Document:

Exhibit 10.7

                         WORLD WASTE TECHNOLOGIES, INC.
                                 2004 STOCK PLAN
                          NOTICE OF STOCK OPTION GRANT

[Name]
[Address]

      You have been granted an option to purchase Common Stock ("Common Stock")
of World Waste Technologies, Inc. (the "Company") as follows:

Board Approval Date:

Date of Grant:

Vesting Commencement Date:

Exercise Price Per Share:

Total Number of Shares Granted:

Total Exercise Price:

Type of Option:                     ISO

Term/Expiration Date:

Vesting Schedule:                   The shares subject to the Option shall vest
                                    as follows: 12/48s of the shares shall vest
                                    on the first anniversary of the Vesting
                                    Commencement Date; thereafter, 1/48ths of
                                    the shares shall vest in equal monthly
                                    installments, commencing one month after
                                    Vesting Commencement Date, and ending on the
                                    third anniversary of the Closing Date.

Termination Period:                 This Option may be exercised for three
                                    months after termination of employment or
                                    consulting relationship except as set out in
                                    Sections 6 and 7 of the Stock Option
                                    Agreement (but in no event later than the
                                    Expiration Date).

      By your signature and the signature of the Company's representative below,
you and the Company agree that this option is granted under and governed by the
terms and conditions of the 2004 STOCK PLAN and the Stock Option Agreement, both
of which are attached and made a part of this document.

GRANTEE                                           WORLD WASTE TECHNOLOGIES, INC.

                                                  By:
---------------------------------------              ---------------------------
Signature                                            Name: John Pimentel
                                                     Title: Chairman & CEO
---------------------------------------
Print Name

<PAGE>

                         WORLD WASTE TECHNOLOGIES, INC.

                                 2004 STOCK PLAN
                             STOCK OPTION AGREEMENT

      1. GRANT OF OPTION. World Waste Technologies, Inc., a California
corporation (the "Company"), hereby grants to GRANTEE ("Optionee") an option
(the "Option") to purchase a total number of shares of Common Stock (the
"Shares") set forth in the Notice of Stock Option Grant, at the exercise price
per share set forth in the Notice of Stock Option Grant (the "Exercise Price")
subject to the terms, definitions and provisions of the World Waste
Technologies, Inc. 2004 STOCK PLAN (the "Plan") adopted by the Company, which is
incorporated herein by reference. Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Option.

      If designated an Incentive Stock Option, this Option is intended to
qualify as an Incentive Stock Option as defined in Section 422 of the Code.

      2. EXERCISE OF OPTION. This Option shall be exercisable during its Term in
accordance with the Vesting Schedule set out in the Notice of Stock Option Grant
and with the provisions of Section 9 of the Plan as follows:

            (a) RIGHT TO EXERCISE.

                  (i) This Option may be exercised in whole or in part at any
time after the Date of Grant, as to Shares which have not yet vested under the
vesting schedule indicated on the Notice of Stock Option Grant; provided,
however, that Optionee shall execute as a condition to such exercise of this
Option, the Early Exercise Notice and Restricted Stock Purchase Agreement
attached hereto as Exhibit A (the "Early Exercise Agreement"). If Optionee
chooses to exercise this Option solely as to Shares which have vested under the
vesting schedule indicated on the Notice of Stock Option Grant, Optionee shall
complete and execute the form of Exercise Notice and Restricted Stock Purchase
Agreement attached hereto as Exhibit B (the "Exercise Agreement").
Notwithstanding the foregoing, the Company may in its discretion prescribe or
accept a different form of notice of exercise and/or stock purchase agreement if
such forms are otherwise consistent with this Agreement, the Plan and
then-applicable law.

                  (ii) This Option may not be exercised for a fraction of a
share.

                  (iii) In the event of Optionee's death, disability or other
termination of employment or consulting relationship, the exercisability of the
Option is governed by Sections 5, 6 and 7 below, subject to the limitation
contained in Section 2(a)(iv) below.

                  (iv) In no event may this Option be exercised after the
Expiration Date of this Option as set forth in the Notice of Stock Option Grant.

            (b) METHOD OF EXERCISE. This Option shall be exercisable by
execution and delivery of the Early Exercise Agreement or the Exercise
Agreement, whichever is applicable, or of any other written notice approved for
such purpose by the Company which shall state the election to exercise the

<PAGE>

Option, the number of Shares in respect of which the Option is being exercised,
and such other representations and agreements as to the holder's investment
intent with respect to such shares of Common Stock as may be required by the
Company pursuant to the provisions of the Plan. Such written notice shall be
signed by Optionee and shall be delivered in person or by certified mail to the
Secretary of the Company. The written notice shall be accompanied by payment of
the Exercise Price. This Option shall be deemed to be exercised upon receipt by
the Company of such written notice accompanied by the Exercise Price.

      No Shares will be issued pursuant to the exercise of an Option unless such
issuance and such exercise shall comply with all relevant provisions of
applicable law, including the requirements of any stock exchange upon which the
Shares may then be listed. Assuming such compliance, for income tax purposes the
Shares shall be considered transferred to Optionee on the date on which the
Option is exercised with respect to such Shares.

      3. METHOD OF PAYMENT. Payment of the Exercise Price shall be by cash,
check, or any other form approved by the Company), or any other method permitted
under the Plan; provided however that the Administrator may refuse to allow
Optionee to tender a particular form of payment (other than cash or check) if,
in the Administrator's sole discretion, acceptance of such form of consideration
would not be in the best interests of the Company at such time.

      4. RESTRICTIONS ON EXERCISE. This Option may not be exercised until such
time as the Plan has been approved by the shareholders of the Company, or if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulation, including any rule under
Part 207 of Title 12 of the Code of Federal Regulations as promulgated by the
Federal Reserve Board. As a condition to the exercise of this Option, the
Company may require Optionee to make any representation and warranty to the
Company as may be required by any applicable law or regulation.

      5. TERMINATION OF RELATIONSHIP. In the event of termination of Optionee's
Continuous Status as an Employee or Consultant, Optionee may, to the extent
otherwise so entitled at the date of such termination (the "Termination Date"),
exercise this Option during the Termination Period set forth in the Notice of
Stock Option Grant. To the extent that Optionee was not entitled to exercise
this Option at such Termination Date, or if Optionee does not exercise this
Option within the Termination Period, the Option shall terminate.

      6. DISABILITY OF OPTIONEE.

            (a) Notwithstanding the provisions of Section 5 above, in the event
of termination of Optionee's Continuous Status as an Employee or Consultant as a
result of his or her total and permanent disability (as defined in Section
22(e)(3) of the Code), Optionee may, but only within twelve months from the
Termination Date (but in no event later than the Expiration Date set forth in
the Notice of Stock Option Grant and in Section 9 below), exercise this Option
to the extent he or she was entitled to exercise it at such Termination Date. To
the extent that Optionee was not entitled to exercise the Option on the
Termination Date, or if Optionee does not exercise such Option to the extent so
entitled within the time specified in this Section 6(a), the Option shall
terminate.

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<PAGE>

            (b) Notwithstanding the provisions of Section 5 above, in the event
of termination of Optionee's consulting relationship or Continuous Status as an
Employee as a result of a disability not constituting a total and permanent
disability (as set forth in Section 22(e)(3) of the Code), Optionee may, but
only within six months from the Termination Date (but in no event later than the
Expiration Date set forth in the Notice of Stock Option Grant and in Section 9
below), exercise the Option to the extent Optionee was entitled to exercise it
as of such Termination Date; provided, however, that if this is an Incentive
Stock Option and Optionee fails to exercise this Incentive Stock Option within
three months from the Termination Date, this Option will cease to qualify as an
Incentive Stock Option (as defined in Section 422 of the Code) and Optionee will
be treated for federal income tax purposes as having received ordinary income at
the time of such exercise in an amount generally measured by the difference
between the Exercise Price for the Shares and the Fair Market Value of the
Shares on the date of exercise. To the extent that Optionee was not entitled to
exercise the Option at the Termination Date, or if Optionee does not exercise
such Option to the extent so entitled within the time specified in this Section
6(b), the Option shall terminate.

      7. DEATH OF OPTIONEE. In the event of the death of Optionee (a) during the
Term of this Option and while an Employee or Consultant of the Company and
having been in Continuous Status as an Employee or Consultant since the date of
grant of the Option, or (b) within 30 days after Optionee's Termination Date,
the Option may be exercised at any time within six months following the date of
death (but in no event later than the Expiration Date set forth in the Notice of
Stock Option Grant and in Section 9 below), by Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent of the right to exercise that had accrued at the Termination
Date.

      8. NON-TRANSFERABILITY OF OPTION. This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by him or her. The terms
of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of Optionee.

      9. TERM OF OPTION. This Option may be exercised only within the Term set
forth in the Notice of Stock Option Grant, subject to the limitations set forth
in Section 7 of the Plan.

      10. TAX CONSEQUENCES. Set forth below is a brief summary as of the date of
this Option of certain of the federal and California tax consequences of
exercise of this Option and disposition of the Shares under the laws in effect
as of the Date of Grant. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX
LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX
ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

                                       3
<PAGE>

            (a) EXERCISE OF INCENTIVE STOCK OPTION. If this Option qualifies as
an Incentive Stock Option, there will be no regular federal or California income
tax liability upon the exercise of the Option, although the excess, if any, of
the Fair Market Value of the Shares on the date of exercise over the Exercise
Price will be treated as an adjustment to the alternative minimum tax for
federal tax purposes and may subject Optionee to the alternative minimum tax in
the year of exercise.

            (b) EXERCISE OF NONSTATUTORY STOCK OPTION. If this Option does not
qualify as an Incentive Stock Option, there may be a regular federal income tax
liability and a California income tax liability upon the exercise of the Option.
Optionee will be treated as having received compensation income (taxable at
ordinary income tax rates) equal to the excess, if any, of the fair market value
of the Shares on the date of exercise over the Exercise Price. If Optionee is a
current or former employee, the Company may be required to withhold from
Optionee's compensation or collect from Optionee and pay to the applicable
taxing authorities an amount equal to a percentage of this compensation income
at the time of exercise.

            (c) DISPOSITION OF SHARES. In the case of a Nonstatutory Stock
Option, if Shares are held for more than one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
and California income tax purposes. In the case of an Incentive Stock Option, if
Shares transferred pursuant to the Option are held for more than one year after
exercise and are disposed of at least two years after the Date of Grant, any
gain realized on disposition of the Shares will also be treated as long-term
capital gain for federal and California income tax purposes. In either case, the
long-term capital gain will be taxed for federal income tax and alternative
minimum tax purposes at a maximum rate of 20% if the Shares are held more than
one year after exercise. If Shares purchased under an Incentive Stock Option are
disposed of within one year after exercise or within two years after the Date of
Grant, any gain realized on such disposition will be treated as compensation
income (taxable at ordinary income rates) to the extent of the difference
between the Exercise Price and the lesser of (i) the Fair Market Value of the
Shares on the date of exercise, or (ii) the sale price of the Shares.

            (d) NOTICE OF DISQUALIFYING DISPOSITION OF INCENTIVE STOCK OPTION
SHARES. If the Option granted to Optionee herein is an Incentive Stock Option,
and if Optionee sells or otherwise disposes of any of the Shares acquired
pursuant to the Incentive Stock Option on or before the later of (i) the date
two years after the Date of Grant, or (ii) the date one year after the date of
exercise, Optionee shall immediately notify the Company in writing of such
disposition. Optionee acknowledges and agrees that he or she may be subject to
income tax withholding by the Company on the compensation income recognized by
Optionee from the early disposition by payment in cash or out of the current
earnings paid to Optionee.

      11. WITHHOLDING TAX OBLIGATIONS.

            (a) GENERAL WITHHOLDING OBLIGATIONS. As a condition to the exercise
of Option granted hereunder, Optionee shall make such arrangements as the
Administrator may require for the satisfaction of any federal, state, local or
foreign withholding tax obligations that may arise in connection with the
exercise, receipt or vesting of the Option. The Company shall not be required to
issue any Shares under the Plan until such obligations are satisfied. Optionee
understands that, upon exercising a Nonstatutory Stock Option, he or she will
recognize income for tax purposes in an amount equal to the excess of the then
Fair Market Value of the Shares over the Exercise Price. If Optionee is an
employee, the Company will be required to withhold from Optionee's compensation,
or collect from Optionee and pay to the applicable taxing authorities an amount
equal to a percentage of this compensation income. Additionally, Optionee may at

                                       4
<PAGE>

some point be required to satisfy tax withholding obligations with respect to
the disqualifying disposition of an Incentive Stock Option. Optionee shall
satisfy his or her tax withholding obligation arising upon the exercise of this
Option by one or some combination of the following methods: (i) by cash or check
payment, (ii) out of Optionee's current compensation, (iii) if permitted by the
Administrator, in its discretion, by surrendering to the Company Shares which
(A) in the case of Shares previously acquired from the Company, have been owned
by Optionee for more than six months on the date of surrender, and (B) have a
Fair Market Value determined as of the applicable Tax Date (as defined in
Section 11(c) below) on the date of surrender equal to the amount required to be
withheld, or (iv) by electing to have the Company withhold from the Shares to be
issued upon exercise of the Option, or the Shares to be issued in connection
with the Stock Purchase Right, if any, that number of Shares having a Fair
Market Value determined as of the applicable Tax Date equal to the amount
required to be withheld.

            (b) STOCK WITHHOLDING TO SATISFY WITHHOLDING TAX OBLIGATIONS. In the
event the Administrator allows Optionee to satisfy his or her tax withholding
obligations as provided in Section 11(a)(iii) or (iv) above, such satisfaction
must comply with the requirements of this Section (11)(b) and all applicable
laws. All elections by Optionee to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

                  (i) the election must be made on or prior to the applicable
Tax Date (as defined in Section 11(c) below);

                  (ii) once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made; and

                  (iii) all elections shall be subject to the consent or
disapproval of the Administrator.

      In the event the election to have Shares withheld is made by Optionee and
the Tax Date is deferred under Section 83 of the Code because no election is
filed under Section 83(b) of the Code, Optionee shall receive the full number of
Shares with respect to which the Option is exercised but Optionee shall be
unconditionally obligated to tender back to the Company the proper number of
Shares on the Tax Date.

            (c) DEFINITIONS. For purposes of this Section 11, the Fair Market
Value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined under the Applicable Laws (the
"Tax Date").

      12. MARKET STANDOFF AGREEMENT. In connection with the initial public
offering of the Company's securities and upon request of the Company or the
underwriters managing such underwritten offering of the Company's securities,
Optionee agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any securities of the Company (other
than those included in the registration) without the prior written consent of
the Company or such underwriters, as the case may be, for such period of time
(not to exceed 180 days) from the effective date of such registration as may be
requested by the Company or such managing underwriters and to execute an
agreement reflecting the foregoing as may be requested by the underwriters at
the time of the Company's initial public offering.

                            [Signature Page Follows]

                                       5
<PAGE>

      This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall constitute one
document.

                                            WORLD WASTE TECHNOLOGIES, INC.

                                            By:
                                               ---------------------------------
                                               Name:  John Pimentel
                                               Title: Chairman & CEO

      OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO
THE OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE
WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS
OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES
THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S STOCK PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL
IT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE OPTIONEE'S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT
CAUSE.

      Optionee acknowledges receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts
this Option subject to all of the terms and provisions thereof. Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Option.

Dated:
      ----------------                        ----------------------------------
                                              [Name]

                                       6
<PAGE>

                                    EXHIBIT A

                         WORLD WASTE TECHNOLOGIES, INC.

                                 2004 STOCK PLAN
          EARLY EXERCISE NOTICE AND RESTRICTED STOCK PURCHASE AGREEMENT

      This Agreement ("Agreement") is made as of __________________________, by
and between World Waste Technologies, Inc., a California corporation (the
"Company"), and __________________________________ ("Purchaser"). To the extent
any capitalized terms used in this Agreement are not defined, they shall have
the meaning ascribed to them in the 2004 STOCK PLAN.

      1. EXERCISE OF OPTION. Subject to the terms and conditions hereof,
Purchaser hereby elects to exercise his or her option to purchase
_________________ shares of the Common Stock (the "Shares") of the Company under
and pursuant to the Company's 2004 STOCK PLAN (the "Plan") and the Stock Option
Agreement dated _________________ (the "Option Agreement"). Of these Shares,
Purchaser has elected to purchase _________________ of those Shares which have
become vested as of the date hereof under the Vesting Schedule set forth in the
Notice of Stock Option Grant (the "Vested Shares") and ____________ Shares which
have not yet vested under such Vesting Schedule (the "Unvested Shares"). The
purchase price for the Shares shall be $____________ per Share for a total
purchase price of $_______________, which amount shall be paid for by a check in
the amount of $____________. The term "Shares" refers to the purchased Shares
and all securities received in replacement of the Shares or as stock dividends
or splits, all securities received in replacement of the Shares in a
recapitalization, merger, reorganization, exchange or the like, and all new,
substituted or additional securities or other properties to which Purchaser is
entitled by reason of Purchaser's ownership of the Shares.

      2. TIME AND PLACE OF EXERCISE. The purchase and sale of the Shares under
this Agreement shall occur at the principal office of the Company simultaneously
with the execution and delivery of this Agreement in accordance with the
provisions of Section 2(b) of the Option Agreement. On such date, the Company
will deliver to Purchaser a certificate representing the Shares to be purchased
by Purchaser (which shall be issued in Purchaser's name) against payment of the
purchase price therefor by Purchaser by (a) check made payable to the Company,
(b) cancellation of indebtedness of the Company to Purchaser, (c) delivery of
shares of the Common Stock of the Company in accordance with Section 3 of the
Option Agreement, or (d) a combination of the foregoing.

      3. LIMITATIONS ON TRANSFER. In addition to any other limitation on
transfer created by applicable securities laws, Purchaser shall not assign,
encumber or dispose of any interest in the Shares while the Shares are subject
to the Company's Repurchase Option (as defined below). After any Shares have
been released from such Repurchase Option, Purchaser shall not assign, encumber
or dispose of any interest in such Shares except in compliance with the
provisions below and applicable securities laws.

            (a) REPURCHASE OPTION.

                                      A-1
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                  (i) In the event of the voluntary or involuntary termination
of Purchaser's employment or consulting relationship with the Company for any
reason (including death or disability), with or without cause, the Company shall
upon the date of such termination (the "Termination Date") have an irrevocable,
exclusive option (the "Repurchase Option") for a period of 90 days from such
date to repurchase all or any portion of the Shares held by Purchaser as of the
Termination Date which have not yet been released from the Company's Repurchase
Option at the original purchase price per Share specified in Section 1 (adjusted
for any stock splits, stock dividends and the like).

                  (ii) Unless the Company notifies Purchaser within 90 days from
the date of termination of Purchaser's employment or consulting relationship
that it does not intend to exercise its Repurchase Option with respect to some
or all of the Shares, the Repurchase Option shall be deemed automatically
exercised by the Company as of the 90th day following such termination, provided
that the Company may notify Purchaser that it is exercising its Repurchase
Option as of a date prior to such 90th day. Unless Purchaser is otherwise
notified by the Company pursuant to the preceding sentence that the Company does
not intend to exercise its Repurchase Option as to some or all of the Shares to
which it applies at the time of termination, execution of this Agreement by
Purchaser constitutes written notice to Purchaser of the Company's intention to
exercise its Repurchase Option with respect to all Shares to which such
Repurchase Option applies. The Company, at its choice, may satisfy its payment
obligation to Purchaser with respect to exercise of the Repurchase Option by
either (A) delivering a check to Purchaser in the amount of the purchase price
for the Shares being repurchased, or (B) in the event Purchaser is indebted to
the Company, canceling an amount of such indebtedness equal to the purchase
price for the Shares being repurchased, or (C) by a combination of (A) and (B)
so that the combined payment and cancellation of indebtedness equals such
purchase price. In the event of any deemed automatic exercise of the Repurchase
Option pursuant to this Section 3(a)(ii) in which Purchaser is indebted to the
Company, such indebtedness equal to the purchase price of the Shares being
repurchased shall be deemed automatically canceled as of the 90th day following
termination of Purchaser's employment or consulting relationship unless the
Company otherwise satisfies its payment obligations. As a result of any
repurchase of Shares pursuant to this Section 3(a), the Company shall become the
legal and beneficial owner of the Shares being repurchased and shall have all
rights and interest therein or related thereto, and the Company shall have the
right to transfer to its own name the number of Shares being repurchased by the
Company, without further action by Purchaser.

                  (iii) One hundred percent (100%) of the Shares shall initially
be subject to the Repurchase Option. The Unvested Shares shall be released from
the Repurchase Option in accordance with the Vesting Schedule set forth in the
Notice of Stock Option Grant until all Shares are released from the Repurchase
Option. Fractional shares shall be rounded to the nearest whole share.

            (b) RIGHT OF FIRST REFUSAL. Before any Shares held by Purchaser or
any transferee of Purchaser (either being sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including transfer by gift or
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section 3(b) (the "Right of First Refusal").

                                      A-2
<PAGE>

                  (i) NOTICE OF PROPOSED TRANSFER. The Holder of the Shares
shall deliver to the Company a written notice (the "Notice") stating: (i) the
Holder's bona fide intention to sell or otherwise transfer such Shares; (ii) the
name of each proposed purchaser or other transferee ("Proposed Transferee");
(iii) the number of Shares to be transferred to each Proposed Transferee; and
(iv) the terms and conditions of each proposed sale or transfer. The Holder
shall offer the Shares at the same price (the "Offered Price") and upon the same
terms (or terms as similar as reasonably possible) to the Company or its
assignee(s).

                  (ii) EXERCISE OF RIGHT OF FIRST REFUSAL. At any time within 30
days after receipt of the Notice, the Company and/or its assignee(s) may, by
giving written notice to the Holder, elect to purchase all, but not less than
all, of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection
(iii) below.

                  (iii) PURCHASE PRICE. The purchase price ("Purchase Price")
for the Shares purchased by the Company or its assignee(s) under this Section
3(b) shall be the Offered Price. If the Offered Price includes consideration
other than cash, the cash equivalent value of the non-cash consideration shall
be determined by the Board of Directors of the Company in good faith.

                  (iv) PAYMENT. Payment of the Purchase Price shall be made, at
the option of the Company or its assignee(s), in cash (by check), by
cancellation of all or a portion of any outstanding indebtedness of the Holder
to the Company (or, in the case of repurchase by an assignee, to the assignee),
or by any combination thereof within 30 days after receipt of the Notice or in
the manner and at the times set forth in the Notice.

                  (v) HOLDER'S RIGHT TO TRANSFER. If all of the Shares proposed
in the Notice to be transferred to a given Proposed Transferee are not purchased
by the Company and/or its assignee(s) as provided in this Section 3(b), then the
Holder may sell or otherwise transfer such Shares to that Proposed Transferee at
the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 60 days after the date of the Notice and provided
further that any such sale or other transfer is effected in accordance with any
applicable securities laws and the Proposed Transferee agrees in writing that
the provisions of this Section 3 shall continue to apply to the Shares in the
hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, or if the Holder
proposes to change the price or other terms to make them more favorable to the
Proposed Transferee, a new Notice shall be given to the Company, and the Company
and/or its assignees shall again be offered the Right of First Refusal before
any Shares held by the Holder may be sold or otherwise transferred.

                  (vi) EXCEPTION FOR CERTAIN FAMILY TRANSFERS. Anything to the
contrary contained in this Section 3(b) notwithstanding, the transfer of any or
all of the Shares during Purchaser's lifetime or on Purchaser's death by will or
intestacy to Purchaser's Immediate Family (as defined below) or a trust for the
benefit of Purchaser's Immediate Family shall be exempt from the provisions of
this Section 3(b). "Immediate Family" as used herein shall mean spouse, lineal
descendant or antecedent, father, mother, brother or sister. In such case, the
transferee or other recipient shall receive and hold the Shares so transferred
subject to the provisions of this Section, and there shall be no further
transfer of such Shares except in accordance with the terms of this Section 3.

                                      A-3
<PAGE>

            (c) INVOLUNTARY TRANSFER.

                  (i) COMPANY'S RIGHT TO PURCHASE UPON INVOLUNTARY TRANSFER. In
the event, at any time after the date of this Agreement, of any transfer by
operation of law or other involuntary transfer (including divorce or death, but
excluding, in the event of death, a transfer to Immediate Family as set forth in
Section 3(b)(vi) above) of all or a portion of the Shares by the record holder
thereof, the Company shall have the right to purchase all of the Shares
transferred at the greater of the purchase price paid by Purchaser pursuant to
this Agreement or the Fair Market Value of the Shares on the date of transfer.
Upon such a transfer, the person acquiring the Shares shall promptly notify the
Secretary of the Company of such transfer. The right to purchase such Shares
shall be provided to the Company for a period of 30 days following receipt by
the Company of written notice by the person acquiring the Shares.

                  (ii) PRICE FOR INVOLUNTARY TRANSFER. With respect to any stock
to be transferred pursuant to Section 3(c)(i), the price per Share shall be a
price set by the Board of Directors of the Company that will reflect the current
value of the stock in terms of present earnings and future prospects of the
Company. The Company shall notify Purchaser or his or her executor of the price
so determined within 30 days after receipt by it of written notice of the
transfer or proposed transfer of Shares. However, if the Purchaser does not
agree with the valuation as determined by the Board of Directors of the Company,
the Purchaser shall be entitled to have the valuation determined by an
independent appraiser to be mutually agreed upon by the Company and the
Purchaser and whose fees shall be borne equally by the Company and the
Purchaser.

            (d) ASSIGNMENT. The right of the Company to purchase any part of the
Shares may be assigned in whole or in part to any shareholder or shareholders of
the Company or other persons or organizations.

            (e) RESTRICTIONS BINDING ON TRANSFEREES. All transferees of Shares
or any interest therein will receive and hold such Shares or interest subject to
the provisions of this Agreement, including, insofar as applicable, the
Repurchase Option. In the event of any purchase by the Company hereunder where
the Shares or interest are held by a transferee, the transferee shall be
obligated, if requested by the Company, to transfer the Shares or interest to
the Purchaser for consideration equal to the amount to be paid by the Company
hereunder. In the event the Repurchase Option is deemed exercised by the Company
pursuant to Section 3(a)(ii) hereof, the Company may deem any transferee to have
transferred the Shares or interest to Purchaser prior to their purchase by the
Company, and payment of the purchase price by the Company to such transferee
shall be deemed to satisfy Purchaser's obligation to pay such transferee for
such Shares or interest, and also to satisfy the Company's obligation to pay
Purchaser for such Shares or interest. Any sale or transfer of the Shares shall
be void unless the provisions of this Agreement are satisfied.

                                      A-4
<PAGE>

            (f) TERMINATION OF RIGHTS. The Right of First Refusal and the
Company's right to repurchase the Shares in the event of an involuntary transfer
pursuant to Section 3(c) above shall terminate upon the listing of Common Stock
of the Company on a national exchange.

            (g) MARKET STANDOFF AGREEMENT. In connection with the initial public
offering of the Company's securities and upon request of the Company or the
underwriters managing such underwritten offering of the Company's securities,
Purchaser agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any securities of the Company (other
than those included in the registration) without the prior written consent of
the Company or such underwriters, as the case may be, for such period of time
(not to exceed 180 days) from the effective date of such registration as may be
requested by the Company or such managing underwriters and to execute an
agreement reflecting the foregoing as may be requested by the underwriters at
the time of the Company's initial public offering.

      4. ESCROW OF UNVESTED SHARES. For purposes of facilitating the enforcement
of the provisions of Section 3 above, Purchaser agrees, immediately upon receipt
of the certificate(s) for the Shares subject to the Repurchase Option, to
deliver such certificate(s), together with an Assignment Separate from
Certificate in the form attached to this Agreement as Attachment A executed by
Purchaser and by Purchaser's spouse (if required for transfer), in blank, to the
Secretary of the Company, or the Secretary's designee, to hold such
certificate(s) and Assignment Separate from Certificate in escrow and to take
all such actions and to effectuate all such transfers and/or releases as are in
accordance with the terms of this Agreement. Purchaser hereby acknowledges that
the Secretary of the Company, or the Secretary's designee, is so appointed as
the escrow holder with the foregoing authorities as a material inducement to
make this Agreement and that said appointment is coupled with an interest and is
accordingly irrevocable. Purchaser agrees that said escrow holder shall not be
liable to any party hereof (or to any other party). The escrow holder may rely
upon any letter, notice or other document executed by any signature purported to
be genuine and may resign at any time. Purchaser agrees that if the Secretary of
the Company, or the Secretary's designee, resigns as escrow holder for any or no
reason, the Board of Directors of the Company shall have the power to appoint a
successor to serve as escrow holder pursuant to the terms of this Agreement.

      5. INVESTMENT AND TAXATION REPRESENTATIONS. In connection with the
purchase of the Shares, Purchaser represents to the Company the following:

            (a) Purchaser is aware of the Company's business affairs and
financial condition and has acquired sufficient information about the Company to
reach an informed and knowledgeable decision to acquire the Shares. Purchaser is
purchasing the Shares for investment for his or her own account only and not
with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act. Purchaser does not have any present
intention to transfer the Shares to any other person or entity.

            (b) Purchaser understands that the Shares have not been registered
under the Securities Act by reason of a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of Purchaser's
investment intent as expressed herein.

                                      A-5
<PAGE>

            (c) Purchaser understands that the Shares are "restricted
securities" under applicable U.S. federal and state securities laws and that,
pursuant to these laws, Purchaser must hold the Shares indefinitely unless they
are registered with the Securities and Exchange Commission and qualified by
state authorities, or an exemption from such registration and qualification
requirements is available. Purchaser acknowledges that the Company has no
obligation to register or qualify the Shares for resale. Purchaser further
acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and
requirements relating to the Company which are outside of the Purchaser's
control, and which the Company is under no obligation and may not be able to
satisfy.

            (d) Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser's purchase or disposition of the Shares.
Purchaser represents that Purchaser has consulted any tax consultants Purchaser
deems advisable in connection with the purchase or disposition of the Shares and
that Purchaser is not relying on the Company for any tax advice.

      6. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

            (a) LEGENDS. The certificate or certificates representing the Shares
shall bear the following legends (as well as any legends required by applicable
state and federal corporate and securities laws):

                  (i) THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT OF 1933.

                  (ii) THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE
TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE
COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF
THE COMPANY.

            (b) STOP-TRANSFER NOTICES. Purchaser agrees that, in order to ensure
compliance with the restrictions referred to herein, the Company may issue
appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

            (c) REFUSAL TO TRANSFER. The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

                                      A-6
<PAGE>

            (d) REMOVAL OF LEGEND. When all of the following events have
occurred, the Shares then held by Purchaser will no longer be subject to the
legend referred to in Section 6(a)(ii): (i) the termination of the Right of
First Refusal; (ii) the expiration or termination of the market standoff
provisions of Section 3(g) (and of any agreement entered pursuant to Section
3(g)); and (iii) the expiration or exercise in full of the Repurchase Option.
After such time, and upon Purchaser's request, a new certificate or certificates
representing the Shares not repurchased shall be issued without the legend
referred to in Section 6(a)(ii), and delivered to Purchaser.

      7. NO EMPLOYMENT RIGHTS. Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser's employment or consulting relationship,
for any reason, with or without cause.

      8. SECTION 83(B) ELECTION. Purchaser understands that Section 83(a) of the
Internal Revenue Code of 1986, as amended (the "Code"), taxes as ordinary income
for a Nonstatutory Stock Option and as alternative minimum taxable income for an
Incentive Stock Option the difference between the amount paid for the Shares and
the Fair Market Value of the Shares as of the date any restrictions on the
Shares lapse. In this context, "restriction" means the right of the Company to
buy back the Shares pursuant to the Repurchase Option set forth in Section 3(a)
of this Agreement. Purchaser understands that Purchaser may elect to be taxed at
the time the Shares are purchased, rather than when and as the Repurchase Option
expires, by filing an election under Section 83(b) (an "83(b) Election") of the
Code with the Internal Revenue Service within 30 days from the date of purchase.
Even if the Fair Market Value of the Shares at the time of the execution of this
Agreement equals the amount paid for the Shares, the election must be made to
avoid income and alternative minimum tax treatment under Section 83(a) in the
future. Purchaser understands that failure to file such an election in a timely
manner may result in adverse tax consequences for Purchaser. Purchaser further
understands that an additional copy of such election form should be filed with
his or her federal income tax return for the calendar year in which the date of
this Agreement falls. Purchaser acknowledges that the foregoing is only a
summary of the effect of United States federal income taxation with respect to
purchase of the Shares hereunder, and does not purport to be complete. Purchaser
further acknowledges that the Company has directed Purchaser to seek independent
advice regarding the applicable provisions of the Code, the income tax laws of
any municipality, state or foreign country in which Purchaser may reside, and
the tax consequences of Purchaser's death.

      Purchaser agrees that he or she will execute and deliver to the Company
with this executed Agreement a copy of the Acknowledgment and Statement of
Decision Regarding Section 83(b) Election (the "Acknowledgment") attached hereto
as Attachment B. Purchaser further agrees that he or she will execute and submit
with the Acknowledgment a copy of the 83(b) Election attached hereto as
Attachment C (for tax purposes in connection with the early exercise of an
option) if Purchaser has indicated in the Acknowledgment his or her decision to
make such an election.

      9. MISCELLANEOUS.

                                      A-7
<PAGE>

            (a) GOVERNING LAW. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

            (b) ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This Agreement sets
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. No
modification of or amendment to this Agreement, nor any waiver of any rights
under this Agreement, shall be effective unless in writing signed by the parties
to this Agreement. The failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of any rights of such party.

            (c) SEVERABILITY. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii)
the balance of the Agreement shall be enforceable in accordance with its terms.

            (d) CONSTRUCTION. This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

            (e) NOTICES. Any notice required or permitted by this Agreement
shall be in writing and shall be deemed sufficient when delivered personally or
sent by telegram or fax or 48 hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party
to be notified at such party's address as set forth below or as subsequently
modified by written notice.

            (f) COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

            (g) SUCCESSORS AND ASSIGNS. The rights and benefits of this
Agreement shall inure to the benefit of, and be enforceable by the Company's
successors and assigns. The rights and obligations of Purchaser under this
Agreement may only be assigned with the prior written consent of the Company.

            (h) CALIFORNIA CORPORATE SECURITIES LAW. THE SALE OF THE SECURITIES
WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE
COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR
PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT
FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY
CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

                            [Signature Page Follows]

                                      A-8
<PAGE>

      The parties have executed this Agreement as of the date first set forth
above.

                                     COMPANY:

                                     WORLD WASTE TECHNOLOGIES, INC.

                                     By:
                                        ----------------------------------------
                                        Name: John Pimentel
                                        Title: Chairman & CEO

                                        Address: 13520 Evening Creek Drive North
                                                 San Diego, CA 92128

                                     PURCHASER:

                                     [Name]

                                     -------------------------------------------
                                     Signature

                                     -------------------------------------------
                                     Print Name

                                     -------------------------------------------
                                     Address

                                     -------------------------------------------
                                     Address

                                      A-9
<PAGE>

                                  ATTACHMENT A

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

      FOR VALUE RECEIVED and pursuant to that certain Early Exercise Notice and
Restricted Stock Purchase Agreement between the undersigned ("Purchaser") and
World Waste Technologies, Inc. (the "Company") dated _______________, ____ (the
"Agreement"), Purchaser hereby sells, assigns and transfers unto the Company
_________________________________ (________) shares of the Common Stock of the
Company, standing in Purchaser's name on the books of the Company and
represented by Certificate No. ____, and does hereby irrevocably constitute and
appoint ________________________________________________ to transfer said stock
on the books of the Company with full power of substitution in the premises.
THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND THE
ATTACHMENTS THERETO.

Dated:
      -----------------------

                                        Signature:

                                        ----------------------------------------
                                        [Name]

Instruction: Please do not fill in any blanks other than the signature line. The
purpose of this assignment is to enable the Company to exercise its Repurchase
Option set forth in the Agreement without requiring additional signatures on the
part of Purchaser.

                                      A-A-1
<PAGE>

                                  ATTACHMENT B

                    ACKNOWLEDGMENT AND STATEMENT OF DECISION
                        REGARDING SECTION 83(B) ELECTION

      The undersigned (which term includes the undersigned's spouse), a
purchaser of ___________ shares of Common Stock of World Waste Technologies,
Inc., a California corporation (the "Company") by exercise of an option (the
"Option") granted pursuant to the Company's 2004 STOCK PLAN (the "Plan"), hereby
states as follows:

      1. The undersigned acknowledges receipt of a copy of the Plan relating to
the offering of such shares. The undersigned has carefully reviewed the Plan and
the option agreement pursuant to which the Option was granted.

      2. The undersigned either [check and complete as applicable]:

            (a)   ____  has consulted, and has been fully advised by, the
                        undersigned's own tax advisor, _______________________,
                        whose business address is
                        ______________________________, regarding the federal,
                        state and local tax consequences of purchasing shares
                        under the Plan, and particularly regarding the
                        advisability of making elections pursuant to Section
                        83(b) of the Internal Revenue Code of 1986, as amended
                        (the "Code") and pursuant to the corresponding ----
                        provisions, if any, of applicable state law; or

            (b)   ____  has knowingly chosen not to consult such a tax advisor.

      3. The undersigned hereby states that the undersigned has decided [check
as applicable]:

            (a)   ____  to make an election pursuant to Section 83(b) of the
                        Code, and is submitting to the Company, together with
                        the undersigned's executed Early Exercise Notice and
                        Restricted Stock Purchase Agreement, an executed form
                        entitled "Election Under Section 83(b) of the Internal
                        Revenue Code of 1986;" or

            (b)   ____  not to make an election pursuant to Section 83(b) of the
                        Code.

      4. Neither the Company nor any subsidiary or representative of the Company
has made any warranty or representation to the undersigned with respect to the
tax consequences of the undersigned's purchase of shares under the Plan or of
the making or failure to make an election pursuant to Section 83(b) of the Code
or the corresponding provisions, if any, of applicable state law.

Date:
     --------------------------------                ---------------------------
                                                     [Name]

                                      A-B-1
<PAGE>

                                  ATTACHMENT C

                          ELECTION UNDER SECTION 83(B)
                      OF THE INTERNAL REVENUE CODE OF 1986

      The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the
Internal Revenue Code, to include in taxpayer's gross income or alternative
minimum taxable income, as applicable, for the current taxable year, the amount
of any income that may be taxable to taxpayer in connection with taxpayer's
receipt of the property described below:

      1. The name, address, taxpayer identification number and taxable year of
the undersigned are as follows:

      NAME OF TAXPAYER:  _________________________________

      ADDRESS: ________________________________________

               ________________________________________

      IDENTIFICATION NO. OF TAXPAYER:  ___________________

      TAXABLE YEAR:  __________

      2. The property with respect to which the election is made is described as
follows:

         _________________ shares of the Common Stock of World Waste
         Technologies, Inc., a California corporation (the "Company").

      3. The date on which the property was transferred is: _______________

      4. The property is subject to the following restrictions:

         Repurchase option at cost in favor of the Company upon termination of
         taxpayer's employment or consulting relationship.

      5. The fair market value at the time of transfer, determined without
regard to any restriction other than a restriction which by its terms will never
lapse, of such property is: $____________________

The amount (if any) paid for such property: $____________________

The undersigned has submitted a copy of this statement to the person for whom
the services were performed in connection with the undersigned's receipt of the
above-described property. The transferee of such property is the person
performing the services in connection with the transfer of said property.

The undersigned understands that the foregoing election may not be revoked
except with the consent of the Commissioner.

Dated:
      --------------------------------               ---------------------------
                                                     [Name]

                                      A-C-1
<PAGE>

                               RECEIPT AND CONSENT

      The undersigned hereby acknowledges receipt of a photocopy of Certificate
No. ______ for __________________ shares of Common Stock of World Waste
Technologies, Inc. (the "Company"). -------

      The undersigned further acknowledges that the Secretary of the Company, or
his or her designee, is acting as escrow holder pursuant to the Early Exercise
Notice and Restricted Stock Purchase Agreement Purchaser has previously entered
into with the Company. As escrow holder, the Secretary of the Company, or his or
her designee, holds the original of the aforementioned certificate issued in the
undersigned's name.

Dated:
      --------------------------------               ---------------------------
                                                     Name:

<PAGE>

                                    EXHIBIT B

                         WORLD WASTE TECHNOLOGIES, INC.

                                 2004 STOCK PLAN
             EXERCISE NOTICE AND RESTRICTED STOCK PURCHASE AGREEMENT

      This Agreement ("Agreement") is made as of ______________, by and between
World Waste Technologies, Inc., a California corporation (the "Company"), and
____________ ("Purchaser"). To the extent any capitalized terms used in this
Agreement are not defined, they shall have the meaning ascribed to them in the
2004 STOCK PLAN.

      1. EXERCISE OF OPTION. Subject to the terms and conditions hereof,
Purchaser hereby elects to exercise his or her option to purchase __________
shares of the Common Stock (the "Shares") of the Company under and pursuant to
the Company's 2004 STOCK PLAN (the "Plan") and the Stock Option Agreement dated
______________, (the "Option Agreement"). The purchase price for the Shares
shall be $__________per Share for a total purchase price of $_______________.
The term "Shares" refers to the purchased Shares and all securities received in
replacement of the Shares or as stock dividends or splits, all securities
received in replacement of the Shares in a recapitalization, merger,
reorganization, exchange or the like, and all new, substituted or additional
securities or other properties to which Purchaser is entitled by reason of
Purchaser's ownership of the Shares.

      2. TIME AND PLACE OF EXERCISE. The purchase and sale of the Shares under
this Agreement shall occur at the principal office of the Company simultaneously
with the execution and delivery of this Agreement in accordance with the
provisions of Section 2(b) of the Option Agreement. On such date, the Company
will deliver to Purchaser a certificate representing the Shares to be purchased
by Purchaser (which shall be issued in Purchaser's name) against payment of the
purchase price therefor by Purchaser by (a) check made payable to the Company,
(b) cancellation of indebtedness of the Company to Purchaser, (c) delivery of
shares of the Common Stock of the Company in accordance with Section 3 of the
Option Agreement, or (d) a combination of the foregoing.

      3. LIMITATIONS ON TRANSFER. In addition to any other limitation on
transfer created by applicable securities laws, Purchaser shall not assign,
encumber or dispose of any interest in the Shares except in compliance with the
provisions below and applicable securities laws.

            (a) RIGHT OF FIRST REFUSAL. Before any Shares held by Purchaser or
any transferee of Purchaser (either being sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including transfer by gift or
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section 3(a) (the "Right of First Refusal").

                  (i) NOTICE OF PROPOSED TRANSFER. The Holder of the Shares
shall deliver to the Company a written notice (the "Notice") stating: (i) the
Holder's bona fide intention to sell or otherwise transfer such Shares; (ii) the
name of each proposed purchaser or other transferee ("Proposed Transferee");
(iii) the number of Shares to be transferred to each Proposed Transferee; and

                                      B-1
<PAGE>

(iv) the terms and conditions of each proposed sale or transfer. The Holder
shall offer the Shares at the same price (the "Offered Price") and upon the same
terms (or terms as similar as reasonably possible) to the Company or its
assignee(s).

                  (ii) EXERCISE OF RIGHT OF FIRST REFUSAL. At any time within 30
days after receipt of the Notice, the Company and/or its assignee(s) may, by
giving written notice to the Holder, elect to purchase all, but not less than
all, of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection
(iii) below.

                  (iii) PURCHASE PRICE. The purchase price ("Purchase Price")
for the Shares purchased by the Company or its assignee(s) under this Section
3(a) shall be the Offered Price. If the Offered Price includes consideration
other than cash, the cash equivalent value of the non-cash consideration shall
be determined by the Board of Directors of the Company in good faith.

                  (iv) PAYMENT. Payment of the Purchase Price shall be made, at
the option of the Company or its assignee(s), in cash (by check), by
cancellation of all or a portion of any outstanding indebtedness of the Holder
to the Company (or, in the case of repurchase by an assignee, to the assignee),
or by any combination thereof within 30 days after receipt of the Notice or in
the manner and at the times set forth in the Notice.

                  (v) HOLDER'S RIGHT TO TRANSFER. If all of the Shares proposed
in the Notice to be transferred to a given Proposed Transferee are not purchased
by the Company and/or its assignee(s) as provided in this Section 3(a), then the
Holder may sell or otherwise transfer such Shares to that Proposed Transferee at
the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 60 days after the date of the Notice and provided
further that any such sale or other transfer is effected in accordance with any
applicable securities laws and the Proposed Transferee agrees in writing that
the provisions of this Section 3 shall continue to apply to the Shares in the
hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, or if the Holder
proposes to change the price or other terms to make them more favorable to the
Proposed Transferee, a new Notice shall be given to the Company, and the Company
and/or its assignees shall again be offered the Right of First Refusal before
any Shares held by the Holder may be sold or otherwise transferred.

                  (vi) EXCEPTION FOR CERTAIN FAMILY TRANSFERS. Anything to the
contrary contained in this Section 3(a) notwithstanding, the transfer of any or
all of the Shares during Purchaser's lifetime or on Purchaser's death by will or
intestacy to Purchaser's Immediate Family (as defined below) or a trust for the
benefit of Purchaser's Immediate Family shall be exempt from the provisions of
this Section 3(a). "Immediate Family" as used herein shall mean spouse, lineal
descendant or antecedent, father, mother, brother or sister. In such case, the
transferee or other recipient shall receive and hold the Shares so transferred
subject to the provisions of this Section, and there shall be no further
transfer of such Shares except in accordance with the terms of this Section 3.

            (b) INVOLUNTARY TRANSFER.

                                      B-2
<PAGE>

                  (i) COMPANY'S RIGHT TO PURCHASE UPON INVOLUNTARY TRANSFER. In
the event, at any time after the date of this Agreement, of any transfer by
operation of law or other involuntary transfer (including divorce or death, but
excluding, in the event of death, a transfer to Immediate Family as set forth in
Section 3(a)(vi) above) of all or a portion of the Shares by the record holder
thereof, the Company shall have the right to purchase all of the Shares
transferred at the greater of the purchase price paid by Purchaser pursuant to
this Agreement or the Fair Market Value of the Shares on the date of transfer.
Upon such a transfer, the person acquiring the Shares shall promptly notify the
Secretary of the Company of such transfer. The right to purchase such Shares
shall be provided to the Company for a period of 30 days following receipt by
the Company of written notice by the person acquiring the Shares.

                  (ii) PRICE FOR INVOLUNTARY TRANSFER. With respect to any stock
to be transferred pursuant to Section 3(b)(i), the price per Share shall be a
price set by the Board of Directors of the Company that will reflect the current
value of the stock in terms of present earnings and future prospects of the
Company. The Company shall notify Purchaser or his or her executor of the price
so determined within 30 days after receipt by it of written notice of the
transfer or proposed transfer of Shares. However, if the Purchaser does not
agree with the valuation as determined by the Board of Directors of the Company,
the Purchaser shall be entitled to have the valuation determined by an
independent appraiser to be mutually agreed upon by the Company and the
Purchaser and whose fees shall be borne equally by the Company and the
Purchaser.

            (c) ASSIGNMENT. The right of the Company to purchase any part of the
Shares may be assigned in whole or in part to any shareholder or shareholders of
the Company or other persons or organizations.

            (d) RESTRICTIONS BINDING ON TRANSFEREES. All transferees of Shares
or any interest therein will receive and hold such Shares or interest subject to
the provisions of this Agreement. Any sale or transfer of the Shares shall be
void unless the provisions of this Agreement are satisfied.

            (e) TERMINATION OF RIGHTS. The Right of First Refusal and the
Company's right to repurchase the Shares in the event of an involuntary transfer
pursuant to Section 3(b) above shall terminate upon the listing of Common Stock
of the Company on a national exchange.

            (f) MARKET STANDOFF AGREEMENT. In connection with the initial public
offering of the Company's securities and upon request of the Company or the
underwriters managing such underwritten offering of the Company's securities,
Purchaser agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any securities of the Company (other
than those included in the registration) without the prior written consent of
the Company or such underwriters, as the case may be, for such period of time
(not to exceed 180 days) from the effective date of such registration as may be
requested by the Company or such managing underwriters and to execute an
agreement reflecting the foregoing as may be requested by the underwriters at
the time of the Company's initial public offering.

      4. INVESTMENT AND TAXATION REPRESENTATIONS. In connection with the
purchase of the Shares, Purchaser represents to the Company the following:

                                      B-3
<PAGE>

            (a) Purchaser is aware of the Company's business affairs and
financial condition and has acquired sufficient information about the Company to
reach an informed and knowledgeable decision to acquire the Shares. Purchaser is
purchasing the Shares for investment for his or her own account only and not
with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act.

            (b) Purchaser understands that the Shares have not been registered
under the Securities Act by reason of a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of Purchaser's
investment intent as expressed herein.

            (c) Purchaser understands that the Shares are "restricted
securities" under applicable U.S. federal and state securities laws and that,
pursuant to these laws, Purchaser must hold the Shares indefinitely unless they
are registered with the Securities and Exchange Commission and qualified by
state authorities, or an exemption from such registration and qualification
requirements is available. Purchaser acknowledges that the Company has no
obligation to register or qualify the Shares for resale. Purchaser further
acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and
requirements relating to the Company which are outside of the Purchaser's
control, and which the Company is under no obligation and may not be able to
satisfy.

            (d) Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser's purchase or disposition of the Shares.
Purchaser represents that Purchaser has consulted any tax consultants Purchaser
deems advisable in connection with the purchase or disposition of the Shares and
that Purchaser is not relying on the Company for any tax advice.

      5. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

            (a) LEGENDS. The certificate or certificates representing the Shares
shall bear the following legends (as well as any legends required by applicable
state and federal corporate and securities laws):

                  (i) THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT OF 1933.

                  (ii) THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE
TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE
COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF
THE COMPANY.

                                      B-4
<PAGE>

            (b) STOP-TRANSFER NOTICES. Purchaser agrees that, in order to ensure
compliance with the restrictions referred to herein, the Company may issue
appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

            (c) REFUSAL TO TRANSFER. The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

            (d) REMOVAL OF LEGEND. When all of the following events have
occurred, the Shares then held by Purchaser will no longer be subject to the
legend referred to in Section 5(a)(ii): (i) the termination of the Right of
First Refusal; and (ii) the expiration or termination of the market standoff
provisions of Section 3(f) (and of any agreement entered pursuant to Section
3(f)). After such time, and upon Purchaser's request, a new certificate or
certificates representing the Shares not repurchased shall be issued without the
legend referred to in Section 5(a)(ii), and delivered to Purchaser.

      6. NO EMPLOYMENT RIGHTS. Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser's employment or consulting relationship,
for any reason, with or without cause.

      7. MISCELLANEOUS.

            (a) GOVERNING LAW. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

            (b) ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This Agreement sets
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. No
modification of or amendment to this Agreement, nor any waiver of any rights
under this Agreement, shall be effective unless in writing signed by the parties
to this Agreement. The failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of any rights of such party.

            (c) SEVERABILITY. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii)
the balance of the Agreement shall be enforceable in accordance with its terms.

            (d) CONSTRUCTION. This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

                                      B-5
<PAGE>

            (e) NOTICES. Any notice required or permitted by this Agreement
shall be in writing and shall be deemed sufficient when delivered personally or
sent by telegram or fax or 48 hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party
to be notified at such party's address as set forth below or as subsequently
modified by written notice.

            (f) COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

            (g) SUCCESSORS AND ASSIGNS. The rights and benefits of this
Agreement shall inure to the benefit of, and be enforceable by the Company's
successors and assigns. The rights and obligations of Purchaser under this
Agreement may only be assigned with the prior written consent of the Company.

            (h) CALIFORNIA CORPORATE SECURITIES LAW. THE SALE OF THE SECURITIES
WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE
COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR
PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT
FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY
CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

                            [Signature Page Follows]

                                      B-6
<PAGE>

      The parties have executed this Agreement as of the date first set forth
above.

                                     COMPANY:

                                     WORLD WASTE TECHNOLOGIES, INC.

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

                                        Address: 13520 Evening Creek Drive North
                                                 San Diego, CA 92128

                                     PURCHASER:

                                     [Name]

                                     -------------------------------------------
                                     Signature

                                     -------------------------------------------
                                     Print Name

                                     -------------------------------------------
                                     Address

                                     -------------------------------------------
                                     Address

                                      B-7
<PAGE>

                                     RECEIPT

      World Waste Technologies, Inc. (the "Company") hereby acknowledges receipt
of (check as applicable):

      ____  A check in the amount of $__________

      ____  The cancellation of indebtedness in the amount of $__________

      ____  Certificate No. ____ representing ______ shares of the Company's
            Common Stock with a fair market value of $__________

given by ____________ as consideration for Certificate No. ______ for
___________ shares of Common Stock of the Company.

Dated:
      --------------------------

                                     WORLD WASTE TECHNOLOGIES, INC.

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:FIRST HORIZON ASSET SECURITIES INC.

                                    Depositor

                       FIRST HORIZON HOME LOAN CORPORATION

                                 Master Servicer

                                       and

                              THE BANK OF NEW YORK

                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT

                           Dated as of October 1, 2005

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

          FIRST HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2005-FA9

               MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2005-FA9

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
<S>         <C>

ARTICLE I   DEFINITIONS...........................................................................................5

ARTICLE II  CONVEYANCE OF MORTGAGE LOANS;  REPRESENTATIONS AND WARRANTIES........................................36
    SECTION 2.1 Conveyance of Mortgage Loans.....................................................................36
    SECTION 2.2 Acceptance by Trustee of the Mortgage Loans......................................................40
    SECTION 2.3 Representations and Warranties of the Master Servicer;  Covenants of the Seller..................42
    SECTION 2.4 Representations and Warranties of the Depositor as to the Mortgage Loans.........................44
    SECTION 2.5 Delivery of Opinion of Counsel in Connection with Substitutions..................................45
    SECTION 2.6 Execution and Delivery of Certificates...........................................................45
    SECTION 2.7 REMIC Matters....................................................................................46
    SECTION 2.8 Covenants of the Master Servicer.................................................................48

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS.......................................................48
    SECTION 3.1 Master Servicer to Service Mortgage Loans........................................................48
    SECTION 3.2 Subservicing; Enforcement of the Obligations of Servicers........................................49
    SECTION 3.3 Rights of the Depositor and the Trustee in Respect of the Master Servicer........................50
    SECTION 3.4 Trustee to Act as Master Servicer................................................................50
    SECTION 3.5 Collection of Mortgage Loan Payments; Certificate Account; Distribution Account..................51
    SECTION 3.6 Collection of Taxes, Assessments and Similar Items; Escrow Accounts..............................54
    SECTION 3.7 Access to Certain Documentation and Information Regarding the Mortgage Loans.....................54
    SECTION 3.8 Permitted Withdrawals from the Certificate Account and Distribution Account......................55
    SECTION 3.9 Maintenance of Hazard Insurance; Maintenance of Primary Insurance Policies.......................57
    SECTION 3.10 Enforcement of Due-on-Sale Clauses; Assumption Agreements.......................................58
    SECTION 3.11 Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans.................60
    SECTION 3.12 Trustee to Cooperate; Release of Mortgage Files.................................................62
    SECTION 3.13 Documents Records and Funds in Possession of Master Servicer to be Held for the Trustee.........63
    SECTION 3.14 Master Servicing Compensation...................................................................63
    SECTION 3.15 Access to Certain Documentation.................................................................64
    SECTION 3.16 Annual Statement as to Compliance...............................................................64
    SECTION 3.17 Annual Independent Public Accountants' Servicing Statement; Financial Statements................64
    SECTION 3.18 Errors and Omissions Insurance; Fidelity Bonds..................................................65
</TABLE>

<PAGE>

<TABLE>
<S>         <C>
ARTICLE IV  DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER....................................................65
    SECTION 4.1 Advances.........................................................................................65
    SECTION 4.2 Priorities of Distribution.......................................................................66
    SECTION 4.3 Method of Distribution...........................................................................69
    SECTION 4.4 Allocation of Losses.............................................................................71
    SECTION 4.5 Reserved.........................................................................................73
    SECTION 4.6 Monthly Statements to Certificateholders.........................................................73
    SECTION 4.7 Corridor Reserve Fund............................................................................75
    SECTION 4.8 Separate Interest Trust..........................................................................76
    SECTION 4.9 Determination of Pass-Through Rates for LIBOR Certificates.......................................76

ARTICLE V   THE CERTIFICATES.....................................................................................78
    SECTION 5.1 The Certificates.................................................................................78
    SECTION 5.2 Certificate Register; Registration of Transfer and Exchange of Certificates......................79
    SECTION 5.3 Mutilated, Destroyed, Lost or Stolen Certificates................................................85
    SECTION 5.4 Persons Deemed Owners............................................................................85
    SECTION 5.5 Access to List of Certificateholders' Names and Addresses........................................85
    SECTION 5.6 Maintenance of Office or Agency..................................................................86

ARTICLE VI  THE DEPOSITOR AND THE MASTER SERVICER................................................................86
    SECTION 6.1 Respective Liabilities of the Depositor and the Master Servicer..................................86
    SECTION 6.2 Merger or Consolidation of the Depositor or the Master Servicer..................................86
    SECTION 6.3 Limitation on Liability of the Depositor, the Master Servicer and Others.........................87
    SECTION 6.4 Limitation on Resignation of Master Servicer.....................................................87

ARTICLE VII DEFAULT..............................................................................................88
    SECTION 7.1 Events of Default................................................................................88
    SECTION 7.2 Trustee to Act; Appointment of Successor.........................................................90
    SECTION 7.3 Notification to Certificateholders...............................................................91

ARTICLE VIII CONCERNING THE TRUSTEE..............................................................................91
    SECTION 8.1 Duties of Trustee................................................................................91
    SECTION 8.2 Certain Matters Affecting the Trustee............................................................93
    SECTION 8.3 Trustee Not Liable for Certificates or Mortgage Loans............................................95
    SECTION 8.4 Trustee May Own Certificates.....................................................................95
    SECTION 8.5 Trustee's Fees and Expenses......................................................................95
    SECTION 8.6 Eligibility Requirements for Trustee.............................................................96
    SECTION 8.7 Resignation and Removal of Trustee...............................................................96
    SECTION 8.8 Successor Trustee................................................................................97
    SECTION 8.9 Merger or Consolidation of Trustee...............................................................97
    SECTION 8.10 Appointment of Co-Trustee or Separate Trustee...................................................97
    SECTION 8.11 Tax Matters.....................................................................................99
    SECTION 8.12 Periodic Filings...............................................................................101

ARTICLE IX  TERMINATION.........................................................................................101
    SECTION 9.1 Termination upon Liquidation or Purchase of all Mortgage Loans..................................101
    SECTION 9.2 Final Distribution on the Certificates..........................................................102
    SECTION 9.3 Additional Termination Requirements.............................................................103

ARTICLE X   [RESERVED]..........................................................................................104

ARTICLE XI  MISCELLANEOUS PROVISIONS............................................................................104
    SECTION 11.1 Amendment......................................................................................104
    SECTION 11.2 Recordation of Agreement; Counterparts.........................................................105
    SECTION 11.3 Governing Law..................................................................................105
    SECTION 11.4 Intention of Parties...........................................................................106
    SECTION 11.5 Notices........................................................................................106
    SECTION 11.6 Severability of Provisions.....................................................................107
    SECTION 11.7 Assignment.....................................................................................107
    SECTION 11.8 Limitation on Rights of Certificateholders.....................................................108
    SECTION 11.9 Inspection and Audit Rights....................................................................108
    SECTION 11.10 Certificates Nonassessable and Fully Paid.....................................................109
    SECTION 11.11 Limitations on Actions; No Proceedings........................................................109
    SECTION 11.12 Acknowledgment of Seller......................................................................109
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                    SCHEDULES
<S>                   <C>                                                                                  <C>
Schedule I:           Mortgage Loan Schedule                                                                 S-I-1
Schedule II:          Representations and Warranties of the Master Servicer                                 S-II-1
Schedule III:         Form of Monthly Master Servicer Report                                               S-III-1

                                    EXHIBITS

Exhibit A-1:          Form of Senior Certificate                                                             A-1-1
Exhibit A-2:          Form of Senior Certificate/Class A-PO                                                  A-2-1
Exhibit B:            Form of Subordinated Certificate                                                         B-1
Exhibit C:            Form of Residual Certificate                                                             C-1
Exhibit D:            Form of Reverse of Certificates                                                          D-1
Exhibit E:            Form of Initial Certification                                                            E-1
Exhibit F:            Form of Delay Delivery Certification                                                     F-1
Exhibit G:            Form of Subsequent Certification of Custodian                                            G-1
Exhibit H:            Transfer Affidavit                                                                       H-1
Exhibit I:            Form of Transferor Certificate                                                           I-1
Exhibit J:            Form of Investment Letter [Non-Rule 144A]                                                J-1
Exhibit K:            Form of Rule 144A Letter                                                                 K-1
Exhibit L:            Request for Release (for Trustee)                                                        L-1
Exhibit M:            Request for Release (Mortgage Loan)                                                      M-1
Exhibit N:            Principal Balance Schedules                                                              N-1
</TABLE>

<PAGE>

         THIS POOLING AND SERVICING AGREEMENT, dated as of October 1, 2005,
among FIRST HORIZON ASSET SECURITIES INC., a Delaware corporation, as depositor
(the "Depositor"), FIRST HORIZON HOME LOAN CORPORATION, a Kansas corporation, as
master servicer (the "Master Servicer"), and THE BANK OF NEW YORK, a banking
corporation organized under the laws of the State of New York, as trustee (the
"Trustee").

                                 WITNESSETH THAT

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

                              PRELIMINARY STATEMENT

         The Depositor is the owner of the Trust Fund that is hereby conveyed to
the Trustee in return for the Certificates. The Trust Fund for federal income
tax purposes will consist of two separate REMICs, each having assets as provided
herein. The Certificates will represent the entire beneficial ownership interest
in the Trust Fund. The Regular Certificates will represent "regular interests"
in the Upper REMIC. The Class A-R Certificates will represent the residual
interests in the Lower REMIC and Upper REMIC, as described in Section 2.7. The
"latest possible maturity date" for federal income tax purposes of all REMIC
regular interests created hereby will be the Latest Possible Maturity Date.

         The following table sets forth characteristics of the Certificates,
together with the minimum denominations and integral multiples in excess thereof
in which such Classes shall be issuable (except that one Certificate of each
Class of Certificates may be issued in a different amount and, in addition, one
Residual Certificate representing the Tax Matters Person Certificate may be
issued in a different amount):

                  [Remainder of Page Intentionally Left Blank]

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                             Initial Class                                     Minimum          Integral Multiples
   Class Designation      Certificate Balance      Pass-Through Rate        Denominations       in Excess Minimum
--------------------------------------------------------------------------------------------------------------------
<S>                          <C>                      <C>                    <C>                   <C>
       Class A-1             $ 250,207,000.00         variable(1)            $      25,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class A-2                    (2)               variable(3)            $     500,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class A-3             $  29,090,000.00            5.500%              $      25,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
      Class A-4A             $  41,278,000.00            5.500%              $      25,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
      Class A-4B             $   2,568,000.00            5.500%              $      25,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class A-5             $ 115,320,000.00            5.500%              $      25,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
      Class A-PO             $   1,299,952.36               (4)              $      25,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class A-R             $         100.00            5.500%              $         100                   N/A
--------------------------------------------------------------------------------------------------------------------
       Class B-1             $   9,200,000.00            5.500%              $     100,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class B-2             $   3,910,000.00            5.500%              $     100,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class B-3             $   2,300,000.00            5.500%              $     100,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class B-4             $   2,070,000.00            5.500%              $     100,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class B-5             $   1,610,000.00            5.500%              $     100,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
       Class B-6             $   1,150,750.71            5.500%              $     100,000         $       1,000
--------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) The Pass-Through Rate with respect to any Distribution Date for the Class
A-1 Certificates is the per annum rate equal to (a) 4.550% with respect to the
first Distribution Date, and (b) thereafter, the lesser of (i) LIBOR plus 0.700%
and (ii) 5.500%, subject to a minimum rate of 0.700%.

(2) The Class A-2 Certificates are Notional Amount Certificates and will accrue
interest during each Interest Accrual Period on a Notional Amount equal to the
Class Certificate Balance of the Class A-1 Certificates. The initial Notional
Amount of the Class A-2 Certificates will be $250,207,000.00.

(3) The Pass-Through Rate with respect to any Distribution Date for the Class
A-2 Certificates is the per annum rate equal to (a) 0.950% with respect to the
first Distribution Date, and (b) thereafter, the lesser of (i) 4.800% minus
LIBOR and (ii) 4.800%, subject to a minimum rate of 0.000%.

(4) The Class A-PO Certificates are Principal Only Certificates and will not
accrue interest.

                                       2
<PAGE>

<TABLE>
<S>                                        <C>
Accretion Directed Certificates.......     None.
Accrual Certificates..................     None.
Accrual Components....................     None.
Book-Entry Certificates...............     All Classes of Certificates other than the Physical Certificates.
COFI Certificates.....................     None.
Component Certificates................     None.
Components............................     None.
Delay Certificates....................     All interest-bearing Classes of Certificates other than the Non-Delay
                                           Certificates, if any.
ERISA-Restricted Certificates.........     The Residual Certificates, Private Certificates and Certificates of
                                           any Class that no longer satisfy the applicable rating requirement
                                           of the Underwriters' Exemption.
Floating Rate Certificates............     The Class A-1 Certificates.
Inverse Floating Rate Certificates....     The Class A-2 Certificates.
LIBOR Certificates....................     The Class A-1, and Class A-2 Certificates.
NAS Certificates......................     The Class A-4A and Class A-4B Certificates.
Non-Delay Certificates................     The LIBOR Certificates.
Notional Amount Certificates..........     The Class A-2 Certificates.
Offered Certificates..................     All Classes of Certificates other than the Private Certificates.
Physical Certificates.................     The Private Certificates and the Residual Certificates.
Planned Principal Classes.............     None.
Principal Only Certificates...........     The Class A-PO Certificates.
Private Certificates..................     The Class A-PO, Class B-4, Class B-5 and Class B-6 Certificates.
Rating Agencies.......................     S&P and Moody's; except that, for the purposes of the Class B-1, Class
                                           B-2, Class B-3, Class B-4 and Class B-5 Certificates, S&P shall be the
                                           sole Rating Agency. The Class B-6 Certificates will not be rated.
Regular Certificates..................     All Classes of Certificates, other than the Residual Certificates.
Residual Certificates.................     The Class A-R Certificates.
Retail/Lottery Certificates...........     None.
Scheduled Balance Certificates........     None.
Senior Certificates...................     The Class A-1, Class A-2, Class A-3, Class A-4A, Class A-4B and Class A-5
                                           Certificates, collectively.
Senior Support Mezzanine Certificates.     The Class A-4B Certificates.
</TABLE>

                                       3

<PAGE>

<TABLE>
<S>                                        <C>
Subordinated Certificates.............     The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6
                                           Certificates.
Super Senior Certificates.............     The Class A-4A Certificates.
Support Classes.......................     None.
Targeted Principal Classes............     None.
Underwriters..........................     Citigroup Global Markets Inc. and Credit Suisse First Boston LLC
</TABLE>

         With respect to any of the foregoing designations as to which the
corresponding reference is "None," all defined terms and provisions herein
relating solely to such designations shall be of no force or effect, and any
calculations herein incorporating references to such designations shall be
interpreted without reference to such designations and amounts. Defined terms
and provisions herein relating to statistical rating agencies not designated
above as Rating Agencies shall be of no force or effect.

                                       4
<PAGE>

                                   ARTICLE I
                                  DEFINITIONS

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

         Accretion Directed Certificates:  Not applicable.

         Accretion Termination Date:  Not applicable.

         Accrual Amount:  Not applicable.

         Accrual Certificates:  Not applicable.

         Accrued Certificate Interest: For any Class of Certificates entitled to
distributions of interest for any Distribution Date, the interest accrued during
the related Interest Accrual Period at the applicable Pass-Through Rate on the
Class Certificate Balance (or Notional Amount, in the case of the Notional
Amount Certificates) of such Class of Certificates immediately prior to such
Distribution Date, less such Class' share of any Net Interest Shortfall.

         Adjusted Mortgage Rate: As to each Mortgage Loan, and at any time, the
per annum rate equal to the Mortgage Rate less the Master Servicing Fee Rate.

         Adjusted Net Mortgage Rate: As to each Mortgage Loan, and at any time,
the per annum rate equal to the Mortgage Rate less the related Expense Fee Rate.

         Advance: The payment required to be made by the Master Servicer with
respect to any Distribution Date pursuant to Section 4.1, the amount of any such
payment being equal to the aggregate of payments of principal and interest (net
of the Master Servicing Fee and net of any net income in the case of any REO
Property) on the Mortgage Loans that were due on the related Due Date and not
received as of the close of business on the related Determination Date, less the
aggregate amount of any such delinquent payments that the Master Servicer has
determined would constitute a Nonrecoverable Advance if advanced.

         Agreement: This Pooling and Servicing Agreement and all amendments or
supplements hereto.

         Allocable Share: With respect to any Class of Subordinated Certificates
on any Distribution Date, such Class' pro rata share (based on the Class
Certificate Balance of each Class entitled thereto) of each of the components of
the Subordinated Optimal Principal Amount; provided that, solely for purposes of
this definition, the applicable Subordinated Optimal Principal Amount will be
reduced by the amounts required to be distributed to the related Class PO
Certificates in respect of the applicable Class PO Deferred Amount on such
Distribution Date, and any such reduction in the Subordinate Optimal Principal
Amount shall reduce the amounts calculated pursuant to clauses (1), (4), (2),
(3) and (5) of the definition thereof, in that order, and the Class Certificate
Balances of each Class of Subordinated Certificates will be reduced by such
amounts in reverse order of priority until the respective Class Certificate
Balances of each Class of Subordinated Certificates has been reduced to zero;
provided further, that, except as provided in this Agreement, no Subordinated
Certificates (other than the Class of Subordinated Certificates with the highest
priority of distribution) shall be entitled on any Distribution Date to receive
distributions pursuant to clauses (2), (3) and (5) of the definition of
Subordinated Optimal Principal Amount unless the Class Prepayment Distribution
Trigger for such Class is satisfied for such Distribution Date.

                                       5
<PAGE>

         Alternative Title Product: Any one of the following: (i) Lien
Protection Insurance issued by Integrated Loan Services or ATM Corporation of
America, (ii) a Mortgage Lien Report issued by EPN Solutions/ACRAnet, (iii) a
Property Plus Report issued by Rapid Refinance Service through
SharperLending.com, or (iv) such other alternative title insurance product that
the Seller utilizes in connection with its then current underwriting criteria.

         Amount Held for Future Distribution: As to any Distribution Date, the
aggregate amount held in the Certificate Account at the close of business on the
related Determination Date on account of (i) Principal Prepayments received
after the related Prepayment Period and Liquidation Proceeds received in the
month of such Distribution Date and (ii) all Scheduled Payments due after the
related Due Date.

         Appraised Value: With respect to any Mortgage Loan, the Appraised Value
of the related Mortgaged Property shall be: (i) with respect to a Mortgage Loan
other than a Refinancing Mortgage Loan, the lesser of (a) the value of the
Mortgaged Property based upon the appraisal made at the time of the origination
of such Mortgage Loan and (b) the sales price of the Mortgaged Property at the
time of the origination of such Mortgage Loan; (ii) with respect to a
Refinancing Mortgage Loan other than a Streamlined Documentation Mortgage Loan,
the value of the Mortgaged Property based upon the appraisal made at the time of
the origination of such Refinancing Mortgage Loan; and (iii) with respect to a
Streamlined Documentation Mortgage Loan, (a) if the loan-to-value ratio with
respect to the Original Mortgage Loan at the time of the origination thereof was
90% or less, the value of the Mortgaged Property based upon the appraisal made
at the time of the origination of the Original Mortgage Loan and (b) if the
loan-to-value ratio with respect to the Original Mortgage Loan at the time of
the origination thereof was greater than 90%, the value of the Mortgaged
Property based upon the appraisal (which may be a drive-by appraisal) made at
the time of the origination of such Streamlined Documentation Mortgage Loan.

         Available Funds:  With respect to any Distribution Date, an amount
equal to the sum of:

         (a)  all scheduled installments of interest, net of the Master
              Servicing Fee, the Trustee Fee and any amounts due to First
              Horizon in respect of the Retained Yield on such Distribution
              Date, and all scheduled installments of principal due in respect
              of the Mortgage Loans on the Due Date in the month in which the
              Distribution Date occurs and received before the related
              Determination Date, together with any Advances in respect thereof;

         (b)  all Insurance Proceeds, Liquidation Proceeds and Unanticipated
              Recoveries received in respect of the Mortgage Loans during the
              calendar month before the Distribution Date, which in each case is
              net of unreimbursed expenses incurred in connection with a
              liquidation or foreclosure and unreimbursed Advances, if any;

                                       6
<PAGE>

         (c)  all Principal Prepayments received in respect of the Mortgage
              Loans during the related Prepayment Period, plus interest received
              thereon, net of any Prepayment Interest Excess;

         (d)  any Compensating Interest in respect of Principal Prepayments in
              Full received in respect of the Mortgage Loans during the related
              Prepayment Period; and

         (e)  any Substitution Adjustment Amount or the Purchase Price for any
              Deleted Mortgage Loan or a Mortgage Loan repurchased by the Seller
              or the Master Servicer as of such Distribution Date, reduced by
              amounts in reimbursement for Advances previously made and other
              amounts that the Master Servicer is entitled to be reimbursed for
              out of the Certificate Account pursuant to this Agreement.

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

         Bankruptcy Coverage Termination Date: The date on which the Bankruptcy
Loss Coverage Amount is reduced to zero.

         Bankruptcy Loss: With respect to any Mortgage Loan, a Deficient
Valuation or Debt Service Reduction; provided, however, that a Bankruptcy Loss
shall not be deemed a Bankruptcy Loss hereunder so long as the Master Servicer
has notified the Trustee in writing that the Master Servicer is diligently
pursuing any remedies that may exist in connection with the related Mortgage
Loan and either (A) the related Mortgage Loan is not in default with regard to
payments due thereunder or (B) delinquent payments of principal and interest
under the related Mortgage Loan and any related escrow payments in respect of
such Mortgage Loan are being advanced on a current basis by the Master Servicer,
in either case without giving effect to any Debt Service Reduction or Deficient
Valuation.

         Bankruptcy Loss Coverage Amount: As of any Determination Date, the
Bankruptcy Loss Coverage Amount shall equal the Initial Bankruptcy Coverage
Amount as reduced by (i) the aggregate amount of Bankruptcy Losses allocated to
the Certificates since the Cut-off Date and (ii) any permissible reductions in
the Bankruptcy Loss Coverage Amount as evidenced by a letter of each Rating
Agency to the Trustee to the effect that any such reduction will not result in a
downgrading of the then current ratings assigned to the Classes of Certificates
rated by it. As of any Distribution Date on or after the Cross-over Date, the
Bankruptcy Loss Coverage Amount will be zero.

         Blanket Mortgage:  The mortgage or mortgages encumbering the
Cooperative Property.

         Book-Entry Certificates:  As specified in the Preliminary Statement.

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

         Certificate: Any one of the Certificates executed by the Trustee in
substantially the forms attached hereto as exhibits.

                                       7
<PAGE>

         Certificate Account: The separate Eligible Account created and
maintained by the Master Servicer pursuant to Section 3.5 with a depository
institution in the name of the Master Servicer for the benefit of the Trustee on
behalf of Certificateholders and designated "First Horizon Home Loan Corporation
in trust for the registered holders of First Horizon Asset Securities Inc.
Mortgage Pass-Through Certificates, Series 2005-FA9."

         Certificate Owner: With respect to a Book-Entry Certificate, the Person
who is the beneficial owner of such Book-Entry Certificate.

         Certificate Principal Balance: With respect to any Certificate and as
of any Distribution Date, the Certificate Principal Balance on the date of the
initial issuance of such Certificate, as reduced by:

         (a)  all amounts distributed on previous Distribution Dates on such
              Certificate on account of principal,

         (b)  the principal portion of all Realized Losses previously allocated
              to such Certificate, and

         (c)  in the case of a Subordinated Certificate, such Certificate's pro
              rata share, if any, of the Subordinated Certificate Writedown
              Amount for previous Distribution Dates.

         Certificate Register:  The register maintained pursuant to Section 5.2
hereof.

         Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or the Seller or any affiliate or agent of the Depositor
or the Seller shall be deemed not to be Outstanding and the Percentage Interest
evidenced thereby shall not be taken into account in determining whether the
requisite amount of Percentage Interests necessary to effect such consent has
been obtained; provided, however, that if any such Person (including the
Depositor) owns 100% of the Percentage Interests evidenced by a Class of
Certificates, such Certificates shall be deemed to be Outstanding for purposes
of any provision hereof that requires the consent of the Holders of Certificates
of a particular Class as a condition to the taking of any action hereunder. The
Trustee is entitled to rely conclusively on a certification of the Depositor or
any affiliate of the Depositor in determining which Certificates are registered
in the name of an affiliate of the Depositor.

         Citigroup: Citigroup Global Markets Inc.

         Class:  All Certificates bearing the same class designation as set
forth in the Preliminary Statement.

         Class A-PO Deferred Amount: With respect to the Class A-PO Certificates
and any Distribution Date through the Cross-over Date, the sum of (1) the Class
PO Percentage of the principal portion of Non-Excess Losses on a Discount
Mortgage Loan allocated to the Class A-PO Certificates on such date, and (2) all
amounts previously allocated to the Class A-PO Certificates in respect of such
losses and not distributed to the Class A-PO Certificates on prior Distribution
Dates.

                                       8
<PAGE>

         Class Certificate Balance: With respect to any Class of Certificates
and as of any Distribution Date the aggregate of the Certificate Principal
Balances of all Certificates of such Class as of such date, plus the amount of
any Unanticipated Recoveries added to the Class Certificate Balance of such
Class of Certificates pursuant to Section 4.2(f).

         Class PO Certificates:  The Class A-PO Certificates.

         Class PO Deferred Amount: With respect to the Class A-PO Certificates
and any Distribution Date through the Cross-over Date, the sum of (1) the
applicable PO Percentage of the principal portion of Non-Excess Losses on a
Discount Mortgage Loan allocated to the Class A-PO Certificates on such date,
and (2) all amounts previously allocated to the Class A-PO Certificates in
respect of such losses and not distributed to the Class A-PO Certificates on
prior Distribution Dates.

         Class PO Deferred Payment Writedown Amount: For any Distribution Date
and any Class of Principal Only Certificates, the amount, if any, distributed on
such date in respect of the related Class PO Deferred Amount pursuant to Section
4.2(a)(iv) herein. The Subordinated Certificate Writedown Amount and the Class
PO Deferred Payment Writedown Amount will be allocated to the Classes of
Subordinated Certificates in inverse order of priority, until the Class
Certificate Balance of each such Class has been reduced to zero.

         Class PO Principal Distribution Amount: With respect to each
Distribution Date and the Principal Only Certificates, an amount equal to the
sum of:

                  (1) the applicable PO Percentage of all Scheduled Payments of
         principal due on each Mortgage Loan on the first day of the month in
         which the Distribution Date occurs, as specified in the amortization
         schedule at the time applicable thereto, after adjustment for previous
         principal prepayments and the principal portion of Debt Service
         Reductions after the Bankruptcy Loss Coverage Amount has been reduced
         to zero, but before any adjustment to such amortization schedule by
         reason of any other bankruptcy or similar proceeding or any moratorium
         or similar waiver or grace period;

                  (2) the applicable PO Percentage of the Stated Principal
         Balance of each Mortgage Loan which was the subject of a Principal
         Prepayment in Full received by the Master Servicer during the related
         Prepayment Period;

                  (3) the applicable PO Percentage of (a) all partial Principal
         Prepayments for each Mortgage Loan received during the related
         Prepayment Period and (b) all Unanticipated Recoveries in respect of
         each Mortgage Loan received by the Master Servicer during the calendar
         month preceding such Distribution Date;

                  (4) the applicable PO Percentage of the sum of (a) the
         Liquidation Proceeds allocable to principal on each Mortgage Loan which
         became a Liquidated Mortgage Loan during the related Prepayment Period,
         other than Mortgage Loans described in clause (b), and (b) the
         principal balance of each Mortgage Loan that was purchased by a private
         mortgage insurer during the related Prepayment Period as an alternative
         to paying a claim under the related mortgage insurance policy; and

                                       9
<PAGE>

                  (5) the applicable PO Percentage, of the sum of (a) the Stated
         Principal Balance of each Mortgage Loan which was repurchased by the
         Seller in connection with such Distribution Date, and (b) the
         difference, if any, between the Stated Principal Balance of a Mortgage
         Loan that has been replaced by the Seller with a Substitute Mortgage
         Loan pursuant to this Agreement in connection with such Distribution
         Date and the Stated Principal Balance of such Substitute Mortgage Loan.

         For purposes of clauses (2) and (5) above, the Stated Principal Balance
of a Mortgage Loan will be reduced by the amount of any Deficient Valuation that
occurred prior to the reduction of the Bankruptcy Loss Coverage Amount to zero.

         Class Prepayment Distribution Trigger: For a Class of Subordinated
Certificates (other than the Class of Subordinated Certificates with the highest
priority of distribution), a trigger that is satisfied on any Distribution Date
on which a fraction (expressed as a percentage), the numerator of which is the
aggregate of the Class Certificate Balance of such Class and each Class
subordinate thereto, if any, and the denominator of which is the Pool Principal
Balance with respect to such Distribution Date, equals or exceeds such
percentage calculated as of the Closing Date.

         Closing Date:  October 28, 2005.

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

         COFI:  Not applicable.

         COFI Certificates:  Not applicable.

         Compensating Interest: As to any Distribution Date and any Principal
Prepayment in respect of a Mortgage Loan that is received during the period from
the sixteenth day of the month (or, in the case of the first Distribution Date,
from the Cut-off Date) prior to the month of such Distribution Date through the
last day of such month, an additional payment to the Mortgage Pool made by the
Master Servicer, to the extent funds are available from the Master Servicing
Fee, equal to the amount of interest at the Adjusted Net Mortgage Rate for that
Mortgage Loan from the date of the prepayment to the related Due Date; provided
that the aggregate of all such payments as to the Mortgage Loans shall not
exceed 0.0083% of the Pool Principal Balance as of the related Determination
Date, and provided further that if a partial Principal Prepayment is applied on
or after the first day of the month following the month of receipt, no
additional payment is required for such Principal Prepayment.

         Component:  Not applicable.

         Component Balance:  Not applicable.

         Component Certificates:  Not applicable.

                                       10
<PAGE>

         Cooperative Corporation: The entity that holds title (fee or an
acceptable leasehold estate) to the real property and improvements constituting
the Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

         Coop Shares:  Shares issued by a Cooperative Corporation.

         Cooperative Loan:  Any Mortgage Loan secured by Coop Shares and a
Proprietary Lease.

         Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

         Cooperative Unit:  A single family dwelling located in a Cooperative
Property.

         Corporate Trust Office: The designated office of the Trustee in the
State of New York at which at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at The Bank of New York, 101
Barclay Street, 8W, New York, New York 10286 (Attn: Corporate Trust
Mortgage-Backed Securities Group, First Horizon Asset Securities Inc. Series
2005-FA9), facsimile no. (212) 815-3986, and which is the address to which
notices to and correspondence with the Trustee should be directed.

         Corresponding Classes: As to any Lower REMIC Interest identified in
Section 2.7, the Class or Classes that are identified in Section 2.7 as
corresponding to such Lower REMIC interest.

         Corridor Contract: The interest rate cap agreement dated October 28,
2005 with respect to the Class A-1 Certificates, by and between the Separate
Interest Trust and the Corridor Contract Counterparty, including the schedule
thereto and the related confirmation (Reference No. CPC3892 / CPC3893).

         Corridor Contract Counterparty:  Citibank, N.A. and its successors and
permitted assigns.

         Corridor Contract Notional Balance: For any Distribution Date, the
amount set forth on Schedule A to the Corridor Contract for such Distribution
Date in the Corridor Contract.

         Corridor Contract Termination Date:  The Distribution Date occurring in
August 2014.

         Corridor Residual Owner:  Citigroup and its successors and assigns.

         Corridor Reserve Fund: A fund created as part of the Separate Interest
Trust pursuant to Section 4.7(a) of this Agreement.

         Cross-over Date: The Distribution Date on which the Class Certificate
Balance of each Class of Subordinated Certificates has been reduced to zero.

                                       11
<PAGE>

         Custodial Agreement: The Custodial Agreement dated as of October 28,
2005 by and among the Trustee, the Master Servicer and the Custodian.

         Custodian: First Tennessee Bank National Association, a national
banking association, and its successors and assigns, as custodian under the
Custodial Agreement.

         Cut-off Date:  October 1, 2005.

         Cut-off Date Pool Principal Balance:  $460,003,803.07.

         Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
by a court of competent jurisdiction in a proceeding under the Bankruptcy Code
in the Scheduled Payment for such Mortgage Loan which became final and
non-appealable, except such a reduction resulting from a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

         Defective Mortgage Loan: Any Mortgage Loan which is required to be
repurchased pursuant to Section 2.2 or 2.3.

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

         Definitive Certificates: Any Certificate evidenced by a Physical
Certificate and any Certificate issued in lieu of a Book-Entry Certificate
pursuant to Section 5.2(e).

         Delay Certificates:  As specified in the Preliminary Statement.

         Delay Delivery Mortgage Loans: The Mortgage Loans for which all or a
portion of a related Mortgage File is not delivered to the Trustee on the
Closing Date. The number of Delay Delivery Mortgage Loans shall not exceed 25%
of the aggregate number of Mortgage Loans as of the Closing Date.

         Deleted Mortgage Loan:  As defined in Section 2.3(b) hereof.

         Denomination: With respect to each Certificate, the amount set forth on
the face thereof as the "Initial Certificate Balance of this Certificate" or the
Percentage Interest appearing on the face thereof.

         Depositor: First Horizon Asset Securities Inc., a Delaware corporation,
or its successor in interest.

                                       12
<PAGE>

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

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

         Determination Date: As to any Distribution Date, the earlier of (i) the
third Business Day after the 15th day of each month, and (ii) the second
Business Day prior to the related Distribution Date.

         Discount Mortgage Loan: Any Mortgage Loan with an Adjusted Net Mortgage
Rate of less than 5.50%.

         Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.5 in the name of the Trustee for
the benefit of the Certificateholders and designated "The Bank of New York, in
trust for registered Holders of First Horizon Asset Securities Inc. Mortgage
Pass-Through Certificates, Series 2005-FA9." Funds in the Distribution Account
shall be held in trust for the Certificateholders for the uses and purposes set
forth in this Agreement.

         Distribution Account Deposit Date: As to any Distribution Date, 1:30
p.m. Central time on the Business Day immediately preceding such Distribution
Date.

         Distribution Date: The 25th day of each calendar month after the
initial issuance of the Certificates, or if such 25th day is not a Business Day,
the next succeeding Business Day, commencing in November 2005.

         Due Date: With respect to any Distribution Date, the first day of the
month in which the related Distribution Date occurs.

         Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the debt obligations of such holding company) have the highest
short-term ratings of each Rating Agency at the time any amounts are held on
deposit therein, or (ii) an account or accounts in a depository institution or
trust company in which such accounts are insured by the FDIC or the SAIF (to the
limits established by the FDIC or the SAIF, as applicable) and the uninsured
deposits in which accounts are otherwise secured such that, as evidenced by an
Opinion of Counsel delivered to the Trustee and to each Rating Agency, the
Certificateholders have a claim with respect to the funds in such account or a
perfected first priority security interest against any collateral (which shall
be limited to Permitted Investments) securing such funds that is superior to
claims of any other depositors or creditors of the depository institution or
trust company in which such account is maintained, or (iii) a trust account or
accounts maintained with (a) the trust department of a federal or state
chartered depository institution or (b) a trust company, acting in its fiduciary
capacity or (iv) any other account acceptable to each Rating Agency. Eligible
Accounts may bear interest, and may include, if otherwise qualified under this
definition, accounts maintained with the Trustee.

                                       13
<PAGE>

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

         ERISA-Qualifying Underwriting: With respect to any ERISA-Restricted
Certificate, a best efforts or firm commitment underwriting or private placement
that meets the requirements of the Underwriters' Exemption.

         ERISA-Restricted Certificate:  As specified in the Preliminary
Statement.

         Escrow Account: The Eligible Account or Accounts established and
maintained pursuant to Section 3.6(a) hereof.

         Event of Default:  As defined in Section 7.1 hereof.
         Excess Loss: The amount of any (i) Fraud Loss realized after the Fraud
Loss Coverage Termination Date, (ii) Special Hazard Loss realized after the
Special Hazard Coverage Termination Date or (iii) Deficient Valuation realized
after the Bankruptcy Coverage Termination Date.

         Excess Proceeds: With respect to any Liquidated Mortgage Loan, the
amount, if any, by which the sum of any Liquidation Proceeds, Insurance Proceeds
and/or Unanticipated Recoveries in respect of such Mortgage Loan received in the
calendar month in which such Mortgage Loan became a Liquidated Mortgage Loan,
net of any amounts previously reimbursed to the Master Servicer as
Nonrecoverable Advance(s) with respect to such Mortgage Loan pursuant to Section
3.8(a)(iii), exceeds (i) the unpaid principal balance of such Liquidated
Mortgage Loan as of the Due Date in the month in which such Mortgage Loan became
a Liquidated Mortgage Loan plus (ii) accrued interest at the Mortgage Rate from
the Due Date as to which interest was last paid or advanced (and not reimbursed)
to Certificateholders up to the Due Date applicable to the Distribution Date
immediately following the calendar month during which such liquidation occurred.

         Expense Fee Rate: As to each Mortgage Loan, the sum of the related
Master Servicing Fee Rate and the Trustee Fee Rate.

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

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

         FIRREA: The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989.

         First Horizon: First Horizon Home Loan Corporation, a Kansas
corporation and an indirect wholly owned subsidiary of First Horizon National
Corporation, a Tennessee corporation.

                                       14
<PAGE>

         Fitch: Fitch Ratings and its successors and/or assigns. If Fitch is
designated as a Rating Agency in the Preliminary Statement, for purposes of
Section 11.5(b) the address for notices to Fitch shall be Fitch, Inc., One State
Street Plaza, New York, New York 10004, Attention: Residential Mortgage
Surveillance Group, or such other address as Fitch may hereafter furnish to the
Depositor and the Master Servicer.

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

         Fraud Loan: A Liquidated Mortgage Loan as to which a Fraud Loss has
occurred.

         Fraud Losses: Realized Losses on Mortgage Loans as to which a loss is
sustained by reason of a default arising from fraud, dishonesty or
misrepresentation in connection with the related Mortgage Loan, including a loss
by reason of the denial of coverage under any related Primary Insurance Policy
because of such fraud, dishonesty or misrepresentation.

         Fraud Loss Coverage Amount: As of the Closing Date, $9,200,076. As of
any Distribution Date from the first anniversary of the Cut-off Date and prior
to the fifth anniversary of the Cut-off Date, the Fraud Loss Coverage Amount
will equal $4,600,038 minus the aggregate amount of Fraud Losses that would have
been allocated to the Subordinated Certificates in the absence of the Loss
Allocation Limitation since the Cut-off Date. As of any Distribution Date on or
after the earlier of the Cross-over Date or the fifth anniversary of the Cut-off
Date, the Fraud Loss Coverage Amount shall be zero.

         Fraud Loss Coverage Termination Date: The date on which the Fraud Loss
Coverage Amount is reduced to zero.

         FTBNA: First Tennessee Bank National Association, a national banking
association.

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

         Initial Bankruptcy Coverage Amount:  $150,000.

         Initial Component Balance:  Not applicable.

         Initial LIBOR Rate: With respect to the calculation of the initial
Pass-Through Rate for the Class A-1 and Class A-2 Certificates, 3.85% per annum.

         Insurance Policy: With respect to any Mortgage Loan included in the
Trust Fund, any insurance policy, including all riders and endorsements thereto
in effect, including any replacement policy or policies for any Insurance
Policies.

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

                                       15
<PAGE>

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

         Interest Accrual Period: With respect to each Class of Delay
Certificates and any Distribution Date, the calendar month prior to the month of
such Distribution Date. With respect to any Non-Delay Certificates and any
Distribution Date, the one month period commencing on the 25th day of the month
preceding the month in which such Distribution Date occurs and ending on the
24th day of the month in which such Distribution Date occurs.

         Latest Possible Maturity Date: As to each Class of Certificates and
each Lower REMIC Interest, the Distribution Date following the third anniversary
of the scheduled maturity date of the Mortgage Loan having the latest scheduled
maturity date as of the Cut-off Date.

         Lender PMI Mortgage Loan:  Not applicable.

         LIBOR: The London interbank offered rate for one month United States
dollar deposits calculated in the manner described in Section 4.9.

         LIBOR Business Day: Any day on which banks in London, England and The
City of New York are open and conducting transactions in foreign currency and
exchange.

         LIBOR Certificates:  As specified in the Preliminary Statement.

         LIBOR Determination Date: For the LIBOR Certificates, the second LIBOR
Business Day immediately preceding the commencement of each Interest Accrual
Period for each LIBOR Certificate.

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

         Liquidation Proceeds: All cash amounts, other than Insurance Proceeds
and Unanticipated Recoveries, received in connection with the partial or
complete liquidation of defaulted Mortgage Loans, whether through trustee's
sale, foreclosure sale or otherwise or amounts received in connection with any
condemnation or partial release of a Mortgaged Property and any other proceeds
received in connection with an REO Property, less the sum of related
unreimbursed Master Servicing Fees, Servicing Advances and Advances.

         Loan-to-Value Ratio: With respect to any Mortgage Loan and as of any
date of determination, the fraction (expressed as a percentage) the numerator of
which is the principal balance of the related Mortgage Loan at such date of
determination and the denominator of which is the Appraised Value of the related
Mortgaged Property.

         Loss Allocation Limitation:  As defined in Section 4.4(h).

                                       16
<PAGE>

         Lost Mortgage Note: Any Mortgage Note, the original of which was
permanently lost or destroyed and has not been replaced.

         Lower REMIC: The segregated pool of assets consisting of the Trust Fund
but excluding the Retained Yield, the Lower REMIC Interests, the RL Interest,
the RU Interest and the Separate Interest Trust.

         Lower REMIC Interests: The REMIC regular interests, within the meaning
of the REMIC Provisions, issued by the Lower REMIC as set forth in Section 2.7.

         Maintenance: With respect to any Cooperative Unit, the rent paid by the
Mortgagor to the Cooperative Corporation pursuant to the Proprietary Lease.

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

         Master Servicer: First Horizon Home Loan Corporation, a Kansas
corporation, and its successors and assigns, in its capacity as master servicer
hereunder.

         Master Servicer Advance Date: As to any Distribution Date, 1:30 p.m.
Central time on the Business Day immediately preceding such Distribution Date.

         Master Servicing Fee: As to each Mortgage Loan and any Distribution
Date, an amount payable out of each full payment of interest received on such
Mortgage Loan and equal to one-twelfth of the Master Servicing Fee Rate
multiplied by the Stated Principal Balance of such Mortgage Loan as of the Due
Date in the month of such Distribution Date (prior to giving effect to any
Scheduled Payments due on such Mortgage Loan on such Due Date), subject to
reduction as provided in Section 3.14.

         Master Servicing Fee Rate: For each Mortgage Loan a per annum rate
equal to 0.369%.

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

         MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the MERS
System.

         MERS(R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

         MIN: The Mortgage Identification Number for any MERS Mortgage Loan.

         MLPA: The Mortgage Loan Purchase Agreement dated as of October 28,
2005, by and between First Horizon Home Loan Corporation, as seller, and First
Horizon Asset Securities Inc., as purchaser, as related to the transfer, sale
and conveyance of the Mortgage Loans.

                                       17
<PAGE>

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

         Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.6.

         Moody's: Moody's Investors Service, Inc., and its successors and/or
assigns. If Moody's is designated as a Rating Agency in the Preliminary
Statement, for purposes of Section 11.5(b) the address for notices to Moody's
shall be Moody's Investors Service, Inc., 99 Church Street, New York, New York
10007, Attention: Residential Pass-Through Monitoring, or such other address as
Moody's may hereafter furnish to the Depositor or the Master Servicer.

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

         Mortgage File: The mortgage documents listed in Section 2.1(b) hereof
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Trustee to be added to the Mortgage File pursuant to this Agreement.

         Mortgage Loan Schedule: The list of Mortgage Loans (as from time to
time amended by the Master Servicer to reflect the addition of Substitute
Mortgage Loans and the deletion of Deleted Mortgage Loans pursuant to the
provisions of this Agreement) transferred to the Trustee as part of the Trust
Fund and from time to time subject to this Agreement, attached hereto as
Schedule I, setting forth the following information with respect to each
Mortgage Loan:

                (A)  the loan number;

                (B)  the Mortgagor's name and the street address of the
                     Mortgaged Property, including the zip code;

                (C)  the maturity date;

                (D)  the original principal balance;

                (E)  the Cut-off Date Principal Balance;

                (F)  the first payment date of the Mortgage Loan;

                (G)  the Scheduled Payment in effect as of the Cut-off Date;

                (H)  the Loan-to-Value Ratio at origination;

                (I)  a code indicating whether the residential dwelling at the
                     time of origination was represented to be owner-occupied;

                (J)  a code indicating whether the residential dwelling is
                     either (a) a detached single family dwelling (b) a dwelling
                     in a de minimis PUD, (c) a condominium unit or PUD (other
                     than a de minimis PUD), (d) a two-to-four unit residential
                     property or (e) a Cooperative Unit;

                                       18
<PAGE>

                (K)  the Mortgage Rate;

                (L)  the purpose for the Mortgage Loan;

                (M)  the type of documentation program pursuant to which the
                     Mortgage Loan was originated;

                (N)  the Master Servicing Fee for the Mortgage Loan; and

                (O)  a code indicating whether the Mortgage Loan is a MERS
                     Mortgage Loan.

         Such schedule shall also set forth the total of the amounts described
under (4) and (5) above for all of the Mortgage Loans.

         Mortgage Loans: Such of the mortgage loans transferred and assigned to
the Trustee pursuant to the provisions hereof as from time to time are held as a
part of the Trust Fund (including any REO Property), the mortgage loans so held
being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or
other acquisition of title of the related Mortgaged Property.

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

         Mortgage Pool:  The aggregate of the Mortgage Loans identified in the
Mortgage Loan Schedule.

         Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time, net of any insurance premium charged by the mortgagee to
obtain or maintain any Primary Insurance Policy.

         Mortgaged Property: The underlying property securing a Mortgage Loan,
which, with respect to a Cooperative Loan, is the related Coop Shares and
Proprietary Lease.

         Mortgagor:  The obligor(s) on a Mortgage Note.

         NAS Certificates:  As specified in the Preliminary Statement.

         NAS Distribution Percentage: 0% through the Distribution Date in
October 2010; 30% of the applicable NAS Percentage thereafter through the
Distribution Date in October 2011; 40% of the applicable NAS Percentage
thereafter through the Distribution Date in October 2012; 60% of the applicable
NAS Percentage thereafter through the Distribution Date in October 2013; 80% of
the applicable NAS Percentage thereafter through the Distribution Date in
October 2014; and 100% of the applicable NAS Percentage thereafter.

                                       19
<PAGE>

         NAS Percentage: 0% through the Distribution Date in October 2010, and
for any Distribution Date thereafter, the lesser of (x) 100% and (y) the
percentage obtained by dividing (1) the aggregate Class Certificate Balance of
the NAS Certificates immediately preceding such Distribution Date by (2) the
aggregate Class Certificate Balance of all Classes of Senior Certificates (other
than the Notional Amount Certificates and the Class A-PO Certificates)
immediately prior to such Distribution Date.

         NAS Principal Distribution Amount: For any Distribution Date, the total
of the amounts described in clauses (1) through (5) of the definition of Senior
Optimal Principal Amount for such date multiplied by the NAS Distribution
Percentage for such date.

         National Cost of Funds Index: The National Monthly Median Cost of Funds
Ratio to SAIF-Insured Institutions published by the Office of Thrift
Supervision.

         Net Interest Shortfall: For any Distribution Date, the sum of (a) the
amount of interest which would otherwise have been received for any Mortgage
Loan that was the subject of (x) a Relief Act Reduction or (y) a Special Hazard
Loss, Fraud Loss, or Deficient Valuation, after the exhaustion of the respective
amounts of coverage for those types of losses provided by the Subordinated
Certificates; and (b) any Net Prepayment Interest Shortfalls.

         Net Prepayment Interest Shortfalls: As to any Distribution Date, the
amount by which the aggregate of Prepayment Interest Shortfalls in respect of
the Mortgage Loans during the related Prepayment Period exceeds an amount equal
to the Compensating Interest paid in respect of such Mortgage Loans, if any, for
such Distribution Date.

         Non-Delay Certificates:  As specified in the Preliminary Statement.

         Non-Discount Mortgage Loan: Any Mortgage Loan with an Adjusted Net
Mortgage Rate that is equal to or greater than 5.50%.

         Non-Excess Loss:  Any Realized Loss other than an Excess Loss.

         Non-PO Percentage: (a) With respect to a Discount Mortgage Loan, the
fraction, expressed as a percentage, equal to the Adjusted Net Mortgage Rate
divided by 5.50%, and (b) with respect to each Non-Discount Mortgage Loan, 100%.

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

         Notice of Final Distribution: The notice to be provided pursuant to
Section 9.2 to the effect that final distribution on any of the Certificates
shall be made only upon presentation and surrender thereof.

         Notional Amount:  As specified in the Preliminary Statement.

         Notional Amount Component: Not applicable.

                                       20
<PAGE>

         Notional Amount Certificates:  As specified in the Preliminary
Statement.

         Novation Agreements:  Not applicable.

         Offered Certificates:  As specified in the Preliminary Statement.

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

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

         Optional Termination: The termination of the trust created hereunder in
connection with the purchase of the Mortgage Loans pursuant to Section 9.1(a)
hereof.

         Original Mortgage Loan: The Mortgage Loan refinanced in connection with
the origination of a Refinancing Mortgage Loan.

         Original Subordinated Principal Balance: The aggregate of the Class
Certificate Balances of the Subordinated Certificates as of the Closing Date.

         OTS:  The Office of Thrift Supervision.

         Outside Reference Date:  Not applicable.

         Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except:

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

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

         Outstanding Mortgage Loan: As of any Due Date, a Mortgage Loan with a
Stated Principal Balance greater than zero which was not the subject of a
Principal Prepayment in Full prior to such Due Date and which did not become a
Liquidated Mortgage Loan prior to such Due Date.

                                       21
<PAGE>

         Ownership Interest: As to any Residual Certificate, any ownership
interest in such Certificate including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial.

         Pass-Through Rate: For any interest bearing Class of Certificates, the
per annum rate set forth or calculated in the manner described in the
Preliminary Statement.

         Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face thereof or equal to the
percentage obtained by dividing the Denomination of such Certificate by the
aggregate of the Denominations of all Certificates of the same Class.

         Permitted Investments:  At any time, any one or more of the following
obligations and securities:

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

                (ii)  general obligations of or obligations guaranteed by any
                      state of the United States or the District of Columbia
                      receiving the highest long-term debt rating of each Rating
                      Agency;

                (iii) commercial or finance company paper which is then
                      receiving the highest commercial or finance company paper
                      rating of each Rating Agency;

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

                (v)   demand or time deposits or certificates of deposit issued
                      by any bank or trust company or savings institution to the
                      extent that such deposits are fully insured by the FDIC
                      and receiving the highest short-term debt rating of each
                      Rating Agency;

                (vi)  guaranteed reinvestment agreements issued by any bank,
                      insurance company or other corporation and receiving the
                      highest short-term debt rating of each Rating Agency and
                      containing, at the time of the issuance of such
                      agreements, such terms and conditions as will not result
                      in the downgrading or withdrawal of the rating then
                      assigned to the Certificates by either Rating Agency;

                                       22
<PAGE>

                (vii)  repurchase obligations with respect to any security
                       described in clauses (i) and (ii) above, in either case
                       entered into with a depository institution or trust
                       company (acting as principal) described in clause (iv)
                       above;

                (viii) securities (other than stripped bonds, stripped coupons
                       or instruments sold at a purchase price in excess of 115%
                       of the face amount thereof) bearing interest or sold at a
                       discount issued by any corporation incorporated under the
                       laws of the United States or any state thereof which, at
                       the time of such investment, have one of the two highest
                       ratings of each Rating Agency (except if the Rating
                       Agency is Moody's or S&P, such rating shall be the
                       highest commercial paper rating of Moody's or S&P, as
                       applicable, for any such securities);

                (ix)   units of a taxable money-market portfolio having the
                       highest rating assigned by each Rating Agency (except if
                       Fitch is a Rating Agency and has not rated the portfolio,
                       the highest rating assigned by Moody's) and restricted to
                       obligations issued or guaranteed by the United States of
                       America or entities whose obligations are backed by the
                       full faith and credit of the United States of America and
                       repurchase agreements collateralized by such obligations;
                       and

                (x)    such other investments bearing interest or sold at a
                       discount acceptable to each Rating Agency as will not
                       result in the downgrading or withdrawal of the rating
                       then assigned to the Certificates by either Rating
                       Agency, as evidenced by a signed writing delivered by
                       each Rating Agency;

provided that no such instrument shall be a Permitted Investment if such
instrument evidences the right to receive interest only payments with respect to
the obligations underlying such instrument.

         Permitted Transferee: Any person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(l) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) an "electing large
partnership" as defined in section 775 of the Code, (vi) a Person that is not
(a) a citizen or resident of the United States, (b) a corporation, partnership,
or other entity created or organized in or under the laws of the United States,
any state thereof or the District of Columbia, (c) an estate whose income from
sources without the United States is includible in gross income for United
States federal income tax purposes regardless of its connection with the conduct
of a trade or business within the United States or (d) a trust if a court within
the United States is able to exercise primary supervision over the
administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust, unless such Person
has furnished the transferor and the Trustee with a duly completed Internal
Revenue Service Form W-8ECI or any applicable successor form, and (vii) any

                                       23
<PAGE>

other Person so designated by the Depositor based upon an Opinion of Counsel
that the Transfer of an Ownership Interest in a Residual Certificate to such
Person may cause any REMIC created hereunder to fail to qualify as a REMIC at
any time that the Certificates are outstanding; provided, however, that if a
person is classified as a partnership under the Code, such person shall only be
a Permitted Transferee if all of its beneficial owners are described in
subclauses (a), (b), (c) or (d) of clause (vi) and the governing documents of
such person prohibits a transfer of any interest in such person to any person
described in clause (vi). The terms "United States," "State" and "International
Organization" shall have the meanings set forth in section 7701 of the Code or
successor provisions. A corporation will not be treated as an instrumentality of
the United States or of any State or political subdivision thereof for these
purposes if all of its activities are subject to tax and, with the exception of
the Federal Home Loan Mortgage Corporation, a majority of its board of directors
is not selected by such government unit.

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

         Physical Certificates:  As specified in the Preliminary Statement.

         Planned Principal Classes:  Not applicable.

         PO Percentage: (a) With respect to any Discount Mortgage Loan, a
fraction, expressed as a percentage, equal to (5.50%-the Adjusted Net Mortgage
Rate) divided by 5.50%, and (b) with respect to any Non-Discount Mortgage Loan,
0%.

         Pool Principal Balance: With respect to any Distribution Date, the
aggregate of the Stated Principal Balances of the Mortgage Loans which were
Outstanding Mortgage Loans on the Due Date in the month preceding the month of
such Distribution Date, and for the first Distribution Date, as of the Closing
Date, less any Principal Prepayments received on or after such Due Date and
distributed to Certificateholders on the prior Distribution Date.

         Prepayment Interest Excess: As to any Principal Prepayment received by
the Master Servicer from the first day through the fifteenth day of any calendar
month (other than the calendar month in which the Cut-off Date occurs), all
amounts paid by the related Mortgagor in respect of interest on such Principal
Prepayment. All Prepayment Interest Excess shall be paid to the Master Servicer
as additional master servicing compensation.

         Prepayment Interest Shortfall: As to any Distribution Date, Mortgage
Loan and Principal Prepayment received (a) during the period from the sixteenth
day of the month preceding the month of such Distribution Date (or, in the case
of the first Distribution Date, from the Cut-off Date) through the last day of
such month, in the case of a Principal Prepayment in Full, or (b) during the
month preceding the month of such Distribution Date, in the case of a partial
Principal Prepayment, the amount, if any, by which one month's interest at the
related Adjusted Mortgage Rate on such Principal Prepayment exceeds the amount
of interest actually paid by the Mortgagor in connection with such Principal
Prepayment.

                                       24
<PAGE>

         Prepayment Period: (a) With respect to any Principal Prepayments in
Full and any Distribution Date, the period from the sixteenth day of the month
preceding the month of such Distribution Date (or, in the case of the first
Distribution Date, from the Cut-off Date) through the fifteenth day of the month
of such Distribution Date, and (b) with respect to any other Principal
Prepayments and any Distribution Date, the month preceding the month of such
Distribution Date.

         Primary Insurance Policy: Each policy of primary mortgage guaranty
insurance or any replacement policy therefor with respect to any Mortgage Loan.

         Principal Balance Schedules:  Not applicable.

         Principal Only Certificates:  As specified in the Preliminary
Statement.

         Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment. Partial
Principal Prepayments shall be applied by the Master Servicer in accordance with
the terms of the related Mortgage Note.

         Principal Prepayment in Full: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan.

         Private Certificates:  As specified in the Preliminary Statement.

         Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Coop Shares.

         PUD:  Planned Unit Development.

         Purchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to Section 2.2 or 2.3 hereof or purchased at
the option of the Master Servicer pursuant to Section 3.11, an amount equal to
the sum of (i) 100% of the unpaid principal balance of the Mortgage Loan on the
date of such purchase, (ii) accrued interest thereon at the applicable Mortgage
Rate (or at the applicable Adjusted Mortgage Rate if the purchaser is the Master
Servicer) from the date through which interest was last paid by the Mortgagor to
the Due Date in the month in which the Purchase Price is to be distributed to
Certificateholders, and (iii) any costs and damages incurred by the Trust in
connection with the noncompliance of such Mortgage Loan with any specifically
applicable predatory or abusive lending law.

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

                                       25
<PAGE>

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

         Realized Loss: With respect to each Liquidated Mortgage Loan, an amount
(not less than zero or more than the Stated Principal Balance of the Mortgage
Loan) as of the date of such liquidation, equal to (i) the Stated Principal
Balance of the Liquidated Mortgage Loan as of the date of such liquidation, plus
(ii) interest at the Adjusted Net Mortgage Rate from the Due Date as to which
interest was last paid or advanced (and not reimbursed) to Certificateholders up
to the Due Date in the month in which Liquidation Proceeds are required to be
distributed on the Stated Principal Balance of such Liquidated Mortgage Loan
from time to time, minus (iii) any Liquidation Proceeds, Insurance Proceeds
and/or Unanticipated Recoveries received during the month in which such
liquidation occurred (or during the calendar month preceding the related
Distribution Date, as applicable), to the extent applied as recoveries of
interest at the Adjusted Net Mortgage Rate and to principal of the Liquidated
Mortgage Loan. With respect to each Mortgage Loan, other than a Liquidated
Mortgage Loan, which has become the subject of a Deficient Valuation, if the
principal amount due under the related Mortgage Note has been reduced, the
difference between the principal balance of the Mortgage Loan outstanding
immediately prior to such Deficient Valuation and the principal balance of the
Mortgage Loan as reduced by the Deficient Valuation.

         Recognition Agreement: With respect to any Cooperative Loan, an
agreement between the Cooperative Corporation and the originator of such
Mortgage Loan which establishes the rights of such originator in the Cooperative
Property.

         Record Date: With respect to any Distribution Date, the close of
business on the last Business Day of the month preceding the month in which such
Distribution Date occurs.

         Reference Bank: A leading bank with an established place of business in
London engaged in transactions in Eurodollar deposits in the international
Eurocurrency market, not controlled by, or under the common control with, the
Trustee.

         Refinancing Mortgage Loan: Any Mortgage Loan originated in connection
with the refinancing of an existing mortgage loan.

         Regular Certificates:  As specified in the Preliminary Statement.

         Relief Act: The Servicemembers Civil Relief Act or any similar state or
local legislation or regulations.

         Relief Act Reductions: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
collectible thereon for the most recently ended calendar month as a result of
the application of the Relief Act, the amount, if any, by which interest
collectible on such Mortgage Loan for the most recently ended calendar month is
less than interest accrued thereon for such month pursuant to the Mortgage Note.

                                       26
<PAGE>

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

         REMIC Change of Law: Any proposed, temporary or final regulation,
revenue ruling, revenue procedure or other official announcement or
interpretation relating to REMICs and the REMIC Provisions issued after the
Closing Date.

         REMIC Pool:  Either of the Lower REMIC or Upper REMIC.

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

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

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

         Required Coupon:  5.875% per annum.

         Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under this
Agreement.

         Required Recordation States: The states of Florida, Maryland and
Mississippi.

         Residual Certificates:  As specified in the Preliminary Statement.

         Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, the Secretary, any Assistant Secretary,
any Trust Officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
having direct responsibility for the administration of this Agreement and also
to whom, with respect to a particular matter, such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

         Retail/Lottery Certificates:  Not applicable.

         Retained Yield: As to each Mortgage Loan and any Distribution Date, (i)
an amount payable to First Horizon Home Loan Corporation out of each full
payment of interest received on such Mortgage Loan and equal to one-twelfth of
the Retained Yield Rate multiplied by the Stated Principal Balance of such
Mortgage Loan as of the Due Date in the month of such Distribution Date (prior
to giving effect to any Scheduled Payments due on such Mortgage Loan on such Due
Date) and (ii) each prepayment penalty received, if any.

                                       27
<PAGE>

         Retained Yield Rate: For any Non-Discount Mortgage Loan, a per annum
rate equal to the excess of (a) the applicable Mortgage Rate over (b) the
Required Coupon. For any Discount Mortgage Loan, 0%.

         RL Interest: The REMIC residual interest, within the meaning of the
REMIC Provisions, issued by the Lower REMIC, which shall be represented by the
Class A-R Certificate.

         RU Interest: The REMIC residual interest, within the meaning of the
REMIC Provisions, issued by the Upper REMIC, which shall be represented by the
Class A-R Certificate.

         Scheduled Balances:  Not applicable.

         Scheduled Balance Certificates:  Not applicable.

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

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

         Security Agreement: The security agreement with respect to a
Cooperative Loan.

         Seller: First Horizon Home Loan Corporation, a Kansas corporation, and
its successors and assigns, in its capacity as seller of the Mortgage Loans
pursuant to the MLPA.

         Senior Certificates:  As specified in the Preliminary Statement.

         Senior Final Distribution Date: For the Senior Certificates, the
Distribution Date on which the Class Certificate Balance of each Class of Senior
Certificates has been reduced to zero.

         Senior Optimal Principal Amount: With respect to each Distribution
Date, an amount equal to the sum of:

              (1) the Senior Percentage of the applicable Non-PO Percentage of
Scheduled Payments of principal due on each Mortgage Loan on the first day of
the month in which the Distribution Date occurs, as specified in the
amortization schedule at the time applicable thereto after adjustment for
previous principal prepayments and the principal portion of Debt Service
Reductions after the Bankruptcy Loss Coverage Amount has been reduced to zero,
but before any adjustment to such amortization schedule by reason of any other
bankruptcy or similar proceeding or any moratorium or similar waiver or grace
period;

              (2) the Senior Prepayment Percentage of the applicable Non-PO
Percentage of the Stated Principal Balance of each Mortgage Loan which was the
subject of a Principal Prepayment in Full received by the Master Servicer during
the applicable Prepayment Period;

                                       28
<PAGE>

              (3) the Senior Prepayment Percentage of the applicable Non-PO
Percentage of (a) all partial Principal Prepayments in respect of each Mortgage
Loan received during the applicable Prepayment Period and (b) all Unanticipated
Recoveries in respect of each Mortgage Loan received during the calendar month
preceding such Distribution Date;

              (4)    the lesser of:

              (a)    the Senior Prepayment Percentage of the sum of (x) the
                     applicable Non-PO Percentage of the Liquidation Proceeds
                     allocable to principal on each Mortgage Loan which became a
                     Liquidated Mortgage Loan during the related Prepayment
                     Period, other than Mortgage Loans described in clause (y),
                     and (y) the applicable Non-PO Percentage of the Stated
                     Principal Balance of each Mortgage Loan that was purchased
                     by a private mortgage insurer during the related Prepayment
                     Period as an alternative to paying a claim under the
                     related Insurance Policy; and

              (b)(i) the Senior Percentage of the sum of (x) the applicable
                     Non-PO Percentage of the Stated Principal Balance of each
                     Mortgage Loan which became a Liquidated Mortgage Loan
                     during the related Prepayment Period, other than Mortgage
                     Loans described in clause (y), and (y) the applicable
                     Non-PO Percentage of the Stated Principal Balance of each
                     Mortgage Loan that was purchased by a private mortgage
                     insurer during the related Prepayment Period as an
                     alternative to paying a claim under the related Insurance
                     Policy minus (ii) the applicable Non-PO Percentage of the
                     Senior Percentage of the principal portion of Excess Losses
                     (other than Debt Service Reductions) incurred during the
                     related Prepayment Period; and

              (5) the Senior Prepayment Percentage of the sum of (a) the
applicable Non-PO Percentage of the Stated Principal Balance of each Mortgage
Loan which was repurchased by the seller in connection with such Distribution
Date and (b) the difference, if any, between the applicable Non-PO Percentage of
the Stated Principal Balance of each Mortgage Loan that has been replaced by the
seller with a Substitute Mortgage Loan pursuant to this Agreement in connection
with such Distribution Date and the Stated Principal Balance of such Substitute
Mortgage Loan.

         Senior Percentage: On any Distribution Date, the lesser of 100% and the
percentage (carried to six places rounded up) obtained by dividing the aggregate
Class Certificate Balances of all Classes of Senior Certificates (other than the
Notional Amount Certificates and the Class A-PO Certificates) immediately
preceding such Distribution Date by the Pool Principal Balance (excluding the
aggregate of the applicable PO Percentage of the principal balance of each
Discount Mortgage Loan) for the immediately preceding Distribution Date.

         Senior Prepayment Percentage: On any Distribution Date occurring during
the periods set forth below, the Senior Prepayment Percentages described below:

                                       29
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Period (Dates Inclusive)           Senior Prepayment Percentage
-----------------------------------------------------------------------------------------------------
<S>                                <C>
November 2005 - October 2010       100%
-----------------------------------------------------------------------------------------------------
November 2010 - October 2011       The Senior Percentage plus 70% of the Subordinated Percentage
-----------------------------------------------------------------------------------------------------
November 2011 - October 2012       The Senior Percentage plus 60% of the Subordinated Percentage
-----------------------------------------------------------------------------------------------------
November 2012 - October 2013       The Senior Percentage plus 40% of the Subordinated Percentage
-----------------------------------------------------------------------------------------------------
November 2013 - October 2014       The Senior Percentage plus 20% of the Subordinated Percentage
-----------------------------------------------------------------------------------------------------
November 2014 and thereafter       The Senior Percentage
-----------------------------------------------------------------------------------------------------
</TABLE>

         Notwithstanding the foregoing, if the Senior Percentage on any
Distribution Date exceeds the initial Senior Percentage, the Senior Prepayment
Percentage for that Distribution Date will equal 100%.

         In addition, no reduction of the Senior Prepayment Percentage below the
level in effect for the most recent prior period specified in the table above
shall be effective on any Distribution Date unless both of the following
step-down conditions are satisfied as of the last day of the month preceding
such Distribution Date:

                  (1) the aggregate Stated Principal Balance of Mortgage Loans
delinquent 60 days or more (including for this purpose any Mortgage Loans in
foreclosure or subject to bankruptcy proceedings and Mortgage Loans with respect
to which the related Mortgaged Property, including REO Property, has been
acquired by the Trust) does not exceed 50% of the aggregate Class Certificate
Balances of the Subordinated Certificates as of such date; and

                  (2) cumulative Realized Losses do not exceed:

                           (a)      30% of the Original Subordinated Principal
                                    Balance if such Distribution Date occurs
                                    between and including November 2010 and
                                    October 2011;

                           (b)      35% of the Original Subordinated Principal
                                    Balance if such Distribution Date occurs
                                    between and including November 2011 and
                                    October 2012;

                           (c)      40% of the Original Subordinated Principal
                                    Balance if such Distribution Date occurs
                                    between and including November 2012 and
                                    October 2013;

                           (d)      45% of the Original Subordinated Principal
                                    Balance if such Distribution Date occurs
                                    between and including November 2013 and
                                    October 2014; and

                                       30
<PAGE>

                           (e)      50% of the Original Subordinated Principal
                                    Balance if such Distribution Date occurs
                                    during or after November 2014.

         Senior Support Mezzanine Certificates:  As specified in the Preliminary
Statement.

         Separate Interest Trust: A trust created pursuant to Section 4.8(a) of
this Agreement which is not an asset of any REMIC created hereunder.

         Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration and protection of a Mortgaged Property, (ii) any
expenses reimbursable to the Master Servicer pursuant to Section 3.11 and any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Section 3.9.

         Servicing Agreement: The servicing agreement, dated as of November 26,
2002 by and between First Horizon Asset Securities Inc. and its assigns, as
owner, and First Tennessee Mortgage Services, Inc., as servicer.

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

         Servicing Rights Transfer and Subservicing Agreement: The servicing
rights transfer and subservicing agreement, dated as of November 26, 2002, by
and between First Horizon Home Loan Corporation, as transferor and subservicer,
and First Tennessee Mortgage Services, Inc., as transferee and servicer.

         Special Hazard Coverage Termination Date: The date on which the Special
Hazard Loss Coverage Amount is reduced to zero.

         Special Hazard Loss: Any Realized Loss suffered by a Mortgaged Property
on account of direct physical loss but not including (i) any loss of a type
covered by a hazard insurance policy or a flood insurance policy required to be
maintained with respect to such Mortgaged Property pursuant to Section 3.9 to
the extent of the amount of such loss covered thereby, or (ii) any loss caused
by or resulting from:

                  (1)    normal wear and tear;

                  (2)    fraud, conversion or other dishonest act on the part
                         of the Trustee, the Master Servicer or any of their
                         agents or employees (without regard to any portion of
                         the loss not covered by any errors and omissions
                         policy);

                  (3)    errors in design, faulty workmanship or faulty
                         materials, unless the collapse of the property or a
                         part thereof ensues and then only for the ensuing
                         loss;

                                       31
<PAGE>

                  (4)    nuclear or chemical reaction or nuclear radiation or
                         radioactive or chemical contamination, all whether
                         controlled or uncontrolled, and whether such loss be
                         direct or indirect, proximate or remote or be in
                         whole or in part caused by, contributed to or
                         aggravated by a peril covered by the definition of
                         the term "Special Hazard Loss";

                  (5)    hostile or warlike action in time of peace and war,
                         including action in hindering, combating or defending
                         against an actual, impending or expected attack:

                  (i)    by any government or sovereign power, de jure or de
                         facto, or by any authority maintaining or using
                         military, naval or air forces;

                  (ii)   by military, naval or air forces or

                  (iii)  by an agent of any such government, power, authority
                         or forces;

                  (6)    any weapon of war employing nuclear fission, fusion
                         or other radioactive force, whether in time of peace
                         or war; or

                  (7)    insurrection, rebellion, revolution, civil war,
                         usurped power or action taken by governmental
                         authority in hindering, combating or defending
                         against such an occurrence, seizure or destruction
                         under quarantine or customs regulations, confiscation
                         by order of any government or public authority or
                         risks of contraband or illegal transportation or
                         trade.

         Special Hazard Loss Coverage Amount: Upon the initial issuance of the
Certificates, $4,600,038. As of any Distribution Date, the Special Hazard Loss
Coverage Amount will equal the greater of

                  (a)    1.00% (or if greater than 1.00%, the highest percentage
of Mortgage Loans by principal balance secured by Mortgaged Properties in any
single California zip code) of the outstanding principal balance of all the
Mortgage Loans as of the related Determination Date; and

                  (b)    twice the outstanding principal balance of the Mortgage
Loan which has the largest outstanding principal balance as of the related
Determination Date,

less, in each case, the aggregate amount of Special Hazard Losses that would
have been previously allocated to the Subordinated Certificates in the absence
of the Loss Allocation Limitation. As of any Distribution Date on or after the
Cross-over Date, the Special Hazard Loss Coverage Amount will be zero.

         Special Hazard Mortgage Loan: A Liquidated Mortgage Loan as to which a
Special Hazard Loss has occurred.

         S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.,
and its successors and/or assigns. If S&P is designated as a Rating Agency in
the Preliminary Statement, for purposes of Section 11.5(b) the address for
notices to S&P shall be Standard & Poor's, 55 Water Street, 41st Floor, New
York, New York 10041, Attention: Mortgage Surveillance Monitoring, or such other
address as S&P may hereafter furnish to the Depositor and the Master Servicer.

                                       32
<PAGE>

         Startup Day:  The Closing Date.

         Stated Principal Balance: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date as specified
in the amortization schedule at the time relating thereto (before any adjustment
to such amortization schedule by reason of any moratorium or similar waiver or
grace period) after giving effect to any previous partial Principal Prepayments
and Liquidation Proceeds allocable to principal (other than with respect to any
Liquidated Mortgage Loan) and to the payment of principal due on such Due Date
and irrespective of any delinquency in payment by the related Mortgagor.

         Streamlined Documentation Mortgage Loan: Any Mortgage Loan originated
pursuant to the Seller's Streamlined Loan Documentation Program then in effect.

         Subordinated Certificates:  As specified in the Preliminary Statement.

         Subordinated Certificate Writedown Amount: As of any Distribution Date,
the amount by which (a) the sum of the Class Certificate Balances of all the
Certificates, after giving effect to the distribution of principal and the
allocation of Realized Losses in reduction of the Class Certificate Balances of
all the Certificates on such Distribution Date, exceeds (b) the Pool Principal
Balance on the first day of the month of such Distribution Date less any
Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has
been reduced to zero.

         Subordinated Optimal Principal Amount: With respect to each
Distribution Date, an amount equal to the sum of the following (but in no event
greater than the aggregate Class Certificate Balances of the Subordinated
Certificates immediately prior to such Distribution Date):

                  (1) the Subordinated Percentage of the applicable Non-PO
Percentage of all Scheduled Payments of principal due on each outstanding
Mortgage Loan on the first day of the month in which the Distribution Date
occurs, as specified in the amortization schedule at the time applicable
thereto, after adjustment for previous principal prepayments and the principal
portion of Debt Service Reductions after the Bankruptcy Loss Coverage Amount has
been reduced to zero, but before any adjustment to such amortization schedule by
reason of any other bankruptcy or similar proceeding or any moratorium or
similar waiver or grace period;

                  (2) the Subordinated Prepayment Percentage of the applicable
Non-PO Percentage of the Stated Principal Balance of each Mortgage Loan which
was the subject of a Principal Prepayment in Full received by the Master
Servicer during the related Prepayment Period;

                  (3) the Subordinated Prepayment Percentage of the applicable
Non-PO Percentage of the sum of (a) all partial Principal Prepayments received
in respect of each Mortgage Loan during the related Prepayment Period, (b) all
Unanticipated Recoveries received in respect of each Mortgage Loan during the
calendar month prior to such Distribution Date, and (c) on the Senior Final
Distribution Date, 100% of any Senior Optimal Principal Amount remaining
undistributed on such date;

                                       33
<PAGE>

                  (4) the amount, if any, by which the sum of (a) the applicable
Non-PO Percentage of the net Liquidation Proceeds allocable to principal
received during the related Prepayment Period in respect of each Liquidated
Mortgage Loan, other than Mortgage Loans described in clause (b), and (b) the
applicable Non-PO Percentage of the Stated Principal Balance of each Mortgage
Loan that was purchased by a private mortgage insurer during the related
Prepayment Period as an alternative to paying a claim under the related
Insurance Policy exceeds (c) the sum of the amounts distributable to the Senior
Certificateholders (other than the holders of the Class A-PO Certificates) under
clause (4) of the definition of Senior Optimal Principal Amount on such
Distribution Date; and

                  (5) the Subordinated Prepayment Percentage of the sum of (a)
the applicable Non-PO Percentage of the Stated Principal Balance of each
Mortgage Loan which was repurchased by the seller in connection with such
Distribution Date and (b) the difference, if any, between the applicable Non-PO
Percentage of the Stated Principal Balance of each Mortgage Loan that has been
replaced by the seller with a Substitute Mortgage Loan pursuant to this
Agreement in connection with such Distribution Date and the Stated Principal
Balance of each such Substitute Mortgage Loan.

         Subordinated Percentage:  For any Distribution Date, 100% minus the
Senior Percentage.

         Subordinated Prepayment Percentage: For any Distribution Date, 100%
minus the Senior Prepayment Percentage.

         Subservicer: Any person to whom the Master Servicer has contracted for
the servicing of all or a portion of the Mortgage Loans pursuant to Section 3.2
hereof.

         Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit L, (i)
have a Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
more than 10% less than the Stated Principal Balance of the Deleted Mortgage
Loan; (ii) have an Adjusted Net Mortgage Rate not lower than the lower of (a)
the Adjusted Net Mortgage Rate of the Deleted Mortgage Loan or (b) 5.50%,
provided that the Master Servicing Fee for the Substitute Mortgage Loan shall be
equal to or greater than that of the Deleted Mortgage Loan; (iii) be accruing
interest at a rate no lower than and not more than 1% per annum higher than,
that of the Deleted Mortgage Loan; (iv) have a Loan-to-Value Ratio no higher
than that of the Deleted Mortgage Loan; (v) have a remaining term to maturity no
greater than (and not more than one year less than that of) the Deleted Mortgage
Loan; (vi) not be a Cooperative Loan unless the Deleted Mortgage Loan was a
Cooperative Loan; and (vii) comply with each representation and warranty set
forth in Section 2.3 hereof.

         Substitution Adjustment Amount: The meaning ascribed to such term
pursuant to Section 2.3.

         Super Senior Certificates: As specified in the Preliminary Statement.

                                       34
<PAGE>

         Support Classes: Not applicable.

         Targeted Principal Classes: Not applicable.

         Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulation ss. 1.860F-4(d) and Treasury
regulation ss. 301.6231(a)(7)-1. Initially, the Tax Matters Person shall be the
Trustee.

         Tax Matters Person Certificate: The Class A-R Certificates with a
Denomination of $0.01.

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

         Trust Fund: The corpus of the trust created hereunder consisting of (i)
the Mortgage Loans and all interest and principal received on or with respect
thereto after the Cut-off Date to the extent not applied in computing the
Cut-off Date Principal Balance thereof; (ii) all of the Depositor's rights as
purchaser under the MLPA; (iii) the Certificate Account and the Distribution
Account and all amounts deposited therein pursuant to the applicable provisions
of this Agreement; (iv) property that secured a Mortgage Loan and has been
acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; and (v) all
proceeds of the conversion, voluntary or involuntary, of any of the foregoing;
provided that the Trust Fund shall exclude the Retained Yield.

         Trustee: The Bank of New York and its successors and, if a successor
trustee is appointed hereunder, such successor.

         Trustee Fee: As to any Distribution Date, an amount equal to
one-twelfth of the Trustee Fee Rate multiplied by the Pool Principal Balance
with respect to such Distribution Date.

         Trustee Fee Rate: With respect to each Mortgage Loan, the per annum
rate agreed upon in writing on or prior to the Closing Date by the Trustee and
the Depositor.

         Unanticipated Recovery:  As defined in Section 4.2(f).

         Underwriters:  As specified in the Preliminary Statement.

         Underwriters' Exemption: An individual administrative exemption granted
by the U.S. Department of Labor to each Underwriter providing exceptions from
some of the prohibited transaction rules of ERISA with respect to the initial
purchase, the holding and the subsequent resale by employee benefit plans in
certificates in pass-through trusts having assets and meeting conditions
described therein, as amended by Prohibited Transaction Exemption 2000-58 (65
Fed. Reg. 67765, November 13, 2000), as amended, and Prohibited Transaction
Exemption 2002-41 (67 Fed. Reg. 54487, August 22, 2002), as amended (or any
successor thereto), or any substantially similar administrative exemption
granted by the U.S. Department of Labor.

         Upper REMIC: The segregated pool of assets consisting of the Lower
REMIC Interests.

                                       35
<PAGE>

         Voting Rights: The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. As of any date of
determination, (a) 98% of all Voting Rights will be allocated among all Holders
of the Certificates, other than the Notional Amount Certificates and the
Residual Certificates, in proportion to their then outstanding Class Certificate
Balance; and (b) 1.0% of all Voting Rights will be allocated among the Holders
of the Notional Amount Certificates, in proportion to their respective Notional
Amounts; and (c) 1.0% of all Voting Rights will be allocated to the Residual
Certificates (such Voting Rights to be allocated among the Holders of
Certificates of such Class in accordance with their respective Percentage
Interests).

         Yield Supplement Amount: For any Distribution Date on or prior to the
Corridor Contract Termination Date on which the LIBOR exceeds 4.800%, an amount
equal to interest for the related Interest Accrual Period on the lesser of (a)
the Class Certificate Balance of the Class A-1 Certificates immediately prior to
such Distribution Date and (b) the Corridor Contract Notional Balance for such
Distribution Date at a rate equal to the excess of (i) the lesser of LIBOR and
8.800% over (ii) 4.800%.

                                    ARTICLE II
                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

              SECTION 2.1 Conveyance of Mortgage Loans.

         (a)  The Depositor, concurrently with the execution and delivery
              hereof, hereby sells, transfers, assigns, sets over and otherwise
              conveys to the Trustee for the benefit of the Certificateholders,
              without recourse, all the right, title and interest of the
              Depositor in and to the Trust Fund together with (i) the
              Depositor's right to (A) require the Seller to cure any breach of
              a representation or warranty made by the Seller pursuant to the
              MLPA, or (B) repurchase or substitute for any affected Mortgage
              Loan in accordance herewith, and (ii) all right, title and
              interest of the Depositor in, to and under the Servicing
              Agreement, which right has been assigned to the Depositor pursuant
              to the MLPA.

         (b)  In connection with the transfer and assignment set forth in clause
              (a) above, the Depositor has delivered or caused to be delivered
              to the Trustee or the Custodian on its behalf (or, in the case of
              the Delay Delivery Mortgage Loans, will deliver or cause to be
              delivered to the Trustee or the Custodian on its behalf within
              thirty (30) days following the Closing Date) for the benefit of
              the Certificateholders the following documents or instruments with
              respect to each Mortgage Loan so assigned:

               (i)   (A) the original Mortgage Note endorsed by manual or
                     facsimile signature in blank in the following form: "Pay to
                     the order of ________________, without recourse," with all
                     intervening endorsements showing a complete chain of
                     endorsement from the originator to the Person endorsing the
                     Mortgage Note (each such endorsement being sufficient to
                     transfer all right, title and interest of the party so
                     endorsing, as noteholder or assignee thereof, in and to
                     that Mortgage Note); or

                     (B) with respect to any Lost Mortgage Note, a lost note
                     affidavit from the Seller stating that the original
                     Mortgage Note was lost or destroyed, together with a copy
                     of such Mortgage Note;

               (ii)  except as provided below and for each Mortgage Loan that is
                     not a MERS Mortgage Loan, the original recorded Mortgage or
                     a copy of such Mortgage certified by the Seller as being a
                     true and complete copy of the Mortgage, and in the case of
                     each MERS Mortgage Loan, the original recorded Mortgage,
                     noting the presence of the MIN of the Mortgage Loans and
                     either language indicating that the Mortgage Loan is a MOM
                     Loan if the Mortgage Loan is a MOM Loan or if the Mortgage
                     Loan was not a MOM Loan at origination, the original
                     Mortgage and the assignment thereof to MERS, with evidence
                     of recording indicated thereon, or a copy of the Mortgage
                     certified by the Seller as being a true and complete copy
                     of the Mortgage;

               (iii) in the case of a Mortgage Loan that is not a MERS Mortgage
                     Loan, a duly executed assignment of the Mortgage, or a copy
                     of such assignment certified by the Seller as being a true
                     and complete copy of the assignment, in blank (which may be
                     included in a blanket assignment or assignments), together
                     with, except as provided below, all interim recorded
                     assignments, or copies of such interim assignments
                     certified by the Seller as being true and complete copies
                     of the interim assignments, of such Mortgage (each such
                     assignment, when duly and validly completed, to be in
                     recordable form and sufficient to effect the assignment of
                     and transfer to the assignee thereof, under the Mortgage to
                     which the assignment relates); provided that, if the
                     related Mortgage has not been returned from the applicable
                     public recording office, such assignment of the Mortgage
                     may exclude the information to be provided by the recording
                     office;

               (iv)  the original or copies of each assumption, modification,
                     written assurance or substitution agreement, if any;

               (v)   either the original or duplicate original title policy, or
                     a copy of such title policy certified by the Seller as
                     being a true and complete copy of the title policy
                     (including all riders thereto), with respect to the related
                     Mortgaged Property, if available, provided that the title
                     policy (including all riders thereto) will be delivered as
                     soon as it becomes available, and if the title policy is
                     not available, and to the extent required pursuant to the
                     second paragraph below or otherwise in connection with the
                     rating of the Certificates, a written commitment or interim
                     binder or preliminary report of the title issued by the
                     title insurance or escrow company with respect to the
                     Mortgaged Property, or in lieu thereof, an Alternative
                     Title Product or a copy of such Alternative Title Product
                     certified by the Seller as being a true and complete copy
                     of the Alternative Title Product; and

                                       37
<PAGE>

               (vi)  in the case of a Cooperative Loan, the originals of the
                     following documents or instruments:

                      (A)  The Coop Shares, together with a stock power in
                           blank;

                      (B)  The executed Security Agreement;

                      (C)  The executed Proprietary Lease;

                      (D)  The executed Recognition Agreement;

                      (E)  The executed UCC-1 financing statement with evidence
                           of recording thereon which have been filed in all
                           places required to perfect the Seller's interest in
                           the Coop Shares and the Proprietary Lease; and

                      (F)  Executed UCC-3 financing statements or other
                           appropriate UCC financing statements required by
                           state law, evidencing a complete and unbroken line
                           from the mortgagee to the Trustee with evidence of
                           recording thereon (or in a form suitable for
                           recordation).

         In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan the Depositor cannot deliver (a) the original recorded
Mortgage or (b) all interim recorded assignments satisfying the requirements of
clause (ii) or (iii) above, respectively, concurrently with the execution and
delivery hereof because such document or documents have not been returned from
the applicable public recording office, the Depositor shall promptly deliver or
cause to be delivered to the Trustee or the Custodian on its behalf such
original Mortgage or such interim assignment, as the case may be, with evidence
of recording indicated thereon upon receipt thereof from the public recording
office, or a copy thereof, certified, if appropriate, by the relevant recording
office, but in no event shall any such delivery of the original Mortgage and
each such interim assignment or a copy thereof, certified, if appropriate, by
the relevant recording office, be made later than one year following the Closing
Date; provided, however, in the event the Depositor is unable to deliver or
cause to be delivered by such date each Mortgage and each such interim
assignment by reason of the fact that any such documents have not been returned
by the appropriate recording office, or, in the case of each such interim
assignment, because the related Mortgage has not been returned by the
appropriate recording office, the Depositor shall deliver or cause to be
delivered such documents to the Trustee or the Custodian on its behalf as
promptly as possible upon receipt thereof and, in any event, within 720 days
following the Closing Date. The Depositor shall forward or cause to be forwarded
to the Trustee or the Custodian on its behalf (a) from time to time additional
original documents evidencing an assumption or modification of a Mortgage Loan
and (b) any other documents required to be delivered by the Depositor or the
Master Servicer to the Trustee. In the event that the original Mortgage is not
delivered and in connection with the payment in full of the related Mortgage
Loan and the public recording office requires the presentation of a "lost
instruments affidavit and indemnity" or any equivalent document, because only a
copy of the Mortgage can be delivered with the instrument of satisfaction or
reconveyance, the Master Servicer shall execute and deliver or cause to be
executed and delivered such a document to the public recording office. In the
case where a public recording office retains the original recorded Mortgage or
in the case where a Mortgage is lost after recordation in a public recording
office, the Depositor shall deliver or cause to be delivered to the Trustee or
the Custodian on its behalf a copy of such Mortgage certified by such public
recording office to be a true and complete copy of the original recorded
Mortgage.

                                       38
<PAGE>

         In addition, in the event that in connection with any Mortgage Loan the
Depositor cannot deliver or cause to be delivered the original or duplicate
original lender's title policy (together with all riders thereto), satisfying
the requirements of clause (v) above, concurrently with the execution and
delivery hereof because the related Mortgage has not been returned from the
applicable public recording office, the Depositor shall promptly deliver or
cause to be delivered to the Trustee or the Custodian on its behalf such
original or duplicate original lender's title policy (together with all riders
thereto) upon receipt thereof from the applicable title insurer, but in no event
shall any such delivery of the original or duplicate original lender's title
policy be made later than one year following the Closing Date; provided,
however, in the event the Depositor is unable to deliver or cause to be
delivered by such date the original or duplicate original lender's title policy
(together with all riders thereto) because the related Mortgage has not been
returned by the appropriate recording office, the Depositor shall deliver or
cause to be delivered such documents to the Trustee or the Custodian on its
behalf as promptly as possible upon receipt thereof and, in any event, within
720 days following the Closing Date; provided further, however, that the
Depositor shall not be required to deliver an original or duplicate lender's
title policy (together with all riders thereto) if the Depositor delivers an
Alternative Title Product in lieu thereof. Notwithstanding the preceding, in
connection with any Mortgage Loan for which either the original or duplicate
original title policy has not been delivered to the Trust, if at any time during
the term of this Agreement the parent company of the Seller does not have a long
term senior debt rating of A- or higher from S&P and A- or higher from Fitch (if
rated by Fitch), then the Depositor shall within 30 days deliver or cause to be
delivered to the Trustee or the Custodian on its behalf (if it has not
previously done so) a written commitment or interim binder or preliminary report
of the title issued by the title insurance or escrow company with respect to the
Mortgaged Property.

         Subject to the immediately following sentence, as promptly as
practicable subsequent to such transfer and assignment, and in any event, within
thirty (30) days thereafter, the Master Servicer shall (i) complete each
assignment of Mortgage, as follows: "First Horizon Mortgage Pass-Through
Certificates, Series 2005-FA9, The Bank of New York, as trustee for the holders
of the Certificates", (ii) cause such assignment to be in proper form for
recording in the appropriate public office for real property records and (iii)
cause to be delivered for recording in the appropriate public office for real
property records the assignments of the Mortgages to the Trustee, except that,
with respect to any assignments of Mortgage as to which the Master Servicer has
not received the information required to prepare such assignment in recordable
form, the Master Servicer's obligation to do so and to deliver the same for such
recording shall be as soon as practicable after receipt of such information and
in any event within thirty (30) days after receipt thereof. Notwithstanding the
foregoing, the Master Servicer need not cause to be recorded any assignment
which relates to a Mortgage Loan in any state other than the Required
Recordation States.

                                       39
<PAGE>

         In the case of Mortgage Loans that have been prepaid in full as of the
Closing Date, the Depositor, in lieu of delivering the above documents to the
Trustee or the Custodian on its behalf, will deposit in the Certificate Account
the portion of such payment that is required to be deposited in the Certificate
Account pursuant to Section 3.8 hereof.

         Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date, the Depositor shall either (i) deliver or
cause to be delivered to the Trustee or the Custodian on its behalf the Mortgage
File as required pursuant to this Section 2.1 for each Delay Delivery Mortgage
Loan or (ii) (A) substitute or cause to be substituted a Substitute Mortgage
Loan for the Delay Delivery Mortgage Loan or (B) repurchase or cause to be
repurchased the Delay Delivery Mortgage Loan, which substitution or repurchase
shall be accomplished in the manner and subject to the conditions set forth in
Section 2.3 (treating each Delay Delivery Mortgage Loan as a Deleted Mortgage
Loan for purposes of such Section 2.3), provided, however, that if the Depositor
fails to deliver a Mortgage File for any Delay Delivery Mortgage Loan within the
thirty-day period provided in the prior sentence, the Depositor shall use its
best reasonable efforts to effect or cause to be effected a substitution, rather
than a repurchase of, such Deleted Mortgage Loan and provided further that the
cure period provided for in Section 2.2 or in Section 2.3 shall not apply to the
initial delivery of the Mortgage File for such Delay Delivery Mortgage Loan, but
rather the Depositor shall have five (5) Business Days to cure or cause to be
cured such failure to deliver. At the end of such thirty-day period, the Trustee
or the Custodian, on its behalf shall send a Delay Delivery Certification for
the Delay Delivery Mortgage Loans delivered during such thirty-day period in
accordance with the provisions of Section 2.2. Notwithstanding anything to the
contrary contained in this Agreement, none of the Mortgage Loans in the Trust
Fund is or will be Delay Delivery Mortgage Loans.

             SECTION 2.2   Acceptance by Trustee of the Mortgage Loans.

         The Trustee or the Custodian, on behalf of the Trustee, acknowledges
receipt of the documents identified in the Initial Certification in the form
annexed hereto as Exhibit E and declares that it or the Custodian holds and will
hold such documents and the other documents delivered to it or the Custodian, as
applicable, constituting the Mortgage Files, and that it or the Custodian, as
applicable, holds or will hold such other assets as are included in the Trust
Fund, in trust for the exclusive use and benefit of all present and future
Certificateholders. The Trustee acknowledges that the Custodian will maintain
possession of the Mortgage Notes in the State of Texas, unless otherwise
permitted by the Rating Agencies.

         The Trustee agrees to execute and deliver or to cause the Custodian to
execute and deliver on the Closing Date to the Depositor and the Master Servicer
an Initial Certification in the form annexed hereto as Exhibit E. Based on its
or the Custodian's review and examination, and only as to the documents
identified in such Initial Certification, the Custodian, on behalf of the
Trustee, acknowledges that such documents appear regular on their face and
relate to such Mortgage Loan. Neither the Trustee nor the Custodian shall be
under any duty or obligation to inspect, review or examine said documents,
instruments, certificates or other papers to determine that the same are
genuine, enforceable or appropriate for the represented purpose or that they
have actually been recorded in the real estate records or that they are other
than what they purport to be on their face.

                                       40
<PAGE>

         On or about the thirtieth (30th) day after the Closing Date, the
Trustee shall deliver or shall cause the Custodian to deliver to the Depositor
and the Master Servicer a Delay Delivery Certification in the form annexed
hereto as Exhibit F, with any applicable exceptions noted thereon.
Notwithstanding anything to the contrary contained in this Agreement, none of
the Mortgage Loans in the Trust Fund is or will be Delay Delivery Mortgage
Loans.

         Not later than 90 days after the Closing Date, the Trustee shall
deliver or shall cause the Custodian to deliver to the Depositor and the Master
Servicer a Subsequent Certification in the form annexed hereto as Exhibit G,
with any applicable exceptions noted thereon.

         If, in the course of such review, the Trustee or the Custodian, on
behalf of the Trustee, finds any document constituting a part of a Mortgage File
which does not meet the requirements of Section 2.1, the Trustee shall list or
shall cause the Custodian to list such as an exception in the Subsequent
Certification; provided, however that neither the Trustee nor the Custodian
shall make any determination as to whether (i) any endorsement is sufficient to
transfer all right, title and interest of the party so endorsing, as noteholder
or assignee thereof, in and to that Mortgage Note or (ii) any assignment is in
recordable form or is sufficient to effect the assignment of and transfer to the
assignee thereof under the mortgage to which the assignment relates. The Seller
shall promptly correct or cure such defect within 90 days from the date it was
so notified of such defect and, if the Seller does not correct or cure such
defect within such period, the Seller shall either (a) substitute for the
related Mortgage Loan a Substitute Mortgage Loan, which substitution shall be
accomplished in the manner and subject to the conditions set forth in Section
2.3, or (b) purchase such Mortgage Loan from the Trustee within 90 days from the
date the Seller was notified of such defect in writing at the Purchase Price of
such Mortgage Loan; provided, however, that in no event shall such substitution
or purchase occur more than 540 days from the Closing Date, except that if the
substitution or purchase of a Mortgage Loan pursuant to this provision is
required by reason of a delay in delivery of any documents by the appropriate
recording office, and there is a dispute between either the Master Servicer or
the Seller and the Trustee over the location or status of the recorded document,
then such substitution or purchase shall occur within 720 days from the Closing
Date. The Trustee shall deliver or shall cause the Custodian to deliver written
notice to each Rating Agency within 270 days from the Closing Date indicating
each Mortgage Loan (a) which has not been returned by the appropriate recording
office or (b) as to which there is a dispute as to location or status of such
Mortgage Loan. Such notice shall be delivered every 90 days thereafter until the
related Mortgage Loan is returned to the Trustee or the Custodian on its behalf.
Any such substitution pursuant to (a) above or purchase pursuant to (b) above
shall not be effected prior to the delivery to the Trustee of the Opinion of
Counsel required by Section 2.5 hereof, if any, and any substitution pursuant to
(a) above shall not be effected prior to the additional delivery to the Trustee
of a Request for Release substantially in the form of Exhibit L. No substitution
is permitted to be made in any calendar month after the Determination Date for
such month. The Purchase Price for any such Mortgage Loan shall be deposited by
the Seller in the Certificate Account on or prior to the Distribution Account
Deposit Date for the Distribution Date in the month following the month of
repurchase and, upon receipt of such deposit and certification with respect
thereto in the form of Exhibit M hereto, the Trustee shall cause the Custodian
to release the related Mortgage File to the Seller and shall execute and deliver
at the Seller's request such instruments of transfer or assignment prepared by
the Seller, in each case without recourse, as shall be necessary to vest in the
Seller, or a designee, the Trustee's interest in any Mortgage Loan released
pursuant hereto. If pursuant to the foregoing provisions the Seller repurchases
a Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer shall either
(i) cause MERS to execute and deliver an assignment of the Mortgage in
recordable form to transfer the Mortgage from MERS to the Seller and shall cause
such Mortgage to be removed from registration on the MERS(R) System in
accordance with MERS' rules and regulations or (ii) cause MERS to designate on
the MERS(R) System the Seller as the beneficial holder of such Mortgage Loan.

                                       41
<PAGE>

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

         It is understood and agreed that the obligation of the Seller to
substitute for or to purchase any Mortgage Loan which does not meet the
requirements of Section 2.1 above shall constitute the sole remedy respecting
such defect available to the Trustee, the Depositor and any Certificateholder
against the Seller.

         The mortgage loans permitted by the terms of this Agreement to be
included in the Trust Fund are limited to (i) the Mortgage Loans (which the
Depositor acquired pursuant to the MLPA, which contains, among other
representations and warranties, a representation and warranty of the Seller that
no Mortgage Loan is a "high cost loan" as defined by the specific applicable
local, state or federal predatory and abusive lending laws, and (ii) Substitute
Mortgage Loans (which, by definition as set forth in this Agreement and referred
to in the MLPA, are required to conform to, among other representations and
warranties, a representation and warranty of the Seller set forth in the MLPA
that no Substitute Mortgage Loan is a "high cost loan" as defined by the
specific applicable local, state or federal predatory and abusive lending laws).
It is therefore understood and agreed by the parties hereto that it is not
intended that any Mortgage Loan be included in the Trust Fund that is a "high
cost loan" as defined by the specific applicable local, state or federal
predatory and abusive lending laws.

              SECTION 2.3 Representations and Warranties of the Master Servicer;
         Covenants of the Seller.

         (a)  The Master Servicer hereby makes the representations and
              warranties set forth in Schedule II hereto and by this reference
              incorporated herein, to the Depositor and the Trustee, as of the
              Closing Date, or if so specified therein, as of the Cut-off Date.

                                       42
<PAGE>

         (b)  Upon discovery by any of the parties hereto of a breach of a
              representation or warranty made pursuant to Schedule B to the MLPA
              that materially and adversely affects the interests of the
              Certificateholders in any Mortgage Loan, the party discovering
              such breach shall give prompt notice thereof to the other parties.
              The Seller hereby covenants that within 90 days of the earlier of
              its discovery or its receipt of written notice from any party of a
              breach of any representation or warranty made pursuant to Schedule
              B to the MLPA which materially and adversely affects the interests
              of the Certificateholders in any Mortgage Loan, it shall cure such
              breach in all material respects, and if such breach is not so
              cured, shall, (i) if such 90-day period expires prior to the
              second anniversary of the Closing Date, remove such Mortgage Loan
              (a "Deleted Mortgage Loan") from the Trust Fund and substitute in
              its place a Substitute Mortgage Loan, in the manner and subject to
              the conditions set forth in this Section; or (ii) repurchase the
              affected Mortgage Loan or Mortgage Loans from the Trustee at the
              Purchase Price in the manner set forth below; provided, however,
              that any such substitution pursuant to (i) above shall not be
              effected prior to the delivery to the Trustee of the Opinion of
              Counsel required by Section 2.5 hereof, if any, and any such
              substitution pursuant to (i) above shall not be effected prior to
              the additional delivery to the Trustee or the Custodian on its
              behalf of a Request for Release substantially in the form of
              Exhibit M and the Mortgage File for any such Substitute Mortgage
              Loan. The Seller shall promptly reimburse the Master Servicer and
              the Trustee for any expenses reasonably incurred by the Master
              Servicer or the Trustee in respect of enforcing the remedies for
              such breach. With respect to the representations and warranties
              described in this Section which are made to the best of the
              Seller's knowledge, if it is discovered by either the Depositor,
              the Seller or the Trustee that the substance of such
              representation and warranty is inaccurate and such inaccuracy
              materially and adversely affects the value of the related Mortgage
              Loan or the interests of the Certificateholders therein,
              notwithstanding the Seller's lack of knowledge with respect to the
              substance of such representation or warranty, such inaccuracy
              shall be deemed a breach of the applicable representation or
              warranty.

         With respect to any Substitute Mortgage Loan or Loans, the Seller shall
deliver to the Trustee or the Custodian on its behalf for the benefit of the
Certificateholders the Mortgage Note, the Mortgage, the related assignment of
the Mortgage, and such other documents and agreements as are required by Section
2.1, with the Mortgage Note endorsed and the Mortgage assigned as required by
Section 2.1. No substitution is permitted to be made in any calendar month after
the Determination Date for such month. Scheduled Payments due with respect to
Substitute Mortgage Loans in the month of substitution shall not be part of the
Trust Fund and will be retained by the Seller on the next succeeding
Distribution Date. For the month of substitution, distributions to
Certificateholders will include the monthly payment due on any Deleted Mortgage
Loan for such month and thereafter the Seller shall be entitled to retain all
amounts received in respect of such Deleted Mortgage Loan. The Master Servicer
shall amend the Mortgage Loan Schedule for the benefit of the Certificateholders
to reflect the removal of such Deleted Mortgage Loan and the substitution of the
Substitute Mortgage Loan or Loans and the Master Servicer shall deliver the
amended Mortgage Loan Schedule to the Trustee. Upon such substitution, the
Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, and the Seller shall be deemed to have made with
respect to such Substitute Mortgage Loan or Loans, as of the date of
substitution, the representations and warranties made pursuant to Schedule B to
the MLPA with respect to such Mortgage Loan. Upon any such substitution and the
deposit to the Certificate Account of the amount required to be deposited
therein in connection with such substitution as described in the following
paragraph, the Trustee shall release or shall cause the Custodian to release the
Mortgage File held for the benefit of the Certificateholders relating to such
Deleted Mortgage Loan to the Seller and shall execute and deliver at the
Seller's direction such instruments of transfer or assignment prepared by the
Seller, in each case without recourse, as shall be necessary to vest title in
the Seller, or its designee, the Trustee's interest in any Deleted Mortgage Loan
substituted for pursuant to this Section 2.3.

                                       43
<PAGE>

         For any month in which the Seller substitutes one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount (if any) by which the aggregate principal balance of all
such Substitute Mortgage Loans as of the date of substitution is less than the
aggregate Stated Principal Balance of all such Deleted Mortgage Loans (after
application of the scheduled principal portion of the monthly payments due in
the month of substitution). The amount of such shortage (the "Substitution
Adjustment Amount") plus an amount equal to the aggregate of any unreimbursed
Advances with respect to such Deleted Mortgage Loans shall be deposited in the
Certificate Account by the Seller on or before the Distribution Account Deposit
Date for the Distribution Date in the month succeeding the calendar month during
which the related Mortgage Loan became required to be purchased or replaced
hereunder.

         In the event that the Seller shall have repurchased a Mortgage Loan,
the Purchase Price therefor shall be deposited in the Certificate Account
pursuant to Section 3.5 on or before the Distribution Account Deposit Date for
the Distribution Date in the month following the month during which the Seller
became obligated hereunder to repurchase or replace such Mortgage Loan and upon
such deposit of the Purchase Price, the delivery of the Opinion of Counsel
required by Section 2.5 and receipt of a Request for Release in the form of
Exhibit M hereto, the Trustee shall release or shall cause the Custodian to
release the related Mortgage File held for the benefit of the Certificateholders
to such Person, and the Trustee shall execute and deliver or shall cause the
Custodian to execute and deliver at such Person's direction such instruments of
transfer or assignment prepared by such Person, in each case without recourse,
as shall be necessary to transfer title from the Trustee. It is understood and
agreed that the obligation under this Agreement of the Seller to cure,
repurchase or replace any Mortgage Loan as to which a breach has occurred and is
continuing shall constitute the sole remedy against the Seller respecting such
breach available to Certificateholders, the Depositor or the Trustee on their
behalf.

         After giving effect to the sale of the Certificates by the Depositor to
the Underwriters, and thereafter, so long as any Certificates remain
outstanding, the Seller, its affiliates and agents, collectively, shall not
beneficially own Certificates the aggregate fair value of which would represent
90% or more of the beneficial interests in the Trust Fund.

         The representations and warranties made pursuant to this Section 2.3
shall survive delivery of the respective Mortgage Files to the Trustee or the
Custodian for the benefit of the Certificateholders.

            SECTION 2.4 Representations and Warranties of the Depositor as to
         the Mortgage Loans.

         The Depositor hereby represents and warrants to the Trustee with
respect to each Mortgage Loan as of the date hereof or such other date set forth
herein that as of the Closing Date, and following the transfer of the Mortgage
Loans to it pursuant to the MLPA and immediately prior to the conveyance of the
Mortgage Loans by it to the Trustee pursuant to Section 2.1(a) hereof, the
Depositor had good title to the Mortgage Loans and the Mortgage Notes were
subject to no offsets, defenses or counterclaims.

                                       44
<PAGE>

         It is understood and agreed that the representations and warranties set
forth in this Section 2.4 shall survive delivery of the Mortgage Files to the
Trustee. Upon discovery by the Depositor or the Trustee of a breach of any of
the foregoing representations and warranties set forth in this Section 2.4
(referred to herein as a "breach"), which breach materially and adversely
affects the interest of the Certificateholders, the party discovering such
breach shall give prompt written notice to the others and to each Rating Agency.

              SECTION 2.5 Delivery of Opinion of Counsel in Connection with
         Substitutions.

         (a)  Notwithstanding any contrary provision of this Agreement, no
              substitution pursuant to Section 2.2 or Section 2.3 shall be made
              more than 90 days after the Closing Date unless the Depositor
              delivers to the Trustee an Opinion of Counsel, which Opinion of
              Counsel shall not be at the expense of either the Trustee or the
              Trust Fund, addressed to the Trustee, to the effect that such
              substitution will not (i) result in the imposition of the tax on
              "prohibited transactions" on the Trust Fund or contributions after
              the Startup Date, as defined in Sections 860F(a)(2) and 860G(d) of
              the Code, respectively, or (ii) cause any REMIC created hereunder
              to fail to qualify as a REMIC at any time that any Certificates
              are outstanding.

         (b)  Upon discovery by the Depositor, the Master Servicer or the
              Trustee that any Mortgage Loan does not constitute a "qualified
              mortgage" within the meaning of Section 860G(a)(3) of the Code,
              the party discovering such fact shall promptly (and in any event
              within five (5) Business Days of discovery) give written notice
              thereof to the other parties. In connection therewith, the Trustee
              shall require the Depositor to cause the Seller, pursuant to the
              MLPA and at the Seller's option, to either (i) substitute, if the
              conditions in Section 2.3(b) with respect to substitutions are
              satisfied, a Substitute Mortgage Loan for the affected Mortgage
              Loan, or (ii) repurchase the affected Mortgage Loan within 90 days
              of such discovery in the same manner as it would a Mortgage Loan
              for a breach of representation or warranty made pursuant to
              Section 2.3. The Trustee shall reconvey or shall cause the
              Custodian to reconvey to the Seller the Mortgage Loan to be
              released pursuant hereto in the same manner, and on the same terms
              and conditions, as it would a Mortgage Loan repurchased for breach
              of a representation or warranty contained in Section 2.3.

              SECTION 2.6 Execution and Delivery of Certificates.

         The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, has executed and
delivered to or upon the order of the Depositor, the Certificates in authorized
denominations evidencing directly or indirectly the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights
referred to above for the benefit of all present and future Holders of the
Certificates and to perform the duties set forth in this Agreement to the best
of its ability, to the end that the interests of the Holders of the Certificates
may be adequately and effectively protected.

                                       45
<PAGE>

              SECTION 2.7 REMIC Matters.

         (a)  REMIC Matters:

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

         The assets of the Lower REMIC shall be as set forth in the definition
thereof. Each interest identified in the first table below by a designation
beginning with "L" shall be a "regular interest" in the Lower REMIC and a Lower
REMIC Interest, and the RL Interests shall be the sole class of residual
interest in the Lower REMIC. The Lower REMIC Interest shall be uncertificated
and shall be held by the Trustee as assets of the Upper REMIC.

         The assets of the Upper REMIC shall be as set forth in the definition
thereof. The Regular Certificates shall represent "regular interests" in the
Upper REMIC. The RU Interest shall be the sole class of residual interest in the
Upper REMIC. The Class A-R Certificate shall represent ownership of the RL
Interest and the RU Interest.

         The "Startup Day" for purposes of the REMIC Provisions for each REMIC
hereunder shall be the Closing Date. The Tax Matters Person with respect to each
REMIC hereunder shall be the Trustee and the Trustee shall hold the Tax Matters
Person Certificate. Each REMIC's taxable year shall be the calendar year and its
accounts shall be maintained using the accrual method.

                                       46
<PAGE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
   Lower REMIC                                                             Corresponding Class or Interest
   Interest or     Lower REMIC Interest                                 -------------------------------------
    Residual              Balance         Lower REMIC Interest Rate         Interest            Principal
-------------------------------------------------------------------------------------------------------------
<S>                <C>                             <C>                     <C>                 <C>
L-A-1              $   250,207,000.00              5.550%                     A1,A2                 A1
-------------------------------------------------------------------------------------------------------------
L-A-3              $    29,090,000.00              5.500%                      A3                   A3
-------------------------------------------------------------------------------------------------------------
L-A-4A             $    41,278,000.00              5.500%                      A4A                 A4A
-------------------------------------------------------------------------------------------------------------
L-A-4B             $     2,568,000.00              5.500%                      A4B                 A4B
-------------------------------------------------------------------------------------------------------------
L-A-5              $   115,320,000.00              5.500%                      A5                   A5
-------------------------------------------------------------------------------------------------------------
L-A-PO             $     1,299,952.36                N/A                       N/A                 APO
-------------------------------------------------------------------------------------------------------------
RL                 $             0.00                N/A                       N/A                 N/A
-------------------------------------------------------------------------------------------------------------
L-A-RU             $           100.00              5.500%                  RU Interest         RU Interest
-------------------------------------------------------------------------------------------------------------
L-B-1              $     9,200,000.00              5.500%                      B1                   B1
-------------------------------------------------------------------------------------------------------------
L-B-2              $     3,910,000.00              5.500%                      B2                   B2
-------------------------------------------------------------------------------------------------------------
L-B-3              $     2,300,000.00              5.500%                      B3                   B3
-------------------------------------------------------------------------------------------------------------
L-B-4              $     2,070,000.00              5.500%                      B4                   B4
-------------------------------------------------------------------------------------------------------------
L-B-5              $     1,610,000.00              5.500%                      B5                   B5
-------------------------------------------------------------------------------------------------------------
L-B-6              $     1,150,750.71              5.500%                      B6                   B6
-------------------------------------------------------------------------------------------------------------
                   $   460,003,803.07
-------------------------------------------------------------------------------------------------------------
</TABLE>

         On each Distribution Date Available Funds shall be distributed with
respect to the Lower REMIC Interests in a manner such that:

              (i)  interest accrued, if any, on each Lower REMIC Interest is
                   distributed with respect to each such Lower REMIC Interest in
                   the same manner that Accrued Certificate Interest is
                   distributed with respect to the Corresponding Class or
                   Classes of Certificates pursuant to Section 4.2; and

              (ii) principal is distributed (and Realized Losses shall be
                   allocated) with respect to each such Lower REMIC Interest in
                   the same manner that principal is distributed (and Realized
                   Losses is allocated) with respect to the Corresponding
                   Classes or Classes of Certificate pursuant to Section 4.2 and
                   Section 4.4.

         The Lower REMIC Interest L-A-PO shall be entitled to receive the Class
PO Principal Distribution Amount.

         The foregoing REMIC structure is intended to cause all of the cash from
the Mortgage Loans to flow through to the Upper REMIC as cash flow on a REMIC
regular interest, without creating any shortfall-actual or potential (other than
for credit losses) to any REMIC regular interest. To the extent that the
structure is believed to diverge from such intention the Trustee shall resolve
ambiguities to accomplish such result and shall to the extent necessary rectify
any drafting errors or seek clarification to the structure without
Certificateholder approval (but with guidance of counsel) to accomplish such
intention.

                                       47
<PAGE>

              SECTION 2.8   Covenants of the Master Servicer.

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

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

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

                                  ARTICLE III
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

              SECTION 3.1   Master Servicer to Service Mortgage Loans.

         For and on behalf of the Certificateholders, the Master Servicer shall
service and administer the Mortgage Loans in accordance with the terms of (i)
the Servicing Rights Transfer and Subservicing Agreement, pursuant to which
First Tennessee Mortgage Services, Inc. engaged the Master Servicer to
subservice the Mortgage Loans, (ii) this Agreement and (iii) the customary and
usual standards of practice of prudent mortgage loan servicers; provided that if
there is a conflict between the terms of the Servicing Agreement and the
Servicing Rights Transfer and Subservicing Agreement, on the one hand, and this
Agreement, on the other hand, the terms of this Agreement shall prevail. In
connection with such servicing and administration, the Master Servicer shall
have full power and authority, acting alone and/or through Subservicers as
provided in Section 3.2 hereof, to do or cause to be done any and all things
that it may deem necessary or desirable in connection with such servicing and
administration, including but not limited to, the power and authority, subject
to the terms hereof (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages (but only
in the manner provided in this Agreement), (iii) to collect any Insurance
Proceeds and other Liquidation Proceeds, and (iv) to effectuate foreclosure or
other conversion of the ownership of the Mortgaged Property securing any
Mortgage Loan; provided that the Master Servicer shall not take any action that
is inconsistent with or prejudices the interests of the Trust Fund or the
Certificateholders in any Mortgage Loan or the rights and interests of the
Depositor, the Trustee and the Certificateholders under this Agreement. The
Master Servicer shall represent and protect the interests of the Trust Fund in
the same manner as it protects its own interests in mortgage loans in its own

                                       48
<PAGE>

portfolio in any claim, proceeding or litigation regarding a Mortgage Loan, and
shall not make or permit any modification, waiver or amendment of any Mortgage
Loan which would cause any REMIC created hereunder to fail to qualify as a REMIC
or result in the imposition of any tax under Section 860F(a) or Section 860G(d)
of the Code. Without limiting the generality of the foregoing, the Master
Servicer, in its own name or in the name of the Depositor and the Trustee, is
hereby authorized and empowered by the Depositor and the Trustee, when the
Master Servicer believes it appropriate in its reasonable judgment, to execute
and deliver, on behalf of the Trustee, the Depositor, the Certificateholders or
any of them, any 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 Mortgaged Properties held
for the benefit of the Certificateholders. The Master Servicer shall prepare and
deliver to the Depositor and/or the Trustee such documents requiring execution
and delivery by either or both of them as are necessary or appropriate to enable
the Master Servicer to service and administer the Mortgage Loans to the extent
that the Master Servicer is not permitted to execute and deliver such documents
pursuant to the preceding sentence. Upon receipt of such documents, the
Depositor and/or the Trustee shall execute such documents and deliver them to
the Master Servicer. The Master Servicer further is authorized and empowered by
the Trustee, on behalf of the Certificateholders and the Trustee, in its own
name or in the name of the Subservicer, when the Master Servicer or the
Subservicer as the case may be, believes it appropriate in its best judgment to
register any Mortgage Loan on the MERS(R) System, or cause the removal from the
registration of any Mortgage Loan on the MERS(R) System, to execute and deliver,
on behalf of the Trustee and the Certificateholders or any of them, any and all
instruments of assignment and other comparable instruments with respect to such
assignment or re-recording of a Mortgage in the name of MERS, solely as nominee
for the Trustee and its successors and assigns.

         In accordance with the standards of the preceding paragraph, the Master
Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.6, and further as
provided in Section 3.8. The costs incurred by the Master Servicer, if any, in
effecting the timely payments of taxes and assessments on the Mortgaged
Properties and related insurance premiums shall not, for the purpose of
calculating monthly distributions to the Certificateholders, be added to the
Stated Principal Balances of the related Mortgage Loans, notwithstanding that
the terms of such Mortgage Loans so permit.

              SECTION 3.2 Subservicing; Enforcement of the Obligations of
         Servicers.

         (a)  The Master Servicer may arrange for the subservicing of any
              Mortgage Loan by a Subservicer pursuant to a subservicing
              agreement; provided, however, that such subservicing arrangement
              and the terms of the related subservicing agreement must provide
              for the servicing of such Mortgage Loans in a manner consistent
              with the servicing arrangements contemplated hereunder. Unless the
              context otherwise requires, references in this Agreement to
              actions taken or to be taken by the Master Servicer in servicing
              the Mortgage Loans include actions taken or to be taken by a
              Subservicer on behalf of the Master Servicer. Notwithstanding the
              provisions of any subservicing agreement, any of the provisions of
              this Agreement relating to agreements or arrangements between the
              Master Servicer and a Subservicer or reference to actions taken
              through a Subservicer or otherwise, the Master Servicer shall
              remain obligated and liable to the Depositor, the Trustee and the
              Certificateholders for the servicing and administration of the
              Mortgage Loans in accordance with the provisions of this Agreement
              without diminution of such obligation or liability by virtue of
              such subservicing agreements or arrangements or by virtue of
              indemnification from the Subservicer and to the same extent and
              under the same terms and conditions as if the Master Servicer
              alone were servicing and administering the Mortgage Loans. All
              actions of each Subservicer performed pursuant to the related
              subservicing agreement shall be performed as an agent of the
              Master Servicer with the same force and effect as if performed
              directly by the Master Servicer.

                                       49
<PAGE>

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

              SECTION 3.3 Rights of the Depositor and the Trustee in Respect of
         the Master Servicer.

         The Depositor may, but is not obligated to, enforce the obligations of
the Master Servicer hereunder and may, but is not obligated to, perform, or
cause a designee to perform, any defaulted obligation of the Master Servicer
hereunder and in connection with any such defaulted obligation to exercise the
related rights of the Master Servicer hereunder; provided that the Master
Servicer shall not be relieved of any of its obligations hereunder by virtue of
such performance by the Depositor or its designee. Neither the Trustee nor the
Depositor shall have any responsibility or liability for any action or failure
to act by the Master Servicer nor shall the Trustee or the Depositor be
obligated to supervise the performance of the Master Servicer hereunder or
otherwise.

              SECTION 3.4  Trustee to Act as Master Servicer.

         In the event that the Master Servicer shall for any reason no longer be
the Master Servicer hereunder (including by reason of an Event of Default), the
Trustee or its successor shall thereupon assume all of the rights and
obligations of the Master Servicer hereunder arising thereafter (except that the
Trustee shall not be (i) liable for losses of the Master Servicer pursuant to
Section 3.9 hereof or any acts or omissions of the predecessor Master Servicer
hereunder), (ii) obligated to make Advances if it is prohibited from doing so by
applicable law, (iii) obligated to effectuate repurchases or substitutions of
Mortgage Loans hereunder including, but not limited to, repurchases or
substitutions of Mortgage Loans pursuant to Section 2.2 or 2.3 hereof, (iv)
responsible for expenses of the Master Servicer pursuant to Section 2.3 or (v)
deemed to have made any representations and warranties of the Master Servicer
hereunder). Any such assumption shall be subject to Section 7.2 hereof. If the
Master Servicer shall for any reason no longer be the Master Servicer (including
by reason of any Event of Default), the Trustee or its successor shall succeed
to any rights and obligations of the Master Servicer under each subservicing
agreement.

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

              SECTION 3.5  Collection of Mortgage Loan Payments; Certificate
         Account; Distribution Account.

         (a)  The Master Servicer shall make reasonable efforts in accordance
              with the customary and usual standards of practice of prudent
              mortgage servicers to collect all payments called for under the
              terms and provisions of the Mortgage Loans to the extent such
              procedures shall be consistent with this Agreement and the terms
              and provisions of any related Required Insurance Policy.
              Consistent with the foregoing, the Master Servicer may in its
              discretion (i) waive any late payment charge or any prepayment
              charge or penalty interest in connection with the prepayment of a
              Mortgage Loan and (ii) extend the due dates for payments due on a
              Mortgage Note for a period not greater than 180 days; provided,
              however, that the Master Servicer cannot extend the maturity of
              any such Mortgage Loan past the date on which the final payment is
              due on the latest maturing Mortgage Loan as of the Cut-off Date.
              In the event of any such arrangement, the Master Servicer shall
              make Advances on the related Mortgage Loan in accordance with the
              provisions of Section 4.1 during the scheduled period in
              accordance with the amortization schedule of such Mortgage Loan
              without modification thereof by reason of such arrangements. The
              Master Servicer shall not be required to institute or join in
              litigation with respect to collection of any payment (whether
              under a Mortgage, Mortgage Note or otherwise or against any public
              or governmental authority with respect to a taking or
              condemnation) if it reasonably believes that enforcing the
              provision of the Mortgage or other instrument pursuant to which
              such payment is required is prohibited by applicable law.

         (b)  The Master Servicer shall establish and maintain the Certificate
              Account into which the Master Servicer shall deposit or cause to
              be deposited no later than two Business Days after receipt, except
              as otherwise specifically provided herein, the following payments
              and collections remitted by Subservicers or received by it in
              respect of the Mortgage Loans subsequent to the Cut-off Date
              (other than in respect of principal and interest due on the
              Mortgage Loans on or before the Cut-off Date) and the following
              amounts required to be deposited hereunder:

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

              (ii)   all payments on account of interest on the Mortgage Loans,
                     net of the related Master Servicing Fee, any Prepayment
                     Interest Excess and, for so long as First Horizon is the
                     Master Servicer, any Retained Yield;

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

              (iv)   any amount required to be deposited by the Master Servicer
                     pursuant to Section 3.5(c) in connection with any losses on
                     Permitted Investments;

              (v)    any amounts required to be deposited by the Master Servicer
                     pursuant to Sections 3.9(b) and 3.9(d);

              (vi)   all Substitution Adjustment Amounts;

              (vii)  all Advances made by the Master Servicer pursuant to
                     Section 4.1; and

              (viii) any other amounts required to be deposited hereunder.

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

              The foregoing requirements for remittance by the Master Servicer
         shall be exclusive, it being understood and agreed that, without
         limiting the generality of the foregoing, payments in the nature of
         prepayment penalties, late payment charges, assumption fees or amounts
         attributable to reimbursements of Advances, if collected, need not be
         remitted by the Master Servicer. In the event that the Master Servicer
         shall remit any amount not required to be remitted, it may at any time
         withdraw or direct the institution maintaining the Certificate Account
         to withdraw such amount from the Certificate Account, any provision
         herein to the contrary notwithstanding. Such withdrawal or direction
         may be accomplished by delivering written notice thereof to the Trustee
         or such other institution maintaining the Certificate Account which
         describes the amounts deposited in error in the Certificate Account.
         The Master Servicer shall maintain adequate records with respect to all
         withdrawals made pursuant to this Section. All funds deposited in the
         Certificate Account shall be held in trust for the Certificateholders
         until withdrawn in accordance with Section 3.8.

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

              (i)    the aggregate amount remitted by the Master Servicer to the
                     Trustee pursuant to Section 3.8(a)(ix);

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              (ii)   any amount deposited by the Master Servicer pursuant to
                     this Section 3.5(c) in connection with any losses on
                     Permitted Investments; and

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

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

              (iv)   The institutions at which the Certificate Account and the
                     Distribution Account are maintained shall invest funds as
                     directed by the Master Servicer in Permitted Investments
                     which in both cases shall mature not later than (i) in the
                     case of the Certificate Account, the second Business Day
                     next preceding the related Distribution Account Deposit
                     Date (except that if such Permitted Investment is an
                     obligation of the institution that maintains such account,
                     then such Permitted Investment shall mature not later than
                     the Business Day next preceding such Distribution Account
                     Deposit Date) and (ii) in the case of the Distribution
                     Account, the Business Day next preceding the Distribution
                     Date (except that if such Permitted Investment is an
                     obligation of the institution that maintains such fund or
                     account, then such Permitted Investment shall mature not
                     later than such Distribution Date) and, in each case, shall
                     not be sold or disposed of prior to its maturity. If the
                     Master Servicer does not provide such prior written
                     investment direction, the funds in such accounts will be
                     held uninvested. All such Permitted Investments shall be
                     made in the name of the Trustee, for the benefit of the
                     Certificateholders. All income and gain net of any losses
                     realized from any such investment of funds on deposit in
                     the Certificate Account shall be for the benefit of the
                     Master Servicer as servicing compensation and all income
                     and gain net of any losses realized from any such
                     investment of funds on deposit in the Distribution Account
                     shall be for the benefit of the Trustee. The amount of any
                     Realized Losses in the Certificate Account in respect of
                     any such investments shall promptly be deposited by the
                     Master Servicer in the Certificate Account and the amount
                     of any Realized Losses in the Distribution Account in
                     respect of any such investments shall promptly be deposited
                     by the Trustee into the Distribution Account. All
                     reinvestment income earned on amounts on deposit in the
                     Distribution Account shall be for the benefit of the
                     Trustee. The Trustee in its fiduciary capacity shall not be
                     liable for the amount of any loss incurred in respect of
                     any investment or lack of investment of funds held in the
                     Certificate Account and made in accordance with this
                     Section 3.5.

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              (v)    The Master Servicer shall give notice to the Trustee, the
                     Seller, each Rating Agency and the Depositor of any
                     proposed change of the location of the Certificate Account
                     prior to any change thereof. The Trustee shall give notice
                     to the Master Servicer, the Seller, each Rating Agency and
                     the Depositor of any proposed change of the location of the
                     Distribution Account prior to any change thereof.

              SECTION 3.6  Collection of Taxes, Assessments and Similar Items;
         Escrow Accounts.

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

         (b)  Withdrawals of amounts so collected from the Escrow Accounts may
              be made only to effect timely payment of taxes, assessments,
              hazard insurance premiums, condominium or PUD association dues, or
              comparable items, to reimburse the Master Servicer out of related
              collections for any payments made pursuant to Sections 3.1 hereof
              (with respect to taxes and assessments and insurance premiums) and
              3.9 hereof (with respect to hazard insurance), to refund to any
              Mortgagors any sums determined to be overages, to pay interest, if
              required by law or the terms of the related Mortgage or Mortgage
              Note, to Mortgagors on balances in the Escrow Account or to clear
              and terminate the Escrow Account at the termination of this
              Agreement in accordance with Section 9.1 hereof. The Escrow
              Accounts shall not be a part of the Trust Fund.

         (c)  The Master Servicer shall advance any payments referred to in
              Section 3.6(a) that are not timely paid by the Mortgagors on the
              date when the tax, premium or other cost for which such payment is
              intended is due, but the Master Servicer shall be required so to
              advance only to the extent that such advances, in the good faith
              judgment of the Master Servicer, will be recoverable by the Master
              Servicer out of Insurance Proceeds, Liquidation Proceeds or
              otherwise.

              SECTION 3.7 Access to Certain Documentation and Information
         Regarding the Mortgage Loans.

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

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<PAGE>

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

              SECTION 3.8   Permitted Withdrawals from the Certificate Account
         and Distribution Account.

         (a)  The Master Servicer may from time to time make withdrawals from
              the Certificate Account for the following purposes:

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

              (ii)    to the extent not previously retained by the Master
                      Servicer, to reimburse the Master Servicer for
                      unreimbursed Advances made by it, such right of
                      reimbursement pursuant to this subclause (ii) being
                      limited to amounts received on the Mortgage Loan(s) in
                      respect of which any such Advance was made;

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

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

              (v)     to reimburse the Master Servicer for (a) unreimbursed
                      Servicing Advances, the Master Servicer's right to
                      reimbursement pursuant to this clause (a) with respect to
                      any Mortgage Loan being limited to amounts received on
                      such Mortgage Loan(s) which represent late recoveries of
                      the payments for which such advances were made pursuant to
                      Section 3.1 or Section 3.6 and (b) for unpaid Master
                      Servicing Fees as provided in Section 3.11 hereof;

              (vi)    to pay to the Seller or Master Servicer, as applicable,
                      with respect to each Mortgage Loan or property acquired in
                      respect thereof that has been purchased pursuant to
                      Section 2.2, 2.3 or 3.11, all amounts received thereon
                      after the date of such purchase;

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<PAGE>

              (vii)   to reimburse the Seller, the Master Servicer or the
                      Depositor for expenses incurred by any of them and
                      reimbursable pursuant to Section 6.3 hereof;

              (viii)  to withdraw any amount deposited in the Certificate
                      Account and not required to be deposited therein;

              (ix)    on or prior to the Distribution Account Deposit Date, to
                      withdraw an amount equal to the related Available Funds
                      and the Trustee Fee for such Distribution Date and remit
                      such amount to the Trustee for deposit in the Distribution
                      Account; and

              (x)     to clear and terminate the Certificate Account upon
                      termination of this Agreement pursuant to Section 9.1
                      hereof.

              The Master Servicer shall keep and maintain separate accounting,
         on a Mortgage Loan-by-Mortgage Loan basis, for the purpose of
         justifying any withdrawal from the Certificate Account pursuant to
         such subclauses (i), (ii), (iv), (v) and (vi). Prior to making any
         withdrawal from the Certificate Account pursuant to subclause (iii),
         the Master Servicer shall deliver to the Trustee an Officer's
         Certificate of a Servicing Officer indicating the amount of any
         previous Advance determined by the Master Servicer to be a
         Nonrecoverable Advance and identifying the related Mortgage Loans(s),
         and their respective portions of such Nonrecoverable Advance.

              The Master Servicer shall distribute the Retained Yield, if any,
         to First Horizon on each Distribution Account Deposit Date during the
         term of this Agreement.

         (b)  The Trustee shall withdraw funds from the Distribution Account for
              distributions to the Certificateholders in the manner specified in
              this Agreement (and to withhold from the amounts so withdrawn, the
              amount of any taxes that it is authorized to withhold pursuant to
              the last paragraph of Section 8.11). In addition, the Trustee may
              (and with respect to clauses (i) and (ii) below, shall), prior to
              making the distribution pursuant to Section 4.2 from time to time
              make withdrawals from the Distribution Account for the following
              purposes:

              (i)     to pay to itself the Trustee Fee for the related
                      Distribution Date;

              (ii)    to pay to itself earnings on or investment income with
                      respect to funds in the Distribution Account;

              (iii)   to withdraw and return to the Master Servicer any amount
                      deposited in the Distribution Account and not required to
                      be deposited therein; and

              (iv)    to clear and terminate the Distribution Account upon
                      termination of the Agreement pursuant to Section 9.1
                      hereof.

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              SECTION 3.9   Maintenance of Hazard Insurance; Maintenance of
         Primary Insurance Policies.

         (a)  The Master Servicer shall cause to be maintained, for each
              Mortgage Loan, hazard insurance with extended coverage in an
              amount that is at least equal to the lesser of (i) the maximum
              insurable value of the improvements securing such Mortgage Loan or
              (ii) the greater of (y) the outstanding principal balance of the
              Mortgage Loan and (z) an amount such that the proceeds of such
              policy shall be sufficient to prevent the Mortgagor and/or the
              mortgagee from becoming a co-insurer. Each such policy of standard
              hazard insurance shall contain, or have an accompanying
              endorsement that contains, a standard mortgagee clause. Any
              amounts collected by the Master Servicer under any such policies
              (other than the amounts to be applied to the restoration or repair
              of the related Mortgaged Property or amounts released to the
              Mortgagor in accordance with the Master Servicer's normal
              servicing procedures) shall be deposited in the Certificate
              Account. Any cost incurred by the Master Servicer in maintaining
              any such insurance shall not, for the purpose of calculating
              monthly distributions to the Certificateholders or remittances to
              the Trustee for their benefit, be added to the principal balance
              of the Mortgage Loan, notwithstanding that the terms of the
              Mortgage Loan so permit. Such costs shall be recoverable by the
              Master Servicer out of late payments by the related Mortgagor or
              out of Liquidation Proceeds to the extent permitted by Section 3.8
              hereof. It is understood and agreed that no earthquake or other
              additional insurance is to be required of any Mortgagor or
              maintained on property acquired in respect of a Mortgage other
              than pursuant to such applicable laws and regulations as shall at
              any time be in force and as shall require such additional
              insurance. If the Mortgaged Property is located at the time of
              origination of the Mortgage Loan in a federally designated special
              flood hazard area and such area is participating in the national
              flood insurance program, the Master Servicer shall cause flood
              insurance to be maintained with respect to such Mortgage Loan.
              Such flood insurance shall be in an amount equal to the least of
              (i) the original principal balance of the related Mortgage Loan,
              (ii) the replacement value of the improvements which are part of
              such Mortgaged Property, and (iii) the maximum amount of such
              insurance available for the related Mortgaged Property under the
              national flood insurance program.

         (b)  In the event that the Master Servicer shall obtain and maintain a
              blanket policy insuring against hazard losses on all of the
              Mortgage Loans, it shall conclusively be deemed to have satisfied
              its obligations as set forth in the first sentence of this
              Section, it being understood and agreed that such policy may
              contain a deductible clause on terms substantially equivalent to
              those commercially available and maintained by comparable
              servicers. If such policy contains a deductible clause, the Master
              Servicer shall, in the event that there shall not have been
              maintained on the related Mortgaged Property a policy complying
              with the first sentence of this Section, and there shall have been
              a loss that would have been covered by such policy, deposit in the
              Certificate Account the amount not otherwise payable under the
              blanket policy because of such deductible clause. In connection
              with its activities as Master Servicer of the Mortgage Loans, the
              Master Servicer agrees to present, on behalf of itself, the
              Depositor, and the Trustee for the benefit of the
              Certificateholders, claims under any such blanket policy.

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         (c)  The Master Servicer shall not 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 Master Servicer, would
              have been covered thereunder. The Master Servicer shall not cancel
              or refuse to renew any such Primary Insurance Policy that is in
              effect at the date of the initial issuance of the Certificates and
              is required to be kept in force hereunder unless the replacement
              Primary Insurance Policy for such canceled or non-renewed policy
              is maintained with a Qualified Insurer.

         The Master Servicer shall not be required to maintain any Primary
Insurance Policy (i) with respect to any Mortgage Loan with a Loan-to-Value
Ratio less than or equal to 80% as of any date of determination or, based on a
new appraisal, the principal balance of such Mortgage Loan represents 80% or
less of the new appraised value or (ii) if maintaining such Primary Insurance
Policy is prohibited by applicable law.

         The Master Servicer agrees to effect the timely payment of the premiums
on each Primary Insurance Policy, and such costs not otherwise recoverable shall
be recoverable by the Master Servicer from the related liquidation proceeds.

         (d)  In connection with its activities as Master Servicer of the
              Mortgage Loans, the Master Servicer agrees to present on behalf of
              itself, the Trustee and Certificateholders, claims to the insurer
              under any Primary Insurance Policies and, in this regard, to take
              such reasonable action as shall be necessary to permit recovery
              under any Primary Insurance Policies respecting defaulted Mortgage
              Loans. Any amounts collected by the Master Servicer under any
              Primary Insurance Policies shall be deposited in the Certificate
              Account.

              SECTION 3.10 Enforcement of Due-on-Sale Clauses; Assumption
         Agreements.

         (a)  Except as otherwise provided in this Section, when any property
              subject to a Mortgage has been conveyed by the Mortgagor, the
              Master Servicer shall to the extent that it has knowledge of such
              conveyance, enforce any due-on-sale clause contained in any
              Mortgage Note or Mortgage, to the extent permitted under
              applicable law and governmental regulations, but only to the
              extent that such enforcement will not adversely affect or
              jeopardize coverage under any Required Insurance Policy.
              Notwithstanding the foregoing, the Master Servicer is not required
              to exercise such rights with respect to a Mortgage Loan if the
              Person to whom the related Mortgaged Property has been conveyed or
              is proposed to be conveyed satisfies the terms and conditions
              contained in the Mortgage Note and Mortgage related thereto and
              the consent of the mortgagee under such Mortgage Note or Mortgage
              is not otherwise so required under such Mortgage Note or Mortgage
              as a condition to such transfer. In the event that the Master
              Servicer is prohibited by law from enforcing any such due-on-sale
              clause, or if coverage under any Required Insurance Policy would
              be adversely affected, or if nonenforcement is otherwise permitted
              hereunder, the Master Servicer is authorized, subject to Section

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<PAGE>

              3.10(b), to take or enter into an assumption and modification
              agreement from or with the person to whom such property has been
              or is about to be conveyed, pursuant to which such person becomes
              liable under the Mortgage Note and, unless prohibited by
              applicable state law, the Mortgagor remains liable thereon,
              provided that the Mortgage Loan shall continue to be covered (if
              so covered before the Master Servicer enters such agreement) by
              the applicable Required Insurance Policies. The Master Servicer,
              subject to Section 3.10(b), is also authorized with the prior
              approval of the insurers under any Required Insurance Policies to
              enter into a substitution of liability agreement with such Person,
              pursuant to which the original Mortgagor is released from
              liability and such Person is substituted as Mortgagor and becomes
              liable under the Mortgage Note. Notwithstanding the foregoing, the
              Master Servicer shall not be deemed to be in default under this
              Section by reason of any transfer or assumption which the Master
              Servicer reasonably believes it is restricted by law from
              preventing, for any reason whatsoever.

         (b)  Subject to the Master Servicer's duty to enforce any due-on-sale
              clause to the extent set forth in Section 3.10(a) hereof, in any
              case in which a Mortgaged Property has been 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 that requires the signature of the Trustee, or if
              an instrument of release signed by the Trustee is required
              releasing the Mortgagor from liability on the Mortgage Loan, the
              Master Servicer shall prepare and deliver or cause to be prepared
              and delivered to the Trustee for signature and shall direct, in
              writing, the Trustee to execute the assumption agreement with the
              Person to whom the Mortgaged Property is to be conveyed and such
              modification agreement or supplement to the Mortgage Note or
              Mortgage or other instruments as are reasonable or necessary to
              carry out the terms of the Mortgage Note or Mortgage or otherwise
              to comply with any applicable laws regarding assumptions or the
              transfer of the Mortgaged Property to such Person. In connection
              with any such assumption, no material term of the Mortgage Note
              may be changed. In addition, the substitute Mortgagor and the
              Mortgaged Property must be acceptable to the Master Servicer in
              accordance with its underwriting standards as then in effect.
              Together with each such substitution, assumption or other
              agreement or instrument delivered to the Trustee for execution by
              it, the Master Servicer shall deliver an Officer's Certificate
              signed by a Servicing Officer stating that the requirements of
              this subsection have been met in connection therewith. The Master
              Servicer shall notify the Trustee that any such substitution or
              assumption agreement has been completed by forwarding to the
              Trustee the original of such substitution or assumption agreement,
              which in the case of the original shall be added to the related
              Mortgage File and shall, for all purposes, be considered a part of
              such Mortgage File to the same extent as all other documents and
              instruments constituting a part thereof. Any fee collected by the
              Master Servicer for entering into an assumption or substitution of
              liability agreement will be retained by the Master Servicer as
              additional servicing compensation.

                                       59
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              SECTION 3.11 Realization Upon Defaulted Mortgage Loans; Repurchase
         of Certain Mortgage Loans.

         The Master Servicer shall use reasonable efforts to foreclose upon or
otherwise comparably convert the ownership of properties securing such of the
Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments. In
connection with such foreclosure or other conversion, the Master Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be normal and usual in its general mortgage servicing activities and
meet the requirements of the insurer under any Required Insurance Policy;
provided, however, that the Master Servicer shall not be required to expend its
own funds in connection with any foreclosure or towards the restoration of any
property unless it shall determine (i) that such restoration and/or foreclosure
will increase the proceeds of liquidation of the Mortgage Loan after
reimbursement to itself of such expenses and (ii) that such expenses will be
recoverable to it through Liquidation Proceeds (respecting which it shall have
priority for purposes of withdrawals from the Certificate Account). The Master
Servicer shall be responsible for all other costs and expenses incurred by it in
any such proceedings; provided, however, that it shall be entitled to
reimbursement thereof from the liquidation proceeds with respect to the related
Mortgaged Property, as provided in the definition of Liquidation Proceeds. If
the Master Servicer has knowledge that a Mortgaged Property which the Master
Servicer is contemplating acquiring in foreclosure or by deed in lieu of
foreclosure is located within a 1 mile radius of any site listed in the
Expenditure Plan for the Hazardous Substance Clean Up Bond Act of 1984 or other
site with environmental or hazardous waste risks known to the Master Servicer,
the Master Servicer will, prior to acquiring the Mortgaged Property, consider
such risks and only take action in accordance with its established environmental
review procedures.

         With respect to any REO Property, the deed or certificate of sale shall
be taken in the name of the Trust Fund for the benefit of the
Certificateholders, or its nominee, on behalf of the Certificateholders. The
Master Servicer shall ensure that the title to such REO Property references the
Pooling and Servicing Agreement and the Trust Fund's capacity thereunder.
Pursuant to its efforts to sell such REO Property, the Master Servicer shall
either itself or through an agent selected by the Master Servicer protect and
conserve such REO Property in the same manner and to such extent as is customary
in the locality where such REO Property is located. The Master Servicer shall
perform the tax reporting and withholding required by Sections 1445 and 6050J of
the Code with respect to foreclosures and abandonments, the tax reporting
required by Section 6050H of the Code with respect to the receipt of mortgage
interest from individuals and any tax reporting required by Section 6050P of the
Code with respect to the cancellation of indebtedness by certain financial
entities, by preparing such tax and information returns as may be required, in
the form required, and delivering the same to the Trustee for filing.

         In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property
prior to the close of the third taxable year after the taxable year of its
acquisition by the Trust Fund unless the Trustee shall have been supplied with
an Opinion of Counsel to the effect that the holding by the Trust Fund of such
Mortgaged Property subsequent to such three-year period will not result in the
imposition of taxes on "prohibited transactions" of any REMIC hereunder as
defined in Section 860F of the Code or cause any REMIC created hereunder to fail
to qualify as a REMIC at any time that any Certificates are outstanding, in
which case the Trust Fund may continue to hold such Mortgaged Property (subject
to any conditions contained in such Opinion of Counsel). Notwithstanding any
other provision of this Agreement, no Mortgaged Property acquired by the Trust
Fund shall be rented (or allowed to continue to be rented) or otherwise used for
the production of income by or on behalf of the Trust Fund 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 hereunder to the imposition of any federal,
state or local income taxes on the income earned from such Mortgaged Property
under Section 860G(c) of the Code or otherwise, unless the Master Servicer has
agreed to indemnify and hold harmless the Trust Fund with respect to the
imposition of any such taxes.
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         In the event of a default on a Mortgage Loan one or more of whose
obligor is not a United States Person, as that term is defined in Section
7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a
deed in lieu of foreclosure (together, "foreclosure") in respect of such
Mortgage Loan, the Master Servicer will cause compliance with the provisions of
Treasury Regulation Section 1.1445-2(d)(3) (or any successor thereto) necessary
to assure that no withholding tax obligation arises with respect to the proceeds
of such foreclosure except to the extent, if any, that proceeds of such
foreclosure are required to be remitted to the obligors on such Mortgage Loan.

         The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of such foreclosure would exceed the costs and expenses of bringing
such a proceeding. The income earned from the management of any REO Properties,
net of reimbursement to the Master Servicer for expenses incurred (including any
property or other taxes) in connection with such management and net of
unreimbursed Master Servicing Fees, Advances and Servicing Advances, shall be
applied to the payment of principal of and interest on the related defaulted
Mortgage Loans (with interest accruing as though 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 Certificate Account. To the
extent the net income received during any calendar month is in excess of the
amount attributable to amortizing principal and accrued interest at the related
Mortgage Rate on the related Mortgage Loan for such calendar month, such excess
shall be considered to be a partial prepayment of principal of the related
Mortgage Loan.

         The proceeds from any liquidation of a Mortgage Loan, as well as any
income from an REO Property, will be applied in the following order of priority:
first, to reimburse the Master Servicer for any related unreimbursed Servicing
Advances and Master Servicing Fees; second, to reimburse the Master Servicer for
any unreimbursed Advances; third, to reimburse the Certificate Account for any
Nonrecoverable Advances (or portions thereof) that were previously withdrawn by
the Master Servicer pursuant to Section 3.8(a)(iii) that related to such
Mortgage Loan; fourth, to accrued and unpaid interest (to the extent no Advance
has been made for such amount or any such Advance has been reimbursed) on the
Mortgage Loan or related REO Property, at the Adjusted Net Mortgage Rate to the
Due Date occurring in the month in which such amounts are required to be
distributed; and fifth, as a recovery of principal of the Mortgage Loan. Excess
Proceeds, if any, from the liquidation of a Liquidated Mortgage Loan will be
retained by the Master Servicer as additional servicing compensation pursuant to
Section 3.14.

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         The Master Servicer, with the consent of the Trustee, shall have the
right to purchase for its own account from the Trust Fund any Mortgage Loan
which is 91 days or more delinquent at a price equal to the Purchase Price. The
Purchase Price for any Mortgage Loan purchased hereunder shall be deposited in
the Certificate Account and the Trustee, upon receipt of a certificate from the
Master Servicer in the form of Exhibit M hereto, shall release or cause to be
released to the purchaser of such Mortgage Loan the related Mortgage File and
shall execute and deliver such instruments of transfer or assignment prepared by
the purchaser of such Mortgage Loan, in each case without recourse, as shall be
necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan
released pursuant hereto and the purchaser of such Mortgage Loan shall succeed
to all the Trustee's right, title and interest in and to such Mortgage Loan and
all security and documents related thereto. Such assignment shall be an
assignment outright and not for security. The purchaser of such Mortgage Loan
shall thereupon own such Mortgage Loan, and all security and documents, free of
any further obligation to the Trustee or the Certificateholders with respect
thereto.

              SECTION 3.12 Trustee to Cooperate; Release of Mortgage Files.

         Upon the payment in full of any Mortgage Loan, or the receipt by the
Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer will immediately notify
the Trustee by delivering, or causing to be delivered a "Request for Release"
substantially in the form of Exhibit M. Upon receipt of such request, the
Trustee shall or shall cause the Custodian to promptly release the related
Mortgage File to the Master Servicer, and the Trustee shall at the Master
Servicer's direction execute and deliver to the Master Servicer the request for
reconveyance, deed of reconveyance or release or satisfaction of mortgage or
such instrument releasing the lien of the Mortgage in each case provided by the
Master Servicer, together with the Mortgage Note with written evidence of
cancellation thereon. Expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance shall be chargeable to the related
Mortgagor. From time to time and as shall be appropriate for the servicing or
foreclosure of any Mortgage Loan, including for such purpose, collection under
any policy of flood insurance, any fidelity bond or errors or omissions policy,
or for the purposes of effecting a partial release of any Mortgaged Property
from the lien of the Mortgage or the making of any corrections to the Mortgage
Note or the Mortgage or any of the other documents included in the Mortgage
File, the Trustee shall, upon delivery to the Trustee of a Request for Release
in the form of Exhibit L signed by a Servicing Officer, release the Mortgage
File to the Master Servicer. Subject to the further limitations set forth below,
the Master Servicer shall cause the Mortgage File or documents so released to be
returned to the Trustee or its Custodian when the need therefor by the Master
Servicer no longer exists, unless the Mortgage Loan is liquidated and the
proceeds thereof are deposited in the Certificate Account, in which case the
Master Servicer shall deliver to the Trustee a Request for Release in the form
of Exhibit M, signed by a Servicing Officer.

         If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Master Servicer shall deliver or cause to be delivered to the Trustee, for
signature, as appropriate, any court pleadings, requests for trustee's sale or
other documents necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity.

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              SECTION 3.13 Documents Records and Funds in Possession of Master
         Servicer to be Held for the Trustee.

         Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Trustee as required by this Agreement all
documents and instruments in respect of a Mortgage Loan coming into the
possession of the Master Servicer from time to time and shall account fully to
the Trustee for any funds received by the Master Servicer or which otherwise are
collected by the Master Servicer as Liquidation Proceeds or Insurance Proceeds
in respect of any Mortgage Loan. All Mortgage Files and funds collected or held
by, or under the control of, the Master Servicer in respect of any Mortgage
Loans, whether from the collection of principal and interest payments or from
Liquidation Proceeds, including but not limited to, any funds on deposit in the
Certificate Account, shall be held by the Master Servicer for and on behalf of
the Trustee and shall be and remain the sole and exclusive property of the
Trustee, subject to the applicable provisions of this Agreement. The Master
Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the Certificate Account, Distribution
Account or any Escrow Account, or any funds that otherwise are or may become due
or payable to the Trustee for the benefit of the Certificateholders, to any
claim, lien, security interest, judgment, levy, writ of attachment or other
encumbrance, or assert by legal action or otherwise any claim or right of setoff
against any Mortgage File or any funds collected on, or in connection with, a
Mortgage Loan, except, however, that the Master Servicer shall be entitled to
set off against and deduct from any such funds any amounts that are properly due
and payable to the Master Servicer under this Agreement.

              SECTION 3.14 Master Servicing Compensation.

         As compensation for its activities as Master Servicer hereunder and as
a subservicer pursuant to the Servicing Rights Transfer and Subservicing
Agreement, the Master Servicer shall be entitled to retain or withdraw from the
Certificate Account an amount equal to the Master Servicing Fee for each
Mortgage Loan, provided that the aggregate Master Servicing Fee with respect to
any Distribution Date shall be reduced (i) by the amount of any Compensating
Interest paid by the Master Servicer with respect to such Distribution Date, and
(ii) with respect to the first Distribution Date, an amount equal to any amount
to be deposited into the Distribution Account by the Depositor pursuant to
Section 2.1(a) and not so deposited.

         Additional servicing compensation in the form of (i) Retained Yield,
Excess Proceeds, Prepayment Interest Excess and all income and gain net of any
losses realized from Permitted Investments and (ii) prepayment penalties,
assumption fees and late payment charges in each case under the circumstances
and in the manner set forth in the applicable Mortgage Note or Mortgage shall be
retained by the Master Servicer to the extent not required to be deposited in
the Certificate Account pursuant to Section 3.5 hereof; provided that in the
event the Master Servicer is terminated pursuant to Section 7.1, the Retained
Yield shall be payable to First Horizon Home Loan Corporation in its individual
capacity and shall not be payable to the Trustee or any successor to the Master
Servicer. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its master servicing activities hereunder (including
payment of any premiums for hazard insurance and any Primary Insurance Policy
and maintenance of the other forms of insurance coverage required by this
Agreement) and shall not be entitled to reimbursement therefor except as
specifically provided in this Agreement.

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<PAGE>

              SECTION 3.15 Access to Certain Documentation.

         The Master Servicer shall provide to the OTS and the FDIC and to
comparable regulatory authorities supervising Holders of Certificates or
Certificate Owners and the examiners and supervisory agents of the OTS, the FDIC
and such other authorities, access to the documentation regarding the Mortgage
Loans required by applicable regulations of the OTS and the FDIC. Such access
shall be afforded without charge, but only upon reasonable and prior written
request and during normal business hours at the offices designated by the Master
Servicer. Nothing in this Section shall limit the obligation of the Master
Servicer to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of the Master Servicer to provide
access as provided in this Section as a result of such obligation shall not
constitute a breach of this Section.

              SECTION 3.16 Annual Statement as to Compliance.

         The Master Servicer shall deliver to the Depositor and the Trustee on
or before 120 days after the end of the Master Servicer's fiscal year,
commencing with its 2005 fiscal year, an Officer's Certificate stating, as to
the signer thereof, that (i) a review of the activities of the Master Servicer
during the preceding calendar year and of the performance of the Master Servicer
under this Agreement has been made under such officer's supervision and (ii) to
the best of such officer's knowledge, based on such review, the Master Servicer
has fulfilled all its obligations under this Agreement throughout such year, or,
if there has been a default in the fulfillment of any such obligation,
specifying each such default known to such officer and the nature and status
thereof. The Trustee shall forward a copy of each such statement to each Rating
Agency.

              SECTION 3.17 Annual Independent Public Accountants' Servicing
         Statement; Financial Statements.

         On or before 120 days after the end of the Master Servicer's fiscal
year, commencing with its 2005 fiscal year, the Master Servicer at its expense
shall cause a nationally or regionally recognized firm of independent public
accountants (who may also render other services to the Master Servicer, the
Seller or any affiliate thereof) which is a member of the American Institute of
Certified Public Accountants to furnish a statement to the Trustee and the
Depositor to the effect that-such firm has examined certain documents and
records relating to the servicing of the Mortgage Loans under this Agreement or
of mortgage loans under pooling and servicing agreements substantially similar
to this Agreement (such statement to have attached thereto a schedule setting
forth the pooling and servicing agreements covered thereby) and that, on the
basis of such examination, conducted substantially in compliance with the
Uniform Single Attestation Program for Mortgage Bankers or the Audit Program for
Mortgages serviced for FNMA and FHLMC, such servicing has been conducted in
compliance with such pooling and servicing agreements except for such
significant exceptions or errors in records that, in the opinion of such firm,
the Uniform Single Attestation Program for Mortgage Bankers or the Audit Program
for Mortgages serviced for FNMA and FHLMC requires it to report. In rendering
such statement, such firm may rely, as to matters relating to direct servicing
of mortgage loans by Subservicers, upon comparable statements for examinations
conducted substantially in compliance with the Uniform Single Attestation
Program for Mortgage Bankers or the Audit Program for Mortgages serviced for
FNMA and FHLMC (rendered within one year of such statement) of independent
public accountants with respect to the related Subservicer. Copies of such
statement shall be provided by the Trustee to any Certificateholder or
Certificate Owner upon request at the Master Servicer's expense, provided such
statement is delivered by the Master Servicer to the Trustee.

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              SECTION 3.18 Errors and Omissions Insurance; Fidelity Bonds.

         The Master Servicer shall for so long as it acts as master servicer
under this Agreement, obtain and maintain in force (a) a policy or policies of
insurance covering errors and omissions in the performance of its obligations as
Master Servicer hereunder and (b) a fidelity bond in respect of its officers,
employees and agents. Each such policy or policies and bond shall, together,
comply with the requirements from time to time of FNMA or FHLMC for persons
performing servicing for mortgage loans purchased by FNMA or FHLMC. In the event
that any such policy or bond ceases to be in effect, the Master Servicer shall
obtain a comparable replacement policy or bond from an insurer or issuer,
meeting the requirements set forth above as of the date of such replacement.

                                   ARTICLE IV
                DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

              SECTION 4.1 Advances.

         The Master Servicer shall determine on the Business Day prior to each
Master Servicer Advance Date whether it is required to make an Advance pursuant
to the definition thereof. If the Master Servicer determines it is required to
make an Advance, it shall, on or before the Master Servicer Advance Date, either
(i) deposit into the Certificate Account an amount equal to the Advance or (ii)
make an appropriate entry in its records relating to the Certificate Account
that any Amount Held for Future Distribution has been used by the Master
Servicer in discharge of its obligation to make any such Advance. Any funds so
applied shall be replaced by the Master Servicer by deposit in the Certificate
Account no later than the close of business on the next Business Day preceding
the next Master Servicer Advance Date. The Master Servicer shall be entitled to
be reimbursed from the Certificate Account for all Advances of its own funds
made pursuant to this Section as provided in Section 3.8. The obligation to make
Advances with respect to any Mortgage Loan shall continue until the ultimate
disposition of the REO Property or Mortgaged Property relating to such Mortgage
Loan. As to any Distribution Date, the Master Servicer shall inform the Trustee
in writing of the amount of the Advance to be made by the Master Servicer on
each Master Servicer Advance Date no later 1:30 p.m. Central time on the second
Business Day immediately preceding such Distribution Date.

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         The Master Servicer shall deliver to the Trustee on the related Master
Servicer Advance Date an Officer's Certificate of a Servicing Officer indicating
the amount of any proposed Advance determined by the Master Servicer to be a
Nonrecoverable Advance.

              SECTION 4.2 Priorities of Distribution.

         (a)  On each Distribution Date, the Trustee shall withdraw the
              Available Funds from the Distribution Account and apply such funds
              to distributions on the Certificates in the following order and
              priority and, in each case, to the extent of Available Funds
              remaining:

              (i)    to the Classes of Senior Certificates entitled to
                     distributions of interest, the Accrued Certificate Interest
                     on each such Class for such Distribution Date, any
                     shortfall in available amounts being allocated among such
                     Classes in proportion to the amount of Accrued Certificate
                     Interest otherwise distributable thereon;

              (ii)   to the Classes of Senior Certificates entitled to
                     distributions of interest, any Accrued Certificate Interest
                     thereon remaining undistributed from previous Distribution
                     Dates, to the extent of remaining Available Funds, any
                     shortfall in available amounts being allocated among such
                     Classes in proportion to the amount of such Accrued
                     Certificate Interest remaining undistributed for each such
                     Class for such Distribution Date;

              (iii)  (1) to the Classes of Senior Certificates entitled to
                     distributions of principal, other than the Principal Only
                     Certificates, in reduction of the Class Certificate
                     Balances thereof, to the extent of remaining Available
                     Funds, the Senior Optimal Principal Amount for such
                     Distribution Date, in the order of priority set forth below
                     in Section 4.2(b), until the respective Class Certificate
                     Balances thereof have been reduced to zero, and (2)
                     concurrently with the Senior Certificates, from the
                     Available Funds, to the Principal Only Certificates, the
                     Class A-PO Principal Distribution Amount for such
                     Distribution Date until the Class Certificate Balance
                     thereof has been reduced to zero;

              (iv)   to the Class A-PO Certificates, the Class A-PO Deferred
                     Amount for such Distribution Date, until the Class
                     Certificate Balance thereof has been reduced to zero;
                     provided that, (1) on any Distribution Date, distributions
                     pursuant to this subsection shall not exceed the
                     Subordinated Optimal Principal Amount for such Distribution
                     Date, (2) such distributions shall not reduce the Class
                     Certificate Balances of the Principal Only Certificates and
                     (3) no distribution will be made in respect of the Class
                     A-PO Deferred Amount after the Cross-over Date;

              (v)    to the Class B-1 Certificates, to the extent of remaining
                     Available Funds, in the following order: (1) the Accrued
                     Certificate Interest thereon for such Distribution Date,
                     (2) any Accrued Certificate Interest thereon remaining
                     undistributed from previous Distribution Dates and (3) such
                     Class' Allocable Share for such Distribution Date;

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<PAGE>

              (vi)   to the Class B-2 Certificates, to the extent of remaining
                     Available Funds, in the following order: (1) the Accrued
                     Certificate Interest thereon for such Distribution Date,
                     (2) any Accrued Certificate Interest thereon remaining
                     undistributed from previous Distribution Dates and (3) such
                     Class' Allocable Share for such Distribution Date;

              (vii)  to the Class B-3 Certificates, to the extent of remaining
                     Available Funds, in the following order: (1) the Accrued
                     Certificate Interest thereon for such Distribution Date,
                     (2) any Accrued Certificate Interest thereon remaining
                     undistributed from previous Distribution Dates and (3) such
                     Class' Allocable Share for such Distribution Date;

              (viii) to the Class B-4 Certificates, to the extent of remaining
                     Available Funds, in the following order: (1) the Accrued
                     Certificate Interest thereon for such Distribution Date,
                     (2) any Accrued Certificate Interest thereon remaining
                     undistributed from previous Distribution Dates and (3) such
                     Class' Allocable Share for such Distribution Date;

              (ix)   to the Class B-5 Certificates, to the extent of remaining
                     Available Funds, in the following order: (1) the Accrued
                     Certificate Interest thereon for such Distribution Date,
                     (2) any Accrued Certificate Interest thereon remaining
                     undistributed from previous Distribution Dates and (3) such
                     Class' Allocable Share for such Distribution Date; and

              (x)    to the Class B-6 Certificates, to the extent of remaining
                     Available Funds, in the following order: (1) the Accrued
                     Certificate Interest thereon for such Distribution Date,
                     (2) any Accrued Certificate Interest thereon remaining
                     undistributed from previous Distribution Dates and (3) such
                     Class' Allocable Share for such Distribution Date.

         (b)  Amounts allocated to the Senior Certificates pursuant to Section
              4.2(a)(iii)(1) above will be distributed sequentially, in the
              following order of priority:

              (i)    to the Class A-R Certificates, until the Class Certificate
                     Balance thereof has been reduced to zero;

              (ii)   to the Class A-1 Certificates, in an amount up to $100 for
                     such Distribution Date, until the Class Certificate Balance
                     thereof has been reduced to zero

              (iii)  concurrently, to the Class A-4A and Class A-4B
                     Certificates, pro rata, in an amount up to the NAS
                     Principal Distribution Amount for such Distribution Date,
                     until their respective Class Certificate Balances have each
                     been reduced to zero;

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<PAGE>

              (iv)   to the Class A-5 Certificates, in an amount up to
                     $1,345,198 for such Distribution Date, until the Class
                     Certificate Balance thereof has been reduced to zero;

              (v)    sequentially, to the Class A-1, Class A-5 and Class A-3
                     Certificates, in that order, until their respective Class
                     Certificate Balances have each been reduced to zero; and

              (vi)   concurrently, to the Class A-4A and Class A-4B
                     Certificates, pro rata, without regard to the NAS Principal
                     Distribution Amount for such Distribution Date, until their
                     respective Class Certificate Balances have each been
                     reduced to zero.

         (c)  On each Distribution Date, the Trustee shall distribute to the
              Holders of the Class A-R Certificates representing the RL Interest
              and RU Interest, any Available Funds remaining in the related
              REMIC created hereunder for such Distribution Date after
              application of all amounts described in clauses (a) and (b) of
              this Section 4.2. Any distributions pursuant to this subsection
              (c) shall not reduce the Class Certificate Balances of the Class
              A-R Certificates.

         (d)  On and after the Cross-Over Date, the amount distributable to the
              Senior Certificates pursuant to Section 4.2(a)(iii) for the
              related Distribution Date shall be allocated among the Classes of
              Senior Certificates (other than the Class A-PO Certificates), pro
              rata, on the basis of their respective Class Certificate Balances
              immediately prior to such Distribution Date, regardless of the
              priorities and amounts set forth in Section 4.2(b).

         (e)  If on any Distribution Date (i) the Class Certificate Balance of
              any Class of Subordinated Certificates (other than the Class of
              Subordinated Certificates with the highest priority of
              distribution) for which the related Class Prepayment Distribution
              Trigger was satisfied on such Distribution Date is reduced to zero
              and (ii) amounts distributable to such Class or Classes of
              Subordinated Certificates pursuant to clauses (2), (3) and (5) of
              the definition of Subordinated Optimal Principal Amount remain
              undistributed on such Distribution Date after all amounts
              otherwise distributable on such date pursuant to clauses (v)
              through (x) of Section 4.2(a) have been distributed, such amounts,
              to the extent of such Class' remaining Allocable Share, shall be
              distributed on such Distribution Date to the remaining Classes of
              Subordinated Certificates on a pro rata basis, subject to the
              priority of payments described in Section 4.2(a)(iii).

         (f)  In the event that in any calendar month the Master Servicer
              recovers an amount (an "Unanticipated Recovery") in respect of
              principal of a Mortgage Loan which had previously been allocated
              as a Realized Loss to any Class of Certificates pursuant to
              Section 4.4, on the Distribution Date in the next succeeding
              calendar month, the Trustee shall withdraw the Unanticipated
              Recovery from the Distribution Account and sequentially increase,
              in order of payment priority, the Class Certificate Balance of

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<PAGE>

              each Class of Certificates to which such Realized Losses were
              previously allocated by the amount of such Unanticipated Recovery,
              but not to exceed the amount of Realized Losses previously
              allocated to such Class pursuant to Section 4.4, and shall
              distribute the amount of such Unanticipated Recovery to each such
              Class of Certificates in the order of payment priority described
              in Section 4.2(a) of this Agreement. Holders of any Class of
              Certificates for which the Class Certificate Balance has been
              increased by the amount of any Unanticipated Recovery will not be
              entitled to any payment in respect of Accrued Certificate Interest
              on the amount of any such increase for any Interest Accrual Period
              preceding the Distribution Date on which such increase occurs.
              When the Class Certificate Balance of a Class of Certificates has
              been reduced to zero, the Holders of such Class shall not be
              entitled to any share of an Unanticipated Recovery, and such
              Unanticipated Recovery shall be allocated among all outstanding
              Classes of Certificates entitled thereto in accordance with the
              preceding sentence, subject to the remainder of this subsection
              (f). In the event that (i) any Unanticipated Recovery remains
              undistributed in accordance with the preceding sentence or (ii)
              the amount of an Unanticipated Recovery exceeds the amount of the
              Realized Loss previously allocated to any outstanding Classes with
              respect to the related Mortgage Loan, on the applicable
              Distribution Date the Trustee shall distribute such Unanticipated
              Recoveries in accordance with the priorities set forth in Section
              4.2(a)(iii).

              For purposes of the preceding paragraph, the share of an
         Unanticipated Recovery allocable to any Class of Certificates with
         respect to a Mortgage Loan shall be (i) with respect to the Principal
         Only Certificates, based on the applicable PO Percentage of the
         principal portion of the Realized Loss previously allocated thereto
         with respect to such Mortgage Loan (or all Mortgage Loans for purposes
         of the next to last sentence of the preceding paragraph), and (ii) with
         respect to any other Class of Certificates, based on its pro rata share
         (in proportion to the Class Certificate Balances thereof with respect
         to such Distribution Date) of the applicable Non-PO Percentage of the
         principal portion of any such Realized Loss previously allocated with
         respect to such Mortgage Loan (or Loans); provided however, that (i)
         the share of an Unanticipated Recovery allocable to a Principal Only
         Certificate with respect to any Mortgage Loan (or Loans) shall be
         reduced by the applicable PO Percentage of the aggregate amount
         previously distributed to such Class in respect of such Mortgage Loan
         (or Loans) and (ii) the amount by which the distributions to the
         Principal Only Certificates have been so reduced shall be distributed
         to the Classes of Certificates described in clause (ii) of the
         preceding paragraph in the same proportion as described in such clause
         (ii). For purposes of the preceding sentence, any Class A-PO Deferred
         Amount distributable to a Principal Only Certificate on previous
         Distribution Dates shall be deemed to have been allocated in respect of
         the Mortgage Loans as to which the applicable PO Percentage of the
         principal portion of Realized Losses has previously been allocated to
         such Class on a pro rata basis (based on the amount of Realized Losses
         so allocated).

              SECTION 4.3 Method of Distribution.

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<PAGE>

         (a)  All distributions with respect to each Class of Certificates on
              each Distribution Date shall be made pro rata among the
              outstanding Certificates of such Class, based on the Percentage
              Interest in such Class represented by each Certificate. Payments
              to the Certificateholders on each Distribution Date will be made
              by the Trustee to the Certificateholders of record on the related
              Record Date by check or money order mailed to a Certificateholder
              at the address appearing in the Certificate Register, or upon
              written request by such Certificateholder to the Trustee made not
              later than the applicable Record Date, by wire transfer to a U.S.
              depository institution acceptable to the Trustee, or by such other
              means of payment as such Certificateholder and the Trustee shall
              agree.

         (b)  Each distribution with respect to a Book-Entry Certificate shall
              be paid to the Depository, which shall credit the amount of such
              distribution to the accounts of its Depository Participants in
              accordance with its normal procedures. Each Depository Participant
              shall be responsible for disbursing such distribution to the
              Certificate Owners that it represents and to each financial
              intermediary for which it acts as agent. Each such financial
              intermediary shall be responsible for disbursing funds to the
              Certificate Owners that it represents. All such credits and
              disbursements with respect to a Book-Entry Certificate are to be
              made by the Depository and the Depository Participants in
              accordance with the provisions of the applicable Certificates.
              Neither the Trustee nor the Master Servicer shall have any
              responsibility therefor except as otherwise provided by applicable
              law.

         (c)  The Trustee shall withhold or cause to be withheld such amounts as
              it reasonably determines are required by the Code (giving full
              effect to any exemptions from withholding and related
              certifications required to be furnished by Certificateholders or
              Certificate Owners and any reductions to withholding by virtue of
              any bilateral tax treaties and any applicable certification
              required to be furnished by Certificateholders or Certificate
              Owners with respect thereto) from distributions to be made to
              Non-U.S. Persons. If the Trustee reasonably determines that a more
              accurate determination of the amount required to be withheld for a
              distribution can be made within a reasonable period after the
              scheduled date for such distribution, it may hold such
              distribution in trust for a Holder of a Residual Certificate until
              such determination can be made. For the purposes of this
              paragraph, a "Non-U.S. Person" is (i) an individual other than a
              citizen or resident of the United States, (ii) a partnership,
              corporation or entity treated as a partnership or corporation for
              U.S. federal income tax purposes not formed under the laws of the
              United States, any state thereof or the District of Columbia
              (unless, in the case of a partnership, Treasury regulations
              provide otherwise), (iii) any estate, the income of which is not
              subject to U.S. federal income taxation, regardless of source, and
              (iv) any trust, other than a trust that a court within the United
              States is able to exercise primary supervision over the
              administration of the trust and one or more U.S. Persons have the
              authority to control all substantial decisions of the trust.

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              SECTION 4.4 Allocation of Losses.

         (a)  On or prior to each Determination Date, the Master Servicer shall
              determine the amount of any Realized Loss in respect of each
              Mortgage Loan that occurred during the immediately preceding
              calendar month.

         (b)  The principal portion of each Realized Loss shall be allocated as
              follows:

              (i)    with respect to any Distribution Date, the applicable PO
                     Percentage of the principal portion of any such Realized
                     Loss on a Discount Mortgage Loan shall be allocated to the
                     Class A-PO Certificates until the Class Certificate Balance
                     thereof has been reduced to zero; and

              (ii)   with respect to any Distribution Date, prior to the
                     Cross-over Date, the applicable Non-PO Percentage of the
                     principal portion of any such Realized Loss (except Excess
                     Losses) (or the applicable PO Percentage thereof, in the
                     case of the Class A-PO Certificates) shall be allocated in
                     the following order of priority:

                     first, to the Class B-6 Certificates until the Class
                     Certificate Balance thereof has been reduced to zero;

                     second, to the Class B-5 Certificates until the Class
                     Certificate Balance thereof has been reduced to zero;

                     third, to the Class B-4 Certificates until the Class
                     Certificate Balance thereof has been reduced to zero;

                     fourth, to the Class B-3 Certificates until the Class
                     Certificate Balance thereof has been reduced to zero;

                     fifth, to the Class B-2 Certificates until the Class
                     Certificate Balance thereof has been reduced to zero;

                     sixth, to the Class B-1 Certificates until the Class
                     Certificate Balance thereof has been reduced to zero;

                     seventh, to the Classes of Senior Certificates (other than
                     the Class A-PO Certificates), pro rata, in accordance with
                     their respective Class Certificate Balances.

              (iii)  from and after the Cross-over Date, the applicable Non-PO
                     Percentage of the principal portion of any Realized Loss
                     shall be allocated among the outstanding classes of Senior
                     Certificates entitled to principal distributions (other
                     than the Class A-4A Certificates, as long as the Class A-4B
                     Certificates are outstanding, the Notional Amount
                     Certificates and the Class A-PO Certificates), pro rata,
                     based upon their respective Class Certificate Balances.

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         (c)  From and after the Cross-over Date, the principal portion of
              Realized Losses (other than Excess Losses) on the Mortgage Loans
              allocable to the Class A-4A Certificates will be borne first by
              the Class A-4B Certificates until the Class Certificate Balance of
              the A-4B Certificates is reduced to zero (in addition to other
              Realized Losses allocated to the Class A-4B Certificates), and
              then by the Class A-4A Certificates until the Class Certificate
              Balance of the Class A-4A Certificates is reduced to zero.

         (d)  With respect to any Distribution Date, the applicable Non-PO
              Percentage of the principal portion of any Excess Loss (other than
              Excess Bankruptcy Losses attributable to Debt Service Reductions)
              shall be allocated pro rata to each Class of Certificates (other
              than the Class A-PO Certificates) based on their respective Class
              Certificate Balances.

         (e)  Any Realized Losses allocated to a Class of Certificates pursuant
              to Section 4.4(b) or (c) shall be allocated among the Certificates
              of such Class in proportion to their respective Class Certificate
              Balances. Any allocation of Realized Losses pursuant to this
              paragraph (e) shall be accomplished by reducing the Class
              Certificate Balances of the related Certificates on the related
              Distribution Date in accordance with Section 4.4(f).

         (f)  Realized Losses allocated in accordance with this Section 4.4
              shall be allocated on the Distribution Date in the month following
              the month in which such loss was incurred and in the case of the
              principal portion thereof, after giving effect to the
              distributions made on such Distribution Date. The aggregate amount
              of Realized Losses to be allocated to the Principal Only
              Certificates on such Distribution Date will be taken into account
              in determining distributions in respect of any Class A-PO Deferred
              Amount for such Distribution Date.

         (g)  On each Distribution Date, the Master Servicer shall determine the
              Subordinated Certificate Writedown Amount, if any. Any such
              Subordinated Certificate Writedown Amount shall effect, without
              duplication of any other provision in this Section 4.4 that
              provides for a reduction in the Class Certificate Balance of the
              Subordinated Certificates, a corresponding reduction in the Class
              Certificate Balance of the Subordinated Certificates, which
              reduction shall occur on such Distribution Date after giving
              effect to distributions made on such Distribution Date.

         (h)  Notwithstanding the foregoing, no such allocation of any Realized
              Loss shall be made on a Distribution Date to a Class of
              Certificates to the extent that such allocation would result in
              the reduction of the aggregate Class Certificate Balances of all
              Classes of Certificates as of such Distribution Date, after giving
              effect to all distributions and prior allocations of Realized
              Losses on such date, to an amount less than the Pool Principal
              Balance as of the first day of the month of such Distribution
              Date, less any Deficient Valuations occurring on or prior to the
              Bankruptcy Coverage Termination Date (such limitation, the "Loss
              Allocation Limitation").

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              SECTION 4.5 Reserved.

              SECTION 4.6 Monthly Statements to Certificateholders.

         (a)  Not later than each Distribution Date, the Trustee shall prepare
              and cause to be forwarded by first class mail to each
              Certificateholder, the Master Servicer, the Depositor and each
              Rating Agency a statement setting forth with respect to the
              related distribution and/or may post such statement on its website
              located at www.bnyinvestorreporting.com:

              (i)    the amount thereof allocable to principal, separately
                     identifying the aggregate amount of any Principal
                     Prepayments and Liquidation Proceeds included therein;

              (ii)   the amount thereof allocable to interest, the amount of any
                     Compensating Interest included in such distribution and any
                     remaining Net Interest Shortfalls after giving effect to
                     such distribution;

              (iii)  if the distribution to the Holders of such Class of
                     Certificates is less than the full amount that would be
                     distributable to such Holders if there were sufficient
                     funds available therefor, the amount of the shortfall and
                     the allocation thereof as between principal and interest;

              (iv)   the Class Certificate Balance of each Class of Certificates
                     after giving effect to the distribution of principal on
                     such Distribution Date;

              (v)    the Pool Principal Balance for the following Distribution
                     Date;

              (vi)   the Senior Percentage and Subordinated Percentage for the
                     following Distribution Date;

              (vii)  the amount of the Master Servicing Fees paid to or retained
                     by the Master Servicer with respect to such Distribution
                     Date;

              (viii) the Pass-Through Rate for each such Class of Certificates
                     with respect to such Distribution Date;

              (ix)   the amount of Advances included in the distribution on such
                     Distribution Date and the aggregate amount of Advances
                     outstanding as of the close of business on such
                     Distribution Date;

              (x)    the number and aggregate principal amounts of Mortgage
                     Loans (A) delinquent (exclusive of Mortgage Loans in
                     foreclosure) (1) 1 to 30 days (2) 31 to 60 days (3) 61 to
                     90 days and (4) 91 or more days and (B) in foreclosure and
                     delinquent (1) 1 to 30 days (2) 31 to 60 days (3) 61 to 90
                     days and (4) 91 or more days, as of the close of business
                     on the last day of the calendar month preceding such
                     Distribution Date;

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              (xi)   with respect to any Mortgage Loan that became an REO
                     Property during the preceding calendar month, the loan
                     number and Stated Principal Balance of such Mortgage Loan
                     as of the close of business on the Determination Date
                     preceding such Distribution Date and the date of
                     acquisition thereof;

              (xii)  the total number and principal balance of any REO
                     Properties (and market value, if available) as of the close
                     of business on the Determination Date preceding such
                     Distribution Date;

              (xiii) the Senior Prepayment Percentage for the following
                     Distribution Date;

              (xiv)  the aggregate amount of Realized Losses incurred during the
                     preceding calendar month;

              (xv)   the cumulative amount of Realized Losses applied in
                     reduction of the principal balance of each Class of
                     Certificates since the Closing Date;

              (xvi)  the Special Hazard Loss Coverage Amount, the Fraud Loss
                     Coverage Amount and the Bankruptcy Loss Coverage Amount, in
                     each case as of the related Determination Date; and

              (xvii) with respect to the second Distribution Date, the number
                     and aggregate balance of any Delay Delivery Mortgage Loans
                     not delivered within thirty days after the Closing Date.

         (b)  The Trustee's responsibility for disbursing the above information
              to the Certificateholders is limited to the availability,
              timeliness and accuracy of the information provided by the Master
              Servicer.

         (c)  On or before the fifth Business Day following the end of each
              Prepayment Period (but in no event later than the third Business
              Day prior to the related Distribution Date), the Master Servicer
              shall deliver to the Trustee (which delivery may be by electronic
              data transmission) a report in substantially the form set forth as
              Schedule III hereto.

         (d)  Within a reasonable period of time after the end of each calendar
              year, the Trustee shall cause to be furnished to each Person who
              at any time during the calendar year was a Certificateholder, a
              statement containing the information set forth in clauses (a)(i),
              (a)(ii) and (a)(vii) of this Section 4.6 aggregated for such
              calendar year or applicable portion thereof during which such
              Person was a Certificateholder. Such obligation of the Trustee
              shall be deemed to have been satisfied to the extent that
              substantially comparable information shall be provided by the
              Trustee pursuant to any requirements of the Code as from time to
              time in effect.

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              SECTION 4.7 Corridor Reserve Fund.

         (a)  On the Closing Date, (i) the Trustee shall establish and maintain
              in its name, in trust for the benefit of the holders of the Class
              A-1 Certificates, the Corridor Reserve Fund, and (ii) the
              Depositor will deposit or cause to be deposited $1,000 in the
              Corridor Reserve Fund. The Corridor Reserve Fund shall be an
              Eligible Account, and funds on deposit therein shall be held
              separate and apart from, and shall not be commingled with, any
              other moneys, including without limitation other moneys of the
              Trustee held pursuant to this Agreement. The Corridor Residual
              Owner will own the residual interest in the Corridor Reserve Fund.
              The Corridor Reserve Fund shall be an asset of the Separate
              Interest Trust.

         (b)  On each Distribution Date occurring prior to the Corridor Contract
              Termination Date, after the deposit of amounts into the Corridor
              Reserve Fund on such Distribution Date pursuant to Section 4.8(b),
              the Trustee will distribute the Yield Supplement Amount to the
              holders of the Class A-1 Certificates. If the Corridor Contract is
              terminated early, the Trustee will allocate the amount of any
              termination payment between the Corridor Reserve Fund and the
              Corridor Residual Owner, as the owner of the residual interest in
              the Corridor Reserve Fund, based on, with respect to the Corridor
              Reserve Fund, the product of (i) a fraction, the numerator of
              which is the lesser of (x) the Corridor Contract Notional Balance
              for the first Distribution Date on or after the early termination
              and (y) the Class Certificate Balance of the Class A-1
              Certificates, as applicable, immediately prior to the first
              Distribution Date on or after the early termination, and the
              denominator of which is the Corridor Contract Notional Balance for
              the first Distribution Date on or after the early termination and
              (ii) the termination payment amount, and with respect to the
              Corridor Residual Owner, the remainder, if any. The Trustee shall
              apply the portion of any termination payment that is allocated to
              the Corridor Reserve Fund to pay the applicable Yield Supplement
              Amount, if any Class of Certificates, until the Corridor Contract
              Termination Date. The Trustee shall pay any amounts in excess of
              $1,000 remaining on deposit in the Corridor Reserve Fund on each
              Distribution Date after the foregoing distributions have been made
              (other than any amounts attributable to termination payments under
              the Corridor Contract) to the Corridor Residual Owner.

         (c)  Funds in the Corridor Reserve Fund shall be invested in Permitted
              Investments. Any earnings on amounts in the Corridor Reserve Fund
              shall be for the benefit of the Corridor Residual Owner. The
              Corridor Residual Owner shall own the Corridor Reserve Fund for
              federal income tax purposes and the Corridor Residual Owner shall
              direct the Trustee, in writing, as to investment of amounts on
              deposit therein. The Corridor Residual Owner shall be liable for
              any losses incurred on such investments. In the absence of written
              instructions from the Corridor Residual Owner as to investment of
              funds on deposit in the Corridor Reserve Fund, such funds shall be
              held uninvested.

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              SECTION 4.8 Separate Interest Trust.

         (a)  The Depositor hereby creates a trust, separate from the Trust, for
              the benefit of the holders of the Class A-1 Certificates (such
              trust is referred to herein as the "Separate Interest Trust") and
              hereby transfers, assigns and conveys the sum of $1.00 into the
              Separate Interest Trust. The Corridor Contract and the Corridor
              Reserve Fund will also be assets of the Separate Interest Trust.
              The Trustee shall be the trustee of the Separate Interest Trust
              and shall have no responsibility for the contents, adequacy or
              sufficiency of the Corridor Contract including without limitation,
              the representations and warranties of the parties contained
              therein. The Corridor Residual Owner will own the residual
              interest in the Separate Interest Trust. The Separate Interest
              Trust shall not be an asset of the Trust Fund or any REMIC
              established hereby. The Depositor hereby directs the Trustee, in
              its capacity as trustee of the Separate Interest Trust, to (i)
              execute, deliver and enter into the Corridor Contract, on or prior
              to the Closing Date, and (ii) perform the obligations of the
              Separate Interest Trust under the Corridor Contract.

         (b)  Pursuant to the Corridor Contract, the Corridor Contract
              Counterparty shall pay to the Trustee for the account of the
              Separate Interest Trust any amounts required to be paid by the
              Corridor Contract Counterparty pursuant to the Corridor Contract
              for each Distribution Date occurring after the initial
              Distribution Date and prior to the Corridor Contract Termination
              Date. The Trustee will deposit an amount equal to the Yield
              Supplement Amount for such Distribution Date into the Corridor
              Reserve Fund for application as provided in Section 4.7(b). The
              Trustee shall distribute to the Corridor Residual Owner, any
              amount received by the Trustee pursuant to the Corridor Contract
              in connection with a Distribution Date occurring after the initial
              Distribution Date in excess of the Yield Supplement Amount, if
              any, for such Distribution Date, provided that if there is an
              early termination of the Corridor Contract the provisions of
              Section 4.7(b) shall apply.

         (c)  Upon termination of the Corridor Contract and payment of all
              amounts owed by the Corridor Contract Counterparty thereunder,
              following application by the Trustee of funds in the Corridor
              Reserve Account on the applicable Distribution Date to pay amounts
              owed pursuant to Section 4.7(b) hereof, the Trustee, on behalf of
              the Separate Interest Trust, shall terminate the Corridor Reserve
              Fund and the Separate Interest Trust. Upon termination of the
              Corridor Reserve Fund and the Separate Interest Trust, any amounts
              remaining in the Corridor Reserve Fund after payment of the Yield
              Supplement Amount, if any, owed to the holders of the Class A-1
              Certificates shall be distributed to the Corridor Residual Owner.

              SECTION 4.9 Determination of Pass-Through Rates for LIBOR
         Certificates.

         (a)  On each LIBOR Determination Date so long as any LIBOR Certificates
              are outstanding, the Trustee will determine LIBOR on the basis of
              the British Bankers' Association ("BBA") "Interest Settlement
              Rate" for one-month deposits in U.S. dollars as found on Telerate
              page 3750 as of 11:00 a.m. London time on each LIBOR Determination
              Date. "Telerate Page 3750" means the display page currently so
              designated on the Bridge Telerate Service (formerly the Dow Jones
              Markets) (or such other page as may replace that page on that
              service for the purpose of displaying comparable rates or prices).
              LIBOR for the initial LIBOR Determination Date will be equal to
              the Initial LIBOR Rate.

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         (b)  If LIBOR cannot be determined as provided in paragraph (a) of this
              Section 4.9, the Trustee shall either (i) request each Reference
              Bank inform the Trustee of the quotation offered by such Reference
              Bank's principal London office for making one-month United States
              dollar deposits in leading banks in the London interbank market,
              as of 11:00 a.m. (London time) on such LIBOR Determination Date or
              (ii) in lieu of making any such request, rely on such Reference
              Bank quotations that appear at such time on the Reuters Screen
              LIBO Page (as defined in the International Swap Dealers
              Association Inc. Code of Standard Wording, Assumptions and
              Provisions for Swaps, 1986 Edition) to the extent available. With
              respect to clause (i) above, LIBOR for the next Interest Accrual
              Period will be established by the Trustee on each LIBOR
              Determination Date as follows:

              (i)    If on any LIBOR Determination Date two or more Reference
                     Banks provide such offered quotations, LIBOR for the next
                     Interest Accrual Period shall be the arithmetic mean of
                     such offered quotations (rounding such arithmetic mean
                     upwards if necessary to the nearest whole multiple of
                     1/32%).

              (ii)   If on any LIBOR Determination Date only one or none of the
                     Reference Banks provides such offered quotations, LIBOR for
                     the next Interest Accrual Period shall be whichever is the
                     higher of (i) LIBOR as determined on the previous LIBOR
                     Determination Date or (ii) the Reserve Interest Rate. The
                     "Reserve Interest Rate" shall be the rate per annum which
                     the Trustee determines to be either (i) the arithmetic mean
                     (rounded upwards if necessary to the nearest whole multiple
                     of 1/32%) of the one-month United States dollar lending
                     rates that New York City banks selected by the Trustee are
                     quoting, on the relevant LIBOR Determination Date, to the
                     principal London offices of at least two of the Reference
                     Banks to which such quotations are, in the opinion of the
                     Trustee, being so made, or (ii) in the event that the
                     Trustee can determine no such arithmetic mean, the lowest
                     one-month United States dollar lending rate which New York
                     City banks selected by the Trustee are quoting on such
                     LIBOR Determination Date to leading European banks.

              (iii)  If on any LIBOR Determination Date the trustee is required
                     but is unable to determine the Reserve Interest Rate in the
                     manner provided in paragraph (b) above, LIBOR shall be
                     LIBOR as determined on the preceding LIBOR Determination
                     Date.

         The Master Servicer shall designate at least four Reference Banks.
Until all of the LIBOR Certificates are paid in full, the Trustee will refer to
the four Reference Banks designated by the Master Servicer to determine LIBOR
with respect to each LIBOR Determination Date. Each "Reference Bank" shall be a
leading bank engaged in transactions in Eurodollar deposits in the international
Eurocurrency market, shall not control, be controlled by, or be under common
control with, the Trustee and shall have an established place of business in
London. If any such Reference Bank should be unwilling or unable to act as such,
the Master Servicer shall promptly appoint or cause to be appointed another
Reference Bank. The Trustee shall have no liability or responsibility to any
Person for (i) the selection of any Reference Bank for purposes of determining
LIBOR or (ii) any inability of the Master Servicer to designate at least four
Reference Banks.

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         (c)  The Pass-Through Rate for each Class of LIBOR Certificates for
              each Interest Accrual Period shall be determined by the Trustee on
              each LIBOR Determination Date so long as the LIBOR Certificates
              are outstanding on the basis of LIBOR and the respective formulae
              appearing in footnotes corresponding to the LIBOR Certificates in
              the table relating to the Certificates in the Preliminary
              Statement.

         In determining LIBOR, any Pass-Through Rate for the LIBOR Certificates,
any Interest Settlement Rate, or any Reserve Interest Rate, the Trustee may
conclusively rely and shall be protected in relying upon the offered quotations
(whether written, oral or on the Bridge Telerate Service) from the BBA
designated banks, the Reference Banks or the New York City banks as to LIBOR,
the Interest Settlement Rate or the Reserve Interest Rate, as appropriate, in
effect from time to time. The Trustee shall not have any liability or
responsibility to any Person for (i) the Trustee's selection of New York City
banks for purposes of determining any Reserve Interest Rate or (ii) its
inability, following a good-faith reasonable effort, to obtain such quotations
from, the BBA designated banks, the Reference Banks or the New York City banks
or to determine such arithmetic mean, all as provided for in this Section 4.9.

         (d)  The establishment of LIBOR and each Pass-Through Rate for the
              LIBOR Certificates by the Trustee shall (in the absence of
              manifest error) be final, conclusive and binding upon each Holder
              of a Certificate and the Trustee.

                                    ARTICLE V
                                THE CERTIFICATES

              SECTION 5.1 The Certificates.

         The Certificates shall be substantially in the forms attached hereto as
exhibits. The Certificates shall be issuable in registered form, in the minimum
denominations, integral multiples in excess thereof (except that one Certificate
in each Class may be issued in a different amount which must be in excess of the
applicable minimum denomination) and aggregate denominations per Class set forth
in the Preliminary Statement.

         Subject to Section 9.2 hereof respecting the final distribution on the
Certificates, on each Distribution Date the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either (x) by wire
transfer in immediately available funds to the account of such Holder at a bank
or other entity having appropriate facilities therefor, if (i) such Holder has
so notified the Trustee at least five Business Days prior to the related Record
Date and (ii) such Holder shall hold (A) 100% of the Class Certificate Balance
of any Class of Certificates or (B) Certificates of any Class with aggregate
principal Denominations of not less than $1,000,000 or (y) by check mailed by
first class mail to such Certificateholder at the address of such Holder
appearing in the Certificate Register.

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         The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
be so authorized prior to the countersignature and delivery of such Certificates
or did not hold such offices at the date of such Certificate. No Certificate
shall be entitled to any benefit under this Agreement, or be valid for any
purpose, unless countersigned by the Trustee by manual signature, and such
countersignature upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly executed and delivered hereunder.
All Certificates shall be dated the date of their countersignature. On the
Closing Date, the Trustee shall countersign the Certificates to be issued at the
direction of the Depositor, or any affiliate thereof.

         The Depositor shall provide, or cause to be provided, to the Trustee on
a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

              SECTION 5.2 Certificate Register; Registration of Transfer and
         Exchange of Certificates.

         (a)  The Trustee shall maintain, or cause to be maintained in
              accordance with the provisions of Section 5.6 hereof, a
              Certificate Register for the Trust Fund in which, subject to the
              provisions of subsections (b) and (c) below and to such reasonable
              regulations as it may prescribe, the Trustee shall provide for the
              registration of Certificates and of transfers and exchanges of
              Certificates as herein provided. Upon surrender for registration
              of transfer of any Certificate, the Trustee shall execute and
              deliver, in the name of the designated transferee or transferees,
              one or more new Certificates of the same Class and aggregate
              Percentage Interest.

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

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

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              All Certificates surrendered for registration of transfer or
         exchange shall be cancelled and subsequently destroyed by the Trustee
         in accordance with the Trustee's customary procedures.

         (b)  No transfer of a Private Certificate shall be made unless such
              transfer is made pursuant to an effective registration statement
              under the Securities Act and any applicable state securities laws
              or is exempt from the registration requirements under said Act and
              such state securities laws. In the event that a transfer is to be
              made in reliance upon an exemption from the Securities Act and
              such laws, in order to assure compliance with the Securities Act
              and such laws, any Holder of a Private Certificate (other than a
              Private Certificate that is a Book-Entry Certificate) desiring to
              effect such transfer and such Certificateholder's prospective
              transferee shall each certify to the Trustee in writing the facts
              surrounding the transfer in substantially the forms set forth in
              Exhibit I (the "Transferor Certificate") and (i) deliver a letter
              in substantially the form of either Exhibit J (the "Investment
              Letter") or Exhibit K (the "Rule 144A Letter") or (ii) there shall
              be delivered to the Trustee at the expense of the transferor an
              Opinion of Counsel that such transfer may be made pursuant to an
              exemption from the Securities Act.

              Each Holder of a Private Certificate that is a Book-Entry
         Certificate, by its acquisition thereof (or a beneficial interest
         therein), shall be deemed to have represented and warranted for the
         benefit of the Depositor, the Servicer and the Trustee that (a) it
         understands that the Private Certificates are not being registered
         under the Securities Act, or any state securities laws and are being
         transferred to it in a transaction that is exempt from the registration
         requirements of the Securities Act and any such laws, (b) it has such
         knowledge and experience in financial and business matters that it is
         capable of evaluating the merits and risks of investments in the
         Private Certificates, (c) it has had the opportunity to ask questions
         of and receive answers from the Depositor concerning the purchase of
         the Private Certificates and all matters relating thereto or any
         additional information deemed necessary to its decision to purchase the
         Private Certificates, (d) neither it, nor any anyone acting on its
         behalf, has offered, transferred, pledged, sold or otherwise disposed
         of the Private Certificates or any interest therein, or solicited any
         offer to buy or accept a transfer, pledge or other disposition of the
         Private Certificates or any interest therein from, or otherwise
         approached or negotiated with respect to the Private Certificates or
         any interest therein 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 Private Certificates under the Securities Act or that would
         render the disposition of the Private Certificates a violation of
         Section 5 of the Securities Act or require registration pursuant
         thereto, nor will it act, nor has it authorized or will authorize any
         person to act, in such manner with respect to the Private Certificates,
         (e) it is a "qualified institutional buyer" as that term is defined in
         Rule 144A under the Securities Act ("Rule 144A"), (f) it is aware that
         the sale of the Private Certificates to it is being made in reliance on
         Rule 144A, (g) it is acquiring the Private Certificates for its own
         account or for resale pursuant to Rule 144A and it understands that the
         Private Certificates may be resold, pledged or transferred only (A) to
         a person whom it reasonably believes 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 (B)
         pursuant to another exemption from registration under the Securities
         Act; and (h) it understands that no representation is made as to the
         availability of the exemption provided by Rule 144A for resales of the
         Private Certificates.

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<PAGE>

              The Depositor shall provide to any Holder of a Private
         Certificate and any prospective transferee designated by any such
         Holder, information regarding the related Certificates and the Mortgage
         Loans and such other information as shall be necessary to satisfy the
         condition to eligibility set forth in Rule 144A(d)(4) for transfer of
         any such Certificate without registration thereof under the Securities
         Act pursuant to the registration exemption provided by Rule 144A. The
         Trustee and the Master Servicer shall cooperate with the Depositor in
         providing the Rule 144A information referenced in the preceding
         sentence, including providing to the Depositor such information
         regarding the Certificates, the Mortgage Loans and other matters
         regarding the Trust Fund as the Depositor shall reasonably request to
         meet its obligation under the preceding sentence. Each Holder of a
         Private Certificate desiring to effect such transfer shall, and by its
         acceptance of a Private Certificate does hereby agree to, indemnify the
         Trustee and the Depositor, the Seller and the Master Servicer against
         any liability that may result if the transfer is not so exempt or is
         not made in accordance with such federal and state laws.

              No transfer of an ERISA-Restricted Certificate (other than a
         Private Certificate that is not a Book-Entry Certificate) shall be made
         unless the Trustee shall have received a Transferor Certificate from
         the related transferor and either (i) a representation from the
         transferee of such Certificate acceptable to and in form and substance
         satisfactory to the Trustee (in the event such Certificate is a Private
         Certificate, such requirement is satisfied only by the Trustee's
         receipt of a representation letter from the transferee substantially in
         the form of Exhibit J or Exhibit K), to the effect that such transferee
         is not an employee benefit plan or arrangement subject to Section 406
         of ERISA or a plan or arrangement subject to Section 4975 of the Code,
         nor a person acting on behalf of any such plan or arrangement, nor
         using the assets of any such plan or arrangement to effect such
         transfer, (ii) in the case of a Private Certificate (that has been
         subject to an ERISA-Qualified Underwriting) or a Residual Certificate,
         if the purchaser is an insurance company, a representation that the
         purchaser is an insurance company which is purchasing such Certificates
         with funds contained in an "insurance company general account" (as such
         term is defined in Section V(e) of Prohibited Transaction Class
         Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of
         such Certificates are covered under Sections I and III of PTCE 95-60 or
         (iii) in the case of any such ERISA-Restricted Certificate presented
         for registration in the name of an employee benefit plan subject to
         ERISA, or a plan or arrangement subject to Section 4975 of the Code (or
         comparable provisions of any subsequent enactments), or a trustee of
         any such plan or any other person acting on behalf of any such plan or
         arrangement, or using such plan's or arrangement's assets, an Opinion
         of Counsel satisfactory to the Trustee, which Opinion of Counsel shall
         not be an expense of either the Trustee, the Depositor, the Master
         Servicer or the Trust Fund, addressed to the Trustee to the effect that
         the purchase or holding of such ERISA-Restricted Certificate will not
         result in prohibited transactions under Section 406 of ERISA and
         Section 4975 of the Code and will not subject the Trustee, the
         Depositor or the Master Servicer to any obligation in addition to those
         expressly undertaken in this Agreement or to any liability.
         Notwithstanding anything else to the contrary herein, any purported
         transfer of an ERISA-Restricted Certificate to or on behalf of an
         employee benefit plan subject to ERISA or to the Code without the
         delivery to the Trustee of an Opinion of Counsel satisfactory to the
         Trustee as described above shall be void and of no effect.

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               Each Holder of a Private Certificate that is a Book-Entry
         Certificate, by its acquisition thereof (or a beneficial interest
         therein) shall be deemed to have represented and warranted for the
         benefit of the Depositor, the Servicer, the Trustee and the other
         Certificateholders, that (a) it is not an employee benefit plan or
         arrangement that is subject to Section 406 of ERISA, or a plan or
         arrangement that is subject to Section 4975 of the Internal Revenue
         Code of 1986, as amended, nor is it acting on behalf of any such plan
         or arrangement or using the assets of any such plan or arrangement to
         effect such acquisition, or (b) if it is an insurance company, in the
         case of Private Certificates that have been the subject of an
         ERISA-Qualifying Underwriting, it is purchasing the Private
         Certificates with funds contained in an "insurance company general
         account" (as defined in Section V(e) of Prohibited Transaction Class
         Exemption 95-60 ("PTCE 95-60")) and its purchase and holding of the
         Private Certificates are covered under Sections I and III of PTCE
         95-60.

               To the extent permitted under applicable law (including, but
         not limited to, ERISA), the Trustee shall be under no liability to any
         Person for any registration of transfer of any ERISA-Restricted
         Certificate that is in fact not permitted by this Section 5.2(b) or for
         making any payments due on such Certificate to the Holder thereof or
         taking any other action with respect to such Holder under the
         provisions of this Agreement so long as the transfer was registered by
         the Trustee in accordance with the foregoing requirements.

         (c)  Each Person who has or who acquires any Ownership Interest in a
              Residual Certificate shall be deemed by the acceptance or
              acquisition of such Ownership Interest to have agreed to be bound
              by the following provisions, and the rights of each Person
              acquiring any Ownership Interest in a Residual Certificate are
              expressly subject to the following provisions:

              (i)    Each Person holding or acquiring any Ownership Interest in
                     a Residual Certificate shall be a Permitted Transferee and
                     shall promptly notify the Trustee of any change or
                     impending change in its status as a Permitted Transferee.

              (ii)   No Ownership Interest in a Residual Certificate may be
                     registered on the Closing Date or thereafter transferred,
                     and the Trustee shall not register the Transfer of any
                     Residual Certificate unless, in addition to the
                     certificates required to be delivered to the Trustee under
                     subparagraph (b) above, the Trustee shall have been
                     furnished with an affidavit (a "Transfer Affidavit") of the
                     initial owner or the proposed transferee in the form
                     attached hereto as Exhibit H.

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              (iii)  Each Person holding or acquiring any Ownership Interest in
                     a Residual Certificate shall agree (A) to obtain a Transfer
                     Affidavit from any other Person to whom such Person
                     attempts to Transfer its Ownership Interest in a Residual
                     Certificate, (B) to obtain a Transfer Affidavit from any
                     Person for whom such Person is acting as nominee, trustee
                     or agent in connection with any Transfer of a Residual
                     Certificate and (C) not to Transfer its Ownership Interest
                     in a Residual Certificate or to cause the Transfer of an
                     Ownership Interest in a Residual Certificate to any other
                     Person if it has actual knowledge that such Person is not a
                     Permitted Transferee.

              (iv)   Any attempted or purported Transfer of any Ownership
                     Interest in a Residual Certificate in violation of the
                     provisions of this Section 5.2(c) shall be absolutely null
                     and void and shall vest no rights in the purported
                     Transferee. If any purported transferee shall become a
                     Holder of a Residual Certificate in violation of the
                     provisions of this Section 5.2(c), then the last preceding
                     Permitted Transferee shall be restored to all rights as
                     Holder thereof retroactive to the date of registration of
                     Transfer of such Residual Certificate. The Trustee shall be
                     under no liability to any Person for any registration of
                     Transfer of a Residual Certificate that is in fact not
                     permitted by Section 5.2(b) and this Section 5.2(c) or for
                     making any payments due on such Certificate to the Holder
                     thereof or taking any other action with respect to such
                     Holder under the provisions of this Agreement so long as
                     the Transfer was registered after receipt of the related
                     Transfer Affidavit, Transferor Certificate and, in the case
                     of a Residual Certificate which is also a Private
                     Certificate, either the Rule 144A Letter or the Investment
                     Letter. The Trustee shall be entitled but not obligated to
                     recover from any Holder of a Residual Certificate that was
                     in fact not a Permitted Transferee at the time it became a
                     Holder or, at such subsequent time as it became other than
                     a Permitted Transferee, all payments made on such Residual
                     Certificate at and after either such time. Any such
                     payments so recovered by the Trustee shall be paid and
                     delivered by the Trustee to the last preceding Permitted
                     Transferee of such Certificate.

              (v)    The Depositor shall use its best efforts to make available,
                     upon receipt of written request from the Trustee, all
                     information necessary to compute any tax imposed under
                     Section 860E(e) of the Code as a result of a Transfer of an
                     Ownership Interest in a Residual Certificate to any Holder
                     who is not a Permitted Transferee.

              The restrictions on Transfers of a Residual Certificate set
         forth in this Section 5.2(c) shall cease to apply (and the applicable
         portions of the legend on a Residual Certificate may be deleted) with
         respect to Transfers occurring after delivery to the Trustee of an
         Opinion of Counsel, which Opinion of Counsel shall not be an expense of
         the Trust Fund, the Trustee, the Seller or the Master Servicer, to the
         effect that the elimination of such restrictions will not cause any
         REMIC created hereunder to fail to qualify as a REMIC at any time that
         the Certificates are outstanding or result in the imposition of any tax
         on the Trust Fund, a Certificateholder or another Person. Each Person
         holding or acquiring any Ownership Interest in a Residual Certificate
         hereby consents to any amendment of this Agreement which, based on an
         Opinion of Counsel furnished to the Trustee, is reasonably necessary
         (a) to ensure that the record ownership of, or any beneficial interest
         in, a Residual Certificate is not transferred, directly or indirectly,
         to a Person that is not a Permitted Transferee and (b) to provide for a
         means to compel the Transfer of a Residual Certificate which is held by
         a Person that is not a Permitted Transferee to a Holder that is a
         Permitted Transferee.

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         (d)  The preparation and delivery of all certificates and opinions
              referred to above in this Section 5.2 in connection with transfer
              shall be at the expense of the parties to such transfers.

         (e)  Except as provided below, the Book-Entry Certificates shall at all
              times remain registered in the name of the Depository or its
              nominee and at all times: (i) registration of the Certificates may
              not be transferred by the Trustee except to another Depository;
              (ii) the Depository shall maintain book-entry records with respect
              to the Certificate Owners and with respect to ownership and
              transfers of such Book-Entry Certificates; (iii) ownership and
              transfers of registration of the Book-Entry Certificates on the
              books of the Depository shall be governed by applicable rules
              established by the Depository; (iv) the Depository may collect its
              usual and customary fees, charges and expenses from its Depository
              Participants; (v) the Trustee shall deal with the Depository,
              Depository Participants and indirect participating firms as
              representatives of the Certificate Owners of the Book-Entry
              Certificates for purposes of exercising the rights of holders
              under this Agreement, and requests and directions for and votes of
              such representatives shall not be deemed to be inconsistent if
              they are made with respect to different Certificate Owners; and
              (vi) the Trustee may rely and shall be fully protected in relying
              upon information furnished by the Depository with respect to its
              Depository Participants and furnished by the Depository
              Participants with respect to indirect participating firms and
              persons shown on the books of such indirect participating firms as
              direct or indirect Certificate Owners.

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

              If (x) (i) the Depository or the Depositor advises the Trustee
         in writing that the Depository is no longer willing or able to properly
         discharge its responsibilities as Depository, and (ii) the Trustee or
         the Depositor is unable to locate a qualified successor, (y) the
         Depositor at its option advises the Trustee in writing that it elects
         to terminate the book-entry system through the Depository or (z) after
         the occurrence of an Event of Default, Certificate Owners representing
         at least 51% of the Class Certificate Balance of the Book-Entry
         Certificates together advise the Trustee and the Depository through the
         Depository Participants in writing that the continuation of a
         book-entry system through the Depository is no longer in the best
         interests of the Certificate Owners, the Trustee shall notify all

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         Certificate Owners, through the Depository, of the occurrence of any
         such event and of the availability of definitive, fully-registered
         Certificates (the "Definitive Certificates") to Certificate Owners
         requesting the same. Upon surrender to the Trustee of the related Class
         of Certificates by the Depository, accompanied by the instructions from
         the Depository for registration, the Trustee shall issue the Definitive
         Certificates. Neither the Master Servicer, the Depositor nor the
         Trustee shall be liable for any delay in delivery of such instruction
         and each may conclusively rely on, and shall be protected in relying
         on, such instructions. The Master Servicer shall provide the Trustee
         with an adequate inventory of certificates to facilitate the issuance
         and transfer of Definitive Certificates. Upon the issuance of
         Definitive Certificates all references herein to obligations imposed
         upon or to be performed by the Depository shall be deemed to be imposed
         upon and performed by the Trustee, to the extent applicable with
         respect to such Definitive Certificates and the Trustee shall recognize
         the Holders of the Definitive Certificates as Certificateholders
         hereunder; provided that the Trustee shall not by virtue of its
         assumption of such obligations become liable to any party for any act
         or failure to act of the Depository.

              SECTION 5.3 Mutilated, Destroyed, Lost or Stolen Certificates.

         If (a) any mutilated Certificate is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and (b) there is delivered to the Master Servicer and the
Trustee such security or indemnity as may be required by them to save each of
them harmless, then, in the absence of notice to the Trustee that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, countersign and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with the issuance of any new
Certificate under this Section 5.3, the Trustee may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith. Any replacement Certificate issued pursuant to
this Section 5.3 shall constitute complete and indefeasible evidence of
ownership, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

              SECTION 5.4 Persons Deemed Owners.

         The Master Servicer, the Trustee and any agent of the Master Servicer
or the Trustee may treat the Person in whose name any Certificate is registered
as the owner of such Certificate for the purpose of receiving distributions as
provided in this Agreement and for all other purposes whatsoever, and neither
the Master Servicer, the Trustee nor any agent of the Master Servicer or the
Trustee shall be affected by any notice to the contrary.

              SECTION 5.5 Access to List of Certificateholders' Names and
         Addresses.

         If three or more Certificateholders or Certificate Owners (a) request
such information in writing from the Trustee, (b) state that such
Certificateholders or Certificate Owners desire to communicate with other
Certificateholders with respect to their rights under this Agreement or under
the Certificates, and (c) provide a copy of the communication which such
Certificateholders or Certificate Owners propose to transmit, or if the
Depositor or Master Servicer shall request such information in writing from the
Trustee, then the Trustee shall, within ten Business Days after the receipt of
such request, provide the Depositor, the Master Servicer or such
Certificateholders or Certificate Owners at such recipients' expense the most
recent list of the Certificateholders of such Trust Fund held by the Trustee, if
any. The Depositor and every Certificateholder or Certificate Owner, by
receiving and holding a Certificate, agree that the Trustee shall not be held
accountable by reason of the disclosure of any such information as to the list
of the Certificateholders hereunder, regardless of the source from which such
information was derived.

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              SECTION 5.6 Maintenance of Office or Agency.

         The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies in New York City where Certificates may
be surrendered for registration of transfer or exchange. The Trustee initially
designates its Corporate Trust Office for such purposes. The Trustee will give
prompt written notice to the Certificateholders of any change in such location
of any such office or agency.

                                   ARTICLE VI
                      THE DEPOSITOR AND THE MASTER SERVICER

              SECTION 6.1 Respective Liabilities of the Depositor and the Master
         Servicer.

         The Depositor and the Master Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.

              SECTION 6.2 Merger or Consolidation of the Depositor or the Master
         Servicer.

         The Depositor and the Master Servicer will each keep in full effect its
existence, rights and franchises as a corporation under the laws of the United
States or under the laws of one of the states thereof and will each obtain and
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, or any of the Mortgage Loans and
to perform its respective duties under this Agreement.

         Any Person into which the Depositor or the Master Servicer may be
merged or consolidated, or any Person resulting from any merger or consolidation
to which the Depositor or the Master Servicer shall be a party, or any person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person to
the Master Servicer shall be qualified to sell mortgage loans to, and to service
mortgage loans on behalf of, FNMA or FHLMC.

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              SECTION 6.3 Limitation on Liability of the Depositor, the Master
         Servicer and
Others.

         None of the Depositor, the Master Servicer or any of the directors,
officers, employees or agents of the Depositor or the Master Servicer shall be
under any liability to 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, the Master Servicer or any such Person against
any breach of representations or warranties made by it herein or protect the
Depositor, the Master Servicer or any such Person from any liability which would
otherwise be imposed by reasons 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 Depositor, the Master Servicer and any
director, officer, employee or agent of the Depositor or the Master Servicer may
rely in good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder. The Depositor,
the Master Servicer and any director, officer, employee or agent of the
Depositor or the Master Servicer shall be indemnified by the Trust Fund and held
harmless against any loss, liability or expense incurred in connection with any
audit, controversy or judicial proceeding relating to a governmental taxing
authority or any legal action relating to this Agreement or the Certificates,
other than any loss, liability or expense related to any specific Mortgage Loan
or Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or gross negligence
in the performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder. Neither the Depositor nor the Master Servicer
shall be under any obligation to appear in, prosecute or defend any legal action
that is not incidental to its respective duties hereunder and which in its
opinion may involve it in any expense or liability; provided, however, that
either the Depositor or the Master Servicer may in its discretion undertake any
such action that it may deem necessary or desirable in respect of this Agreement
and the rights and duties of the parties hereto and interests of the Trustee and
the Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and
liabilities of the Trust Fund, and the Depositor and the Master Servicer shall
be entitled to be reimbursed therefor out of the Certificate Account.

              SECTION 6.4 Limitation on Resignation of Master Servicer.

         The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (a) upon appointment of a successor servicer and
receipt by the Trustee of a letter from each Rating Agency that such a
resignation and appointment will not result in a downgrading of the rating of
any of the Certificates, or (b) upon determination that its duties hereunder are
no longer permissible under applicable law. Any such determination under clause
(b) permitting the resignation of the Master Servicer shall be evidenced by an
Opinion of Counsel to such effect delivered to the Trustee. No such resignation
shall become effective until the Trustee or a successor master servicer shall
have assumed the Master Servicer's responsibilities, duties, liabilities and
obligations hereunder.

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                                  ARTICLE VII
                                    DEFAULT

              SECTION 7.1 Events of Default.

         "Event of Default," wherever used herein, means any one of the
following events:

              (i)    any failure by the Master Servicer to deposit in the
                     Certificate Account or remit to the Trustee any payment
                     required to be made under the terms of this Agreement,
                     which failure shall continue unremedied for five days after
                     the date upon which written notice of such failure shall
                     have been given to the Master Servicer by the Trustee or
                     the Depositor or to the Master Servicer and the Trustee by
                     the Holders of Certificates having not less than 25% of the
                     Voting Rights evidenced by the Certificates; or

              (ii)   any failure by the Master Servicer to observe or perform in
                     any material respect any other of the covenants or
                     agreements on the part of the Master Servicer contained in
                     this Agreement, which failure materially affects the rights
                     of Certificateholders, which failure continues unremedied
                     for a period of 60 days after the date on which written
                     notice of such failure shall have been given to the Master
                     Servicer by the Trustee or the Depositor, or to the Master
                     Servicer and the Trustee by the Holders of Certificates
                     evidencing not less than 25% of the Voting Rights evidenced
                     by the Certificates; provided, however, that the 60-day
                     cure period shall not apply to the initial delivery of the
                     Mortgage File for Delay Delivery Mortgage Loans nor the
                     failure to substitute or repurchase in lieu thereof; or

              (iii)  a decree or order of a court or agency or supervisory
                     authority having jurisdiction in the premises for the
                     appointment of a 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 Master Servicer and such decree or order shall have
                     remained in force undischarged or unstayed for a period of
                     60 consecutive days; or

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

              (v)    the Master Servicer shall admit in writing its inability to
                     pay its debts generally as they become due, file a petition
                     to take advantage of, or commence a voluntary case under,
                     any applicable insolvency or reorganization statute, make
                     an assignment for the benefit of its creditors, or
                     voluntarily suspend payment of its obligations; or

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(vi)                       the failure of the Master Servicer to remit any
                           Advance required to be remitted by the Master
                           Servicer pursuant to Section 4.1 which failure
                           continues unremedied at 11:00 a.m., Central time, on
                           the related Distribution Date.

         If an Event of Default described in clauses (i) to (v) of this Section
shall occur, then, and in each and every such case, so long as such Event of
Default shall not have been remedied, the Trustee may, or at the direction of
the Holders of Certificates evidencing not less than 66 2/3% of the Voting
Rights evidenced by the Certificates, the Trustee shall by notice in writing to
the Master Servicer (with a copy to each Rating Agency), terminate all of the
rights and obligations of the Master Servicer under this Agreement and in and to
the Mortgage Loans and the proceeds thereof, other than its rights as a
Certificateholder hereunder. If an Event of Default described in clause (vi) of
this Section shall occur, the Trustee shall immediately, by notice in writing to
the Master Servicer (with a copy to each Rating Agency), terminate all of the
rights and obligations of the Master Servicer under this Agreement and in and to
the Mortgage Loans and proceeds thereof, other than its rights as a
Certificateholder hereunder. On and after the receipt by the Master Servicer of
such written notice, all authority and power of the Master Servicer hereunder,
whether with respect to the Mortgage Loans or otherwise, shall pass to and be
vested in the Trustee or another successor to the Master Servicer appointed by
the Trustee pursuant to Section 7.2. The Trustee, in its capacity as successor
to the Master Servicer, shall thereupon make any Advance which the Master
Servicer failed to make subject to Section 4.1 hereof. The Trustee is hereby
authorized and empowered to execute and deliver, on behalf of the Master
Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage Loans and
related documents, or otherwise. Unless expressly provided in such written
notice, no such termination shall affect any obligation of the Master Servicer
to pay amounts owed pursuant to Article VIII. The Master Servicer agrees to
cooperate with the Trustee in effecting the termination of the Master Servicer's
responsibilities and rights hereunder, including, without limitation, the
transfer to the Trustee of all cash amounts which shall at the time be credited
to the Certificate Account, or thereafter be received with respect to the
Mortgage Loans. All expenses incurred in the transferring of the servicing
duties from the Master Servicer to a Successor Servicer shall be paid by the
Master Servicer, and if not paid by the Master Servicer, shall be paid from
amounts on deposit in the Certificate Account.

         Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a Scheduled Payment on a Mortgage Loan which was due prior to
the notice terminating such Master Servicer's rights and obligations as Master
Servicer hereunder and received after such notice, that portion thereof to which
such Master Servicer would have been entitled pursuant to Sections 3.8(a)(i)
through (viii),and any other amounts payable to such Master Servicer hereunder
the entitlement to which arose prior to the termination of its activities
hereunder. Any termination of the activities of the Master Servicer hereunder
will simultaneously result in the termination of the Master Servicer's duties as
a subservicer pursuant to the Servicing Rights Transfer and Subservicing
Agreement.

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              SECTION 7.2 Trustee to Act; Appointment of Successor.

         On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.1 hereof, the Trustee shall, subject to and to
the extent provided in Section 3.4, be the successor to the Master Servicer
under this Agreement and the transactions set forth or provided for herein and
shall be subject to all the responsibilities, duties and liabilities relating
thereto placed on the Master Servicer by the terms and provisions hereof and
applicable law including the obligation to make Advances pursuant to Section
4.1. As compensation therefor, the Trustee shall be entitled to all funds
relating to the Mortgage Loans that the Master Servicer would have been entitled
to charge to the Certificate Account or Distribution Account if the Master
Servicer had continued to act hereunder. Notwithstanding the foregoing, if the
Trustee has become the successor to the Master Servicer in accordance with
Section 7.1 hereof, the Trustee may, if it shall be unwilling to so act, or
shall, if it is prohibited by applicable law from making Advances pursuant to
Section 4.1 hereof or if it is otherwise unable to so act, appoint, or petition
a court of competent jurisdiction to appoint, any established mortgage loan
servicing institution the appointment of which does not adversely affect the
then current rating of the Certificates by each Rating Agency as the successor
to the Master Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer hereunder. Any
successor to the Master Servicer shall be an institution which is a FNMA and
FHLMC approved seller/servicer in good standing, which has a net worth of at
least $10,000,000, and which is willing to service the Mortgage Loans and
executes and delivers to the Depositor and the Trustee an agreement accepting
such delegation and assignment, which contains an assumption by such Person of
the rights, powers, duties, responsibilities, obligations and liabilities of the
Master Servicer (other than liabilities of the Master Servicer under Section 6.3
hereof incurred prior to termination of the Master Servicer under Section 7.1),
with like effect as if originally named as a party to this Agreement; and
provided further that each Rating Agency acknowledges that its rating of the
Certificates in effect immediately prior to such assignment and delegation will
not be qualified or reduced, as a result of such assignment and delegation.
Pending appointment of a successor to the Master Servicer hereunder, the
Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
to Section 3.4 hereof, act in such capacity as provided above. In connection
with 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; provided, however, that no such compensation shall
be in excess of the Master Servicing Fee permitted the Master Servicer
hereunder. The Trustee and such successor shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession.
Neither the Trustee nor any other successor master servicer shall be deemed to
be in default hereunder by reason of any failure to make, or any delay in
making, any distribution hereunder or any portion thereof or any failure to
perform, or any delay in performing, any duties or responsibilities hereunder,
in either case caused by the failure of the Master Servicer to deliver or
provide, or any delay in delivering or providing, any cash, information,
documents or records to it.

         Any successor to the Master Servicer as master servicer shall give
notice to the Mortgagors of such change of servicer and shall, during the term
of its service as master servicer maintain in force the policy or policies that
the Master Servicer is required to maintain pursuant to Section 3.18.

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         In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, or (ii) the predecessor Master Servicer shall cooperate with the successor
Master Servicer either (x) in causing MERS to execute and deliver an assignment
of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee
and to execute and deliver such other notices, documents and other instruments
as may be necessary or desirable to effect a transfer of such Mortgage Loan or
servicing of such mortgage Loan on the MERS(R) System to the successor Master
Servicer or (y) in causing MERS to designate on the MERS(R) System the successor
Master Servicer as the servicer of such Mortgage Loan. The predecessor Master
Servicer shall file or cause to be filed any such assignment in the appropriate
recording office. The successor Master Servicer shall cause such assignment to
be delivered to the Trustee promptly upon receipt of the original with evidence
of recording thereon or a copy certified by the public recording office in which
such assignment was recorded.

              SECTION 7.3 Notification to Certificateholders.

         (a)  Upon any termination of or appointment of a successor to the
              Master Servicer, the Trustee shall give prompt written notice
              thereof to Certificateholders and to each Rating Agency.

         (b)  Within 60 days after the occurrence of any Event of Default, the
              Trustee shall transmit by mail to all Certificateholders notice of
              each such Event of Default hereunder known to the Trustee, unless
              such Event of Default shall have been cured or waived.

                                  ARTICLE VIII
                             CONCERNING THE TRUSTEE

              SECTION 8.1 Duties of Trustee.

         The Trustee, prior to the occurrence of an Event of Default of which a
Responsible Officer of the Trustee has actual knowledge and after the curing of
all Events of Default that may have occurred, shall undertake to perform such
duties and only such duties as are specifically set forth in this Agreement. In
case an Event of Default of which a Responsible Officer of the Trustee has
actual knowledge has occurred and remains uncured, the Trustee shall exercise
such of the rights and powers vested in it by this Agreement, and use the same
degree of care and skill in their exercise as a prudent person would exercise or
use under the circumstances in the conduct of such person's own affairs.

         The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement shall examine them to determine whether they are in the form
required by this Agreement; provided, however, that the Trustee shall not be
responsible for the accuracy or content of any such resolution, certificate,
statement, opinion, report, document, order or other instrument. If any such
instrument is found not to conform in any material respect to the requirements
of this Agreement, the Trustee shall notify the Certificateholders of such
instrument in the event that the Trustee, after so requesting, does not receive
a satisfactorily corrected instrument.

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         The Trustee is hereby directed to execute and deliver to The Depository
Trust Company the Issuer Letter of Representations dated as of the Closing Date
on behalf of the trust created hereunder. The Depositor and the Master Servicer
acknowledge and agree that the Trustee is executing and delivering the Issuer
Letter of Representations on behalf of the trust created hereunder and shall do
so solely in its capacity as Trustee and not in its individual capacity.

         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)    unless an Event of Default of which a Responsible Officer
                     of the Trustee has actual knowledge shall have occurred and
                     be continuing, 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 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 which it believed in good
                     faith to be genuine and to have been duly executed by the
                     proper authorities respecting any matters arising
                     hereunder;

              (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 finally proven
                     that the Trustee was negligent in ascertaining the
                     pertinent facts;

              (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 Holders of Certificates
                     evidencing not less than 25% of the Voting Rights of
                     Certificates relating to the time, method and place of
                     conducting any proceeding for any remedy available to the
                     Trustee, or exercising any trust or power conferred upon
                     the Trustee under this Agreement;

              (iv)   the Trustee shall not be required to expend or risk its own
                     funds or otherwise incur financial liability in the
                     performance of any of its duties hereunder or the exercise
                     of any of its rights or powers if there is reasonable
                     ground for believing that the repayment of such funds or
                     adequate indemnity against such risk or liability is not
                     assured to it, and none of the provisions contained in this
                     Agreement shall in any event require the Trustee to
                     perform, or be responsible for the manner of performance
                     of, any of the obligations of the Master Servicer under
                     this Agreement except during such time, if any, as the
                     Trustee shall be the successor to, and be vested with the
                     rights, duties, powers and privileges of, the Master
                     Servicer; and

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              (v)    without limiting the generality of this Section 8.1, the
                     Trustee shall have no duty (A) to see to any recording,
                     filing, or depositing of this Agreement or any agreement
                     referred to herein or any financing statement or
                     continuation statement evidencing a security interest, or
                     to see to the maintenance of any such recording or filing
                     or deposit or to any rerecording, refiling or redepositing
                     of any thereof, (B) to see to any insurance, (C) to see to
                     the payment or discharge of any tax, assessment, or other
                     governmental charge or any lien or encumbrance of any kind
                     owing with respect to, assessed or levied against, any part
                     of the Trust Fund other than from funds available in the
                     Distribution Account (D) to confirm or verify the contents
                     of any reports or certificates of the Servicer delivered to
                     the Trustee pursuant to this Agreement believed by the
                     Trustee to be genuine and to have been signed or presented
                     by the proper party or parties.

              SECTION 8.2 Certain Matters Affecting the Trustee.

         Except as otherwise provided in Section 8.1:

              (i)    the Trustee may request and 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 and the Trustee shall have no responsibility to
                     ascertain or confirm the genuineness of any signature of
                     any such party or parties;

              (ii)   the Trustee may consult with counsel, financial advisers or
                     accountants and the advice of any such counsel, financial
                     advisers or accountants and any Opinion of Counsel shall be
                     full and complete authorization and protection in respect
                     of any action taken or suffered or omitted by it hereunder
                     in good faith and in accordance with such Opinion of
                     Counsel;

              (iii)  the Trustee shall not be liable for any action taken,
                     suffered or omitted by it in good faith and believed by it
                     to be authorized or within the discretion or rights or
                     powers conferred upon it by this Agreement;

              (iv)   the Trustee shall not be bound to make any investigation
                     into the facts or matters stated in any resolution,
                     certificate, statement, instrument, opinion, report,
                     notice, request, consent, order, approval, bond or other
                     paper or document, unless requested in writing so to do by
                     Holders of Certificates evidencing not less than 25% of the
                     Voting Rights allocated to each Class of Certificates;
                     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
                     assured to the Trustee by the security afforded to it by
                     the terms of this Agreement, the Trustee may require
                     indemnity satisfactory to the Trustee against such cost,
                     expense or liability as a condition to taking any such
                     action. The reasonable expense of every such examination
                     shall be paid by the Master Servicer or, if paid by the
                     Trustee, shall be repaid by the Master Servicer upon demand
                     from the Servicer's own funds.

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              (v)    the Trustee may execute any of the trusts or powers
                     hereunder or perform any duties hereunder either directly
                     or by or through agents, accountants or attorneys and the
                     Trustee shall not be responsible for any misconduct or
                     negligence on the part of such agent, accountant or
                     attorney appointed by the Trustee with due care;

              (vi)   the Trustee shall not be required to risk or expend its own
                     funds or otherwise incur any financial liability in the
                     performance of any of its duties or in the exercise of any
                     of its rights or powers hereunder if it shall have
                     reasonable grounds for believing that repayment of such
                     funds or adequate indemnity against such risk or liability
                     is not assured to it;

              (vii)  the Trustee shall not be liable for any loss on any
                     investment of funds pursuant to this Agreement (other than
                     as issuer of the investment security);

              (viii) the Trustee shall not be deemed to have knowledge of an
                     Event of Default until a Responsible Officer of the Trustee
                     shall have received written notice thereof and in the
                     absence of such notice, the Trustee may conclusively assume
                     that there is no Event of Default;

              (ix)   the Trustee shall be under no obligation to exercise any of
                     the trusts, rights 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 satisfactory to the Trustee against the costs,
                     expenses and liabilities which may be incurred therein or
                     thereby;

              (x)    the right of the Trustee to perform any discretionary act
                     enumerated in this Agreement shall not be construed as a
                     duty, and the Trustee shall not be answerable for other
                     than its negligence or willful misconduct in the
                     performance of such act; and

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              (xi)   the Trustee shall not be required to give any bond or
                     surety in respect of the execution of the Trust Fund
                     created hereby or the powers granted hereunder.

              SECTION 8.3 Trustee Not Liable for Certificates or Mortgage Loans.

         The recitals contained herein and in the Certificates shall be taken as
the statements of the Depositor and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Agreement or of the Certificates or of any Mortgage Loan or
related document or of MERS or the MERS(R) System other than with respect to the
Trustee's execution and counter-signature of the Certificates. The Trustee shall
not be accountable for the use or application by the Depositor or the Master
Servicer of any funds paid to the Depositor or the Master Servicer in respect of
the Mortgage Loans or deposited in or withdrawn from the Certificate Account by
the Depositor or the Master Servicer.

              SECTION 8.4 Trustee May Own Certificates.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates with the same rights as it would have if it
were not the Trustee.

              SECTION 8.5 Trustee's Fees and Expenses.

         The Trustee, as compensation for its activities prior to making the
distributions pursuant to Section 4.2 hereunder, shall be entitled to withdraw
from the Distribution Account on each Distribution Date an amount equal to the
Trustee Fee for such Distribution Date. The Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified by the Master Servicer and
held harmless against any loss, liability or expense (including reasonable
attorney's fees) (i) incurred in connection with any claim or legal action
relating to (a) this Agreement, (b) the Certificates or (c) in connection with
the performance of any of the Trustee's duties hereunder, other than any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of any of the Trustee's duties hereunder or
incurred by reason of any action of the Trustee taken at the direction of the
Certificateholders and (ii) resulting from any error in any tax or information
return prepared by the Master Servicer. Such indemnity shall survive the
termination of this Agreement or the resignation or removal of the Trustee
hereunder. Without limiting the foregoing, the Master Servicer covenants and
agrees, except as otherwise agreed upon in writing by the Depositor and the
Trustee, and except for any such expense, disbursement or advance as may arise
from the Trustee's negligence, bad faith or willful misconduct, to pay or
reimburse the Trustee, for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of this
Agreement with respect to: (A) the reasonable compensation and the expenses and
disbursements of its counsel not associated with the closing of the issuance of
the Certificates, (B) the reasonable compensation, expenses and disbursements of
any accountant, engineer or appraiser that is not regularly employed by the
Trustee, to the extent that the Trustee must engage such persons to perform acts
or services hereunder and (C) printing and engraving expenses in connection with
preparing any Definitive Certificates. Except as otherwise provided herein, the
Trustee shall not be entitled to payment or reimbursement for any routine
ongoing expenses incurred by the Trustee in the ordinary course of its duties as
Trustee, Registrar, Tax Matters Person or Paying Agent hereunder or for any
other expenses.

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              SECTION 8.6 Eligibility Requirements for Trustee.

         The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by federal or state authority and with a credit
rating which would not cause either of the Rating Agencies to reduce their
respective then current ratings of the Certificates (or having provided such
security from time to time as is sufficient to avoid such reduction). If such
corporation or association publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 8.6 the combined capital and
surplus of such corporation or association 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 8.6, the Trustee shall resign
immediately in the manner and with the effect specified in Section 8.7 hereof.
The entity serving as Trustee may have normal banking and trust relationships
with the Depositor and its affiliates or the Master Servicer and its affiliates;
provided, however, that such entity cannot be an affiliate of the Master
Servicer other than the Trustee in its role as successor to the Master Servicer.

              SECTION 8.7 Resignation and Removal of Trustee.

         The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice of resignation to the Depositor and the
Master Servicer and each Rating Agency not less than 60 days before the date
specified in such notice when, subject to Section 8.8, such resignation is to
take effect, and acceptance by a successor trustee in accordance with Section
8.8 meeting the qualifications set forth in Section 8.6. If no successor trustee
meeting such qualifications shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice or 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 8.6 hereof and shall fail to resign after written
request thereto by the Depositor, or if at any time the Trustee shall become
incapable of acting, or shall be adjudged as bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or a tax
is imposed with respect to the Trust Fund by any state in which the Trustee or
the Trust Fund is located and the imposition of such tax would be avoided by the
appointment of a different trustee, then the Depositor or the Master Servicer
may remove the Trustee and appoint a successor trustee by written instrument, in
triplicate, one copy of which instrument shall be delivered to the Trustee, one
copy of which shall be delivered to the Master Servicer and one copy to the
successor trustee.

         The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which instruments
shall be delivered by the successor Trustee to the Master Servicer, one complete
set to the Trustee so removed and one complete set to the successor so
appointed. Notice of any removal of the Trustee shall be given to each Rating
Agency by the Successor Trustee.

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         Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.7 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.8 hereof.

              SECTION 8.8 Successor Trustee.

         Any successor trustee appointed as provided in Section 8.7 hereof shall
execute, acknowledge and deliver to the Depositor and to its predecessor trustee
and the Master Servicer an instrument accepting such appointment hereunder and
thereupon the resignation or removal of the predecessor 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 Depositor, the Master Servicer and the predecessor
trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for more fully and certainly vesting and confirming
in the successor trustee all such rights, powers, duties, and obligations.

         No successor trustee shall accept appointment as provided in this
Section 8.8 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.6 hereof and its appointment shall
not adversely affect the then current rating of the Certificates.

         Upon acceptance of appointment by a successor trustee as provided in
this Section 8.8, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of Certificates. If the Depositor fails to mail
such notice within 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 8.9 Merger or Consolidation of Trustee.

         Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the business of the Trustee, shall be the successor of
the Trustee hereunder, provided that such corporation shall be eligible under
the provisions of Section 8.6 hereof without the execution or filing of any
paper or further act on the part of any of the parties hereto, anything herein
to the contrary notwithstanding.

              SECTION 8.10 Appointment of Co-Trustee or Separate Trustee.

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         Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee to act as co-trustee or co-trustees jointly with
the Trustee, or separate trustee or separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment within 15 days after the
receipt by it of a request to do so, or in the case an Event of Default shall
have occurred and be continuing, the Trustee alone shall have the power to make
such appointment. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 8.6 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.8.

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

              (i)    To the extent necessary to effectuate the purposes of this
                     Section 8.10, 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 (it being
                     understood that such separate trustee or co-trustee is not
                     authorized to act separately without the Trustee joining in
                     such act), except to the extent that under any law of any
                     jurisdiction in which any particular act or acts are to be
                     performed (whether as Trustee hereunder or as successor to
                     the Master Servicer hereunder), the Trustee shall be
                     incompetent or unqualified to perform such act or acts, in
                     which event such rights, powers, duties and obligations
                     (including the holding of title to the applicable Trust
                     Fund or any portion thereof in any such jurisdiction) shall
                     be exercised and performed singly by such separate trustee
                     or co-trustee, but solely at the direction of the Trustee;

              (ii)   No trustee hereunder shall be held personally liable by
                     reason of any act or omission of any other trustee
                     hereunder and such appointment shall not, and shall not be
                     deemed to, constitute any such separate trustee or
                     co-trustee as agent of the Trustee;

              (iii)  The Trustee may at any time accept the resignation of or
                     remove any separate trustee or co-trustee; and

              (iv)   The Master Servicer, and not the Trustee, shall be liable
                     for the payment of reasonable compensation, reimbursement
                     and indemnification to any such separate trustee or
                     co-trustee.

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

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         Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

              SECTION 8.11 Tax Matters.

         It is intended that the assets with respect to which each REMIC
election is to be made, as set forth in the preliminary statement shall
constitute, and that the conduct of matters relating to such assets shall be
such as to qualify such assets as, a "real estate mortgage investment conduit"
as defined in and in accordance with the REMIC Provisions. In furtherance of
such intention, the Trustee covenants and agrees that it shall act as agent (and
the Trustee is hereby appointed to act as agent) on behalf of any such REMIC and
that in such capacity it shall: (a) 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 or any successor form adopted by the Internal
Revenue Service) 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 any such REMIC,
containing such information and at the times and in the manner as may be
required by the Code or state or local tax laws, regulations, or rules, and
furnish or cause to be furnished to Certificateholders the schedules, statements
or information at such times and in such manner as may be required thereby; (b)
within thirty days of the Closing Date, furnish or cause to be furnished to the
Internal Revenue Service, on Forms 8811 or as otherwise may be required by the
Code, the name, title, address, and telephone number of the person that the
Holders of the Certificates may contact for tax information relating thereto,
together with such additional information as may be required by such Form, and
update such information at the time or times in the manner required by the Code;
(c) make or cause to be made elections that such assets be treated as a REMIC on
the federal tax return for its first taxable year (and, if necessary, under
applicable state law); (d) prepare and forward, 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 and reports 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
using the prepayment assumption; (e) provide information necessary for the
computation of tax imposed on the transfer of a Residual Certificate to a Person
that is not a Permitted Transferee, or an agent (including a broker, nominee or
other middleman) of a Non-Permitted Transferee, or a pass-through entity in
which a Non-Permitted Transferee is the record holder of an interest (the

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reasonable cost of computing and furnishing such information may be charged to
the Person liable for such tax); (f) to the extent that they are under its
control conduct matters relating to such assets at all times that any
Certificates are outstanding so as to maintain the status as a REMIC under the
REMIC Provisions; (g) not knowingly or intentionally take any action or omit to
take any action that would cause the termination of any REMIC status; (h) pay,
from the sources specified in the last paragraph of this Section 8.11, the
amount of any federal or state tax, including prohibited transaction taxes as
described below, imposed on any such REMIC prior to its termination when and as
the same shall be due and payable (but such obligation shall not prevent the
Trustee or any other appropriate Person from contesting any such tax in
appropriate proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings); (i) 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;
(j) maintain records relating to any such REMIC, including but not limited to
the income, expenses, assets and liabilities thereof and the fair market value
and adjusted basis of the assets determined at such intervals as may be required
by the Code, as may be necessary to prepare the foregoing returns, schedules,
statements or information; and (k) as and when necessary and appropriate,
represent any such REMIC in any administrative or judicial proceedings relating
to an examination or audit by any governmental taxing authority, request an
administrative adjustment as to any taxable year of any such REMIC, enter into
settlement agreements with any governmental taxing agency, extend any statute of
limitations relating to any tax item of any such REMIC, and otherwise act on
behalf of any such REMIC in relation to any tax matter or controversy involving
it.

         In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten (10) days after the Closing Date all information or data that the
Trustee requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, reasonably request
in order to enable the Trustee to perform its duties as set forth herein. The
Depositor hereby indemnifies the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result from any failure of the Depositor to provide, or to
cause to be provided, accurate information or data to the Trustee on a timely
basis.

         In the event that any tax is imposed on "prohibited transactions" of
any REMIC as defined in Section 860F(a)(2) of the Code, on the "net income from
foreclosure property" of any REMIC as defined in Section 860G(c) of the Code, on
any contribution to any REMIC after the Startup Day pursuant to Section 860G(d)
of the Code, or any other tax is imposed, if not paid as otherwise provided for
herein, such tax shall be paid by (i) the Trustee, if any such other tax arises
out of or results from a breach by the Trustee of any of its obligations under
this Agreement which breach was caused by its negligence or willful misconduct,
(ii) the Master Servicer, in the case of any such minimum tax, or if such tax
arises out of or results from a breach by the Master Servicer of any of their
obligations under this Agreement, (iii) the Seller, if any such tax arises out
of or results from the Seller's obligation to repurchase a Mortgage Loan
pursuant to Section 2.2 or 2.3 or (iv) in all other cases, or in the event that
the Trustee, the Master Servicer or the Seller fails to honor its obligations
under the preceding clauses (i), (ii) or (iii), any such tax will be paid with
amounts otherwise to be distributed to the Certificateholders, as provided in
Section 3.8(b).

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              SECTION 8.12 Periodic Filings.

         The Depositor hereby directs the Trustee to prepare, execute (pursuant
to a limited power of attorney given to the Trustee by the Depositor) and file
on behalf of the Depositor all periodic reports required under the Securities
Exchange Act of 1934 in conformity with the terms of the "no-action" relief
granted by the SEC to issuers of asset-backed securities such as the
Certificates and the Trustee hereby agrees to do so. The Master Servicer will
also prepare and execute any certifications to be filed with the Form 10-K as
required under the Sarbanes-Oxley Act of 2002. In connection with the
preparation and filing of such periodic reports, the Depositor and the Master
Servicer shall timely provide to the Trustee all material information available
to them which is required to be included in such reports and not known to them
to be in the possession of the Trustee and such other information as the Trustee
reasonably may request from either of them and otherwise reasonably shall
cooperate with the Trustee. The Trustee shall have no liability with respect to
any failure to properly prepare or file such periodic reports resulting from or
relating to the Trustee's inability or failure to obtain any information not
resulting from its own negligence or willful misconduct.

                                   ARTICLE IX
                                   TERMINATION

              SECTION 9.1 Termination upon Liquidation or Purchase of all
         Mortgage Loans.

         Subject to Section 9.3, the obligations and responsibilities of the
Depositor, the Master Servicer and the Trustee created hereby with respect to
the Trust Fund shall terminate upon the earlier of (a) the purchase by the
Master Servicer of all Mortgage Loans (and REO Properties) remaining in the
Trust Fund at the price equal to the sum of (i) 100% of the Stated Principal
Balance of each Mortgage Loan (other than a Mortgage Loan that has been
foreclosed and subject to clause (ii)) plus one month's accrued interest thereon
at the applicable Adjusted Mortgage Rate, (ii) the lesser of (x) the appraised
value of any REO Property as determined by the higher of two appraisals
completed by two independent appraisers selected by the Master Servicer at the
expense of the Master Servicer and (y) the Stated Principal Balance of each
Mortgage Loan related to any REO Property, plus accrued and unpaid interest
thereon at the applicable Adjusted Mortgage Rate, and (iii) any costs and
damages incurred by the Trust in connection with the noncompliance of such
Mortgage Loan with any specifically applicable predatory or abusive lending law,
and (b) the later of (i) the maturity or other liquidation (or any Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust Fund and the
disposition of all REO Property and (ii) the distribution to Certificateholders
of all amounts required to be distributed to them pursuant to this Agreement. In
no event shall the trusts created hereby continue beyond the earlier of (i) the
expiration of 21 years from the death of the survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof, and (ii) the Latest Possible Maturity Date.
The right to purchase all Mortgage Loans and REO Properties pursuant to clause
(a) above shall be conditioned upon the Pool Principal Balance, at the time of
any such repurchase, being less than ten percent (10%) of the Cut-off Date Pool
Principal Balance.

                                      101
<PAGE>

              SECTION 9.2 Final Distribution on the Certificates.

         If on any Determination Date, the Master Servicer determines that there
are no Outstanding Mortgage Loans and no other funds or assets in the Trust Fund
other than the funds in the Certificate Account, the Master Servicer shall
direct the Trustee promptly to send a final distribution notice to each
Certificateholder. If the Master Servicer elects to terminate the Trust Fund
pursuant to clause (a) of Section 9.1, at least 20 days prior to the date notice
is to be mailed to the affected Certificateholders, the Master Servicer shall
notify the Depositor and the Trustee of the date the Master Servicer intends to
terminate the Trust Fund and of the applicable repurchase price of the Mortgage
Loans and REO Properties.

         Notice of any termination of the Trust Fund, specifying the
Distribution Date on which Certificateholders may surrender their Certificates
for payment of the final distribution and cancellation, shall be given promptly
by the Trustee by letter to Certificateholders mailed not earlier than the 10th
day and no later than the 15th day of the month next preceding the month of such
final distribution. Any such notice shall specify (a) the Distribution Date upon
which final distribution on the Certificates will be made upon presentation and
surrender of Certificates at the office therein designated, (b) the amount of
such final distribution, (c) the location of the office or agency at which such
presentation and surrender must be made, and (d) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office therein
specified. The Master Servicer will give such notice to each Rating Agency at
the time such notice is given to Certificateholders.

         In the event such notice is given, the Master Servicer shall cause all
funds in the Certificate Account to be remitted to the Trustee for deposit in
the Distribution Account on the Business Day prior to the applicable
Distribution Date in an amount equal to the final distribution in respect of the
Certificates. Upon such final deposit with respect to the Trust Fund and the
receipt by the Trustee of a Request for Release therefor, the Trustee shall
promptly release to the Master Servicer the Mortgage Files for the Mortgage
Loans.

         Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to the Certificateholders of each Class, in the order
set forth in Section 4.2 hereof, on the final Distribution Date, in the case of
the Certificateholders, in proportion to their respective Percentage Interests,
with respect to Certificateholders of the same Class, an amount equal to (i) as
to each Class of Regular Certificates, the Class Certificate Balance thereof
plus accrued interest thereon in the case of an interest bearing Certificate,
and (ii) as to the Residual Certificates, the amount, if any, which remains on
deposit in the Distribution Account (other than the amounts retained to meet
claims) after application pursuant to clause (i) above.

         In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all the applicable Certificates shall not
have been surrendered for cancellation, the Trustee may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets which remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Holders of each of the
Class A-R Certificates shall be entitled to all unclaimed funds and other assets
of the Trust Fund, held for distribution to such Certificateholders, which
remain subject hereto.

                                      102
<PAGE>

              SECTION 9.3 Additional Termination Requirements.

         (a)  In the event the Master Servicer exercises its purchase option as
              provided in Section 9.1, the Trust Fund and each REMIC created
              hereunder shall be terminated in accordance with the following
              additional requirements, unless the Trustee has been supplied with
              an Opinion of Counsel, at the expense of the Master Servicer, to
              the effect that the failure to comply with the requirements of
              this Section 9.3 will not (i) result in the imposition of taxes on
              "prohibited transactions" on any REMIC as defined in Section 860F
              of the Code, or (ii) cause any REMIC to fail to qualify as a REMIC
              at any time that any Certificates are outstanding:

                          (1) Within 90 days prior to the final Distribution
                  Date set forth in the notice given by the Master Servicer
                  under Section 9.2, the Master Servicer shall prepare and the
                  Trustee, at the expense of the "tax matters person," shall
                  adopt a plan of complete liquidation within the meaning of
                  Section 860F(a)(4) of the Code for each REMIC created
                  hereunder which, as evidenced by an Opinion of Counsel
                  addressed to the Trustee (which opinion shall not be an
                  expense of the Trustee or the Tax Matters Person), meets the
                  requirements of a qualified liquidation; and

                          (2) Within 90 days after the time of adoption of such
                  plans of complete liquidation, the Trustee shall sell all of
                  the assets of the Trust Fund to the Master Servicer for cash
                  in accordance with Section 9.1.

         (b)  The Trustee as agent for any REMIC established hereunder hereby
              agrees to adopt and sign such a plan of complete liquidation upon
              the written request of the Master Servicer, and the receipt of the
              Opinion of Counsel referred to in Section 9.3(a)(1) and to take
              such other action in connection therewith as may be reasonably
              requested by the Master Servicer.

         (c)  By their acceptance of the Certificates, the Holders thereof
              hereby authorize the Master Servicer to prepare and the Trustee to
              adopt and sign plans of complete liquidation.

                                      103
<PAGE>

                                   ARTICLE X
                                  [RESERVED]

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

              SECTION 11.1 Amendment.

         This Agreement may be amended from time to time by the Depositor, the
Master Servicer and the Trustee without the consent of any of the
Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any
defective provision herein or to supplement any provision herein which may be
inconsistent with any other provision herein, (iii) to add to the duties of the
Depositor, the Seller or the Master Servicer, (iv) to add any other provisions
with respect to matters or questions arising hereunder or (v) to modify, alter,
amend, add to or rescind any of the terms or provisions contained in this
Agreement; provided that any action pursuant to clauses (iv) or (v) above shall
not, as evidenced by an Opinion of Counsel delivered to the Trustee (which
Opinion of Counsel shall not be an expense of the Trustee or the Trust Fund),
adversely affect in any material respect the interests of any Certificateholder;
provided, however, that the amendment shall not be deemed to adversely affect in
any material respect the interests of the Certificateholders if the Person
requesting the amendment obtains a letter from each Rating Agency stating that
the amendment would not result in the downgrading or withdrawal of the
respective ratings then assigned to the Certificates; it being understood and
agreed that any such letter in and of itself will not represent a determination
as to the materiality of any such amendment and will represent a determination
only as to the credit issues affecting any such rating. The Trustee, the
Depositor and the Master Servicer also may at any time and from time to time
amend this Agreement without the consent of the Certificateholders to modify,
eliminate or add to any of its provisions to such extent as shall be necessary
or helpful to (i) maintain the qualification of any REMIC established hereunder
as a REMIC under the Code, (ii) avoid or minimize the risk of the imposition of
any tax on any REMIC established hereunder pursuant to the Code that would be a
claim at any time prior to the final redemption of the Certificates or (iii)
comply with any other requirements of the Code, provided that the Trustee has
been provided an Opinion of Counsel, which opinion shall be an expense of the
party requesting such opinion but in any case shall not be an expense of the
Trustee or the Trust Fund, to the effect that such action is necessary or
helpful to, as applicable, (i) maintain such qualification, (ii) avoid or
minimize the risk of the imposition of such a tax or (iii) comply with any such
requirements of the Code.

         This Agreement may also be amended from time to time by the Depositor,
the Master Servicer and the Trustee with the consent of the Holders of a
Majority in Interest of each Class of Certificates affected thereby for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Holders of Certificates; provided, however, that no such amendment shall (i)
reduce in any manner the amount of, or delay the timing of, payments required to
be distributed on any Certificate without the consent of the Holder of such
Certificate, (ii) adversely affect in any material respect the interests of the
Holders of any Class of Certificates in a manner other than as described in (i),
without the consent of the Holders of Certificates of such Class evidencing, as
to such Class, Percentage Interests aggregating 66%, or (iii) reduce the
aforesaid percentages of Certificates the Holders of which are required to
consent to any such amendment, without the consent of the Holders of all such
Certificates then outstanding.

                                      104
<PAGE>

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, which opinion shall not be an expense of the
Trustee or the Trust Fund, to the effect that such amendment will not cause the
imposition of any tax on any REMIC established hereunder or the
Certificateholders or cause any REMIC established hereunder to fail to qualify
as a REMIC at any time that any Certificates are outstanding.

         Promptly after the execution of any amendment to this Agreement
requiring the consent of Certificateholders, the Trustee shall furnish written
notification of the substance or a copy of such amendment to each
Certificateholder and each Rating Agency.

         It shall not be necessary for the consent of Certificateholders under
this Section 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.

         Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund), satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with; and (ii)
either (A) the amendment does not adversely affect in any material respect the
interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 11.1.

              SECTION 11.2 Recordation of Agreement; Counterparts.

         This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Master Servicer at its expense, but only
upon direction by a majority of the Certificateholders to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders.

         For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed (by
facsimile or otherwise) 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 11.3 Governing Law.

         THIS AGREEMENT (OTHER THAN SECTION 2.1 HEREOF) SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE
CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. SECTION 2.1
OF THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
SUBSTANTIVE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO
BE PERFORMED IN THE STATE OF DELAWARE AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS UNDER SUCH SECTION SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      105
<PAGE>

              SECTION 11.4 Intention of Parties.

         It is the express intent of the parties hereto that the conveyance of
the Trust Fund by the Depositor to the Trustee be, and be construed as, absolute
sales thereof to the Trustee. It is, further, not the intention of the parties
that such conveyances be deemed a pledge thereof by the Depositor to the
Trustee. However, in the event that, notwithstanding the intent of the parties,
such assets are held to be the property of the Depositor, or if for any other
reason this Agreement is held or deemed to create a security interest in such
assets, then (i) this Agreement shall be deemed to be a security agreement
within the meaning of the Uniform Commercial Code of the State of New York and
(ii) the conveyance provided for in this Agreement shall be deemed to be an
assignment and a grant by the Depositor to the Trustee, for the benefit of the
Certificateholders, of a security interest in all of the assets that constitute
the Trust Fund, whether now owned or hereafter acquired.

         The Depositor, for the benefit of the Certificateholders, shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
Trust Fund, such security interest would be deemed to be a perfected security
interest of first priority under applicable law and will be maintained as such
throughout the term of the Agreement. The Depositor shall arrange for filing any
Uniform Commercial Code financing and continuation statements in connection with
any security interest granted or assigned to the Trustee for the benefit of the
Certificateholders.

              SECTION 11.5 Notices.

         (a)  The Trustee shall use its best efforts to promptly provide notice
              to each Rating Agency with respect to each of the following of
              which it has actual knowledge:

                          (A) Any material change or amendment to this
                              Agreement;

                          (B) The occurrence of any Event of Default that has
                              not been cured;

                          (C) The resignation or termination of the Master
                              Servicer or the Trustee and the appointment of any
                              successor;

                          (D) The repurchase or substitution of Mortgage Loans
                              pursuant to Section 2.3; and

                          (E) The final payment to Certificateholders.

                                      106
<PAGE>

                          (F) Any rating action involving the long-term credit
                              rating of the Master Servicer, which notice shall
                              be made by first-class mail within two Business
                              Days after the Trustee gains actual knowledge
                              thereof.

         In addition, the Trustee shall promptly furnish to each Rating Agency
copies of the following:

                          (G) Each report to Certificateholders described in
                              Section 4.6;

                          (H) Each annual statement as to compliance described
                              in Section 3.16;

                          (I) Each annual independent public accountants'
                              servicing report described in Section 3.17; and

                          (J) Any notice of a purchase of a Mortgage Loan
                              pursuant to Section 2.2, 2.3 or 3.11.

         (b)  All directions, demands, authorizations, consents, waivers,
              communications and notices hereunder shall be in writing and shall
              be deemed to have been duly given when delivered to by first class
              mail, facsimile or courier (a) in the case of the Depositor, First
              Horizon Asset Securities Inc., 4000 Horizon Way, Irving, Texas
              75063, Attention: Alfred Chang; (b) in the case of the Master
              Servicer, First Horizon Home Loan Corporation, 4000 Horizon Way,
              Irving, Texas 75063, Attention: Larry P. Cole or such other
              address as may be hereafter furnished to the Depositor and the
              Trustee by the Master Servicer in writing; (c) in the case of the
              Trustee, The Bank of New York, 101 Barclay Street, 8W, New York,
              New York 10286, Attention: Diane Pickett, or such other address as
              the Trustee may hereafter furnish to the Depositor or Master
              Servicer, and (d) in the case of the Rating Agencies, the address
              specified therefor in the definition corresponding to the name of
              such Rating Agency. Notices to Certificateholders shall be deemed
              given when mailed, first class postage prepaid, to their
              respective addresses appearing in the Certificate Register.

              SECTION 11.6 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 or of the Certificates or the rights of the Holders thereof.

              SECTION 11.7 Assignment.

         Notwithstanding anything to the contrary contained herein, except as
provided in Section 6.2, this Agreement may not be assigned by the Master
Servicer without the prior written consent of the Trustee and Depositor.

                                      107
<PAGE>

              SECTION 11.8 Limitation on Rights of Certificateholders.

         The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

         No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything 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
party 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 or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of an Event of Default and of the continuance thereof, as herein provided, and
unless the Holders of Certificates evidencing not less than 25% of the Voting
Rights evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby, and the Trustee, for 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
shall have any right in any manner whatever by virtue or by availing itself or
themselves of any provisions of this Agreement to affect, disturb or prejudice
the rights of the Holders of any other of the Certificates, or to obtain or seek
to obtain priority over or preference to any other such Holder or to enforce any
right under this Agreement, except in the manner herein provided and for the
common benefit of all Certificateholders. For the protection and enforcement of
the provisions of this Section 11.8, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

              SECTION 11.9 Inspection and Audit Rights.

         The Master Servicer agrees that, on reasonable prior notice, it will
permit and will cause each Subservicer to permit any representative of the
Depositor or the Trustee during the Master Servicer's normal business hours, to
examine all the books of account, records, reports and other papers of the
Master Servicer relating to the Mortgage Loans, to make copies and extracts
therefrom, to cause such books to be audited by independent certified public
accountants selected by the Depositor or the Trustee and to discuss its affairs,
finances and accounts relating to the Mortgage Loans with its officers,
employees and independent public accountants (and by this provision the Master
Servicer hereby authorizes said accountants to discuss with such representative
such affairs, finances and accounts), all at such reasonable times and as often
as may be reasonably requested. Any out-of-pocket expense incident to the
exercise by the Depositor or the Trustee of any right under this Section 11.9
shall be borne by the party requesting such inspection; all other such expenses
shall be borne by the Master Servicer or the related Subservicer.

                                      108
<PAGE>

              SECTION 11.10 Certificates Nonassessable and Fully Paid.

         It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

              SECTION 11.11 Limitations on Actions; No Proceedings.

         (a)  Other than pursuant to this Agreement, or in connection with or
              incidental to the provisions or purposes of this Agreement, the
              trust created hereunder shall not (i) issue debt or otherwise
              borrow money, (ii) merge or consolidate with any other entity
              reorganize, liquidate or transfer all or substantially all of its
              assets to any other entity, or (iii) otherwise engage in any
              activity or exercise any power not provided for in this Agreement.

         (b)  Notwithstanding any prior termination of this Agreement, the
              Trustee, the Master Servicer and the Depositor shall not, prior to
              the date which is one year and one day after the termination of
              this Agreement, acquiesce, petition or otherwise invoke or cause
              any Person to invoke the process of any court or government
              authority for the purpose of commencing or sustaining a case
              against the Depositor or the Trust Fund under any federal or state
              bankruptcy, insolvency or other similar law or appointing a
              receiver, liquidator, assignee, trustee, custodian, sequestrator
              or other similar official of the Depositor or the Trust Fund or
              any substantial part of their respective property, or ordering the
              winding up or liquidation of the affairs of the Depositor or the
              Trust Fund.

              SECTION 11.12 Acknowledgment of Seller.

         Seller hereby acknowledges the provisions of this Agreement, including
the obligations under Sections 2.1(a), 2.2, 2.3(b) and 8.11 of this Agreement
and further acknowledges the Depositor's assignment of its rights and remedies
for the breach of the representations and warranties made by the Seller under
the MLPA.

                                   * * * * * *

                                      109
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Trustee and the Master Servicer
have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written.

                                  FIRST HORIZON ASSET SECURITIES INC.,
                                  as Depositor

                                  By:
                                      ------------------------------------------
                                      Alfred Chang
                                      Vice President

                                  THE BANK OF NEW YORK,
                                  not in its individual capacity, but solely as
                                  Trustee

                                  By:
                                      ------------------------------------------
                                      Diane Pickett
                                      Vice President

                                  FIRST HORIZON HOME LOAN CORPORATION, in its
                                  capacity as Master Servicer

                                  By:
                                      ------------------------------------------
                                      Terry McCoy
                                      Executive Vice President

The foregoing agreement is hereby acknowledged and accepted as of the date first
above written:

FIRST HORIZON HOME LOAN CORPORATION,
in its capacity as Seller

By:
   --------------------------------
   Terry McCoy
   Executive Vice President

<PAGE>

                                   SCHEDULE I

                       First Horizon Asset Securities Inc.
               Mortgage Pass-Through Certificates Series 2005-FA9

                             Mortgage Loan Schedule

                      [Available Upon Request from Trustee]

                                      I-1
<PAGE>

                                   SCHEDULE II

                       First Horizon Asset Securities Inc.
               Mortgage Pass-Through Certificates Series 2005-FA9

              Representations and Warranties of the Master Servicer

         First Horizon Home Loan Corporation ("First Horizon") hereby makes the
representations and warranties set forth in this Schedule II to the Depositor
and the Trustee, as of the Closing Date, or if so specified herein, as of the
Cut-off Date. Capitalized terms used but not otherwise defined in this Schedule
II shall have the meanings ascribed thereto in the Pooling and Servicing
Agreement (the "Pooling and Servicing Agreement") relating to the
above-referenced Series, among First Horizon, as master servicer, First Horizon
Asset Securities Inc., as depositor, and The Bank of New York, as trustee.

                  (1) First Horizon is duly organized as a Kansas corporation
         and is validly existing and in good standing under the laws of the
         State of Kansas and is duly authorized and qualified to transact any
         and all business contemplated by the Pooling and Servicing Agreement to
         be conducted by First Horizon in any state in which a Mortgaged
         Property is located or is otherwise not required under applicable law
         to effect such qualification and, in any event, is in compliance with
         the doing business laws of any such state, to the extent necessary to
         ensure its ability to enforce each Mortgage Loan, to service the
         Mortgage Loans in accordance with the terms of the Pooling and
         Servicing Agreement and to perform any of its other obligations under
         the Pooling and Servicing Agreement in accordance with the terms
         thereof.

                  (2) First Horizon has the full corporate power and authority
         to service each Mortgage Loan, and to execute, deliver and perform, and
         to enter into and consummate the transactions contemplated by the
         Pooling and Servicing Agreement and has duly authorized by all
         necessary corporate action on the part of First Horizon the execution,
         delivery and performance of the Pooling and Servicing Agreement; and
         the Pooling and Servicing Agreement, assuming the due authorization,
         execution and delivery thereof by the other parties thereto,
         constitutes a legal, valid and binding obligation of First Horizon,
         enforceable against First Horizon in accordance with its terms, except
         that (a) the enforceability thereof may be limited by bankruptcy,
         insolvency, moratorium, receivership and other similar laws relating to
         creditors' rights generally and (b) the remedy of specific performance
         and injunctive and other forms of equitable relief may be subject to
         equitable defenses and to the discretion of the court before which any
         proceeding therefor may be brought.

                                      II-1
<PAGE>

                  (3) The execution and delivery of the Pooling and Servicing
         Agreement by First Horizon, the servicing of the Mortgage Loans by
         First Horizon under the Pooling and Servicing Agreement, the
         consummation of any other of the transactions contemplated by the
         Pooling and Servicing Agreement, and the fulfillment of or compliance
         with the terms thereof are in the ordinary course of business of First
         Horizon and will not (A) result in a material breach of any term or
         provision of the charter or by-laws of First Horizon or (B) materially
         conflict with, result in a material breach, violation or acceleration
         of, or result in a material default under, the terms of any other
         material agreement or instrument to which First Horizon is a party or
         by which it may be bound, or (C) constitute a material violation of any
         statute, order or regulation applicable to First Horizon of any court,
         regulatory body, administrative agency or governmental body having
         jurisdiction over First Horizon; and First Horizon is not in breach or
         violation of any material indenture or other material agreement or
         instrument, or in violation of any statute, order or regulation of any
         court, regulatory body, administrative agency or governmental body
         having jurisdiction over it which breach or violation may materially
         impair First Horizon's ability to perform or meet any of its
         obligations under the Pooling and Servicing Agreement.

                  (4) No litigation is pending or, to the best of First
         Horizon's knowledge, threatened against First Horizon that would
         prohibit the execution or delivery of, or performance under, the
         Pooling and Servicing Agreement by First Horizon.

                  (5) First Horizon is a member of MERS in good standing, and
         will comply in all material respects with the rules and procedures of
         MERS in connection with the servicing of the MERS Mortgage Loans for as
         along as such Mortgage Loans are registered with MERS.

                                      II-2
<PAGE>

                                  SCHEDULE III

                       First Horizon Asset Securities Inc.
               Mortgage Pass-Through Certificates Series 2005-FA9

                     Form of Monthly Master Servicer Report

                              [Begins on Next Page]

                                     III-1
<PAGE>

                                   EXHIBIT A-1

                           [FORM OF SENIOR CERTIFICATE

                     OTHER THAN THE CLASS A-PO CERTIFICATES]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

                                     A-I-1
<PAGE>

Certificate No.                   :
Cut-off Date                      :
First Distribution Date           :
Initial Certificate Balance of
this Certificate ("Denominations"):  $
Initial Certificate
Balances of all
Certificate of this
Class                             :  $
CUSIP                             :

          First Horizon Alternative Mortgage Securities Trust 2005-FA9
               Mortgage Pass-Through Certificates, Series 2005-FA9
                                Class [________]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of one or more pools of conventional mortgage
         loans (the "Mortgage Loans") secured by first liens on one- to
         four-family residential properties.

                First Horizon Asset Securities Inc., as Depositor

         [Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein.] This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that __________________ is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate Initial Certificate Balances
of all Certificates of the Class to which this Certificate belongs) in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage Loans deposited by First Horizon Asset Securities Inc. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, First Horizon Home Loan Corporation, as master servicer (the
"Master Servicer"), and The Bank of New York, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                     A-I-2
<PAGE>

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

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

                                     A-I-3
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  October __, 2005

                                  THE BANK OF NEW YORK,
                                  not in its individual capacity, but solely
                                  as Trustee

                                  By:___________________________________________
                                     Authorized Signatory of
                                     THE BANK OF NEW YORK
                                     not in its individual capacity,
                                     but solely as Trustee

Countersigned:

By ___________________________
   Authorized Signatory of
   THE BANK OF NEW YORK,
   not in its individual capacity,
   but solely as Trustee

                                     A-I-4
<PAGE>

                                   EXHIBIT A-2

                           [FORM OF SENIOR CERTIFICATE

                            [CLASS A-PO] CERTIFICATE]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN SUBJECT TO SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT TO SECTION 4975 OF THE
CODE, OR, IF THE CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE
AGREEMENT REFERRED TO HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL
IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH
REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE
TRANSFEREE'S ACCEPTANCE OF A CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL
OWNER'S ACCEPTANCE OF ITS INTEREST IN A CERTIFICATE OF THIS CLASS.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES ("BLUE SKY LAWS"), AND SUCH CERTIFICATE MAY NOT BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (C) TO AN
INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7)
OF REGULATION D UNDER THE SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE BLUE SKY LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY
OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALES OF THIS CERTIFICATE.

THIS CLASS [A-PO] CERTIFICATE SHALL NOT BE ENTITLED TO ANY PAYMENTS IN RESPECT
OF INTEREST.

                                     A-I-5
<PAGE>

Certificate No.                   :
Cut-off Date                      :
First Distribution Date           :
Initial Certificate Balance of
this Certificate ("Denominations"):  $
Initial Certificate
Balances of all
Certificate of this
Class                             :  $
CUSIP                             :

          First Horizon Alternative Mortgage Securities Trust 2005-FA9
               Mortgage Pass-Through Certificates, Series 2005-FA9
                                   Class A-PO

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of one or more pools of conventional mortgage
         loans (the "Mortgage Loans") secured by first liens on one- to
         four-family residential properties.

                First Horizon Asset Securities Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that __________________ is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate Initial Certificate Balances
of all Certificates of the Class to which this Certificate belongs) in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage Loans deposited by First Horizon Asset Securities Inc. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, First Horizon Home Loan Corporation, as master servicer (the
"Master Servicer"), and The Bank of New York, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                     A-I-6
<PAGE>

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

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

                                     A-I-7
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  July ___, 2005

                                  THE BANK OF NEW YORK,
                                  not in its individual capacity, but solely
                                  as Trustee

                                  By: __________________________________________
                                      Authorized Signatory of
                                      THE BANK OF NEW YORK
                                      not in its individual capacity,
                                      but solely as Trustee

Countersigned:

By ___________________________
   Authorized Signatory of
   THE BANK OF NEW YORK,
   not in its individual capacity,
   but solely as Trustee

                                     A-I-8
<PAGE>

                                    EXHIBIT B

                       [FORM OF SUBORDINATED CERTIFICATE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

[THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES ("BLUE SKY LAWS"), AND SUCH CERTIFICATE MAY NOT BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (C) TO AN
INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7)
OF REGULATION D UNDER THE SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE BLUE SKY LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY
OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALES OF THIS CERTIFICATE.]

                                      B-1
<PAGE>

[NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION
4975 OF THE CODE, OR, IF SUCH PURCHASER IS AN INSURANCE COMPANY AND THE
CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, A
REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO
HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH REPRESENTATION SHALL BE
DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF A
CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL OWNER'S ACCEPTANCE OF ITS INTEREST
IN A CERTIFICATE OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF
COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO
EFFECT.]

                                      B-2
<PAGE>

Certificate No.                   :
Cut-off Date                      :
First Distribution Date           :
Initial Certificate Balance of
this Certificate ("Denominations"):  $
Initial Certificate
Balances of all
Certificate of this
Class                             :  $
CUSIP                             :

          First Horizon Alternative Mortgage Securities Trust 2005-FA9
               Mortgage Pass-Through Certificates, Series 2005-FA9
                                   Class [___]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of one or more pools of conventional mortgage
         loans (the "Mortgage Loans") secured by first liens on one- to
         four-family residential properties.

                First Horizon Asset Securities Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that ___________ is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate Initial Certificate Balances
of the denominations of all Certificates of the Class to which this Certificate
belongs) in certain monthly distributions with respect to a Trust Fund
consisting primarily of the Mortgage Loans deposited by First Horizon Asset
Securities Inc. (the "Depositor"). The Trust Fund was created pursuant to a
Pooling and Servicing Agreement dated as of the Cut-off Date specified above
(the "Agreement") among the Depositor, First Horizon Home Loan Corporation, as
master servicer (the "Master Servicer"), and The Bank of New York, as trustee
(the "Trustee"). To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                                      B-3
<PAGE>

         [No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such laws. In the event that a
transfer is to be made in reliance upon an exemption from the Securities Act and
such laws, in order to assure compliance with the Securities Act and such laws,
the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee in
writing the facts surrounding the transfer. In the event that such a transfer is
to be made within two years from the date of the initial issuance of
Certificates pursuant hereto, there shall also be delivered (except in the case
of a transfer pursuant to Rule 144A of the Securities Act) to the Trustee an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Securities Act and such state securities laws, which Opinion of Counsel
shall not be obtained at the expense of the Trustee, the Seller, the Master
Servicer or the Depositor. The Holder hereof desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee and the Depositor against
any liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.]

         [No transfer of a Certificate of this Class shall be made unless the
Trustee shall have received either (i) a representation [letter] from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan or arrangement subject to Section 406 of ERISA or Section
4975 of the Code, nor a person acting on behalf of any such plan, which
representation letter shall not be an expense of the Trustee , the Depositor or
the Master Servicer, (ii) if the purchaser is an insurance company and the
certificate has been subject to an ERISA-Qualifying Underwriting, a
representation that the purchaser is an insurance company which is purchasing
such Certificates with funds contained in an "insurance company general account"
(as such term is defined in Section V(e) of Prohibited Transaction Class
Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of such
Certificates are covered under Sections I and III of PTCE 95-60 or (iii) in the
case of any such Certificate presented for registration in the name of an
employee benefit plan subject to ERISA or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), or a trustee of any such
plan or any other person acting on behalf of any such plan, an Opinion of
Counsel satisfactory to the Trustee to the effect that the purchase or holding
of such Certificate will not result in prohibited transactions under Section 406
of ERISA and Section 4975 of the Code and will not subject the Trustee, the
Depositor or the Master Servicer to any obligation in addition to those
undertaken in the Agreement, which Opinion of Counsel shall not be an expense of
the Trustee, the Depositor or the Master Servicer. [Such representation shall be
deemed to have been made to the Trustee by the Transferee's acceptance of a
Certificate of this Class and by a beneficial owner's acceptance of its interest
in a Certificate of this Class.] Notwithstanding anything else to the contrary
herein, any purported transfer of a Certificate of this Class to or on behalf of
an employee benefit plan subject to ERISA or to the Code without the opinion of
counsel satisfactory to the Trustee as described above shall be void and of no
effect.]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.

                                      B-4
<PAGE>

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

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

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  October __, 2005

                                  THE BANK OF NEW YORK,
                                  not in its individual capacity, but solely
                                  as Trustee

                                  By: _________________________________________
                                      Authorized Signatory of
                                      THE BANK OF NEW YORK
                                      not in its individual capacity,
                                      but solely as Trustee

Countersigned:

By ___________________________
   Authorized Signatory of
   THE BANK OF NEW YORK,
   not in its individual capacity,
   but solely as Trustee

                                      B-5
<PAGE>

                                    EXHIBIT C

                         [FORM OF RESIDUAL CERTIFICATE]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS ONE OR
MORE "RESIDUAL INTERESTS" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

[THIS CERTIFICATE REPRESENTS THE "TAX MATTERS PERSON RESIDUAL INTEREST" ISSUED
UNDER THE POOLING AND SERVICING AGREEMENT REFERRED TO BELOW AND MAY NOT BE
TRANSFERRED TO ANY PERSON EXCEPT IN CONNECTION WITH THE ASSUMPTION BY THE
TRANSFEREE OF THE DUTIES OF THE SERVICER UNDER SUCH AGREEMENT.]

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION
4975 OF THE CODE, OR, IF SUCH PURCHASER IS AN INSURANCE COMPANY, A
REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO
HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH REPRESENTATION SHALL BE
DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF A
CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL OWNER'S ACCEPTANCE OF ITS INTEREST
IN A CERTIFICATE OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF
COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO
EFFECT.

                                      C-1
<PAGE>

Certificate No.                   :
Cut-off Date                      :
First Distribution Date           :
Initial Certificate Balance of
this Certificate ("Denominations"):  $
Initial Certificate
Balances of all
Certificate of this
Class                             :  $
CUSIP                             :

          First Horizon Alternative Mortgage Securities Trust 2005-FA9
               Mortgage Pass-Through Certificates, Series 2005-FA9

                  evidencing the distributions allocable to the [Class A-R]
         Certificates with respect to a Trust Fund consisting primarily of one
         or more pools of conventional mortgage loans (the "Mortgage Loans")
         secured by first liens on one- to four-family residential properties.

                First Horizon Asset Securities Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that _________________ is the registered owner of the
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Initial Certificate Balances of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting of the Mortgage Loans
deposited by First Horizon Asset Securities Inc. (the "Depositor"). The Trust
Fund was created pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among the Depositor, First
Horizon Home Loan Corporation, as master servicer (the "Master Servicer"), and
The Bank of New York, as trustee (the "Trustee"). To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                                      C-2
<PAGE>

         Any distribution of the proceeds of any remaining assets of the Trust
Fund will be made only upon presentment and surrender of this [Class A-R]
Certificate at the Corporate Trust Office or the office or agency maintained by
the Trustee in New York, New York. This Class A-R Certificate represents an
ownership in the RL Interest and RU Interest, as defined in the Agreement

         No transfer of a [Class A-R] Certificate shall be made unless the
Trustee shall have received either (i) a representation [letter] from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan or arrangement subject to Section 406 of ERISA or Section
4975 of the Code, nor a person acting on behalf of any such plan, which
representation letter shall not be an expense of the Trustee, the Depositor or
the Master Servicer, (ii) if the purchaser is an insurance company, a
representation that the purchaser is an insurance company which is purchasing
such Certificate with funds contained in an "insurance company general account"
(as such term is defined in Section V(e) of Prohibited Transaction Class
Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of such
Certificate are covered under Sections I and III of PTCE 95-60 or (iii) in the
case of any such Certificate presented for registration in the name of an
employee benefit plan subject to ERISA or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), or a trustee of any such
plan or any other person acting on behalf of any such plan, an Opinion of
Counsel satisfactory to the Trustee to the effect that the purchase or holding
of such Class A-R Certificate will not result in prohibited transactions under
Section 406 of ERISA and Section 4975 of the Code and will not subject the
Trustee, the Depositor and the Master Servicer to any obligation in addition to
those undertaken in the Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Depositor or the Master Servicer. [Such
representation shall be deemed to have been made to the Trustee by the
Transferee's acceptance of this Class A-R Certificate and by a beneficial
owner's acceptance of its interest in such Certificate.] Notwithstanding
anything else to the contrary herein, any purported transfer of a Class A-R
Certificate to or on behalf of an employee benefit plan subject to ERISA or to
the Code without the opinion of counsel satisfactory to the Trustee as described
above shall be void and of no effect.

         Each Holder of this [Class A-R] Certificate will be deemed to have
agreed to be bound by the restrictions of the Agreement, including but not
limited to the restrictions that (i) each person holding or acquiring any
Ownership Interest in this [Class A-R] Certificate must be a Permitted
Transferee, (ii) no Ownership Interest in this [Class A-R] Certificate may be
transferred without delivery to the Trustee of (a) a transfer affidavit of the
proposed transferee and (b) a transfer certificate of the transferor, each of
such documents to be in the form described in the Agreement, (iii) each person
holding or acquiring any Ownership Interest in this [Class A-R] Certificate must
agree to require a transfer affidavit and to deliver a transfer certificate to
the Trustee as required pursuant to the Agreement, (iv) each person holding or
acquiring an Ownership Interest in this [Class A-R] Certificate must agree not
to transfer an Ownership Interest in this [Class A-R] Certificate if it has
actual knowledge that the proposed transferee is not a Permitted Transferee and
(v) any attempted or purported transfer of any Ownership Interest in this [Class
A-R] Certificate in violation of such restrictions will be absolutely null and
void and will vest no rights in the purported transferee.

                                      C-3
<PAGE>

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

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

                                      C-4
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  October __, 2005

                                  THE BANK OF NEW YORK,
                                  not in its individual capacity, but solely
                                  as Trustee

                                  By: __________________________________________
                                      Authorized Signatory of
                                      THE BANK OF NEW YORK
                                      not in its individual capacity,
                                      but solely as Trustee

Countersigned:

By ___________________________
   Authorized Signatory of
   THE BANK OF NEW YORK,
   not in its individual capacity,
   but solely as Trustee

                                      C-5
<PAGE>

                                    EXHIBIT D

                        [Form of Reverse of Certificates]

          First Horizon Alternative Mortgage Securities Trust 2005-FA9
                       Mortgage Pass-Through Certificates

         This Certificate is one of a duly authorized issue of Certificates
designated as First Horizon Alternative Mortgage Securities Trust 2005-FA9
Mortgage Pass-Through Certificates, of the Series specified on the face hereof
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust Fund created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

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

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the "Distribution Date"), commencing on the
first Distribution Date specified on the face hereof, to the Person in whose
name this Certificate is registered at the close of business on the applicable
Record Date in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to
Holders of Certificates of the Class to which this Certificate belongs on such
Distribution Date pursuant to the Agreement. The Record Date applicable to each
Distribution Date is the last Business Day of the month next preceding the month
of such Distribution Date.

         Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five Business Days prior
to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the Corporate Trust Office or such other
location specified in the notice to Certificateholders of such final
distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee with the consent of the
Holders of Certificates affected by such amendment evidencing the requisite
Percentage Interest, as provided in the Agreement. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of any Certificate issued upon
the transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                                      D-1
<PAGE>

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

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

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

         The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee, nor any such agent shall be affected by any notice to the contrary.

         On any Distribution Date on which the Pool Principal Balance is less
than 10% of the Pool Principal Balance as of the Cut-off Date, the Master
Servicer will have the option to repurchase, in whole, from the Trust Fund all
remaining Mortgage Loans and all property acquired in respect of the Mortgage
Loans at a purchase price determined as provided in the Agreement. In the event
that no such optional termination occurs, the obligations and responsibilities
created by the Agreement will terminate upon the later of the maturity or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund or the disposition of all property in respect
thereof and the distribution to Certificateholders of all amounts required to be
distributed pursuant to the Agreement. In no event, however, will the trust
created by the Agreement continue beyond the expiration of 21 years from the
death of the last survivor of the descendants living at the date of the
Agreement of a certain person named in the Agreement.

         Any term used herein that is defined in the Agreement shall have the
         meaning assigned in the Agreement, and nothing herein shall be deemed
         inconsistent with that meaning.

<PAGE>

                                   ASSIGNMENT

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

                         ------------------------------
                        (Please insert social security or
                      other identifying number of assignee)

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

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

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

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

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

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

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

Dated:
      ---------------------

                                      --------------------------------------
                                      Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ______________________________________, for the
account of _____________________, account number ___________, or, if mailed by
check, to ___________________________. Applicable statements should be mailed to

_____________________________.

         This  information is provided by  ____________________________________,
the assignee named above, or _________________, as its agent.

                                      D-3
<PAGE>

                                    EXHIBIT E

                   FORM OF INITIAL CERTIFICATION OF CUSTODIAN

                                     [date]

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way
Irving, Texas  75063

The Bank of New York_______
101 Barclay Street, 8W_____
New York, New York  10286

            Re:   Custodial Agreement dated as of October 28, 2005 by and among
                  the Bank of New York, as Trustee, First Horizon Home Loan
                  Corporation, as Servicer and First Tennessee Bank National
                  Association, as Custodian

Gentlemen:

         In accordance with Section 2 of the above-captioned Custodial Agreement
(the "Custodial Agreement"), the undersigned, as Custodian, hereby certifies
that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than
any Mortgage Loan listed in the attached schedule), it has received:

         (i)  the original Mortgage Note, endorsed as provided in the following
form: "Pay to the order of ________, without recourse"; and

         (ii) a duly executed assignment, or a copy of such assignment certified
by the Seller as being a true and complete copy of the assignment, of the
Mortgage (which may be included in a blanket assignment or assignments);
provided, however, that it has received no assignment with respect to any
Mortgage for which the related Mortgaged Property is located in the Commonwealth
of Puerto Rico.

         Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

         The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Custodial Agreement. The Custodian makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                      E-1
<PAGE>

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Custodial Agreement.

                                  FIRST TENNESSEE BANK NATIONAL ASSOCIATION,
                                  as Custodian

                                  By:    _______________________________________
                                  Name:  _______________________________________
                                  Title: _______________________________________

                                      E-2
<PAGE>

                                    EXHIBIT F

                      FORM OF DELAY DELIVERY CERTIFICATION

                                     [date]

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way
Irving, Texas  75063

The Bank of New York_______
101 Barclay Street, 8W_____
New York, New York  10286

         Re:  Custodial Agreement dated as of October 28, 2005 by and among the
              Bank of New York, as Trustee, First Horizon Home Loan Corporation,
              as Servicer, and First Tennessee Bank National Association, as
              Custodian

Ladies and Gentlemen:

         In accordance with Section 3 of the above-captioned Custodial Agreement
(the "Custodial Agreement"), the undersigned, as Custodian, hereby certifies
that, as to each Delay Delivery Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Delay Delivery Mortgage Loan listed in the attached
schedule), it has received:

         (i)   the original Mortgage Note, endorsed as provided in the following
form: "Pay to the order of_______, without recourse";

         (ii) in the case of each Mortgage Loan, the original recorded Mortgage,
or a copy of such Mortgage certified by the Seller as being a true and complete
copy of the Mortgage, [and in the case of each Mortgage Loan that is a MERS
Mortgage Loan, the original Mortgage, or a copy of such Mortgage certified by
the Seller as being a true and complete copy of the Mortgage, noting thereon the
presence of the MIN of the Mortgage Loan and language indicating that the
Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of
recording indicated thereon]; and

         (iii) in the case of each Mortgage Loan, a duly executed assignment, or
a copy of such assignment certified by the Seller as a true and complete copy of
the assignment, of the Mortgage (which may be included in a blanket assignment
or assignments); provided, however, that it has received no assignment with
respect to any Mortgage for which the related Mortgage Property is located in
the Commonwealth of Puerto Rico.

         Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such Delay
Delivery Mortgage Loan.

                                      F-1
<PAGE>

         The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Custodial Agreement. The Custodian makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Delay Delivery Mortgage
Loans identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Delay Delivery Mortgage
Loan.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                  FIRST TENNESSEE BANK NATIONAL ASSOCIATION,
                                  as Custodian

                                  By:    _______________________________________
                                  Name:  _______________________________________
                                  Title: _______________________________________

                                      F-2
<PAGE>

                                    EXHIBIT G

                  FORM OF SUBSEQUENT CERTIFICATION OF CUSTODIAN

                                     [date]

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way
Irving, Texas  75063

The Bank of New York_______
101 Barclay Street, 8W_____
New York, New York  10286

         Re:   Custodial Agreement dated as of October 28, 2005 by and among the
               Bank of New York, as Trustee, First Horizon Home Loan
               Corporation, as Servicer, and First Tennessee Bank National
               Association, as Custodian

Ladies and Gentlemen:

         In accordance with Section 3 of the above-captioned Custodial Agreement
(the "Custodial Agreement"), the undersigned, as Custodian hereby certifies that
as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or listed on the attached exception report) it has
received, unless otherwise provided in Section 2 of the Custodial Agreement:

         (A)      The original Mortgage Note endorsed by manual or facsimile
                  signature in blank in the following form: "Pay to the order of
                  ____________without recourse," with all intervening
                  endorsements showing a complete chain of endorsements from the
                  originator to the Person endorsing the Mortgage Note (each
                  such endorsement being sufficient to transfer all right, title
                  and interest of the party so endorsing, as noteholder or
                  assignee thereof, in and to that Mortgage Note); or

                  (B) with respect to any Lost Mortgage Note, a lost note
                  affidavit from the Seller stating that the original Mortgage
                  Note was lost or destroyed, together with a copy of such
                  Mortgage Note;

         (ii)     except as provided in Section 2(c) of the Custodial Agreement
                  and for each Mortgage Loan that is not a MERS Mortgage Loan,
                  the original recorded Mortgage or a copy of such Mortgage
                  certified by the Seller as being a true and complete copy of
                  the Mortgage, and in the case of each MERS Mortgage Loan, the
                  original recorded Mortgage, noting the presence of the MIN of
                  the Mortgage Loans and either language indicating that the
                  Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan
                  or if the Mortgage Loan was not a MOM Loan at origination, the
                  original Mortgage and the assignment thereof to MERS, with
                  evidence of recording indicated thereon, or a copy of the
                  Mortgage certified by the Seller as being a true and complete
                  copy of the Mortgage;

                                      G-1
<PAGE>

         (iii)    in the case of each Mortgage Loan that is not a MERS Mortgage
                  Loan, a duly executed assignment of the Mortgage, or a copy of
                  such assignment certified by the Seller as being a true and
                  complete copy of the assignment, in blank (which may be
                  included in a blanket assignment or assignments), together
                  with, except as provided below, all interim recorded
                  assignments, or copies of such interim assignments certified
                  by the Seller as being true and complete copies of the interim
                  assignments, of such Mortgage (each such assignment, when duly
                  and validly completed, to be in recordable form and sufficient
                  to effect the assignment of and transfer to the assignee
                  thereof, under the Mortgage to which the assignment relates);
                  provided that, if the related Mortgage has not been returned
                  from the applicable public recording office, such assignment
                  of the Mortgage may exclude the information to be provided by
                  the recording office;

         (iv)     the original or copies of each assumption, modification,
                  written assurance or substitution agreement, if any;

         (v)      either the original or duplicate original title policy, or a
                  copy of such title policy certified by the Seller as being a
                  true and complete copy of the title policy (including all
                  riders thereto), with respect to the related Mortgaged
                  Property, if available, provided that the title policy
                  (including all riders thereto) will be delivered as soon as it
                  becomes available, and if the title policy is not available,
                  and to the extent required pursuant to the second paragraph
                  below or otherwise in connection with the rating of the
                  Certificates, a written commitment or interim binder or
                  preliminary report of the title issued by the title insurance
                  or escrow company with respect to the Mortgaged Property, or
                  in lieu thereof, an Alternative Title Product or a copy of
                  such Alternative Title Product certified by the Seller as
                  being a true and complete copy of the Alternative Title
                  Product; and

         (vi)     in the case of a Cooperative Loan, the originals of the
                  following documents or instruments:

                  (a) The Coop Shares, together with a stock power in blank;

                  (b)  The executed Security Agreement;

                  (c)  The executed Proprietary Lease;

                  (d)  The executed UCC-1 financing statement with evidence
                       of recording thereon which have been filed in all
                       places required to perfect the Seller's interest in
                       the Coop Shares and the Proprietary Lease; and

                  (e)  Executed UCC-3 financing statements or their
                       appropriate UCC financing statements required by
                       state law, evidencing a complete and unbroken line
                       from the mortgagee to the Trustee with evidence of
                       recording thereon (or in a form suitable for
                       recordation).

                                      G-2
<PAGE>

         Based on its review and examination and only as to the foregoing
documents, (a) such documents appear regular on their face and related to such
Mortgage Loan, and (b) the information set forth in items (i), (ii), (iii),
(iv), (vi) and (xi) of the definition of the "Mortgage Loan Schedule" in Article
I of the Pooling and Servicing Agreement accurately reflects information set
forth in the Mortgage File.

         The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Custodial Agreement. The Custodian makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Notwithstanding anything herein to the contrary, the Custodian has made no
determination and makes no representations as to whether (i) any endorsement is
sufficient to transfer all right, title, and interest of the party so endorsing,
as noteholder or assignee thereof, in and to that Mortgage Note or (ii) any
assignment is in recordable form or sufficient to effect the assignment of and
transfer to the assignee thereof, under the Mortgage to which the assignment
relates.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Custodial Agreement.

                                  FIRST TENNESSEE BANK NATIONAL ASSOCIATION,
                                  as Custodian

                                  By:    _______________________________________
                                  Name:  _______________________________________
                                  Title: _______________________________________

                                      G-3
<PAGE>

                                    EXHIBIT H

                               TRANSFER AFFIDAVIT

          First Horizon Alternative Mortgage Securities Trust 2005-FA9
                       Mortgage Pass-Through Certificates
                                 Series 2005-FA9

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of __________, the proposed Transferee
of an Ownership Interest in a [Class A-R] Certificate (the "Certificate") issued
pursuant to the Pooling and Servicing Agreement, (the "Agreement"), relating to
the above-referenced Series, by and among First Horizon Asset Securities Inc.,
as depositor (the "Depositor"), First Horizon Home Loan Corporation, as master
servicer, and The Bank of New York, as trustee. Capitalized terms used, but not
defined herein or in Exhibit 1 hereto, shall have the meanings ascribed to such
terms in the Agreement. The Transferee has authorized the undersigned to make
this affidavit on behalf of the Transferee.

         2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
may be imposed on Transfers of the Certificate to Persons that are not Permitted
Transferees; (ii) such tax will be imposed on the transferor, or, if such
Transfer is through an agent (which includes a broker, nominee or middleman) for
a Person that is not a Permitted Transferee, on the agent; and (iii) the Person
otherwise liable for the tax shall be relieved of liability for the tax if the
subsequent transferee furnished to such Person an affidavit that such subsequent
transferee is a Permitted Transferee and, at the time of Transfer, such Person
does not have actual knowledge that the affidavit is false.

         4. The Transferee has been advised of, and understands that a tax may
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common trust fund, a partnership, trust or estate,
and certain cooperatives and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.)

                                      H-1
<PAGE>

         5. The Transferee has reviewed the provisions of Section 5.2(c) of the
Agreement (attached hereto as Exhibit 2 and incorporated herein by reference)
and understands the legal consequences of the acquisition of an Ownership
Interest in the Certificate including, without limitation, the restrictions on
subsequent Transfers and the provisions regarding voiding the Transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide by
the provisions of Section 5.2(c) of the Agreement and the restrictions noted on
the face of the Certificate. The Transferee understands and agrees that any
breach of any of the representations included herein shall render the Transfer
to the Transferee contemplated hereby null and void.

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit I to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

         7. The Transferee does not have the intention to impede the assessment
or collection of any tax legally required to be paid with respect to the
Certificate.

         8. The Transferee's taxpayer identification number is ______.

         9. The Transferee is either a U.S. Person as defined in Code Section
7701(a)(30) or the Transferee has furnished the Transferor a properly completed
Internal Revenue Service Form W-8ECI..

         10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on such residual
interest, unless no significant purpose of the transfer was to impede the
assessment or collection of tax.

         11. The Transferee is not an employee benefit plan or arrangement
subject to Section 406 of ERISA or a plan or arrangement subject to Section 4975
of the Code, nor a person acting on behalf of any such plan or arrangement, nor
using the assets of any such plan or arrangement to effect such transfer.

         12. The Transferee has historically paid its debts as they came due and
the Transferee will continue to pay its debts as they come due in the future;
the Transferee understands that, as the holder of the Certificate, the
Transferee may incur tax liabilities in excess of any cash flows generated by
the Certificate and the Transferee intends to pay taxes associated with holding
the Certificate as they become due.

         13. The Transferee is a domestic corporation taxable as a regular
corporation for U.S. federal income tax purposes (a "taxable domestic C
corporation") and is not a real estate investment trust, regulated investment
company or REMIC. The Transferee will not cause income from the Certificate to
be attributable, for U.S. federal income tax purposes, to a non-U.S. permanent
establishment or fixed base (within the meaning of an applicable income tax
treaty) of the Transferee or another U.S. taxpayer. At the time of the Transfer,
and at the close of each of the Transferee's two fiscal years preceding the year
of the Transfer, the Transferee's gross assets for financial reporting purposes
exceeded $10 million (together, the "Asset Requirements"), and the Transferee
hereby covenants that any subsequent Transfer of its Ownership Interest in the
Certificate will be to another taxable, domestic C corporation satisfying the
Asset Requirements

                                      H-2
<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ___ day of _________, 20__.

                                  ______________________________________________
                                  Print Name of Transferee

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

         Personally appeared before me the above-named ________________, known
or proved to me to be the same person who executed the foregoing instrument and
to be the _________________ of the Transferee, and acknowledged that he executed
the same as his free act and deed and the free act and deed of the Transferee.

         Subscribed and sworn before me this _____ day of ___________, 20____.

                                  ______________________________________________
                                  NOTARY PUBLIC

                                  My Commission expires the ___ day of
                                  ________________, 20___.

                                      H-3
<PAGE>

                                                          EXHIBIT 1 to EXHIBIT H

                               Certain Definitions

         "Ownership Interest": As to any Certificate, any ownership interest in
such Certificate, including any interest in such Certificate as the Holder
thereof and any other interest therein, whether direct or indirect, legal or
beneficial.

         "Permitted Transferee": Any Person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(l) of the Code) with respect to
any Certificate, (iv) rural electric and telephone cooperatives described in
section 1381(a)(2)(C) of the Code, (v) an "electing large partnership" as
defined in section 775 of the Code, (vi) a Person that is not (a) a citizen or
resident of the United States, (b) a corporation, partnership, or other entity
created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, (c) an estate whose income from sources
without the United States is includible in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States or (d) a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have the authority to control
all substantial decisions of the trust, unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI or any applicable successor form, and (vii) any other Person so
designated by the Depositor based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Certificate to such Person may cause any REMIC
created pursuant to the Agreement to fail to qualify as a REMIC at any time that
the Certificates (as defined in the Agreement) are outstanding; provided,
however, that if a person is classified as a partnership or a disregarded entity
under the Code, such person shall only be a Permitted Transferee if all of its
beneficial owners are described in subclauses (a), (b), (c) or (d) of clause
(vi) and the governing documents of such person prohibits a transfer of any
interest in such person to any person described in clause (vi). The terms
"United States," "State" and "International Organization" shall have the
meanings set forth in section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or of
any State or political subdivision thereof for these purposes if all of its
activities are subject to tax and, with the exception of the Federal Home Loan
Mortgage Corporation, a majority of its board of directors is not selected by
such government unit.

         "Person": Any individual, corporation, partnership, joint venture,
association, bank, joint-stock company, trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political
subdivision thereof.

         "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.

                                      H-4
<PAGE>

         "Transferee":  Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

                                      H-5
<PAGE>

                                                          EXHIBIT 2 to EXHIBIT H

                         Section 5.2(c) of the Agreement

         (c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

                  (i) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall be a Permitted Transferee and shall
         promptly notify the Trustee of any change or impending change in its
         status as a Permitted Transferee.

                  (ii) No Ownership Interest in a Residual Certificate may be
         registered on the Closing Date or thereafter transferred, and the
         Trustee shall not register the Transfer of any Residual Certificate
         unless, in addition to the certificates required to be delivered to the
         Trustee under subparagraph (b) above, the Trustee shall have been
         furnished with an affidavit (a "Transfer Affidavit") of the initial
         owner or the proposed transferee in the form attached hereto as Exhibit
         H.

                  (iii) Each Person holding or acquiring any Ownership Interest
         in a Residual Certificate shall agree (A) to obtain a Transfer
         Affidavit from any other Person to whom such Person attempts to
         Transfer its Ownership Interest in a Residual Certificate, (B) to
         obtain a Transfer Affidavit from any Person for whom such Person is
         acting as nominee, trustee or agent in connection with any Transfer of
         a Residual Certificate and (C) not to Transfer its Ownership Interest
         in a Residual Certificate or to cause the Transfer of an Ownership
         Interest in a Residual Certificate to any other Person if it has actual
         knowledge that such Person is not a Permitted Transferee.

                  (iv) Any attempted or purported Transfer of any Ownership
         Interest in a Residual Certificate in violation of the provisions of
         this Section 5.2(c) shall be absolutely null and void and shall vest no
         rights in the purported Transferee. If any purported transferee shall
         become a Holder of a Residual Certificate in violation of the
         provisions of this Section 5.2(c), then the last preceding Permitted
         Transferee shall be restored to all rights as Holder thereof
         retroactive to the date of registration of Transfer of such Residual
         Certificate. The Trustee shall be under no liability to any Person for
         any registration of Transfer of a Residual Certificate that is in fact
         not permitted by Section 5.2(b) and this Section 5.2(c) or for making
         any payments due on such Certificate to the Holder thereof or taking
         any other action with respect to such Holder under the provisions of
         this Agreement so long as the Transfer was registered after receipt of
         the related Transfer Affidavit, Transferor Certificate, and in the case
         of a Residual Certificate which is also a Private Certificate, either
         the Rule 144A Letter or the Investment Letter. The Trustee shall be
         entitled but not obligated to recover from any Holder of a Residual
         Certificate that was in fact not a Permitted Transferee at the time it
         became a Holder or, at such subsequent time as it became other than a
         Permitted Transferee, all payments made on such Residual Certificate at
         and after either such time. Any such payments so recovered by the
         Trustee shall be paid and delivered by the Trustee to the last
         preceding Permitted Transferee of such Certificate.

                                      H-6
<PAGE>

                  (v) The Depositor shall use its best efforts to make
         available, upon receipt of written request from the Trustee, all
         information necessary to compute any tax imposed under Section 860E(e)
         of the Code as a result of a Transfer of an Ownership Interest in a
         Residual Certificate to any Holder who is not a Permitted Transferee.

         The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.2(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee or the Master
Servicer, to the effect that the elimination of such restrictions will not cause
any REMIC created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding or result in the imposition of any tax on the Trust
Fund, a Certificateholder or another Person. Each Person holding or acquiring
any Ownership Interest in a Residual Certificate hereby consents to any
amendment of this Agreement which, based on an Opinion of Counsel furnished to
the Trustee, is reasonably necessary (a) to ensure that the record ownership of,
or any beneficial interest in, a Residual Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Residual Certificate which is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

                                      H-7
<PAGE>

                                    EXHIBIT I

                         FORM OF TRANSFEROR CERTIFICATE

                                                         _______________, 20___

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way
Irving, Texas  75063

The Bank of New York_______
101 Barclay Street, 8W_____
New York, New York  10286

         Re:      First Horizon Alternative Mortgage Securities Trust 2005-FA9
                  Mortgage Pass-Through Certificates, Series 2005-FA9, Class

Ladies and Gentlemen:

         In connection with our disposition of the above Certificates we certify
that (a) to the extent we are disposing of a Private Certificate, we understand
that such Private Certificate has not been registered under the Securities Act
of 1933, as amended (the "Act"), and is being disposed of by us in a transaction
that is exempt from the registration requirements of the Act, (b) we have not
offered or sold any Certificates to, or solicited offers to buy any Certificates
from, any person, or otherwise approached or negotiated with any person with
respect thereto, in a manner that would be deemed, or taken any other action
which would result in, a violation of Section 5 of the Act, and (c) to the
extent we are disposing of a Residual Certificate, we have no knowledge the
transferee is not a Permitted Transferee.

         Capitalized terms used herein shall have the meaning ascribed to such
terms in the Pooling and Servicing Agreement dated as of October 1, 2005, by and
among First Horizon Asset Securities Inc., as depositor, First Horizon Home Loan
Corporation, as master servicer, and The Bank of New York, as trustee, pursuant
to which the Residual Certificates were issued.

                                        Very truly yours,

                                        ________________________________________
                                        Print Name of Transferor

                                        By:_____________________________________
                                           Authorized Officer

                                      I-1
<PAGE>

                                    EXHIBIT J

                    FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                                            _____________, 20___

First Horizon Asset Securities Inc.
4000 Horizon Way
Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286
Attention:  Mortgage-Backed Securities Group

         Re:    First Horizon Alternative Mortgage Securities Trust 2005-FA9
                Mortgage Pass-Through Certificates, Series 2005-FA9, Class ___

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) either (i) we are not an employee benefit plan or
arrangement that is subject to the Employee Retirement Income Security Act of
1974, as amended, or a plan or arrangement that is subject to Section 4975 of
the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of
any such plan or arrangement nor are we using the assets of any such plan or
arrangement to effect such acquisition or (ii) if, in the case of
ERISA-Restricted Certificates that have been the subject of an ERISA-Qualifying
Underwriting, we are an insurance company, a representation that we are an
insurance company which is purchasing such Certificates with funds contained in
an "insurance company general account" (as such term is defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the
purchase and holding of such Certificates are covered under Sections I and III
PTCE 95-60, (e) we are acquiring the Certificates for investment for our own
account and not with a view to any distribution of such Certificates (but
without prejudice to our right at all times to sell or otherwise dispose of the
Certificates in accordance with clause (g) below), (f) we have not offered or
sold any Certificates to, or solicited offers to buy any Certificates from, any
person, or otherwise approached or negotiated with any person with respect
thereto, or taken any other action which would result in a violation of Section
5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made

                                      J-1
<PAGE>

pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this Certificate that
such sale, transfer or other disposition may be made pursuant to an exemption
from the Act, (2) the purchaser or transferee of such Certificate has executed
and delivered to you a certificate to substantially the same effect as this
certificate, and (3) the purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling and Servicing Agreement.

                                  Very truly yours,

                                  ______________________________________________
                                  Print Name of Transferee

                                  By:___________________________________________
                                     Authorized Officer

                                      J-2
<PAGE>

                                    EXHIBIT K

                            FORM OF RULE 144A LETTER

                                                               ___________, 20__

First Horizon Asset Securities Inc.
4000 Horizon Way
Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286
Attention:  Mortgage-Backed Securities Group

         Re:    First Horizon Alternative Mortgage Securities Trust 2005-FA9
                Mortgage Pass-Through Certificates, Series 2005-FA9, Class ___

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan or
arrangement that is subject to the Employee Retirement Income Security Act of
1974, as amended, or a plan or arrangement that is subject to Section 4975 of
the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of
any such plan or arrangement nor using the assets of any such plan or
arrangement to effect such acquisition, (e) if an insurance company, in the case
of ERISA-restricted Certificates that have been the subject of an
ERISA-Qualifying Underwriting, we are purchasing the Certificates with funds
contained in an "insurance company general account" (as defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and our purchase
and holding of the Certificates are covered under Sections I and III of PTCE
95-60, (f) we have not, nor has anyone acting on our behalf offered,
transferred, pledged, sold or otherwise disposed of the Certificates, any
interest in the Certificates or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with respect to the Certificates,
any interest in the Certificates or any other similar security with, any person
in any manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the Act or that would render the

                                      K-1
<PAGE>

disposition of the Certificates a violation of Section 5 of the Act or require
registration pursuant thereto, nor will act, nor has authorized or will
authorize any person to act, in such manner with respect to the Certificates,
(g) we are a "qualified institutional buyer" as that term is defined in Rule
144A under the Act ("Rule 144A") and have completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2, (h) we are
aware that the sale to us is being made in reliance on Rule 144A, and (i) we are
acquiring the Certificates for our own account or for resale pursuant to Rule
144A and further, understand that such Certificates may be resold, pledged or
transferred only (A) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, or (B) pursuant to another
exemption from registration under the Act.

                                         Very truly yours,

                                         _______________________________________
                                         Print Name of Transferee

                                         By:____________________________________
                                            Authorized Officer

                                      K-2
<PAGE>

                                                            ANNEX 1 TO EXHIBIT K

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $ ______(1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A and (ii)
the Buyer satisfies the criteria in the category marked below.

            ___  Corporation, etc. The Buyer is a corporation (other than a
         bank, savings and loan association or similar institution),
         Massachusetts or similar business trust, partnership, or charitable
         organization described in Section 501(c)(3) of the Internal Revenue
         Code of 1986, as amended.

            ___  Bank. The Buyer (a) is a national bank or banking institution
         organized under the laws of any State, territory or the District of
         Columbia, the business of which is substantially confined to banking
         and is supervised by the State or territorial banking commission or
         similar official or is a foreign bank or equivalent institution, and
         (b) has an audited net worth of at least $25,000,000 as demonstrated
         in its latest annual financial statements, a copy of which is attached
         hereto.

            ___  Savings and Loan. The Buyer (a) is a savings and loan
         association, building and loan association, cooperative bank, homestead
         association or similar institution, which is supervised and examined by
         a State or Federal authority having supervision over any such
         institutions or is a foreign savings and loan association or equivalent
         institution and (b) has an audited net worth of at least $25,000,000 as
         demonstrated in its latest annual financial statements, a copy of which
         is attached hereto.

            ___  Broker-dealer. The Buyer is a dealer registered pursuant to
         Section 15 of the Securities Exchange Act of 1934.

            ___  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 a State, territory or the District of
         Columbia.

                            ------------------------
(1) 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.

                                      K-3
<PAGE>

            ___  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.

            ___  Investment Advisor. The Buyer is an investment advisor
         registered under the Investment Advisors Act of 1940.

            ___  Small Business Investment Company. Buyer is a small business
         investment company licensed by the U.S. Small Business Administration
         under Section 301(c) or (d) of the Small Business Investment Act of
         1958.

            ___  Business Development Company. Buyer is a business development
         company as defined in Section 202(a)(22) of the Investment Advisors
         Act of 1940.

         3. The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.

         4. For purposes of determining the aggregate amount of securities owned
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.

                                      K-4
<PAGE>

         6. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                      __________________________________________
                                      Print Name of Transferee

                                      By:_______________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

                                      Date:_____________________________________

                                      K-5
<PAGE>

                                                            ANNEX 2 TO EXHIBIT K

            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 SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

                  ___ The Buyer owned $ in securities (other than the excluded
         securities referred to below) as of the end of the Buyer's most recent
         fiscal year (such amount being calculated in accordance with Rule
         144A).

                  ___ The Buyer is part of a Family of Investment Companies
         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.

                                      K-6
<PAGE>

         5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

         6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                      __________________________________________
                                      Print Name of Transferee

                                      By:_______________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

                                      IF AN ADVISER:

                                      __________________________________________
                                      Print Name of Buyer

                                      Date:_____________________________________

                                      K-7
<PAGE>

                                    EXHIBIT L

                               REQUEST FOR RELEASE

                     [Substitution of Deleted Mortgage Loans
                                       or
                          Mortgage Loans Paid in Full]

            ____________________________________ Mortgage Loan Files

_____________________ hereby certifies that he/she is an officer of
_____________________, holding the office set forth beneath his/her signature,
and hereby further certifies as follows:

(Check One)

?        With respect to the mortgage loans described in the attached schedule,
         each such mortgage loan constitutes a "Substitute Mortgage Loan" (as
         the term is defined in the Pooling and Servicing Agreement).

?        With respect to the "Mortgage Loans" (as the term is defined in the
         custodial agreement) described in the attached schedule:

         All payments of principal, premium (if any), and interest have been
made with respect to the following:

         Loan Number:_______________________________________

         Borrower's Name: ______________________________

         County: ______________________________________

         We hereby certify that all amounts to be received in connection with
such payments have been received.

________________________________

Dated: ______________________

/ / Vice President

/ / Assistant Vice President

                                      L-1
<PAGE>

                                    EXHIBIT M

                         REQUEST FOR RELEASE AND RECEIPT
                         [For Servicing and Foreclosure]

            _____________________________________ Mortgage Loan Files

LOAN INFORMATION

         Name of Mortgagor:     __________________________________

         Loan No.:              __________________________________

         The undersigned hereby acknowledges that it has received from FIRST
TENNESSEE BANK NATIONAL ASSOCIATION, as Custodian for ____________________
Mortgage Loan Files, the documents referred to below (the "Documents"). All
capitalized terms not otherwise defined in this Request for Release and Receipt
shall have the meanings ascribed to them in the Custodial Agreement dated as of
__________________ among ___________________ and FIRST TENNESSEE BANK NATIONAL
ASSOCIATION, as Custodian (the "Custodial Agreement").

                             [complete as necessary]

         The undersigned hereby acknowledges an agrees as follows:

         (1) The undersigned shall hold and retain possession of the Documents
in trust for the benefit of __________________, solely for the purposes provided
in the Custodial Agreement.

         (2) The undersigned shall not cause or permit the Documents to become
subject to, or encumbered by, any claim, liens, security interest, charges,
writs of attachment or other impositions nor shall the undersigned assert or
seek to assert any claims or rights of setoff to or against the Documents or any
proceeds thereof.

         (3) The undersigned shall return each and every Document previously
requested from the Mortgage File to the Custodian when the need therefor no
longer exists, unless the Mortgage Loan relating to the Documents has been
liquidated.

Date:    _____________________

                                      NAME

                                      By:    ___________________________________
                                      Name:  ___________________________________
                                      Title: ___________________________________

                                      M-1
<PAGE>

                                    EXHIBIT N

                           Principal Balance Schedules

                                      N-1

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