the sender's facsimile machine containing the time, date, recipient
facsimile  number  and  an  image  of the first page of such transmission or (C)
provided  by  an  overnight  courier  service  shall  be  rebuttable evidence of
personal  service,  receipt  by  facsimile  or receipt from an overnight courier
service  in  accordance  with  clause  (i),  (ii)  or (iii) above, respectively.

     (g)     Successors  and  Assigns.  This Agreement shall be binding upon and
             ------------------------
inure to the benefit of the parties and their respective successors and assigns,
including  any  purchasers  of the Notes or the Warrants.  The Company shall not
assign  this  Agreement or any rights or obligations hereunder without the prior
written  consent  of  the  Required Holders (unless the Company is in compliance
with  the  applicable provisions governing Fundamental Transactions set forth in
the  Notes  and  the  Warrants).  A  Buyer  may assign some or all of its rights
hereunder without the consent of the Company, in which event such assignee shall
be deemed to be a Buyer hereunder with respect to such assigned rights; provided
that  such  assignee  agrees  in  writing  to  be bound by all of the provisions
contained  herein.

     (h)     No  Third  Party Beneficiaries.  This Agreement is intended for the
             ------------------------------
benefit  of  the  parties  hereto  and their respective permitted successors and
assigns,  and, except as set forth in Section 9(k) below, is not for the benefit
of,  nor  may  any  provision  hereof  be  enforced  by,  any

                                       34
<PAGE>
other  Person.

     (i)     Survival.  Unless this Agreement is terminated under Section 8, the
             --------
representations  and  warranties  of  the  Company  and  the Buyers contained in
Sections 2 and 3 and the agreements and covenants set forth in Sections 4, 5 and
9  shall  survive the Closing.  Each Buyer shall be responsible only for its own
representations,  warranties,  agreements  and  covenants  hereunder.

     (j)     Further  Assurances.  Each  party shall do and perform, or cause to
             -------------------
be  done  and performed, all such further acts and things, and shall execute and
deliver  all  such other agreements, certificates, instruments and documents, as
any  other  party  may  reasonably  request in order to carry out the intent and
accomplish  the  purposes  of  this  Agreement  and  the  consummation  of  the
transactions  contemplated  hereby.

     (k)     Indemnification.  In  consideration  of  each Buyer's execution and
             ---------------
delivery  of  the  Transaction Documents and acquiring the Securities thereunder
and  in addition to all of the Company's other obligations under the Transaction
Documents,  the  Company shall defend, protect, indemnify and hold harmless each
Buyer  and  each  other  holder of the Securities and all of their stockholders,
partners,  members,  managers,  officers,  directors,  employees  and  direct or
indirect  investors  and  any  of  the  foregoing  Persons'  agents  or  other
representatives  (including,  without  limitation,  those retained in connection
with  the  transactions  contemplated  by  this  Agreement)  (collectively,  the
"INDEMNITEES")  from  and  against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection  therewith (irrespective of whether any such Indemnitee is a party to
the  action  for  which  indemnification  hereunder  is  sought),  and including
reasonable  attorneys'  fees  and disbursements (the "INDEMNIFIED LIABILITIES"),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a)
any  misrepresentation  or  breach of any representation or warranty made by the
Company or any Subsidiary in the Transaction Documents or any other certificate,
instrument  or  document  contemplated  hereby or thereby, (b) any breach of any
covenant,  agreement or obligation of the Company or any Subsidiary contained in
the  Transaction  Documents  or  any  other  certificate, instrument or document
contemplated hereby or thereby or (c) any cause of action, suit or claim brought
or made against such Indemnitee by a third party (including for these purposes a
derivative  action  brought  on  behalf  of  the  Company) and arising out of or
resulting  from  (i)  the execution, delivery, performance or enforcement of the
Transaction  Documents  or  any  other  certificate,  instrument  or  document
contemplated  hereby or thereby, (ii) any transaction financed or to be financed
in  whole  or in part, directly or indirectly, with the proceeds of the issuance
of  the  Securities, (iii) any disclosure made by such Buyer pursuant to Section
4(i),  or  (iv)  the  status  of  such  Buyer  or holder of the Securities as an
investor  in  the  Company  pursuant  to  the  transactions  contemplated by the
Transaction  Documents.  To  the  extent  that  the foregoing undertaking by the
Company  may be unenforceable for any reason, the Company shall make the maximum
contribution  to  the  payment  and  satisfaction  of  each  of  the Indemnified
Liabilities  which is permissible under applicable law.  Except as otherwise set
forth  herein,  the  mechanics  and  procedures  with  respect to the rights and
obligations  under  this  Section  9(k)  shall be the same as those set forth in
Section  6  of  the  Registration  Rights  Agreement.

                                       35
<PAGE>
     (l)     No  Strict  Construction.  The language used in this Agreement will
             ------------------------
be  deemed  to  be  the  language  chosen by the parties to express their mutual
intent,  and  no rules of strict construction will be applied against any party.

     (m)     Remedies.  Each  Buyer and each holder of the Securities shall have
             --------
all  rights  and  remedies set forth in the Transaction Documents and all rights
and  remedies  which  such holders have been granted at any time under any other
agreement  or  contract  and all of the rights which such holders have under any
law.  Any  Person  having any rights under any provision of this Agreement shall
be entitled to enforce such rights specifically (without posting a bond or other
security),  to  recover damages by reason of any breach of any provision of this
Agreement  and  to  exercise  all other rights granted by law.  Furthermore, the
Company  recognizes  that  in  the  event  that it fails to perform, observe, or
discharge  any  or  all  of its obligations under the Transaction Documents, any
remedy  at  law  may  prove  to be inadequate relief to the Buyers.  The Company
therefore  agrees  that  the  Buyers  shall  be  entitled  to seek temporary and
permanent  injunctive  relief  in any such case without the necessity of proving
actual  damages  and  without  posting  a  bond  or  other  security.

     (n)     Rescission  and  Withdrawal Right.  Notwithstanding anything to the
             ---------------------------------
contrary  contained  in  (and  without  limiting  any similar provisions of) the
Transaction Documents, whenever any Buyer exercises a right, election, demand or
option  under a Transaction Document and the Company does not timely perform its
related  obligations  within  the  periods therein provided, then such Buyer may
rescind  or  withdraw,  in  its  sole  discretion from time to time upon written
notice  to  the  Company, any relevant notice, demand or election in whole or in
part  without  prejudice  to  its  future  actions  and  rights.

     (o)     Payment  Set Aside.  To the extent that the Company makes a payment
             ------------------
or  payments to the Buyers hereunder or pursuant to any of the other Transaction
Documents  or  the  Buyers  enforce  or  exercise  their  rights  hereunder  or
thereunder,  and such payment or payments or the proceeds of such enforcement or
exercise  or  any  part  thereof  are  subsequently  invalidated, declared to be
fraudulent  or  preferential,  set  aside,  recovered  from, disgorged by or are
required to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver  or  any other Person under any law (including, without limitation, any
bankruptcy  law, foreign, state or federal law, common law or equitable cause of
action),  then  to  the  extent  of  any such restoration the obligation or part
thereof  originally  intended  to be satisfied shall be revived and continued in
full  force  and effect as if such payment had not been made or such enforcement
or  setoff  had  not  occurred.

     (p)     Independent  Nature  of  Buyers'  Obligations  and  Rights.  The
             ----------------------------------------------------------
obligations  of  each  Buyer  under any Transaction Document are several and not
joint with the obligations of any other Buyer, and no Buyer shall be responsible
in  any  way for the performance of the obligations of any other Buyer under any
Transaction  Document.  Nothing  contained  herein  or  in any other Transaction
Document,  and no action taken by any Buyer pursuant hereto or thereto, shall be
deemed  to  constitute  the  Buyers  as  a  partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Buyers are
in  any  way acting in concert or as a group with respect to such obligations or
the  transactions  contemplated  by  the  Transaction  Documents and the Company
acknowledges  that to its knowledge the Buyers are not acting in concert or as a

                                       36
<PAGE>
group,  and  the  Company  will  not assert any such claim, with respect to such
obligations or the transactions contemplated by the Transaction Documents.  Each
Buyer  confirms that it has independently participated in the negotiation of the
transaction contemplated hereby with the advice of its own counsel and advisors.
Each  Buyer  shall  be entitled to independently protect and enforce its rights,
including,  without  limitation, the rights arising out of this Agreement or out
of  any other Transaction Documents, and it shall not be necessary for any other
Buyer  to  be  joined as an additional party in any proceeding for such purpose.

                            [SIGNATURE PAGE FOLLOWS]

                                       37
<PAGE>
     IN WITNESS WHEREOF, each Buyer and the Company have caused their respective
signature  page  to this Securities Purchase Agreement to be duly executed as of
the  date  first  written  above.

                                        CHARYS HOLDING COMPANY, INC.

                                        By
                                            ------------------------------------
                                            Name:   Billy V. Ray, Jr.
                                            Title:  Chief Executive Officer

                                        BUYERS:

                                        GOTTBETTER CAPITAL FINANCE, LLC

                                        By:
                                            ------------------------------------
                                            Name:   Michael W. Chorske
                                            Title:  President

                                        FORT MASON MASTER, LP

                                        By:
                                            ------------------------------------
                                            Name:   Dan German
                                            Title:  Managing Member, Fort Mason
                                                    Capital, LLC

                                        FORT MASON PARTNERS, LP

                                        By:
                                            ------------------------------------
                                            Name:   Dan German
                                            Title:  Managing Member, Fort Mason
                                                    Capital, LLC

                                        UBS O'CONNOR LLC, FBO O'CONNOR PIPES
                                        CORPORATE STRATEGIES MASTER LIMITED

                                        By:
                                            ------------------------------------
                                            Name:   Jeff Richmond
                                            Title:

                                       38
<PAGE>
                                        FORT MASON CAPITAL, LLC

                                        By:
                                            ------------------------------------
                                            Name:   Dan German
                                            Title:  Managing Member

                                        GCA STRATEGIC INVESTMENT FUND LIMITED

                                        By:
                                            ------------------------------------
                                            Name:   Lewis N. Lester
                                            Title:  Director

                                        PCM II, LLC
                                        By: Prentice Capital Management, LP, as
                                            Manager

                                        By:
                                            ------------------------------------
                                            Name:  Michael Weiss
                                            Its:   Chief Financial Officer

                                       39
<PAGE>
<TABLE>
<CAPTION>
                                                       SCHEDULE OF BUYERS

      (1)                         (2)                     (3)            (4)                  (5)                     (6)
                                                                      AGGREGATE
                                                                      NUMBER OF      LEGAL REPRESENTATIVE'S
                              ADDRESS AND            AGGREGATE NOTE    WARRANT            ADDRESS AND
BUYER                      FACSIMILE NUMBER            PRINCIPAL        SHARES          FACSIMILE NUMBER         PURCHASE PRICE
-------------------  -----------------------------  ----------------  ----------  ----------------------------  ----------------
<S>                  <C>                            <C>               <C>         <C>                           <C>
Gottbetter Capital   488 Madison Avenue             $     1,052,632     254,084   Jason M. Rimland, Esq.        $     1,000,000
Finance, LLC         12th Floor                                                   Gottbetter & Partners, LLP
                     New York, NY 10022                                           488 Madison Avenue
                     Facsimile:                                                   12th Floor
                     212.400.6999                                                 New York, NY 10022
                                                                                  Facsimile: 212.400.6901

PCM II, LLC          623 Fifth Avenue, 32nd         $    10,526,315   2,540,835   Michael Weiss                 $    10,000,000
                     Fl.                                                          Prentice Capital
                     New York, NY 10022                                           Management, LP
                     Facsimile: (212) 756-                                        623 Fifth Avenue, 32nd Fl.
                     1480                                                         New York, NY 10022
                                                                                  Facsimile: (212) 756-1480

Fort Mason Master,   Four Embarcadero               $  7,413,946.95   1,789,573   Marshall Jensen               $  7,043,249.60
LP                   Center, Suite 2050                                           Fort Mason Capital, LLC
                     San Francisco, CA                                            Four Embarcadero Center,
                     94111                                                        Suite 2050
                     Facsimile:                                                   San Francisco, CA 94111
                     415.288.8113                                                 Facsimile: 415 288-8113

Fort Mason           Four Embarcadero               $    480,789.47     116,053   Marshall Jensen               $    456,749.99
Partners, LP         Center, Suite 2050                                           Fort Mason Capital, LLC
                     San Francisco, CA                                            Four Embarcadero Center,
                     94111                                                        Suite 2050
                     Facsimile:                                                   San Francisco, CA 94111
                     415.288.8113                                                 Facsimile: 415 288-8113

UBS O'Connor         One North Wacker               $       526,316     127,042   Chuck Mathys, Esq.            $       500,000
LLC,                 Drive, 32nd Floor                                            UBS O'Connor
FBO O'Connor         Chicago, IL 60606                                            1 North Wacker
PIPES Corporate      Facsimile: 312-525-                                          Chicago, IL 60606
Strategies Master    6271                                                         Facsimile: 312-525-6271
Limited

GCA Strategic        c/o Prime Management Limited   $     1,052,632     254,084   Lewis N. Lester               $     1,000,000
Investment Fund      Mechanics Building                                           GCA Strategic Investment
Limited              12 Church Street                                             Fund Limited
                     Hamilton HM II, Bermuda                                      c/o Prime Management
                                                                                  Limited
                                                                                  Mechanics Building
                                                                                  12 Church Street
                                                                                  Hamilton HM II, Bermuda
                                                                                  Facsimile: 441-295-3926
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       40
<PAGE>
                                    EXHIBITS

Exhibit A     Form of Notes
Exhibit B     Form of Warrants
Exhibit C     Registration Rights Agreement
Exhibit D     Form of Security Agreement
Exhibit E     Irrevocable Transfer Agent Instructions
Exhibit F     Form of Opinion Letter
Exhibit G     Form of Resolutions, Articles of Incorporation and By-Laws
Exhibit H     Form of Officer's Certificate

                                    SCHEDULES

Schedule 3(a)     Subsidiaries
Schedule 3(k)     SEC Documents; Financial Statements
Schedule 3(l)     Absence of Certain Changes
Schedule 3(q)     Transactions with Affiliates
Schedule 3(r)     Exceptions to Equity Capital
Schedule 3(s)     Indebtedness and Other Contracts
Schedule 3(t)     Litigation
Schedule 3(x)     Intellectual Property Rights
Schedule 3(z)     Subsidiary Rights
Schedule 3(bb)    Tax Status
Schedule 3(ee)    Ranking of Notes
Schedule 3(kk)    Permitted Liens
Schedule 4(d)     Use of Proceeds

                                       41

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]