Document:

EX-10.1

 

EXHIBIT 10.1

 

U.S. $1,200,000,000

FIRST AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of October 19, 2007

among

THE PEPSI BOTTLING GROUP, INC.

BOTTLING GROUP, LLC

THE LENDERS NAMED HEREIN

THE ISSUING LENDERS NAMED HEREIN

CITIBANK, N.A.,

as Agent,

CITIGROUP GLOBAL MARKETS INC. and

HSBC SECURITIES (USA) INC.

as Joint Lead Arrangers and Book Managers

HSBC BANK USA, N.A.,

as Syndication Agent

and

BANK OF AMERICA, N.A.,

DEUTSCHE BANK SECURITIES, INC. and

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

as Co-Documentation Agents

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS AND ACCOUNTING
	 	 	1	 
	SECTION 1.01. Certain Defined Terms
	 	 	1	 
	SECTION 1.02. Computation of Time Periods
	 	 	11	 
	SECTION 1.03. Accounting Terms
	 	 	11	 
	SECTION 1.04. Effect of Amendment and Restatement
	 	 	12	 
	SECTION 1.05. Existing Advances, Letters of Credit
	 	 	12	 
	ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES
	 	 	12	 
	SECTION 2.01. The Revolving Credit Advances
	 	 	12	 
	SECTION 2.02. Making the Revolving Credit Advances
	 	 	12	 
	SECTION 2.03. The Competitive Bid Advances
	 	 	14	 
	SECTION 2.04. Issuance of Letters of Credit
	 	 	16	 
	SECTION 2.05. L/C Payments
	 	 	18	 
	SECTION 2.06. Fees
	 	 	20	 
	SECTION 2.07. Termination, Reduction or Increase of the Commitments
	 	 	21	 
	SECTION 2.08. Repayment of Revolving Credit Advances; Evidence of Indebtedness; Extension of Termination Date
	 	 	23	 
	SECTION 2.09. Interest on Revolving Credit Advances and Letters of Credit Advances
	 	 	24	 
	SECTION 2.10. Interest Rate Determination
	 	 	24	 
	SECTION 2.11. Optional Conversion of Revolving Credit Advances
	 	 	25	 
	SECTION 2.12. Optional Prepayments of Revolving Credit Advances
	 	 	26	 
	SECTION 2.13. Increased Costs
	 	 	26	 
	SECTION 2.14. Illegality
	 	 	26	 
	SECTION 2.15. Payments and Computations
	 	 	27	 
	SECTION 2.16. Taxes
	 	 	28	 
	SECTION 2.17. Sharing of Payments, Etc
	 	 	30	 
	SECTION 2.18. Use of Proceeds
	 	 	30	 
	SECTION 2.19. Borrowings by Borrowing Subsidiaries; Substitution of Borrower
	 	 	30	 
	SECTION 2.20. Mitigation Obligations
	 	 	31	 
	ARTICLE III CONDITIONS TO EFFECTIVENESS AND ARTICLE II
	 	 	31	 
	SECTION 3.01. Conditions Precedent to Effective Date
	 	 	31	 
	SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing and Letter of Credit Issuance
	 	 	33	 
	SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing
	 	 	33	 
	SECTION 3.04. Determinations Under Section 3.01
	 	 	34	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES
	 	 	34	 
	SECTION 4.01. Representations and Warranties of the Loan Parties
	 	 	34	 
	ARTICLE V COVENANTS
	 	 	35	 
	SECTION 5.01. Affirmative Covenants
	 	 	35	 
	SECTION 5.02. Negative Covenants
	 	 	36	 
	SECTION 5.03. Financial Covenants
	 	 	38	 
	ARTICLE VI EVENTS OF DEFAULT
	 	 	38	 
	SECTION 6.01. Events of Default
	 	 	38	 
	ARTICLE VII THE AGENT
	 	 	40	 
	SECTION 7.01. Authorization and Action
	 	 	40	 
	SECTION 7.02. Agent’s Reliance, Etc
	 	 	40	 
	SECTION 7.03. Citibank and Affiliates
	 	 	40	 
	SECTION 7.04. Lender Credit Decision
	 	 	40	 
	SECTION 7.05. Indemnification
	 	 	41	 
	SECTION 7.06. Successor Agent
	 	 	41	 
	SECTION
7.07. Arrangers, Etc.
	 	 	41	 
	ARTICLE VIII MISCELLANEOUS
	 	 	41	 

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	SECTION 8.01. Amendments, Etc.
	 	 	41	 
	SECTION 8.02. Notices, Etc.
	 	 	42	 
	SECTION 8.03. No Waiver; Remedies
	 	 	43	 
	SECTION 8.04. Costs and Expenses
	 	 	43	 
	SECTION 8.05. Right of Set-off
	 	 	44	 
	SECTION 8.06. Binding Effect
	 	 	45	 
	SECTION 8.07. Assignments and Participations
	 	 	45	 
	SECTION 8.08. Confidentiality
	 	 	47	 
	SECTION 8.09. Governing Law
	 	 	47	 
	SECTION 8.10. Execution in Counterparts
	 	 	48	 
	SECTION 8.11. Jurisdiction, Etc.
	 	 	48	 
	SECTION 8.12. WAIVER OF JURY TRIAL
	 	 	48	 
	SECTION 8.13. USA PATRIOT Act
	 	 	48	 
	SECTION 8.14. Waiver of Notice of Termination under Existing 2004 Credit Agreement
	 	 	48	 
	ARTICLE IX COMPANY GUARANTEE
	 	 	49	 
	SECTION 9.01. Company Guarantee
	 	 	49	 
	ARTICLE X SUBSIDIARY GUARANTEE
	 	 	50	 
	SECTION 10.01. Subsidiary Guarantee
	 	 	50	 
	SECTION 10.02. Limitation of Guarantor’s Liability
	 	 	51	 

	 	 	 
	SCHEDULE 1

	 	- Commitments
	SCHEDULE 2

	 	- Pricing Schedule
	 
	 	 
	EXHIBIT A-1

	 	- Form of Notice of Revolving Credit Borrowing
	EXHIBIT A-2

	 	- Form of Notice of Competitive Bid Borrowing
	EXHIBIT A-3

	 	- Form of Extension Agreement
	EXHIBIT B

	 	- Form of Assignment and Acceptance
	EXHIBIT C-1

	 	- Form of Opinion of Special New York Counsel to the Company and the Guarantor
	EXHIBIT C-2

	 	- Form of Opinion of Assistant General Counsel of the Company and the Guarantor
	EXHIBIT C-3

	 	- Form of Opinion of Special New York Counsel for the Agent
	EXHIBIT D

	 	- Form of Designation Letter
	EXHIBIT E

	 	- Form of Substitution Letter
	EXHIBIT F

	 	- Form of Termination Letter

 -ii-

 

 

FIRST AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of October 19, 2007

          THE PEPSI BOTTLING GROUP, INC., a Delaware corporation (the “Company”), BOTTLING
GROUP, LLC, a Delaware limited liability company (the “Guarantor”), the banks, financial
institutions and other institutional lenders (the “Initial Lenders”) listed on the
signature pages hereof, and CITIBANK, N.A. (“Citibank”), as administrative agent (in such
capacity, the “Agent”) for the Lenders (as hereinafter defined), agree as follows:

          The Company, the Guarantor, the financial institutions party thereto and the Agent are parties
to a $450,000,000 5-Year Credit Agreement dated as of March 22, 2006 (as amended, supplemented and
modified and in effect on the Effective Date (as hereinafter defined), the “Existing Credit
Agreement”). The Borrowers and certain of the lenders party to the Existing Credit Agreement
desire to amend the Existing Credit Agreement in certain respects and to restate in its entirety
the Existing Credit Agreement, as so amended (this “Agreement”), and, accordingly, the
parties hereto hereby agree to amend the Existing Credit Agreement and restate the Existing Credit
Agreement, as so amended, in its entirety, effective as of the Effective Date, and otherwise agree
as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING

     SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):

          “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Agent.

          “Advance” means a Revolving Credit Advance or a Competitive Bid Advance.

          “Affiliate” means, as to any Person, any other Person that, directly or indirectly,
controls, is controlled by or is under common control with such Person or is a director or officer
of such Person. For purposes of this definition, the term “control” (including the terms
“controlling”, “controlled by” and “under common control with”) of a Person means the possession,
direct or indirect, of the power to vote 5% or more of the Voting Stock of such Person or to direct
or cause the direction of the management and policies of such Person, whether through the ownership
of Voting Stock, by contract or otherwise.

          “Agent” has the meaning specified in the recitals hereto.

          “Agent’s Account “ means the account of the Agent most recently designated by it by
notice to the Borrowers and the Lenders.

          “Aggregate L/C Exposure” means, at any time, the sum of (i) the aggregate Available
Amount of all outstanding Letters of Credit plus (ii) the aggregate unreimbursed amount of
all L/C Payments.

          “Agreement” has the meaning specified in the recitals hereto.

          “Alternate Covenant Date” means any day on which the Index Debt of Pepsi shall be
rated less than A- by S&P or less than A3 by Moody’s.

          “Applicable Facility Fee Rate” means, for any Rating Level Period, the rate per annum
set forth in Schedule 2 opposite the reference to such Rating Level Period under the heading
“Applicable

 

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Facility Fee Rate”. Each change in the Applicable Facility Fee Rate resulting from a Rating
Level Change shall be effective on the date of such Rating Level Change.

          “Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic
Lending Office in the case of the Base Rate Advance and such Lender’s Eurodollar Lending Office in
the case of a Eurodollar Rate Advance and, in the case of a Competitive Bid Advance, the office of
such Lender notified by such Lender to the Agent as its Applicable Lending Office with respect to
such Competitive Bid Advance.

          “Applicable Margin” means, with respect to any Eurodollar Rate Advance, for any Rating
Level Period, the rate per annum set forth in Schedule 2 opposite the reference to such Rating
Level Period under the heading “Applicable Margin”. Each change in the Applicable Margin resulting
from a Rating Level Change shall be effective on the date of such Rating Level Change.

          “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments.

          “Applicable Utilization Fee Rate” means, for any Rating Level Period, the rate per
annum set forth in Schedule 2 opposite the reference to such Rating Level Period under the heading
“Applicable Utilization Fee Rate”. Each change in the Applicable Utilization Fee Rate resulting
from a Rating Level Change shall be effective on the date of such Rating Level Change.

          “Available Amount” means, at any time, with respect to any Letter of Credit, the
maximum amount available to be drawn under such Letter of Credit at such time (assuming compliance
at such time with all conditions to drawing).

          “Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an Eligible Assignee, and accepted by the Agent and each Issuing Lender, in
substantially the form of Exhibit B hereto or any other form approved by the Agent and the Company.

          “Base Rate” means a fluctuating interest rate per annum in effect from time to time,
which rate per annum shall at all times be equal to the higher of:

          (a) the rate of interest announced publicly by Citibank in New York, New York, from time to
time, as Citibank’s base rate; and

          (b) 1/2 of one percent per annum above the Federal Funds Rate.

          “Base Rate Advance” means a Revolving Credit Advance that bears interest as provided
in Section 2.09(a).

          “Borrowers” means, at any time, collectively, the Company unless the Substitution Date
has occurred pursuant to Section 2.19, each Borrowing Subsidiary and, on and after the Substitution
Date has occurred pursuant to Section 2.19, the Guarantor.

          “Borrowing” means a Revolving Credit Borrowing or a Competitive Bid Borrowing.

          “Borrowing Subsidiary” means any Subsidiary of the Company as to which a Designation
Letter has been delivered to the Agent and as to which a Termination Letter has not been delivered
to the Agent in accordance with Section 2.19.

 

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          “Business Day” means a day of the year on which banks are not required or authorized
by law to close in New York City and, if the applicable Business Day relates to any Eurodollar Rate
Advances, on which dealings are carried on in the London interbank market.

          “Change of Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934, as amended, and the rules of the Securities and Exchange Commission thereunder as in
effect on the date hereof) other than Pepsi, of shares representing more than 25% of the aggregate
ordinary voting power represented by the issued and outstanding capital stock of the Company; or
(b) occupation of a majority of the seats (other than vacant seats) on the board of directors of
the Company by Persons who were neither (i) nominated by the board of directors of the Company nor
(ii) appointed by directors so nominated.

          “Citibank” has the meaning specified in the recitals hereto.

          “Commitment” has the meaning specified in Section 2.01.

          “Company” has the meaning specified in the recitals hereto.

          “Competitive Bid Advance” means an advance by a Lender to a Borrower as part of a
Competitive Bid Borrowing resulting from the auction bidding procedure described in Section 2.03
and refers to a Fixed Rate Advance or a LIBO Rate Advance.

          “Competitive Bid Borrowing” means a borrowing consisting of simultaneous Competitive
Bid Advances from each of the Lenders whose offer to make one or more Competitive Bid Advances as
part of such borrowing has been accepted under the auction bidding procedure described in Section
2.03.

          “Competitive Bid Reduction” has the meaning specified in Section 2.01.

          “Confidential Information” means information that the Company furnishes to the Agent
or any Lender in a writing designated as confidential, but does not include any such information
that is or becomes generally available to the public or that is or becomes rightfully available to
the Agent or such Lender from a source other than the Company.

          “Consolidated” refers to the consolidation of accounts in accordance with GAAP. The
Company shall cause the Guarantor at all times to remain a Consolidated Subsidiary.

          “Consolidated EBITDA” means, for any period, Consolidated Net Income for such period
plus, without duplication and to the extent reflected as a charge in the statement of such
Consolidated Net Income for such period, the sum of (a) income tax expense, (b) interest expense,
amortization or writeoff of debt discount with respect to Debt (including the Advances), (c)
depreciation and amortization expense, (d) amortization of intangibles (including, but not limited
to, goodwill) and organization costs, (e) any extraordinary expenses or losses (including, whether
or not otherwise includable as a separate item in the statement of such Consolidated Net Income for
such period, losses on sales of assets outside of the ordinary course of business), and (f) any
other non-cash charges, and minus, to the extent included in the statement of such
Consolidated Net Income for such period, the sum of (a) any extraordinary income or gains
(including, whether or not otherwise includable as a separate item in the statement of such
Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary
course of business) and (b) any other non-cash income, all as determined on a Consolidated basis;
in each case exclusive of the cumulative effect of foreign currency gains or losses. For the
purposes of calculating Consolidated EBITDA for any period pursuant to any determination of the
Consolidated Leverage Ratio, if during such period the Company or any Subsidiary, including the

 

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Guarantor, shall have made an acquisition, Consolidated EBITDA for such period shall be calculated
after giving pro forma effect thereto as if such acquisition occurred on the first
day of such period.

          “Consolidated Leverage Ratio” means, as at the last day of any Fiscal Quarter, the
ratio of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA for the four
consecutive Fiscal Quarters then ended (taken as one accounting period).

          “Consolidated Net Income” means, for any period, the consolidated net income (or loss)
of the Company, its Restricted Subsidiaries and the Guarantor, determined on a consolidated basis
in accordance with GAAP, before deduction of any minority interests in the Guarantor and excluding
the cumulative effect of any foreign currency gains or losses.

          “Consolidated Net Tangible Assets” means the total assets of the Company, its
Restricted Subsidiaries and the Guarantor (less applicable depreciation, amortization, and other
valuation reserves), except to the extent resulting from write-ups of capital assets (other than
writeups in connection with accounting for acquisitions, in accordance with GAAP), less all current
liabilities (excluding intercompany liabilities) and all intangible assets of the Company, its
Restricted Subsidiaries and the Guarantor, all as set forth on the then most recent Consolidated
balance sheet of the Company, its Restricted Subsidiaries and the Guarantor, prepared in accordance
with GAAP, but before deduction of any minority interests in the Guarantor and exclusive of any
foreign currency translation adjustments.

          “Consolidated Net Worth” means, as of any date of determination, all items which in
conformity with GAAP would be included under shareholders’ equity on a Consolidated balance sheet
of the Company and its Subsidiaries, including the Guarantor, at such date plus amounts
representing mandatorily redeemable preferred securities issued by Subsidiaries of the Company,
including the Guarantor, but before deduction of any minority interests in the Guarantor and
exclusive of any foreign currency translation adjustments.

          “Consolidated Total Debt” means, at any date (i) the aggregate principal amount of all
Debt of the Company and its Subsidiaries, including the Guarantor minus (ii) the aggregate amount
(not in excess of $500,000,000) of all cash and cash equivalents of the Company and its
Subsidiaries, in each case at such date and determined on a Consolidated basis in accordance with
GAAP.

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

          “Convert”, “Conversion” and “Converted” each refers to a conversion of
Revolving Credit Advances of one Type into Revolving Credit Advances of the other Type pursuant to
Section 2.10 or 2.11.

          “Debt” of any Person means, without duplication, (a) all indebtedness of such Person
for borrowed money, (b) all obligations of such Person for the deferred purchase price of property
or services (other than trade accounts payable arising in the ordinary course of business), (c) all
obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d)
all obligations (other than trade accounts payable arising in the ordinary course of business) of
such Person created or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession or sale of such
property), (e) all obligations of such Person as lessee under leases that have been or should be,
in accordance with GAAP, recorded as capital leases, (f) all Debt of others referred to in clauses
(a) through (e) above or clause (g) below guaranteed directly or indirectly in any manner by such
Person, or in effect guaranteed directly or indirectly by such Person through (i) an agreement (1)
to pay or purchase such Debt or to advance or supply funds for the payment or purchase of such
Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell
services,

 

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primarily for the purpose of enabling the debtor to make payment of such Debt or to assure the
holder of such Debt against loss, (3) to supply funds to or in any other manner invest in the
debtor (including any agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or (4) otherwise to assure a creditor against
loss, or (ii) a standby letter of credit and (g) all Debt referred to in clauses (a) through (f)
above secured by (or for which the holder of such Debt has an existing right, contingent or
otherwise, to be secured by) any Lien on property (including, without limitation, accounts and
contract rights) owned by such Person, even though such Person has not assumed or become liable for
the payment of such Debt.

          “Debt to Capitalization Ratio” means at any time the ratio of (x) Consolidated Total
Debt to (y) the sum of (i) Consolidated Total Debt plus (ii) Consolidated Net Worth.

          “Declining Lender” has the meaning specified in Section 2.08(c).

          “Default” means any Event of Default or any event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both.

          “Designation Letter” has the meaning specified in Section 2.19(a).

          “Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” in its Administrative Questionnaire, or such other
office of such Lender as such Lender may from time to time specify to the Company and the Agent.

          “Effective Date” means the date on which the conditions in Section 3.01 are satisfied
(or waived in accordance with Section 8.01).

          “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; (iii) a
commercial bank organized under the laws of the United States, or any State thereof, and having
total assets in excess of $15,000,000,000 and a combined capital and surplus of at least
$1,000,000,000; (iv) a savings and loan association or savings bank organized under the laws of the
United States, or any State thereof, and having total assets in excess of $15,000,000,000 and a
combined capital and surplus of at least $1,000,000,000; (v) a commercial bank organized under the
laws of any other country that is a member of the Organization for Economic Cooperation and
Development or has concluded special lending arrangements with the International Monetary Fund
associated with its General Arrangements to Borrow or of the Cayman Islands, or a political
subdivision of any such country, and having total assets in excess of $l5,000,000,000 and a
combined capital and surplus of at least $1,000,000,000 so long as such bank is acting through a
branch or agency located in the United States or in the country in which it is organized or another
country that is described in this clause (v); (vi) the central bank of any country that is a member
of the Organization for Economic Cooperation and Development; provided, however,
that each Person described in clauses (ii) through (vi) shall have a short term public debt rating
of not less than A by S&P or Moody’s or shall be approved by the Company; and (vii) any other
Person approved by the Company, such approval not to be unreasonably withheld or delayed;
provided, however, that neither the Company nor an Affiliate of the Company shall
qualify as an Eligible Assignee.

          “Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, judgment, decree or judicial or agency interpretation,
policy or guidance relating to the environment, health, safety or Hazardous Materials.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued thereunder.

          “Eurodollar Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Eurodollar Lending Office” in its Administrative Questionnaire (or, if no
such

 

-6-

office is specified, its Domestic Lending Office), or such other office of such Lender as such
Lender may from time to time specify to the Company and the Agent.

          “Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate Advance
comprising part of the same Revolving Credit Borrowing, an interest rate per annum appearing on
Page 3750 of the Telerate Service (or on any successor or substitute page of such Service, or any
successor to or substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the Agent from time to time for
purposes of providing quotations of interest rates applicable to Dollar deposits in the London
interbank market) as of 11:00 A.M. (London time) on the date two Business Days prior to the first
day of such Interest Period as the rate for Dollar deposits having a term comparable to such
Interest Period, or in the event such offered rate is not available from said Page 3750, the
average (rounded to the nearer whole multiple of 1/16 of 1% per annum, if such average is not such
a multiple) of the rate per annum at which deposits in U.S. dollars are offered by the principal
office of each of the Reference Banks in London, England to prime banks in the London interbank
market at 11:00 A.M. (London time) two Business Days before the first day of such Interest Period
in an amount substantially equal to such Reference Bank’s Eurodollar Rate Advance comprising part
of such Revolving Credit Borrowing to be outstanding during such Interest Period and for a period
equal to such Interest Period. If the Eurodollar Rate does not appear on said Page 3750 (or any
successor page), the Eurodollar Rate for any Interest Period for each Eurodollar Rate Advance
comprising part of the same Revolving Credit Borrowing shall be determined by the Agent on the
basis of applicable rates furnished to and received by the Agent from the Reference Banks two
Business Days before the first day of such Interest Period, subject, however, to
the provisions of Section 2.10.

          “Eurodollar Rate Advance” means a Revolving Credit Advance that bears interest as
provided in Section 2.09(b).

          “Events of Default” has the meaning specified in Section 6.01.

          “Extending Lender” has the meaning specified in Section 2.08(c).

          “Extension Agreement” means an Extension Agreement substantially in the form contained
in Exhibit A-3 hereto.

          “Existing 2004 Credit Agreement” has the meaning specified in Section 3.01(g)(vii).

          “Existing Advances” means the Advances (as defined in the Existing Credit Agreement)
made under the Existing Credit Agreement and outstanding as of the Effective Date.

          “Existing Credit Agreement” has the meaning specified in the recitals hereto.

          “Existing Letters of Credit” has the meaning assigned to such term in Section 1.05.

          “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for such day on such transactions received by the Agent
from three Federal funds brokers of recognized standing selected by it.

          “Fiscal Quarter” means a period of 13 or (or 14) weeks treated by the Company as a
fiscal quarter.

 

-7-

          “Fiscal Year” means the period of 52 (or 53) weeks ending on the last Saturday of any
calendar year and treated by the Company as its fiscal year.

          “Fixed Rate Advances” has the meaning specified in Section 2.03(b).

          “GAAP” means generally accepted accounting principles as in effect from time to time,
applied on a basis consistent (except for changes concurred in by the Company’s independent public
accountants) with the most recent audited Consolidated financial statements of the Company and its
Subsidiaries delivered to the Lenders.

          “Granting Lender” has the meaning specified in Section 8.07(e).

          “Guaranteed Party” has the meaning specified in Section 9.01.

          “Guarantor” has the meaning specified in the recitals hereto.

          “Hazardous Materials” means petroleum and petroleum products, byproducts or breakdown
products, radioactive materials, asbestos-containing materials, radon gas and any other chemicals,
materials or substances designated, classified or regulated as being “hazardous” or “toxic”, or
words of similar import, under any federal, state, local or foreign statute, law, ordinance, rule,
regulation, code, order, judgment, decree or judicial or agency interpretation, policy or guidance.

          “Index Debt” of any Person means senior, unsecured, long-term indebtedness for
borrowed money of such Person that is not guaranteed by any other Person (other than, in the case
of the Company, the Guarantor) or subject to any other credit enhancement.

          “Information Memorandum” means the information memorandum dated October 1, 2007 used
by the Agent in connection with the syndication of the Commitments.

          “Initial Issuing Lenders” means, collectively, HSBC Bank USA, N.A. and Citibank, N.A.

          “Initial Lenders” has the meaning specified in the recitals hereto.

          “Interest Period” means, for each Eurodollar Rate Advance comprising part of the same
Revolving Credit Borrowing, the period commencing on the date of such Eurodollar Rate Advance or
the date of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending on
the last day of the period selected by the Company pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the immediately preceding Interest
Period and ending on the last day of the period selected by the Company pursuant to the provisions
below. The duration of each such Interest Period shall be one, two, three, six or, to the extent
available from all the Lenders, nine or twelve months, as the Company may, upon notice received by
the Agent not later than 11:00 A.M. (New York City time) on the third Business Day prior to the
first day of such Interest Period, select; provided, however, that:

     (1) the Company may not select any Interest Period that ends after the Termination
Date;

     (2) Interest Periods commencing on the same date for Eurodollar Rate Advances
comprising part of the same Revolving Credit Borrowing shall be of the same duration;

     (3) whenever the last day of any Interest Period would otherwise occur on a day other
than a Business Day, the last day of such Interest Period shall be extended to occur on the
next succeeding Business Day, provided, however, that, if such extension
would cause the last day of such Interest Period to occur in the next following calendar
month, the last day of such Interest Period shall occur on the next preceding Business Day;
and

 

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     (4) whenever the first day of any Interest Period occurs on a day of an initial
calendar month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the number of
months in such Interest Period, such Interest Period shall end on the last Business Day of
such succeeding calendar month.

          “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated and rulings issued thereunder.

          “Issuing Lender” means, collectively, the Initial Issuing Lenders and any other Lender
appointed by the Company with the consent of such Lender and the Agent (such consent of the Agent
not to be unreasonably withheld).

          “L/C Payment” means a payment by an Issuing Lender of a draft drawn under any Letter
of Credit.

          “L/C Reimbursement Obligation” means the obligation of a Borrower to reimburse an
Issuing Lender for an L/C Payment pursuant to Section 2.05.

          “L/C Related Documents” has the meaning specified in Section 2.04(c)(i).

          “Lenders” means the Initial Lenders and each Person that shall become a party hereto
pursuant to Sections 2.07(c) or 8.07.

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement and
shall include the Existing Letters of Credit.

          “Letter of Credit Commission Rate” means a rate per annum equal to the Applicable
Margin.

          “Letter of Credit Facility Amount” means $400,000,000.

          “LIBO Rate Advances” has the meaning specified in Section 2.03(b).

          “Lien” means any lien, security interest or other charge or encumbrance of any kind,
or any other type of preferential arrangement, including, without limitation, the lien or retained
security title of a conditional vendor.

          “Loan Documents” means, collectively, this Agreement, each promissory note issued
thereunder, each Designation Letter and each Termination Letter.

          “Loan Party” has the meaning specified in Section 4.01.

          “Margin Stock” means margin stock within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System.

          “Master Bottling Agreement” means the Master Bottling Agreement dated March 30, 1999,
between the Company and Pepsi or any successor or replacement agreement that confers substantially
the same benefits on the Company as the Master Bottling Agreement conferred on the date hereof.

 

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          “Material Adverse Change” means any material adverse change in the financial
condition, operations or properties of the Company or the Company and its Subsidiaries (including
the Guarantor) taken as a whole.

          “Material Adverse Effect” means a material adverse effect on (a) the financial
condition, operations or properties of the Company and its Subsidiaries (including the Guarantor)
taken as a whole, (b) the rights and remedies of the Agent or any Lender under this Agreement or
any promissory note or (c) the ability of the Company to perform its obligations under this
Agreement or any promissory note.

          “Material Subsidiary” means each Subsidiary of the Company which is a “significant
subsidiary” as that term is defined in Rule 1-02(w) of the Regulation S-X under the Securities Act
of 1933, as amended, as such rule is in effect as of the date hereof.

          “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

          “Moody’s Rating” means, at any time, the rating of the Company’s Index Debt then most
recently announced by Moody’s.

          “New Lender” means, for purposes of Section 2.07(c), an Eligible Assignee (which may
be a Lender) selected by the Company with (in the case of a New Lender that is not already a
Lender) prior consultation with the Agent.

          “Notice of Competitive Bid Borrowing” has the meaning specified in Section 2.03(b).

          “Notice of L/C Issuance” has the meaning specified in Section 2.04(c).

          “Notice of Revolving Credit Borrowing” has the meaning specified in Section 2.02(a).

          “Original Closing Date” means March 22, 2006.

          “Pepsi” means PepsiCo, Inc., a North Carolina corporation.

          “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof.

          “Principal Property” means any single manufacturing or processing plant, office
building, or warehouse owned or leased by the Company, a Restricted Subsidiary or the Guarantor
other than a plant, warehouse, office building, or portion thereof which, in the opinion of the
Company’s Board of Directors, is not of material importance to the business conducted by the
Company, its Restricted Subsidiaries and the Guarantor as an entirety.

          “Quarterly Dates” means the last Business Day of each March, June, September and
December, commencing on the first such date to occur after the Effective Date.

          “Rating” means the Moody’s Rating or the S&P Rating, as the case may be.

          “Rating Level Change” means a change in the Moody’s Rating or the S&P Rating that
results in a change from one Rating Level Period to another, which Rating Level Change shall be
deemed to take effect on the date on which the relevant change in rating is first announced by
Moody’s or S&P.

          “Rating Level Period” means a Rating Level 1 Period, a Rating Level 2 Period, a Rating
Level 3 Period, a Rating Level 4 Period or a Rating Level 5 Period; provided that:

 

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	 	(i)	 	“Rating Level 1 Period” means a period during which the
Moody’s Rating is at or above Aa3 or the S&P Rating is at or above AA-;
	 
	 	(ii)	 	“Rating Level 2 Period” means a period that is not a
Rating Level 1 Period, during which the Moody’s Rating is at or above A1 or the
S&P Rating is at or above A+;
	 
	 	(iii)	 	“Rating Level 3 Period” means a period that is not a
Rating Level 1 Period or a Rating Level 2 Period, during which the Moody’s
Rating is at or above A2 or the S&P Rating is at or above A;
	 
	 	(iv)	 	“Rating Level 4 Period” means a period that is not a
Rating Level 1 Period, a Rating Level 2 Period or a Rating Level 3 Period,
during which the Moody’s Rating is at or above A3 or the S&P Rating is at or
above A-; and
	 
	 	(v)	 	“Rating Level 5 Period” means a period that is not a
Rating Level 1 Period, a Rating Level 2 Period, a Rating Level 3 Period or a
Rating Level 4 Period;

and provided, further, that if the Moody’s Rating and the S&P Rating differ by more than
one Rating Level, then the applicable Rating Level Period shall be one Rating Level lower than the
Rating Level resulting from the application of the higher of such ratings (for which purpose Rating
Level 1 is the highest and Rating Level 5 is the lowest); and provided, further, that any
period during which there is no Moody’s Rating or there is no S&P Rating shall be a Rating Level 5
Period.

          “Reference Banks” means Citibank and HSBC Bank USA, N.A. (and any successors thereof).

          “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

          “Register” has the meaning specified in Section 8.07(d).

          “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve
System.

          “Required Lenders” means at any time Lenders owed more than 50% of the then aggregate
unpaid principal amount of the Advances (excluding Competitive Bid Advances) owing to Lenders, or,
if no such principal amount is then outstanding, Lenders having more than 50% of the aggregate
amount of the Commitments; provided that, for purposes solely of this definition, each
Lender’s participation in each Letter of Credit shall be counted as an Advance by such Lender to
the extent of such Lender’s Applicable Percentage of the Available Amount of such Letter of Credit.

          “Restricted Subsidiary” means at any time any Subsidiary of the Company except a
Subsidiary which is at the time an Unrestricted Subsidiary.

          “Revolving Credit Advance” means an advance by a Lender to a Borrower as part of a
Revolving Credit Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance (each of
which shall be a “Type” of Revolving Credit Advance).

          “Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving
Credit Advances of the same Type made by each of the Lenders pursuant to Section 2.01.

          “S&P” means Standard & Poor’s Rating Services or any successor thereto.

 

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          “S&P Rating” means, at any time, the rating of the Company’s Index Debt then most
recently announced by S&P.

          “SPC” has the meaning specified in Section 8.07(e).

          “Subsidiary” of any Person means any corporation, partnership, joint venture, limited
liability company, trust or estate of which (or in which) more than 50% of (a) the issued and
outstanding capital stock (or equivalent interest) having ordinary voting power to elect a majority
of the Board of Directors (or Persons performing similar actions) of such corporation or limited
liability company (irrespective of whether at the time capital stock (or equivalent interest) of
any other class or classes of such corporation or limited liability company shall or might have
voting power upon the occurrence of any contingency), (b) the interest in the capital or profits of
such partnership or joint venture or (c) the beneficial interest in such trust or estate is at the
time directly or indirectly owned or controlled by such Person, by such Person and one or more of
its other Subsidiaries or by one or more of such Person’s other Subsidiaries. The term
“Subsidiary” shall refer to Subsidiaries of the Company unless otherwise specified.

          “Substitution Date” has the meaning specified in Section 2.19(c).

          “Substitution Letter” has the meaning specified in Section 2.19(c).

          “Termination Date” means October 19, 2012 or, if earlier, the date of termination in
whole of the Commitments pursuant to Section 2.07(a) or 6.01 or, in the case of any Lender whose
Commitment is extended pursuant to Section 2.08(c), the date to which such Commitment is extended;
provided in each case that if any such date is not a Business Day, the relevant Termination
Date of such Lender shall be the immediately preceding Business Day.

          “Termination Letter” has the meaning specified in Section 2.19(b).

          “Type” has the meaning specified in the definition of “Revolving Credit Advance.”

          “Unrestricted Subsidiary” means (a) any Subsidiary of the Company (not at the time
designated a Restricted Subsidiary) (i) the major part of whose business consists of finance,
banking, credit, leasing, insurance, financial services, or other similar operations, or any
continuation thereof, (ii) substantially all the assets of which consist of the capital stock of
one or more such Subsidiaries, or (iii) designated as such by the Company’s Board of Directors and
(b) the Guarantor. Any Subsidiary designated as a Restricted Subsidiary may be designated as an
Unrestricted Subsidiary.

          “Voting Stock” means capital stock issued by a corporation, or equivalent interests in
any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to
vote for the election of directors (or persons performing similar actions) of such Person, even if
the right so to vote has been suspended by the happening of such a contingency.

     SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date, the word
“from” means “from and including” and the words “to” and “until” each mean “to but
excluding”.

     SECTION 1.03. Accounting Terms. Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all accounting determinations hereunder
shall be made, and all financial statements required to be delivered hereunder shall be
prepared in accordance with GAAP; provided that, if the Company notifies the Agent
that the Company wishes to amend any provisions hereof to eliminate the effect of any
change in GAAP (or if the Agent notifies the Company that the Required Lenders wish to
amend any provision hereof for such purpose), then

 

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such provision shall be applied on the basis of GAAP in effect immediately before the
relevant change in GAAP became effective, until either such notice is withdrawn or such
provision is amended in a manner satisfactory to the Company and the Required Lenders.

     SECTION 1.04. Effect of Amendment and Restatement. On the Effective Date,
the Existing Credit Agreement shall be amended and restated in its entirety in the form
hereof. The parties hereto acknowledge and agree that (i) this Agreement and the other
Loan Documents, whether executed and delivered in connection herewith or otherwise, do not
constitute a novation, payment and reborrowing, or termination of the obligations under the
Existing Credit Agreement as in effect immediately prior to the Effective Date, which
remain outstanding (as amended and restated hereby) and (ii) such obligations are in all
respects continuing (as amended and restated hereby).

     SECTION 1.05. Existing Advances, Letters of Credit. All Existing Advances
shall remain outstanding as of the Effective Date (with the then existing Interest Periods,
if any, therefor) and shall be Advances for all purposes of this Agreement and the other
Loan Documents. The letters of credit issued and outstanding under the Existing Credit
Agreement on the Effective Date (the “Existing Letters of Credit”) shall be deemed
to be “Letters of Credit” for all purposes of this Agreement and the other Loan Documents.

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES

     SECTION 2.01. The Revolving Credit Advances. (a) Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make Revolving Credit
Advances to the Company or any Borrowing Subsidiary from time to time on any Business Day
during the period from the Effective Date until the Termination Date in an aggregate amount
not to exceed at any time outstanding the amount set forth opposite such Lender’s name on
Schedule 1 or, if such Lender has entered into any Assignment and Acceptance, set forth for
such Lender in the Register maintained by the Agent pursuant to Section 8.07(d), as such
amount may be reduced pursuant to Section 2.07(a) or increased pursuant to Section 2.07(c)
(such Lender’s “Commitment”); provided that the aggregate amount of the
Commitments of the Lenders shall be deemed used from time to time to the extent of the
aggregate amount of the Competitive Bid Advances then outstanding and such deemed use of
the aggregate amount of the Commitments shall be allocated among the Lenders ratably
according to their respective Commitments (such deemed use of the aggregate amount of the
Commitments being a “Competitive Bid Reduction”); and provided,
further, that the sum of the aggregate outstanding principal amount of the Advances
plus the Aggregate L/C Exposure shall not at any time exceed the aggregate amount
of the Commitments.

          (b) Each Revolving Credit Borrowing shall be in an aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof (or, if less, (i) an aggregate amount equal to
the amount by which the aggregate amount of a proposed Competitive Bid Borrowing requested by the
Company exceeds the aggregate amount of Competitive Bid Advances offered to be made by the Lenders
and accepted by the Company in respect of such Competitive Bid Borrowing, if such Competitive Bid
Borrowing is made on the same date as such Revolving Credit Borrowing or (ii) the aggregate amount
of the unused Commitments, after giving effect to any Competitive Bid Reductions then in effect)
and shall consist of Revolving Credit Advances of the same Type made on the same day by the Lenders
ratably according to their respective Commitments.

          (c) Within the limits of each Lender’s Commitment and the limitation set forth in Section
2.01(a), each Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.12 and
reborrow under this Section 2.01.

     SECTION 2.02. Making the Revolving Credit Advances.

 

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          (a) (i) Each Revolving Credit Borrowing shall be made on notice, given not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the proposed Revolving
Credit Borrowing in the case of a Revolving Credit Borrowing consisting of Eurodollar Rate
Advances, or the date of the proposed Revolving Credit Borrowing in the case of a Revolving Credit
Borrowing consisting of Base Rate Advances, by the Company (on its own behalf and on behalf of any
Borrowing Subsidiary) to the Agent, which shall give to each Lender prompt notice thereof by
telecopier or email. Each such notice (a “Notice of Revolving Credit Borrowing”) shall be
by telecopier or email, confirmed promptly by hard copy, in substantially the form of Exhibit A-1
hereto, specifying therein the requested (i) date of such Revolving Credit Borrowing, (ii) Type of
Advances comprising such Revolving Credit Borrowing, (iii) aggregate amount of such Revolving
Credit Borrowing, (iv) in the case of a Revolving Credit Borrowing consisting of Eurodollar Rate
Advances, initial Interest Period for each such Revolving Credit Advance and (v) name of the
relevant Borrower (which shall be the Company or a Borrowing Subsidiary).

          (ii) Each Lender shall, before 11:00 A.M. (New York City time), in the case of a Revolving
Credit Borrowing consisting of Eurodollar Rate Advances, or before 1:00 P.M. (New York City time),
in the case of a Revolving Credit Borrowing consisting of Base Rate Advances, on the date of such
Revolving Credit Borrowing, make available for the account of its Applicable Lending Office to the
Agent at the Agent’s Account, in same day funds, such Lender’s ratable portion of such Revolving
Credit Borrowing.

          (iii) After the Agent’s receipt of such funds and upon fulfillment of the applicable
conditions set forth in Article III, the Agent will make such same day funds available to the
relevant Borrower at such Borrower’s account at the Agent’s address referred to in Section 8.02,
provided, however, that the Agent shall first apply such funds, to the extent
required, to reimburse any L/C Payment that has not theretofore been reimbursed.

          (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Company may not
select Eurodollar Rate Advances for any Revolving Credit Borrowing if the aggregate amount of such
Revolving Credit Borrowing is less than $10,000,000 or if the obligation of the Lenders to make
Eurodollar Rate Advances shall then be suspended pursuant to Section 2.10 and (ii) the Eurodollar
Rate Advances may not be outstanding as part of more than six separate Revolving Credit Borrowings.

          (c) Each Notice of Revolving Credit Borrowing shall be irrevocable and binding on the
relevant Borrower. In the case of any Revolving Credit Borrowing that the related Notice of
Revolving Credit Borrowing specifies is to be comprised of Eurodollar Rate Advances, the Company
shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result
of any failure to fulfill on or before the date specified in such Notice of Revolving Credit
Borrowing for such Revolving Credit Borrowing the applicable conditions set forth in Article III,
including, without limitation, any loss, cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the Revolving Credit
Advance to be made by such Lender as part of such Revolving Credit Borrowing when such Revolving
Credit Advance, as a result of such failure, is not made on such date.

          (d) Unless the Agent shall have received notice from a Lender prior to the date of any
Revolving Credit Borrowing that such Lender will not make available to the Agent such Lender’s
ratable portion of such Revolving Credit Borrowing, the Agent may assume that such Lender has made
such portion available to the Agent on the date of such Revolving Credit Borrowing in accordance
with subsection (a) of this Section 2.02 and the Agent may, in reliance upon such assumption, make
available to the relevant Borrower on such date a corresponding amount. If and to the extent that
such Lender shall not have so made such ratable portion available to the Agent, such Lender and
such Borrower severally agree to repay to the Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made available to such
Borrower until the date such amount is repaid to the Agent, at (i) in the case of a Borrower, the
interest rate applicable at the time to

 

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Revolving Credit Advances comprising such Revolving Credit Borrowing and (ii) in the case of
such Lender, the Federal Funds Rate. If such Lender shall repay to the Agent such corresponding
amount, such amount so repaid shall constitute such Lender’s Revolving Credit Advance as part of
such Revolving Credit Borrowing for purposes of this Agreement and shall be made available in same
day funds to the relevant Borrower’s account at the Agent’s address referred to in Section 8.02.

          (e) The failure of any Lender to make the Revolving Credit Advance to be made by it as part
of any Revolving Credit Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Revolving Credit Advance on the date of such Revolving Credit Borrowing, but
no Lender shall be responsible for the failure of any other Lender to make the Revolving Credit
Advance to be made by such other Lender on the date of any Revolving Credit Borrowing.

     SECTION 2.03. The Competitive Bid Advances.

          (a) Each Lender severally agrees that each Borrower may make Competitive Bid Borrowings under
this Section 2.03 from time to time on any Business Day during the period from the Effective Date
until the date occurring 7 days prior to the Termination Date in the manner set forth below;
provided that, following the making of each Competitive Bid Borrowing, the aggregate amount
of the Advances then outstanding plus the Aggregate L/C Exposure shall not exceed the
aggregate amount of the Commitments of the Lenders (computed without regard to any Competitive Bid
Reduction).

          (b) The Company (on its own behalf and on behalf of any Borrowing Subsidiary) may request a
Competitive Bid Borrowing under this Section 2.03 by delivering to the Agent, by telecopier or
email, confirmed promptly by hard copy, a notice of a Competitive Bid Borrowing (a “Notice of
Competitive Bid Borrowing”), in substantially the form of Exhibit A-2 hereto, specifying
therein (i) the date of such proposed Competitive Bid Borrowing, (ii) the aggregate amount of such
proposed Competitive Bid Borrowing, (iii) the maturity date for repayment of each Competitive Bid
Advance to be made as part of such Competitive Bid Borrowing (which maturity date may not be
earlier than the date occurring 7 days after the date of such Competitive Bid Borrowing or later
than the Termination Date), (iv) the interest payment date or dates relating thereto, (v) the name
of the Borrower, and (vi) any other terms to be applicable to such Competitive Bid Borrowing, not
later than 10:00 A.M. (New York City time) (A) at least one Business Day prior to the date of the
proposed Competitive Bid Borrowing, if the Company shall specify in the Notice of Competitive Bid
Borrowing that the rates of interest to be offered by the Lenders shall be fixed rates per annum
(the Advances comprising any such Competitive Bid Borrowing being referred to herein as “Fixed
Rate Advances”) and (B) at least four Business Days prior to the date of the proposed
Competitive Bid Borrowing, if the Company shall instead specify in the Notice of Competitive Bid
Borrowing another basis to be used by the Lenders in determining the rates of interest to be
offered by them (the Advances comprising such Competitive Bid Borrowing being referred to herein as
“LIBO Rate Advances”). The Agent shall in turn promptly notify each Lender of each request
for a Competitive Bid Borrowing received by it from the Company by sending such Lender a copy of
the related Notice of Competitive Bid Borrowing.

          (c) Each Lender may, if, in its sole discretion, it elects to do so, irrevocably offer to
make one or more Competitive Bid Advances to the relevant Borrower as part of such proposed
Competitive Bid Borrowing at a rate or rates of interest specified by such Lender in its sole
discretion, by notifying the Agent (which shall give prompt notice thereof to the Company), before
10:00 A.M. (New York City time) on the date of such proposed Competitive Bid Borrowing, in the
case of a Competitive Bid Borrowing consisting of Fixed Rate Advances, and three Business Days
before the date of such proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of LIBO Rate Advances, of the minimum amount and maximum amount of each
Competitive Bid Advance which such Lender would be willing to make as part of such proposed
Competitive Bid Borrowing (which amounts may, subject to the proviso to the first sentence of
Section 2.03(a), exceed such Lender’s Commitment, if any), the rate or rates of interest therefor
and such Lender’s Applicable Lending Office with respect to such Competitive Bid Advance;
provided that if the Agent in its capacity as a Lender shall, in its sole

 

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discretion, elect to make any such offer, it shall notify the Company of such offer before
9:00 A.M. (New York City time) on the date on which notice of such election is to be given to the
Agent by the other Lenders. If any Lender shall elect not to make such an offer, such Lender shall
so notify the Agent, before 10:00 A.M. (New York City time) on the date on which notice of such
election is to be given to the Agent by the other Lenders, and such Lender shall not be obligated
to, and shall not, make any Competitive Bid Advance as part of such Competitive Bid Borrowing;
provided that the failure by any Lender to give such notice shall not cause such Lender to
be obligated to make any Competitive Bid Advance as part of such proposed Competitive Bid
Borrowing.

          (d) The Company shall, in turn, before 11:00 A.M. (New York City time) on the date of such
proposed Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of Fixed
Rate Advances, and before 1:00 P.M. (New York City time) three Business Days before the date of
such proposed Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of
LIBO Rate Advances, either:

          (x) cancel such Competitive Bid Borrowing by giving the Agent notice to that
effect, or

          (y) accept one or more of the offers made by any Lender or Lenders pursuant to
paragraph (c) above, by giving notice to the Agent of the amount of each Competitive
Bid Advance (which amount shall be equal to or greater than the minimum amount, and
equal to or less than the maximum amount, notified to the Company by the Agent on
behalf of such Lender for such Competitive Bid Advance pursuant to paragraph (c)
above) to be made by each Lender as part of such Competitive Bid Borrowing, and
reject any remaining offers made by Lenders pursuant to paragraph (c) above by
giving the Agent notice to that effect. If the Company accepts any offers made by
Lenders pursuant to paragraph (c) above, such offers shall be accepted in the order
of the lowest to highest interest rates or, if two or more Lenders offer to make
Competitive Bid Advances at the same interest rate, such offers, if any, shall be
accepted in proportion to the amount offered by each such Lender at such interest
rate notwithstanding any minimum specified by such Lender in its notice given
pursuant to paragraph (c) above. The Company may not accept offers in excess of the
amount specified in accordance with paragraph (a) above.

          (e) If the Company notifies the Agent that such Competitive Bid Borrowing is cancelled
pursuant to paragraph (d)(x) above, the Agent shall give prompt notice thereof to the Lenders and
such Competitive Bid Borrowing shall not be made.

          (f) If the Company accepts one or more of the offers made by any Lender or Lenders pursuant
to paragraph (d)(y) above, the Agent shall in turn promptly notify (A) each Lender that has made an
offer as described in paragraph (c) above, of the date and aggregate amount of such Competitive Bid
Borrowing and whether or not any offer or offers made by such Lender pursuant to paragraph (c)
above have been accepted by the Company, (B) each Lender that is to make a Competitive Bid Advance
as part of such Competitive Bid Borrowing, of the amount of each Competitive Bid Advance to be made
by such Lender as part of such Competitive Bid Borrowing, and (C) each Lender that is to make a
Competitive Bid Advance as part of such Competitive Bid Borrowing, upon receipt, that the Agent has
received forms of documents appearing to fulfill the applicable conditions set forth in Article
III. Each Lender that is to make a Competitive Bid Advance as part of such Competitive Bid
Borrowing shall, before 12:00 noon (New York City time) on the date of such Competitive Bid
Borrowing specified in the notice received from the Agent pursuant to clause (A) of the preceding
sentence or any later time when such Lender shall have received notice from the Agent pursuant to
clause (C) of the preceding sentence, make available for the account of its Applicable Lending
Office to the Agent at the Agent’s Account, in same day funds, such Lender’s portion of such
Competitive Bid Borrowing. Upon fulfillment of the applicable conditions set forth in Article III
and after receipt by the Agent of such funds, the Agent will make such same day

 

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funds available to the relevant Borrower at such Borrower’s account at the Agent’s address
referred to in Section 8.02. Promptly after each Competitive Bid Borrowing the Agent will notify
each Lender of the amount of the Competitive Bid Borrowing, the consequent Competitive Bid
Reduction and the dates upon which such Competitive Bid Reduction commenced and will terminate.

          (g) Each Competitive Bid Borrowing shall be in an aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof and, following the making of each Competitive Bid
Borrowing, the Company shall be in compliance with the limitation set forth in the proviso to the
first sentence of paragraph (a) above.

          (h) Within the limits and on the conditions set forth in this Section 2.03, each Borrower may
from time to time borrow under this Section 2.03, repay or prepay pursuant to subsection (i) below,
and reborrow under this Section 2.03, provided that a Competitive Bid Borrowing shall not
be made within three Business Days of the date of any other Competitive Bid Borrowing.

          (i) Each Borrower shall repay to the Agent for the account of each Lender that has made a
Competitive Bid Advance to such Borrower, on the maturity date of such Competitive Bid Advance
(such maturity date being that specified by the Company for repayment of such Competitive Bid
Advance in the related Notice of Competitive Bid Borrowing delivered pursuant to paragraph (b)
above and provided in the promissory note, if any, evidencing such Competitive Bid Advance), the
then unpaid principal amount of such Competitive Bid Advance. No Borrower shall have any right to
prepay any principal amount of any Competitive Bid Advance unless (x) such Borrower obtains the
prior written consent of the Lender which made such Competitive Bid Advance, or (y), such
prepayment is made on the terms specified by the Company for such Competitive Bid Advance in the
related Notice of Competitive Bid Borrowing delivered pursuant to paragraph (b) above and set forth
in the promissory note, if any, evidencing such Competitive Bid Advance.

          (j) Each Borrower shall pay interest on the unpaid principal amount of each Competitive Bid
Advance to such Borrower from the date of such Competitive Bid Advance to the date the principal
amount of such Competitive Bid Advance is repaid in full, at the rate of interest for such
Competitive Bid Advance specified by the Lender making such Competitive Bid Advance in its notice
with respect thereto delivered pursuant to paragraph (c) above, payable on the interest payment
date or dates specified by such Borrower for such Competitive Bid Advance in the related Notice of
Competitive Bid Borrowing delivered pursuant to paragraph (b) above, as provided in the promissory
note, if any, evidencing such Competitive Bid Advance.

          (k) At its option, the Company (on its own behalf and on behalf of any Borrower) may request
a Competitive Bid Borrowing directly from the Lenders; provided that it follows the
procedures set forth in this Section 2.03 and promptly delivers, by telecopier or telex, a copy of
the Notice of Competitive Bid Borrowing and notice in writing of the results of such request to the
Agent.

          (l) The indebtedness of each Borrower resulting from each Competitive Bid Advance made to
such Borrower as part of a Competitive Bid Borrowing shall, if requested by the applicable Lender,
be evidenced by a separate promissory note of such Borrower payable to the order of the Lender
making such Competitive Bid Advance.

     SECTION 2.04. Issuance of Letters of Credit.

          (a) Each Issuing Lender agrees, on the terms and conditions hereinafter set forth, to issue
one or more letters of credit for the account of the Company or any Borrowing Subsidiary from time
to time on any Business Day during the period from the Effective Date until the date 10 Business
Days before the Termination Date, provided that (i) the Aggregate L/C Exposure shall not at
any time exceed the Letter of Credit Facility Amount, (ii) with respect to each Initial Issuing
Lender, the sum of (A) the aggregate Available Amount of all outstanding Letters of Credit issued
by such Initial Issuing Lender plus

 

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(B) the aggregate unreimbursed amount of all payments by such Initial Issuing Lender of drafts
drawn under all Letters of Credit issued by such Initial Issuing Lender shall not at any time
exceed $200,000,000 and (iii) the sum of the aggregate outstanding principal amount of the Advances
plus the Aggregate L/C Exposure shall not at any time exceed the aggregate amount of the
Commitments. Within the foregoing limits, and subject to the terms and conditions hereof, the
Borrowers’ ability to obtain Letters of Credit shall be fully revolving, and accordingly any
Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit
that have expired or that have been drawn upon and reimbursed.

     (b) (i) Each Letter of Credit shall (x) be in a form reasonably satisfactory to the
relevant Issuing Lender, (y) be denominated in U.S. dollars, and (z) have a stated
expiration date that is no later than the earlier of (1) one year after its date of issuance
and (2) five Business Days prior to the Termination Date, provided that any Letter
of Credit with a one-year tenor may provide for the renewal thereof for additional one-year
periods (which shall in no event extend beyond the date referred to in clause (2) above).

(ii) No Issuing Lender shall be under any obligation to issue any Letter of Credit if:

(x) any order, judgment or decree of any governmental authority or arbitrator shall
by its terms purport to enjoin or restrain such Issuing Lender from issuing such
Letter of Credit, or any law applicable to such Issuing Lender or any request or
directive (whether or not having the force of law) from any governmental authority
with jurisdiction over such Issuing Lender shall prohibit, or request that such
Issuing Lender refrain from, the issuance of letters of credit generally or such
Letter of Credit in particular; or

(y) the issuance of such Letter of Credit would violate one or more policies of such Issuing
Lender generally applicable to account parties.

     (c) (i) Each Letter of Credit shall be issued upon notice, given not later than 11:00
A.M. (New York City time) on the third Business Day prior to date of the proposed issuance
of such Letter of Credit by the Company (on its own behalf or on behalf of any Borrowing
Subsidiary) to the relevant Issuing Lender (or such shorter notice as shall be acceptable to
such Lender), with a copy to the Agent, which shall give to each Lender prompt notice
thereof by telecopier or email. Each such notice (a “Notice of L/C Issuance”) shall
be by telecopier or email, confirmed promptly by hard copy specifying therein the requested
date of issuance (which shall be a Business Day) of such Letter of Credit and its face
amount and expiration date and the name and address of the beneficiary thereof, and shall
attach the proposed form thereof (or such other information as shall be necessary to prepare
such Letter of Credit). If requested by the applicable Issuing Lender, the Company shall
supply such application and agreement for letter of credit as the relevant Issuing Lender
may require in connection with such requested Letter of Credit (“L/C Related
Documents”).

     (ii) If the proposed Letter of Credit complies with the requirements of this Section
2.04, such Issuing Lender will, subject to the applicable conditions set forth in Article
III, make such Letter of Credit available to the Company or the relevant Borrowing
Subsidiary as agreed with the Company (on its own behalf and on behalf of any Borrower) in
connection with such issuance. In the event and to the extent that the provisions of any
L/C Related Documents shall conflict with this Agreement, the provisions of this Agreement
shall govern.

     (iii) Each Issuing Lender shall furnish (A) to the Agent on the first Business Day of
each week a written report summarizing the issuance and expiration dates of Letters of
Credit issued by it during the previous week and drawings during such week under all Letters
of Credit issued by it, (B) to each Lender and the Company on the first Business Day of each
month a written report summarizing the issuance and expiration dates of Letters of Credit
issued by it during the preceding month and drawings during such month under all Letters of
Credit issued by it and (C)

 

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to the Agent, the Company and each Lender on the first Business Day of each fiscal
quarter a written report setting forth the average daily aggregate Available Amount during
the preceding fiscal quarter of all Letters of Credit issued by it.

     SECTION 2.05. L/C Payments.

          (a) (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of
drawing under such Letter of Credit, the relevant Issuing Lender shall notify the relevant
Borrower and the Agent thereof. Not later than 2:00 p.m. on the date of any L/C Payment by
an Issuing Lender if the relevant Borrower receives notice thereof by 9:00 a.m. on such
date, and otherwise on the next Business Day after the relevant Borrower receives notice of
such L/C Payment (the “Honor Date”), such Borrower agrees to reimburse such Issuing
Lender directly in an amount equal to the amount of such L/C Payment.

          (ii) If any Borrower fails to so reimburse such Issuing Lender by such time, such
Issuing Lender shall promptly notify the Agent and the Agent shall promptly notify each
Lender of the Honor Date, the unreimbursed amount of such L/C Payment (the “Unreimbursed
Amount”), and the amount of such Lender’s pro rata share thereof. In
such event, such Borrower shall be irrevocably deemed to have requested a Revolving Credit
Borrowing of Base Rate Advances to be disbursed on the Honor Date in an aggregate amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in
Section 2.01(b). Any notice given by an Issuing Lender or the Agent pursuant to this Section
2.05(a)(ii) may be given by telephone if immediately confirmed in writing; provided
that the lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.

          (iii) Each Lender (including any Lender acting as an Issuing Lender) shall upon any
notice pursuant to Section 2.05(a)(ii) make funds available to the Agent for the account of
the relevant Issuing Lender at the Agent’s Account in an amount equal to its Applicable
Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified
in such notice by the Agent, whereupon each Lender that so makes funds available shall be
deemed to have made a Base Rate Advance to the applicable Borrower in such amount. The
Agent shall remit the funds so received to the relevant Issuing Lender.

          (iv) The Borrower agrees to pay interest on the unreimbursed amount of any L/C Payment
to the relevant Issuing Lender, for each day from the date of such L/C Payment until such
L/C Payment is reimbursed or refinanced in full as herein provided, at the Base Rate from
time to time, payable on demand.

          (v) Each Lender’s obligation to make the payments provided in clause (iii) above to
reimburse an Issuing Lender for any L/C Payment shall be absolute and unconditional and
shall not be affected by any circumstance, including (A) any set-off, counterclaim,
recoupment, defense or other right which such Lender may have against an Issuing Lender, any
Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of
a Default or termination of the Commitments or any of them, or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing.

          (vi) If any Lender fails to make available to the Agent for the account of an Issuing
Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of
this Section 2.05(a) by the time specified in Section 2.05(a)(iii), such Issuing Lender
shall be entitled to recover from such Lender (acting through the Agent), on demand, such
amount with interest thereon for the period from the date such payment is required to the
date on which such payment is immediately available to such Issuing Lender at a rate per
annum equal to the Federal Funds Rate from time to time in effect (without duplication of
amounts paid by the Borrower under clause (iv) above). A certificate of such Issuing Lender
submitted to any Lender (through

 

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    the Agent) with respect to any amounts owing under this clause (vi) shall be conclusive
absent manifest error.

          (b) At any time after an Issuing Lender has made an L/C Payment and has received funds from a
Lender in respect of such payment in accordance with Section 2.05(a)(iii), if the Agent receives
for the account of such Issuing Lender any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from any Borrower or otherwise, including proceeds of cash
collateral applied thereto by the Agent), the Agent will distribute to such Lender its pro
rata share thereof in the same funds as those received by the Agent.

          (c) The obligation of each Borrower to reimburse each Issuing Lender for each L/C Payment
under each Letter of Credit issued for account of such Borrower shall be absolute, unconditional
and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under
all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other agreement or instrument relating thereto;

     (ii) the existence of any claim, counterclaim, set-off, defense or other right that
such Borrower may have at any time against any beneficiary or any transferee of such Letter
of Credit (or any Person for whom any such beneficiary or any such transferee may be
acting), such Issuing Lender or any other Person, whether in connection with this Agreement,
the transactions contemplated hereby or by such Letter of Credit or any agreement or
instrument relating thereto, or any unrelated transaction;

     (iii) any sight draft, demand, certificate or other document presented under such
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or
any statement therein being untrue or inaccurate in any respect, or any loss or delay in the
transmission or otherwise of any document required in order to make an L/C Payment under
such Letter of Credit;

     (iv) any payment by such Issuing Lender under such Letter of Credit against
presentation of a sight draft or certificate that does not strictly comply with the terms of
such Letter of Credit or any payment made by such Issuing Lender under such Letter of Credit
to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for
the benefit of creditors, liquidator, receiver or other representative of or successor to
any beneficiary or any transferee of such Letter of Credit, including any arising in
connection with any proceeding under any bankruptcy, insolvency, reorganization or similar
law; or

     (v) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, any Borrower.

          (d) Each Lender and each Borrower agrees that, in making any L/C Payment under a Letter of
Credit, the relevant Issuing Lender shall not have any responsibility to obtain any document (other
than any sight draft, certificates and documents expressly required by the Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the authority of the
Person executing or delivering any such document. None of the Issuing Lenders, nor the Agent, nor
any of the respective correspondents, participants or assignees of any Issuing Lender shall be
liable to any Lender for (i) any action taken or omitted in connection herewith at the request or
with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related to any Letter of
Credit or L/C Related Document. None of the Issuing Lenders, nor the Agent, nor any of the
respective correspondents, participants or assignees of the Issuing

 

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Lenders, shall be liable or responsible for any of the matters described in clauses (i) through (v)
of Section 2.05(c); provided, however, that anything in such clauses or elsewhere
in this Agreement to the contrary notwithstanding, each Borrower may have a claim against an
Issuing Lender, and such Issuing Lender may be liable to the Borrowers, to the extent, but only to
the extent, of any direct (as opposed to special, indirect, consequential or punitive) damages
suffered by a Borrower which were caused by such Issuing Lender’s willful misconduct or gross
negligence. In furtherance and not in limitation of the foregoing, each Issuing Lender may accept
documents that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary.

          (e) Applicability of ISP98 and UCP. Unless otherwise expressly agreed by an Issuing
Lender and the Company when a Letter of Credit is issued, either the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance) or, at the option of the Company, the
Uniform Customs and Practice for Documentary Credits (“UCP”), as most recently published by
the International Chamber of Commerce (the “ICC”) at the time of issuance shall apply to
each Letter of Credit.

     SECTION 2.06. Fees.

          (a) Facility Fee. The Company agrees to pay to the Agent for the account of each
Lender a facility fee on the amount of such Lender’s Commitment, irrespective of usage, from the
Effective Date in the case of each Initial Lender and from the effective date specified in the
Assignment and Acceptance pursuant to which it became a Lender in the case of each other Lender
until the Termination Date (on a daily basis), at the Applicable Facility Fee Rate, payable in
arrears quarterly on the last day of each March, June, September and December and on the
Termination Date, commencing on December 31, 2007.

          (b) Agent’s Fees. The Company shall pay to the Agent for its own account such fees
as may from time to time be agreed between the Company and the Agent.

          (c) Utilization Fee. The Company shall pay to the Agent for the account of each
Lender a utilization fee on the aggregate outstanding principal amount of such Lender’s Advances
for each day on which the aggregate outstanding amount of the Advances plus the Aggregate
L/C Exposure exceeds 50% of the aggregate Commitments, from the Effective Date in the case of each
Initial Lender and from the effective date specified in the Assignment and Acceptance pursuant to
which it became a Lender in the case of each other Lender until the Termination Date (on a daily
basis), at the Applicable Utilization Fee Rate, payable on each day on which interest is payable
under Section 2.09, and on the Termination Date.

          (d) Letter of Credit Fees.

          (i) The Company agrees to pay to the Agent, for the pro rata account of each
Lender based on the respective Commitments of the Lenders, a commission on the average daily
Available Amount of each Letter of Credit outstanding from time to time, at a rate per annum equal
to the Letter of Credit Commission Rate, payable in arrears quarterly on each Quarterly Date and on
the Termination Date, commencing on the first Quarterly Date after the date hereof.

          (ii) The Company agrees to pay to each Issuing Lender, for its own account, (x) a fronting
fee with respect to each Letter of Credit issued by such Issuing Lender, payable quarterly in
arrears on each Quarterly Date and on the Termination Date, in an amount equal to 0.10% per annum
of the average daily Available Amount of such Letter of Credit and (y) such customary fees and
charges in connection with the issuance or administration of each Letter of Credit issued by such
Issuing Lender as may be agreed in writing between the Company and such Issuing Lender from time to
time.

 

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          (e) Fees under Existing Credit Agreement. The Company agrees to pay to the Agent,
each Lender and each Issuing Lender all accrued and unpaid fees (including facility and utilization
fees) in respect of the Commitments under (and as defined in) the Existing Credit Agreement owing
to such Person as of the Effective Date, in each case on the first Quarterly Date to occur after
the Effective Date.

     SECTION 2.07. Termination, Reduction or Increase of the Commitments.

          (a) The Company shall have the right, upon at least three Business Days’ notice to the Agent,
to terminate in whole or reduce ratably in part the unused portions of the respective Commitments
of the Lenders, provided that each partial reduction shall be in the aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and provided
further that (x) the aggregate amount of the Commitments of the Lenders shall not be
reduced to an amount that is less than the sum of the aggregate principal amount of the Advances
then outstanding, plus the Aggregate L/C Exposure, and (y) once terminated, a portion of a
Commitment shall not be reinstated except pursuant to Section 2.07(c).

          (b) If any Lender shall make a demand under Section 2.13 or 2.16 or if the obligation of any
Lender to make Eurodollar Rate Advances shall have been suspended pursuant to Section 2.14, the
Company shall have the right, upon at least ten Business Days’ notice, to terminate in full the
Commitment of such Lender or to demand that such Lender assign to one or more Eligible Assignees
all of its rights and obligations under this Agreement in accordance with Section 8.07. If the
Company shall elect to terminate in full the Commitment of any Lender pursuant to this Section
2.07(b), the Company shall pay to such Lender, on the effective date of such Commitment
termination, an amount equal to the aggregate outstanding principal amount of the Advances owing to
such Lender, together with accrued interest thereon to the date of payment of such principal amount
and all other amounts payable to such Lender under this Agreement, whereupon such Lender shall
cease to be a party hereto.

          (c) (i) Not more than once in any calendar year, the Company may propose to increase the
aggregate amount of the Commitments by an aggregate amount of $25,000,000 or an integral multiple
of $1,000,000 in excess thereof (a “Proposed Aggregate Commitment Increase”) in the manner
set forth below, provided that:

     (1) no Default shall have occurred and be continuing either as of the date on which
the Company shall notify the Agent of its request to increase the aggregate amount of the
Commitments or as of the related Increase Date (as hereinafter defined); and

     (2) after giving effect to any such increase, the aggregate amount of the Commitments
shall not exceed $1,700,000,000 (and no increase in the aggregate amount of the Commitments
hereunder shall result in a change in the Letter of Credit Facility Amount).

          (ii) The Company may request an increase in the aggregate amount of the Commitments by
delivering to the Agent a notice (an “Increase Notice”; the date of delivery thereof to the
Agent being the “Increase Notice Date”) specifying (1) the Proposed Aggregate Commitment
Increase, (2) the proposed date (the “Increase Date”) on which the Commitments would be so
increased (which Increase Date may not be fewer than 30 nor more than 60 days after the Increase
Notice Date) and (3) the New Lenders, if any, to whom the Company desires to offer the opportunity
to commit to all or a portion of the Proposed Aggregate Commitment Increase. The Agent shall in
turn promptly notify each Lender of the Company’s request by sending each Lender a copy of such
notice.

          (iii) Not later than the date five days after the Increase Notice Date, the Agent shall
notify each New Lender, if any, identified in the related Increase Notice of the opportunity to
commit to all or any portion of the Proposed Aggregate Commitment Increase. Each such New Lender
may irrevocably commit to all or a portion of the Proposed Aggregate Commitment Increase (such New
Lender’s “Proposed New Commitment”) by notifying the Agent (which shall give prompt notice
thereof

 

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to the Company) before 11:00 A.M. (New York City time) on the date that is 10 days after the
Increase Notice Date; provided that:

     (1) the Proposed New Commitment of each New Lender shall be in an amount of
$25,000,000 or an integral multiple of $1,000,000 in excess thereof; and

     (2) each New Lender that submits a Proposed New Commitment shall enter into an
agreement in form and substance satisfactory to the Company and the Agent pursuant to which
such New Lender shall undertake a Commitment (and, if any such New Lender is already a
Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on such
date), and shall pay to the Agent a processing and recordation fee of $3,500.

          (iv) If the aggregate Proposed New Commitments of all of the New Lenders shall be less than
the Proposed Aggregate Commitment Increase, then (unless the Company otherwise requests) the Agent
shall, on or prior to the date that is 15 days after the Increase Notice Date, notify each Lender
of the opportunity to so commit to all or any portion of the Proposed Aggregate Commitment Increase
not committed to by New Lenders pursuant to Section 2.07(c)(iii). Each Lender may, if, in its sole
discretion, it elects to do so, irrevocably offer to commit to all or a portion of such remainder
(such Lender’s “Proposed Increased Commitment”) by notifying the Agent (which shall give
prompt notice thereof to the Company) no later than 11:00 A.M. (New York City time) on the date
five days before the Increase Date.

          (v) If the aggregate amount of Proposed New Commitments and Proposed Increased Commitments
(such aggregate amount, the “Total Committed Increase”) equals or exceeds $25,000,000,
then, subject to the conditions set forth in Section 2.07(c)(i):

     (1) effective on and as of the Increase Date, the aggregate amount of the Commitments
shall be increased by the lesser of the Proposed Aggregate Commitment Increase and the Total
Committed Increase and shall be allocated among the New Lenders and the Lenders as provided
in Section 2.07(c)(vi); and

     (2) on the Increase Date, if any Revolving Credit Advances are then outstanding, the
Company shall borrow Revolving Credit Advances from all or certain of the Lenders and/or
(subject to compliance by the Company with Section 8.04(d)) prepay Revolving Credit Advances
of all or certain of the Lenders such that, after giving effect thereto, the Revolving
Credit Advances (including, without limitation, the Types and Interest Periods thereof)
shall be held by the Lenders (including for such purposes New Lenders) ratably in accordance
with their respective Commitments.

If the Total Committed Increase is less than $25,000,000, then the aggregate amount of the
Commitments shall not be changed pursuant to this Section 2.07(c).

          (vi) The Total Committed Increase shall be allocated among New Lenders having Proposed New
Commitments and Lenders having Proposed Increased Commitments as follows:

     (1) If the Total Committed Increase shall be at least $25,000,000 and less than or
equal to the Proposed Aggregate Commitment Increase, then (x) the initial Commitment of each
New Lender shall be such New Lender’s Proposed New Commitment and (y) the Commitment of each
Lender shall be increased by such Lender’s Proposed Increased Commitment.

     (2) If the Total Committed Increase shall be greater than the Proposed Aggregate
Commitment Increase, then the Total Committed Increase shall be allocated:

     (x) first to New Lenders (to the extent of their respective
Proposed New Commitments) in such a manner as the Company shall agree; and

 

 

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   (y) then to Lenders on a pro rata basis based on the ratio of
each Lender’s Proposed Increased Commitment (if any) to the aggregate amount
of the Proposed Increased Commitments of all of the Lenders.

          (vii) No increase in the Commitments contemplated hereby shall become effective until the
Agent shall have received (x) promissory notes in respect of the Revolving Credit Advances payable
to each New Lender and each other Lender whose Commitment is being increased that, in either case,
shall have requested such promissory notes at least two Business Days prior to the Increase Date,
and (y) evidence satisfactory to the Agent (including an update of the opinion of counsel provided
pursuant to Section 3.01(g)(v)) that such increases in the Commitments, and borrowings thereunder,
have been duly authorized.

     SECTION 2.08. Repayment of Revolving Credit Advances; Evidence of Indebtedness;
Extension of Termination Date.

          (a) The Company and each Borrower shall repay to the Agent for the ratable account of the
Lenders on the Termination Date the aggregate principal amount of the Revolving Credit Advances
then outstanding.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrowers to such Lender resulting from each Advance made by
such Lender, including the amounts of principal and interest payable and paid to such Lender from
time to time hereunder. The Agent shall maintain accounts in which it shall record (i) the amount
of each Advance made hereunder, the Type thereof and the Interest Period, if any, applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Agent
hereunder for the account of the Lenders and each Lender’s share thereof. The entries made in the
accounts maintained pursuant to this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the failure of any
Lender or the Agent to maintain such accounts or any error therein shall not in any manner affect
the obligation of any Borrower to repay the Advances in accordance with the terms of this
Agreement. Any Lender may request that Advances made by it be evidenced by a promissory note. In
such event, the applicable Borrower shall prepare, execute and deliver to such Lender a promissory
note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Agent. Thereafter, the Advances evidenced by
such promissory note and interest thereon shall at all times (including after assignment pursuant
to Section 8.07) be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

          (c) The Company may by written notice to the Agent, not more than 90 nor less than 60 days
prior to the Termination Date then in effect, request that the Termination Date then in effect be
extended for a further period of one year. Such request shall be irrevocable and binding upon the
Company. The Agent shall promptly notify each Lender of such request. If a Lender agrees, in its
individual and sole discretion, to so extend its Commitment (an “Extending Lender”), it
will notify the Agent, in writing, of its decision to do so not more than 30 nor less than 20 days
before said date. The Commitment of any Lender that fails to accept (or fails to respond to) the
Company’s request for extension of the Termination Date (a “Declining Lender”) shall be
terminated on the Termination Date theretofore in effect (without regard to extension by other
Lenders). The Extending Lenders, or any of them, shall then have the right to increase their
respective Commitments by an aggregate amount up to the amount of all Declining Lenders’
Commitments, and, to the extent of any shortfall, the Company shall have the right to require any
Declining Lender to assign in full its rights and obligations under this Agreement to an Eligible
Assignee designated by the Company that agrees to accept all of such rights and obligations (a
“Replacement Lender”), provided that (i) such increase and/or such assignment is
otherwise in

 

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compliance with Section 8.07, (ii) such Declining Lender receives payment in full of an amount
equal to the principal amount of all Advances owing to such Declining Lender, together with accrued
interest thereon to the date of such assignment and all other amounts payable to such Declining
Lender under this Agreement and (iii) any such increase shall be effective on the Termination Date
theretofore in effect and any such assignment shall be effective on the date specified by the
Company and agreed to by the Replacement Lender and the Agent. If (i) Extending Lenders and/or
Replacement Lenders provide Commitments in an aggregate amount equal to 51% of the aggregate amount
of the Commitments outstanding immediately prior to the Termination Date in effect at the time the
Company requests such extension, and (ii) no Default shall have occurred and be continuing
immediately prior to said Termination Date, the Termination Date shall be extended by one year (the
“New Termination Date”) (except that, if the date on which the Termination Date is to be
extended is not a Business Day, such Termination Date as so extended shall be the next preceding
Business Day) from the effective date set forth in an Extension Agreement, in substantially the
form in Exhibit A-3 hereto, which has been duly completed and signed by the Company, the Agent and
the Extending Lenders and Replacement Lenders party thereto; and (iii) the Agent shall notify the
Issuing Lenders of the New Termination Date and the Lenders whose Termination Dates are the New
Termination Date and each Issuing Lender shall determine whether or not, acting in its sole
discretion, it shall elect to extend its Termination Date to the New Termination Date and shall so
notify the Agent, at which time such Issuing Lender’s obligation to issue Letters of Credit
pursuant to Sections 2.04 and 2.05 shall be extended to the date 10 Business Days before the New
Termination Date. Such Extension Agreement shall be executed and delivered no earlier than 30 days
prior to the Termination Date then in effect and the effective date shall be no earlier than 29
days prior to the Termination Date then in effect. No extension of the Commitments pursuant to
this Section 2.08(c) shall be legally binding on any party hereto unless and until such party
executes and delivers a counterpart of such Extension Agreement.

     SECTION 2.09. Interest on Revolving Credit Advances and Letters of Credit
Advances. Each Borrower shall pay interest on the unpaid principal amount of each
Revolving Credit Advance made to such Borrower from the date of such Revolving Credit
Advance until such principal amount shall be paid in full, at the following rates per
annum:

          (a) Base Rate Advances. During such periods as such Revolving Credit Advance is a
Base Rate Advance, a rate per annum equal at all times to the Base Rate in effect from time to
time, payable in arrears quarterly on each Quarterly Date during such periods and on the date such
Base Rate Advance shall be Converted or paid in full.

          (b) Eurodollar Rate Advances. During such periods as such Revolving Credit Advance
is a Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for
such Revolving Credit Advance to the sum of (x) the Eurodollar Rate for such Interest Period for
such Revolving Credit Advance plus (y) the Applicable Margin, payable in arrears on the
last day of such Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such Interest Period every three months from the first day
of such Interest Period and on the date such Eurodollar Rate Advance shall be Converted or paid in
full.

     SECTION 2.10. Interest Rate Determination.

          (a) If the Eurodollar Rate does not appear on Page 3750 of the Telerate Service (or any
successor page), each Reference Bank agrees to furnish to the Agent timely information for the
purpose of determining each Eurodollar Rate. If the Eurodollar Rate does not appear on said Page
3750 (or any successor page), and if any one or more of the Reference Banks shall not furnish such
timely information to the Agent for the purpose of determining any such interest rate, the Agent
shall determine such interest rate on the basis of timely information furnished by the remaining
Reference Banks. The Agent shall give prompt notice to the Company and the Lenders of the
applicable interest rate determined by the Agent for purposes of Section 2.09, and the rate, if
any, furnished by each Reference Bank for the purpose of determining the interest rate under
Section 2.09(b).

 

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          (b) If, due to a major disruption in the interbank funding market with respect to any
Eurodollar Rate Advances, the Required Lenders notify the Agent that the Eurodollar Rate for any
Interest Period for such Advances will not adequately reflect the cost to such Required Lenders of
making, funding or maintaining their respective Eurodollar Rate Advances for such Interest Period,
the Agent shall forthwith so notify the Borrower and the Lenders, whereupon (i) each Eurodollar
Rate Advance will automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to make, or to Convert
Revolving Credit Advances into, Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Company and the Lenders that the circumstances causing such suspension no longer exist.

          (c) If the Company shall fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the definition of “Interest
Period” in Section 1.01, the Agent will forthwith so notify the Company and the Lenders and the
Company will be deemed to have selected an Interest Period of one month.

          (d) If the aggregate unpaid principal amount of Eurodollar Rate Advances comprising any
Borrowing shall be reduced, by payment or prepayment or otherwise, to less than $10,000,000, such
Advances shall automatically Convert into Base Rate Advances on the last day of the Interest Period
applicable thereto.

          (e) Upon the occurrence and during the continuance of any Event of Default, (i) each
Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make, or to
Convert Advances into, Eurodollar Rate Advances shall be suspended.

          (f) If the Eurodollar Rate does not appear on Page 3750 of the Telerate Service (or any
successor page) and fewer than two Reference Banks furnish timely information to the Agent for
determining the Eurodollar Rate for any Eurodollar Rate Advances,

     (i) the Agent shall forthwith notify the Company and the Lenders that the interest
rate cannot be determined for such Eurodollar Rate Advances,

     (ii) each such Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and

     (iii) the obligation of the Lenders to make, or to Convert Revolving Credit Advances
into, Eurodollar Rate Advances shall be suspended until the Agent shall notify the Company
and the Lenders that the circumstances causing such suspension no longer exist.

     SECTION 2.11. Optional Conversion of Revolving Credit Advances. The Company
may on any Business Day, upon notice given to the Agent not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed Conversion and
subject to the provisions of Sections 2.10 and 2.14, Convert all Revolving Credit Advances
of one Type comprising the same Borrowing into Revolving Credit Advances of the other Type;
provided, however, that any Conversion of Eurodollar Rate Advances into
Base Rate Advances shall be made only on the last day of an Interest Period for such
Eurodollar Rate Advances, any Conversion of Base Rate Advances into Eurodollar Rate
Advances shall be in an amount not less than the minimum amount specified in Section
2.02(b) and no Conversion of any Revolving Credit Advances shall result in more separate
Revolving Credit Borrowings than permitted under Section 2.02(b). Each such notice of a
Conversion shall, within the restrictions specified above, specify (i) the date of such
Conversion, (ii) the Revolving Credit Advances to be Converted, and (iii) if such
Conversion is into Eurodollar Rate Advances, the duration of the initial Interest

 

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Period for each such Advance. Each notice of Conversion shall be irrevocable and
binding on the Company.

     SECTION 2.12. Optional Prepayments of Revolving Credit Advances. The Company
may, upon notice not later than 11:00 A.M. (New York City time) on the date of such
payment, in the case of Base Rate Advances, and two Business Days’ notice, in the case of
Eurodollar Rate Advances, to the Agent stating the proposed date and aggregate principal
amount of the prepayment, and if such notice is given the Company shall, prepay the
outstanding principal amount of the Revolving Credit Advances comprising part of the same
Revolving Credit Borrowing in whole or ratably in part, together with accrued interest to
the date of such prepayment on the principal amount prepaid; provided, however,
that (x) each partial prepayment shall be in an aggregate principal amount of $5,000,000 or
an integral multiple of $1,000,000 in excess thereof and (y) in the event of any such
prepayment of a Eurodollar Rate Advance, the Company shall be obligated to reimburse the
Lenders in respect thereof pursuant to Section 8.04(d).

     SECTION 2.13. Increased Costs.

          (a) If, due to either (i) the introduction of or any change in any law or regulation or in
the interpretation or administration of any law or regulation by any governmental authority charged
with the interpretation or administration thereof or (ii) the compliance with any guideline or
request from any central bank or other governmental authority that would be complied with generally
by similarly situated banks acting reasonably (whether or not having the force of law), there shall
be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining
Eurodollar Rate Advances or LIBO Rate Advances by an amount deemed by such Lender to be material,
then the Company shall from time to time, upon demand by such Lender (with a copy of such demand to
the Agent), pay to the Agent for the account of such Lender additional amounts sufficient to
compensate such Lender for such increased cost. A certificate as to the amount of such increased
cost, submitted to the Company and the Agent by such Lender, shall be conclusive and binding for
all purposes, absent manifest error. Notwithstanding the foregoing, no Lender shall be entitled to
request compensation under this paragraph with respect to any Competitive Bid Advance if the change
giving rise to such request was applicable to such Lender at the time of submission of such
Lender’s offer to make such Competitive Bid Advance.

          (b) If, due to either (i) the introduction of or any change in or in the interpretation of
any law or regulation or (ii) compliance with any guideline or request from any central bank or
other governmental or regulatory authority which becomes effective after the date hereof, there
shall be any increase in the amount of capital required or expected to be maintained by any Lender
(including any Issuing Lender) or any corporation controlling such Lender and the amount of such
capital is increased by or based upon the existence of such Lender’s Advances or participation in
Letters of Credit or commitment to lend or, in the case of an Issuing Lender, issue Letters of
Credit hereunder and other commitments of this type by an amount deemed by such Lender to be
material, then, upon demand by such Lender (with a copy of such demand to the Agent), the Company
shall pay to the Agent for the account of such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender or such corporation in the light of
such circumstances, to the extent that such Lender reasonably determines such increase in capital
to be allocable to the existence of such Lender’s Advances or participation in Letters of Credit or
commitment to lend or issue Letters of Credit hereunder. A certificate as to such amounts
submitted to the Company and the Agent by such Lender shall be conclusive and binding for all
purposes as to the calculations therein, absent manifest error. Such certificate shall be in
reasonable detail and shall certify that the claim for additional amounts referred to therein is
generally consistent with such Lender’s treatment of similarly situated customers of such Lender
whose transactions with such Lender are similarly affected by the change in circumstances giving
rise to such payment, but such Lender shall not be required to disclose any confidential or
proprietary information therein.

     SECTION 2.14. Illegality. Notwithstanding any other provision of this
Agreement, if any Lender (including any Issuing Lender) shall notify the Agent (and provide
to the Company an

 

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opinion of counsel to the effect) that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for such Lender or its Eurodollar
Lending Office to perform its obligations hereunder to make Eurodollar Rate Advances or
LIBO Rate Advances or to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances
hereunder, (i) each Eurodollar Rate Advance or LIBO Rate Advance, as the case may be, of
such Lender will automatically, upon such demand, Convert into a Base Rate Advance or an
Advance that bears interest at the rate set forth in Section 2.09(a), as the case may be,
and (ii) the obligation of such Lender to make, or to Convert Revolving Credit Advances
into, Eurodollar Rate Advances shall be suspended until the Agent shall notify the Company
and such Lender that the circumstances causing such suspension no longer exist and such
Lender shall make the Base Rate Advances in the amount and on the dates that it would have
been requested to make Eurodollar Rate Advances had no such suspension been in effect.

     SECTION 2.15. Payments and Computations.

          (a) Each Borrower shall make each payment hereunder not later than 11:00 A.M. (New York City
time) on the day when due in U.S. dollars to the Agent at the Agent’s Account in same day funds.
The Agent will promptly thereafter cause to be distributed like funds relating to the payment of
principal or interest or facility fees or utilization fees ratably (other than amounts payable
pursuant to Section 2.03, 2.05, 2.06(b), 2.07(b), 2.13, 2.16 or 8.04(d) to be distributed to the
respective parties entitled thereto) to the Lenders for the account of their respective Applicable
Lending Offices, and like funds relating to the payment of any other amount payable to any Lender
to such Lender for the account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance
and recording of the information contained therein in the Register pursuant to Section 8.07(d),
from and after the effective date specified in such Assignment and Acceptance, the Agent shall make
all payments hereunder in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly between themselves.

          (b) All computations of interest based on the Base Rate and of facility fees, letter of
credit fees under Section 2.06(d) and of utilization fees shall be made by the Agent on the basis
of a year of 365 or 366 days, as the case may be, and all computations of interest based on the
Eurodollar Rate or the Federal Funds Rate shall be made by the Agent on the basis of a year of 360
days, in each case for the actual number of days (including the first day but excluding the last
day) occurring in the period for which such interest or facility fees or usage fees are payable.
Each determination by the Agent of an interest rate hereunder shall be conclusive and binding for
all purposes, absent manifest error.

          (c) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of payment of interest or facility fee, letter of
credit fees under Section 2.06(d) or utilization fee, as the case may be; provided,
however, that, if such extension would cause payment of interest on or principal of
Eurodollar Rate Advances or LIBO Rate Advances to be made in the next following calendar month,
such payment shall be made on the next preceding Business Day.

          (d) Unless the Agent shall have received notice from the Company prior to the date on which
any payment is due to the Lenders hereunder that a Borrower will not make such payment in full, the
Agent may assume that such Borrower has made such payment in full to the Agent on such date and the
Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due
date an amount equal to the amount then due such Lender. If and to the extent such Borrower shall
not have so made such payment in full to the Agent, each Lender shall repay to the Agent forthwith
on demand such amount distributed to such Lender together with interest thereon, for each day from
the date such

 

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amount is distributed to such Lender until the date such Lender repays such amount to the
Agent, at the Federal Funds Rate.

     SECTION 2.16. Taxes.

          (a) Each Lender is exempt from any withholding imposed under the laws of the United States in
respect of any fees, interest or other payments to which it is entitled pursuant to this Agreement
or any promissory notes issued hereunder (the “Income”) because (i) the Lender is organized
under the laws of the United States; (ii) the Income is effectively connected with the conduct of a
trade or business within the United States within the meaning of Section 871 of the Internal
Revenue Code; or (iii) the Income is eligible for an exemption by reason of a tax treaty. The
Agent is exempt from any withholding tax imposed under the laws of the United States in respect of
the Income because the Agent is organized under the laws of the United States.

          (b) Each Lender organized under the laws of a jurisdiction outside the United States (each, a
“Foreign Lender”) shall, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender, and on the date of the Assignment and Acceptance
pursuant to which it became a Lender in the case of each other Foreign Lender and from time to time
thereafter if requested in writing by the Company or the Agent, provide the Agent and the relevant
Borrower with Internal Revenue Service Form W-8BEN or W-8ECI, as appropriate, or any successor or
other form prescribed by the Internal Revenue Service, certifying that such Foreign Lender is
exempt or entitled to a reduced rate of United States withholding tax on any Income that is the
subject of such forms. If the form provided by a Foreign Lender at the time such Foreign Lender
first becomes a party to this Agreement indicates a United States interest withholding tax rate in
excess of zero, or in excess of the rate applicable to the Foreign Lender assignor on the date of
the Assignment and Acceptance pursuant to which it became a Foreign Lender, in the case of each
other Foreign Lender, withholding tax at such rate shall be considered excluded from Taxes as
defined in Section 2.16(c).

          (c) Based on Section 2.16(a) and (b), any and all payments by any Borrower hereunder or under
any promissory notes issued hereunder shall be made free and clear of and without deduction for any
present United States federal income withholding taxes imposed on a Foreign Lender under the
Internal Revenue Code (such withholding taxes being hereinafter referred to as “Taxes”).

          (d) If, as a result of the enactment, promulgation, execution or ratification of, or any
change in or amendment to, any United States law or any tax treaty (or in the application or
official interpretation of any law or any tax treaty) that occurs on or after the date a Foreign
Lender first becomes a party to this Agreement (a “Change in Law”), a Foreign Lender cannot
comply with Section 2.16(b) or, if despite such compliance, any Borrower shall be required to
deduct any Taxes from or in respect of any Income, then: (i) the sum payable to such Foreign Lender
shall be increased as may be necessary so that after making all required deductions for such Taxes
(including deductions applicable to additional sums payable under this Section 2.16) such Foreign
Lender receives an amount equal to the sum it would have received had no such deductions been made,
(ii) such Borrower shall make such deductions and (iii) such Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance with applicable law.
Notwithstanding the foregoing, each Borrower shall be entitled to pay any Taxes in any lawful
manner so as to reduce any deductions and such Foreign Lender shall to the extent it is reasonably
able provide any documentation or file any forms as may be required by the Internal Revenue Service
or any other foreign governmental agency. In addition, if any Foreign Lender or the Agent (in lieu
of such Foreign Lender), as the case may be, is required to pay directly any Taxes as a result of a
Change in Law because a Borrower cannot or does not legally or timely do so, the Company shall
indemnify such Foreign Lender or Agent for payment of such Taxes, without duplication of, or
increase in, the amount of Taxes otherwise due to the Foreign Lender.

          (e) In addition, the Company agrees to pay any present or future stamp or documentary taxes
or any other excise or property taxes, charges or similar levies (excluding any income or franchise

 

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taxes, business taxes or capital taxes of any nature) that arise from the execution, delivery
or registration of, or otherwise with respect to, this Agreement (hereinafter referred to as
“Other Taxes”). If a Lender is required to pay directly Other Taxes because a Borrower
cannot or does not legally or timely do so, the Company shall indemnify such Lender for such
payment of Other Taxes.

          (f) Within 30 days after the date of any payment of Taxes or foreign withholding taxes, the
Company shall furnish to the Agent, at its address referred to in Section 8.02, the original or a
certified copy of a receipt evidencing payment thereof. Prior to making any payment hereunder by
or on behalf of any Borrower through an account or branch outside the United States or on behalf of
any Borrower by a payor that is not a United States person (a “Foreign Payment”), such
Borrower shall determine that no foreign withholding taxes are payable in respect thereof, and at
its expense, shall furnish, or shall cause such payor to furnish, to the Agent, at such address, a
certificate from each appropriate taxing authority, or an opinion of counsel acceptable to the
Agent, in either case stating that such Foreign Payment is exempt from or not subject to foreign
withholding taxes. Each Lender shall cooperate with each Borrower’s efforts described in this
subsection by providing to the extent reasonably within its means any forms requested by such
Borrower substantiating an exemption from foreign withholding taxes required by any governmental
agency. For purposes of this subsection (f), the terms “United States” and “United States person”
shall have the meaning specified in Section 7701 of the Internal Revenue Code. If, as a result of
the enactment, promulgation, execution or ratification of, or any change in or amendment to, any
applicable foreign law or any tax treaty (or in the application or official interpretation of any
law or any tax treaty) that occurs on or after the date a tax opinion is rendered pursuant to the
terms of this subsection, and which renders such tax opinion incorrect as to the absence of any
foreign withholding tax (a “Foreign Change in Law”), any Borrower shall be required to
deduct any foreign withholding taxes from or in respect of any Income, then: (i) the sum payable to
the applicable Lender shall be increased as may be necessary so that after making all required
deductions for foreign withholding taxes (including deductions applicable to additional sums
payable under this Section 2.16) such Lender receives an amount equal to the sum it would have
received had no such deductions been made, (ii) such Borrower shall make such deductions and (iii)
such Borrower shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law. Notwithstanding the foregoing, each Borrower shall be
entitled to pay any foreign withholding taxes in any lawful manner so as to reduce any deductions
and such Lender shall to the extent it is reasonably able provide any documentation or file any
forms as may be required by the Internal Revenue Service or any other foreign governmental agency.
In addition, if any Lender is required to pay directly any foreign withholding tax in respect of
any Foreign Payments made pursuant to this Agreement because a Borrower cannot or does not legally
or timely do so, the Company shall indemnify such Lender for payment of such tax.

          (g) For any period with respect to which a Lender has failed to comply with the requirements
of subsection (b) or (f) relating to certain forms intended to reduce withholding taxes (other than
if such failure is due to a Change in Law or a Foreign Change in Law), such Lender shall not be
entitled to indemnification under subsection (d) or (f).

          (h) Upon a Change in Law or the imposition of any foreign withholding tax in respect of
Foreign Payments, a Lender shall, upon the written request of and at the expense of the Company,
use reasonable efforts to change the jurisdiction of its Applicable Lending Office if the making of
such a change would avoid the need for, or reduce the amount of, any such taxes that may thereafter
accrue and would not, in the reasonable judgment of such Lender, cause the imposition on such
Lender of any material legal or regulatory burdens.

          (i) Without prejudice to the survival of any other agreement of any Borrower hereunder, the
agreements and obligations of the Company contained in this Section 2.16 shall survive the payment
in full of principal and interest hereunder until the applicable statute of limitations relating to
the payment of any Taxes under Section 2.16(d) has expired.

 

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          (j) Any request by any Lender for payment of any amount under this Section 2.16 shall be
accompanied by a certification that such Lender’s claim for said amount is generally consistent
with such Lender’s treatment of similarly situated customers of such Lender whose transactions with
such Lender are similarly affected by the change in circumstances giving rise to such payment, but
such Lender shall not be required to disclose any confidential or proprietary information therein.

     SECTION 2.17. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of set-off, or
otherwise) on account of the Revolving Credit Advances owing to it (other than pursuant to
Section 2.07(b), 2.13, 2.16 or 8.04(d)) in excess of its ratable share of payments on
account of the Revolving Credit Advances obtained by all the Lenders, such Lender shall
forthwith purchase from the other Lenders such participations in the Revolving Credit
Advances owing to them as shall be necessary to cause such purchasing Lender to share the
excess payment ratably with each of them; provided, however, that if all or
any portion of such excess payment is thereafter recovered from such purchasing Lender,
such purchase from each Lender shall be rescinded and such Lender shall repay to the
purchasing Lender the purchase price to the extent of such recovery together with an amount
equal to such Lender’s ratable share (according to the proportion of (i) the amount of such
Lender’s required repayment to (ii) the total amount so recovered from the purchasing
Lender) of any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Each Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 2.17 may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of setoff) with
respect to such participation as fully as if such Lender were the direct creditor of such
Borrower in the amount of such participation.

     SECTION 2.18. Use of Proceeds.

     The proceeds of the Advances and the Letters of Credit shall be available (and the Company
agrees that such proceeds shall be used) for general corporate purposes of the Company and its
Subsidiaries, including commercial paper backstop.

     SECTION 2.19. Borrowings by Borrowing Subsidiaries; Substitution of Borrower.

          (a) The Company may, at any time or from time to time, designate one or more Subsidiaries
(including the Guarantor) as Borrowers hereunder by furnishing to the Agent a letter (a
“Designation Letter”) in duplicate, in substantially the form of Exhibit D, duly
completed and executed by the Company and such Subsidiary. Upon any such designation of a
Subsidiary, such Subsidiary shall be a Borrowing Subsidiary and a Borrower entitled to borrow
Revolving Credit Advances and Competitive Bid Advances and to request the issuance of Letters of
Credit on and subject to the terms and conditions of this Agreement.

          (b) If all principal of and interest on all Advances made to any Borrowing Subsidiary have
been paid in full, the Company may terminate the status of such Borrowing Subsidiary as a
Borrower hereunder by furnishing to the Agent a letter (a “Termination Letter”) in
substantially the form of Exhibit F, duly completed and executed by the Company. Any
Termination Letter furnished hereunder shall be effective upon receipt by the Agent, which shall
promptly notify the Lenders, whereupon the Lenders shall, upon payment in full of all amounts
owing by such Borrower hereunder, promptly deliver to the Company (through the Agent) the
promissory notes, if any, of such former Borrower. If at the time of such termination any
Letter of Credit is outstanding for account of such Borrowing Subsidiary, the Company shall,
automatically upon the effectiveness of such termination, be deemed to have assumed, and to have
agreed to pay and perform, as primary obligor, all of the obligations of such Borrowing
Subsidiary hereunder and under any L/C Related Documents relating to such Letter of Credit.
Notwithstanding the foregoing, the delivery of a Termination Letter with respect to any Borrower
shall not terminate (i) any obligation of such Borrower that remains unpaid at the time of such
delivery (including without limitation any obligation arising thereafter in

 

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respect of such Borrower under Section 2.13 or 2.16) or (ii) the obligations of the Company
under Article IX with respect to any such unpaid obligations; provided, that if the
status of such Borrowing Subsidiary has been terminated as aforesaid because the Company has
sold or transferred its interest in such Subsidiary, and the Company so certifies to the Agent
at the time of delivery of such Termination Letter, and subject to payment of said principal and
interest, (i) such Subsidiary shall, automatically upon the effectiveness of the delivery of
such Termination Letter and certification, cease to have any obligation under this Agreement and
(ii) the Company shall automatically be deemed to have unconditionally assumed, as primary
obligor, and hereby agrees to pay and perform, all of such obligations.

          (c) In addition to the foregoing, the Company may, at any time when there are no Advances
outstanding hereunder and upon not less than 10 Business Days’ notice, irrevocably elect to
terminate its right to be a Borrower hereunder as of the date (which shall be a Business Day)
specified in such Substitution Letter (the “Substitution Date”) and designate the
Guarantor as a Borrower hereunder by furnishing to the Agent (x) a letter (a “Substitution
Letter”), in substantially the form of Exhibit E duly completed and executed by the Company
and the Guarantor, (y) a certificate signed by a duly authorized officer of the Company, and a
certificate signed by a duly authorized officer of the Guarantor, each dated the Substitution
Date, stating that:

     (i) the representations and warranties contained in Section 4.01 (except the
representations set forth in the last sentence of subsection

 (e) thereof and in subsection
(f) thereof (other than clause (ii) thereof)) are correct in all material respects on and as
of the Substitution Date, as though made on and as of such date, and

     (ii) no event has occurred and is continuing, or would result from such designation,
that constitutes a Default;

and (z) such other corporate documents, resolutions and legal opinions relating to the foregoing
as the Agent, or any Lender through the Agent, may reasonably request. If at the time of such
termination any Letter of Credit is outstanding for the account of the Company, the Guarantor
shall, automatically upon the effectiveness of such termination, be deemed to have assumed, and to
have agreed to pay and perform, as primary obligor, all of the obligations of the Company hereunder
and under all L/C Related Documents relating to such Letter of Credit.

     SECTION 2.20. Mitigation Obligations. If any Lender requests compensation
under Section 2.13, or if the obligation of any Lender to make or continue Advances as, or
Convert Advances into, Eurodollar Rate Advances is suspended pursuant to Section 2.14,
then, upon the written request of the Company, such Lender shall use reasonable efforts to
designate a different lending office for funding or booking its Advances hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the judgment of such Lender, such designations or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 2.13 or would cause such Lender not
to be subject to such suspension, as the case may be, in the future and (ii) would not
subject such Lender to any unreimbursed cost or expense and would not, in the reasonable
judgment of such Lender, cause imposition on such Lender of any material legal or
regulatory burdens or otherwise be disadvantageous to such Lender. The Company hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with
any such designation or assignment.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND ARTICLE II

     SECTION 3.01. Conditions Precedent to Effective Date. This Agreement (and
the amendment and restatement of the Existing Credit Agreement to be effected hereby), and
the obligations of the Lenders to make Loans and of the Issuing Lenders to issue Letters of
Credit

 

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hereunder, shall become effective on the date on which the following conditions
precedent have been satisfied:

          (a) As of the Effective Date, there shall have occurred no Material Adverse Change since
December 30, 2006 that has not been publicly disclosed.

          (b) As of the Effective Date, there shall exist no action, suit, investigation, litigation or
proceeding affecting the Company, or any of its Subsidiaries (including the Guarantor) pending or,
to the knowledge of the Company’s or the Guarantor’s executive officers, threatened before any
court, governmental agency or arbitrator that (i) could be reasonably likely to have a Material
Adverse Effect or (ii) could reasonably be likely to affect the legality, validity or
enforceability of this Agreement or the consummation of the transactions contemplated hereby.

          (c) As of the Effective Date, nothing shall have come to the attention of the Lenders during
the course of their due diligence investigation to lead them to believe that the Information
Memorandum was or has become misleading, incorrect or incomplete in any material respect.

          (d) As of the Effective Date, all governmental and third party consents and approvals
necessary in connection with the transactions contemplated hereby shall have been obtained (without
the imposition of any conditions that are not acceptable to the Lenders) and shall remain in
effect.

          (e) As of the Effective Date, the Company shall have paid all accrued fees and, to the extent
invoiced, expenses of the Agent and the Lenders payable hereunder (including the accrued fees and
expenses of counsel to the Agent, to the extent invoiced at least one Business Day prior to the
Effective Date).

          (f) On the Effective Date, the following statements shall be true and the Agent shall have
received a certificate signed by a duly authorized officer of the Company dated the Effective Date,
stating that:

     (i) The representations and warranties contained in Section 4.01 are correct in all
material aspects on and as of the Effective Date, and

     (ii) No event has occurred and is continuing that constitutes a Default.

          (g) The Agent shall have received on or before the Effective Date the following, each dated
such day, in form and substance satisfactory to the Agent and (except for any notes requested by
the Lenders):

     (i) To the extent any Lender shall have requested at least one Business day prior to
the Effective Date that its Revolving Credit Advances be evidenced by a promissory note, a
note payable to the order of such Lender.

     (ii) Certified copies of the resolutions of the Board of Directors of the Company and
of the Guarantor approving this Agreement, and of all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to this Agreement.

     (iii) A certificate of the Secretary or an Assistant Secretary of the Company
certifying the names and true signatures of the officers of the Company authorized to sign
this Agreement and the other documents to be delivered hereunder.

     (iv) A certificate of the Secretary or an Assistant Secretary of the Guarantor
certifying the names and true signatures of the officers of the Guarantor authorized to sign
this Agreement and the other documents to be delivered hereunder.

 

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     (v) An opinion of Cravath, Swaine & Moore LLP, special New York counsel to the Company
and the Guarantor, substantially in the form of Exhibit C-1 hereto and an opinion of the
Assistant General Counsel of each of the Company and the Guarantor, substantially in the
form of Exhibit C-2, and as to such other matters as the Agent may reasonably request.

     (vi) A favorable opinion of Milbank, Tweed, Hadley & McCloy LLP, special New York
counsel for the Agent, substantially in the form of Exhibit C-3 hereto.

     (vii) Evidence that the commitments under the 5-Year Credit Agreement with the
Borrower dated as of April 28, 2004, as amended, supplemented and modified (the
“Existing 2004 Credit Agreement”) shall have been terminated and the principal and
interest of the outstanding loans, and all fees and other amounts owing thereunder, shall
have been paid in full.

     (viii) Evidence that all principal, interest and other amounts owing by the Borrowers
under the Existing Credit Agreement to any lender thereunder that is not a Lender hereunder
shall have been (or shall simultaneously be) paid in full and all commitments to extend
credit thereunder of any such lender shall have been terminated, in each case in a manner
satisfactory to the Agent.

     SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing and Letter
of Credit Issuance. The obligation of each Lender to make a Revolving Credit Advance
on the occasion of each Revolving Credit Borrowing and of an Issuing Lender to issue any
Letter of Credit shall be subject to the conditions precedent that the Effective Date shall
have occurred and on the date of such Revolving Credit Borrowing or issuance (a) the
following statements shall be true (and each of the giving of the applicable Notice of
Revolving Credit Borrowing and the acceptance by any Borrower of the proceeds of such
Revolving Credit Borrowing or of the benefit of issuance of such Letter of Credit shall
constitute a representation and warranty by the Company and such Borrower that on the date
of such Borrowing or issuance such statements are true):

     (i) The representations and warranties contained in Section 4.01 (except the
representations set forth in the last sentence of subsection (e) thereof and in subsection
(f) thereof (other than clause (ii) thereof)) are correct in all material respects on and as
of the date of such Revolving Credit Borrowing or issuance, before and after giving effect
to such Revolving Credit Borrowing or issuance and to the application of the proceeds
therefrom, as though made on and as of such date, and

     (ii) No event has occurred and is continuing, or would result from such Revolving
Credit Borrowing or issuance or from the application of the proceeds therefrom, that
constitutes a Default;

and (b) in the case of the first Borrowing by or issuance of a Letter of Credit for account of a
Borrowing Subsidiary, the Agent shall have received such corporate documents, resolutions and legal
opinions relating to such Borrowing Subsidiary as the Agent may reasonably require.

     SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing. The
obligation of each Lender that is to make a Competitive Bid Advance on the occasion of a
Competitive Bid Borrowing to make such Competitive Bid Advance as part of such Competitive
Bid Borrowing is subject to the conditions precedent that (i) the Agent shall have received
the written confirmatory Notice of Competitive Bid Borrowing with respect thereto, and (ii)
on the date of such Competitive Bid Borrowing the following statements shall be true (and
each of the giving of the applicable Notice of Competitive Bid Borrowing and the acceptance
by any Borrower of the proceeds of such Competitive Bid Borrowing shall constitute a
representation and

 

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warranty by the Company and such Borrower that on the date of such Competitive Bid
Borrowing such statements are true):

          (a) The representations and warranties contained in Section 4.01 (except the representations
set forth in the last sentence of subsection (e) thereof and in subsection (f) thereof (other than
clause (ii) thereof)) are correct in all material respects on and as of the date of such
Competitive Bid Borrowing, before and after giving effect to such Competitive Bid Borrowing and to
the application of the proceeds therefrom, as though made on and as of such date; and

          (b) No event has occurred and is continuing, or would result from such Competitive Bid
Borrowing or from the application of the proceeds therefrom, that constitutes a Default.

     SECTION 3.04. Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender shall be deemed to
have consented to, approved or accepted or to be satisfied with each document or other
matter required thereunder to be consented to or approved by or acceptable or satisfactory
to the Lenders unless an officer of the Agent responsible for the transactions contemplated
by this Agreement shall have received notice from such Lender prior to the proposed
Effective Date, as notified by the Company to the Lenders, specifying its objection
thereto. The Agent shall promptly notify the Lenders of the occurrence of the Effective
Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES

     SECTION 4.01. Representations and Warranties of the Loan Parties. Each of
the Company and the Guarantor (each, a “Loan Party”) represents and warrants as
follows:

          (a) The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware and the Guarantor is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Delaware.

          (b) The execution, delivery and performance by each Loan Party of this Agreement and the
consummation of the transactions contemplated hereby are within such Loan Party’s powers, have been
duly authorized by all necessary corporate or other action on its part, and do not contravene (i)
its charter, by-laws or other organizational documents or (ii) any law or contractual restriction
binding on or materially affecting such Loan Party.

          (c) No authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body or any other third party is required for the due
execution, delivery and performance by either Loan Party of this Agreement.

          (d) This Agreement has been duly executed and delivered by each Loan Party. This Agreement
is the legal, valid and binding obligation of each Loan Party enforceable against it in accordance
with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally and equitable principles of general applicability.

          (e) The Consolidated balance sheet of the Company and its Subsidiaries as at December 30,
2006, and the related Consolidated statements of operations and cash flows of the Company and its
Subsidiaries for the fiscal year then ended, accompanied by an opinion of Deloitte & Touche,
independent public accountants, fairly present the Consolidated financial condition of the Company
and its Subsidiaries as at such date and the Consolidated results of the operations of the Company
and its Subsidiaries for the period ended on such date, all in accordance with generally accepted
accounting principles consistently applied. Since December 30, 2006, there has been no Material
Adverse Change that has not been publicly disclosed.

 

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          (f) There is no action, suit, investigation, litigation or proceeding pending against or, to
the knowledge of either Loan Party, threatened against or affecting such Loan Party before any
court, governmental agency or arbitrator that (i) is reasonably likely to have a Material Adverse
Effect or (ii) would reasonably be likely to affect the legality, validity or enforceability of
this Agreement or any promissory note issued under this Agreement, if any, or the consummation of
the transactions contemplated hereby.

          (g) It is not engaged in the business of extending credit for the purpose of purchasing or
carrying Margin Stock and no proceeds of any Advance, and no Letter of Credit, will be used for the
purpose (whether immediate, incidental or ultimate) of buying or carrying any Margin Stock or to
extend credit to others for the purpose (whether immediate, individual or ultimate) of buying or
carrying any Margin Stock, in either case in a manner that would cause the Advances or the L/C
Payments or any Lender to be in violation of Regulation U.

          (h) Following application of the proceeds of each Advance and the making of each L/C Payment,
not more than 25 percent of the value of the assets (either of any Borrower only or of the Company
and its Subsidiaries or the Guarantor and its Subsidiaries, in each case on a Consolidated basis)
subject to the provisions of Section 5.02(a) or (b)(ii) or subject to any restriction contained in
any agreement or instrument between it and any Lender or any Affiliate of any Lender relating to
Debt and within the scope of Section 6.01(d) will be Margin Stock.

          (i) Neither Loan Party is an “investment company”, a company “controlled by”, or “promoter”
or “principal underwriter” for, an “investment company”, as such terms are defined in the
Investment Company Act of 1940, as amended. Neither the making of any Advances nor the making of
any L/C Payment nor the application of the proceeds or repayment thereof by any Borrower will
violate any provision of such Act or any rule, regulation or order of the Securities and Exchange
Commission thereunder.

ARTICLE V

COVENANTS

     SECTION 5.01. Affirmative Covenants. So long as any Advance or L/C
Reimbursement Obligation shall remain unpaid, any Letter of Credit shall be outstanding or
any Lender shall have any Commitment hereunder, each Loan Party will:

          (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply,
in all material respects, with all applicable laws, rules, regulations and orders, such compliance
to include, without limitation, compliance with ERISA and Environmental Laws, except where failure
to so comply would not, and would not be reasonably likely to, have a Material Adverse Effect.

          (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its Subsidiaries to
pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and
governmental charges or levies imposed upon it or upon its property and (ii) all lawful claims
that, if unpaid, might by law become a Lien upon its property; provided, however,
that neither Loan Party nor any of its Subsidiaries shall be required to pay or discharge any such
tax, assessment, charge, levy or claim that is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained, unless and until any Lien
resulting therefrom attaches to its property and becomes enforceable against its other creditors
and such Lien would be reasonably likely to have a Material Adverse Effect.

          (c) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each
of its Material Subsidiaries to preserve and maintain, its corporate existence, rights (charter and
statutory) and franchises; provided, however, that (i) each Loan Party and its
Material Subsidiaries may consummate any merger or consolidation that it is not prohibited from
consummating under Section

 

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5.02(b), (ii) neither Loan Party nor any of its Material Subsidiaries shall be required to
preserve or maintain any right or franchise if the preservation or maintenance thereof is no longer
desirable in the conduct of the business of such Loan Party or such Subsidiary, as the case may be,
and the loss thereof is not disadvantageous in any material respect to the Loan Parties and the
Material Subsidiaries, taken as a whole, or the Lenders and (iii) neither Loan Party nor any of its
Material Subsidiaries shall be required to preserve or maintain the corporate existence of any
Material Subsidiary if the preservation or maintenance thereof is no longer desirable in the
context of the business of the Loan Parties and the Material Subsidiaries, taken as a whole, and
the loss thereof is not disadvantageous in any material respect to the Loan Parties and the
Material Subsidiaries, taken as a whole, or the Lenders.

          (d) Reporting Requirements. Furnish to the Lenders:

     (i) as soon as available and in any event within 45 days after the end of each of the
first three Fiscal Quarters of each Fiscal Year of the Company, the Consolidated balance
sheet of the Company and its Subsidiaries as of the end of such quarter and Consolidated
statements of operations and cash flows of the Company and its Subsidiaries for the period
commencing at the end of the previous Fiscal Year and ending with the end of such Fiscal
Quarter, duly certified (subject to year-end audit adjustments) by the chief financial
officer of the Company as having been prepared in accordance with GAAP, it being agreed that
delivery of the Company’s Quarterly Report on Form 10-Q will satisfy this requirement;

     (ii) as soon as available and in any event within 90 days after the end of each Fiscal
Year of the Company, a copy of the annual audit report for such year for the Company and its
Subsidiaries, containing the Consolidated balance sheet of the Company and its Subsidiaries
as of the end of such Fiscal Year and Consolidated statements of operations and cash flows
of the Company and its Subsidiaries for such Fiscal Year, in each case accompanied by an
opinion by Deloitte & Touche or other independent public accountants of nationally
recognized standing, it being agreed that delivery of the Company’s Annual Report on Form
10-K will satisfy this requirement;

     (iii) as soon as possible and in any event within five days after obtaining knowledge
of each Default continuing on the date of such statement, a statement of the chief financial
officer of the Company setting forth details of such Default and the action that the Company
has taken and proposes to take with respect thereto; and

     (iv) promptly after the sending or filing thereof, copies of all annual reports and
proxy solicitations that the Company sends to any of its securityholders, and copies of all
reports on Form 8-K that the Company or any Subsidiary files with the Securities and
Exchange Commission.

     SECTION 5.02. Negative Covenants. So long as any Advance or L/C
Reimbursement Obligation shall remain unpaid, any Letter of Credit shall be outstanding or
any Lender shall have any Commitment hereunder, neither Loan Party will:

          (a) Secured Debt. Create or suffer to exist, or permit any of its Restricted
Subsidiaries or the Guarantor to create or suffer to exist, any Debt secured by a Lien on any
Principal Property or on any shares of stock of or Debt of any Restricted Subsidiary or the
Guarantor unless such Loan Party or such Restricted Subsidiary secures or causes such Restricted
Subsidiary or the Guarantor to secure the Advances and all other amounts payable under this
Agreement equally and ratably with such secured Debt, so long as such secured Debt shall be so
secured, unless after giving effect thereto the aggregate amount of all such Debt so secured does
not exceed 15% of Consolidated Net Tangible Assets; provided that the foregoing restriction
does not apply to Debt secured by:

     (i) Liens existing prior to the Original Closing Date;

 

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     (ii) Liens on property of, or on shares of stock of or Debt of, any corporation
existing at the time such corporation becomes a Restricted Subsidiary and not created with a
view to circumventing the restrictions of this Section 5.02(a);

     (iii) Liens in favor of a Loan Party or any Restricted Subsidiary;

     (iv) Liens in favor of any governmental bodies to secure progress or advance payments;

     (v) Liens on property, shares of stock or Debt existing at the time of acquisition
thereof (including acquisition through merger or consolidation) or liens securing Debt
incurred to finance all or any part of the purchase price or cost of construction of
property (or additions, substantial repairs, alterations or substantial improvements
thereto), provided that such Lien and the Debt secured thereby are incurred within 365 days
of the later of acquisition or completion of construction (or addition, repair, alteration
or improvement) and full operation thereof; and

     (vi) any extension, renewal or refunding of Debt referred to in the foregoing clauses
(i) to (v), inclusive.

          (b) Mergers, Etc. (i) Merge or consolidate with or into any corporation or (ii)
sell, lease, transfer or otherwise dispose of all or substantially all of the assets of the Company
and its Subsidiaries, taken as a whole, unless the Company or the Guarantor would be the acquiring
or surviving party in such transaction and no Event of Default shall have occurred and be
continuing at the time of such proposed transaction or would result therefrom.

          (c) Subsidiary Debt. Permit any Restricted Subsidiary to create, incur, assume or
permit to exist any Debt, except:

     (i) Debt of the Borrowing Subsidiaries, if any, created hereunder;

     (ii) Debt existing on the Original Closing Date;

     (iii) Debt of any Subsidiary to any Loan Party or any other Subsidiary;

     (iv) Debt of any Person that becomes a Subsidiary after the Original Closing Date;
provided that such Debt exists at the time such Person becomes a Subsidiary and is
not created in contemplation of or in connection with such Person becoming a Subsidiary;

     (v) any refinancing, refunding or replacement of any Debt permitted under clause (ii)
through (iv) above; and

     (vi) other Debt in an aggregate principal amount that, at the time of and after giving
effect to the incurrence thereof, does not result in the aggregate outstanding principal
amount of all Debt created, incurred, assumed or permitted to exist in reliance on this
clause (vi) exceeding 15% of Consolidated Net Tangible Assets, computed as of the last day
of the then most recently concluded Fiscal Quarter.

          (d) Restrictive Agreements. Enter into, incur or permit to exist any agreement or
other arrangement that prohibits or restricts the ability of any Subsidiary to pay dividends or
other distributions with respect to any shares of its capital stock or to make or repay loans or
advances to, or otherwise transfer assets to the Company; provided that the foregoing shall
not apply to (i) restrictions and conditions imposed by law or by this Agreement, (ii) customary
restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be
sold and such sale is permitted hereunder, (iii) restric-

 

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tions or conditions imposed by any agreement relating to secured Debt permitted by this
Agreement if such restrictions or conditions apply only to the property or assets securing such
Debt, (iv) customary provisions in leases and other contracts restricting the assignment thereof,
(v) any agreement in effect on the Original Closing Date, as any such agreement is in effect on
such date, (vi) any agreement binding upon such Subsidiary prior to the date on which such
Subsidiary was acquired by the Company and outstanding on such date, (vii) customary net worth and
other financial maintenance covenants in an agreement relating to Debt or other obligations
incurred in compliance with this Agreement, and (viii) any agreement refinancing, renewing or
replacing any agreement or Debt referred to in (i) through (vii) above, provided that the relevant
provisions are no more restrictive than those in the agreement or Debt being refinanced, renewed or
replaced.

          (e) Ownership. In the case of the Company, cease to own, legally and beneficially,
75% or more of the membership interests in the Guarantor.

     SECTION 5.03. Financial Covenants. So long as any Advance or L/C
Reimbursement Obligation shall remain unpaid, any Letter of Credit shall be outstanding or
any Lender shall have any Commitment hereunder, the Company will not:

          (a) Debt to Capitalization Ratio. Permit the Debt to Capitalization Ratio as at the
last day of any Fiscal Quarter that is not an Alternate Covenant Date to exceed 0.75 to 1.0.

          (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as at the
last day of any Fiscal Quarter that is an Alternate Covenant Date to exceed 5.0 to 1.0.

ARTICLE VI

EVENTS OF DEFAULT

     SECTION 6.01. Events of Default. If any of the following events (“Events
of Default”) shall occur and be continuing:

          (a) Any Borrower shall fail to pay any principal of any Advance or to reimburse in full any
L/C Payment in each case within five days after the same becomes due and payable; or any Borrower
shall fail to pay any interest, fees or any other amount under this Agreement within five Business
Days after the same becomes due and payable; or

          (b) Any representation or warranty made by any Loan Party herein or by any Borrower (or any
of its officers) in connection with this Agreement (including without limitation by any Borrowing
Subsidiary pursuant to any Designation Letter) shall prove to have been incorrect in any material
respect when made; or

          (c) (i) Any Loan Party shall fail to perform or observe any term, covenant or agreement
contained in Section 5.01(d)(iii), 5.02 or 5.03, or (ii) any Loan Party shall fail to perform or
observe any other term, covenant or agreement contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied for 30 days after written notice
thereof shall have been given to either Loan Party by the Agent or any Lender; or

          (d) Any Loan Party or any of its Subsidiaries shall fail to pay any principal of or premium
or interest on any Debt that is outstanding in a principal or notional amount of at least
$75,000,000 in the aggregate (but excluding Debt outstanding hereunder) of such Loan Party or such
Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or instrument relating to
such Debt; or any other event shall occur or condition shall exist under any agreement or
instrument relating to any such Debt and shall continue after the applicable grace period, if any,
specified in such agreement or

 

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instrument, if the effect of such event or condition is to accelerate the maturity of such
Debt or permit (with or without the giving of notice, the lapse of time or both) the holder or
holders of such Debt or any trustee or agent on its or their behalf to cause any such Debt to
become due prior to its scheduled maturity; or any such Debt shall be declared to be due and
payable, or required to be prepaid or redeemed (other than by a regularly scheduled required
prepayment or redemption), purchased or defeased, or an offer to prepay, redeem, purchase or
defease such Debt shall be required to be made, in each case prior to the stated maturity thereof;
or

          (e) Any Loan Party or any of its Material Subsidiaries shall generally not pay its debts as
such debts become due, or shall admit in writing its inability to pay its debts generally, or shall
make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against such Loan Party or any of its Material Subsidiaries seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee, custodian or other similar official for it or for any substantial part of
its property and, in the case of any such proceeding instituted against it (but not instituted by
it), such proceeding shall remain undismissed or unstayed for a period of 30 days, or any of the
actions sought in such proceeding (including, without limitation, the entry of an order for relief
against, or the appointment of a receiver, trustee, custodian or other similar official for, it or
for any substantial part of its property) shall occur; or such Loan Party of any of its Material
Subsidiaries shall take any corporate action to authorize any of the actions set forth above in
this subsection (e); or

          (f) Any judgment or order for the payment of money in excess of $75,000,000 shall be rendered
against any Loan Party or any of its Material Subsidiaries and either (i) enforcement proceedings
shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any
period of 30 consecutive days during which a stay of enforcement of such judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect; provided, however,
that any such judgment or order shall not be an Event of Default under this Section 6.01(f) if and
for so long as (i) the amount of such judgment or order is covered by a valid and binding policy of
insurance between the defendant and the insurer covering payment thereof and (ii) such insurer,
which shall be rated at least “A” by A.M. Best Company, has been notified of, and has not disputed
the claim made for payment of, the amount of such judgment or order; or

          (g) Any event, action or condition with respect to an employee benefit plan of the Company
subject to Title IV of ERISA results in any penalty or action pursuant to ERISA that has a material
adverse effect on the business or financial condition of the Company and its Subsidiaries, taken as
a whole; or

          (h) The Master Bottling Agreement ceases to be valid and binding and in full force and
effect; or Pepsi denies that it has any liability or obligation under the Master Bottling Agreement
and Pepsi ceases performance thereunder; or

     (i) A Change of Control shall occur;

then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Company, declare the obligation of each Lender to make Advances
and of the Issuing Lenders to issue Letters of Credit to be terminated, whereupon the same shall
forthwith terminate, and (ii) shall at the request, or may with the consent, of the Required
Lenders, by notice to the Company, declare the Advances, all interest thereon and all other amounts
payable under this Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly waived by the
Company and (iii) demand cash cover for the full amount of the Aggregate L/C Exposure;
provided, however, that in the event of an actual or deemed entry of an order for
relief with respect to any Loan Party or any Borrowing Subsidiary under the Federal Bankruptcy

 

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Code, (A) the obligation of each Lender to make Advances and of each Issuing Lender to issue
Letters of Credit shall automatically be terminated and (B) the Advances, all such interest and all
such amounts shall automatically become and be due and payable, and the Company shall automatically
become obligated to provide such cash cover, all without presentment, protest or any notice of any
kind, all of which are hereby expressly waived by each Loan Party.

ARTICLE VII

THE AGENT

     SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as Agent on its behalf and to exercise such powers
under this Agreement as are delegated to the Agent by the terms hereof, together with such
powers as are reasonably incidental thereto. As to any matters not expressly provided for
by this Agreement (including, without limitation, enforcement or collection of the
promissory notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be fully
protected in so acting or refraining from acting) upon the instructions of the Required
Lenders, and such instructions shall be binding upon all Lenders and all holders of
promissory notes; provided, however, that the Agent shall not be required
to take any action which exposes the Agent to personal liability or which is contrary to
this Agreement or applicable law. The Agent agrees to give to each Lender prompt notice of
each notice given to it by any Borrower pursuant to the terms of this Agreement.

     SECTION 7.02. Agent’s Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable to the Lenders for any action
taken or omitted to be taken by it or them under or in connection with the Loan Documents,
except for its or their own gross negligence or willful misconduct. Without limitation of
the generality of the foregoing, the Agent: (i) may treat the payee of any promissory note
as the holder thereof until the Agent receives and accepts an Assignment and Acceptance
entered into by the Lender which is the payee of such promissory note, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult with legal
counsel (including counsel for a Borrower), independent public accountants and other
experts selected by it and shall not be liable to the Lenders for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (iii) makes no warranty or representation to any Lender and shall
not be responsible to any Lender for any statements, warranties or representations (whether
written or oral) made in or in connection with this Agreement; (iv) shall not have any duty
to ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Agreement on the part of any Borrower; or to inspect the
property (including the books and records) of any Borrower; (v) shall not be responsible
to any Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document furnished
pursuant hereto; and (vi) shall incur no liability to the Lenders under or in respect of
this Agreement by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telecopier, telegram, cable, telex or email) believed by it to be
genuine and signed or sent by the proper party or parties.

     SECTION 7.03. Citibank and Affiliates. With respect to its Commitment, the
Advances made by it, and any Letters of Credit issued by it as Issuing Lender and the
promissory notes issued to it, Citibank shall have the same rights and powers under this
Agreement as any other Lender and/or Issuing Lender and may exercise the same as though it
were not the Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly
indicated, include Citibank in its individual capacity. Citibank and its Affiliates may
accept deposits from, lend money to, act as trustee under indentures of, and generally
engage in any kind of business with any Borrower and any Person who may do business with or
own securities of any Borrower, all as if Citibank were not the Agent and without any duty
to account therefor to the Lenders or Issuing Lenders.

     SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender and based on the

 

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financial statements referred to in Section 4.01 and such other documents and
information as it has deemed appropriate, made its own credit analysis and decision to
enter into this Agreement. Each Lender and each Issuing Lender also acknowledges that it
will, independently and without reliance upon the Agent or any other Lender and based on
such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under this Agreement.

     SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent (to
the extent not reimbursed by the Company) and all Related Parties ratably according to
their respective Applicable Percentages from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Agent in any way relating to or arising out of this Agreement or any
action taken or omitted by the Agent under this Agreement, provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the
Agent’s gross negligence or willful misconduct. Without limiting the foregoing, each
Lender agrees to reimburse the Agent promptly upon demand for its ratable share of any
out-of-pocket expenses (including counsel fees) incurred by the Agent in connection with
the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, to the extent that
the Agent is not reimbursed for such expenses by the Company.

     SECTION 7.06. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Company and may be removed at any time with
or without cause by the Required Lenders. Upon any such resignation or removal, the
Required Lenders shall have the right to appoint a successor Agent that, unless an Event of
Default shall have occurred and then be continuing, is reasonably acceptable to the
Company. If no successor Agent shall have been so appointed by the Required Lenders, and
shall have accepted such appointment, within 30 days after the retiring Agent’s giving of
notice of resignation or the Required Lenders’ removal of the retiring Agent, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which shall,
unless an Event of Default shall have occurred and then be continuing, be reasonably
acceptable to the Company, and shall be a commercial bank organized under the laws of the
United States of America or of any State thereof and having total assets of at least
$1,000,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor
Agent, such successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall
be discharged from its duties and obligations under this Agreement. After any retiring
Agent’s resignation or removal hereunder as Agent, the provisions of this Article VII shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.

     SECTION 7.07. Arrangers, Etc. None of the Persons identified on the cover
page hereof as joint lead arrangers and book managers, syndication agents or documentation
agents shall, in their roles as such, have any responsibilities or liabilities under this
Agreement.

ARTICLE VIII

MISCELLANEOUS

     SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement, nor consent to any departure by any Borrower therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall (a) unless in
writing and signed by each Lender affected thereby, do any of the following: (i) except pursuant
to Section 2.07(b), 2.07(c), 2.17 or 2.19, increase the Commitments of the Lenders or subject the
Lenders to any additional obligations, (ii) reduce the principal of, or interest on, the Revolving
Credit Advances or any fees or other amounts payable

 

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hereunder, (iii) postpone any date fixed for any payment of principal of, or interest on, the
Revolving Credit Advances or any fees or other amounts payable hereunder, and (b) unless in writing
and signed by all of the Lenders, do any of the following: (i) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Revolving Credit Advances, or the
number of Lenders, that shall be required for the Lenders or any of them to take any action
hereunder, (ii) release the guarantee as set forth in Section 9.01 or 10.01, or (iii) amend this
Section 8.01; and provided further that no amendment, waiver or consent shall,
unless in writing and signed by the Agent in addition to the Lenders required above to take such
action, affect the rights or duties of the Agent under this Agreement, and no amendment, waiver or
consent shall modify the rights or obligations of any Issuing Lender without the written consent of
such Issuing Lender.

     SECTION 8.02. Notices, Etc. (a) Subject to clauses (b) through (e) below, all
notices and other communications provided for hereunder shall be in writing (including telecopier)
and mailed, telecopied, emailed or delivered by hand:

          (i) if to the Company, any Borrower or the Guarantor, to the Company at its address
at:

The Pepsi Bottling Group, Inc.

One Pepsi Way

Somers, New York 10589

Attention: General Counsel

Telecopier No. (914) 767-1161

with a copy to Secretary

Telecopier No. (914) 767-1161

          (ii) if to the Agent:

Citibank, N.A.

2 Penns Way, Suite 200

New Castle, Delaware 19720

Attention: Annisa Partee

Telephone No.: 302-894-6179

Telecopier No.: 212-994-1410

          (iii) if to any Lender, at the office of such Lender specified in its Administrative
Questionnaire;

or, as to the Company or the Agent, at such other address as shall be designated by such party in a
written notice to the other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Company and the Agent. All such notices and
communications shall be deemed to have been duly given or made (i) in the case of hand deliveries,
when delivered by hand, (ii) in the case of mailed notices, three Business Days after being
deposited in the mail, postage prepaid, and (iii) in the case of telecopier or email notice, when
transmitted and confirmed during normal business hours (or, if delivered after the close of normal
business hours, at the beginning of business hours on the next Business Day), except that notices
and communications to the Agent pursuant to Article II or VII shall not be effective until received
by the Agent.

          (b) The Company (on behalf of itself and the Borrowing Subsidiaries) hereby agrees that it
will provide to the Agent all information, documents and other materials that it is obligated to
furnish to the Agent pursuant to this Agreement, including, without limitation, all notices,
requests, financial statements, financial and other reports, certificates and other information
materials, but excluding any such communication that (i) relates to the payment of any principal or
other amount due under this Agreement prior to the scheduled date therefor, (ii) provides notice of
any Default or Event of Default

 

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under this Agreement, (iii) is required to be delivered to satisfy any condition precedent to the
occurrence of the Effective Date and/or any Revolving Credit Borrowing (all such non-excluded
communications being referred to herein collectively as “Communications”), by (x)
transmitting the Communications in an electronic/soft medium in a format acceptable to the Agent to
oploanswebadmin@citigroup.com, (y) filing such Communications with the Securities and Exchange
Commission via the EDGAR filing system or (z) making such Communications available to the Agent on
the Company’s website, in addition to any other method of delivery permitted by this Agreement.

          (c) The Company further agrees that the Agent may make the Communications available to the
Lenders by posting the Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”). THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”.
THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE
COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR
OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE
AGENT OR ANY OF ITS RELATED PARTIES (COLLECTIVELY, THE “AGENT PARTIES”) HAVE ANY LIABILITY
TO ANY BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING,
WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR
EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF SUCH BORROWER’S OR THE AGENT’S
TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY
AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO
HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

          (d) The Agent agrees that (i) the receipt of the Communications by the Agent at its e-mail
address set forth above, (ii) the filing of the Communications with the Securities and Exchange
Commission via the EDGAR filing system and (iii) the making available of such Communications to the
Agent on the Company’s website, shall each constitute effective delivery of the Communications to
the Agent for purposes of this Agreement (and in the case of sub-paragraphs (ii) and (iii) hereof,
after the Company has provided the Agent with an electronic link to such Communications or notified
the Agent of such posting). Each Lender and Issuing Lender agrees that notice to it (as provided
in the next sentence) specifying that the Communications have been posted to the Platform shall
constitute effective delivery of the Communications to such Lender for purposes of this Agreement.
Each Lender and Issuing Lender agrees (i) to provide to the Agent in writing (including by
electronic communication), promptly after the date of this Agreement, an e-mail address to which
the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may
be sent to such e-mail address.

          (e) Nothing herein shall prejudice the right of the Agent or any Lender to give any notice or
other communication pursuant to this Agreement in any other manner specified in this Agreement.

     SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender or
the Agent to exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

     SECTION 8.04. Costs and Expenses.

 

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          (a) The Company agrees to pay on demand all costs and expenses of the Agent as set forth in
the fee letter between the Company and the Agent. The Company further agrees to pay on
demand all reasonable costs and expenses of the Agent and the Lenders, if any (including,
without limitation, reasonable counsel fees and expenses), in connection with the enforcement
(whether through negotiations, legal proceedings or otherwise) of this Agreement and the other
documents to be delivered hereunder, including, without limitation, reasonable fees and expenses of
counsel for the Agent and each Lender in connection with the enforcement of rights under this
Section 8.04(a).

          (b) The Company agrees to indemnify and hold harmless the Agent and each Lender and each of
their Affiliates and their officers, directors, employees, agents and advisors (each, an
“Indemnified Party”) from and against any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) that may be
incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of, or in connection with the preparation for a defense of, any
investigation, litigation or proceeding arising out of, related to or in connection with this
Agreement, any promissory note issued hereunder, any of the transactions contemplated herein or the
actual or proposed use of the proceeds of the Advances, whether or not such investigation,
litigation or proceeding is brought by any Borrower, the Guarantor, their directors, shareholders
or creditors or an Indemnified Party or any other Person or any Indemnified Party is otherwise a
party thereto and whether or not the transactions contemplated hereby are consummated, except to
the extent such claim, damage, loss, liability or expense resulted primarily from the gross
negligence or willful misconduct of such Indemnified Party or any of its Affiliates (or any of
their respective officers, directors, employees, agents or advisers). In no event shall any party
hereto be liable on any theory of liability for any special, indirect, consequential or punitive
damages (including, without limitation, any loss of profits, business or anticipated savings).

          (c) To the extent that the Company fails to pay any amount required to be paid by it to the
Agent under paragraph (a) or (b) of this Section 8.04, each Lender severally agrees to pay to the
Agent such Lender’s Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that
the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the
case may be, was incurred by or asserted against the Agent in its capacity as such.

          (d) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance or LIBO
Rate Advance is made by any Borrower to or for the account of a Lender other than on the last day
of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section
2.10(d) or (e), 2.12 or 2.14, acceleration of the maturity of the Advances pursuant to Section 6.01
or for any other reason, the Company shall, upon demand by such Lender (with a copy of such demand
to the Agent), pay to the Agent for the account of such Lender any amounts required to compensate
such Lender for any additional losses, costs or expenses that it may reasonably incur as a result
of such payment or Conversion, including, without limitation, any loss, cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund
or maintain such Advance.

          (e) Without prejudice to the survival of any other agreement of any Borrower hereunder, the
agreements and obligations of the Company contained in Sections 2.13, 2.16 and 8.04 shall survive
the payment in full of principal, interest and all other amounts payable hereunder.

     SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the granting of
the consent specified by Section 6.01 to authorize the Agent to declare the Advances due
and payable pursuant to the provisions of Section 6.01, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by
such Lender or such Affiliate to or for the credit or the account of any Loan Party or any
Borrower against any and all of the obligations of such Loan Party or

 

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such Borrower now or
hereafter existing under this Agreement, whether or not such Lender shall have made any
demand under this Agreement and although such obligations may be unmatured.
Each Lender agrees promptly to notify the Company after any such set-off and
application, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender and its Affiliates
under this Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) that such Lender and its Affiliates may have.

     SECTION 8.06. Binding Effect. This Agreement shall become effective when the
conditions precedent set forth in Section 3.01 are satisfied and this Agreement shall have
been executed by the Loan Parties and the Agent and when the Agent shall have been notified
by each Initial Lender that such Initial Lender has executed it and thereafter shall be
binding upon and inure to the benefit of the Loan Parties, each Borrowing Subsidiary (if
any), the Agent and each Lender and their respective successors and assigns, except that no
Borrower shall have the right to assign its rights hereunder or any interest herein without
the prior written consent of the Lenders.

     SECTION 8.07. Assignments and Participations.

          (a) Each Lender may, upon ten days’ notice to the Agent and with the consent of the Company
(which shall not be unreasonably withheld) and, if demanded by the Company (following a demand by
such Lender pursuant to Section 2.13 or Section 2.16 or a suspension of such Lender’s obligation to
make or continue Advances as, or convert Advances into, Eurodollar Rate Advances pursuant to
Section 2.14) upon at least ten days’ notice to such Lender and the Agent, will assign to one or
more Persons all or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitment and the Revolving Credit Advances owing to
it); provided, however, that (i) each such assignment shall be of a constant, and
not a varying, percentage of all rights and obligations under this Agreement (other than any right
to make Competitive Bid Advances or Competitive Bid Advances owing to it), (ii) except in the case
of an assignment to a Person that, immediately prior to such assignment, was a Lender or an
assignment of all of a Lender’s rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such assignment (determined as
of the date of the Assignment and Acceptance with respect to such assignment) shall in no event be
less than the lesser of (x) $25,000,000 (and, if greater, shall be in an integral multiple of
$1,000,000 in excess thereof) and (y) the smallest initial Commitment of any Initial Lender, (iii)
each such assignment shall be to an Eligible Assignee, (iv) each such assignment made as a result
of a demand by the Company pursuant to this Section 8.07(a) shall be arranged by the Company after
consultation with the Agent and shall be either an assignment of all of the rights and obligations
of the assigning Lender under this Agreement or an assignment of a portion of such rights and
obligations made concurrently with another such assignment or other such assignments that together
cover all of the rights and obligations of the assigning Lender under this Agreement, (v) no Lender
shall be obligated to make any such assignment as a result of a demand by the Company pursuant to
this Section 8.07(a) unless and until such Lender shall have received one or more payments from
either the Company or one or more Eligible Assignees in an aggregate amount at least equal to the
aggregate outstanding principal amount of the Revolving Credit Advances owing to such Lender,
together with accrued interest thereon to the date of payment of such principal amount and all
other amounts (other than Competitive Bid Advances) payable to such Lender under this Agreement,
(vi) the parties to each such assignment (other than any Borrower) shall execute and deliver to the
Agent, for its acceptance and recording in the Register (as defined in clause (d) below), an
Assignment and Acceptance, together with a processing and recordation fee of $3,500 and (vii) the
assignee, if it is not a Lender, shall deliver to the Agent an Administrative Questionnaire.

          Upon such execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto
and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (y) the Lender

 

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assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned
by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its
obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto).

          (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder
and the assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
any Borrower or the performance or observance by any Borrower of any of its obligations under this
Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the Agent, such
assigning Lender or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such
assignee appoints and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement as are delegated to the Agent by the terms
hereof, together with such powers and discretion as are reasonably incidental thereto; and (vii)
such assignee agrees that it will perform in accordance with their terms all of the obligations
that by the terms of this Agreement are required to be performed by it as a Lender.

          (c) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, the Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit B hereto, (i) accept such
Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii)
give prompt notice thereof to the Company.

          (d) The Agent shall maintain at its address referred to in Section 8.02 a copy of each
Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the
names and addresses of the Lenders and, with respect to Lenders, the Commitment of, and principal
amount of the Advances owing to, each Lender from time to time (the “Register”). The
entries in the Register shall be conclusive and binding for all purposes, absent manifest error,
and each Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available
for inspection by the Loan Parties or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

          (e) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (a “SPC”), identified as such
in writing from time to time by the Granting Lender to the Agent and the Company, the option to
provide to the Company all or any part of any Advance that such Granting Lender would otherwise be
obligated to make to the Company pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to make any Advance, (ii) if an SPC elects not to
exercise such option or otherwise fails to provide all or any part of such Advance, the Granting
Lender shall be obligated to make such Advance pursuant to the terms hereof. The making of an
Advance by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent,
and as if, such Advance were made by such Granting Lender. Each party hereto agrees that no SPC
shall be liable for any indemnity or similar payment obligation under this Agreement (all liability
for which shall remain with the Granting Lender).

 

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In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior
to the date that is one year and one day after the payment in
full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not
institute against, or join any other person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof. In addition, notwithstanding anything to the contrary contained in
this Section 8.07(e), any SPC may (i) with notice to, but without the prior written consent of, the
Company and the Agent and without paying any processing fee therefor, assign all or a portion of
its interests in any Advances to the Granting Lender or to any financial institutions (consented to
by the Company and the Agent) providing liquidity and/or credit support to or for the account of
any SPC to support the funding or maintenance of Advances and (ii) disclose on a confidential basis
any non-public information relating to its Advances to any rating agency, commercial paper dealer
or provider of any surety, guarantee or credit or liquidity enhancement to such SPC.

          (f) Each Lender may, upon notice to the Agent and the Company, sell participations to one or
more banks or other entities in or to all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment and the Advances owing
to it); provided, however, that (i) such Lender’s obligations under this Agreement
(including, without limitation, its Commitment hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance of such
obligations, (iii) such Lender shall remain the holder of any promissory note issued or assigned to
it hereunder, (iv) the Borrowers, the Guarantor, the Agent and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement and (v) no participant under any such participation shall have any right to
approve any amendment or waiver of any provision of this Agreement, or any consent to any departure
by any Borrower therefrom, except to the extent that such amendment, waiver or consent would reduce
the principal of, or interest on, the Advances or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation, or postpone any date fixed for any payment
of principal of, or interest on, the Advances or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation.

          (g) Any Lender may, in connection with any assignment or participation or proposed assignment
or participation pursuant to this Section 8.07, disclose to the assignee or participant or proposed
assignee or participant any information relating to any Loan Party or any Borrower furnished to
such Lender by or on behalf of any Loan Party or any Borrower; provided that, prior to any
such disclosure, the assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information relating to the Loan Parties or the
Borrowers received by it from such Lender.

          (h) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create a security interest in all or any portion of its rights under this Agreement or any
promissory note issued to such Lender hereunder (including, without limitation, the Advances owing
to it) in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of
Governors of the Federal Reserve System.

     SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any Person without the consent of the Company,
other than (a) to the Agent’s or such Lender’s Affiliates and their officers, directors,
employees, agents and advisors and to actual or prospective assignees and participants, and
then only on a confidential basis, (b) as required by any law, rule or regulation or
judicial process, (c) to any rating agency when required by it and (d) as requested or
required by any state, federal or foreign authority or examiner regulating banks or
banking.

     SECTION 8.09. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the law of the State of New York.

 

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     SECTION 8.10. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of a
signature page to this Agreement by electronic transmission shall be effective as delivery
of a manually executed counterpart of this Agreement.

     SECTION 8.11. Jurisdiction, Etc.

          (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in
any such New York State court or, to the extent permitted by law, in such federal court. Each of
the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Agreement in the courts of any
jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New
York State or federal court sitting in New York City. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

     SECTION 8.12. WAIVER OF JURY TRIAL. EACH BORROWER, THE AGENT, EACH ISSUING
LENDER AND EACH OF THE LENDERS HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING
OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE ADVANCES, THE LETTERS OF CREDIT OR THE
ACTIONS OF THE AGENT, ANY ISSUING LENDER OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION,
PERFORMANCE OR ENFORCEMENT THEREOF.

     SECTION 8.13. USA PATRIOT Act. Each Lender hereby notifies each Borrower
that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies the Borrowers, which information includes the name
and address of the Borrowers and other information that will allow such Lender to identify
the Borrowers in accordance with the Act.

     SECTION 8.14. Waiver of Notice of Termination under Existing 2004 Credit Agreement. Each
Lender that is a “Lender” under the Existing 2004 Credit Agreement hereby waives the requirement
contained in Section 2.05(a) thereof that the Company provide at least three business days prior
notice of the termination of the commitments thereunder, it being understood that this waiver is a
waiver of the time period only and does not waive the requirement of the Company to deliver such
notice. The foregoing waiver shall be limited as written and nothing herein shall be deemed to
constitute a waiver of any other term, provision or condition of the Existing 2004 Credit Agreement
in any instance other than as set forth herein or prejudice any right or remedy that the “Agent” or
any “Lender” thereunder may have or may in the future have thereunder.

 

-49-

ARTICLE IX

COMPANY GUARANTEE

     SECTION 9.01. Company Guarantee. Subject to the provisions of this
Article IX, the Company unconditionally and irrevocably guarantees to each Lender and the
Agent and their respective successors and assigns, that: (i) the principal of, premium, if
any, and interest on the Advances to and all L/C Reimbursement Obligations of each
Borrowing Subsidiary and, following the Substitution Date, the Guarantor (each a
“Guaranteed Party”) and any promissory notes issued by any Guaranteed Party
hereunder will be duly and punctually paid in full when due, whether at maturity, by
acceleration, by redemption or otherwise, and interest on overdue principal, and premium,
if any, and (to the extent permitted by law) interest on any interest, if any, on the
Advances and all L/C Reimbursement Obligations and all other obligations of the Guaranteed
Parties to the Lenders or the Agent hereunder (including fees and expenses) will be
promptly paid in full, all in accordance with the terms hereof; and (ii) in case of any
extension of time of payment or renewal of any of the Advances to any Guaranteed Party or
any of such other obligations including, without limitation, as a result of any amendment
and restatement of the Existing Credit Agreement or any other Loan Document, the same will
be promptly paid in full when due or performed in accordance with the terms of the
extension, renewal or amendment and restatement, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed, or
failing performance of any other obligation of the Guaranteed Parties to the Lenders or the
Agent, for whatever reason, the Company will be obligated to pay, or to perform or to cause
the performance of, the same immediately. An Event of Default under this Agreement shall
constitute an event of default under this Guarantee, and shall entitle the Lenders to
accelerate the obligations of the Company under this Guarantee in the same manner and to
the same extent as the obligations of the Guaranteed Parties.

          The Company hereby agrees that its obligations under this Guarantee shall be unconditional,
irrespective of the validity, regularity or enforceability of this Agreement, any Designation
Letter or the Substitution Letter, the absence of any action to enforce the same, any waiver or
consent by any Lender or the Agent of this Agreement any Designation Letter or the Substitution
Letter, with respect to any thereof, the entry of any judgment against any Guaranteed Party, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of the Company. The Company hereby waives and relinquishes:
(a) any right to require the Agent, the Lenders or any Guaranteed Party (each, a “Benefitted
Party”) to proceed against any Guaranteed Party or any other Person or to proceed against or
exhaust any security held by a Benefitted Party at any time or to pursue any other remedy in any
secured party’s power before proceeding against the Company; (b) any defense that may arise by
reason of the incapacity, lack of authority, death or disability of any other Person or Persons or
the failure of a Benefitted Party to file or enforce a claim against the estate (in administration,
bankruptcy or any other proceeding) of any other Person or Persons; (c) demand, protest and notice
of any kind (except as expressly required by this Agreement), including but not limited to notice
of the existence, creation or incurring of any new or additional Debt or obligation or of any
action or non-action on the part of the Company, any Benefitted Party, any creditor of the Company
or any Guaranteed Party or on the part of any other Person whomsoever in connection with any
obligations the performance of which are guaranteed under this Guarantee; (d) any defense based
upon an election of remedies by a Benefitted Party, including but not limited to an election to
proceed against the Company or any other Guaranteed Party for reimbursement; (e) any defense based
upon any statute or rule of law which provides that the obligation of a surety must be neither
larger in amount nor in other respects more burdensome than that of the principal; (f) any defense
arising because of a Benefitted Party’s election, in any proceeding instituted under the Bankruptcy
Code, of the application of Section 1111(b)(2) of the Bankruptcy Code; and (g) any defense based on
any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code. The
Company hereby covenants that this Guarantee will not be discharged except by payment in full of
all principal, premium, if any, and interest on the Advances made to each Guaranteed Party and all
other costs provided for under this Agreement in respect thereof. This is a Guarantee of payment
and not of collectability.

 

-50-

          If any Lender or the Agent is required by any court or otherwise to return to either the
Company or any Guaranteed Party, or any trustee or similar official acting in relation to either
the Company or any Guaranteed Party, any amount paid by the Company or any Guaranteed Party to the
Agent or such Lender, this Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect. The Company agrees that it will not be entitled to any right of subrogation
in relation to the Lenders or the Agent in respect of any obligations guaranteed under this
Guarantee until payment in full of all obligations guaranteed hereby. The Company agrees that, as
between it, on the one hand, and the Lenders and the Agent, on the other hand, (x) the maturity of
the obligations guaranteed under this Guarantee may be accelerated as provided in Article VI hereof
for the purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any
acceleration of such obligations as provided in Article VI hereof, such obligations (whether or not
due and payable) shall forthwith become due and payable by such Company for the purpose of this
Guarantee.

ARTICLE X

SUBSIDIARY GUARANTEE

     SECTION 10.01. Subsidiary Guarantee. Subject to the provisions of this
Article X, the Guarantor unconditionally and irrevocably guarantees to each Lender and the
Agent and their respective successors and assigns, that: (i) the principal of, premium, if
any, and interest on the Advances and all L/C Reimbursement Obligations and any promissory
note issued hereunder will be duly and punctually paid in full when due, whether at
maturity, by acceleration, by redemption or otherwise, and interest on overdue principal,
and premium, if any, and (to the extent permitted by law) interest on any interest, if any,
on the Advances, and all L/C Reimbursement Obligations and any promissory note issued
hereunder and all other obligations of the Company to the Lenders or the Agent hereunder
(including fees and expenses) will be promptly paid in full, all in accordance with the
terms hereof; and (ii) in case of any extension of time of payment or renewal of any of the
Advances or any of such other obligations including, without limitation, as a result of any
amendment and restatement of the Existing Credit Agreement or any other Loan Document, the
same will be promptly paid in full when due or performed in accordance with the terms of
the extension, renewal or amendment and restatement, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed, or
failing performance of any other obligation of the Company to the Lenders or the Agent, for
whatever reason, the Guarantor will be obligated to pay, or to perform or to cause the
performance of, the same immediately. An Event of Default under this Agreement shall
constitute an event of default under this Guarantee, and shall entitle the Lenders to
accelerate the obligations of the Guarantor under this Guarantee in the same manner and to
the same extent as the obligations of the Company.

          The Guarantor hereby agrees that its obligations under this Guarantee shall be unconditional,
irrespective of the validity, regularity or enforceability of this Agreement, the absence of any
action to enforce the same, any waiver or consent by any Lender or the Agent of this Agreement with
respect to any thereof, the entry of any judgment against the Company, any action to enforce the
same or any other circumstance which might otherwise constitute a legal or equitable discharge or
defense of the Guarantor. The Guarantor hereby waives and relinquishes: (a) any right to require
the Agent, the Lenders or the Company (each, a “Benefitted Person”) to proceed against the
Company or any other Person or to proceed against or exhaust any security held by a Benefitted
Person at any time or to pursue any other remedy in any secured party’s power before proceeding
against the Guarantor; (b) any defense that may arise by reason of the incapacity, lack of
authority, death or disability of any other Person or Persons or the failure of a Benefitted Person
to file or enforce a claim against the estate (in administration, bankruptcy or any other
proceeding) of any other Person or Persons; (c) demand, protest and notice of any kind (except as
expressly required by this Agreement), including but not limited to notice of the existence,
creation or incurring of any new or additional Debt or obligation or of any action or non-action on
the part of the Guarantor, the Company, any Benefitted Person, any creditor of the Guarantor, the
Company or on the part of any other Person whomsoever in connection with any obligations the
performance of which are

 

-51-

guaranteed under this Guarantee; (d) any defense based upon an election of remedies by a
Benefitted Person, including but not limited to an election to proceed against the Guarantor for
reimbursement; (e) any defense based upon any statute or rule of law which provides that the
obligation of a surety must be neither larger in amount nor in other respects more burdensome than
that of the principal; (f) any defense arising because of a Benefitted Person’s election, in any
proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the
Bankruptcy Code; and (g) any defense based on any borrowing or grant of a security interest under
Section 364 of the Bankruptcy Code. The Guarantor hereby covenants that this Guarantee will not be
discharged except by payment in full of all principal, premium, if any, and interest on the
Advances and all other costs provided for under this Agreement. This is a Guarantee of payment and
not of collectability.

          If any Lender or the Agent is required by any court or otherwise to return to either the
Company or the Guarantor, or any trustee or similar official acting in relation to either the
Company or the Guarantor, any amount paid by the Company or the Guarantor to the Agent or such
Lender, this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and
effect. The Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Lenders or the Agent in respect of any obligations guaranteed under this Guarantee until
payment in full of all obligations guaranteed hereby. The Guarantor agrees that, as between it, on
the one hand, and the Lenders and the Agent, on the other hand, (x) the maturity of the obligations
guaranteed under this Guarantee may be accelerated as provided in Article VI hereof for the
purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any
acceleration of such obligations as provided in Article VI hereof, such obligations (whether or not
due and payable) shall forthwith become due and payable by such Guarantor for the purpose of this
Guarantee.

     SECTION 10.02. Limitation of Guarantor’s Liability. The Guarantor, and by
its acceptance hereof, each Lender, hereby confirms that it is the intention of the parties
hereto that this Guarantee not constitute a fraudulent transfer or conveyance for purposes
of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar Federal or State law. To effectuate the foregoing intention,
the Lenders and the Guarantor hereby irrevocably agree that the obligations of the
Guarantor under this Article X shall be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities of the Guarantor, result in the
obligations of the Guarantor under the Guarantee not constituting a fraudulent transfer or
conveyance under federal or state law.

 

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

	 	 	 	 	 
	 	THE PEPSI BOTTLING GROUP, INC.,

as Borrower

 	 
	 	By:  	/s/ Kenneth E. Smith
 	 
	 	 	Name:  	Kenneth E. Smith 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	BOTTLING GROUP, LLC,

as Guarantor

 	 
	 	By:  	/s/ David Yawman
 	 
	 	 	Name:  	David Yawman 	 
	 	 	Title:  	Managing Director-Delegatee 	 
	 
	 	CITIBANK, N.A.,

as Agent

 	 
	 	By:  	/s/ Shannon A. Sweeney
 	 
	 	 	Name:  	Shannon A. Sweeney 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

-2-

	 	 	 	 	 
	 	INITIAL LENDERS

CITIBANK, N.A.

 	 
	 	By:  	/s/ Shannon A. Sweeney
 	 
	 	 	Name:  	Shannon A. Sweeney  	 
	 	 	Title:  	Vice President 	 
	 
	 	HSBC BANK USA, N.A.

 	 
	 	By:  	/s/ Thomas Foley
 	 
	 	 	Name:  	Thomas Foley  	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ David L. Catherall
 	 
	 	 	Name:  	David L. Catherall  	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH

 	 
	 	By:  	/s/ Karl Studer
 	 
	 	 	Name:  	Karl Studer 	 
	 	 	Title:  	Director 	 
	 
	 	By:  	                                              /s/ Petra Jaek
 	 
	 	 	Name:  	Petra Jaek  	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH

 	 
	 	By:  	/s/ Frederick W. Laird
 	 
	 	 	Name:  	Frederick W. Laird 	 
	 	 	Title:  	Managing Director 	 
	 
	 	By:  	                                              /s/ Heidi Sandquist
 	 
	 	 	Name:  	Heidi Sandquist  	 
	 	 	Title:  	Vice President 	 
	 

 

-3-

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ Barbara R. Marks
 	 
	 	 	Name:  	Barbara R. Marks  	 
	 	 	Title:  	Vice President 	 
	 
	 	LEHMAN COMMERCIAL PAPER INC.

 	 
	 	By:  	/s/ Ahuva Schwager
 	 
	 	 	Name:  	Ahuva Schwager 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	MORGAN STANLEY BANK

 	 
	 	By:  	/s/ Daniel Twenge
 	 
	 	 	Name:  	Daniel Twenge 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	BANCO BILBAO VIZCAYA ARGENTINA

 	 
	 	By:  	/s/ Anne-Maureen Sarfati
 	 
	 	 	Name:  	Anne-Maureen Sarfati  	 
	 	 	Title:  	Vice President

Global Corporate Banking 	 
	 
	 	By:  	                                              /s/ John Martini
 	 
	 	 	Name:  	John Martini  	 
	 	 	Title:  	Vice President

Corporate Banking 	 
	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By:  	/s/ Peter Hallan
 	 
	 	 	Name:  	Peter Hallan  	 
	 	 	Title:  	Vice President 	 
	 

 

-4-

	 	 	 	 	 
	 	ROYAL BANK OF CANADA

 	 
	 	By:  	/s/ Meredith Majesty
 	 
	 	 	Name:  	Meredith Majesty 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	STATE STREET BANK AND TRUST COMPANY

 	 
	 	By:  	/s/ Juan G. Sierra
 	 
	 	 	Name:  	Juan G. Sierra  	 
	 	 	Title:  	Vice President 	 
	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/ Jordan Fragiacomo
 	 
	 	 	Name:  	Jordan Fragiacomo  	 
	 	 	Title:  	Vice President 	 
	 
	 	COMERICA BANK

 	 
	 	By:  	/s John M. Costa
 	 
	 	 	Name:  	John M. Costa  	 
	 	 	Title:  	First Vice President 	 
	 

 

SCHEDULE 1

COMMITMENTS

	 	 	 	 	 
	LENDER	 	COMMITMENT
	CITIBANK, N.A.
	 	$	125,000,000	 
	HSBC BANK USA, N.A.
	 	$	125,000,000	 
	BANK OF AMERICA, N.A.
	 	$	125,000,000	 
	CREDIT SUISSE, CAYMAN ISLANDS BRANCH
	 	$	125,000,000	 
	DEUTSCHE BANK AG NEW YORK BRANCH
	 	$	125,000,000	 
	JPMORGAN CHASE BANK, N.A.
	 	$	125,000,000	 
	LEHMAN COMMERCIAL PAPER INC.
	 	$	125,000,000	 
	MORGAN STANLEY BANK
	 	$	125,000,000	 
	BANCO BILBAO VIZCAYA ARGENTINA
	 	$	50,000,000	 
	THE NORTHERN TRUST COMPANY
	 	$	50,000,000	 
	ROYAL BANK OF CANADA
	 	$	30,000,000	 
	STATE STREET BANK AND TRUST COMPANY
	 	$	25,000,000	 
	WELLS FARGO BANK, N.A.
	 	$	25,000,000	 
	COMERICA BANK
	 	$	20,000,000	 
	TOTAL COMMITMENTS
	 	$	1,200,000,000	 

Schedule 1

 

 

SCHEDULE 2

PRICING SCHEDULE

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable
	 	 	Applicable Facility	 	 	 	Utilization Fee
	Rating Level Period	 	Fee Rate	 	Applicable Margin	 	Rate1
	1	 	4.0 bps
	 	11.0 bps
	 	5.0 bps
	2
	 	4.5 bps
	 	13.0 bps
	 	5.0 bps
	3
	 	5.0 bps
	 	15.0 bps
	 	5.0 bps
	4
	 	6.0 bps
	 	19.0 bps
	 	5.0 bps
	5
	 	8.0 bps
	 	32.0 bps
	 	5.0 bps

 

			
	1	 	Applicable if utilization exceeds 50% of Commitment
amount.

Schedule 2

 

 

EXHIBIT A-1

[FORM OF NOTICE OF REVOLVING CREDIT BORROWING]

Citibank,
N.A., as Agent for the Lenders parties

  to the
Credit Agreement referred to below

2 Penn’s Way, Suite 200

New Castle, Delaware 19720

                     __, 20__

Ladies and Gentlemen:

          The undersigned, The Pepsi Bottling Group, Inc. (the “Company”), refers to the First
Amended and Restated Credit Agreement, dated as of October 19, 2007 (as amended or modified from
time to time, the “Credit Agreement”, the terms defined therein being used herein as
therein defined), among the undersigned, Bottling Group, LLC (the “Guarantor”), certain
Lenders parties thereto and Citibank, N.A., as administrative agent for said Lenders, and hereby
gives you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Revolving Credit Borrowing (the
“Proposed Revolving Credit Borrowing”) as required by Section 2.02(a) of the Credit
Agreement:

(i) The Business Day of the Proposed Revolving Credit Borrowing is                     , ___.

(ii) The Type of Advances comprising the Proposed Revolving Credit Borrowing is [Base Rate
Advances] [Eurodollar Rate Advances].

(iii) The aggregate amount of the Proposed Revolving Credit Borrowing is $                    .

(iv) The identity of the Borrower is                     , a                      corporation.

[(v)] [The initial Interest Period for each Eurodollar Rate Advance made as part of the
Proposed Revolving Credit Borrowing is ___month[s].]

          The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Revolving Credit Borrowing:

     (A) the representations and warranties contained in Section 4.01 of the Credit Agreement
(except the representations set forth in the last sentence of subsection (e) thereof and in
subsection (f) thereof (other than clause (ii) thereof)) are correct in all material respects, on
and as of the date of the Proposed Revolving Credit Borrowing, before and after giving effect to
the Proposed Revolving Credit Borrowing and to the application of the proceeds therefrom, as though
made on and as of such date; and

     (B) no event has occurred and is continuing, or would result from such Proposed Revolving
Credit Borrowing or from the application of the proceeds therefrom, that constitutes a Default.

	 	 	 	 	 
	 	Very truly yours,

THE PEPSI BOTTLING GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of Notice of Revolving Credit Borrowing

 

 

EXHIBIT A-2

[FORM OF NOTICE OF COMPETITIVE BID BORROWING]

Citibank,
N.A., as Agent for the Lenders parties

  to the Credit Agreement referred to below

2 Penn’s Way, Suite 200

New Castle, Delaware 19720

                     __, 20__

Ladies and Gentlemen:

          The undersigned, The Pepsi Bottling Group, Inc. (the “Company”), refers to the First
Amended and Restated Credit Agreement, dated as of October 19, 2007 (as amended or modified from
time to time, the “Credit Agreement”, the terms defined therein being used herein as
therein defined), among the undersigned, Bottling Group, LLC (the “Guarantor”), certain
Lenders parties thereto and Citibank, N.A, as administrative agent for said Lenders, and hereby
gives you notice pursuant to Section 2.03 of the Credit Agreement that the undersigned hereby
requests a Competitive Bid Borrowing under the Credit Agreement, and in that connection sets forth
the terms on which such Competitive Bid Borrowing (the “Proposed Competitive Bid
Borrowing”) is requested to be made:

	 	 	 	 	 	 	 	 	 
	 

	 	(A)
	 	Date of Proposed Competitive Bid Borrowing	 	 	 	 
	 

	 	(B)
	 	Aggregate Amount of Proposed
Competitive Bid Borrowing
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(C)
	 	Maturity Date	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(D)
	 	Interest Rate Basis	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(E)
	 	Interest Payment Date(s)	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(F)
	 	Identity of Borrower	 	 	 	 
	 

	 	 	 	 	 	 	 	 

          The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Competitive Bid Borrowing:

     (a) the representations and warranties contained in Section 4.01 (except the
representations set forth in the last sentence of subsection (e) thereof and in subsection
(f) thereof (other than clause (ii) thereof)) are correct in all material respects, on and
as of the date of the Proposed Competitive Bid Borrowing, before and after giving effect to
the Proposed Competitive Bid Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date; and

     (b) no event has occurred and is continuing, or would result from the Proposed
Competitive Bid Borrowing or from the application of the proceeds therefrom, that
constitutes a Default.

          The undersigned hereby confirms that the Proposed Competitive Bid Borrowing is to be made
available to it in accordance with Section 2.03(b) of the Credit Agreement.

	 	 	 	 	 
	 	Very truly yours,

THE PEPSI BOTTLING GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of Notice of Issuance

 

 

EXHIBIT A-3

[FORM OF EXTENSION AGREEMENT]

The Pepsi Bottling Group, Inc.

One Pepsi Way

Somers, New York 10589

Attention: Treasurer

Citibank,
N.A, as Agent

  under the Credit Agreement referred to below

2 Penn’s Way, Suite 200

New Castle, Delaware 19720

                     __, 20__

Ladies and Gentlemen:

          Each undersigned Lender hereby agrees to extend, effective on [insert effective date, which
shall be no more than 29 days prior to the existing Termination Date] (the “Extension
Date”), the Termination Date under the First Amended and Restated Credit Agreement dated as of
October 19, 2007 (as the same may be amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”) among The Pepsi Bottling Group, Inc., Bottling Group, LLC, the
Lenders and agents party thereto and Citibank, N.A, as administrative agent for the Lenders, to
[one year from the effective date of this Extension Agreement]. Terms defined in the Credit
Agreement are used herein as therein defined.

          This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts, and all of said counterparts taken together shall be deemed to constitute
one and the same instrument.

[Remainder of this page intentionally left blank]

Form of Extension Agreement

 

 

EXHIBIT B

[FORM OF ASSIGNMENT AND ACCEPTANCE]

          Reference is made to the First Amended and Restated Credit Agreement dated as of October 19,
2007 (as amended or modified from time to time, the “Credit Agreement”), among THE PEPSI
BOTTLING GROUP, INC., a Delaware corporation (the “Company”), Bottling Group, LLC (the
“Guarantor”), the Lenders (as defined in the Credit Agreement) and Citibank, N.A, as
administrative agent for the Lenders (the “Agent”). Terms defined in the Credit Agreement
are used herein with the same meaning.

          The “Assignor” and the “Assignee” referred to on Schedule 1 hereto agree as follows:

          (1) The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under
the Credit Agreement as of the date hereof (other than in respect of Competitive Bid Advances)
equal to the percentage interest specified on Schedule 1 hereto of all outstanding rights and
obligations under the Credit Agreement (other than in respect of Competitive Bid Advances). After
giving effect to such sale and assignment, the Assignee’s Commitment and the amount of the
Revolving Credit Advances owing to the Assignee will be as set forth on Schedule 1 hereto.

          (2) The Assignor (i) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Company or the performance or observance by the Company of any of its obligations or the
obligations of any Borrower under the Credit Agreement or any other instrument or document
furnished pursuant thereto.

          (3) The Assignee (i) confirms that it has received a copy of the Credit Agreement, together
with copies of the financial statements referred to in Section 4.01 thereof and such other
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iii) confirms that it is an Eligible
Assignee; (iv) appoints and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under the Credit Agreement as are delegated to the Agent by the
terms thereof, together with such powers and discretion as are reasonably incidental thereto; (v)
agrees that it will perform in accordance with their terms all of the obligations that by the terms
of the Credit Agreement are required to be performed by it as a Lender; and (vi) attaches any U.S.
Internal Revenue Service forms required under Section 2.16 of the Credit Agreement.

          (4) Following the execution of this Assignment and Acceptance, it will be delivered to the
Agent for acceptance and recording by the Agent. The effective date for this Assignment and
Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Agent,
unless otherwise specified on Schedule 1 hereto.

          (5) Upon such acceptance and recording by the Agent, as of the Effective Date, (i) the
Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment
and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall,
to the

Form of Assignment and Acceptance

 

-2-

extent provided in this Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Credit Agreement.

          (6) Upon such acceptance and recording by the Agent, from and after the Effective Date, the
Agent shall make all payments under the Credit Agreement in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and facility fees with respect
thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in
payments under the Credit Agreement for periods prior to the Effective Date directly between
themselves.

          (7) This Assignment and Acceptance shall be governed by, and construed in accordance with,
the law of the State of New York.

          (8) This Assignment and Acceptance may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier
shall be effective as delivery of a manually executed counterpart of this Assignment and
Acceptance.

          IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment
and Acceptance to be executed by their officers thereunto duly authorized as of the date specified
thereon.

Form of Assignment and Acceptance

 

Schedule 1

to

Assignment and Acceptance

	 	 	 	 	 
	Percentage interest assigned:
	 	 	—	%
	 
	Assignee’s Commitment:
	 	$	                    	 
	 
	Aggregate outstanding principal
amount of Revolving Credit Advances assigned:
	 	$	                    	 
	 
	Effective Date2:
	 	 	                    ,     	 

	 	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR], as Assignor	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Dated:                      __, 20__	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE], as Assignee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Dated:                      __, 20__	 	 

 

			
	2	 	This date should be no earlier than five Business Days
after the delivery of this Assignment and Acceptance to the Agent.

Schedule 1 to Assignment and Acceptance

 

-2- 

	 	 	 	 	 
	Accepted and Approved this

____ day of                      __, 20__	 	 
	 
	 	 	 	 
	CITIBANK, N.A, as Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Approved this ____ day
of

                      __, 20__	 	 
	 
	 	 	 	 
	THE PEPSI BOTTLING GROUP, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	[ISSUING LENDER]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Schedule 1 to Assignment and Acceptance

 

 

EXHIBIT C-1

[FORM OF OPINION OF SPECIAL NEW YORK COUNSEL OF THE COMPANY AND THE GUARANTOR]

                     __, 2007

The Pepsi Bottling Group, Inc.

Bottling Group, LLC

Credit Agreement

(212) 474-1682

To each of the Lenders
and the Agent party to the
Credit Agreement referred to below

     Dear Ladies and Gentlemen:

We have acted as special New York counsel to The Pepsi Bottling Group, Inc., a Delaware corporation
(the “Borrower”), and Bottling Group, LLC, a Delaware limited liability company (the
“Guarantor” and, together with the Borrower, the “Companies”), in connection with
the First Amended and Restated Credit Agreement dated as of October 19, 2007 (the “Credit
Agreement”), among the Borrower, the Guarantor, the lending institutions party thereto (the
“Lenders”) and Citibank, N.A., as administrative agent for the Lenders (the
“Agent”). This opinion is being delivered to you pursuant to paragraph (g)(v) of Section
3.01 of the Credit Agreement. Capitalized terms used but not defined herein have the meanings
assigned to them in the Credit Agreement.

In that connection, we have examined originals, or copies certified or otherwise identified to our
satisfaction, of such documents, corporate records and other instruments as we have deemed
necessary or appropriate for purposes of this opinion, including:

	 	i.	 	the Credit Agreement,
	 
	 	ii.	 	the certificate of incorporation of the Borrower, as amended,
	 
	 	iii.	 	the by-laws of the Borrower, as amended,
	 
	 	iv.	 	the limited liability company agreement of the Guarantor, as amended, and
	 
	 	v.	 	the certificate of formation of the Guarantor, as amended.

We have also relied, with respect to certain factual matters, on the representations and warranties
of the Companies contained in the Credit Agreement and have assumed compliance by the Companies
with the terms of the Credit Agreement.

In rendering our opinion, we have assumed (a) the due authorization, execution and delivery of the
Credit Agreement by all parties thereto (including the Companies), (b) the genuineness of all
signatures, (c) that, except as addressed in our opinions set forth in paragraphs 1 and 2 below,
each of the Companies has all necessary power, authority and legal right to execute and deliver the
Credit Agreement and to perform its obligations thereunder, (d) the authenticity of all documents
submitted to us as originals, (e) the conformity to original documents of all documents submitted
to us as copies and (f) that the execution and delivery by each of the Companies of the Credit
Agreement and the performance by each of the Companies of its obligations thereunder (i) do not
violate any law, rule or regulation, other than those addressed in our opinion set forth in
paragraph 3 below, (ii) do not require any authorization, approval or

Form of Opinion of Special New York Counsel of the Company and the Guarantor

 

-2- 

other action by, or notice to or filing with, any governmental authority, other than those
addressed in our opinion set forth in paragraph 5 below, and (iii) do not result in a breach of or
constitute a default under any indenture, agreement or other instrument binding upon either Company
or its assets.

Based on the foregoing, and subject to the qualifications hereinafter set forth, we are of opinion
as follows:

          1. Based solely on a certificate from the Secretary of State of the State of Delaware, the
Borrower is a corporation validly existing and in good standing under the laws of the State of
Delaware. The Borrower has all necessary corporate power to execute and deliver the Credit
Agreement and to perform its obligations thereunder.

          2. Based solely on a certificate from the Secretary of State of the State of Delaware, the
Guarantor is a limited liability company validly existing and in good standing under the laws of
the State of Delaware. The Guarantor has all necessary limited liability company power to execute
and deliver the Credit Agreement and to perform its obligations thereunder.

          3. The execution and delivery by each Company of the Credit Agreement and the performance by
such Company of its obligations thereunder do not violate (i) the certificate of incorporation or
the by-laws of the Company or the limited liability company agreement or certificate of formation
of the Guarantor, or (ii) any law, rule or regulation of the United States of America or the State
of New York or the General Corporation Law of the State of Delaware.

          4. The Credit Agreement constitutes a valid and binding obligation of each Company,
enforceable against such Company in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and other similar laws relating to or
affecting creditor’s rights generally from time to time in effect and to general principles of
equity (including, without limitation, concepts of materiality, reasonableness, good faith and fair
dealing), regardless of whether considered in a proceeding in equity or at law. The foregoing
opinion is subject to the following qualifications: (i) insofar as provisions contained in the
Credit Agreement provide for indemnification or limitations on liability, the enforceability
thereof may be limited by public policy considerations, (ii) the availability of a decree for
specific performance or an injunction is subject to the discretion of the court requested to issue
any such decree or injunction, (iii) we express no opinion as to the effect of the laws of any
jurisdiction other than the State of New York where any Lender may be located or where enforcement
of the Credit Agreement may be sought that limits the rates of interest legally chargeable or
collectible and (iv) the second paragraph of each of Sections 9.01 and 10.01 of the Credit
Agreement may not be enforceable to the extent that the obligations guaranteed under Articles IX
and X, respectively, of the Credit Agreement are materially modified.

          5. No authorization, approval or other action by, and no notice to or filing with, any United
States Federal or New York governmental authority is required to be made or obtained by either
Company in connection with the execution, delivery and performance by such Company of the Credit
Agreement, other than (i) such reports to United States governmental authorities regarding
international capital and foreign currency transactions as may be required pursuant to 31 C.F.R.
Part 128, (ii) those that have been made or obtained and are in full force and effect or as to
which the failure to be made or obtained or to be in full force and effect would not result,
individually or in the aggregate, in a material adverse effect on the Borrower and its
subsidiaries, taken as a whole, and (iii) such registrations, filings and approvals that may be
required because of the legal or regulatory status of any Lender or because of any other facts
specifically pertaining to any Lender.

We express no opinion herein as to any provision in the Credit Agreement that (a) relates to the
subject matter jurisdiction of any Federal court of the United States of America, or any Federal
appellate court, to adjudicate any controversy related to the Credit Agreement (such as the
provision found in Section 8.11(a) of the Credit Agreement), (b) contains a waiver of an
inconvenient forum (such as the provision

Form of Opinion of Special New York Counsel of the Company and the Guarantor

 

-3-

found in Section 8.11(b) of the Credit Agreement), (c) relates to a right of setoff in respect of
purchases of interests in loans (such as the provision found in Section 2.17 of the Credit
Agreement) or with respect to parties that may not hold mutual debts (such as the provision found
in Section 8.05 of the Credit Agreement), (d) provides for liquidated damages, (e) relates to the
waiver of rights to jury trial (such as the provision found in Section 8.12 of the Credit
Agreement) or (f) relates to any arrangement or similar fee payable to any arranger (including the
Agent) of the commitments or loans under the Credit Agreement or any fee not set forth in the
Credit Agreement.

We understand that you are satisfying yourselves as to the status under Section 548 of the
Bankruptcy Code and applicable state fraudulent conveyance laws of the obligations of the Borrower
and the Guarantor under the Credit Agreement and we express no opinion thereon.

We are admitted to practice only in the State of New York, and we express no opinion as to matters
governed by any laws other than the laws of the State of New York, the General Corporation Law of
the State of Delaware and the Federal law of the United States of America.

This opinion is rendered only to the Agent and the Lenders under the Credit Agreement and is solely
for their benefit in connection with the above transactions. We are opining as to the matters
herein only as of the date hereof, and we undertake no obligation to update this opinion. This
opinion may not be relied upon by any other person or for any other purpose or used, circulated,
quoted or otherwise referred to for any other purpose.

Very truly yours,

Form of Opinion of Special New York Counsel of the Company and the Guarantor

 

EXHIBIT C-2

[FORM OF OPINION OF ASSISTANT GENERAL COUNSEL OF THE COMPANY AND THE GUARANTOR]

                     __, 2007

To each of
the Lenders

  and the
Agent party to the

  Credit Agreement referred to below

The Pepsi Bottling Group, Inc.

Ladies and Gentlemen:

          This opinion is furnished to you pursuant to Section 3.01(g)(v) of the First Amended and
Restated Credit Agreement, dated as of October 19, 2007 (the “Credit Agreement”), among The
Pepsi Bottling Group, Inc. (the “Company”), Bottling Group, LLC, (the
“Guarantor”), the Lenders parties thereto and Citibank, N.A, as Agent for said Lenders,
providing for extensions of credit to be made by said Lenders to the Company. Terms defined in the
Credit Agreement are used herein as therein defined.

          I am the Assistant General Counsel of the Company and have acted as counsel to the Company and
the Guarantor in connection with the Credit Agreement. In connection with this opinion, I have
examined:

          (1) The Credit Agreement.

          (2) The documents furnished by the Company and the Guarantor pursuant to subsections
3.01(g)(i)-(iv) of the Credit Agreement.

          (3) The Certificate of Incorporation of the Company and all amendments thereto (the
“Charter”).

          (4) The by-laws of the Company and all amendments thereto (the “By-laws”).

          (5) A certificate of the Secretary of State of Delaware, dated                      ___, 2007, attesting
to the continued corporate existence and good standing of the Company in that State.

          (6) The Amended and Restated Limited Liability Company Agreement of the Guarantor, dated as
of March 30, 1999, and all amendments thereto (the “LLC Agreement”).

          (7) The Certificate of Formation of the Guarantor and all amendments thereto (the
“Certificate of Formation”).

          (8) A certificate of the Secretary of State of Delaware dated                      ___, 2007, attesting to
the continued existence and good standing of the Guarantor in that State.

          (9) Resolutions of the Board of Directors of the Company adopted on                      ___, 2007.

          (10) Resolutions of the Managing Directors of the Guarantor adopted on                      ___, 2007.

Form of Opinion of Assistant General Counsel of the Company and the Guarantor

 

-2- 

          In addition, I have examined the originals, or copies certified or otherwise identified to my
satisfaction, of such other corporate records of the Company and the Guarantor, certificates of
public officials and of officers of the Company and the Guarantor, and agreements, instruments and
other documents, as I have deemed necessary as a basis for the opinions expressed below. I have
assumed the due execution and delivery, pursuant to due authorization, of the Credit Agreement by
the Initial Lenders and the Agent.

          The opinions expressed below are limited to the law of the State of New York, the Delaware
corporate law, the Federal law of the United States.

          Based upon the foregoing and upon such investigation as I have deemed necessary and subject to
the qualifications set forth herein, I am of the following opinion:

          (1) The execution and delivery by each Company of the Credit Agreement and the performance by
each Company of its obligations thereunder have been duly authorized by all requisite corporate or
limited liability company (as the case may be) action on the part of such Company and the Credit
Agreement has been duly executed and delivered by each Company.

          (2) The execution, delivery and performance by the Company and the Guarantor of the Credit
Agreement do not contravene to the best of my knowledge any contractual or legal restriction
contained in any material judgment, decree, mortgage, agreement, indenture or other instrument to
which the Company or the Guarantor is a party.

          (3) To the best of my knowledge and except as disclosed in the Company’s consolidated
financial statements, there are no pending or overtly threatened actions or proceedings against the
Company or any of its Subsidiaries, before any court, governmental agency or arbitrator that
purport to affect the legality, validity, binding effect or enforceability of the Credit Agreement
or that are likely to have a materially adverse effect upon the financial condition or operations
of the Company or any of its Subsidiaries.

The opinions set forth above are subject to the following qualifications:

          (1) I express no opinion as to the effect (if any) of the law of any jurisdiction (other than
the State of New York) wherein any Lender may be located or wherein enforcement of the Credit
Agreement may be sought that limits the rates of interest that such Lender may charge or collect.

          (2) I express no opinion as to the effect of Section 548 of the United States Bankruptcy Code
or any similar provision of State law.

          I am opining as to the matters herein only as of the date hereof and there exists no
obligation on my part to update this opinion. In all respects and for all purposes, this opinion
is given solely for the benefit of the Agent and the Lenders and may not be relied upon by any
other person or entity without my prior written consent.

Very truly yours,

Form of Opinion of Assitant General Counsel of the Company and the Guarantor

 

 

EXHIBIT C-3

[Form of Opinion of Special New York Counsel for the Agent]

                     __, 2007

To each of the Lenders
and the Agent party
to the Credit Agreement referred to below

Ladies and Gentlemen:

          We have acted as special New York counsel to Citibank, N.A, as administrative agent (in such
capacity, the “Agent”) in connection with the First Amended and Restated Credit Agreement
dated as of October 19, 2007 (the “Credit Agreement”), among The Pepsi Bottling Group, Inc.
(the “Borrower”), Bottling Group, LLC (the “Guarantor” and, together with the
Borrower, the “Credit Parties”), the banks and other financial institutions from time to
time parties thereto (the “Lenders”) and the Agent amending and restating a certain 5-Year
Credit Agreement dated as of March 22, 2006 (the “Existing Credit Agreement”).

          This opinion is furnished to you pursuant to Section 3.01(g)(vi) of the Credit Agreement.
Unless otherwise defined herein, terms defined in the Credit Agreement are used herein as therein
defined.

          In arriving at the opinions expressed below, we have examined and relied on the Credit
Agreement and we have made such investigations of law as we have deemed appropriate for purposes of
this opinion.

          In our examination, we have assumed the authenticity of all documents submitted to us as
originals and the conformity with authentic original documents of all documents submitted to us as
copies. When relevant facts were not independently established, we have relied upon
representations made in or pursuant to the Credit Agreement.

          In rendering the opinions expressed below, we have assumed, with respect to the Credit
Agreement, that:

          (i) the Credit Agreement has been duly authorized by, has been duly executed and delivered
by, and (except to the extent set forth in the opinions below as to the Credit Parties) constitutes
the legal, valid, binding and enforceable obligation of, all of the parties thereto;

          (ii) all signatories to the Credit Agreement have been duly authorized; and

          (iii) all of the parties to the Credit Agreement are duly organized and validly existing
under the laws of their respective jurisdictions of incorporation and have the power and authority
(corporate or other) to execute, deliver and perform the Credit Agreement.

          In addition, we have also assumed that (i) all Persons that are, immediately prior to the
Effective Date, parties to the Existing Credit Agreement have executed and delivered the Credit

Form of Opinion of Special New York Counsel for the Agent

 

-2- 

Agreement or shall have otherwise consented to the amendment and restatement provided for
therein and (ii) all conditions (other than this opinion letter) required to be satisfied pursuant
to Section 3.01 of the Credit Agreement have been so satisfied.

          Based upon and subject to the foregoing and subject also to the comments and qualifications
set forth below, and having considered such questions of law as we have deemed necessary as a basis
for the opinions expressed below, we are of the opinion that the Credit Agreement constitutes the
legal, valid and binding obligation of each of the Credit Parties party thereto, enforceable
against such Credit Party in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws
relating to or affecting the rights of creditors generally and except as the enforceability thereof
is subject to the application of general principles of equity (regardless of whether considered in
a proceeding in equity or at law), including, without limitation, (a) the possible unavailability
of specific performance, injunctive relief or any other equitable remedy and (b) concepts of
materiality, reasonableness, good faith and fair dealing.

          The foregoing opinions are subject to the following comments and qualifications:

          (A) The enforceability of Section 8.04(b) of the Credit Agreement may be limited by (i) laws
rendering unenforceable indemnification contrary to Federal or state securities laws and the public
policy underlying such laws and (ii) laws limiting the enforceability of provisions releasing,
exculpating or exempting a party, or requiring indemnification of a party for, liability for its
own action or inaction, to the extent the action or inaction involves gross negligence,
recklessness, wilful misconduct or unlawful conduct.

          (B) The enforceability of provisions in the Credit Agreement to the effect that terms may not
be waived or modified except in writing may be limited under certain circumstances.

          (C) We express no opinion as to (i) the effect of the laws of any jurisdiction in which any
Lender is located (other than the State of New York) that limit the interest, fees or other charges
such Lender may impose, (ii) the last sentence of Section 2.17 of the Credit Agreement, (iii)
Section 8.05 of the Credit Agreement, (iv) Section 8.12(a) of the Credit Agreement, insofar as it
relates to the subject matter jurisdiction of any court of the United States of America sitting in
New York City to adjudicate any controversy related to the Credit Agreement, (v) Section 8.12(b) of
the Credit Agreement insofar as it relates to inconvenient forum with respect to any Federal court
and (vi) Section 10.02 of the Credit Agreement.

          (D) The second paragraph of each of Sections 9.01 and 10.01 of the Credit Agreement may not
be enforceable to the extent that the obligations guaranteed under Articles IX and X, respectively,
of the Credit Agreement are materially modified.

          (E) We express no opinion as to the applicability to the obligations of the Guarantor under
Article X of the Credit Agreement (or the enforceability of such obligations under) Section 548 of
the Bankruptcy Code, Article 10 of the New York Debtor and Creditor Law or any other provision of
law relating to fraudulent conveyances, transfers or obligations, or the provisions of the law of
the jurisdiction of incorporation of the Guarantor restricting dividends, loans or other
distributions by a corporation for the benefit of its stockholders.

          The foregoing opinions are limited to matters involving the Federal laws of the United States
of America and the law of the State of New York, and we do not express any opinion as to the laws
of any other jurisdiction.

Form of Opinion of Special New York Counsel for the Agent

 

-3-

          This opinion letter is, pursuant to Section 3.01(g)(vi) of the Credit Agreement, provided to
you by us in our capacity as special New York counsel to the Agent and may not be relied upon by
any Person for any purpose other than in connection with the transactions contemplated by the
Credit Agreement without, in each instance, our prior written consent.

Very truly yours,

Form of Opinion of Special New York Counsel for the Agent

 

EXHIBIT D

[FORM OF DESIGNATION LETTER]

                    , 20___

To Citibank, N.A

  as Agent

Ladies and Gentlemen:

          We make reference to the First Amended and Restated Credit Agreement (as amended, supplemented
and otherwise modified and in effect from time to time, the “Credit Agreement”) dated as of
October 19, 2007 among The Pepsi Bottling Group, Inc. (the “Company”), Bottling Group, LLC
(the “Guarantor”), Citibank, N.A, as administrative agent (the “Agent”), and the
banks party thereto (the “Initial Lenders”). Terms defined in the Credit Agreement are
used herein as defined therein.

          The Company hereby designates                      (the “Borrowing Subsidiary”), a
Subsidiary of the Company and a corporation duly incorporated under the laws of                      as a
Borrower in accordance with Section 2.19 of the Credit Agreement until such designation is
terminated in accordance with said Section 2.19.

          The Borrowing Subsidiary hereby accepts the above designation and hereby expressly and
unconditionally accepts the obligations of a Borrower under the Credit Agreement, adheres to the
Credit Agreement and agrees and confirms that, upon your execution and return to the Company of the
enclosed copy of this letter, such Borrowing Subsidiary shall be a Borrower for purposes of the
Credit Agreement and agrees to be bound by and perform and comply with the terms and provisions of
the Credit Agreement applicable to it as if it had originally executed the Credit Agreement as a
Borrower. The Borrowing Subsidiary hereby authorizes and empowers the Company to act as its
representative and attorney-in-fact for the purposes of signing documents and giving and receiving
notices (including notices of Borrowing under the Credit Agreement) and other communications in
connection with the Credit Agreement and the transactions contemplated thereby and for the purposes
of modifying or amending any provision of the Credit Agreement and further agrees that the Agent
and each Lender may conclusively rely on the foregoing authorization.

          The Borrowing Subsidiary represents and warrants that each of the representations and
warranties set forth in Section 4.01(a) (as if the reference therein to Delaware were a reference
to its jurisdiction of organization), (b), (c) and (d) of the Credit Agreement are true as if each
reference therein to the Company were a reference to the Borrowing Subsidiary and as if each
reference therein to the Loan Documents were a reference to this Designation Letter.

          The Borrowing Subsidiary hereby agrees that this Designation Letter and the Credit Agreement
shall be governed by, and construed in accordance with, the law of the State of New York. The
Borrowing Subsidiary hereby submits to the nonexclusive jurisdiction of any New York state court or
Federal court of the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this Designation
Letter, the Credit Agreement or for recognition or enforcement of any judgment. The Borrowing
Subsidiary irrevocably waives, to the fullest extent permitted by law, any objection which it may
now or hereafter have to the laying of the venue of any such proceeding brought in such a court and
any claim that any such proceeding brought in such a court has been brought in an inconvenient
forum. The Borrowing Subsidiary further agrees that service of process in any such action or
proceeding brought in New York

Form of Designation Letter

 

-2-

may be made upon it by service upon the Borrower at its address specified in Section 8.02 of
the Credit Agreement.

          Without limiting the foregoing, the Borrowing Subsidiary joins in the submission, agreements,
waivers and consents in Section 8.12 and 8.13 of the Credit Agreement.

	 	 	 	 	 
	 	THE PEPSI BOTTLING GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[NAME OF BORROWING SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	ACCEPTED:	 	 
	 
	 	 	 	 
	CITIBANK, N.A,	 	 
	   as Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Form of Designation Letter

 

EXHIBIT E

[FORM OF SUBSTITUTION LETTER]

                     ___, 20___

To
Citibank, N.A
   as
Agent

Ladies and Gentlemen:

          We make reference to the First Amended and Restated Credit Agreement (as amended, supplemented
and otherwise modified and in effect from time to time, the “Credit Agreement”) dated as of
October 19, 2007 among The Pepsi Bottling Group, Inc. (the “Company”), Bottling Group,
LLC (the “Guarantor”), Citibank, N.A, as administrative agent (the “Agent”), and
the banks party thereto (the “Initial Lenders”). Terms defined in the Credit Agreement are
used herein as defined therein.

          The Company hereby elects to terminate its rights as a Borrower under the Credit Agreement and
designates the Guarantor as Borrower thereunder in place of the Guarantor in accordance with
Section 2.19 of the Credit Agreement.

          The Guarantor hereby accepts the above substitution and hereby expressly and unconditionally
accepts the obligations of the Company under the Credit Agreement, adheres to the Credit Agreement
and agrees and confirms that, as of the date hereof, the Guarantor shall become a Borrower for
purposes of the Credit Agreement and agrees to be bound by and perform and comply with the terms
and provisions of the Credit Agreement applicable to it as if it had originally executed the Credit
Agreement as the Company.

          The Company and the Guarantor hereby represent and warrant to the Agent and each Lender that,
before and after giving effect to this Substitution Letter, (i) the representations and warranties
set forth in Section 4.01 of the Credit Agreement (except the representations set forth in the last
sentence of subsection (e) thereof and in subsection (f) thereof (other than clause (ii) thereof))
are true and correct in all material respects on the date hereof and after giving effect to the
substitution contemplated hereby as if made on and as of the date hereof and (ii) no Default has
occurred and is continuing.

          The Company and the Guarantor hereby agree that this Substitution Letter shall be governed by,
and construed in accordance with, the law of the State of New York. The Company and the Guarantor
hereby submit to the nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York state court sitting in New York City for the purposes of
all legal proceedings arising out of or relating to this Substitution Letter or the transactions
contemplated hereby.

	 	 	 	 	 
	 	THE PEPSI BOTTLING GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BOTTLING GROUP, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of Substitution Letter

 

EXHIBIT F

[FORM OF TERMINATION LETTER]

                     ___, 20___

To Citibank, N.A,
   as
Agent

Ladies and Gentlemen:

          We make reference to the First Amended and Restated Credit Agreement (as amended, supplemented
and otherwise modified and in effect from time to time, the “Credit Agreement”) dated as of
October 19, 2007 by and among The Pepsi Bottling Group, Inc. (the “Company”), Bottling
Group, LLC (the “Guarantor”), Citibank, N.A, as administrative agent, and the banks party
thereto. Terms defined in the Credit Agreement are used herein as defined therein.

          The Company hereby terminates the status as a Borrowing Subsidiary of                     , a
corporation incorporated under the laws of                     , in accordance with Section 2.19 of the
Credit Agreement, effective as of the date of receipt of this notice by the Agent. The undersigned
hereby represents and warrants that all principal of and interest on any Advance of the
above-referenced Borrowing Subsidiary and all other amounts payable by such Borrowing Subsidiary
pursuant to the Credit Agreement have been paid in full on or prior to the date hereof.
Notwithstanding the foregoing, this Termination Letter shall not affect any obligation which by the
terms of the Credit Agreement survives termination thereof.

	 	 	 	 	 
	 	THE PEPSI BOTTLING GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of Termination Letter<PAGE>

                                                                     Exhibit 4.1

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                    Depositor

                            HOME LOAN SERVICES, INC.,
                                    Servicer

                                       and

                       LASALLE BANK NATIONAL ASSOCIATION,
                                     Trustee

                                   ----------

                         POOLING AND SERVICING AGREEMENT
                          Dated as of September 1, 2007

                                   ----------

                MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST,
             MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2007-5

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>                                                                                      <C>
ARTICLE I    DEFINITIONS..............................................................     13
ARTICLE II   CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES.............     66
   SECTION 2.01.  Conveyance of Mortgage Loans........................................     66
   SECTION 2.02.  Acceptance by the Trustee of the Mortgage Loans.....................     68
   SECTION 2.03.  Representations, Warranties and Covenants of the Depositor..........     70
   SECTION 2.04.  Representations and Warranties of the Servicer......................     73
   SECTION 2.05.  Substitutions and Repurchases of Mortgage Loans that are not
                  "Qualified Mortgages"...............................................     74
   SECTION 2.06.  Authentication and Delivery of Certificates.........................     75
   SECTION 2.07.  REMIC Elections.....................................................     75
   SECTION 2.08.  [RESERVED]..........................................................     80
   SECTION 2.09.  Covenants of the Servicer...........................................     80
   SECTION 2.10.  [RESERVED]..........................................................     80
   SECTION 2.11.  Permitted Activities of the Issuing Entity..........................     81
   SECTION 2.12.  Qualifying Special Purpose Entity...................................     81
   SECTION 2.13.  Depositor Notification of NIM Notes.................................     81
ARTICLE III  ADMINISTRATION AND SERVICING OF MORTGAGE LOANS...........................     81
   SECTION 3.01.  Servicer to Service Mortgage Loans..................................     81
   SECTION 3.02.  Servicing and Subservicing; Enforcement of the Obligations of
                  Servicer............................................................     83
   SECTION 3.03.  Rights of the Depositor and the Trustee in Respect of the Servicer..     84
   SECTION 3.04.  Trustee to Act as Servicer..........................................     84
   SECTION 3.05.  Collection of Mortgage Loan Payments; Collection Account;
                  Certificate Account.................................................     85
   SECTION 3.06.  Collection of Taxes, Assessments and Similar Items; Escrow
                  Accounts............................................................     88
   SECTION 3.07.  Access to Certain Documentation and Information Regarding the
                  Mortgage Loans......................................................     89
   SECTION 3.08.  Permitted Withdrawals from the Collection Account and Certificate
                  Account.............................................................     89
   SECTION 3.09.  [RESERVED]..........................................................     91
   SECTION 3.10.  Maintenance of Hazard Insurance.....................................     91
   SECTION 3.11.  Enforcement of Due-On-Sale Clauses; Assumption Agreements...........     92
</TABLE>

                                       -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>                                                                                      <C>
   SECTION 3.12.  Realization Upon Defaulted Mortgage Loans; Determination of Excess
                  Proceeds; Special Loss Mitigation...................................     93
   SECTION 3.13.  Trustee to Cooperate; Release of Mortgage Files.....................     97
   SECTION 3.14.  Documents, Records and Funds in Possession of Servicer to be Held
                  for the Trustee.....................................................     98
   SECTION 3.15.  Servicing Compensation..............................................     99
   SECTION 3.16.  Access to Certain Documentation.....................................     99
   SECTION 3.17.  Annual Statement as to Compliance...................................     99
   SECTION 3.18.  Annual Independent Public Accountants' Servicing Statement;
                  Financial Statements.................................................   100
   SECTION 3.19.  Subordination of Liens..............................................    102
   SECTION 3.20.  Periodic Filings....................................................    103
   SECTION 3.21.  Indemnification by Trustee..........................................    106
   SECTION 3.22.  Indemnification by Servicer.........................................    107
   SECTION 3.23.  Prepayment Charge Reporting Requirements............................    107
   SECTION 3.24.  Information to the Trustee..........................................    108
   SECTION 3.25.  Indemnification.....................................................    108
   SECTION 3.26.  Solicitation........................................................    108
   SECTION 3.27.  High Cost Mortgage Loans............................................    109
   SECTION 3.28.  Rights of the NIMs Insurer..........................................    109
ARTICLE IV   DISTRIBUTIONS............................................................    109
   SECTION 4.01.  Advances............................................................    109
   SECTION 4.02.  Reduction of Servicing Compensation in Connection with Prepayment
                  Interest Shortfalls.................................................    110
   SECTION 4.03.  Distributions on the REMIC Interests................................    110
   SECTION 4.04.  Distributions.......................................................    111
   SECTION 4.05.  Monthly Statements to Certificateholders............................    121
ARTICLE V    THE CERTIFICATES.........................................................    125
   SECTION 5.01.  The Certificates....................................................    125
   SECTION 5.02.  Certificate Register; Registration of Transfer and Exchange of
                  Certificates........................................................    127
   SECTION 5.03.  Mutilated, Destroyed, Lost or Stolen Certificates...................    131
   SECTION 5.04.  Persons Deemed Owners...............................................    131
   SECTION 5.05.  Access to List of Certificateholders' Names and Addresses...........    131
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>                                                                                      <C>
   SECTION 5.06.  Book-Entry Certificates.............................................    132
   SECTION 5.07.  Notices to Depository...............................................    133
   SECTION 5.08.  Definitive Certificates.............................................    133
   SECTION 5.09.  Maintenance of Office or Agency.....................................    133
   SECTION 5.10.  Authenticating Agents...............................................    133
ARTICLE VI   THE DEPOSITOR AND THE SERVICER...........................................    134
   SECTION 6.01.  Respective Liabilities of the Depositor and the Servicer............    134
   SECTION 6.02.  Merger or Consolidation of the Depositor or the Servicer............    134
   SECTION 6.03.  Limitation on Liability of the Depositor, the Servicer and Others...    135
   SECTION 6.04.  Limitation on Resignation of Servicer...............................    136
   SECTION 6.05.  Errors and Omissions Insurance; Fidelity Bonds......................    136
ARTICLE VII  DEFAULT; TERMINATION OF SERVICER.........................................    137
   SECTION 7.01.  Events of Default...................................................    137
   SECTION 7.02.  Trustee to Act; Appointment of Successor............................    138
   SECTION 7.03.  Notification to Certificateholders..................................    139
ARTICLE VIII CONCERNING THE TRUSTEE...................................................    140
   SECTION 8.01.  Duties of the Trustee...............................................    140
   SECTION 8.02.  Certain Matters Affecting the Trustee...............................    141
   SECTION 8.03.  Trustee Not Liable for Certificates or Mortgage Loans...............    142
   SECTION 8.04.  Trustee May Own Certificates........................................    143
   SECTION 8.05.  Trustee's Fees and Expenses.........................................    143
   SECTION 8.06.  Indemnification and Expenses of Trustee.............................    143
   SECTION 8.07.  Eligibility Requirements for Trustee................................    144
   SECTION 8.08.  Resignation and Removal of Trustee..................................    145
   SECTION 8.09.  Successor Trustee...................................................    145
   SECTION 8.10.  Merger or Consolidation of Trustee..................................    146
   SECTION 8.11.  Appointment of Co-Trustee or Separate Trustee.......................    146
   SECTION 8.12.  Tax Matters.........................................................    147
ARTICLE IX   TERMINATION..............................................................    149
   SECTION 9.01.  Termination upon Liquidation or Repurchase of all Mortgage Loans....    149
   SECTION 9.02.  Final Distribution on the Certificates..............................    151
   SECTION 9.03.  Additional Termination Requirements.................................    152
</TABLE>

                                      -iii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>                                                                                      <C>
ARTICLE X    MISCELLANEOUS PROVISIONS.................................................    153
   SECTION 10.01. Amendment...........................................................    153
   SECTION 10.02. Counterparts........................................................    155
   SECTION 10.03. Governing Law.......................................................    155
   SECTION 10.04. Intention of Parties................................................    155
   SECTION 10.05. Notices.............................................................    156
   SECTION 10.06. Severability of Provisions..........................................    156
   SECTION 10.07. Assignment; Sales; Advance Facilities...............................    157
   SECTION 10.08. Limitation on Rights of Certificateholders..........................    158
   SECTION 10.09. Inspection and Audit Rights.........................................    159
   SECTION 10.10. Certificates Nonassessable and Fully Paid...........................    159
   SECTION 10.11. Compliance with Regulation AB.......................................    159
   SECTION 10.12. Third Party Rights..................................................    159
   SECTION 10.13. Additional Rights of the NIMs Insurer...............................    159
</TABLE>

                                      -iv-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           PAGE
                                                                                           ----
<S>                                                                                        <C>
EXHIBIT A     FORMS OF CERTIFICATES
EXHIBIT B     MORTGAGE LOAN SCHEDULE
EXHIBIT C     [RESERVED]
EXHIBIT D     FORM OF TRUSTEE CERTIFICATION
EXHIBIT E-1   FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT
EXHIBIT E-2   FORM OF TRANSFEROR'S AFFIDAVIT
EXHIBIT F     FORM OF TRANSFEROR CERTIFICATE
EXHIBIT G     FORM OF INVESTMENT LETTER (ACCREDITED INVESTOR)
EXHIBIT H     FORM OF RULE 144A INVESTMENT LETTER (QUALIFIED INSTITUTIONAL BUYER)
EXHIBIT I     FORM OF REQUEST FOR RELEASE
EXHIBIT J     [RESERVED]
EXHIBIT K     FORM OF BACK-UP CERTIFICATION OF TRUSTEE
EXHIBIT L     FORM OF OFFICER'S CERTIFICATE OF SERVICER
EXHIBIT M-1   FORM OF CLASS 1-A CAP CORRIDOR CONTRACT
EXHIBIT M-2   FORM OF CLASS 2-A CAP CORRIDOR CONTRACT
EXHIBIT M-3   FORM OF SUBORDINATE CERTIFICATE CAP CORRIDOR CONTRACT
EXHIBIT M-4   FORM OF CREDIT SUPPORT ANNEX RELATED TO THE CAP CORRIDOR CONTRACTS
EXHIBIT N     [RESERVED]
EXHIBIT O     FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER TO REGULATION S
              BOOK-ENTRY CERTIFICATE FROM A HOLDER OF A RULE 144A BOOK-ENTRY CERTIFICATE
              OR DEFINITIVE CERTIFICATE
EXHIBIT P     FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER PURSUANT TO RULE
              144A FROM A HOLDER OF A REGULATION S BOOK-ENTRY CERTIFICATE OR DEFINITIVE
              CERTIFICATE
EXHIBIT Q-1   FORM OF SWAP AGREEMENT
EXHIBIT Q-2   FORM OF CREDIT SUPPORT ANNEX RELATED TO THE SWAP AGREEMENT
EXHIBIT R     FORM OF ASSESSMENT OF COMPLIANCE
EXHIBIT S     SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
EXHIBIT T     FORM OF SARBANES-OXLEY CERTIFICATIONS
EXHIBIT U     FORM OF ITEM 1123 CERTIFICATION OF SERVICER
EXHIBIT V     FORM OF DELINQUENCY REPORT
EXHIBIT W     MOODY'S MORTGAGE LOAN DATA FILE
</TABLE>
SCHEDULE X
SCHEDULE Y
SCHEDULE Z

                                       -v-

<PAGE>

     POOLING AND SERVICING AGREEMENT, dated as of September 1, 2007 (the
"Agreement"), among MERRILL LYNCH MORTGAGE INVESTORS, INC., a Delaware
corporation, as depositor (the "Depositor"), HOME LOAN SERVICES, INC., a Nevada
corporation, as servicer (the "Servicer"), and LASALLE BANK NATIONAL
ASSOCIATION, a national banking association, as trustee (the "Trustee").

     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 (i) three real estate mortgage investment conduits,
(ii) the right to receive payments distributable to the Class P Certificates
pursuant to Section 4.04(b)(i) hereof, (iii) each Corridor Contract and the
Corridor Contract Account, (iv) the grantor trusts described in Section 2.07
hereof and (v) the Supplemental Interest Trust, which in turn will hold the Swap
Agreement. The SWAP REMIC will consist of all of the assets constituting the
Trust Fund (other than the assets described in clauses (ii), (iii), (iv) and (v)
above, other than the SWAP REMIC Regular Interests and other than the Lower Tier
REMIC Regular Interests) and will be evidenced by the SWAP REMIC Regular
Interests (which will be uncertificated and will represent the "regular
interests" in the SWAP REMIC) and the Class SWR Interest as the single "residual
interest" in the SWAP REMIC. The Lower Tier REMIC will consist of SWAP REMIC
Regular Interests and will be evidenced by the Lower Tier REMIC Regular
Interests (which will be uncertificated and will represent the "regular
interests" in the Lower Tier REMIC) and the Class LTR Interest as the single
"residual interest" in the Lower Tier REMIC. The Trustee will hold the Lower
Tier REMIC Regular Interests. The Upper Tier REMIC will consist of the Lower
Tier REMIC Regular Interests and will be evidenced by the REMIC Regular
Interests (which will represent the "regular interests" in the Upper Tier REMIC)
and the Residual Interest as the single "residual interest" in the Upper Tier
REMIC. The Class R Certificate will represent beneficial ownership of the Class
SWR Interest, the Class LTR Interest and the Residual Interest. The "latest
possible maturity date" for federal income tax purposes of all interests created
hereby will be the Latest Possible Maturity Date.

     All covenants and agreements made by the Sponsor in the FFFC Purchase
Agreement and by the Depositor and the Trustee herein with respect to the
Mortgage Loans and the other property constituting the Trust Fund are for the
benefit of the Holders from time to time of the Certificates and, to the extent
provided herein, the NIMs Insurer.

THE SWAP REMIC

     The following table sets forth the designations, initial principal balances
and interest rates for each interest in the SWAP REMIC:

<TABLE>
<CAPTION>
Class     Initial Principal Balance   Interest Rate
-------   -------------------------   -------------
<S>       <C>                         <C>
1-SW1         $106,205,972.015             (1)
1-SW1A        $  4,210,001.623             (2)
1-SW1B        $  4,210,001.623             (3)
1-SW2A        $  4,069,505.083             (2)
1-SW2B        $  4,069,505.083             (3)
1-SW3A        $  3,901,547.422             (2)
1-SW3B        $  3,901,547.422             (3)
1-SW4A        $  3,694,921.159             (2)
1-SW4B        $  3,694,921.159             (3)
</TABLE>

<PAGE>

<TABLE>
<S>       <C>                         <C>
1-SW5A        $  3,564,796.099             (2)
1-SW5B        $  3,564,796.099             (3)
1-SW6A        $  3,450,650.159             (2)
1-SW6B        $  3,450,650.159             (3)
1-SW7A        $  3,344,064.287             (2)
1-SW7B        $  3,344,064.287             (3)
1-SW8A        $  3,251,715.110             (2)
1-SW8B        $  3,251,715.110             (3)
1-SW9A        $  3,344,186.156             (2)
1-SW9B        $  3,344,186.156             (3)
1-SW10A       $  3,475,348.153             (2)
1-SW10B       $  3,475,348.153             (3)
1-SW11A       $  3,321,472.637             (2)
1-SW11B       $  3,321,472.637             (3)
1-SW12A       $  2,915,903.946             (2)
1-SW12B       $  2,915,903.946             (3)
1-SW13A       $  2,678,617.406             (2)
1-SW13B       $  2,678,617.406             (3)
1-SW14A       $  2,460,235.675             (2)
1-SW14B       $  2,460,235.675             (3)
1-SW15A       $  2,249,554.647             (2)
1-SW15B       $  2,249,554.647             (3)
1-SW16A       $  2,068,391.324             (2)
1-SW16B       $  2,068,391.324             (3)
1-SW17A       $  1,923,900.110             (2)
1-SW17B       $  1,923,900.110             (3)
1-SW18A       $  1,814,406.471             (2)
1-SW18B       $  1,814,406.471             (3)
1-SW19A       $  1,693,025.375             (2)
1-SW19B       $  1,693,025.375             (3)
1-SW20A       $  1,609,402.452             (2)
1-SW20B       $  1,609,402.452             (3)
1-SW21A       $  3,415,576.469             (2)
1-SW21B       $  3,415,576.469             (3)
1-SW22A       $  7,622,210.260             (2)
1-SW22B       $  7,622,210.260             (3)
1-SW23A       $  7,516,627.379             (2)
1-SW23B       $  7,516,627.379             (3)
1-SW24A       $  5,205,314.886             (2)
1-SW24B       $  5,205,314.886             (3)
1-SW25A       $  3,676,850.032             (2)
1-SW25B       $  3,676,850.032             (3)
1-SW26A       $  2,779,570.335             (2)
1-SW26B       $  2,779,570.335             (3)
1-SW27A       $  2,384,222.579             (2)
1-SW27B       $  2,384,222.579             (3)
</TABLE>

                                       -2-

<PAGE>

<TABLE>
<S>       <C>                         <C>
1-SW28A       $  2,122,161.298             (2)
1-SW28B       $  2,122,161.298             (3)
1-SW29A       $  1,903,063.115             (2)
1-SW29B       $  1,903,063.115             (3)
1-SW30A       $  1,689,536.518             (2)
1-SW30B       $  1,689,536.518             (3)
1-SW31A       $  1,483,592.762             (2)
1-SW31B       $  1,483,592.762             (3)
1-SW32A       $  1,323,389.779             (2)
1-SW32B       $  1,323,389.779             (3)
1-SW33A       $  1,298,394.915             (2)
1-SW33B       $  1,298,394.915             (3)
1-SW34A       $  1,288,244.191             (2)
1-SW34B       $  1,288,244.191             (3)
1-SW35A       $  1,171,442.022             (2)
1-SW35B       $  1,171,442.022             (3)
1-SW36A       $  1,110,239.331             (2)
1-SW36B       $  1,110,239.331             (3)
1-SW37A       $    945,151.696             (2)
1-SW37B       $    945,151.696             (3)
1-SW38A       $    883,581.923             (2)
1-SW38B       $    883,581.923             (3)
1-SW39A       $    813,174.360             (2)
1-SW39B       $    813,174.360             (3)
1-SW40A       $    772,550.589             (2)
1-SW40B       $    772,550.589             (3)
1-SW41A       $    686,186.255             (2)
1-SW41B       $    686,186.255             (3)
1-SW42A       $    654,844.105             (2)
1-SW42B       $    654,844.105             (3)
1-SW43A       $    604,057.803             (2)
1-SW43B       $    604,057.803             (3)
1-SW44A       $    558,128.322             (2)
1-SW44B       $    558,128.322             (3)
1-SW45A       $    516,978.282             (2)
1-SW45B       $    516,978.282             (3)
1-SW46A       $    508,226.305             (2)
1-SW46B       $    508,226.305             (3)
1-SW47A       $    525,595.107             (2)
1-SW47B       $    525,595.107             (3)
1-SW48A       $  2,112,299.642             (2)
1-SW48B       $  2,112,299.642             (3)
2-SW2         $145,651,630.655             (4)
2-SW1A        $  5,773,626.377             (5)
2-SW1B        $  5,773,626.377             (6)
2-SW2A        $  5,580,948.417             (5)
</TABLE>

                                       -3-

<PAGE>

<TABLE>
<S>       <C>                         <C>
2-SW2B        $  5,580,948.417             (6)
2-SW3A        $  5,350,610.078             (5)
2-SW3B        $  5,350,610.078             (6)
2-SW4A        $  5,067,241.341             (5)
2-SW4B        $  5,067,241.341             (6)
2-SW5A        $  4,888,786.901             (5)
2-SW5B        $  4,888,786.901             (6)
2-SW6A        $  4,732,246.341             (5)
2-SW6B        $  4,732,246.341             (6)
2-SW7A        $  4,586,073.713             (5)
2-SW7B        $  4,586,073.713             (6)
2-SW8A        $  4,459,425.390             (5)
2-SW8B        $  4,459,425.390             (6)
2-SW9A        $  4,586,240.844             (5)
2-SW9B        $  4,586,240.844             (6)
2-SW10A       $  4,766,117.347             (5)
2-SW10B       $  4,766,117.347             (6)
2-SW11A       $  4,555,091.363             (5)
2-SW11B       $  4,555,091.363             (6)
2-SW12A       $  3,998,891.554             (5)
2-SW12B       $  3,998,891.554             (6)
2-SW13A       $  3,673,475.094             (5)
2-SW13B       $  3,673,475.094             (6)
2-SW14A       $  3,373,984.825             (5)
2-SW14B       $  3,373,984.825             (6)
2-SW15A       $  3,085,055.353             (5)
2-SW15B       $  3,085,055.353             (6)
2-SW16A       $  2,836,606.676             (5)
2-SW16B       $  2,836,606.676             (6)
2-SW17A       $  2,638,450.390             (5)
2-SW17B       $  2,638,450.390             (6)
2-SW18A       $  2,488,290.029             (5)
2-SW18B       $  2,488,290.029             (6)
2-SW19A       $  2,321,827.125             (5)
2-SW19B       $  2,321,827.125             (6)
2-SW20A       $  2,207,146.048             (5)
2-SW20B       $  2,207,146.048             (6)
2-SW21A       $  4,684,146.031             (5)
2-SW21B       $  4,684,146.031             (6)
2-SW22A       $ 10,453,153.740             (5)
2-SW22B       $ 10,453,153.740             (6)
2-SW23A       $ 10,308,356.621             (5)
2-SW23B       $ 10,308,356.621             (6)
2-SW24A       $  7,138,606.114             (5)
2-SW24B       $  7,138,606.114             (6)
2-SW25A       $  5,042,458.468             (5)
</TABLE>

                                      -4-

<PAGE>

<TABLE>
<S>       <C>                         <C>
2-SW25B       $  5,042,458.468             (6)
2-SW26A       $  3,811,922.665             (5)
2-SW26B       $  3,811,922.665             (6)
2-SW27A       $  3,269,739.921             (5)
2-SW27B       $  3,269,739.921             (6)
2-SW28A       $  2,910,347.202             (5)
2-SW28B       $  2,910,347.202             (6)
2-SW29A       $  2,609,874.385             (5)
2-SW29B       $  2,609,874.385             (6)
2-SW30A       $  2,317,042.482             (5)
2-SW30B       $  2,317,042.482             (6)
2-SW31A       $  2,034,609.738             (5)
2-SW31B       $  2,034,609.738             (6)
2-SW32A       $  1,814,906.221             (5)
2-SW32B       $  1,814,906.221             (6)
2-SW33A       $  1,780,628.085             (5)
2-SW33B       $  1,780,628.085             (6)
2-SW34A       $  1,766,707.309             (5)
2-SW34B       $  1,766,707.309             (6)
2-SW35A       $  1,606,523.978             (5)
2-SW35B       $  1,606,523.978             (6)
2-SW36A       $  1,522,590.169             (5)
2-SW36B       $  1,522,590.169             (6)
2-SW37A       $  1,296,187.804             (5)
2-SW37B       $  1,296,187.804             (6)
2-SW38A       $  1,211,750.577             (5)
2-SW38B       $  1,211,750.577             (6)
2-SW39A       $  1,115,193.140             (5)
2-SW39B       $  1,115,193.140             (6)
2-SW40A       $  1,059,481.411             (5)
2-SW40B       $  1,059,481.411             (6)
2-SW41A       $    941,040.745             (5)
2-SW41B       $    941,040.745             (6)
2-SW42A       $    898,057.895             (5)
2-SW42B       $    898,057.895             (6)
2-SW43A       $    828,409.197             (5)
2-SW43B       $    828,409.197             (6)
2-SW44A       $    765,421.178             (5)
2-SW44B       $    765,421.178             (6)
2-SW45A       $    708,987.718             (5)
2-SW45B       $    708,987.718             (6)
2-SW46A       $    696,985.195             (5)
2-SW46B       $    696,985.195             (6)
2-SW47A       $    720,804.893             (5)
2-SW47B       $    720,804.893             (6)
2-SW48A       $  2,896,822.858             (5)
</TABLE>

                                       -5-

<PAGE>

<TABLE>
<S>       <C>                         <C>
2-SW48B       $  2,896,822.858             (6)
SWR                         (7)            (7)
</TABLE>

(1)  The interest rate on the Class 1-SW1 Interest shall be a per annum rate
     equal to the Group One Net WAC.

(2)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "1" and ending with the designation
     "A" shall be a per annum rate equal to 2 times the Group One Net WAC,
     subject to a maximum rate of 2 times the REMIC Swap Rate for such
     Distribution Date.

(3)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "1" and ending with the designation
     "B" shall be a per annum rate equal to the greater of (x) the excess, if
     any, of (i) 2 times the Group One Net WAC over (ii) 2 times the REMIC Swap
     Rate for such Distribution Date and (y) 0.00%.

(4)  The interest rate on the Class 2-SW2 Interest shall be a per annum rate
     equal to the Group Two Net WAC.

(5)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "2" and ending with the designation
     "A" shall be a per annum rate equal to 2 times the Group Two Net WAC,
     subject to a maximum rate of 2 times the REMIC Swap Rate for such
     Distribution Date.

(6)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "2" and ending with the designation
     "B" shall be a per annum rate equal to the greater of (x) the excess, if
     any, of (i) 2 times the Group Two Net WAC over (ii) 2 times the REMIC Swap
     Rate for such Distribution Date and (y) 0.00%.

(7)  The Class SWR Interest shall have no principal amount and shall bear no
     interest.

THE LOWER TIER REMIC

The following table sets forth the designations, initial principal balances,
interest rates, Corresponding Classes of Certificates and related Mortgage Group
for each interest in the Lower Tier REMIC:

<TABLE>
<CAPTION>
                                                         Class(es) of Corresponding
                                                      Certificates or Related Mortgage
Class     Initial Principal Balance   Interest Rate                 Group
-------   -------------------------   -------------   --------------------------------
<S>       <C>                         <C>             <C>
LT1-A                (1)                   (8)                     1-A, R
LT2-A1               (1)                   (8)                      2-A1
LT2-A2               (1)                   (8)                      2-A2
LT2-A3               (1)                   (8)                      2-A3
LTM-1                (1)                   (8)                       M-1
LTM-2                (1)                   (8)                       M-2
LTM-3                (1)                   (8)                       M-3
LTM-4                (1)                   (8)                       M-4
LTM-5                (1)                   (8)                       M-5
LTM-6                (1)                   (8)                       M-6
LTB-1                (1)                   (8)                       B-1
</TABLE>

                                      -6-

<PAGE>

<TABLE>
<S>       <C>                         <C>             <C>
LTB-2                (1)                   (8)                       B-2
LTB-3                (1)                   (8)                       B-3
LTIX                 (2)                   (8)                       N/A
LTII1A               (3)                   (8)                    Group One
LTII1B               (4)                   (9)                    Group One
LTII2A               (5)                   (8)                    Group Two
LTII2B               (6)                   (10)                   Group Two
LTIIX                (7)                   (8)                       N/A
LT-IO                (11)                  (11)                      N/A
LTR                  (12)                  (12)                      N/A
</TABLE>

(1)  The initial principal balance of each of these Lower Tier REMIC Regular
     Interests shall equal 1/4 of the initial Certificate Principal Balance of
     its Corresponding Certificates.

(2)  The initial principal balance of the Class LTIX Interest shall equal the
     excess of (i) 50% of the aggregate Cut-off Date Principal Balance of the
     Mortgage Loans over (ii) the initial principal balance of the Lower Tier
     REMIC I Marker Interests.

(3)  The initial principal balance of the Class LTII1A Interest shall equal
     0.05% of the excess of (i) the aggregate Cut-off Date Principal Balance of
     the Group One Mortgage Loans over (ii) the aggregate of the initial
     Certificate Principal Balances of Certificate Group One.

(4)  The initial principal balance of the Class LTII1B Interest shall equal
     0.05% of the aggregate Cut-off Date Principal Balance of the Group One
     Mortgage Loans.

(5)  The initial principal balance of the Class LTII2A Interest shall equal
     0.05% of the excess of (i) the aggregate Cut-off Date Principal Balance of
     the Group Two Mortgage Loans over (ii) the aggregate of the initial
     Certificate Principal Balances of Certificate Group Two.

(6)  The initial principal balance of the Class LTII2B Interest shall equal
     0.05% of the aggregate Cut-off Date Principal Balance of the Group Two
     Mortgage Loans.

(7)  The initial principal balance of the Class LTIIX Interest shall equal the
     excess of (i) 50% of the aggregate Cut-off Date Principal Balance of the
     Mortgage Loans over (ii) the initial principal balance of the Lower Tier
     REMIC II Marker Interests.

(8)  For each Distribution Date, the interest rate for each of the Lower Tier
     REMIC Regular Interests (other than the Class LTII1B, the Class LTII2B and
     the Class LT-IO Interests) shall be a per annum rate (but not less than
     zero) equal to the product of (i) the weighted average of the interest
     rates on the SWAP REMIC Regular Interests for such Distribution Date and
     (ii) a fraction the numerator of which is 30 and the denominator of which
     is the actual number of days in the Accrual Period for the LIBOR
     Certificates, provided however, that for any Distribution Date on which the
     Class LT-IO Interest is entitled to a portion of interest accruals on a
     SWAP REMIC Regular Interest ending with a designation "A" as described in
     footnote 11 below, such weighted average shall be computed by first
     subjecting the rate on such SWAP REMIC Regular Interest to a cap equal to
     Swap LIBOR for such Distribution Date.

(9)  For each Distribution Date, the interest rate for the Class LTII1B Interest
     shall be a per annum rate equal to the product of (i) the weighted average
     of the interest rates on the SWAP REMIC Regular Interests beginning with
     the designation "1" for such Distribution Date and (ii) a fraction the
     numerator of which is 30 and the denominator of which is the actual number
     of days in the Accrual Period for the LIBOR Certificates, provided,
     however, that for any Distribution Date on which the Class LT-IO Interest
     is entitled to a portion of interest accruals on a SWAP

                                      -7-

<PAGE>

     REMIC Regular Interest ending with a designation "A" as described in
     footnote 11 below, such weighted average shall be computed by first
     subjecting the rate on such SWAP REMIC Regular Interest to a cap equal to
     Swap LIBOR for such Distribution Date.

(10) For each Distribution Date, the interest rate for the Class LTII2B Interest
     shall be a per annum rate equal to the product of (i) the weighted average
     of the interest rates on the SWAP REMIC Regular Interests beginning with
     the designation "2" for such Distribution Date and (ii) a fraction the
     numerator of which is 30 and the denominator of which is the actual number
     of days in the Accrual Period for the LIBOR Certificates, provided,
     however, that for any Distribution Date on which the Class LT-IO Interest
     is entitled to a portion of interest accruals on a SWAP REMIC Regular
     Interest ending with a designation "A" as described in footnote 11 below,
     such weighted average shall be computed by first subjecting the rate on
     such SWAP REMIC Regular Interest to a cap equal to Swap LIBOR for such
     Distribution Date.

(11) The Class LT-IO Interest is an interest-only class that does not have a
     principal balance. For only those Distribution Dates listed in the first
     column of the table below, the Class LT-IO Interest shall be entitled to
     interest accrued on the SWAP REMIC Regular Interest listed in the second
     column below at a per annum rate equal to the excess, if any, of (i) the
     interest rate for such SWAP REMIC Regular Interest for such Distribution
     Date over (ii) Swap LIBOR for such Distribution Date.

<TABLE>
<CAPTION>
                       SWAP REMIC
Distribution Date   Regular Interest
-----------------   ----------------
<S>                 <C>
13                  Class 1-SW1A
                    Class 2-SW1A
13-14               Class 1-SW2A
                    Class 2-SW2A
13-15               Class 1-SW3A
                    Class 2-SW3A
13-16               Class 1-SW4A
                    Class 2-SW4A
13-17               Class 1-SW5A
                    Class 2-SW5A
13-18               Class 1-SW6A
                    Class 2-SW6A
13-19               Class 1-SW7A
                    Class 2-SW7A
13-20               Class 1-SW8A
                    Class 2-SW8A
13-21               Class 1-SW9A
                    Class 2-SW9A
13-22               Class 1-SW10A
                    Class 2-SW10A
13-23               Class 1-SW11A
                    Class 2-SW11A
13-24               Class 1-SW12A
                    Class 2-SW12A
13-25               Class 1-SW13A
                    Class 2-SW13A
13-26               Class 1-SW14A
                    Class 2-SW14A
13-27               Class 1-SW15A
                    Class 2-SW15A
13-28               Class 1-SW16A
</TABLE>

                                      -8-

<PAGE>

<TABLE>
<S>                 <C>
                    Class 2-SW16A
13-29               Class 1-SW17A
                    Class 2-SW17A
13-30               Class 1-SW18A
                    Class 2-SW18A
13-31               Class 1-SW19A
                    Class 2-SW19A
13-32               Class 1-SW20A
                    Class 2-SW20A
13-33               Class 1-SW21A
                    Class 2-SW21A
13-34               Class 1-SW22A
                    Class 2-SW22A
13-35               Class 1-SW23A
                    Class 2-SW23A
13-36               Class 1-SW24A
                    Class 2-SW24A
13-37               Class 1-SW25A
                    Class 2-SW25A
13-38               Class 1-SW26A
                    Class 2-SW26A
13-39               Class 1-SW27A
                    Class 2-SW27A
13-40               Class 1-SW28A
                    Class 2-SW28A
13-41               Class 1-SW29A
                    Class 2-SW29A
13-42               Class 1-SW30A
                    Class 2-SW30A
13-43               Class 1-SW31A
                    Class 2-SW31A
13-44               Class 1-SW32A
                    Class 2-SW32A
13-45               Class 1-SW33A
                    Class 2-SW33A
13-46               Class 1-SW34A
                    Class 2-SW34A
13-47               Class 1-SW35A
                    Class 2-SW35A
13-48               Class 1-SW36A
                    Class 2-SW36A
13-49               Class 1-SW37A
                    Class 2-SW37A
13-50               Class 1-SW38A
                    Class 2-SW38A
13-51               Class 1-SW39A
                    Class 2-SW39A
13-52               Class 1-SW40A
                    Class 2-SW40A
13-53               Class 1-SW41A
                    Class 2-SW41A
13-54               Class 1-SW42A
                    Class 2-SW42A
</TABLE>

                                      -9-

<PAGE>

<TABLE>
<S>                 <C>
13-55               Class 1-SW43A
                    Class 2-SW43A
13-56               Class 1-SW44A
                    Class 2-SW44A
13-57               Class 1-SW45A
                    Class 2-SW45A
13-58               Class 1-SW46A
                    Class 2-SW46A
13-59               Class 1-SW47A
                    Class 2-SW47A
13-60               Class 1-SW48A
                    Class 2-SW48A
</TABLE>

(12) The Class LTR Interest shall have no principal amount and shall bear no
     interest.

UPPER TIER REMIC

The following table sets forth the designation, the initial principal balances,
the interest rates and Classes of Related Certificates for each of the interests
in the Upper Tier REMIC.

<TABLE>
<CAPTION>
                                  Initial Principal          Class of Related
Class                                   Balance       Rate     Certificates
-----                             -----------------   ----   ----------------
<S>                               <C>                 <C>    <C>
UT1-A                                    (1)           (2)         1-A
UT2-A1                                   (1)           (2)         2-A1
UT2-A2                                   (1)           (2)         2-A2
UT2-A3                                   (1)           (2)         2-A3
UTM-1                                    (1)           (2)         M-1
UTM-2                                    (1)           (2)         M-2
UTM-3                                    (1)           (2)         M-3
UTM-4                                    (1)           (2)         M-4
UTM-5                                    (1)           (2)         M-5
UTM-6                                    (1)           (2)         M-6
UTB-1                                    (1)           (2)         B-1
UTB-2                                    (1)           (2)         B-2
UTB-3                                    (1)           (2)         B-3
Uncertificated Class C Interest          (3)           (3)         N/A
UT-IO                                    (4)           (4)         N/A
Residual Interest                        (1)           (2)         R
</TABLE>

(1)  The initial principal balance of each of these REMIC Regular Interests and
     the Residual Interest shall equal the initial principal balance of its
     Class of Related Certificates.

(2)  The interest rates on each of these REMIC Regular Interests and the
     Residual Interest shall be an annual rate equal to the Pass-Through Rate
     for the Class of Related Certificates, provided that in lieu of the
     applicable Available Funds Cap set forth in the definition of an applicable
     Pass-Through Rate, the applicable Upper Tier REMIC Net WAC Cap shall be
     used.

(3)  The Uncertificated Class C Interest shall have an initial principal balance
     equal to the initial Overcollateralization Amount. The Uncertificated Class
     C Interest shall accrue interest on a notional balance set

                                      -10-

<PAGE>

     forth in the definition of Class C Current Interest at a rate equal to the
     Class C Distributable Interest Rate. The Uncertificated Class C Interest
     shall be represented by the Class C Certificates.

(4)  The Class UT-IO Interest shall have no principal amount and will not have
     an interest rate, but will be entitled to 100% of the interest accrued with
     respect to the Class LT-IO Interest. The Class UT-IO Interest shall be
     represented by the Class C Certificates.

THE CERTIFICATES

     The following table sets forth the Class designation, interest rate and
initial Class principal amount for each Class of Certificates comprising
interests in the Trust Fund.

<TABLE>
<CAPTION>
Class   Initial Class Principal Amount   Interest Rate
-----   ------------------------------   -------------
<S>     <C>                              <C>
1-A     (1)                              (2)
2-A1    (1)                              (2)
2-A2    (1)                              (2)
2-A3    (1)                              (2)
M-1     (1)                              (2)
M-2     (1)                              (2)
M-3     (1)                              (2)
M-4     (1)                              (2)
M-5     (1)                              (2)
M-6     (1)                              (2)
B-1     (1)                              (2)
B-2     (1)                              (2)
B-3     (1)                              (2)
C       (3)                              (3)
P       (4)                              (4)
R       (1)                              (2)(5)
</TABLE>

(1)  Each of these Classes of Certificates shall have initial principal balances
     as set forth in Section 5.01 hereof.

(2)  Each of these Classes of Certificates shall bear interest at a per annum
     rate equal to the Pass-Through Rate for such Certificates set forth in the
     definitions herein.

(3)  For federal income tax purposes, the Class C Certificate shall represent
     (i) the right to receive all distributions with respect to the REMIC
     Regular Interests represented by the Uncertificated Class C Interest and
     the Class UT-IO Interest and (ii) certain rights and obligations with
     respect to notional principal contracts as described in Section 2.07.

(4)  The Class P Certificates shall be entitled to the amounts distributable
     pursuant to Section 4.04(b) hereof and shall not represent a REMIC regular
     interest.

(5)  The Class R Interest represents ownership of the Class SWR Interest, the
     Class LTR Interest and the Residual Interest.

          In consideration of the mutual agreements herein contained, the
     Depositor, the Servicer and the Trustee hereby agree as follows:

                                      -11-
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

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

     Accepted Servicing Practices: The Servicer's normal servicing practices,
which will conform to the mortgage servicing practices of prudent mortgage
lending institutions that service for their own account mortgage loans of the
same type as the Mortgage Loans in the jurisdictions in which the related
Mortgaged Properties are located.

     Accommodated Mortgage Loan: Any Mortgage Loan listed as an "accommodated"
Mortgage Loan on the Mortgage Loan Schedule.

     Accountant's Attestation: As defined in Section 3.18(b) hereof.

     Accrual Period: With respect to each Class of LIBOR Certificates, their
Corresponding REMIC Regular Interests and the Lower Tier REMIC Interests and any
Distribution Date, the period commencing on the immediately preceding
Distribution Date (or, in the case of the first Distribution Date, the Closing
Date) and ending on the day immediately preceding such Distribution Date and
with respect to the SWAP REMIC Regular Interests and any Distribution Date, the
calendar month immediately preceding the month in which such Distribution Date
occurs. All calculations of interest on each Class of LIBOR Certificates, their
Corresponding REMIC Regular Interests and the Lower Tier REMIC Interests will be
made on the basis of the actual number of days elapsed in the related Accrual
Period and a 360 day year and all calculations of interest on the SWAP REMIC
Regular Interests will be made on the basis of a 360-day year consisting of
twelve 30-day months.

     Additional Form 10-D Disclosure: As defined in Section 3.20 hereof.

     Adjustable Rate Mortgage Loan: A Mortgage Loan identified in the Mortgage
Loan Schedule as having a Mortgage Rate that is adjustable.

     Adjustment Date: As to each Adjustable Rate Mortgage Loan, each date on
which the related Mortgage Rate is subject to adjustment, as provided in the
related Mortgage Note.

     Adjustment Date Waiver: With respect to each Accommodated Mortgage Loan,
the modification effected pursuant to a letter from the Servicer to the
Mortgagor of the related Mortgage Note that caused the initial Adjustment Date
and mortgage margin value with respect to such Accommodated Mortgage Loan to be
amended such that each will occur and become effective, respectively, in
connection with the sixty-first Monthly Payment due thereunder.

     Advance: The aggregate of the advances required to be made by the Servicer
with respect to any Distribution Date pursuant to Section 4.01, the amount of
any such advances being equal to the sum of the aggregate amount of all payments
of principal and interest (or, with respect to the interest-only Mortgage Loans,
payments of scheduled interest) (net of the Servicing Fee) on the related
Mortgage Loans that were due during the applicable Due Period and not received
as of the close of business on the related Determination Date, except as
provided in Section 4.01 hereof, less the aggregate amount of any

                                      -12-

<PAGE>

such Delinquent payments that the Servicer has determined would constitute a
Non-Recoverable Advance were an advance to be made with respect thereto;
provided, however, that with respect to (i) any Mortgage Loan that is 150 days
delinquent or more, (ii) shortfalls in principal and interest due to bankruptcy
proceedings, the application of the Relief Act or similar laws or certain
permitted modifications of the Mortgage Loans and (iii) the principal portion of
any amount paid on a Balloon Loan, there will be no obligation to make advances
and, provided further, however, that with respect to any Mortgage Loan that has
been converted to an REO Property which is less than 150 days delinquent, the
obligation to make Advances shall only be to payments of interest (subject to
the exceptions described above and net of the related Servicing Fees), to be
calculated after taking into account rental income.

     Advance Facility: A financing or other facility as described in Section
10.07.

     Advancing Person: A Person to whom the Servicer's rights under this
Agreement to be reimbursed for any Advances or Servicing Advances have been
assigned pursuant to Section 10.07.

     Affected Mortgage Loans: Mortgage Loans that are sixty (60) or more days
Delinquent, including for this purpose (x) (i) any such Mortgage Loans that were
repurchased from the Issuing Entity, (ii) Mortgage Loans that were substituted
by the Sponsor and (iii) Mortgage Loans that have been subject to a Servicing
Modification, in each case during the period which includes the previous twelve
(12) Distribution Dates, (y) Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Issuing Entity, and (z) Mortgage
Loans in bankruptcy and foreclosure.

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

     Aggregate Certificate Principal Balance: For any date of determination, the
sum of the Class 1-A Certificate Principal Balance, the Class 2-A1 Certificate
Principal Balance, the Class 2-A2 Certificate Principal Balance, the Class 2-A3
Certificate Principal Balance, the Class R Certificate Principal Balance, the
Class M-1 Certificate Principal Balance, the Class M-2 Certificate Principal
Balance, the Class M-3 Certificate Principal Balance, the Class M-4 Certificate
Principal Balance, the Class M-5 Certificate Principal Balance, the Class M-6
Certificate Principal Balance, the Class B-1 Certificate Principal Balance, the
Class B-2 Certificate Principal Balance and the Class B-3 Certificate Principal
Balance, in each case as of such date of determination.

     Agreement: This Pooling and Servicing Agreement and any and all amendments
or supplements hereto made in accordance with the terms herein.

     Applied Realized Loss Amount: With respect to any Distribution Date, the
amount, if any, by which the sum of (i) the Aggregate Certificate Principal
Balance and (ii) the Class C Certificate Principal Balance after distributions
of principal on such Distribution Date exceeds the aggregate Stated Principal
Balance of the Mortgage Loans as of such Distribution Date.

     Appraised Value: With respect to a Mortgage Loan the proceeds of which were
used to purchase the related Mortgaged Property, the "Appraised Value" of a
Mortgaged Property is the lesser of (1) the appraised value based on an
appraisal made for the Sponsor by an independent fee appraiser at the time of

                                      -13-

<PAGE>

the origination of the related Mortgage Loan, and (2) the sales price of such
Mortgaged Property at such time of origination. With respect to a Mortgage Loan
the proceeds of which were used to refinance an existing mortgage loan, the
"Appraised Value" is the appraised value of the Mortgaged Property based upon
the appraisal obtained at the time of refinancing.

     Assessment of Compliance: As defined in Section 3.18(a) hereof.

     Assignment of Mortgage: An assignment of the Mortgage, notice of transfer
or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged Property is located to reflect of
record the sale and assignment of the Mortgage Loan to the Trustee, which
assignment, notice of transfer or equivalent instrument may, if permitted by
law, be in the form of one or more blanket assignments covering Mortgages
secured by Mortgaged Properties located in the same county.

     Authenticating Agent: As defined in Section 5.10.

     Available Funds Cap: Any of the Class 1-A Available Funds Cap, the Class
2-A Available Funds Cap or the Weighted Average Available Funds Cap.

     Balloon Loan: A Mortgage Loan having an original term to stated maturity of
approximately 15 or 30 years which provides for level monthly payments of
principal and interest based on a 30-, 40- or 50-year amortization schedule,
with a balloon payment of the remaining outstanding principal balance due on
such Mortgage Loan at its stated maturity.

     Book-Entry Certificates: Any of the Certificates that shall be registered
in the name of the Depository or its nominee, the ownership of which is
reflected on the books of the Depository or on the books of a Person maintaining
an account with the Depository (directly, as a "Depository Participant", or
indirectly, as an indirect participant in accordance with the rules of the
Depository and as described in Section 5.06). As of the Closing Date, each of
the Class A (other than the Class R Certificate), Class M and Class B
Certificates constitutes a Class of Book-Entry Certificates.

     Business Day: Any day other than (1) a Saturday or a Sunday, (2) a day on
which banking institutions in the State of Illinois, State of Pennsylvania or in
the City of New York, New York are authorized or obligated by law or executive
order to be closed, or (3) with respect to Home Loan Services, Inc. only, a day
on which the New York Stock Exchange is closed.

     Cap Contract Counterparty: The Bank of New York, and any successor thereto.

     Certificate: Any one of the certificates of any Class executed by the
Trustee and authenticated by the Authenticating Agent in substantially the forms
attached hereto as Exhibit A.

     Certificate Account: The separate Eligible Account created and maintained
by the Trustee pursuant to Section 3.05(e) in the name of the Trustee for the
benefit of the Certificateholders and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Merrill Lynch First
Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-5." Funds in the Certificate Account shall be held in trust for the
Certificateholders for the uses and purposes set forth in this Agreement.

                                      -14-

<PAGE>

     Certificate Group: Either of Certificate Group One or Certificate Group
Two.

     Certificate Group One: The Class 1-A and Class R Certificates. For purposes
of Section 2.07 hereof, Certificate Group One shall be related to Group One.

     Certificate Group Two: The Class 2-A Certificates. For purposes of Section
2.07 hereof, Certificate Group Two shall be related to Group Two.

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

     Certificate Principal Balance: As to any Certificate and as of any
Distribution Date, the Initial Certificate Principal Balance of such Certificate
less the sum of (1) all amounts distributed with respect to such Certificate in
reduction of the Certificate Principal Balance thereof on previous Distribution
Dates pursuant to Section 4.04, and (2) any Applied Realized Loss Amounts
allocated to such Certificate on previous Distribution Dates pursuant to Section
4.04(i). On each Distribution Date, after all distributions of principal on such
Distribution Date, a portion of the Class C Interest Carry Forward Amount in an
amount equal to the excess of the Overcollateralization Amount on such
Distribution Date over the Overcollateralization Amount as of the preceding
Distribution Date (or, in the case of the first Distribution Date, the initial
Overcollateralization Amount (based on the Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date)) will be added to the aggregate
Certificate Principal Balance of the Class C Certificates (on a pro rata basis).
Notwithstanding the immediately preceding sentence, however, to the extent any
excess referred to in the immediately preceding sentence is attributable to
distributions of proceeds of the Swap Agreement, such sentence shall be applied
by substituting "Class C Unpaid Realized Loss Amount" for "Class C Interest
Carry Forward Amount". Notwithstanding the foregoing on any Distribution Date
relating to a Due Period in which a Subsequent Recovery has been received by the
Servicer, the Certificate Principal Balance of any Class of Certificates then
outstanding for which any Applied Realized Loss Amount has been allocated will
be increased, in order of seniority, by an amount equal to the lesser of (i) the
Unpaid Realized Loss Amount for such Class of Certificates and (ii) the total of
any Subsequent Recovery distributed on such date to the Certificateholders
(reduced by the amount of the increase in the Certificate Principal Balance of
any more senior Class of Certificates pursuant to this sentence on such
Distribution Date).

     Certificate Register: The register maintained pursuant to Section 5.02(a)
hereof.

     Certificateholder or Holder: The Person in whose name a Certificate is
registered in the Certificate Register (initially, Cede & Co., as nominee for
the Depository) in the case of any Class of Regular Certificates or the Class R
Certificate, except that solely for the purpose of giving any consent pursuant
to this Agreement, any Certificate registered in the name of the Depositor or
any Affiliate of the Depositor 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.

                                      -15-

<PAGE>

     Class: All Certificates bearing the same Class designation as set forth in
Section 5.01 hereof.

     Class 1-A Available Funds Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest on the Mortgage Loans in Group One based on the Net Mortgage
Rates in effect on the related Due Date, less the pro rata portion (calculated
based on the ratio of the Stated Principal Balance of the Group One Mortgage
Loans to the Stated Principal Balance of the total pool of Mortgage Loans)
allocable to the Group One Mortgage Loans of any Net Swap Payments or Swap
Termination Payments (other than Defaulted Swap Termination Payments) owed to
the Swap Counterparty for such Distribution Date and (y) the aggregate Stated
Principal Balance of the Mortgage Loans in Group One as of the first day of the
related Accrual Period (or, in the case of the first Distribution Date, as of
the Cut-off Date) and (iii) a fraction, the numerator of which is 30, and the
denominator of which is the actual number of days in the related Accrual Period.
The Class 1-A Available Funds Cap shall relate to the Class 1-A and Class R
Certificates.

     Class 1-A Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class 1-A Certificates.

     Class 1-A Certificates: Any Certificate designated as a "Class 1-A
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class 1-A Corridor Contract: The confirmation and agreement, including the
schedule thereto and the related credit support annex (attached as Exhibit M-4
hereto), between the Trustee on behalf of the Issuing Entity and the Cap
Contract Counterparty (attached as Exhibit M-1 hereto), with respect to the
Class 1-A and Class R Certificates.

     Class 1-A Corridor Contract Notional Balance: With respect to any
Distribution Date, the Class 1-A Corridor Contract Notional Balance set forth
for such Distribution Date in the Class 1-A LIBOR Table (attached as Schedule I
to Exhibit M-1 hereto).

     Class 1-A Corridor Contract Termination Date: The Distribution Date in June
2014.

     Class 1-A Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class 1-A Pass-Through Rate on
the Class 1-A Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class 1-A
Current Interest or a Class 1-A Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class 1-A
Certificates.

     Class 1-A Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class 1-A Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
1-A Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class 1-A Pass-Through Rate for the
related Accrual Period.

                                      -16-

<PAGE>

     Class 1-A Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.8500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 1.7000% per annum.

     Class 1-A Maximum Rate Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest that would have been due on the Group One Mortgage Loans had
the Adjustable Rate Mortgage Loans provided for interest at their maximum
lifetime Net Mortgage Rates and the Fixed Rate Mortgage Loans provided for
interest at their Net Mortgage Rates less the pro rata portion (calculated based
on the ratio of the Stated Principal Balance of the Group One Mortgage Loans to
the Stated Principal Balance of the total pool of Mortgage Loans) allocable to
the Group One Mortgage Loans of any Net Swap Payments or Swap Termination
Payments owed to the Swap Counterparty for such Distribution Date (other than
Defaulted Swap Termination Payments), and (y) the aggregate Stated Principal
Balance of the Group One Mortgage Loans as of the first day of the related
Accrual Period (or, in the case of the first Distribution Date, as of the
Cut-off Date) and (iii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the related Accrual Period.
The Class 1-A Maximum Rate Cap shall relate to Class 1-A and Class R
Certificates.

     Class 1-A Pass-Through Rate: For the first Distribution Date, 5.97188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class 1-A Margin, (2) the Class 1-A Available Funds Cap for such
Distribution Date and (3) the Class 1-A Maximum Rate Cap for such Distribution
Date.

     Class 1-A Principal Distribution Amount: As of any Distribution Date, the
amount equal to the lesser of (i) the aggregate Certificate Principal Balance of
the Class 1-A and Class R Certificates and (ii) the product of (x) the Group One
Principal Distribution Percentage and (y) the Class A Principal Distribution
Amount; provided, however, that (A) with respect to any Distribution Date on
which the Class 1-A and Class R Certificates are outstanding and the Certificate
Principal Balances of the Class 2-A Certificates is reduced to zero, the Class
2-A Principal Distribution Amount in excess of the amount necessary to reduce
the Certificate Principal Balance of the Class 2-A Certificates to zero will be
applied to increase the Class 1-A Principal Distribution Amount and (B) with
respect to any Distribution Date thereafter, the Class 1-A Principal
Distribution Amount will equal the Class A Principal Distribution Amount.

     Class 1-A Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Group One Corridor Contract, a rate equal
to the lesser of One-Month LIBOR and (x) 10.150% per annum for the Distribution
Dates from October 2007 through September 2008 and (y) 12.000% per annum for the
Distribution Dates from August 2011 through June 2014.

     Class 2-A Available Funds Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest on the Group Two Mortgage Loans based on the Net Mortgage
Rates in effect on the related Due Date, less the pro rata portion (calculated
based on the ratio of the Stated Principal Balance of the Group Two Mortgage
Loans to the Stated Principal Balance of the total pool of Mortgage Loans)
allocable to the Group Two Mortgage Loans of any Net Swap Payments or Swap
Termination Payments (other than Defaulted Swap Termination Payments) owed to
the Swap Counterparty for such Distribution Date, and (y) the aggregate Stated
Principal Balance of the Group Two Mortgage Loans as of the first day of the
related Accrual Period (or, in the case of the first Distribution Date, as of
the Cut-off Date) and (iii) a fraction, the

                                      -17-

<PAGE>

numerator of which is 30 and the denominator of which is the actual number of
days in the related Accrual Period. The Class 2-A Available Funds Cap shall
relate to the Class 2-A Certificates.

     Class 2-A Certificates: Any of the Class 2-A1, Class 2-A2 and Class 2-A3
Certificates.

     Class 2-A Corridor Contract: The confirmation and agreement, including the
schedule thereto and the related credit support annex (attached as Exhibit M-4
hereto), between the Trustee on behalf of the Issuing Entity and the Cap
Contract Counterparty (attached as Exhibit M-2 hereto), with respect to the
Class 2-A Certificates.

     Class 2-A Corridor Contract Notional Balance: With respect to any
Distribution Date, the Class 2-A Corridor Contract Notional Balance set forth
for such Distribution Date in the Class 2-A LIBOR Cap Table (attached as
Schedule I to Exhibit M-2 hereto).

     Class 2-A Corridor Contract Termination Date: The Distribution Date in
February 2014.

     Class 2-A Maximum Rate Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest that would have been due on the Group Two Mortgage Loans had
the Adjustable Rate Mortgage Loans provided for interest at their maximum
lifetime Net Mortgage Rates and the Fixed Rate Mortgage Loans provided for
interest at their Net Mortgage Rates less the pro rata portion (calculated based
on the ratio of the Stated Principal Balance of the Group Two Mortgage Loans to
the Stated Principal Balance of the total pool of Mortgage Loans) allocable to
the Group Two Mortgage Loans of any Net Swap Payments or Swap Termination
Payments owed to the Swap Counterparty for such Distribution Date (other than
Defaulted Swap Termination Payments), and (y) the aggregate Stated Principal
Balance of the Group Two Mortgage Loans as of the first day of the related
Accrual Period (or, in the case of the first Distribution Date, as of the
Cut-off Date) and (iii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the related Accrual Period.
The Class 2-A Maximum Rate Cap shall relate to the Class 2-A Certificates.

     Class 2-A Principal Distribution Amount: As of any Distribution Date, the
amount equal to the lesser of (i) the aggregate Certificate Principal Balance of
the Class 2-A Certificates and (ii) the product of (x) the Group Two Principal
Distribution Percentage and (y) the Class A Principal Distribution Amount;
provided, however, that (A) with respect to any Distribution Date on which the
Class 2-A Certificates are outstanding and the Certificate Principal Balances of
the Class 1-A and Class R Certificates is reduced to zero, the Group One
Principal Distribution Amount in excess of the amount necessary to reduce the
Certificate Principal Balance of the Class 1-A Certificates and Class R
Certificates to zero will be applied to increase the Class 2-A Principal
Distribution Amount and (B) with respect to any Distribution Date thereafter,
the Class 2-A Principal Distribution Amount will equal the Class A Principal
Distribution Amount.

     Class 2-A Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Class 2-A Corridor Contract, a rate equal
to the lesser of One-Month LIBOR and (x) 9.490% per annum for the Distribution
Dates from October 2007 through September 2008 and (y) 12.000% per annum for the
Distribution Dates from August 2011 through February 2014.

                                      -18-

<PAGE>

     Class 2-A1 Certificate: Any Certificate designated as a "Class 2-A1
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class 2-A1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class 2-A1 Certificates.

     Class 2-A1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class 2-A1 Pass-Through Rate on
the Class 2-A1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class 2-A1
Current Interest or a Class 2-A1 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class 2-A1
Certificates.

     Class 2-A1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class 2-A1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
2-A1 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class 2-A1 Pass-Through Rate for the
related Accrual Period.

     Class 2-A1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.7000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 1.4000% per annum.

     Class 2-A1 Pass-Through Rate: For the first Distribution Date, 5.82188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class 2-A1 Margin, (2) the Class 2-A Available Funds Cap for such
Distribution Date and (3) the Class 2-A Maximum Rate Cap for such Distribution
Date.

     Class 2-A2 Certificate: Any Certificate designated as a "Class 2-A2
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class 2-A2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class 2-A2 Certificates.

     Class 2-A2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class 2-A2 Pass-Through Rate on
the Class 2-A2 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class 2-A2
Current Interest or a Class 2-A2 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class 2-A2
Certificates.

     Class 2-A2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class 2-A2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
2-A2 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class 2-A2 Pass-Through Rate for the
related Accrual Period.

                                      -19-

<PAGE>

     Class 2-A2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 1.0000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 2.0000% per annum.

     Class 2-A2 Pass-Through Rate: For the first Distribution Date, 6.12188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class 2-A2 Margin, (2) the Class 2-A Available Funds Cap for such
Distribution Date and (3) the Class 2-A Maximum Rate Cap for such Distribution
Date.

     Class 2-A3 Certificate: Any Certificate designated as a "Class 2-A3
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class 2-A3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class 2-A3 Certificates.

     Class 2-A3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class 2-A3 Pass-Through Rate on
the Class 2-A3 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class 2-A3
Current Interest or a Class 2-A3 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class 2-A3
Certificates.

     Class 2-A3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class 2-A3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
2-A3 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class 2-A3 Pass-Through Rate for the
related Accrual Period.

     Class 2-A3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 1.2500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 2.5000% per annum.

     Class 2-A3 Pass-Through Rate: For the first Distribution Date, 6.37188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class 2-A3 Margin, (2) the Class 2-A Available Funds Cap for such
Distribution Date and (3) the Class 2-A Maximum Rate Cap for such Distribution
Date.

     Class A Certificate Principal Balance: As of any date of determination, the
sum of the Class 1-A Certificate Principal Balance, the Class 2-A1 Certificate
Principal Balance, the Class 2-A2 Certificate Principal Balance, the Class 2-A3
Certificate Principal Balance and the Class R Certificate Principal Balance.

     Class A Certificates: Any of the Class 1-A Certificates, the Class 2-A
Certificates and the Class R Certificates.

     Class A Principal Distribution Amount: With respect to any Distribution
Date (1) prior to the related Stepdown Date or any Distribution Date on which a
Stepdown Trigger Event exists, 100% of the

                                      -20-

<PAGE>

Principal Distribution Amount for such Distribution Date and (2) on or after the
Stepdown Date where a Stepdown Trigger Event does not exist, the excess of (A)
the Class A Certificate Principal Balance immediately prior to such Distribution
Date over (B) the lesser of (i) 43.80% of the aggregate Stated Principal Balance
of the Mortgage Loans as of such Distribution Date and (ii) the excess of the
aggregate Stated Principal Balance of the Mortgage Loans as of such Distribution
Date over the Minimum Required Overcollateralization Amount; provided, however,
that in no event will the Class A Principal Distribution Amount with respect to
any Distribution Date exceed the aggregate Certificate Principal Balance of the
Class A Certificates.

     Class B Certificates: Any of the Class B-1, Class B-2 and Class B-3
Certificates.

     Class B-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-1 Certificates.

     Class B-1 Certificate: Any Certificate designated as a "Class B-1
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class B-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-1 Certificates.

     Class B-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-1 Pass-Through Rate on
the Class B-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class B-1
Current Interest or a Class B-1 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class B-1
Certificates.

     Class B-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-1 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class B-1 Pass-Through Rate for the
related Accrual Period.

     Class B-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.5000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.7500% per annum.

     Class B-1 Pass-Through Rate: For the first Distribution Date, 7.62188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-1 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance and the
Class M Certificate Principal Balance, have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of

                                      -21-

<PAGE>

(1) the sum of (A) the Class A Certificate Principal Balance (after taking into
account distributions of the Class A Principal Distribution Amount on such
Distribution Date), (B) the Class M-1 Certificate Principal Balance (after
taking into account distributions of the Class M-1 Principal Distribution Amount
on such Distribution Date), (C) the Class M-2 Certificate Principal Balance
(after taking into account distributions of the Class M-2 Principal Distribution
Amount on such Distribution Date), (D) the Class M-3 Certificate Principal
Balance (after taking into account distributions of the Class M-3 Principal
Distribution Amount on such Distribution Date), (E) the Class M-4 Certificate
Principal Balance (after taking into account distributions of the Class M-4
Principal Distribution Amount on such Distribution Date), (F) the Class M-5
Certificate Principal Balance (after taking into account distributions of the
Class M-5 Principal Distribution Amount on such Distribution Date), (G) the
Class M-6 Certificate Principal Balance (after taking into account distributions
of the Class M-6 Principal Distribution Amount on such Distribution Date) and
(H) the Class B-1 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 80.20% of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date and (B) the excess of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A Certificates and Class M
Certificates has been reduced to zero, the Class B-1 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-1 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A and Class M
Certificates and (II) in no event will the Class B-1 Principal Distribution
Amount with respect to any Distribution Date exceed the Class B-1 Certificate
Principal Balance.

     Class B-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of the Class B-1 Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance."

     Class B-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-2 Certificates.

     Class B-2 Certificate: Any Certificate designated as a "Class B-2
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class B-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-2 Certificates.

     Class B-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-2 Pass-Through Rate on
the Class B-2 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class B-2
Current Interest or a Class B-2 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class B-2
Certificates.

                                      -22-

<PAGE>

     Class B-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-2 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class B-2 Pass-Through Rate for the
related Accrual Period.

     Class B-2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.5000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.7500% per annum.

     Class B-2 Pass-Through Rate: For the first Distribution Date, 7.62188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-2 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance and the Class B-1 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance (after taking into
account distributions of the Class M-1 Principal Distribution Amount on such
Distribution Date), (C) the Class M-2 Certificate Principal Balance (after
taking into account distributions of the Class M-2 Principal Distribution Amount
on such Distribution Date), (D) the Class M-3 Certificate Principal Balance
(after taking into account distributions of the Class M-3 Principal Distribution
Amount on such Distribution Date), (E) the Class M-4 Certificate Principal
Balance (after taking into account distributions of the Class M-4 Principal
Distribution Amount on such Distribution Date), (F) the Class M-5 Certificate
Principal Balance (after taking into account distributions of the Class M-5
Principal Distribution Amount on such Distribution Date), (G) the Class M-6
Certificate Principal Balance (after taking into account distributions of the
Class M-6 Principal Distribution Amount on such Distribution Date), (H) the
Class B-1 Certificate Principal Balance (after taking into account distributions
of the Class B-1 Principal Distribution Amount on such Distribution Date) and
(I) the Class B-2 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 83.60% of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date and (B) the excess of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A, Class M and Class B-1
Certificates has been reduced to zero, the Class B-2 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-2 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M and Class B-1
Certificates and (II) in no event will the Class B-2 Principal Distribution
Amount with respect to any Distribution Date exceed the Class B-2 Certificate
Principal Balance.

     Class B-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-2 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the

                                      -23-

<PAGE>

Certificate Principal Balance of the Class B-2 Certificates pursuant to the last
sentence of the definition of "Certificate Principal Balance."

     Class B-3 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-3 Certificates.

     Class B-3 Certificate: Any Certificate designated as a "Class B-3
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class B-3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-3 Certificates.

     Class B-3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-3 Pass-Through Rate on
the Class B-3 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class B-3
Current Interest or a Class B-3 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class B-3
Certificates.

     Class B-3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-3 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class B-3 Pass-Through Rate for the
related Accrual Period.

     Class B-3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.5000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.7500% per annum.

     Class B-3 Pass-Through Rate: For the first Distribution Date, 7.62188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-3 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance, the Class B-1 Certificate Principal
Balance and the Class B-2 Certificate Principal Balance have been reduced to
zero and a Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event
does not exist, the excess of (1) the sum of (A) the Class A Certificate
Principal Balance (after taking into account distributions of the Class A
Principal Distribution Amount on such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distributions of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distributions
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distributions of the Class M-3 Principal Distribution Amount on such
Distribution Date), (E) the Class M-4 Certificate Principal Balance (after
taking into account

                                      -24-

<PAGE>

distributions of the Class M-4 Principal Distribution Amount on such
Distribution Date), (F) the Class M-5 Certificate Principal Balance (after
taking into account distributions of the Class M-5 Principal Distribution Amount
on such Distribution Date), (G) the Class M-6 Certificate Principal Balance
(after taking into account distributions of the Class M-6 Principal Distribution
Amount on such Distribution Date), (H) the Class B-1 Certificate Principal
Balance (after taking into account distributions of the Class B-1 Principal
Distribution Amount on such Distribution Date), (I) the Class B-2 Certificate
Principal Balance (after taking into account distributions of the Class B-2
Principal Distribution Amount on such Distribution Date) and (J) the Class B-3
Certificate Principal Balance immediately prior to such Distribution Date over
(2) the lesser of (A) 85.90% of the Stated Principal Balance of the Mortgage
Loans as of such Distribution Date and (B) the excess of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date over the Minimum
Required Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A, Class M, Class B-1 and Class B-2 Certificates
has been reduced to zero, the Class B-3 Principal Distribution Amount will equal
the lesser of (x) the outstanding Certificate Principal Balance of the Class B-3
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A, Class M, Class B-1 and Class B-2 Certificates
and (II) in no event will the Class B-3 Principal Distribution Amount with
respect to any Distribution Date exceed the Class B-3 Certificate Principal
Balance.

     Class B-3 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-3 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-3 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of the Class B-3 Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance".

     Class C Applied Realized Loss Amount: As of any Distribution Date, the sum
of all Applied Realized Loss Amounts with respect to the Mortgage Loans which
have been applied to the reduction of the Certificate Principal Balance of the
Class C Certificates.

     Class C Certificate: Any Certificate designated as a "Class C Certificate"
on the face thereof, executed by the Trustee and authenticated by the
Authenticating Agent in substantially the form set forth in Exhibit A hereto,
representing the right to distributions as set forth herein.

     Class C Certificate Principal Balance: As of any date of determination, the
aggregate Certificate Principal Balance of the Class C Certificates.

     Class C Current Interest: As of any Distribution Date, the interest accrued
during the related Accrual Period at the Class C Distributable Interest Rate on
a notional amount equal to the aggregate principal balance of the Lower Tier
REMIC Regular Interests immediately prior to such Distribution Date, plus the
interest portion of any previous distributions on such Class that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class C
Certificates.

     Class C Distributable Interest Rate: The excess, if any, of (a) the
weighted average of the interest rates on the Lower Tier REMIC Regular Interests
(other than the Class LT-IO Interest) over (b) two times the weighted average of
the interest rates on the Lower Tier REMIC I Marker Interests and the Class LTIX
Interest (treating for purposes of this clause (b) the interest rate on each of
the Lower Tier REMIC I Marker Interests as being subject to a cap and a floor
equal to the interest rate of the Corresponding

                                      -25-

<PAGE>

REMIC Regular Interest of the Corresponding Certificates (as adjusted, if
necessary, to reflect the length of the Accrual Period for the LIBOR
Certificates) and treating the Class LTIX Interest as being capped at zero). The
averages described in the preceding sentence shall be weighted on the basis of
the respective principal balances of the Lower Tier REMIC Regular Interests
immediately prior to any date of determination.

     Class C Interest Carry Forward Amount: As of any Distribution Date, the
excess of (A) the Class C Current Interest with respect to prior Distribution
Dates over (B) the amount actually distributed to the Class C Certificates with
respect to interest on such prior Distribution Dates or added to the aggregate
Certificate Principal Balance of the Class C Certificates (other than amounts so
added attributable to Subsequent Recoveries or proceeds of the Swap Agreement).

     Class C Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class C Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class C Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class C Certificates (A) pursuant to the last sentence
of the definition of "Certificate Principal Balance" or (B) attributable to
distributions of proceeds of the Swap Agreement.

     Class LT1-A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificates and an interest rate equal to the Net
Rate.

     Class LT2-A1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LT2-A2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LT2-A3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LT-IO Interest: An uncertificated regular interest in the Lower Tier
REMIC with the characteristics set forth in the description of the Lower Tier
REMIC in the Preliminary Statement.

                                      -26-

<PAGE>

     Class LTIX Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the excess of (i) 50% of the
aggregate Cut-off Date Principal Balance of the Mortgage Loans over (ii) the
initial principal balance of the Lower Tier REMIC I Marker Interests, and with
an interest rate equal to the Net Rate.

     Class LTIIX Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the excess of (i) 50% of the
aggregate Cut-off Date Principal Balance of the Mortgage Loans over (ii) the
initial principal balance of the Lower Tier REMIC II Marker Interests, and with
an interest rate equal to the Net Rate.

     Class LTII1A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the excess of (i) the
aggregate Cut-off Date Principal Balance of the Group One Mortgage Loans over
(ii) the aggregate of the initial Certificate Principal Balances of Certificate
Group One, and with an interest rate equal to the Net Rate.

     Class LTII1B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the aggregate Cut-off
Date Principal Balance of the Group One Mortgage Loans, and with an interest
rate equal to the rate set forth in footnote 9 to the description of the Lower
Tier REMIC in the Preliminary Statement.

     Class LTII2A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the excess of (i) the
aggregate Cut-off Date Principal Balance of the Group Two Mortgage Loans over
(ii) the aggregate of the initial Certificate Principal Balances of Certificate
Group Two, and with an interest rate equal to the Net Rate.

     Class LTII2B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the aggregate Cut-off
Date Principal Balance of the Group Two Mortgage Loans and with an interest rate
equal to the rate set forth in footnote 10 to the description of the Lower Tier
REMIC in the Preliminary Statement.

     Class LTM-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-4 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

                                      -27-

<PAGE>

     Class LTM-5 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-6 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTR Interest: The sole class of "residual interest" in the Lower Tier
REMIC.

     Class M Certificates: Any of the Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5 and Class M-6 Certificates.

     Class M Certificate Principal Balance: For any date of determination, the
sum of the Class M-1 Certificate Principal Balance, Class M-2 Certificate
Principal Balance, Class M-3 Certificate Principal Balance, Class M-4
Certificate Principal Balance, Class M-5 Certificate Principal Balance and Class
M-6 Certificate Principal Balance.

     Class M-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-1 Certificates.

     Class M-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class 1-M1 Certificates.

     Class M-1 Certificates: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-1 Pass-Through Rate on
the Class M-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-1
Current Interest or a Class M-1 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-1
Certificates.

     Class M-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-1 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-1 Pass-Through Rate for the
related Accrual Period.

     Class M-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.0000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.0000% per annum.

     Class M-1 Pass-Through Rate: For the first Distribution Date, 7.12188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-1 Margin, (2) the

                                      -28-

<PAGE>

Weighted Average Available Funds Cap for such Distribution Date and (3) the
Weighted Average Maximum Rate Cap for such Distribution Date.

     Class M-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance has been
reduced to zero and a Stepdown Trigger Event exists, or as long as a Stepdown
Trigger Event does not exist, the excess of (1) the sum of (A) the Class A
Certificate Principal Balance (after taking into account distributions of the
Class A Principal Distribution Amount on such Distribution Date) and (B) the
Class M-1 Certificate Principal Balance immediately prior to such Distribution
Date over (2) the lesser of (A) 52.30% of the Stated Principal Balances of the
Mortgage Loans as of such Distribution Date and (B) the excess of the Stated
Principal Balances for the Mortgage Loans as of such Distribution Date over the
Minimum Required Overcollateralization Amount. Notwithstanding the foregoing,
(I) on any Distribution Date prior to the Stepdown Date on which the Certificate
Principal Balance of each Class of Class A Certificates has been reduced to
zero, the Class M-1 Principal Distribution Amount will equal the lesser of (x)
the outstanding Certificate Principal Balance of the Class M-1 Certificates and
(y) 100% of the Principal Distribution Amount remaining after any distributions
on such Class A Certificates and (II) in no event will the Class M-1 Principal
Distribution Amount with respect to any Distribution Date exceed the Class M-1
Certificate Principal Balance.

     Class M-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-1 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-2 Certificates.

     Class M-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-2 Certificates.

     Class M-2 Certificates: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-2 Pass-Through Rate on
the Class M-2 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-2
Current Interest or a Class M-2 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-2
Certificates.

     Class M-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-2 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-2 Pass-Through Rate for the
related Accrual Period.

                                      -29-

<PAGE>

     Class M-2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.5000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.7500% per annum.

     Class M-2 Pass-Through Rate: For the first Distribution Date, 7.62188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-2 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance and
Class M-1 Certificate Principal Balance have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date) and (C) the Class M-2 Certificate Principal
Balance immediately prior to such Distribution Date over (2) the lesser of (A)
59.80% of the Stated Principal Balances of the Mortgage Loans as of such
Distribution Date and (B) the excess of the Stated Principal Balances for the
Mortgage Loans as of such Distribution Date over the Minimum Required
Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates and the Class M-1 Certificates has
been reduced to zero, the Class M-2 Principal Distribution Amount will equal the
lesser of (x) the outstanding Certificate Principal Balance of the Class M-2
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A and Class M-1 Certificates and (II) in no
event will the Class M-2 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-2 Certificate Principal Balance.

     Class M-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-2 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-2 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-3 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-3 Certificates.

     Class M-3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-3 Certificates.

     Class M-3 Certificates: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-3 Pass-Through Rate on
the Class M-3 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-3

                                      -30-

<PAGE>

Current Interest or a Class M-3 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-3
Certificates.

     Class M-3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-3 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-3 Pass-Through Rate for the
related Accrual Period.

     Class M-3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 3.0000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 4.5000% per annum.

     Class M-3 Pass-Through Rate: For the first Distribution Date, 8.12188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-3 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance and Class M-2 Certificate Principal Balance
have been reduced to zero and a Stepdown Trigger Event exists, or as long as a
Stepdown Trigger Event does not exist, the excess of (1) the sum of (A) the
Class A Certificate Principal Balance (after taking into account distributions
of the Class A Principal Distribution Amount on such Distribution Date), (B) the
Class M-1 Certificate Principal Balance (after taking into account distributions
of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)
the Class M-2 Certificate Principal Balance (after taking into account
distributions of the Class M-2 Principal Distribution Amount on such
Distribution Date) and (C) the Class M-3 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 64.30% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates and the Class M-2 Certificates has
been reduced to zero, the Class M-3 Principal Distribution Amount will equal the
lesser of (x) the outstanding Certificate Principal Balance of the Class M-3
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A, Class M-1 and Class M-2 Certificates and (II)
in no event will the Class M-3 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-3 Certificate Principal Balance.

     Class M-3 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-3 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-3 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-3 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

                                      -31-

<PAGE>

     Class M-4 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-4 Certificates.

     Class M-4 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-4 Certificates.

     Class M-4 Certificates: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-4 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-4 Pass-Through Rate on
the Class M-4 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-4
Current Interest or a Class M-4 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-4
Certificates.

     Class M-4 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-4 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-4 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-4 Pass-Through Rate for the
related Accrual Period.

     Class M-4 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.5000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.7500% per annum.

     Class M-4 Pass-Through Rate: For the first Distribution Date, 7.62188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-4 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-4 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance and
Class M-3 Certificate Principal Balance have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class M-2 Certificate Principal
Balance (after taking into account distributions of the Class M-2 Principal
Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate
Principal Balance (after taking into account distributions of the Class M-3
Principal Distribution Amount on such Distribution Date) and (E) the Class M-4
Certificate Principal Balance immediately prior to such Distribution Date over
(2) the lesser of (A) 68.50% of the Stated Principal Balances of the Mortgage
Loans as of such Distribution Date and (B) the excess of the Stated Principal
Balances for the Mortgage Loans as of such Distribution Date over the Minimum
Required Overcollateralization Amount.

                                      -32-

<PAGE>

Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates, the Class M-2 Certificates and the
Class M-3 Certificates has been reduced to zero, the Class M-4 Principal
Distribution Amount will equal the lesser of (x) the outstanding Certificate
Principal Balance of the Class M-4 Certificates and (y) 100% of the Principal
Distribution Amount remaining after any distributions on such Class A, Class
M-1, Class M-2 and Class M-3 Certificates and (II) in no event will the Class
M-4 Principal Distribution Amount with respect to any Distribution Date exceed
the Class M-4 Certificate Principal Balance.

     Class M-4 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-4 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-4 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-4 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-5 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-5 Certificates.

     Class M-5 Certificate: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-5 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-5 Certificates.

     Class M-5 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-5 Pass-Through Rate on
the Class M-5 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-5
Current Interest or a Class M-5 Interest Carry Forward Amount that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Distribution Date to the Class M-5
Certificates.

     Class M-5 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-5 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-5 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-5 Pass-Through Rate for the
related Accrual Period.

     Class M-5 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.5000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.7500% per annum.

     Class M-5 Pass-Through Rate: For the first Distribution Date, 7.62188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-5 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

                                      -33-

<PAGE>

     Class M-5 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance and Class M-4 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance (after taking into
account distributions of the Class M-1 Principal Distribution Amount on such
Distribution Date), (C) the Class M-2 Certificate Principal Balance (after
taking into account distributions of the Class M-2 Principal Distribution Amount
on such Distribution Date), (D) the Class M-3 Certificate Principal Balance
(after taking into account distributions of the Class M-3 Principal Distribution
Amount on such Distribution Date), (D) the Class M-4 Certificate Principal
Balance (after taking into account distributions of the Class M-4 Principal
Distribution Amount on such Distribution Date) and (E) the Class M-5 Certificate
Principal Balance immediately prior to such Distribution Date over (2) the
lesser of (A) 72.50% of the Stated Principal Balances of the Mortgage Loans as
of such Distribution Date and (B) the excess of the Stated Principal Balances
for the Mortgage Loans as of such Distribution Date over the Minimum Required
Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates, the Class M-1 Certificates, the
Class M-2 Certificates, the Class M-3 Certificates and the Class M-4
Certificates has been reduced to zero, the Class M-5 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class M-5 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M-1, Class M-2,
Class M-3 and Class M-4 Certificates and (II) in no event will the Class M-5
Principal Distribution Amount with respect to any Distribution Date exceed the
Class M-5 Certificate Principal Balance.

     Class M-5 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-5 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-5 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-5 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-6 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-6 Certificates.

     Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-6 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-6 Certificates.

     Class M-6 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-6 Pass-Through Rate on
the Class M-6 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Class M-6
Current Interest or a Class M-6 Interest Carry Forward Amount that is recovered
as a voidable

                                      -34-

<PAGE>

preference by a trustee in bankruptcy, less any Non-Supported Interest Shortfall
allocated on such Distribution Date to the Class M-6 Certificates.

     Class M-6 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-6 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-6 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-6 Pass-Through Rate for the
related Accrual Period.

     Class M-6 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.5000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.7500% per annum.

     Class M-6 Pass-Through Rate: For the first Distribution Date, 7.62188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-6 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-6 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance, Class M-4 Certificate Principal Balance
and Class M-5 Certificate Principal Balance have been reduced to zero and a
Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event does not
exist, the excess of (1) the sum of (A) the Class A Certificate Principal
Balance (after taking into account distributions of the Class A Principal
Distribution Amount on such Distribution Date), (B) the Class M-1 Certificate
Principal Balance (after taking into account distributions of the Class M-1
Principal Distribution Amount on such Distribution Date), (C) the Class M-2
Certificate Principal Balance (after taking into account distributions of the
Class M-2 Principal Distribution Amount on such Distribution Date), (D) the
Class M-3 Certificate Principal Balance (after taking into account distributions
of the Class M-3 Principal Distribution Amount on such Distribution Date), (E)
the Class M-4 Certificate Principal Balance (after taking into account
distributions of the Class M-4 Principal Distribution Amount on such
Distribution Date), (F) the Class M-5 Certificate Principal Balance (after
taking into account distributions of the Class M-5 Principal Distribution Amount
on such Distribution Date), and (G) the Class M-6 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 76.40% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates, the Class M-2 Certificates, the
Class M-3 Certificates, the Class M-4 Certificates and the Class M-5
Certificates has been reduced to zero, the Class M-6 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class M-6 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M-1, Class M-2,
Class M-3, Class M-4 and Class M-5 Certificates and (II) in no event will the
Class M-6 Principal Distribution Amount with respect to any Distribution Date
exceed the Class M-6 Certificate Principal Balance.

     Class M-6 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-6 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the

                                      -35-

<PAGE>

Class M-6 Unpaid Realized Loss Amounts on all previous Distribution Dates and
(y) all increases in the Certificate Principal Balance of such Class M-6
Certificates pursuant to the last sentence of the definition of "Certificate
Principal Balance."

     Class P Certificate: Any Certificate designated as a Class P Certificate on
the face thereof, executed by the Trustee and authenticated by the
Authenticating Agent in substantially the form set forth in Exhibit A,
representing the right to distributions as set forth herein.

     Class Payment Shortfall: As defined in Section 2.07(d)(ii) herein.

     Class R Certificate: The Class R Certificate executed by the Trustee and
authenticated by the Authenticating Agent in substantially the form set forth in
Exhibit A.

     Class R Certificate Principal Balance: As of any date of determination, the
aggregate Certificate Principal Balance of the Class R Certificate.

     Class R Current Interest: As of any Distribution Date, the interest accrued
during the related Accrual Period at the Class R Pass-Through Rate on the Class
R Certificate Principal Balance as of such Distribution Date plus the portion of
any previous distributions on such Class in respect of Class R Current Interest
or a Class R Interest Carry Forward Amount that is recovered as a voidable
preference by a trustee in bankruptcy, less any Non-Supported Interest Shortfall
allocated on such Distribution Date to the Class R Certificate.

     Class R Interest Carry Forward Amount: As of any Distribution Date, the sum
of (1) the excess of (A) the Class R Current Interest with respect to prior
Distribution Dates over (B) the amount actually distributed to the Class R
Certificate with respect to Current Interest or Interest Carry Forward Amounts
on such prior Distribution Dates and (2) interest on such excess (to the extent
permitted by applicable law) at the Class R Pass-Through Rate for the related
Accrual Period.

     Class R Margin: As of any Distribution Date up to and including the Initial
Optional Termination Date, 0.8500% per annum and, as of any Distribution Date
after the Initial Optional Termination Date, 1.7000% per annum.

     Class R Pass-Through Rate: For the first Distribution Date, 5.97188% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class R Margin, (2) the Class 1-A Available Funds Cap for such
Distribution Date and (3) the Class 1-A Maximum Rate Cap for such Distribution
Date.

     Class SWR Interest: The sole class of "residual interest" in the SWAP
REMIC.

     Closing Date: October 10, 2007.

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

     Collection Account: The separate Eligible Accounts created and initially
maintained by the Servicer pursuant to Section 3.05(d) in the name of the
Trustee for the benefit of the Certificateholders and designated, "Home Loan
Services, Inc., as servicer for LaSalle Bank National Association, as trustee,
in trust for registered holders of Merrill Lynch First Franklin Mortgage Loan
Trust, Series 2007-5,

                                      -36-

<PAGE>

Mortgage Loan Asset-Backed Certificates". Funds in the Collection Account shall
be held in trust for the Certificateholders for the uses and purposes set forth
in this Agreement.

     Commission: The Securities and Exchange Commission.

     Compensating Interest: For any Distribution Date and all Principal
Prepayments in full in respect of a Mortgage Loan that are received during the
period from the first day of the related Prepayment Period through the last day
of the calendar month preceding such Distribution Date, a payment made by the
Servicer in an amount not to exceed the product of (a) one-twelfth of 0.25% and
(b) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date, equal to the amount of interest at the Net Mortgage Rate for
that Mortgage Loan from the date of prepayment through the 30th day of such
preceding calendar month; provided that any month consisting of less than 30
days shall be deemed to consist of 30 days.

     Corresponding Certificates: With respect to the Class LT1-A Interest, the
Class 1-A and Class R Certificates. With respect to the Class LT2-A1 Interest,
the Class 2-A1 Certificates. With respect to the Class LT2-A2 Interest, the
Class 2-A2 Certificates. With respect to the Class LT2-A3 Interest, the Class
2-A3 Certificates. With respect to the Class LTM-1 Interest, the Class M-1
Certificates. With respect to the Class LTM-2 Interest, the Class M-2
Certificates. With respect to the Class LTM-3 Interest, the Class M-3
Certificates. With respect to the Class LTM-4 Interest, the Class M-4
Certificates. With respect to the Class LTM-5 Interest, the Class M-5
Certificates. With respect to the Class LTM-6 Interest, the Class M-6
Certificates. With respect to the Class LTB-1 Interest, the Class B-1
Certificates. With respect to the Class LTB-2 Interest, the Class B-2
Certificates. With respect to the Class LTB-3 Interest, the Class B-3
Certificates.

     Corresponding REMIC Regular Interest: For each Class of Certificates, the
interest in the Upper Tier REMIC listed on the same row in the table entitled
"Upper Tier REMIC" in the Preliminary Statement.

     Corridor Contract: Any of the Class 1-A Corridor Contract, the Class 2-A
Corridor Contract or the Subordinate Certificate Corridor Contract.

     Corridor Contract Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 4.04(k)(i) in the name of the
Trustee for the benefit of the Issuing Entity and designated "LaSalle Bank
National Association, as trustee, in trust for registered holders of Merrill
Lynch First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
Certificates, Series 2007-5." Funds in the Corridor Contract Account shall be
held in trust for the Issuing Entity for the uses and purposes set forth in this
Agreement.

     Corridor Contract Notional Balance: Any of the Class 1-A Corridor Contract
Notional Balance, the Class 2-A Corridor Contract Notional Balance or the
Subordinate Certificate Corridor Contract Notional Balance.

     Corridor Contract Termination Date: Any of the Class 1-A Corridor Contract
Termination Date, the Class 2-A Corridor Contract Termination Date or the
Subordinate Certificate Corridor Contract Termination Date.

                                      -37-

<PAGE>

     Corridor Posted Collateral Account: The segregated Eligible Account created
and maintained by the Trustee pursuant to Section 4.04(k)(iv) in the name of the
Trustee for the benefit of the Issuing Entity and designated "LaSalle Bank
National Association, as trustee, in trust for registered holders of Merrill
Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage Loan
Asset-Backed Certificates." Funds in the Corridor Posted Collateral Account
shall be held in trust for the Issuing Entity for the uses and purposes set
forth in the Corridor Contracts.

     Current Interest: Any of the Class 1-A Current Interest, the Class 2-A1
Current Interest, the Class 2-A2 Current Interest, the Class 2-A3 Current
Interest, the Class M-1 Current Interest, the Class M-2 Current Interest, the
Class M-3 Current Interest, the Class M-4 Current Interest, the Class M-5
Current Interest, the Class M-6 Current Interest, the Class B-1 Current
Interest, the Class B-2 Current Interest, the Class B-3 Current Interest, the
Class R Current Interest and the Class C Current Interest.

     Cut-off Date: September 1, 2007.

     Cut-off Date Principal Balance: As to any Mortgage Loan, the unpaid
principal balance thereof as of the close of business on the calendar day
immediately preceding the Cut-off Date after application of all payments of
principal due on or prior to the Cut-off Date, whether or not received, and all
Principal Prepayments received prior to the Cut-off Date, but without giving
effect to any installments of principal received in respect of Due Dates after
the Cut-off Date.

     Defaulted Swap Termination Payment: Any payment required to be made by the
Supplemental Interest Trust to the Swap Counterparty pursuant to the Swap
Agreement as a result of an event of default under the Swap Agreement with
respect to which the Swap Counterparty is the defaulting party or a termination
event under that agreement (other than illegality or a tax event) with respect
to which the Swap Counterparty is the sole Affected Party (as defined in the
Swap Agreement).

     Definitive Certificates: As defined in Section 5.06.

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a
Replacement Mortgage Loan.

     Delinquent: A Mortgage Loan is "delinquent" if any payment due thereon is
not made pursuant to the terms of such Mortgage Loan by the close of business on
the day such payment is scheduled to be due. A Mortgage Loan is "30 days
delinquent" if such payment has not been received by the close of business on
the corresponding day of the month immediately succeeding the month in which
such payment was due, or, if there is no such corresponding day (e.g., as when a
30-day month follows a 31-day month in which a payment was due on the 31st day
of such month), then on the last day of such immediately succeeding month. With
respect to any Mortgage Loan due on any day other than the first day of the
month, such Mortgage Loan shall be deemed to be due on the first day of the
immediately succeeding month. Similarly for "60 days delinquent," "90 days
delinquent" and so on.

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

     Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware corporation,
or any successor in interest.

                                      -38-

<PAGE>

     Depository: The initial Depository shall be The Depository Trust Company
("DTC"), the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended. The Depository shall initially be the
registered Holder of the Book-Entry Certificates. The Depository shall at all
times be a "clearing corporation" as defined in Section 8-102(3) of the Uniform
Commercial Code of the State of New York.

     Depository Agreement: With respect to Classes of Book-Entry Certificates,
the agreement between the Trustee and the initial Depository.

     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.

     Designated Transaction: A transaction in which the assets underlying the
Certificates consist of single-family residential, multi-family residential,
home equity, manufactured housing and/or commercial mortgage obligations that
are secured by single-family residential, multi-family residential, commercial
real property or leasehold interests therein.

     Determination Date: With respect to any Distribution Date, the 15th day of
the month of such Distribution Date or, if such 15th day is not a Business Day,
the immediately preceding Business Day.

     Disqualified Organization: (1) the United States, any state or political
subdivision thereof, any foreign government, any international organization, or
any agency or instrumentality of any of the foregoing, (2) any organization
(other than a cooperative described in Section 521 of the Code) which is exempt
from tax under Chapter 1 of Subtitle A of the Code unless such organization is
subject to the tax imposed by Section 511 of the Code and (3) any organization
described in Section 1381(a)(2)(C) of the Code.

     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 October 2007.

     Due Date: With respect to any Distribution Date and any Mortgage Loan, the
day during the related Due Period on which a Scheduled Payment is due.

     Due Period: With respect to any Distribution Date, the period beginning on
the second day of the calendar month preceding the calendar month in which such
Distribution Date occurs and ending on the first day of the month in which such
Distribution Date occurs.

     Eligible Account: An account that is (i) a segregated account maintained
with a federal or state chartered depository institution (A) the short-term
obligations of which are rated A-1 or better by S&P and P-1 by Moody's at the
time of any deposit therein or (B) the long term unsecured debt obligations of
which are rated at least "AA-" by S&P and "A+" by Fitch if the deposits are to
be held in the account more than 30 days; following a downgrade, withdrawal, or
suspension of such institution's rating, each account should promptly (and in
any case within not more than 30 calendar days) be moved to a qualifying
institution or to one or more segregated trust accounts in the trust department
of such institution, if permitted, (ii) a segregated trust account or accounts
maintained with the trust department of a federal or state chartered depository
institution or trust company with trust powers acting in its fiduciary

                                      -39-

<PAGE>

capacity or (iii) any other segregated account or accounts of a depository
institution acceptable to the NIMs Insurer and the Rating Agencies (as evidenced
by a letter from each Rating Agency that use of any such account as the
Distribution Account will not have an adverse effect on the then-current ratings
assigned to the Classes of the Certificates then rated by the Rating Agencies).
Eligible Accounts may bear interest, and may include, if otherwise qualified
under this definition, accounts maintained with the Trustee or the Servicer.

     ERISA: The Employee Retirement Income Security Act of 1974, including any
successor or amendatory provisions.

     ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that would satisfy the requirements of
Prohibited Transaction Exemption 90-29, Exemption Application No. D-8012, 55
Fed. Reg. 21459 (1990), as amended, granted by the United States Department of
Labor (or any other applicable underwriter's exemption granted to the
Underwriter by the United States Department of Labor), except, in relevant part,
for the requirement that the certificates have received a rating at the time of
acquisition that is in one of the three (or four, in the case of a "designated
transaction") highest generic rating categories by at least one of S&P, Moody's
or Fitch.

     ERISA Restricted Certificates: The Class C Certificates and Class P
Certificates and any other Certificate, as long as the acquisition and holding
of such other Certificate is not covered by and exempt under any underwriter's
exemption granted by the United States Department of Labor.

     Escrow Account: As defined in Section 3.06 hereof.

     Event of Default: As defined in Section 7.01 hereof.

     Exception Report: As defined in Section 2.02 hereof.

     Excess Interest: On any Distribution Date, for each Class of the Class A,
Class M and Class B Certificates, the excess, if any, of (1) the amount of
interest such Class of Certificates is entitled to receive on such Distribution
Date over (2) the amount of interest such Class of Certificates would have been
entitled to receive on such Distribution Date at an interest rate equal to the
REMIC Pass-Through Rate.

     Excess Proceeds: With respect to any Liquidated Loan, any Liquidation
Proceeds that are in excess of the sum of (1) the unpaid principal balance of
such Liquidated Loan as of the date of such liquidation plus (2) interest at the
Mortgage Rate from the Due Date as to which interest was last paid or advanced
to Certificateholders (and not reimbursed to the Servicer) up to the Due Date in
the month in which such Liquidation Proceeds are required to be distributed on
the unpaid principal balance of such Liquidated Loan outstanding during each Due
Period as to which such interest was not paid or advanced.

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

     Extra Principal Distribution Amount: With respect to any Distribution Date,
(1) prior to the Stepdown Date, the excess of (A) the sum of (i) the Aggregate
Certificate Principal Balance immediately preceding such Distribution Date
reduced by the Principal Funds with respect to such Distribution Date and (ii)
$56,078,879 over (B) the Pool Stated Principal Balance of the Mortgage Loans as
of such Distribution Date and (2) on and after the Stepdown Date, (A) the sum of
(x) the Aggregate Certificate Principal Balance immediately preceding such
Distribution Date, reduced by the Principal Funds with

                                      -40-

<PAGE>

respect to such Distribution Date and (y) the greater of (a) 14.10% of the Pool
Stated Principal Balance of the Mortgage Loans and (b) the Minimum Required
Overcollateralization Amount less (B) the Pool Stated Principal Balance of the
Mortgage Loans as of such Distribution Date; provided, however, that if on any
Distribution Date a Stepdown Trigger Event is in effect, the Extra Principal
Distribution Amount will not be reduced to the applicable percentage of the
then-current aggregate Stated Principal Balance of the Mortgage Loans (and will
remain fixed at the applicable percentage of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Due Date immediately prior to the
Stepdown Trigger Event) until the next Distribution Date on which the Stepdown
Trigger Event is not in effect.

     Fannie Mae: A federally chartered and privately owned corporation organized
and existing under the Federal National Mortgage Association Charter Act, or any
successor thereto.

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

     FFFC: First Franklin Financial Corporation, or any successor thereto.

     FFFC Purchase Agreement: The Mortgage Loan Purchase Agreement, dated as of
September 1, 2007, between the Depositor, as purchaser, and the Sponsor, as
seller.

     Fitch: Fitch, Inc., or any successor in interest.

     Fixed Rate Mortgage Loan: A Mortgage Loan identified in the Mortgage Loan
Schedule as having a Mortgage Rate that is fixed.

     Floating Rate Certificate Carryover: With respect to a Distribution Date,
in the event that the Pass-Through Rate for a class of Class A, Class M or Class
B Certificates is based upon the related Available Funds Cap or the related
Maximum Rate Cap, the sum of (A) the excess of (1) the amount of interest that
such Class would have been entitled to receive on such Distribution Date had the
Pass-Through Rate for that Class not been calculated based on the related
Available Funds Cap or the related Maximum Rate Cap, up to but not exceeding the
greater of (a) the related Maximum Rate Cap or (b) the sum of (i) the related
Available Funds Cap and (ii) the product of (AA) a fraction, the numerator of
which is 360 and the denominator of which is the actual number of days in the
related Accrual Period and (BB) the sum of (x) the quotient obtained by dividing
(I) an amount equal to the proceeds, if any, payable under the related Corridor
Contract with respect to such Distribution Date by (II) the aggregate
Certificate Principal Balance of each of the Classes of Certificates to which
such Corridor Contract relates for such Distribution Date and (y) the quotient
obtained by dividing (I) an amount of any Net Swap Payments owed by the Swap
Counterparty for such Distribution Date by (II) the aggregate Stated Principal
Balance of the Mortgage Loans as of the immediately preceding Distribution Date
over (2) the amount of interest such Class was entitled to receive on such
Distribution Date based on the related Available Funds Cap; together with (B)
the unpaid portion of any such excess from prior Distribution Dates (and
interest accrued thereon at the then applicable Pass-Through Rate, without
giving effect to the related Available Funds Cap or the related Maximum Rate
Cap) and (C) any amount previously distributed with respect to Floating Rate
Certificate Carryover for such Class that is recovered as a voidable preference
by a trustee in bankruptcy.

     Freddie Mac: 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.

                                      -41-

<PAGE>

     Grantor Trusts: The grantor trusts described in Section 2.07 hereof.

     Gross Margin: The percentage set forth in the related Mortgage Note for
each of the Adjustable Rate Mortgage Loans which is to be added to the
applicable index for use in determining the Mortgage Rate on each Adjustment
Date, and which is set forth in the Mortgage Loan Schedule for each Adjustable
Rate Mortgage Loan.

     Group One: The portion of the Mortgage Pool identified as "Group One" in
the Prospectus Supplement.

     Group One Mortgage Loan: Any Mortgage Loan at any time identified in the
Mortgage Loan Schedule attached hereto as Exhibit B as a Group One Mortgage
Loan.

     Group One Net WAC: The Net WAC of Group One.

     Group One Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group One and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Group Two: The portion of the Mortgage Pool identified as "Group Two" in
the Prospectus Supplement.

     Group Two Mortgage Loan: Any Mortgage Loan at any time identified in the
Mortgage Loan Schedule attached hereto as Exhibit B as a Group Two Mortgage
Loan.

     Group Two Net WAC: The Net WAC of Group Two.

     Group Two Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group Two and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Guarantee: The guarantee by Merrill Lynch Bank & Trust Co., FSB in favor of
the Depositor, dated as of September 1, 2007, in connection with certain
obligations of FFFC pursuant to the FFFC Purchase Agreement.

     Indenture: An indenture relating to the issuance of the NIM Notes, which
may (but need not) be guaranteed by a NIMs Insurer.

     Initial Adjustment Date: As to any Adjustable Rate Mortgage Loan, the first
Adjustment Date following the origination of such Mortgage Loan.

     Initial Certificate Principal Balance: With respect to any Certificate
(other than the Class P Certificates), the Certificate Principal Balance of such
Certificate or any predecessor Certificate on the Closing Date as set forth in
Section 5.01 hereof.

     Initial Mortgage Rate: As to each Mortgage Loan, the Mortgage Rate in
effect prior to the Initial Adjustment Date.

                                      -42-

<PAGE>

     Initial Optional Termination Date: The first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (or if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) is equal to
or less than 10% of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

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

     Insurance Proceeds: Proceeds paid in respect of a Mortgage Loan or the
related Mortgaged Property pursuant to any Insurance Policy or any other
insurance policy covering such Mortgage Loan or Mortgaged Property, to the
extent such proceeds are payable to the mortgagee under the Mortgage, the
Servicer or the Trustee under the deed of trust and are not applied to the
restoration of the related Mortgaged Property or released either to the
Mortgagor or to the holder of a senior lien on the related Mortgaged Property in
accordance with the procedures that the Servicer would follow in servicing
mortgage loans held for its own account, in each case other than any amount
included in such Insurance Proceeds in respect of Insured Expenses.

     Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to a Mortgage Loan or the related Mortgaged
Property.

     Interest Carry Forward Amount: Any of the Class 1-A Interest Carry Forward
Amount, the Class 2-A1 Interest Carry Forward Amount, the Class 2-A2 Interest
Carry Forward Amount, the Class 2-A3 Interest Carry Forward Amount, the Class R
Interest Carry Forward Amount, the Class M-1 Interest Carry Forward Amount, the
Class M-2 Interest Carry Forward Amount, the Class M-3 Interest Carry Forward
Amount, the Class M-4 Interest Carry Forward Amount, the Class M-5 Interest
Carry Forward Amount, the Class M-6 Interest Carry Forward Amount, the Class B-1
Interest Carry Forward Amount, the Class B-2 Interest Carry Forward Amount, the
Class B-3 Interest Carry Forward Amount or the Class C Interest Carry Forward
Amount, as the case may be.

     Interest Determination Date: With respect to the LIBOR Certificates, (i)
for any Accrual Period other than the first Accrual Period, the second LIBOR
Business Day preceding the commencement of such Accrual Period and (ii) for the
first Accrual Period, October 5, 2007.

     Interest Funds: With respect to any Distribution Date, the sum, without
duplication, of (1) all scheduled interest due during the related Due Period and
received before the related Servicer Remittance Date less the Servicing Fee, (2)
all Advances relating to interest with respect to the Mortgage Loans, (3) all
Compensating Interest with respect to the Mortgage Loans, (4) Liquidation
Proceeds with respect to the Mortgage Loans (to the extent such Liquidation
Proceeds relate to interest) collected during the related Prepayment Period
relating to Principal Prepayments in full and during the preceding calendar
month relating to Principal Prepayments in part, (5) all proceeds of any
purchase pursuant to Section 2.02 or 2.03 during the related Prepayment Period
or pursuant to Section 9.01 not later than the related Determination Date (to
the extent that such proceeds relate to interest) less the Servicing Fee and (6)
all Prepayment Charges received with respect to the Mortgage Loans during the
related Prepayment Period relating to Principal Prepayments in full and during
the preceding calendar month relating to Principal Prepayments in part, less (A)
all Non-Recoverable Advances relating to interest and (B) other amounts

                                      -43-

<PAGE>

reimbursable (including without limitation indemnity payments) to the Servicer
and the Trustee pursuant to this Agreement allocable to interest.

     Issuing Entity: Merrill Lynch First Franklin Mortgage Loan Trust, Series
2007-5.

     Latest Possible Maturity Date: The latest maturity date for any Mortgage
Loan in the Trust Fund plus one month.

     LIBOR Business Day: Any day on which banks in the City of London, England,
Chicago, Illinois and New York City, U.S.A. are open and conducting transactions
in foreign currency and exchange.

     LIBOR Certificates: The Class A, Class M and Class B Certificates.

     Liquidated Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that either (a) pursuant to Section 3.12 has been realized upon or
liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee's sale
or other realization as provided by applicable law governing the real property
subject to the related Mortgage and any security agreements and as to which the
Servicer has certified (in accordance with Section 3.12) in the related
Prepayment Period that it has received all amounts it expects to receive in
connection with such liquidation or (b) as to which is not a first lien Mortgage
Loan and is delinquent 180 days or longer, the Servicer has certified in a
certificate of an officer of the Servicer delivered to the Depositor and the
Trustee that it does not believe that there is a reasonable likelihood that any
further net proceeds will be received or recovered with respect to such Mortgage
Loan.

     Liquidation Proceeds: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of Mortgage Loans, whether
through trustee's sale, foreclosure sale, sale by the Servicer pursuant to this
Agreement 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 Advances,
Servicing Fees, Servicing Advances and any other expenses related to such
Mortgage Loan.

     Loan-to-Value Ratio: With respect to any Mortgage Loan, the fraction,
expressed as a percentage, the numerator of which is the original principal
balance of the related Mortgage Loan and the denominator of which is the lesser
of (X) the Appraised Value of the related Mortgaged Property and (Y) the sales
price of the related Mortgaged Property at the time of origination.

     Losses: Any losses, claims, damages, liabilities or expenses collectively.

     Lower Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Lower Tier REMIC Interests: Each of the Class LT1-A Interest, the Class
LT2-A1 Interest, the Class LT2-A2 Interest, the Class LT2-A3 Interest, the Class
LTM-1 Interest, the Class LTM-2 Interest, the Class LTM-3 Interest, the Class
LTM-4 Interest, the Class LTM-5 Interest, the Class LTM-6 Interest, the Class
LTB-1 Interest, the Class LTB-2 Interest, the Class LTB-3 Interest, the Class
LTIX Interest, the Class LTIIX Interest, the Class LTII1A Interest, the Class
LTII1B Interest, the Class LTII2A Interest, the Class LTII2B Interest, the Class
LT-IO Interest and the Class LTR Interest.

                                      -44-

<PAGE>

     Lower Tier REMIC I Marker Interests: Each of the classes of Lower Tier
REMIC Regular Interests other than the Class LTIX Interest, the Class LTIIX
Interest, the Class LTII1A Interest, the Class LTII1B Interest, the Class LTII2A
Interest, the Class LTII2B Interest and the Class LT-IO Interest.

     Lower Tier REMIC II Marker Interests: Each of the Class LTII1A Interest,
the Class LTII1B Interest, the Class LTII2A Interest and the Class LTII2B
Interest.

     Lower Tier REMIC Regular Interests: Each of the Lower Tier REMIC Interests
other than the Class LTR Interest.

     Lower Tier REMIC Subordinated Balance Ratio: The ratio of (i) the principal
balance of the Class LTII1A Interest to (ii) the principal balance of the Class
LTII2A Interest that is equal to the ratio of (i) the excess of (A) the
aggregate Stated Principal Balance of Group One over (B) the current Certificate
Principal Balance of Certificate Group One to (ii) the excess of (A) the
aggregate Stated Principal Balance of Group Two over (B) the current Certificate
Principal Balance of Certificate Group Two.

     Maximum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the maximum rate of interest set forth as such in the related Mortgage Note and
with respect to each Fixed Rate Mortgage Loan, the rate of interest set forth in
the related Mortgage Note.

     Maximum Rate Cap: Any of the Class 1-A Maximum Rate Cap, the Class 2-A
Maximum Rate Cap or the Weighted Average Maximum Rate Cap.

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

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

     MERS System: The system of recording transfers of mortgage electronically
maintained by MERS.

     MIN: The loan number for any MERS Loan.

     Minimum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the minimum rate of interest set forth as such in the related Mortgage Note.

     Minimum Required Overcollateralization Amount: An amount equal to the
product of (x) 0.50% and (y) the Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

     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 4.05.

     Moody's: Moody's Investors Service, Inc. or any successor in interest.

     Mortgage: With respect to a Mortgage Loan, the mortgage, deed of trust or
other instrument with all riders thereto creating a first lien or a first
priority ownership interest in an estate in fee simple in real property securing
a Mortgage Note.

                                      -45-

<PAGE>

     Mortgage File: The mortgage documents listed in Section 2.01 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 Group: Either of Group One or Group Two.

     Mortgage Loan Schedule: The list of Mortgage Loans (as from time to time
amended by the Trustee to reflect the deletion of Deleted Mortgage Loans and the
addition of Replacement 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 Exhibit B, setting forth the
following information with respect to each Mortgage Loan:

          (i)  the loan number;

          (ii) the borrower's name and address;

          (iii) the unpaid principal balance of the Mortgage Loans;

          (iv) the Initial Mortgage Rate;

          (v)  the original maturity date and the months remaining before
               maturity date;

          (vi) the original principal balance;

          (vii) the Cut-off Date Principal Balance;

          (viii) the first payment due date of the Mortgage Loan;

          (ix) the Loan-to-Value Ratio at origination with respect to a Mortgage
               Loan;

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

          (xi) a code indicating the property type;

          (xii) with respect to each Adjustable Rate Mortgage Loan;

               (A)  the frequency of each Adjustment Date;

               (B)  the next Adjustment Date;

               (C)  the Maximum Mortgage Rate;

               (D)  the Minimum Mortgage Rate;

               (E)  the Mortgage Rate as of the Cut-off Date;

               (F)  the related Periodic Rate Cap;

                                      -46-

<PAGE>

               (G)  the Gross Margin; and

               (H)  the lifetime rate cap;

          (xiii) the location of the related Mortgaged Property;

          (xiv) a code indicating whether a Prepayment Charge is applicable;

               (A)  the period during which such Prepayment Charge is in effect;

               (B)  the amount of such Prepayment Charge;

               (C)  any limitations or other conditions on the enforceability of
                    such Prepayment Charge; and

               (D)  any other information pertaining to the Prepayment Charge
                    specified in the related Mortgage Note;

          (xv) the Credit Score and date obtained;

          (xvi) the MIN; and

          (xvii) a code indicating whether a Mortgage Loan is an Accommodated
               Mortgage Loan.

     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. Any mortgage loan
that was intended by the parties hereto to be transferred to the Trust Fund as
indicated by such Mortgage Loan Schedule which is in fact not so transferred for
any reason shall continue to be a Mortgage Loan hereunder until the Purchase
Price with respect thereto has been paid to the Trust Fund.

     Mortgage Note: The original executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan and all
amendments, modifications and attachments thereto with all riders attached
thereto, including, with respect to each Accommodated Mortgage Loan, the letter
from the Servicer to the Mortgagor reflecting the Adjustment Date Waiver.

     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.

     Mortgaged Property: The underlying property securing a Mortgage Loan.

     Mortgagor: The obligor on a Mortgage Note.

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

                                      -47-

<PAGE>

     Net Rate: The per annum rate set forth in footnote 8 to the description of
the Lower Tier REMIC in the Preliminary Statement hereto (such rate being based
on the weighted average of the interest rates on the SWAP REMIC Regular
Interests as adjusted and as set forth in such footnote).

     Net Swap Payment: With respect to any Distribution Date, any net payment
(other than a Swap Termination Payment or Defaulted Swap Termination Payment)
made by the Supplemental Interest Trust to the Swap Counterparty on the related
Fixed Rate Payer Payment Date (as defined in the Swap Agreement) or made by the
Swap Counterparty to the Supplemental Interest Trust on the related Floating
Rate Payer Payment Date (as defined in the Swap Agreement). In each case, the
Net Swap Payment shall not be less than zero.

     Net WAC: With respect to any Distribution Date and for any Mortgage Group,
the weighted average Net Mortgage Rate for the Mortgage Loans in such Mortgage
Group calculated based on the respective Net Mortgage Rates and the Stated
Principal Balances of such Mortgage Loans as of the preceding Distribution Date
(or, in the case of the first Distribution Date, as of the Cut-off Date).

     NIMs Insurer: Any of the one or more insurers, if any, that may be
guaranteeing certain payments under any NIM Notes; provided, that upon the
payment in full of the NIM Notes, all rights of the NIMs Insurer hereunder shall
terminate.

     NIM Notes: The net interest margin or excess cashflow securities to be
issued pursuant to any Indenture.

     NIMs Insurer Default: As defined in Section 10.13.

     Non-Recoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Servicer that, in the good faith judgment of the
Servicer, will not or, in the case of a current delinquency, would not, be
ultimately recoverable by the Servicer from the related Mortgagor, related
Liquidation Proceeds or otherwise related to the Mortgage Loans.

     Non-Recoverable Servicing Advance: Any portion of a Servicing Advance
previously made or proposed to be made by the Servicer that, in the good faith
judgment of the Servicer, will not or, in the case of a current Servicing
Advance, would not, be ultimately recoverable by the Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise related to the Mortgage
Loans.

     Non-Supported Interest Shortfall: As defined in Section 4.02.

     Offered Certificates: The Class A, Class M, and Class B Certificates.

     Officer's Certificate: A certificate (1) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, 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
Trustee, the Servicer (or any other officer customarily performing functions
similar to those performed by any of the above designated officers and to whom,
with respect to a particular matter, such matter is referred because of such
officer's knowledge of and familiarity with a particular subject) or (2), if
provided for in this Agreement, signed by a Servicing Officer, as the case may
be, and delivered to the Depositor, the Servicer or the Trustee, as the case may
be, as required by this Agreement.

                                      -48-

<PAGE>

     One-Month LIBOR: With respect to any Accrual Period, the rate determined by
the Trustee on the related Interest Determination Date on the basis of (a) the
offered rates for one-month United States dollar deposits from Reuters, as of
11:00 a.m. (London time) on such Interest Determination Date (or if such service
is no longer offered, such other service for displaying LIBOR or comparable
rates as may be reasonably selected by the Trustee) or (b) if such rate does not
appear on Reuters as of 11:00 a.m. (London time), the Trustee will determine
such rate on the basis of the offered rates of the Reference Banks for one-month
United States dollar deposits, as such rates appear on the Reuters Screen LIBO
Page, as of 11:00 a.m. (London time) on such Interest Determination Date. If
One-Month LIBOR is determined pursuant to clause (b) above, on each Interest
Determination Date, One-Month LIBOR for the related Accrual Period will be
established by the Trustee as follows:

          (i)  If on such Interest Determination Date two or more Reference
               Banks provide such offered quotations, One-Month LIBOR for the
               related Accrual Period shall be the arithmetic mean of such
               offered quotations (rounded upwards if necessary to the nearest
               whole multiple of 0.03125%).

          (ii) If on such Interest Determination Date fewer than two Reference
               Banks provide such offered quotations, One-Month LIBOR for the
               related Accrual Period shall be the higher of (i) One-Month LIBOR
               as determined on the previous Interest Determination Date and
               (ii) the Reserve Interest Rate.

     Opinion of Counsel: A written opinion of counsel, who may be counsel for
the Depositor or the Servicer reasonably acceptable to each addressee of such
opinion; provided, however, that with respect to Section 6.04 or 10.01, or the
interpretation or application of the REMIC Provisions, such counsel must (1) in
fact be independent of the Depositor and the Servicer, (2) not have any direct
financial interest in the Depositor or the Servicer or in any Affiliate of
either such party, and (3) not be connected with the Depositor or the Servicer
as an officer, employee, promoter, underwriter, trustee, partner, director or
person performing similar functions.

     Optional Termination: The termination of the Trust Fund hereunder pursuant
to clause (a) of Section 9.01 hereof.

     Optional Termination Amount: The repurchase price received by the Trustee
in connection with any repurchase of all of the Mortgage Loans pursuant to
Section 9.01.

     Optional Termination Price: On any date after the Initial Optional
Termination Date an amount equal to the sum of (i) the then aggregate
outstanding Stated Principal Balance of the Mortgage Loans (or, if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) plus
accrued interest thereon at the applicable Mortgage Rate through the Due Date in
the month in which the amount paid by or on behalf of the Servicer or the NIMs
Insurer in connection with the exercise of an Optional Termination pursuant to
Section 9.01(a)(1) will be distributed on the Certificates; (ii) any
unreimbursed indemnity amounts, fees or out-of-pocket costs and expenses owed to
the Trustee or the Servicer and all unreimbursed Advances and Servicing
Advances, in each case incurred by such party in the performance of its
obligations; (iii) any unreimbursed costs, penalties and/or damages incurred by
the Trust Fund in connection with any violation relating to any of the Mortgage
Loans of any predatory or abusive lending law; and (iv) any unpaid Net Swap
Payments and any Swap Termination Payment owed to the Swap Counterparty; such
Swap Termination Payment shall include any payment to the Swap Counterparty

                                      -49-

<PAGE>

resulting from the optional termination of the Swap Agreement after the Optional
Termination Date but prior to the final distribution to the Certificates.

     OTS: The Office of Thrift Supervision.

     Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except: (1) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and (2) Certificates in exchange for
which or in lieu of which other Certificates have been executed by the Trustee
and delivered by the Trustee pursuant to this Agreement.

     Outstanding Mortgage Loan: As of any Distribution Date, a Mortgage Loan
with a Stated Principal Balance greater than zero that was not the subject of a
Principal Prepayment in full, and that did not become a Liquidated Loan, prior
to the end of the related Due Period.

     Overcollateralization Amount: As of any date of determination, the excess
of (1) the Stated Principal Balance of the Mortgage Loans over (2) the
Certificate Principal Balance of the Certificates (other than the Class P
Certificates and the Class C Certificates).

     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.

     Pass-Through Rate: With respect to any Class of Certificates, the
corresponding Pass-Through Rate for such Class of Certificates.

     Percentage Interest: With respect to:

          (i)  any Class, the percentage interest in the undivided beneficial
               ownership interest evidenced by such Class which shall be equal
               to the Certificate Principal Balance of such Class divided by the
               aggregate Certificate Principal Balance of all Classes; and

          (ii) any Certificate, the Percentage Interest evidenced thereby of the
               related Class shall equal the percentage obtained by dividing the
               Denomination of such Certificate by the aggregate of the
               Denominations of all Certificates of such Class; except that in
               the case of any Class P Certificates, the Percentage Interest
               with respect to such Certificate shown on the face of such
               Certificate.

     Periodic Rate Cap: As to each Adjustable Rate Mortgage Loan and the related
Mortgage Note, the provision therein that limits permissible increases and
decreases in the Mortgage Rate on any Adjustment Date.

     Permitted Activities: The primary activities of the Issuing Entity created
pursuant to this Agreement which shall be:

          (i)  holding Mortgage Loans transferred from the Depositor and other
               assets of the Issuing Entity, including the Corridor Contracts,
               Corridor Contract Account and

                                      -50-

<PAGE>

               the Supplemental Interest Trust subtrust, which in turn holds the
               Swap Agreement, and any credit enhancement and passive derivative
               financial instruments that pertain to beneficial interests issued
               or sold to parties other than the Depositor, its Affiliates, or
               its agents;

          (ii) issuing Certificates and other interests in the assets of the
               Issuing Entity;

          (iii) through the appropriate subtrust, as applicable, receiving
               collections on the Mortgage Loans, the Swap Agreement and making
               payments on such Certificates and interests in accordance with
               the terms of this Agreement; and

          (iv) engaging in other activities that are necessary or incidental to
               accomplish these limited purposes, which activities cannot be
               contrary to the status of the Issuing Entity as a qualified
               special purpose entity under existing accounting literature.

     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
               the timely payment of such obligations is 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 rating the
               Certificates;

          (iii) commercial or finance company paper, other than commercial or
               finance company paper issued by the Depositor, the Trustee or any
               of their Affiliates, which is then receiving the highest
               commercial or finance company paper rating of each such Rating
               Agency;

          (iv) certificates of deposit, demand or time deposits, or bankers'
               acceptances (other than banker's acceptances issued by the
               Trustee or any of its Affiliates) 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
               are then rated one of the two highest long-term and the highest
               short-term ratings of each such 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;

          (vi) guaranteed reinvestment agreements issued by any bank, insurance
               company or other corporation rated in the two highest long-term
               or the highest short-term ratings of each Rating Agency
               containing, at the time of the issuance of such agreements, such
               terms and conditions as will not result in the downgrading or

                                      -51-

<PAGE>

               withdrawal of the rating then assigned to the Certificates by any
               such Rating Agency as evidenced by a letter from each Rating
               Agency;

          (vii) repurchase obligations with respect to any security described in
               clauses (i) and (ii) above, in either case entered into with a
               depository institution or trust company (acting as principal)
               described in clause (v) 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, other than the Trustee or any of its
               Affiliates, 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 long term ratings of each Rating Agency;

          (ix) interests in any money market fund (including those managed or
               advised by the Trustee or its Affiliates), which at the date of
               acquisition of the interests in such fund and throughout the time
               such interests are held in such fund has the highest applicable
               long term rating by each Rating Agency rating such fund; and

          (x)  short term investment funds sponsored by any trust company or
               national banking association incorporated under the laws of the
               United States or any state thereof, other than the Trustee or any
               of its Affiliates, which on the date of acquisition has been
               rated by each such Rating Agency in their respective highest
               applicable rating category;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or above par or (iii) is purchased at a deep discount; provided,
further, that no such instrument shall be a Permitted Investment (A) if such
instrument evidences principal and interest payments derived from obligations
underlying such instrument and the interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations, or (B) if it may be redeemed at
a price below the purchase price (the foregoing clause (B) not to apply to
investments in units of money market funds pursuant to clause (ix) above); and
provided, further, (I) that no amount beneficially owned by any REMIC
(including, without limitation, any amounts collected by the Servicer but not
yet deposited in the Collection Account) may be invested in investments (other
than money market funds) treated as equity interests for Federal income tax
purposes, unless the Servicer shall receive an Opinion of Counsel, at the
expense of the party requesting that such investment be made, to the effect that
such investment will not adversely affect the status of the any REMIC provided
for herein as a REMIC under the Code or result in imposition of a tax on the
Issuing Entity or any REMIC provided for herein and (II) each such investment
must be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code. Permitted Investments that are subject to prepayment or call may not be
purchased at a price in excess of par.

     Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by Section 511 of the Code on

                                      -52-

<PAGE>

unrelated business taxable income) on any excess inclusions (as defined in
Section 860E(c)(1) of the Code) with respect to the Class R Certificate, (iv)
rural electric and telephone cooperatives described in Section 1381(a)(2)(C) of
the Code, and (v) a Person that is not a citizen or resident of the United
States, a corporation or partnership (or other entity treated as a corporation
or partnership for United States federal income tax purposes) created or
organized in or under the laws of the United States or any State thereof or the
District of Columbia or an estate whose income from sources without the United
States is includable 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 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 authority to control all substantial decisions
of the trust, unless, in the case of this clause (v), such Person has furnished
the transferor and the Trustee with a duly completed Internal Revenue Service
Form W-8ECI or applicable successor form. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in Section 7701
of the Code. A corporation will not be treated as an instrumentality of the
United States or of any State 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, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated
organization or government, or any agency or political subdivision thereof.

     Pool Stated Principal Balance: As to any Distribution Date, the aggregate
of the Stated Principal Balances, as of such Distribution Date, of the Mortgage
Loans that were Outstanding Mortgage Loans as of such date.

     Posted Collateral: As defined in the Swap Agreement or the Corridor
Contracts, as applicable.

     Preliminary Statement: The paragraphs in the preamble to this Agreement
that precede Article I.

     Prepayment Assumption: A rate of prepayment, as described in the Prospectus
Supplement in the definition of "Modeling Assumptions," relating to the Offered
Certificates.

     Prepayment Charges: Any prepayment premium or charge payable by a Mortgagor
in connection with any Principal Prepayment on a Mortgage Loan pursuant to the
terms of the related Mortgage Note or Mortgage, as applicable.

     Prepayment Interest Excess: With respect to any Servicer Remittance Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day of the calendar month in which such Servicer Remittance Date occurs and the
last day of the related Prepayment Period, an amount equal to interest (to the
extent received) at the applicable Net Mortgage Rate on the amount of such
Principal Prepayment for the number of days commencing on the first day of the
calendar month in which such Servicer Remittance Date occurs and ending on the
date on which such Principal Prepayment is so applied.

     Prepayment Interest Shortfall: With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment in full (other
than a Principal Prepayment in full resulting from the purchase of a Mortgage
Loan pursuant to Section 2.02, 2.03 or 9.01 hereof and other than a Principal
Prepayment in full on a Mortgage Loan received during the period from and
including the first

                                      -53-

<PAGE>

day to and including the 14th day of the month of such Distribution Date), the
amount, if any, by which (i) one month's interest at the applicable Net Mortgage
Rate on the Stated Principal Balance of such Mortgage Loan as of the preceding
Distribution Date exceeds (ii) the amount of interest paid or collected in
connection with such Principal Prepayment.

     Prepayment Period: With respect to any Distribution Date (i) with respect
to prepayments in full or any other amounts received in connection with a
Principal Prepayment in full, the period beginning with the opening of business
on the 15th day of the calendar month preceding the month in which such
Distribution Date occurs (or in the case of the first Distribution Date,
beginning with the opening of business on the Cut-off Date) and ending on the
close of business on the 14th day of the month in which such Distribution Date
occurs and (ii) with respect to partial prepayments and any other amounts
received in connection with a payment in part, the calendar month preceding the
month of such Distribution Date.

     Principal Distribution Amount: With respect to each Distribution Date, the
sum of (i) the Principal Funds for such Distribution Date and (ii) any Extra
Principal Distribution Amount for such Distribution Date.

     Principal Funds: With respect to the Mortgage Loans and any Distribution
Date, the sum, without duplication, of (1) the scheduled principal due during
the related Due Period and received before the related Servicer Remittance Date
or advanced on or before the related Servicer Remittance Date, (2) Principal
Prepayments in full collected in the related Prepayment Period, (3) the Stated
Principal Balance of each Mortgage Loan that was purchased by the Depositor or
the Servicer during the related Prepayment Period or, in the case of a purchase
pursuant to Section 9.01, on the Business Day prior to such Distribution Date,
(4) the amount, if any, by which the aggregate unpaid principal balance of any
Replacement Mortgage Loan is less than the aggregate unpaid principal of the
related Deleted Mortgage Loans delivered by the Sponsor in connection with a
substitution of a Mortgage Loan pursuant to Section 2.03(c), (5) all Liquidation
Proceeds collected during the related Prepayment Period (to the extent such
Liquidation Proceeds relate to principal and represent payment in full), (6) all
Subsequent Recoveries received with regard to the applicable Prepayment Period
and (7) all other collections and recoveries in respect of principal, including
any partial prepayments of principal, with regard to the applicable Prepayment
Period, less (A) all Non-Recoverable Advances relating to principal with respect
to the Mortgage Loans and (B) other amounts reimbursable (including without
limitation indemnity payments) to the Servicer and the Trustee pursuant to this
Agreement allocable to principal.

     Principal Prepayment: Any Mortgagor payment or other recovery of (or
proceeds with respect to) principal on a Mortgage Loan (including Mortgage Loans
purchased or repurchased under Sections 2.02, 2.03 and 9.01 hereof) that is
received or recovered in advance of its scheduled Due Date and is not
accompanied by an amount as to interest 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 Servicer in accordance
with the terms of the related Mortgage Note.

     Prospectus Supplement: The Prospectus Supplement dated October 9, 2007,
relating to the public offering of the Offered Certificates.

     PUD: A Planned Unit Development.

     Purchase Price: With respect to any Mortgage Loan required to be
repurchased by the Sponsor pursuant to Section 2.02 or 2.03 hereof, an amount
equal to the sum of (i) 100% of the unpaid principal

                                      -54-

<PAGE>

balance of the Mortgage Loan as of the date of such purchase together with any
unreimbursed Servicing Advances, (ii) accrued interest thereon at the applicable
Mortgage Rate from (a) the date through which interest was last paid by the
Mortgagor to (b) the Due Date in the month in which the Purchase Price is to be
distributed to Certificateholders and (iii) any unreimbursed costs, penalties
and/or damages incurred by the Issuing Entity in connection with any violation
relating to such Mortgage Loan of any predatory or abusive lending law.

     QIB: A "qualified institutional buyer" within the meaning of Rule 144A.

     Rating Agency: Either of S&P or Moody's. If any such organization or its
successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization, or other comparable Person,
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.

     Rating Agency Condition: As defined in the Swap Agreement.

     Realized Loss: With respect to (1) a Liquidated Loan, the amount, if any,
by which the Stated Principal Balance and accrued interest thereon at the Net
Mortgage Rate exceeds the amount actually recovered by the Servicer with respect
thereto (net of reimbursement of Advances and Servicing Advances) at the time
such Mortgage Loan became a Liquidated Loan or (2) with respect to a Mortgage
Loan which is not a Liquidated Loan, any amount of principal that the Mortgagor
is no longer legally required to pay (except for the extinguishment of debt that
results from the exercise of remedies due to default by the Mortgagor).

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

     Reference Banks: Barclays Bank PLC, JPMorgan Chase Bank, N.A., Citibank,
N.A., Wells Fargo Bank, N.A. and NatWest, N.A.; provided that if any of the
foregoing banks are not suitable to serve as a Reference Bank, then any leading
banks selected by the Trustee, which are engaged in transactions in Eurodollar
deposits in the international Eurocurrency market (i) with an established place
of business in London, England, (ii) whose quotations appear on the Reuters
Screen LIBO Page on the relevant Interest Determination Date and (iii) which
have been designated as such by the Servicer.

     Regular Certificate: Any one of the Class A, Class M and Class B
Certificates.

     Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 229.1100-229.1123, as such may be amended from time to time,
and subject to such clarification and interpretation as have been provided by
the Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed Reg. 1,506, 1.531 (Jan. 7, 2005)) or by the staff of
the Commission, or as may be provided by the Commission or its staff from time
to time.

     Regulation S: Regulation S promulgated under the Securities Act or any
successor provision thereto, in each case as the same may be amended from time
to time; and all references to any rule, section or subsection of, or definition
or term contained in, Regulation S means such rule, section,

                                      -55-

<PAGE>

subsection, definition or term, as the case may be, or any successor thereto, in
each case as the same may be amended from time to time.

     Regulation S Book-Entry Certificates: Certificates sold in offshore
transactions in reliance on Regulation S in the form of one or more permanent
global Certificates in definitive, fully registered form without interest
coupons, which shall be deposited on behalf of the subscribers for such
Certificates represented thereby with the Trustee, as custodian for DTC and
registered in the name of a nominee of DTC.

     Related Certificates: For each interest in the Upper Tier REMIC, the Class
of Certificates listed on the same row in the table entitled "Upper Tier REMIC"
in the Preliminary Statement.

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

     Relief Act Shortfall: With respect to any Distribution Date and any
Mortgage Loan, any reduction in the amount of interest or principal collectible
on such Mortgage Loan for the most recently ended calendar month as a result of
the application of the Relief Act.

     REMIC: A "real estate mortgage investment conduit" within the meaning of
section 860D of the Code. References herein to "the REMICs" or "a REMIC" shall
mean any of (or, as the context requires, all of) the SWAP REMIC, the Lower Tier
REMIC and the Upper Tier REMIC.

     REMIC Pass-Through Rate: In the case of a Class of the Class A, Class M and
Class B Certificates, the Upper Tier REMIC Net WAC Cap for the Corresponding
REMIC Regular Interest.

     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 proposed,
temporary and final regulations and published rulings, notices and announcements
promulgated thereunder, as the foregoing may be in effect from time to time as
well as provisions of applicable state laws.

     REMIC Regular Interests: Each of the interests in the Upper Tier REMIC as
set forth in the Preliminary Statement other than the Residual Interest.

     REMIC SWAP Rate: For each Distribution Date (and the related Accrual
Period), a per annum rate equal to the Fixed Rate under the Swap Agreement for
such Distribution Date, as set forth in the Prospectus Supplement.

     Remittance Report: As defined in Section 4.04(j) hereof.

     REO Property: A Mortgaged Property acquired by the Servicer, on behalf of
the Trustee for the benefit of the Certificateholders, through foreclosure or
deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

     Replacement Mortgage Loan: One or more Mortgage Loans substituted by the
Depositor 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 I, (1) have a Stated Principal Balance (or in the case of a substitution
of more than one Mortgage Loan for a Deleted Mortgage Loan, an aggregate Stated
Principal Balance), after deduction of the principal portion of the Scheduled
Payment due in the month of

                                      -56-

<PAGE>

substitution, not in excess of, and not less than 90% of the Stated Principal
Balance of the Deleted Mortgage Loan; (2) with respect to any Fixed Rate
Mortgage Loan, have a Mortgage Rate not less than or no more than 1% per annum
higher than the Mortgage Rate of the Deleted Mortgage Loan and, with respect to
any Adjustable Rate Mortgage Loan: (A) have a Maximum Mortgage Rate no more than
1% per annum higher or lower than the Maximum Mortgage Rate of the Deleted
Mortgage Loan; (B) have a Minimum Mortgage Rate no more than 1% per annum higher
or lower than the Minimum Mortgage Rate of the Deleted Mortgage Loan; (C) have
the same index and Periodic Rate Cap as that of the Deleted Mortgage Loan and a
Gross Margin not more than 1% per annum higher or lower than that of the Deleted
Mortgage Loan; (D) not permit conversion of the related Mortgage Rate to a fixed
Mortgage Rate and (F) currently be accruing interest at a rate not more than 1%
per annum higher or lower than that of the Deleted Mortgage Loan; (3) have a
similar or higher FICO score or credit grade than that of the Deleted Mortgage
Loan; (4) have a Loan-to-Value Ratio no higher than that of the Deleted Mortgage
Loan; (5) have a remaining term to maturity no greater than (and not more than
one year less than) that of the Deleted Mortgage Loan; (6) provide for a
Prepayment Charge on terms substantially similar to those of the Prepayment
Charge, if any, of the Deleted Mortgage Loan; (7) have the same lien priority as
the Deleted Mortgage Loan; (8) constitute the same occupancy type as the Deleted
Mortgage Loan; and (9) comply with each representation and warranty set forth in
Section 2.03 hereof.

     Request for Release: The Request for Release of Documents submitted by the
Servicer to the Trustee, substantially in the form of Exhibit I hereto.

     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 Percentage: For any Distribution Date until the aggregate
Certificate Principal Balance of the Class A Certificates has been reduced to
zero, (i) the aggregate Stated Principal Balance of the Mortgage Loans as of the
prior Distribution Date less the outstanding Certificate Principal Balance of
the Class A Certificates prior to any distributions on such Distribution Date
divided by (ii) the aggregate Stated Principal Balance of the Mortgage Loans as
of the prior Distribution Date. For any Distribution Date on or after the
Distribution Date on which the aggregate Certificate Principal Balance of the
Class A Certificates has been reduced to zero, (i) the aggregate Stated
Principal Balance of the Mortgage Loans as of the prior Distribution Date less
the outstanding Certificate Principal Balance of the Class M-1 Certificates
prior to any distributions on such Distribution Date divided by (ii) the
aggregate Stated Principal Balance of the Mortgage Loans as of the prior
Distribution Date.

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

     Reserve Interest Rate: With respect to any Interest Determination Date, the
rate per annum that the Trustee determines to be (1) the arithmetic mean
(rounded upwards if necessary to the nearest whole multiple of 0.03125%) of the
one-month United States dollar lending rates which New York City banks selected
by the Trustee are quoting on the relevant Interest Determination Date to the
principal London offices of leading banks in the London interbank market or (2)
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 Interest Determination Date to leading
European banks.

     Residual Interest: An interest in the Upper Tier REMIC that is entitled to
all distributions of principal and interest on the Class R Certificate other
than distributions in respect of the Class SWR Interest and Class LTR Interest
and distributions on the Class R Certificate in respect of Excess Interest.

                                      -57-

<PAGE>

     Responsible Officer: When used with respect to the Trustee or the Servicer,
any officer of the Trustee or the Servicer with direct responsibility for the
administration of this Agreement and any other officer 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.

     Reuters Screen LIBO Page: The display designated as page "LIBO" on the
Reuters Monitor Money Rates Service (or such other page as may replace such LIBO
page on that service for the purpose of displaying London interbank offered
rates of major banks.

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

     Sarbanes-Oxley Certification: Has the meaning set forth in Section 3.20.

     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.

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

     Servicer: Home Loan Services, Inc., or its successor in interest.

     Servicer Remittance Date: With respect to any Distribution Date, the later
of (x) the date that is two (2) Business Days after the 15th day of the month in
which such Distribution Date occurs and (y) the 18th day (or if such day is not
a Business Day, the immediately succeeding Business Day) of the month in which
such Distribution Date occurs.

     Servicing Advances: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in the performance by the Servicer of its servicing
obligations hereunder, including, but not limited to, the cost of (1) the
preservation, inspection, restoration and protection of a Mortgaged Property,
including without limitation advances in respect of prior liens, real estate
taxes and assessments, (2) any collection, enforcement or judicial proceedings,
including without limitation foreclosures, collections and liquidations, (3) the
conservation, management, sale and liquidation of any REO Property, (4)
executing and recording instruments of satisfaction, deeds of reconveyance,
substitutions of trustees on deeds of trust or Assignments of Mortgage to the
extent not otherwise recovered from the related Mortgagors or payable under this
Agreement, (5) correcting errors of prior servicers; costs and expenses charged
to the Servicer by the Trustee; tax tracking; title research; flood
certifications; and lender paid mortgage insurance, (6) obtaining or correcting
any legal documentation required to be included in the Mortgage Files and
reasonably necessary for the Servicer to perform its obligations under this
Agreement and (7) compliance with the obligations under Sections 3.01 and 3.10.

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

     Servicing Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to the product of (x) the Servicing Fee Rate and (y) the Stated
Principal Balance of such Mortgage Loan as of the preceding Distribution Date
or, in the event of any payment of interest that accompanies a Principal
Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate on
the Stated Principal

                                      -58-

<PAGE>

Balance of such Mortgage Loan as of the preceding Distribution Date for the
period covered by such payment of interest.

     Servicing Fee Rate: 0.50% per annum for each Mortgage Loan.

     Servicing Modification: In connection with the determination of whether a
Stepdown Trigger Event has occurred, with respect to any Mortgage Loan that is
in default or with respect to which default is, in the judgment of the Servicer,
reasonably foreseeable, any modification that is effected by the Servicer that
results in any change to the payment terms of such Mortgage Loan.

     Servicing Officer: Any officer of the 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 Servicer on the Closing Date pursuant to this Agreement, as such
lists may from time to time be amended.

     Servicing Rights Pledgee: One or more lenders, selected by the Servicer, to
which the Servicer may pledge and assign all of its right, title and interest
in, to and under this Agreement.

     Servicing Transfer Costs: In the event that the Servicer does not reimburse
the Trustee under this Agreement, all costs associated with the transfer of
servicing from the predecessor Servicer, including, without limitation, any
costs or expenses associated with the termination of the predecessor Servicer,
the appointment of a successor servicer, the complete transfer of all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the Trustee or any successor servicer to correct any errors
or insufficiencies in the servicing data or otherwise to enable the Trustee or
successor servicer to service the Mortgage Loans properly and effectively.

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

     Significance Estimate: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be an amount determined based
on the reasonable good-faith estimate by the Depositor or its Affiliate (and
reported to the Trustee) of the aggregate maximum probable exposure of the
outstanding Certificates to the Swap Agreement and the Corridor Contracts, as
applicable.

     Significance Percentage: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be a percentage equal to the
Significance Estimate divided by the aggregate outstanding Stated Principal
Balance of the Mortgage Loans, prior to the distribution of the Principal
Distribution Amount on such Distribution Date.

     Sponsor: First Franklin Financial Corporation, a Delaware corporation, or
its successor in interest.

     Startup Day: As defined in Section 2.07 hereof.

     Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property (1) as of the Cut-off Date, the Cut-off Date Principal Balance thereof,
and (2) as of any Distribution Date, such Cut-off Date Principal Balance, minus
the sum of (A) the principal portion of the Scheduled Payments (x)

                                      -59-

<PAGE>

due with respect to such Mortgage Loan during each Due Period ending prior to
such Distribution Date and (y) that were received by the Servicer as of the
close of business on the Determination Date related to such Distribution Date or
with respect to which Advances were made on the Servicer Remittance Date prior
to such Distribution Date and (B) all Principal Prepayments with respect to such
Mortgage Loan received on or prior to (x) the last day of the related Prepayment
Period for Principal Prepayments in full and (y) the last day of the preceding
calendar month for Principal Prepayments in part, and all Liquidation Proceeds
to the extent applied by the Servicer as recoveries of principal in accordance
with Section 3.12 with respect to such Mortgage Loan, that were received by the
Servicer on or before the last day of the related Prepayment Period for
Liquidation Proceeds in full and the last day of the preceding calendar month
for Liquidation Proceeds in part. Notwithstanding the foregoing, the Stated
Principal Balance of a Liquidated Loan shall be deemed to be zero.

     Stepdown Date: The earlier to occur of: (A) the first Distribution Date on
which the aggregate Certificate Principal Balance of the Class 1-A Certificates
and Class 2-A Certificates has been reduced to zero; or (B) the later to occur
of (1) the Distribution Date in October 2010 or (2) the first Distribution Date
on which (A) the Class A Certificate Principal Balance (after giving effect to
distributions of the Principal Funds amount for such Distribution Date) is less
than or equal to (B) 43.80% of the aggregate Stated Principal Balance of the
Mortgage Loans.

     Stepdown Required Loss Percentage: For any Distribution Date, the
applicable percentage for such Distribution Date set forth in the following
table:

                                      -60-

<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN   STEPDOWN REQUIRED LOSS PERCENTAGE
------------------------------   ---------------------------------------
<S>                              <C>
October 2009 - September 2010    0.95% with respect to October 2009, plus an
                                 additional 1/12th 1.20% for each month
                                 thereafter

October 2010 - September 2011    2.15% with respect to October 2010, plus an
                                 additional 1/12th of 1.25% for each month
                                 thereafter

October 2011 - September 2012    3.40% with respect to October 2011, plus an
                                 additional 1/12th of 1.20% for each month
                                 thereafter

October 2012 - September 2013    4.60% with respect to October 2012, plus an
                                 additional 1/12th of 1.15% for each month
                                 thereafter

October 2013 - September 2014    5.75% with respect to October 2013, plus an
                                 additional 1/12th of 0.30% for each month
                                 thereafter

October 2014 and thereafter      6.05%
</TABLE>

                                      -61-

<PAGE>

     Stepdown Trigger Event: The situation that exists (I) with respect to any
Distribution Date on or after the Stepdown Date until the Certificate Principal
Balance of the Class A Certificates has been reduced to zero, if (a) the
quotient, measured on a rolling three-month basis, of (1) the aggregate Stated
Principal Balance of the Affected Mortgage Loans and (2) the sum of (A) the
Stated Principal Balance of all the Mortgage Loans as of the preceding Servicer
Remittance Date and (B) the Stated Principal Balance of the Mortgage Loans that
were repurchased from the Issuing Entity during the period that includes the
previous twelve (12) Distribution Dates, equals or exceeds the product of (i)
28.00% and (ii) the Required Percentage or (b) the quotient (expressed as a
percentage) of (1) the aggregate Realized Losses incurred from the Cut-off Date
through the last day of the calendar month preceding such Distribution Date and
(2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date exceeds the Stepdown Required Loss Percentage; and (II) with
respect to any Distribution Date on or after the Stepdown Date and the
Certificate Principal Balance of the Class A Certificates has been reduced to
zero, if (a) the quotient of (1) the aggregate Stated Principal Balance of the
Affected Mortgage Loans and (2) the sum of (A) the Stated Principal Balance of
all the Mortgage Loans as of the preceding Servicer Remittance Date and (B) the
Stated Principal Balance of the Mortgage Loans that were repurchased from the
Issuing Entity during the period that includes the previous twelve (12)
Distribution Dates, equals or exceeds the product of (i) 33.00% and (ii) the
Required Percentage or (b) the quotient (expressed as a percentage) of (1) the
aggregate Realized Losses incurred from the Cut-off Date through the last day of
the calendar month preceding such Distribution Date and (2) the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date exceeds the
Stepdown Required Loss Percentage shown above. For purposes hereof, for any
Distribution Date, the calculation of "rolling three-month basis" above requires
first, the calculation of the quotient described in (a) of this definition for
each of the three (3) Due Periods immediately prior to such Distribution Date,
second, the addition of such 3 quotients and third, dividing the sum of such 3
quotients by 3.

     Subcontractor: Any outsourcer that performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to 5% or more of the
Mortgage Loans under the direction or authority of a Servicer (measured by
aggregate Stated Principal Balance of the Mortgage Loans, annually at the
commencement of the calendar year prior to the year in which an Assessment of
Compliance is required to be delivered, multiplied by a fraction, the numerator
of which is the number of months during which such Subcontractor performs such
discrete functions and the denominator of which is 12, or, in the case of the
year in which the Closing Date occurs, the number of months elapsed in such
calendar year).

     Subordinate Certificate Corridor Contract: The confirmation and agreement,
including the schedule thereto and the related credit support annex (attached as
Exhibit M-4 hereto), between the Trustee on behalf of the Issuing Entity and the
Cap Contract Counterparty (attached as Exhibit M-3 hereto), with respect to the
Class M and Class B Certificates.

     Subordinate Certificate Corridor Contract Notional Balance: With respect to
any Distribution Date, the Subordinate Certificate Corridor Contract Notional
Balance set forth for such Distribution Date in the Subordinate Certificate
LIBOR Cap Table (attached as Schedule I to Exhibit M-3 hereto).

                                      -62-

<PAGE>

     Subordinate Certificate Corridor Contract Termination Date: The
Distribution Date in June 2013.

     Subordinate Certificate Upper Collar: With respect to each Distribution
Date with respect to which payments are received on the Subordinate Certificate
Corridor Contract, a rate equal to the lesser of One-Month LIBOR and (x) 7.110%
per annum for the Distribution Dates from October 2007 through September 2008
and (y) 12.000% per annum for the Distribution Dates from January 2012 through
June 2013.

     Subordinate Certificates: The Class M and Class B Certificates.

     Subsequent Recovery: Any amount received on a Mortgage Loan (net of amounts
reimbursed to the Servicer related to Liquidated Mortgage Loans) subsequent to
such Mortgage Loan being determined to be a Liquidated Mortgage Loan.

     Subservicer: Any Person that services Mortgage Loans on behalf of the
Servicer pursuant to a Subservicing Agreement and is responsible for the
performance of the material servicing functions required to be performed by the
Servicer under this Agreement that are identified in Item 1122(d) of Regulation
AB with respect to 10% or more of the Mortgage Loans under the direction or
authority of the Servicer (measured by aggregate Stated Principal Balance of the
Mortgage Loans, annually at the commencement of the calendar year prior to the
year in which an Assessment of Compliance is required to be delivered,
multiplied by a fraction, the numerator of which is the number of months during
which such Subservicer services the related Mortgage Loans and the denominator
of which is 12, or, in the case of the year in which the Closing Date occurs,
the number of months elapsed in such calendar year). Any subservicer shall meet
the qualifications set forth in Section 3.02.

     Subservicing Agreement: As defined in Section 3.02(a).

     Substitution Adjustment Amount: As defined in Section 2.03(c).

     Supplemental Interest Trust: The separate trust, established pursuant to
Section 4.04(l) of this Agreement and held by the Trustee for the benefit of the
holders of the Certificates as a segregated subtrust of the Trust Fund, (i) in
which the Swap Agreement will be held, certain distributions to
Certificateholders will be made and any Swap Termination Payments or Net Swap
Payments received from the Swap Counterparty will be deposited as set forth in
Section 4.04 hereof and (ii) out of which any Swap Termination Payments or Net
Swap Payments owed to the Swap Counterparty will be paid.

     Supplemental Interest Trust Trustee: LaSalle Bank National Association, a
national banking association, not in its individual capacity, but solely in its
capacity as trustee of the Supplemental Interest Trust for the benefit of the
Certificateholders under this Agreement, and any successor thereto, and any
corporation or national banking association resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee as may from time to time be serving as successor trustee
hereunder.

     Swap Account: The separate Eligible Account created and maintained by the
Supplemental Interest Trust Trustee pursuant to Section 4.04(l) in the name of
the Supplemental Interest Trust Trustee for the benefit of the Supplemental
Interest Trust and designated "LaSalle Bank National Association, as trustee, in
trust for registered holders of Merrill Lynch First Franklin Mortgage Loan
Trust, Series 2007-5, Mortgage Loan Asset-Backed Certificates." Funds in the
Swap Account shall be held in trust for the Supplemental Interest Trust for the
uses and purposes set forth in this Agreement.

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<PAGE>

     Swap Agreement: The confirmation and agreement, including the schedule
thereto and the related credit support annex (attached as Exhibit Q-2 hereto),
between the Swap Counterparty and the trustee of the Supplemental Interest Trust
for the benefit of the Certificateholders (attached as Exhibit Q-1 hereto) or
any other swap agreement (including any related schedules) held by the
Supplemental Interest Trust pursuant to Section 4.04(l) hereof.

     Swap Counterparty: The Bank of New York, or any successor counterparty who
meets the requirements set forth in the Swap Agreement.

     Swap LIBOR: With respect to any Distribution Date (and the related Accrual
Period) the product of (i) the Floating Rate Option (as defined in the Swap
Agreement for the related Swap Payment Date), (ii) two and (iii) the quotient of
(a) the actual number of days in the Accrual Period for the Lower Tier REMIC
Interests divided by (b) 30.

     Swap Payment Date: For so long as the Swap Agreement is in effect or
amounts remain unpaid thereunder, the Business Day immediately preceding each
Distribution Date.

     Swap Posted Collateral Account: The segregated Eligible Account created and
maintained by the Supplemental Interest Trust Trustee pursuant to Section
4.04(l) in the name of the Supplemental Interest Trust Trustee for the benefit
of the Supplemental Interest Trust and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Merrill Lynch First
Franklin Mortgage Loan Trust, Series 2007-5, Mortgage Loan Asset-Backed
Certificates." Funds in the Swap Posted Collateral Account shall be held in
trust for the Supplemental Interest Trust for the uses and purposes set forth in
the Swap Agreement

     SWAP REMIC: As described in the Preliminary Statement and Section 2.07.

     SWAP REMIC Interests: Each of the interests in the SWAP REMIC as set forth
in the Preliminary Statement.

     SWAP REMIC Regular Interests: Each of the SWAP REMIC Interests other than
the Class SWR Interest.

     Swap Termination Payment: Any payment payable by the Supplemental Interest
Trust or the Swap Counterparty upon termination of the Swap Agreement pursuant
to the Swap Agreement.

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

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

     Trust Fund: The corpus of the Issuing Entity created hereunder consisting
of (i) the Mortgage Loans and all interest and principal received on or with
respect thereto on and after the Cut-off Date to the extent not applied in
computing the Cut-off Date Principal Balance thereof, exclusive of interest not
required to be deposited in the Collection Account; (ii) the Collection Account
and the Certificate Account and all amounts deposited therein pursuant to the
applicable provisions of this Agreement; (iii) property that secured a Mortgage
Loan and has been acquired by foreclosure, deed in lieu of foreclosure or
otherwise; (iv) the mortgagee's rights under the Insurance Policies with respect
to the Mortgage Loans and/or the related Mortgaged Properties; (v) all proceeds
of the conversion, voluntary or involuntary, of

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<PAGE>

any of the foregoing into cash or other liquid property; (vi) the Corridor
Contracts and the Corridor Contract Account; and (vii) the Supplemental Interest
Trust, which in turn holds the Swap Agreement.

     Trustee: LaSalle Bank National Association, a national banking association,
not in its individual capacity, but solely in its capacity as trustee for the
benefit of the Certificateholders under this Agreement, and any successor
thereto, and any corporation or national banking association resulting from or
surviving any consolidation or merger to which it or its successors may be a
party and any successor trustee as may from time to time be serving as successor
trustee hereunder; it being understood that certain duties of the Trustee under
Sections 2.01, 2.02 and 3.13 with respect to the possession and administration
of the Mortgage Files generally may be carried out by a custodian engaged by the
Trustee.

     Uncertificated Class C Interest: An uncertificated REMIC Regular Interest
having the characteristics described in the Preliminary Statement.

     Unpaid Realized Loss Amount: The Class M-1 Unpaid Realized Loss Amount,
Class M-2 Unpaid Realized Loss Amount, Class M-3 Unpaid Realized Loss Amount,
Class M-4 Unpaid Realized Loss Amount, Class M-5 Unpaid Realized Loss Amount,
Class M-6 Unpaid Realized Loss Amount, Class B-1 Unpaid Realized Loss Amount,
Class B-2 Unpaid Realized Loss Amount, Class B-3 Unpaid Realized Loss Amount and
Class C Unpaid Realized Loss Amount, collectively.

     Upper Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Upper Tier REMIC Net WAC Cap: In the case of the Class UT1-A Interest and
the Residual Interest, a per annum rate equal to the weighted average of the
interest rate of the Class LTII1B Interest for such Distribution Date. In the
case of the Class UT2-A1, Class UT2-A2 and Class UT2-A3 Interests, a per annum
rate equal to the weighted average of the interest rate for the Class LTII2B for
such Distribution Date. In the case of the Class UTM-1, Class UTM-2, Class
UTM-3, Class UTM-4, Class UTM-5, Class UTM-6, Class UTB-1, Class UTB-2 and Class
UTB-3 Interests, a per annum rate equal to the weighted average of the interest
rates of Class LTII1B and Class LTII2B Interests for such Distribution Date
weighted, respectively, on the basis of the uncertificated principal balances of
the Class LTII1A and the Class LTII2A Interests.

     Voting Rights: The portion of the voting rights of all the Certificates
that is allocated to any of the Certificates for purposes of the voting
provisions hereunder. Voting Rights allocated to each Class of Certificates
shall be allocated as follows: (1) 98% to the Class A, Class M and Class B
Certificates, with the allocation among such Certificates to be in proportion to
the Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other Classes and (2) each Class of the Class C and
Class P will be allocated 1% of the Voting Rights. Voting Rights will be
allocated among the Certificates of each such Class in accordance with their
respective Percentage Interests.

     Weighted Average Available Funds Cap: With respect to a Distribution Date,
the per annum rate equal to the weighted average (weighted in proportion to the
results of subtracting from the aggregate Stated Principal Balance of each
Mortgage Group, the current aggregate Certificate Principal Balance of the Class
1-A and Class R Certificates, in the case of Group One, or the Class 2-A
Certificates, in the case of Group Two) of the Class 1-A Available Funds Cap and
the Class 2-A Available Funds Cap.

     Weighted Average Maximum Rate Cap: With respect to a Distribution Date, the
per annum rate equal to the weighted average (weighted in proportion to the
results of subtracting from the aggregate

                                      -65-

<PAGE>

Stated Principal Balance of each Mortgage Group, the current aggregate
Certificate Principal Balance of the Class 1-A and Class R Certificates, in the
case of Group One, or the Class 2-A Certificates, in the case of Group Two) of
the Class 1-A Maximum Rate Cap and the Class 2-A Maximum Rate Cap.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

     SECTION 2.01. Conveyance of Mortgage Loans

     The Depositor, concurrently with the execution and delivery hereof, does
hereby sell, transfer, assign, set over and convey to the Trustee without
recourse all the right, title and interest of the Depositor in and to the assets
of the Trust Fund. Such assignment includes all interest and principal received
on or with respect to the Mortgage Loans on or after the Cut-off Date (other
than Scheduled Payments due on the Mortgage Loans on or before the Cut-off
Date).

     It is agreed and understood by the Depositor, the Servicer and the Trustee
that it is not intended that any Mortgage Loan be included in the Trust that is,
without limitation, either (i) a "High-Cost Home Loan" as defined in the New
Jersey Home Ownership Act effective November 27, 2003; (ii) a "High-Cost Home
Loan" as defined in the New Mexico Home Loan Protection Act effective January 1,
2004; (iii) a "High-Cost Home Mortgage Loan" as defined in the Massachusetts
Predatory Home Loan Practices Act effective November 7, 2004; (iv) a "High-Cost
Home Loan" as defined by the Indiana High Cost Home Loan Law effective January
1, 2005 or (v) a "High-Cost Home Loan" as defined by the Illinois High Risk Home
Loan Act effective January 1, 2004.

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

          (A) The original Mortgage Note endorsed in blank or, "Pay to the order
     of LaSalle Bank National Association, as trustee for the Merrill Lynch
     First Franklin Mortgage Loan Trust, Mortgage Loan Asset-Backed
     Certificates, Series 2007-5, without recourse" together with all riders
     thereto. The Mortgage Note shall include all intervening endorsements
     showing a complete chain of the title from the originator of the Mortgage
     Loan to [____________________].

          (B) Except as provided below and for each Mortgage Loan that is not a
     MERS Loan, the original recorded Mortgage together with all riders thereto,
     with evidence of recording thereon, or, if the original Mortgage has not
     yet been returned from the recording office, a copy of the original
     Mortgage together with all riders thereto certified to be a true copy of
     the original of the Mortgage that has been delivered for recording in the
     appropriate recording office of the jurisdiction in which the Mortgaged
     Property is located and in the case of each MERS Loan, the original
     Mortgage together with all riders thereto, noting the presence of the MIN
     of the Loan and either language indicating that 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

                                      -66-

<PAGE>

     evidence of recording indicated thereon, or a copy of the Mortgage
     certified by the public recording office in which such Mortgage has been
     recorded.

          (C) In the case of each Mortgage Loan that is not a MERS Loan, the
     original Assignment of each Mortgage in blank or, to "LaSalle Bank National
     Association, as trustee for the Merrill Lynch First Franklin Mortgage Loan
     Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-5."

          (D) The original policy of title insurance (or a preliminary title
     report, commitment or binder if the original title insurance policy has not
     been received from the title insurance company).

          (E) Originals of any intervening assignments of the Mortgage, with
     evidence of recording thereon or, if the original intervening assignment
     has not yet been returned from the recording office, a copy of such
     assignment certified to be a true copy of the original of the assignment
     which has been sent for recording in the appropriate jurisdiction in which
     the Mortgaged Property is located.

          (F) Originals of all assumption and modification agreements, if any,
     and, for each Accommodated Mortgage Loan, documents evidencing the
     Adjustment Date Waiver.

          (G) If in connection with any Mortgage Loan, the Depositor cannot
     deliver the Mortgage, Assignments of Mortgage or assumption, consolidation
     or modification, as the case may be, with evidence of recording thereon, if
     applicable, concurrently with the execution and delivery of this Agreement
     solely because of a delay caused by the public recording office where such
     Mortgage, Assignments of Mortgage or assumption, consolidation or
     modification, as the case may be, has been delivered for recordation, the
     Depositor shall deliver or cause to be delivered to the Trustee written
     notice stating that such Mortgage or assumption, consolidation or
     modification, as the case may be, has been delivered to the appropriate
     public recording office for recordation. Thereafter, the Depositor shall
     deliver or cause to be delivered to the Trustee such Mortgage, Assignments
     of Mortgage or assumption, consolidation or modification, as the case may
     be, with evidence of recording indicated thereon, if applicable, upon
     receipt thereof from the public recording office. To the extent any
     required endorsement is not contained on a Mortgage Note or an Assignment
     of Mortgage, the Depositor shall make or cause to be made such endorsement.

          (H) With respect to any Mortgage Loan, none of the Depositor, the
     Servicer or the Trustee shall be obligated to cause to be recorded the
     Assignment of Mortgage referred to in this Section 2.01. In the event an
     Assignment of Mortgage is not recorded, the Servicer shall have no
     liability for its failure to receive and act on notices related to such
     Assignment of Mortgage.

          (I) With respect to the Adjustment Date Waivers, the Depositor and the
     Servicer shall cause delivery of such documents to the Trustee by no later
     than 45 days following the Closing Date. For avoidance of doubt, the
     Depositor, the Servicer and the Trustee acknowledge and agree that no
     Adjustment Date Waivers have been delivered to or received by the Trustee
     on or prior to the Closing Date and, therefore, any initial certification
     provided by the Trustee on or prior to the Closing Date shall not include
     any certification or reference to the Adjustment Date Waivers.

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<PAGE>

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

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

     In addition to the conveyance made in the first paragraph of this Section
2.01, the Depositor does hereby convey, assign and set over to the Trustee for
the benefit of the Certificateholders its rights and interests under (x) the
FFFC Purchase Agreement, including the Depositor's right, title and interest in
the representations and warranties contained in the FFFC Purchase Agreement and
the benefit of the repurchase obligations and the obligation of the Sponsor
contained in the FFFC Purchase Agreement to take, at the request of the
Depositor or the Trustee, all action on its part which is reasonably necessary
to ensure the enforceability of a Mortgage Loan and (y) the Guarantee. The
Trustee hereby accepts such assignment, and shall be entitled to exercise all
rights of the Depositor under the Guarantee and the FFFC Purchase Agreement as
if, for such purpose, it were the Depositor. The foregoing sale, transfer,
assignment, set-over, deposit and conveyance does not and is not intended to
result in creation or assumption by the Trustee of any obligation of the
Depositor, the Sponsor, or any other Person in connection with the Mortgage
Loans or any other agreement or instrument relating thereto.

     SECTION 2.02. Acceptance by the Trustee of the Mortgage Loans

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<PAGE>

     Except as set forth in the exception report delivered contemporaneously
herewith (the "Exception Report"), the Trustee acknowledges receipt of the
Mortgage Note for each Mortgage Loan and delivery of a Mortgage File (but does
not acknowledge receipt of all documents required to be included in such
Mortgage File) with respect to each Mortgage Loan and declares that it holds and
will hold such documents and any other documents constituting a part of the
Mortgage Files delivered to it in trust for the use and benefit of all present
and future Certificateholders. The Depositor will cause the Sponsor to
repurchase any Mortgage Loan to which a material exception was taken in the
Exception Report unless such exception is cured to the satisfaction of the
Depositor and the Trustee within forty-five (45) Business Days of the Closing
Date.

     The Trustee acknowledges receipt of the three Corridor Contracts (forms of
which are attached hereto as Exhibits M-1, M-2 and M-3) and the FFFC Purchase
Agreement.

     The Trustee acknowledges receipt of the Swap Agreement that will be held in
the Supplemental Interest Trust and is hereby instructed to enter into the Swap
Agreement, not in its individual capacity, but solely as Supplemental Interest
Trust Trustee.

     The Trustee agrees, for the benefit of Certificateholders and the NIMs
Insurer to review each Mortgage File delivered to it within sixty (60) days
after the Closing Date. The Trustee will ascertain and to certify, within
seventy (70) days of the Closing Date, to the NIMs Insurers, the Depositor and
the Servicer that all documents required by Section 2.01 (A)-(B), (C) (if
applicable), and (D)-(E), and the documents if actually received by it, under
Section 2.01(F), have been executed and received, and that such documents relate
to the Mortgage Loans identified in Exhibit B that have been conveyed to it. It
is herein acknowledged that, in conducting such review, the Trustee shall not be
under any duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that they are genuine,
enforceable or appropriate for the represented purpose, that they have actually
been recorded or that they are other than what they purport to be on their face.
If the Trustee finds any document or documents constituting a part of a Mortgage
File to be missing or defective (that is, mutilated, damaged, defaced or
unexecuted) in any material respect, the Trustee shall promptly (and in any
event within no more than five (5) Business Days) after such finding so notify
the NIMs Insurer, the Servicer, the Sponsor and the Depositor. In addition, the
Trustee shall also notify the NIMs Insurer, the Servicer, the Sponsor and the
Depositor if the original Mortgage with evidence of recording thereon with
respect to a Mortgage Loan is not received within seventy (70) days of the
Closing Date; if it has not been received because of a delay caused by the
public recording office where such Mortgage has been delivered for recordation,
the Depositor shall deliver or cause to be delivered to the Trustee written
notice stating that such Mortgage has been delivered to the appropriate public
recording office for recordation and thereafter the Depositor shall deliver or
cause to be delivered such Mortgage with evidence of recording thereon upon
receipt thereof from the public recording office. The Trustee shall request that
the Sponsor correct or cure such omission, defect or other irregularity, or
substitute a Mortgage Loan pursuant to the provisions of Section 2.03(c), within
ninety (90) days from the date the Sponsor was notified of such omission or
defect and, if the Sponsor does not correct or cure such omission or defect
within such period, that the Sponsor purchase such Mortgage Loan from the
Issuing Entity within ninety (90) days from the date the Trustee notified the
Sponsor of such omission, defect or other irregularity at the Purchase Price of
such Mortgage Loan.

     The Purchase Price for any Mortgage Loan purchased pursuant to this Section
2.02 shall be paid to the Servicer and deposited by the Servicer in the
Certificate Account or Collection Account, as appropriate, promptly upon
receipt, and upon receipt by the Trustee of written notification of such deposit

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<PAGE>

signed by a Servicing Officer or receipt of such deposit by the Trustee, the
Trustee, upon receipt of a Request for Release and certification of the Servicer
of such required deposit, shall promptly release to the Sponsor the related
Mortgage File and the Trustee shall execute and deliver such instruments of
transfer or assignment, without recourse, as shall be requested by the Sponsor
and necessary to vest in the Sponsor or its designee, as the case may be, any
Mortgage Loan released pursuant hereto, and the Trustee shall have no further
responsibility with regard to such Mortgage Loan. It is understood and agreed
that the obligation of the Sponsor to purchase, cure or substitute any Mortgage
Loan as to which a material defect in or omission of a constituent document
exists shall constitute the sole remedy respecting such defect or omission
available to the Trustee on behalf of Certificateholders and the NIMs Insurer.
The preceding sentence shall not, however, limit any remedies available to
Certificateholders, the NIMs Insurer, the Depositor or the Trustee pursuant to
the FFFC Purchase Agreement.

     The Trustee shall be under no duty or obligation to inspect, review and
examine such documents, instruments, certificates or other papers to determine
that they are genuine, enforceable, recordable, duly authorized, sufficient,
legal, valid or appropriate to the represented purpose, or that they have
actually been recorded, or that they are other than what they purport to be on
their face. The Trustee shall keep confidential the name of each Mortgagor
except as required for the performance of this Agreement and the Trustee shall
not solicit any such Mortgagor for the purpose of refinancing the related
Mortgage Loan; notwithstanding anything herein to the contrary, the foregoing
shall not be construed to prohibit (i) disclosure of any and all information
that is or becomes publicly known, or information obtained by the Trustee from
sources other than the other parties hereto, (ii) disclosure of any and all
information (A) if required to do so by any applicable law, rule or regulation,
(B) to any government agency or regulatory body having or claiming authority to
regulate or oversee any aspects of the business of the Trustee or that of any
Affiliate, (C) pursuant to any subpoena, civil investigation demand or similar
demand or request of any court, regulatory authority, arbitrator or arbitration
to which the Trustee or any Affiliate or an officer, director, employer or
shareholder thereof is a party or (D) to any Affiliate, independent or internal
auditor, agent, employee or attorney of the Trustee having a need to know the
same, provided that the Trustee advises such recipient of the confidential
nature of the information being disclosed, or (iii) any other disclosure
authorized by the Depositor.

     Within seventy (70) days of the Closing Date, the Trustee shall deliver to
the NIMs Insurer, the Depositor and the Servicer the Trustee's Certification,
substantially in the form of Exhibit D attached hereto, evidencing the
completeness of the Mortgage Files, with any exceptions noted thereto.

     SECTION 2.03. Representations, Warranties and Covenants of the Depositor

          (a) The Depositor hereby represents and warrants to the NIMs Insurer,
the Servicer and the Trustee as follows, as of the date hereof:

          (i) The Depositor is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Delaware and
     has full power and authority (corporate and other) necessary to own or hold
     its properties and to conduct its business as now conducted by it and to
     enter into and perform its obligations under this Agreement and the FFFC
     Purchase Agreement.

          (ii) The Depositor has the full corporate power and authority to
     execute, deliver and perform, and to enter into and consummate the
     transactions contemplated by, this Agreement and the FFFC Purchase
     Agreement and has duly authorized, by all necessary corporate action on its

                                      -70-

<PAGE>

     part, the execution, delivery and performance of this Agreement and the
     FFFC Purchase Agreement; and this Agreement and the FFFC Purchase
     Agreement, assuming the due authorization, execution and delivery hereof by
     the other parties hereto, constitutes a legal, valid and binding obligation
     of the Depositor, enforceable against the Depositor in accordance with its
     terms, subject, as to enforceability, to (i) bankruptcy, insolvency,
     reorganization, moratorium and other similar laws affecting creditors'
     rights generally and (ii) general principles of equity, regardless of
     whether enforcement is sought in a proceeding in equity or at law.

          (iii) The execution and delivery of this Agreement and the FFFC
     Purchase Agreement by the Depositor, the consummation of the transactions
     contemplated by this Agreement and the FFFC Purchase Agreement, and the
     fulfillment of or compliance with the terms hereof are in the ordinary
     course of business of the Depositor and will not (A) result in a material
     breach of any term or provision of the charter or by-laws of the Depositor
     or (B) materially conflict with, result in a violation or acceleration of,
     or result in a material default under, the terms of any other material
     agreement or instrument to which the Depositor is a party or by which it
     may be bound or (C) constitute a material violation of any statute, order
     or regulation applicable to the Depositor of any court, regulatory body,
     administrative agency or governmental body having jurisdiction over the
     Depositor; and the Depositor 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 the Depositor's ability to perform or meet
     any of its obligations under this Agreement.

          (iv) No litigation is pending, or, to the best of the Depositor's
     knowledge, threatened, against the Depositor that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement and the FFFC Purchase Agreement or the ability of the Depositor
     to perform its obligations under this Agreement and the FFFC Purchase
     Agreement in accordance with the terms hereof.

          (v) No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by the Depositor of, or compliance by the Depositor with, this
     Agreement and the FFFC Purchase Agreement or the consummation of the
     transactions contemplated hereby, or if any such consent, approval,
     authorization or order is required, the Depositor has obtained the same.
     The Depositor hereby represents and warrants to the Trustee with respect to
     each Mortgage Loan as of the Closing Date, and following the transfer of
     the Mortgage Loans to it by the Sponsor, the Depositor had good title to
     the Mortgage Loans and the Mortgage Notes were subject to no offsets,
     claims, liens, mortgage, pledge, charge, security interest, defenses or
     counterclaims.

          (b) The representations and warranties of the Sponsor with respect to
the Mortgage Loans in the FFFC Purchase Agreement, which have been assigned to
the Trustee hereunder, were made as of the Closing Date as specified in the FFFC
Purchase Agreement. The Trustee acknowledges that the Depositor shall have no
obligation or liability with respect to any breach of any representation or
warranty with respect to the Mortgage Loans (except as set forth in Section
2.03(a)(v)) under any circumstances.

          (c) Upon discovery by any of the NIMs Insurer, the Depositor, the
Servicer, the Sponsor or the Trustee (or its custodian) of a breach of any of
such representations and warranties that adversely and materially affects the
value of the related Mortgage Loan, Prepayment Charges or the

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<PAGE>

interests of the Certificateholders, the party discovering such breach shall
give prompt written notice to the other parties. Within ninety (90) days of the
discovery of such breach of any representation or warranty, the Depositor shall
cause the Sponsor to either (a) cure such breach in all material respects, (b)
repurchase such Mortgage Loan or any property acquired in respect thereof from
the Trustee at the Purchase Price or (c) within the two year period following
the Closing Date, substitute a Replacement Mortgage Loan for the affected
Mortgage Loan. If a breach of the representations and warranties set forth in
the FFFC Purchase Agreement exists solely due to the unenforceability of a
Prepayment Charge, the Trustee or the other party having notice thereof shall
notify the Servicer thereof and not seek to enforce the repurchase remedy
provided for herein unless such Mortgage Loan is not current. In the event that
such breach relates solely to the unenforceability of a Prepayment Charge,
amounts received in respect of such indemnity up to the amount of such
Prepayment Charge shall be distributed pursuant to Section 4.04(b)(i). As
provided in the FFFC Purchase Agreement, if the Sponsor substitutes for a
Mortgage Loan for which there is a breach of any representation or warranty in
the FFFC Purchase Agreement, which adversely and materially affects the value of
such Mortgage Loan and such substitute mortgage loan is not a Replacement
Mortgage Loan, under the terms of the FFFC Purchase Agreement, the Sponsor will,
in exchange for such substitute Mortgage Loan, (i) provide the applicable
Purchase Price for the affected Mortgage Loan or (ii) within two years of the
Closing Date, substitute such affected Mortgage Loan with a Replacement Mortgage
Loan. Any such substitution shall not be effected prior to the additional
delivery to the Trustee of a Request for Release substantially in the form of
Exhibit I and shall not be effected unless it is within two years of the Startup
Day. The Sponsor indemnifies and holds the Issuing Entity, the Trustee, the
Depositor, the Servicer, the NIMs Insurer and each Certificateholder harmless
against any and all taxes, claims, losses, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments, and any other costs, fees
and expenses that the Issuing Entity, the Trustee, the Depositor, the Servicer,
the NIMs Insurer and any Certificateholder may sustain in connection with any
actions of the Sponsor relating to a repurchase of a Mortgage Loan other than in
compliance with the terms of this Section 2.03 and the FFFC Purchase Agreement
to the extent that any such action causes (i) any federal or state tax to be
imposed on the Issuing Entity or any REMIC provided for herein, including
without limitation, any federal tax imposed on "prohibited transactions" under
Section 860F(a)(1) of the Code or on "contributions after the startup day" under
Section 860G(d)(1) of the Code, or (ii) any REMIC created hereunder to fail to
qualify as a REMIC at any time that any Certificate is outstanding.

     With respect to any Mortgage Loan repurchased by the Sponsor pursuant to
the FFFC Purchase Agreement, the principal portion of the funds received by the
Servicer in respect of such repurchase of a Mortgage Loan will be considered a
Principal Prepayment and shall be deposited in the Certificate Account pursuant
to Section 3.05. Upon receipt by the Trustee of notice from the Servicer of
receipt by the Servicer of the full amount of the Purchase Price for a Deleted
Mortgage Loan, and upon receipt by the Trustee of the Mortgage File for a
Replacement Mortgage Loan substituted for a Deleted Mortgage Loan and a Request
for Release, the Trustee shall release and reassign to the Sponsor the related
Mortgage File for the Deleted Mortgage Loan and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse,
representation or warranty, as shall be necessary to vest in such party or its
designee or assignee title to any Deleted Mortgage Loan released pursuant
hereto, free and clear of all security interests, liens and other encumbrances
created by this Agreement, which instruments shall be prepared by the Depositor
or the Sponsor, and the Trustee (and its custodian) shall have no further
responsibility with respect to the Mortgage File relating to such Deleted
Mortgage Loan.

     With respect to each Replacement Mortgage Loan to be delivered to the
Trustee pursuant to the terms of this Article II in exchange for a Deleted
Mortgage Loan: (i) the Sponsor must deliver to the Trustee the Mortgage File for
the Replacement Mortgage Loan containing the documents set forth in

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<PAGE>

Section 2.01 along with a written certification certifying as to the Mortgage
Loan satisfying all requirements under the definition of Replacement Mortgage
Loan and the delivery of such Mortgage File and containing the granting language
set forth in Section 2.01; and (ii) the Depositor will be deemed to have made,
with respect to such Replacement Mortgage Loan, each of the representations and
warranties made by it with respect to the related Deleted Mortgage Loan. The
Trustee shall review the Mortgage File with respect to each Replacement Mortgage
Loan and certify to the Depositor that all documents required by Section
2.01(A)-(B), (C) (if applicable), and (D)-(E) have been executed and received.

     For any month in which the Sponsor substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Sponsor will
determine the amount (if any) by which the aggregate principal balance of all
such Replacement Mortgage Loans as of the date of substitution and the aggregate
Prepayment Charges with respect to such Replacement Mortgage Loans is less than
the aggregate Stated Principal Balance (after application of the principal
portion of the Scheduled Payment due in the month of substitution) and aggregate
Prepayment Charges of all such Deleted Mortgage Loans. An amount equal to the
aggregate of the deficiencies described in the preceding sentence (such amount,
the "Substitution Adjustment Amount") plus an amount equal to any unreimbursed
costs, penalties and/or damages incurred by the Trust Fund in connection with
any violation relating to such Deleted Mortgage Loan of any predatory or abusive
lending law shall be remitted by the Sponsor to the Trustee for deposit into the
Certificate Account by the Sponsor on the Determination Date for the
Distribution Date relating to the Prepayment Period during which the related
Mortgage Loan became required to be purchased or replaced hereunder.

     Notwithstanding any other provision of this Agreement, the right to
substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Replacement Mortgage Loan for a
Deleted Mortgage Loan shall be made unless the Trustee shall have received an
Opinion of Counsel (at the expense of the party seeking to make the
substitution) that, under current law, such substitution will not (A) affect
adversely the status of any REMIC established hereunder as a REMIC, or of the
related "regular interests" as "regular interests" in any such REMIC, or (B)
cause any such REMIC to engage in a "prohibited transaction" or prohibited
contribution pursuant to the REMIC Provisions.

     The Depositor shall amend the Mortgage Loan Schedule to reflect the removal
of such Deleted Mortgage Loan from the terms of this Agreement and the
substitution of the Replacement Mortgage Loan or Replacement Mortgage Loans.
Upon such substitution by the Sponsor, such Replacement Mortgage Loan or
Replacement Mortgage Loans shall constitute part of the Mortgage Pool and shall
be subject in all respects to the terms of this Agreement and the FFFC Purchase
Agreement, including all applicable representations and warranties thereof
included in the FFFC Purchase Agreement, as of the date of substitution.

          (d) It is understood and agreed that the representations, warranties
and indemnification (i) set forth in this Section 2.03 and (ii) of the Sponsor
set forth in the FFFC Purchase Agreement, and assigned to the Trustee by the
Depositor hereunder shall each survive delivery of the Mortgage Files and the
Assignment of Mortgage of each Mortgage Loan to the Trustee and shall continue
throughout the term of this Agreement.

          (e) The Depositor shall deliver a copy of the Mortgage Loan Schedule
to the Servicer on the Closing Date.

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<PAGE>

          (f) The Depositor shall notify the Servicer and the Trustee when any
NIM Notes are issued with the contact information of the issuer thereof and when
such NIM Notes are no longer outstanding and if such NIM Notes are insured by a
NIMs Insurer, the contact information with respect to such NIMs Insurer.

     SECTION 2.04. Representations and Warranties of the Servicer

          (a) The Servicer hereby represents and warrants to the Depositor and
the Trustee as follows, as of the date hereof:

          (i) The Servicer is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Delaware and is
     duly authorized and qualified to transact any and all business contemplated
     by this Agreement to be conducted by the Servicer 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 this Agreement and to perform any of
     its other obligations under this Agreement in accordance with the terms
     hereof.

          (ii) The Servicer has the corporate power and authority and to service
     each Mortgage Loan, and to execute, deliver and perform, and to enter into
     and consummate the transactions contemplated by this Agreement and has duly
     authorized by all necessary corporate action on the part of the Servicer
     the execution, delivery and performance of this Agreement; and this
     Agreement, assuming the due authorization, execution and delivery hereof by
     the other parties hereto, constitutes a legal, valid and binding obligation
     of the Servicer, enforceable against the Servicer in accordance with its
     terms, except that (a) the enforceability hereof 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.

          (iii) The execution and delivery of this Agreement by the Servicer,
     the servicing of the Mortgage Loans under this Agreement, the consummation
     of any other of the transactions contemplated by this Agreement, and the
     fulfillment of or compliance with the terms hereof are in the ordinary
     course of business of the Servicer and will not (A) result in a material
     breach of any term or provision of the charter or by-laws of the Servicer
     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 the Servicer is a party or
     by which it may be bound, or (C) constitute a material violation of any
     statute, order or regulation applicable to the Servicer of any court,
     regulatory body, administrative agency or governmental body having
     jurisdiction over the Servicer; and the Servicer 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 the
     Servicer's ability to perform or meet any of its obligations under this
     Agreement.

          (iv) The Servicer is an approved servicer of mortgage loans for Fannie
     Mae.

                                      -74-

<PAGE>

          (v) No litigation is pending or, to the best of the Servicer's
     knowledge, threatened, against the Servicer that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement or the ability of the Servicer to service the Mortgage Loans or
     to perform any of its other obligations under this Agreement in accordance
     with the terms hereof.

          (vi) No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by the Servicer of, or compliance by the Servicer with, this
     Agreement or the consummation of the transactions contemplated hereby, or
     if any such consent, approval, authorization or order is required, the
     Servicer has obtained the same.

     SECTION 2.05. Substitutions and Repurchases of Mortgage Loans that are not
"Qualified Mortgages"

     Upon discovery by the Depositor, the 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 Depositor
shall cause the Sponsor, at the Sponsor's option, to either (i) substitute, if
the conditions in Section 2.03(c) with respect to substitutions are satisfied, a
Replacement Mortgage Loan for the affected Mortgage Loan, or (ii) repurchase the
affected Mortgage Loan within ninety (90) days of such discovery in the same
manner as it would a Mortgage Loan for a breach of representation or warranty
contained in Section 2.03. The Trustee, upon the written direction of the
Sponsor, shall reconvey to the Sponsor 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 2.03.

     SECTION 2.06. Authentication and Delivery of Certificates

     The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, the Trustee has caused
to be authenticated and delivered to or upon the order of the Depositor, in
exchange for the Mortgage Loans, Certificates duly authenticated by the
Authenticating Agent in authorized denominations evidencing ownership of the
entire 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 its duties set forth in this Agreement in
accordance with the provisions hereof.

     SECTION 2.07. REMIC Elections

          (a) The Depositor hereby instructs and authorizes the Trustee to make
an appropriate election to treat each of the Upper Tier REMIC, the Lower Tier
REMIC and the SWAP REMIC as a REMIC. The Trustee shall sign the returns
providing for such elections and such other tax or information returns that are
required to be signed by the Trustee under applicable law. This Agreement shall
be construed so as to carry out the intention of the parties that each of the
Upper Tier REMIC, the Lower Tier REMIC and the SWAP REMIC be treated as a REMIC
at all times prior to the date on which the Trust Fund is terminated.

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

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<PAGE>

purposes of the REMIC Provisions shall be the Closing Date. Each REMIC's fiscal
year shall be the calendar year.

     The SWAP REMIC shall consist of all of the assets of the Trust Fund, other
than (i) amounts distributable to the Class P Certificates pursuant to Section
4.04(b)(i) hereof, (ii) the interests issued by the SWAP REMIC and the interests
issued by the Lower Tier REMIC, (iii) the grantor trusts described in Section
2.07 hereof, (iv) each Corridor Contract and the Corridor Contract Account, (v)
the Swap Agreement and the Supplemental Interest Trust. The SWAP REMIC shall
issue the SWAP REMIC Regular Interests, which shall be designated as regular
interests of such REMIC, and shall issue the Class SWR Interest, which shall be
designated as the sole class of residual interest in the SWAP REMIC. Each of the
SWAP REMIC Regular Interests shall have the characteristics set forth in the
Preliminary Statement and this Section 2.07.

     The Lower Tier REMIC shall consist of the SWAP REMIC Regular Interests. The
Lower Tier REMIC shall issue the Lower Tier REMIC Regular Interests, which shall
be designated as regular interests of such REMIC and shall issue the Class LTR
Interest, which shall be designated as the sole class of residual interest in
the Lower Tier REMIC. Each of the Lower Tier REMIC Regular Interests shall have
the characteristics set forth in its definition and the Preliminary Statement.

     The assets of the Upper Tier REMIC shall be the Lower Tier REMIC Regular
Interests. The REMIC Regular Interests shall be designated as the regular
interests in the Upper Tier REMIC and the Residual Interest shall be designated
as the sole class of residual interest in the Upper Tier REMIC. For federal
income tax purposes, the pass-through rate on each REMIC Regular Interest (other
than the Uncertificated Class C Interest and the Class UT-IO Interest) and on
the sole class of residual interest in the Upper Tier REMIC shall be subject to
a cap equal to the Upper Tier REMIC Net WAC Cap.

     The beneficial ownership of the Class SWR Interest, the Class LTR Interest
and the Residual Interest shall be represented by the Class R Certificate. The
Class SWR Interest and the Class LTR Interest shall not have a principal balance
or bear interest.

          (c) The "tax matters person" with respect to each REMIC for purposes
of the REMIC Provisions shall be the beneficial owner of the Class R
Certificate; provided, however, that the Holder of the Class R Certificate, by
its acceptance thereof, irrevocably appoints the Trustee as its agent and
attorney-in-fact to act as "tax matters person" with respect to each such REMIC
for purposes of the REMIC Provisions. If there is more than one beneficial owner
of the Class R Certificate, the "tax matters person" shall be the Person with
the greatest percentage interest in the Class R Certificate and, if there is
more than one such Person, shall be determined under Treasury regulation Section
1.860F-4(d) and Treasury regulation Section 301.6231(a)(7)-1.

          (d) (i) It is intended that the rights of each Class of the Class A,
Class M and Class B Certificates to receive payments in respect of Excess
Interest shall be treated as a right in interest rate cap contracts written by
the Class C Certificateholders in favor of the holders of each Class of the
Class A, Class M and Class B Certificates and such shall be accounted for as
property held separate and apart from the regular interests in the Upper Tier
REMIC held by the holders of the Class A Certificates (other than the Class R
Certificate), Class M Certificates, Class B Certificates and the residual
interest in the Upper Tier REMIC held by the holder of the Class R Certificate.
For information reporting requirements, the rights of the Class A, Class M and
Class B Certificates to receive payments in respect of Excess Interest shall be
assumed to have zero or a de minimis value. This provision is intended to
satisfy the

                                      -76-

<PAGE>

requirements of Treasury Regulations Section 1.860G-2(i) for the treatment of
property rights coupled with REMIC interests to be separately respected and
shall be interpreted consistently with such regulation. On each Distribution
Date, to the extent that any of the Class A, Class M and Class B Certificates
receive payments in respect of Excess Interest, such amounts, to the extent not
derived from payments on the Corridor Contracts or the Swap Agreement, will be
treated as distributed by the Upper Tier REMIC to the Class C Certificates pro
rata in payment of the amounts specified in Section 4.04(g) and then paid to the
relevant Class of Certificates pursuant to the related interest rate cap
agreement.

          (ii) It is intended that the beneficial owners of the Certificates
(other than the Class P and Class C Certificates) shall be treated as having
entered into a notional principal contract with respect to the beneficial owners
of the Class C Certificates. Pursuant to each such notional principal contract,
all beneficial owners of each Class of Certificates (other than the Class P and
Class C Certificates) shall be treated as having agreed to pay, on each
Distribution Date, to the beneficial owners of the Class C Certificates an
aggregate amount equal to the excess, if any, of (i) the amount payable on such
Distribution Date on the Corresponding REMIC Regular Interest of such Class of
Certificates over (ii) the amount payable on such Class of Certificates on such
Distribution Date (such excess, a "Class Payment Shortfall"). A Class Payment
Shortfall shall be allocated to each Class of Certificates to the extent that
interest accrued on such Class for the related Accrual Period at the
Pass-Through Rate for a Class, computed by substituting "Upper Tier REMIC Net
WAC Cap" for the Available Funds Cap set forth in the definition thereof,
exceeds the amount of interest accrued on such Certificate at the Pass-Through
Rate (without such substitution) for the related Accrual Period, and a Class
Payment Shortfall payable from principal collections shall be allocated to the
most subordinate Class of Certificates with an outstanding principal balance to
the extent of such balance.

          (e) The parties intend that the portion of the Trust Fund consisting
of the Uncertificated Class C Interest, the uncertificated Class UT-IO Interest,
the rights to receive payments deemed made by the Class A, Class M and Class B
Certificates in respect of notional principal contracts described in Section
2.07(d)(ii), the Corridor Contract Account, the Corridor Contracts, the
Supplemental Interest Trust which holds the Swap Agreement, and the obligation
of the holders of the Class C Certificates to pay amounts in respect of Excess
Interest to the holders of the Class A, Class M and Class B Certificates shall
be treated as a "grantor trust" under the Code, for the benefit of the holders
of the Class C Certificates, and the provisions hereof shall be interpreted
consistently with this intention. In furtherance of such intention, the Trustee
shall (i) furnish or cause to be furnished to the holders of the Class C
Certificates information regarding their allocable share, if any, of the income
with respect to such grantor trust, (ii) file or cause to be filed with the
Internal Revenue Service Form 1041 (together with any necessary attachments) and
such other forms as may be applicable, (iii) comply with such information
reporting obligations with respect to payments from such grantor trust to the
holders of Class A, Class M, Class B and Class C Certificates as may be
applicable under the Code and (iv) provide, upon applying for and receiving the
tax identification number for the grantor trust from the IRS, a properly
completed Form W-9 on behalf of such grantor trust to the Swap Counterparty and
Cap Contract Counterparty.

          (f) The parties intend that the portion of the Trust Fund consisting
of the right to receive amounts distributable to the Class P Certificates
pursuant to Section 4.04(b)(i) hereof shall be treated as a "grantor trust"
under the Code, for the benefit of the holders of the Class P Certificates, and
the provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish or cause to be
furnished to the holders of the Class P Certificates information regarding their
allocable share of the income with respect to such grantor trust and (ii) file
or cause to be

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<PAGE>

filed with the Internal Revenue Service Form 1041 (together with any necessary
attachments) and such other forms as may be applicable.

          (g) The parties intend that amounts paid to the Swap Counterparty
under the Swap Agreement shall be deemed for federal income tax purposes to be
paid by the Class C Certificates first, out of funds deemed received in respect
of the Class UT-IO Interest, second, out of funds deemed received in respect of
the Uncertificated Class C Interest and third, out of funds deemed received in
respect of notional principal contracts described in Section 2.07(d)(ii), and
the provisions hereof shall be interpreted consistently with this intention. On
each Distribution Date, to the extent that amounts paid to the Swap Counterparty
are deemed paid out of funds received in respect of the Uncertificated Class C
Interest, such amounts will be treated as distributed by the Upper Tier REMIC to
the Class C Certificates pro rata in payment of the amounts specified in Section
4.04(g) and then paid to the Swap Counterparty pursuant to the Swap Agreement.

     The Supplemental Interest Trust shall be an "outside reserve fund" for
federal income tax purposes and not an asset of any REMIC. Furthermore, the
Holders of the Class C Certificates shall be the beneficial owners of the
Supplemental Interest Trust for all federal income tax purposes, and shall be
taxable on all income earned thereon.

          (h) All payments of principal and interest at the Net Mortgage Rate on
each of the Mortgage Loans (other than amounts distributable to the Class P
Certificates pursuant to Section 4.04(b)(i) hereof) received by the SWAP REMIC
with respect to the Mortgage Loans shall be paid to the SWAP REMIC Regular
Interests until the principal balance of all such interests have been reduced to
zero and any losses allocated to such interests have been reimbursed. Any
available funds remaining in the SWAP REMIC on a Distribution Date after
distributions to the SWAP REMIC Regular Interests shall be distributed to the
Class R Certificates on account of the Class SWR Interest. On each Distribution
Date, the Trustee shall distribute the aggregate Interest Funds (net of expenses
(other than any Net Swap Payment or Swap Termination Payment made to the Swap
Counterparty) and payments to the Class P Certificates) with respect to each of
the SWAP REMIC Regular Interests based on the interest rates for each such SWAP
REMIC Regular Interest. On each Distribution Date, the Trustee shall distribute
the aggregate Principal Funds with respect to the Group One Mortgage Loans first
to the Class 1-SW1 Interest until its principal balance is reduced to zero and
then sequentially to each of the other SWAP REMIC Regular Interests beginning
with the designation "1" in ascending order of their numerical class
designation, in equal amounts to each such class in such numerical designation,
until the principal balance of each such class is reduced to zero. All losses
with respect to the Group One Mortgage Loans shall be allocated among the SWAP
REMIC Regular Interests beginning with the designation "1" in the same manner
that principal distributions are allocated. On each Distribution Date, the
Trustee shall distribute the aggregate Principal Funds with respect to the Group
Two Mortgage Loans first to the Class 2-SW2 Interest until its principal balance
is reduced to zero and then sequentially to each of the other SWAP REMIC Regular
Interests beginning with the designation "2" in ascending order of their
numerical class designation, in equal amounts to each such class in such
numerical designation, until the principal balance of each such class is reduced
to zero. All losses with respect to the Group Two Mortgage Loans shall be
allocated among the SWAP REMIC Regular Interests beginning with the designation
"2" in the same manner that principal distributions are allocated. Subsequent
Recoveries with respect to the Group One and Group Two Mortgage Loans shall be
allocated in the reverse fashion from the manner in which losses are allocated.

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<PAGE>

     All payments received by the Lower Tier REMIC with respect to the SWAP
REMIC Regular Interests shall be paid to the Lower Tier REMIC Regular Interests
until the principal balance of all such interests have been reduced to zero and
any losses allocated to such interests have been reimbursed. Any excess amounts
shall be distributed to the Class LTR Interest. On each Distribution Date,
payments and losses shall be allocated among the Lower Tier REMIC Regular
Interests so that (i) each of the Lower Tier REMIC I Marker Interests shall have
a principal balance equal to 25% of the principal balance of the Corresponding
Certificates, (ii) the Class LTIX Interest has a principal balance equal to the
excess of (x) 50% of the remaining principal balance of the Mortgage Loans over
(y) the aggregate principal balance of the Lower Tier REMIC I Marker Interests
(if necessary to reflect an increase in overcollateralization, accrued and
unpaid interest on the Class LTIX interest may be added to its principal amount
to achieve this result) and (iii) the aggregate principal amount of the Class
LTII1A Interest, Class LTII1B Interest, Class LTII2A Interest, Class LTII2B
Interest and Class LTIIX Interest shall equal 50% of the remaining principal
balance of the Mortgage Loans. Distributions and losses allocated to the Lower
Tier REMIC Regular Interests described in clause (iii) of the preceding sentence
will be allocated among such Lower Tier REMIC Regular Interests in the following
manner: (x) such distributions shall be deemed made to such Lower Tier REMIC
Regular Interests first, so as to keep the principal balance of the each such
Lower Tier REMIC Regular Interest with "B" at the end of its designation equal
to 0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group and second, to such Lower Tier REMIC Regular
Interests with "A" at the end of its designation so that the uncertificated
principal balance of each such Lower Tier REMIC Regular Interest is equal to
0.05% of the excess of (I) the aggregate scheduled principal balance of the
Mortgage Loans in the related Mortgage Group over (II) the aggregate principal
balance of Certificate Group One, in the case of the Class LTII1A Interest, or
Certificate Group Two, in the case of the Class LTII2A Interest (except that if
0.05% of any such excess is greater than the principal amount of the related
Lower Tier REMIC II Marker Interest with "A" at the end of its designation, the
least amount of principal shall be distributed to each Lower Tier REMIC II
Marker Interest with "A" at the end of its designation such that the Lower Tier
REMIC Subordinated Balance Ratio is maintained) and finally, any remaining
distributions of principal to the Class LTIIX Interest and (y) such losses shall
be allocated among the Lower Tier REMIC Regular Interests described in clause
(iii) of the preceding sentence first, so as to keep the principal balance of
the each such Lower Tier REMIC Regular Interest with "B" at the end of its
designation equal to 0.05% of the aggregate scheduled principal balance of the
Mortgage Loans in the related Mortgage Group; second, to such Lower Tier REMIC
Regular Interests with "A" at the end of its designation so that the
uncertificated principal balance of each such Lower Tier REMIC Regular Interest
is equal to 0.05% of the excess of (I) the aggregate scheduled principal balance
of the Mortgage Loans in the related Mortgage Group over (II) the aggregate
principal balance of Certificate Group One, in the case of the Class LTII1A
Interest, or Certificate Group Two, in the case of the Class LTII2A Interest
(except that if 0.05% of any such excess is greater than the principal amount of
the related Lower Tier REMIC II Marker Interest with "A" at the end of its
designation, the least amount of losses shall be allocated to each Lower REMIC
II Marker Interest with "A" at the end of its designation such that the Lower
Tier REMIC Subordinated Balance Ratio is maintained) and finally, any remaining
losses to the Class LTIIX Interest. Notwithstanding the preceding two sentences,
however, losses not allocated to any Class of Certificates will not be allocated
to any Lower Tier REMIC Regular Interests. All computations with respect to the
Lower Tier REMIC Regular Interests shall be taken out to ten decimal places.

     Any available funds remaining in the Lower Tier REMIC on a Distribution
Date after distributions to the Lower Tier REMIC Regular Interests shall be
distributed to the Class R Certificates in respect of the Class LTR Interest.

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<PAGE>

     If on any Distribution Date the Certificate Principal Balance of any Class
of Certificates is increased pursuant to the last sentence of the definition of
"Certificate Principal Balance", then there shall be an equivalent increase in
the principal amounts of the Lower Tier REMIC Regular Interests, with such
increase allocated (before the making of distributions and the allocation of
losses on the Lower Tier REMIC Regular Interests on such Distribution Date)
among the Lower Tier REMIC Regular Interests so that, to the greatest extent
possible, (i) each of the Lower Tier REMIC I Marker Interests has a principal
balance equal to 25% of the principal balance of the Corresponding Certificates,
(ii) the Class LTIX Interest has a principal balance equal to the excess of (x)
50% of the remaining principal balance of the Mortgage Loans over (y) the
aggregate principal balance of the Lower Tier REMIC I Marker Interests and (iii)
the aggregate principal amount of the Lower Tier REMIC II Marker Interests and
the Class LTIIX Interest shall equal 50% of the remaining principal balance of
the Mortgage Loans. Allocations in connection with clause (iii) shall be made so
that, to the greatest extent possible, (a) the principal balance of each Lower
Tier REMIC II Marker Interest with "B" at the end of its designation equals
0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
related Mortgage Group, (b) the principal balance of each Lower Tier REMIC II
Marker Interest with "A" at the end of its designation equals 0.05% of the
excess of (x) the aggregate scheduled principal balance of the Mortgage Loans in
related Mortgage Group over (y) the aggregate principal balance of Certificate
Group One in the case of the Class LTII1A Interest, or Certificate Group Two in
the case of the Class LTII2A Interest and (c) any remaining allocations are made
to the Class LTIIX Interest.

          (i) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Servicer of its duties
and obligations set forth herein, the Servicer shall indemnify the NIMs Insurer,
the Trustee and the Issuing Entity against any and all Losses resulting from
such negligence; provided, however, that the Servicer shall not be liable for
any such Losses attributable to the action or inaction of the Trustee, the
Depositor or the Holder of the residual interest in such REMIC, as applicable,
nor for any such Losses resulting from misinformation provided by the Holder of
the residual interest in such REMIC on which the Servicer has relied. The
foregoing shall not be deemed to limit or restrict the rights and remedies of
the Holder of the residual interest in such REMIC now or hereafter existing at
law or in equity. Notwithstanding the foregoing, however, in no event shall the
Servicer have any liability (1) for any action or omission that is taken in
accordance with and in compliance with the express terms of, or which is
expressly permitted by the terms of, this Agreement, (2) for any Losses other
than those arising out of a negligent performance by the Servicer of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).

          (j) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC, or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Trustee of its duties
and obligations set forth herein, the Trustee shall indemnify the NIMs Insurer
and the Issuing Entity against any and all Losses resulting from such
negligence; provided, however, that the Trustee shall not be liable for any such
Losses attributable to the action or inaction of the Servicer, the Depositor or
the Holder of the residual interest in such REMIC, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of the residual
interest in such REMIC on which the Trustee has relied. The foregoing shall not
be deemed to limit or restrict the rights and remedies of the Holder of the
residual interest in such REMIC now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Trustee have any
liability (1) for any action or omission that is

                                      -80-

<PAGE>

taken in accordance with and in compliance with the express terms of, or which
is expressly permitted by the terms of, this Agreement, (2) for any Losses other
than those arising out of a negligent performance by the Trustee of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).

     SECTION 2.08. [RESERVED]

     SECTION 2.09. Covenants of the Servicer

     The Servicer hereby covenants to each of the other parties to this
Agreement that the 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.

     SECTION 2.10. [RESERVED]

     SECTION 2.11. Permitted Activities of the Issuing Entity

     The Issuing Entity is created for the object and purpose of engaging in the
Permitted Activities. In furtherance of the foregoing, the Trustee is hereby
authorized and directed to execute and deliver, on behalf of the Issuing Entity,
the Corridor Contracts, and to execute and deliver on behalf of the Issuing
Entity, and to perform the duties and obligations of the Issuing Entity under
the Corridor Contracts, an insurance and indemnity agreement with a NIMs Insurer
and any other agreement or instrument related thereto, in each case in such form
as the Depositor shall direct or shall approve in writing, the execution and
delivery of any such agreement by the Depositor to be conclusive evidence of its
approval thereof. In addition, the Supplemental Interest Trust Trustee is hereby
authorized and directed to execute and deliver, on behalf of the Supplemental
Interest Trust and the Swap Agreement, and to execute and deliver on behalf of
the Issuing Entity, and to perform the duties and obligations of the
Supplemental Interest Trust under any agreement or instrument related to the
Swap Agreement, in each case in such form as the Depositor shall direct or shall
approve in writing, the execution and delivery of any such agreement by the
Depositor to be conclusive evidence of its approval thereof.

     SECTION 2.12. Qualifying Special Purpose Entity

     For purposes of SFAS 140, the parties hereto intend that the Issuing Entity
shall be treated as a "qualifying special purpose entity" as such term is used
in SFAS 140 and any successor rule thereto and its power and authority as stated
in Section 2.11 of this Agreement shall be limited in accordance with paragraph
35 or SFAS 140.

     SECTION 2.13. Depositor Notification of NIM Notes

     The Depositor shall notify the Servicer and the Trustee in writing when NIM
Notes are issued and of the identity and contact information of the NIMs
Insurer, if applicable, and when all previously issued NIM Notes are no longer
outstanding.

                                      -81-

<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

     SECTION 3.01. Servicer to Service Mortgage Loans

     For and on behalf of the Certificateholders, the Servicer shall service and
administer the Mortgage Loans in accordance with Accepted Servicing Practices.
In connection with such servicing and administration, the Servicer shall have
full power and authority, acting alone and/or through subservicers as provided
in Section 3.02 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) subject to Section 3.12(a), to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that, subject to Section 6.03, the
Servicer shall not take any action that is inconsistent with or prejudices the
interests of the Issuing Entity or the Certificateholders in any Mortgage Loan
serviced by it under this Agreement or the rights and interests of the other
parties to this Agreement except as otherwise required by this Agreement or by
law. Notwithstanding anything in this Agreement to the contrary, including
Section 3.05, the Servicer shall not make or permit any modification, waiver or
amendment of any term of any Mortgage Loan which would cause any of the REMICs
provided for herein to fail to qualify as a REMIC or result in the imposition of
any tax under Section 860G(a) or 860G(d) of the Code. The Servicer shall
represent and protect the interest of the Trust Fund in the same manner as it
currently protects its own interest in mortgage loans in its own portfolio in
any claim, proceeding or litigation regarding a Mortgage Loan, but in any case
not in any manner that is a lesser standard than that provided in the first
sentence of this Section 3.01. Without limiting the generality of the foregoing,
the 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
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, subordinations 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
Servicer shall prepare and deliver to the Depositor and/or the Trustee such
documents requiring execution and delivery by any or all of them as are
necessary or appropriate to enable the Servicer to service and administer the
Mortgage Loans, to the extent that the 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 Servicer. For purposes of this Section 3.01, the Trustee
hereby grants to the Servicer a limited power of attorney in such form as shall
be prepared by the Servicer and agreed to by the Trustee and the Servicer to
execute and file any and all documents necessary to fulfill the obligations of
the Servicer under this Section 3.01.

     Upon request of the Servicer, the Trustee shall furnish the Servicer with
any powers of attorney and other documents in form as provided to it necessary
or appropriate to enable the Servicer to service and administer the Mortgage
Loans. The Trustee shall not be responsible for and the Servicer shall indemnify
the Trustee for any action taken by the Servicer pursuant to the application of
any power of

                                      -82-

<PAGE>

attorney to the extent indemnification by the Servicer is required by Section
3.25 and provided that the Servicer shall have no obligation to indemnify the
Trustee for such action to the extent such action was taken pursuant to and in
accordance with specific written instructions from the Trustee, which
instructions are not based on Servicer's recommendations or proposals.
Notwithstanding anything contained herein to the contrary, the Servicer shall
not without the Trustee's written consent, hire or procure counsel to represent
the Trustee without indicating its representative capacity.

     The Servicer shall not be required to make any Advance or Servicing Advance
with respect to a Mortgage Loan that is 150 days or more delinquent.

     The Servicer and the Trustee shall have at least 10 days' notice of the
issuance of any NIM Notes.

     The Servicer shall deliver a list of Servicing Officers and specimen
signatures to the Trustee by the Closing Date.

     In accordance with Accepted Servicing Practices the Servicer will fully
furnish (for the period it services the Mortgage Loans), in accordance with the
Fair Credit Reporting Act and its implementing regulations, accurate and
complete information (e.g., favorable and unfavorable) on its borrower credit
files to Equifax, Experian and Trans Union Credit Information Company on a
monthly basis except as the Servicer deems prudent for prevention or resolution
of disputes with Mortgagors.

     The 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 Servicer or the Subservicer, as the case may be, believes
it is appropriate in its best judgment to register any Mortgage Loan on the MERS
System, or cause the removal from the registration of any Mortgage Loan on the
MERS 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. Any reasonable expenses incurred in connection with the
actions described in the preceding sentence or as a result of MERS discontinuing
or becoming unable to continue operations in connection with the MERS System,
shall be subject to withdrawal by the Servicer from the Collection Account
(provided that such expenses constitute "unanticipated expenses" within the
meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii)).

     The Servicer (and any successor thereto hereunder) hereby acknowledges that
with respect to each Accommodated Mortgage Loan, (i) the first Adjustment Date
and (ii) a reduction in the mortgage margin will occur on, and become effective
as of, respectively, the sixty-first Monthly Payment due thereunder. The
Servicer's data with respect to the servicing of the Accommodated Mortgage Loans
shall at all times reflect that the first Adjustment Date and mortgage margin
reduction with respect to each Accommodated Mortgage Loan shall occur on, and
become effective as of, respectively, each such Accommodated Mortgage Loan's
sixty-first Mortgage Payment. The Servicer shall maintain such data such that
any successor to the Servicer will give effect to the Adjustment Date Waiver
with respect to each Accommodated Mortgage Loan.

     SECTION 3.02. Servicing and Subservicing; Enforcement of the Obligations of
Servicer

          (a) The Servicer may arrange for the subservicing of any Mortgage Loan
by a Subservicer, which may be an affiliate, pursuant to a subservicing
agreement (each, a "Subservicing

                                      -83-

<PAGE>

Agreement"); provided, however, that (i) 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, (ii) that such Subservicing Agreement would not result
in a withdrawal or downgrading by any Rating Agency of the ratings of any
Certificates or any of the NIM Notes evidenced by a letter to that effect
delivered by each Rating Agency to the Depositor and the NIMs Insurer and (iii)
the NIMs Insurer shall have consented to such Subservicing Agreement, which
consent shall not be unreasonably withheld. Notwithstanding the provisions of
any Subservicing Agreement, any of the provisions of this Agreement relating to
agreements or arrangements between the Servicer and a Subservicer or reference
to actions taken through a Subservicer or otherwise, the 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 Servicer alone were servicing and
administering the Mortgage Loans. Every Subservicing Agreement entered into by
the Servicer shall contain a provision giving any successor servicer the option
to terminate such agreement, with the consent of the NIMs Insurer (which consent
shall not be unreasonably withheld), in the event a successor servicer is
appointed. All actions of each Subservicer performed pursuant to the related
Subservicing Agreement shall be performed as an agent of the Servicer with the
same force and effect as if performed directly by the Servicer. The Servicer
shall deliver to the Trustee and the NIMs Insurer copies of all Subservicing
Agreements. The Trustee shall have no obligations, duties or liabilities with
respect to a Subservicer, including, without limitation, any obligation, duty or
liability to monitor such Subservicer or to pay a Subservicer's fees and
expenses. If the Servicer is terminated, these Subservicing Agreements will
automatically terminate in accordance with the terms therein unless the
successor servicer elects otherwise.

          (b) For purposes of this Agreement, the 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 Servicer.

          (c) The Servicer shall not permit a Subservicer to perform any
servicing responsibilities hereunder with respect to the Mortgage Loans unless
that Subservicer first agrees in writing with the Servicer to deliver an
Assessment of Compliance and an Accountant's Attestation in such manner and at
such times that permits that Servicer to comply with Section 3.17 of this
Agreement.

          (d) The Servicer may enter into a special servicing advisory agreement
with a holder of the Class R Certificate and/or one or more other classes of
Subordinate Certificates issued by the Issuing Entity or of a net interest
margin trust holding certificates issued by the Issuing Entity and/or an advisor
designated by the holder of the Class R Certificate. Pursuant to such agreement,
the Servicer may provide such holder or advisor, in its capacity as special
servicing advisor, with loan-level information with respect to the Mortgage
Loans, and the holder of the Class R Certificate or the special servicing
advisor designated by the holder of the Class R Certificate may advise the
Servicer with respect to the commencement of foreclosure proceedings or other
actions to liquidate such Mortgage Loans and/or any other efforts to maximize
recoveries with respect to such Mortgage Loans.

     SECTION 3.03. Rights of the Depositor and the Trustee in Respect of the
Servicer

                                      -84-

<PAGE>

     Neither the Trustee nor the Depositor shall have any responsibility or
liability for any action or failure to act by the Servicer, and neither of them
is obligated to supervise the performance of the Servicer hereunder or
otherwise.

     SECTION 3.04. Trustee to Act as Servicer

     Subject to Sections 3.29, 6.04 and 7.02, in the event that the Servicer
shall for any reason no longer be the servicer hereunder (including by reason of
an Event of Default), the Trustee or its designee shall, within a period of time
not to exceed ninety (90) days from the date of notice of termination or
resignation, thereupon assume all of the rights and obligations of the Servicer
hereunder arising thereafter (except that the Trustee shall not be (i) liable
for losses arising out of any acts or omissions of the predecessor servicer
hereunder, (ii) obligated to make Advances or Servicing Advances if it is
prohibited from doing so by applicable law, (iii) obligated to effectuate
repurchases or substitutions of Mortgage Loans hereunder, including pursuant to
Section 2.02, 2.03 or 2.05 hereof, (iv) responsible for any expenses of the
Servicer pursuant to Section 2.03 or (v) deemed to have made any representations
and warranties hereunder, including pursuant to Section 2.04 or the first
paragraph of Section 6.02 hereof; provided, however that the Trustee (subject to
clause (ii) above) or its designee, in its capacity as the successor servicer,
shall immediately assume the terminated or resigning Servicer's obligation to
make Advances and Servicing Advances). No such termination or resignation shall
affect any obligation of the Servicer to pay amounts owed under this Agreement
and to perform its duties under this Agreement until its successor assumes all
of its rights and obligations hereunder. If the Servicer shall for any reason no
longer be a servicer (including by reason of any Event of Default), the Trustee
(or any other successor servicer) may, at its option, succeed to any rights and
obligations of the Servicer under any Subservicing Agreement in accordance with
the terms thereof; provided, however, that the Trustee (or any other successor
servicer) shall not incur any liability or have any obligations in its capacity
as servicer under a Subservicing Agreement arising prior to the date of such
succession unless it expressly elects to succeed to the rights and obligations
of the Servicer thereunder; and the Servicer shall not thereby be relieved of
any liability or obligations under the Subservicing Agreement arising prior to
the date of such succession. To the extent any costs or expenses, including
without limitation, Servicing Transfer Costs incurred by the Trustee in
connection with this Section 3.04 or Section 7.02, are not paid by the Servicer
pursuant to this Agreement within thirty (30) days of the date of the Trustee's
invoice thereof, such amounts shall be payable out of the Certificate Account;
provided that if the Servicer has been terminated by reason of an Event of
Default, the terminated servicer shall reimburse the Issuing Entity for any such
expense incurred by the Issuing Entity upon receipt of a reasonably detailed
invoice evidencing such expenses. If the Trustee is unwilling or unable to act
as servicer, the Trustee shall seek to appoint a successor servicer that is
eligible in accordance with the criteria specified in this Agreement and
reasonably acceptable to the NIMs Insurer.

     The Servicer shall, upon request of the Trustee, but at the expense of the
Servicer if the Servicer has been terminated by reason of an Event of Default,
deliver to the assuming party all documents and records relating to each
subservicing agreement and the Mortgage Loans then being serviced and otherwise
use its best efforts to effect the orderly and efficient transfer of the
Subservicing Agreement to the assuming party.

     SECTION 3.05. Collection of Mortgage Loan Payments; Collection Account;
Certificate Account

          (a) The Servicer shall make reasonable efforts in accordance with
Accepted Servicing Practices to collect all payments called for under the terms
and provisions of the Mortgage

                                      -85-

<PAGE>

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 Servicer may in its discretion (i) waive any late
payment charge or, if applicable, any default interest charge, or (ii) subject
to Section 3.01 and applicable REMIC requirements, extend the due dates for
payments due on a Mortgage Note for a period not greater than 180 days;
provided, however, that any extension pursuant to clause (ii) above shall not
affect the amortization schedule of any Mortgage Loan for purposes of any
computation hereunder, except as provided below; provided, further, that the
NIMs Insurer's prior written consent shall be required for any modification,
waiver or amendment after the Cut-off Date if the aggregate number of
outstanding Mortgage Loans which have been modified, waived or amended exceeds
5% of the number of Mortgage Loans as of the Cut-Off Date. In the event of any
such arrangement pursuant to clause (ii) above, subject to Section 4.01, the
Servicer shall make any Advances on the related Mortgage Loan during the
scheduled period in accordance with the amortization schedule of such Mortgage
Loan without modification thereof by reason of such arrangements.
Notwithstanding clause (ii) above and its related provisos, in the event that
any Mortgage Loan is in default or, in the judgment of the Servicer, such
default is reasonably foreseeable, the Servicer, consistent with the standards
set forth in Section 3.01 and not subject to the requirement to make Advances
pursuant to Section 4.01, may also waive, modify or vary any term of such
Mortgage Loan (including modifications that would change the Mortgage Rate,
forgive the payment of principal or interest or extend the final maturity date
of such Mortgage Loan), accept payment from the related Mortgagor of an amount
less than the Stated Principal Balance in final satisfaction of such Mortgage
Loan, or consent to the postponement of strict compliance with any such term or
otherwise grant indulgence to any Mortgagor (any and all such waivers,
modifications, variances, forgiveness of principal or interest, postponements,
or indulgences collectively referred to herein as "forbearance"), provided,
however, that in determining which course of action permitted by this sentence
it shall pursue, the Servicer shall adhere to the standards of Section 3.01. The
Servicer's analysis supporting any forbearance and the conclusion that any
forbearance meets the standards of Section 3.01 shall be reflected in writing in
the Mortgage File.

     [The Servicer will be entitled to receive a fee from amounts on deposit in
the Collection Account for the costs associated with such forbearances pursuant
to this Section 3.05(a) in amounts as follows: (i) for each modification of the
terms of a Mortgage Loan, $500; (ii) for each presale resulting in satisfaction
of a Mortgage Loan, $900; and (iii) for each completed repayment plan of a
Mortgage Loan, $250, such amount to be withdrawn by the Servicer from the
Collection Account pursuant to Section 3.08(a)(xiii) on or prior to the Servicer
Remittance Date immediately following the completion of such forbearance
activity.]

     With respect to the Mortgage Loans affected by a hurricane or other natural
disaster, if the Mortgaged Property is located in public and individual
assistance counties, as designated by Federal Emergency Management Agency (as
set forth on its website www.fema.gov), the Servicer (or the Subservicer, if
such Servicer is no longer servicing Mortgage Loans), may, at its sole option,
cease collection activities, charging late fees and credit reporting activity
for all Mortgagors in such counties for a period of time and, if reasonably
prudent, may extend such period as long as it deems necessary. In addition, the
Servicer (or the Subservicer, if applicable) may suspend all foreclosure and
bankruptcy activity relating to such Mortgage Loans for a period of time and, if
reasonably prudent, may extend such period as long as it deems necessary.

          (b) The Servicer will not waive any Prepayment Charge or portion
thereof unless, (i) the enforceability thereof shall have been limited by
bankruptcy, insolvency, moratorium, receivership or other similar laws relating
to creditors' rights generally or is otherwise prohibited by law, or (ii) the

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<PAGE>

collectability thereof shall have been limited due to acceleration in connection
with a foreclosure or other involuntary payment, or (iii) in the Servicer's
reasonable judgment as described in Section 3.01 hereof, (x) such waiver relates
to a default or a reasonably foreseeable default, (y) such waiver would maximize
recovery of total proceeds taking into account the value of such Prepayment
Charge and related Mortgage Loan and (z) doing so is standard and customary in
servicing similar Mortgage Loans (including any waiver of a Prepayment Charge in
connection with a refinancing of a Mortgage Loan that is related to a default or
a reasonably foreseeable default), or (iv) the collection of the Prepayment
Charge or of a similar type of prepayment premium would be considered
"predatory" or "illegal" pursuant to written guidance published by any
applicable federal, state or local regulatory authority having jurisdiction over
such matters or has been challenged by any such authority, or (v) unless the
Depositor has notified the Servicer that there are NIM Notes outstanding, there
is a certified class action in which a similar type of prepayment premium is
being challenged. Except as provided in the preceding sentence, in no event will
the Servicer waive a Prepayment Charge in connection with a refinancing of a
Mortgage Loan that is not related to a default or a reasonably foreseeable
default. If the Servicer waives or does not collect all or a portion of a
Prepayment Charge relating to a Principal Prepayment in full or in part due to
any action or omission of the Servicer, other than as provided above, the
Servicer shall deposit the amount of such Prepayment Charge (or such portion
thereof as had been waived for deposit) into the Collection Account for
distribution in accordance with the terms of this Agreement.

          (c) The 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.

          (d) The Servicer shall establish and initially maintain, on behalf of
Trustee for the benefit of the Certificateholders, a Collection Account. The
Servicer shall deposit into such Collection Account daily, within two (2)
Business Days of receipt thereof, in immediately available funds, the following
payments and collections received or made by it on and after the Cut-off Date
with respect to the Mortgage Loans:

          (i) all payments on account of principal, including Principal
     Prepayments, on the Mortgage Loans, other than principal due on the
     Mortgage Loans on or prior to the Cut-off Date;

          (ii) all payments on account of interest on the Mortgage Loans net of
     the Servicing Fee permitted under Section 3.15, other than (x) interest due
     on the Mortgage Loans on or prior to the Cut-off Date and (y) Prepayment
     Interest Excess;

          (iii) all Liquidation Proceeds, other than proceeds to be applied to
     the restoration or repair of the Mortgaged Property or released to either
     the Mortgagor or the holder of a senior lien on the Mortgaged Property in
     accordance with the Servicer's normal servicing procedures;

          (iv) all Subsequent Recoveries;

          (v) all Compensating Interest;

          (vi) any amount required to be deposited by the Servicer pursuant to
     Section 3.05(f) in connection with any losses on Permitted Investments;

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<PAGE>

          (vii) any amounts required to be deposited by the Servicer pursuant to
     Section 3.10 hereof;

          (viii) all Advances made by the Servicer pursuant to Section 4.01;

          (ix) all Prepayment Charges; and

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

     The foregoing requirements for remittance by the Servicer into the
Collection Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, all servicing related fees,
including late payment charges, insufficient funds charges and payments in the
nature of assumption fees (i.e. fees related to the assumption of a Mortgage
Loan upon the purchase of the related Mortgaged Property, modification fees,
extension fees and other similar ancillary fees and charges (other than
Prepayment Charges)) if collected, and any Prepayment Interest Excess need not
be remitted by the Servicer. Rather, such fees and charges may be retained by
the Servicer as additional servicing compensation. In the event that the
Servicer shall remit any amount not required to be remitted and not otherwise
subject to withdrawal pursuant to Section 3.08 hereof, it may at any time
withdraw or direct the Trustee, or such other institution maintaining the
Collection Account, to withdraw such amount from the Collection Account, any
provision herein to the contrary notwithstanding. The Servicer shall maintain
adequate records with respect to all withdrawals made pursuant to this Section.
All funds deposited in the Collection Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.08. In no event
shall the Trustee incur liability for withdrawals from the Collection Account at
the direction of the Servicer.

     The Servicer shall give notice to the Trustee of the location of the
Collection Account maintained by it when established and prior to any change
thereof. Not later than twenty (20) days after each Distribution Date, the
Servicer shall make available to the Trustee the most current available bank
statement for the Collection Account. Copies of such statement shall be provided
by the Trustee to any Certificateholder and to any Person identified to the
Trustee as a prospective transferee of a Certificate, upon request at the
expense of the requesting party, provided such statement is delivered by the
Servicer to the Trustee.

          (e) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Certificate Account. The Trustee shall, promptly upon
receipt, deposit or cause to be deposited in the Certificate Account and retain
therein the following:

          (i) the aggregate amount withdrawn by the Servicer from the Collection
     Account for deposit in the Certificate Account;

          (ii) the Purchase Price and any Substitution Adjustment Amount;

          (iii) any amount required to be deposited by the Trustee pursuant to
     Section 3.05(f) in connection with any losses on Permitted Investments; and

          (iv) the Optional Termination Amount paid by the Servicer or one of
     its affiliates, or the NIMs Insurer, if any, pursuant to Section 9.01.

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<PAGE>

     Any amounts received by the Trustee which are required to be deposited in
the Certificate Account by the Servicer may be invested in Permitted Investments
on the Business Day on which they were received. The foregoing requirements for
remittance by the Servicer and deposit by the Servicer into the Certificate
Account shall be exclusive. If the Servicer fails to remit any funds due by the
time designated herein, the Servicer shall pay to the Trustee, for its own
account, interest accrued on such funds at the prime rate as set forth in The
Wall Street Journal from and including the applicable due date, to but excluding
the day such funds are paid to the Trustee. In the event that the Servicer shall
remit any amount not required to be remitted and not otherwise subject to
withdrawal pursuant to Section 3.08 hereof, it may at any time withdraw such
amount from the Certificate Account, any provision herein to the contrary
notwithstanding. All funds deposited in the Certificate 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 3.08. In no event
shall the Trustee incur liability for withdrawals from the Certificate Account
at the direction of the Servicer. The Trustee shall give notice to the Servicer
of the location of the Certificate Account maintained by it when established and
prior to any change thereof.

          (f) Each institution that maintains the Collection Account shall, and
each institution that maintains the Certificate Account may but shall not be
required to, invest the funds in each such account, as directed by the Servicer
or the Trustee, as applicable, in writing, in Permitted Investments, which shall
mature not later than (i) in the case of the Collection Account, the Business
Day preceding the Servicer Remittance Date (except that if such Permitted
Investment is an obligation of the institution that maintains such Collection
Account or is otherwise immediately available, then such Permitted Investment
shall mature not later than the Servicer Remittance Date) and (ii) in the case
of the Certificate Account, the Business Day immediately preceding the first
Distribution Date that follows the date of such investment (except that if such
Permitted Investment is an obligation of the institution that maintains such
Certificate Account or is otherwise immediately available, 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. 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 amounts
on deposit in the Collection Account shall be for the benefit of the Servicer as
servicing compensation and shall be remitted to it monthly as provided herein.
The amount of any losses incurred in the Collection Account in respect of any
such investments shall be deposited by the Servicer in the Collection Account
out of the Servicer's own funds immediately as realized. All income and gain net
of any losses realized from amounts on deposit in the Certificate Account shall
be for the benefit of the Trustee and shall be remitted to or withdrawn by it
monthly as provided herein. The amount of any losses incurred in the Certificate
Account in respect of any such investments shall be deposited by the Trustee in
the Certificate Account out of the Trustee's own funds immediately as realized.

     SECTION 3.06. Collection of Taxes, Assessments and Similar Items; Escrow
Accounts

     To the extent required by the related Mortgage Note, the 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 Servicer) for the payment of taxes, assessments, hazard insurance premiums
or comparable items for the account of the Mortgagors. Nothing herein shall
require the Servicer to compel a Mortgagor to establish an Escrow Account in
violation of applicable law.

     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
Servicer out of related collections for any payments made

                                      -89-

<PAGE>

pursuant to Sections 3.01 hereof (with respect to taxes and assessments, dues or
comparable items and insurance premiums) and 3.10 hereof (with respect to hazard
insurance), to refund to any Mortgagors any sums as may be 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 to
withdraw funds deposited in error or amounts previously deposited but returned
as unpaid due to a "non-sufficient funds" or other denial by the related
Mortgagor's banking institution or to clear and terminate the Escrow Account at
the termination of this Agreement in accordance with Section 9.01 hereof. The
Escrow Accounts shall not be a part of the Trust Fund.

     SECTION 3.07. Access to Certain Documentation and Information Regarding the
Mortgage Loans

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

     The Servicer may from time to time provide the Depositor, and any Person
designated by the Depositor, with reports and information regarding the Mortgage
Loans, including without limitation, information requested by the Depositor or
the Originator of the Mortgage Loans for required institutional risk control. In
addition, subject to limitations of applicable privacy laws, the Servicer may
make public information regarding performance of the Mortgage Loans.

     SECTION 3.08. Permitted Withdrawals from the Collection Account and
Certificate Account

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

          (i) to pay to the Servicer (to the extent not previously paid to or
withheld by the Servicer), as servicing compensation in accordance with Section
3.15, that portion of any payment of interest that equals the Servicing Fee for
the period with respect to which such interest payment was made, and, as
additional servicing compensation, those other amounts set forth in Section
3.15;

          (ii) to reimburse the Servicer (or the Trustee as successor servicer)
for Advances made by it (or to reimburse the Advancing Person for Advances made
by it) with respect to the Mortgage Loans, such right of reimbursement pursuant
to this subclause (ii) being limited to amounts received on particular Mortgage
Loan(s) (including, for this purpose, Liquidation Proceeds (which include
Condemnation Proceeds and Insurance Proceeds)) that represent late recoveries of
payments of principal and/or interest on such particular Mortgage Loan(s) in
respect of which any such Advance was made;

          (iii) to reimburse the Servicer for any Non-Recoverable Advance
previously made and any Non-Recoverable Servicing Advances previously made to
the extent that, in the case of Non-Recoverable Servicing Advances,
reimbursement therefor constitutes "unanticipated expenses" within the meaning
of Treasury Regulation Section 1.860G-1(b)(3)(ii);

                                      -90-

<PAGE>

          (iv) to pay to the Servicer earnings on or investment income with
respect to funds in or credited to the Collection Account;

          (v) to reimburse the Servicer from Insurance Proceeds for Insured
Expenses covered by the related Insurance Policy;

          (vi) [Reserved];

          (vii) to pay the Servicer (or the Trustee as successor servicer) any
unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing
Advances (to the extent that reimbursement for Servicing Advances would
constitute an "unanticipated expense" within the meaning of Treasury Regulation
Section 1.860G-1(b)(3)(ii)), the Servicer's right to reimbursement of Servicing
Advances pursuant to this subclause (vii) with respect to any Mortgage Loan
being limited to amounts received on particular Mortgage Loan(s)(including, for
this purpose, Liquidation Proceeds and purchase and repurchase proceeds and
including any Subsequent Recoveries related to any Liquidated Loan) that
represent late recoveries of the payments for which such advances were made
pursuant to Section 3.01 or Section 3.06;

          (viii) to pay to the Depositor or the Servicer, as applicable, with
respect to each Mortgage Loan or property acquired in respect thereof that has
been purchased pursuant to Sections 2.02, 2.03 or 3.12, all amounts received
thereon and not taken into account in determining the related Stated Principal
Balance of such repurchased Mortgage Loan;

          (ix) to reimburse the Servicer, the Trustee or the Depositor for
expenses incurred by any of them in connection with the Mortgage Loans or the
Certificates and reimbursable pursuant to Sections 3.04, 3.25 or 6.03 hereof
provided that reimbursement therefor would constitute "unanticipated" expenses
within the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii);

          (x) to reimburse the Trustee for enforcement expenses reasonably
incurred in respect of a breach or defect giving rise to the purchase obligation
in Section 2.03 that were incurred in the Purchase Price of the Mortgage Loans
including any expenses arising out of the enforcement of the purchase
obligation; provided that any such expenses will be reimbursable under this
subclause (x) only to the extent that such expenses would constitute
"unanticipated expenses" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii) if paid by one of the REMICs provided for herein;

          (xi) to pay the Servicer any unpaid Servicing Fees for any Mortgage
Loan upon such Mortgage Loan being charged off and upon termination of the
obligations of the Servicer;

          (xii) to withdraw pursuant to Section 3.05 any amount deposited in the
Collection Account and not required to be or incorrectly deposited therein or
amounts previously deposited but returned as unpaid due to insufficient funds or
other denial by the related Mortgagor's banking institution;

          (xiii) to pay the Servicer any fees for the costs associated with
forbearances pursuant to Section 3.05(a); and

          (xiv) to clear and terminate the Collection Account upon termination
of this Agreement pursuant to Section 9.01 hereof.

                                      -91-

<PAGE>

     In addition, the Servicer will use commercially reasonable efforts to cause
to be withdrawn from the Collection Account no later than 2:30 p.m. Eastern
Time, but in any case no later than 4:00 p.m. Eastern Time on the Servicer
Remittance Date, the Interest Funds and the Principal Funds (for this purpose
only, neither Interest Funds nor Principal Funds shall include a deduction for
any amount reimbursable to the Trustee unless such amounts have actually been
reimbursed from such funds at the discretion of the Servicer), to the extent on
deposit, and such amount shall be deposited in the Certificate Account;
provided, however, if the Trustee does not receive such Interest Funds and
Principal Funds on the Servicer Remittance Date, the Servicer shall pay, out of
its own funds, interest on such amount at a rate equal to the "prime rate" as
published by The Wall Street Journal at such time for each date or part thereof.

     The Servicer shall keep and maintain separate accounting, on a Mortgage
Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from
the Collection Account.

     The Servicer shall provide written notification to the Trustee on or prior
to the next succeeding Servicer Remittance Date upon making any withdrawals from
the Collection Account pursuant to subclauses (iii) and (vii) above.

     Unless otherwise specified, any amounts reimbursable to the Servicer or the
Trustee from amounts on deposit in the Collection Account or the Certificate
Accounts shall be deemed to come from first, Interest Funds, and thereafter,
Principal Funds for the related Distribution Date.

          (b) The Trustee shall withdraw funds from the Certificate Account for
distribution to the Certificateholders in the manner specified in this Agreement
(and shall withhold from the amounts so withdrawn, the amount of any taxes that
it is authorized to retain pursuant to this Agreement). In addition, prior to
making such distributions to the Certificateholders, the Trustee may from time
to time make withdrawals from the Certificate Account for the following
purposes:

          (i) to withdraw pursuant to Section 3.05 any amount deposited in the
Certificate Account and not required to be deposited therein;

          (ii) to clear and terminate the Certificate Account upon termination
of the Agreement pursuant to Section 9.01 hereof (after paying all amounts
necessary to the Trustee or the Servicer in connection with any such
termination);

          (iii) to pay to the Trustee for any fees, expenses and indemnification
reimbursable pursuant to this Agreement, including without limitation Sections
3.04, 6.03, 8.05 and 8.06 hereof; and

          (iv) to pay to the Trustee earnings on or investment income with
respect to funds in or credited to the Certificate Account.

     SECTION 3.09. [RESERVED]

     SECTION 3.10. Maintenance of Hazard Insurance

     The Servicer shall cause to be maintained, for each first lien Mortgage
Loan, hazard insurance with extended coverage in an amount, to the extent
permitted by applicable law, that is at least equal to the lesser of (i) the
estimated replacement value of the improvements that are part of such Mortgaged

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<PAGE>

Property which may be the last known coverage, or (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan and (b) an amount such that
the proceeds of such policy shall be sufficient to prevent the related Mortgagor
and/or mortgagee from becoming a co-insurer or (iii) the amount required under
applicable HUD/FHA regulations. Each such policy of standard hazard insurance
shall contain, or have an accompanying endorsement that contains, a standard
mortgagee clause. The Servicer shall also cause flood insurance to be maintained
on property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan, to the extent required under the standards described below.
Pursuant to Section 3.05 hereof, any amounts collected by the Servicer under any
such policies (other than the amounts to be applied to the restoration or repair
of the related Mortgaged Property or property thus acquired or amounts released
to the Mortgagor in accordance with the Servicer's normal servicing procedures)
shall be deposited in the Collection Account. Any cost incurred by the 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 Servicer out of late payments by the related Mortgagor or
out of Liquidation Proceeds to the extent and as otherwise permitted by Section
3.08 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 a first lien 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 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
lesser of (i) the outstanding principal balance of the related Mortgage Loan,
(ii) the estimated replacement value of the improvements that are part of such
Mortgaged Property which may be the last known coverage, or (iii) the maximum
amount of such insurance available for the related Mortgaged Property under the
Flood Disaster Protection Act of 1973, as amended.

     In the event that the 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 3.10, 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 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 3.10, and there shall have
been a loss that would have been covered by such policy, deposit in the
Collection Account the amount not otherwise payable under the blanket policy
because of such deductible clause. In connection with its activities as servicer
of the Mortgage Loans, the 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.

     SECTION 3.11. Enforcement of Due-On-Sale Clauses; Assumption Agreements

     When a Mortgaged Property has been or is about to be conveyed by the
Mortgagor, the Servicer shall, except as set forth below, to the extent it has
knowledge of such conveyance or prospective conveyance, exercise its rights to
accelerate the maturity of the related Mortgage Loan under any "due-on-sale"
clause contained in the related Mortgage or Mortgage Note; provided, however,
that the Servicer shall not exercise any such right if the "due-on-sale" clause,
in the reasonable belief of the Servicer, is not enforceable under applicable
law; provided, further, that the Servicer shall not take any action in relation
to the enforcement of any "due-on-sale" clause that would adversely affect or
jeopardize coverage under

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<PAGE>

any Required Insurance Policy. In such event, the Servicer shall make reasonable
efforts to enter into an assumption and modification agreement 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 law or the Mortgage, the Mortgagor remains liable thereon. If the
foregoing is not permitted under applicable law, the Servicer is authorized 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 Note. In addition to the
foregoing, the Servicer shall not be required to enforce any "due-on-sale"
clause in accordance with Accepted Servicing Practices, if in the reasonable
judgment of the Servicer not entering into an assumption and modification
agreement with a Person to whom such property shall be conveyed and releasing
the original Mortgagor from liability would be in the best interests of the
Certificateholders. The Mortgage Loan, as assumed, shall conform in all respects
to the requirements, representations and warranties of this Agreement. The
Servicer shall notify the Trustee that any such assumption or substitution
agreement has been completed by forwarding to the Trustee the original copy of
such assumption or substitution agreement (indicating the Mortgage File to which
it relates), which copy shall be added by the Trustee to the related Mortgage
File and which 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. The Servicer shall be responsible for recording any such
assumption or substitution agreements. In connection with any such assumption or
substitution agreement, the Monthly Payment on the related Mortgage Loan shall
not be changed but shall remain as in effect immediately prior to the assumption
or substitution, the stated maturity or outstanding principal amount of such
Mortgage Loan shall not be changed nor shall any required monthly payments of
principal or interest be deferred or forgiven. Any fee collected by the Servicer
for consenting to any such conveyance or entering into an assumption or
substitution agreement shall be retained by or paid to the Servicer as
additional servicing compensation.

     Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Mortgage Loan by operation of law or any transfer or assumption which the
Servicer reasonably believes, in accordance with Accepted Servicing Practices,
it is restricted by law from preventing, for any reason whatsoever.

     SECTION 3.12. Realization Upon Defaulted Mortgage Loans; Determination of
Excess Proceeds; Special Loss Mitigation

          (a) The Servicer shall use reasonable efforts consistent with the
servicing standard set forth in Section 3.01 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 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 the
requirements of the insurer under any Required Insurance Policy; provided,
however, that the Servicer shall not be required to expend its own funds in
connection with the restoration of any property that shall have suffered damage
due to an uninsured cause unless it shall determine (i) that such restoration
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 Collection Account pursuant to
Section 3.08 hereof). The 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 proceeds of

                                      -94-

<PAGE>

liquidation of the related Mortgaged Property and, if applicable, as a
Non-Recoverable Servicing Advance, as contemplated in Section 3.08 hereof.

     With respect to any REO Property, the deed or certificate of sale shall be
taken in the name of the Trustee, on behalf of the Certificateholders, or its
nominee (which nominee shall not be the Servicer). Pursuant to its efforts to
sell such REO Property, the Servicer shall either itself or through an agent
selected by the 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 and may, incident to its conservation and protection of the
interests of the Certificateholders, rent the same, or any part thereof, as the
Servicer deems to be in the best interest of the Servicer and the
Certificateholders for the period prior to the sale of such REO Property. The
Servicer or an Affiliate thereof may receive usual and customary real estate
referral fees for real estate brokers in connection with the listing and
disposition of REO Property. The Servicer shall prepare a statement with respect
to each REO Property that has been rented showing the aggregate rental income
received and all expenses incurred in connection with the management and
maintenance of such REO Property at such times as is necessary to enable the
Servicer to comply with the reporting requirements of the REMIC Provisions. The
net monthly rental income, if any, from such REO Property shall be deposited in
the Collection Account no later than the close of business on each Determination
Date. The Servicer shall perform the tax reporting and withholding related to
foreclosures, abandonments and cancellation of indebtedness income as specified
by Sections 1445, 6050J and 6050P of the Code by preparing and filing such tax
and information returns, as may be required.

     In the event that the Issuing Entity acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or reasonably foreseeable
default on a Mortgage Loan, the Servicer shall dispose of such Mortgaged
Property prior to the expiration of three years from the end of the year of its
acquisition by the Issuing Entity or, at the expense of the Issuing Entity,
obtain, in accordance with applicable procedures for obtaining an automatic
extension of the grace period, more than sixty (60) days prior to the day on
which such three-year period would otherwise expire, an extension of the
three-year grace period, in which case such property must be disposed of prior
to the end of such extension, unless the Trustee and the NIMs Insurer shall have
been supplied with an Opinion of Counsel addressed to the Trustee (such Opinion
of Counsel not to be an expense of the Trustee or the NIMs Insurer), to the
effect that the holding by the Issuing Entity of such Mortgaged Property
subsequent to such three-year period or extension will not result in the
imposition of taxes on "prohibited transactions" of the Issuing Entity or any of
the REMICs provided for herein as defined in section 860F of the Code or cause
any of the REMICs provided for herein to fail to qualify as a REMIC at any time
that any Certificates are outstanding, in which case the Issuing Entity 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 Issuing Entity shall be held, rented (or
allowed to continue to be rented) or otherwise used for the production of income
by or on behalf of the Issuing Entity 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
the Issuing Entity or any REMIC provided for herein 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 Servicer or
the Depositor has agreed to indemnify and hold harmless the Trustee and the
Issuing Entity with respect to the imposition of any such taxes. The Servicer
shall have no liability for any losses resulting from a foreclosure on a second
lien Mortgage Loan in connection with the foreclosure of the related first lien
mortgage loan that is not a Mortgage Loan if the Servicer does not receive
notice of such foreclosure action.

                                      -95-

<PAGE>

     The decision of the Servicer to foreclose on a defaulted Mortgage Loan
shall be subject to a determination by the 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 Mortgaged Properties acquired
through foreclosure or other judicial proceeding, net of reimbursement to the
Servicer for expenses incurred (including any property or other taxes) in
connection with such management and net of unreimbursed Servicing Fees,
Advances, Servicing Advances and any management fee paid or to be paid with
respect to the management of such Mortgaged Property, 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 Collection Account. To the extent the income
received during a Prepayment Period is in excess of the amount attributable to
amortizing principal and accrued interest at the related Mortgage Rate on the
related Mortgage Loan, such excess shall be considered to be a partial Principal
Prepayment for all purposes hereof.

     Notwithstanding the foregoing provisions of this Section 3.12 or any other
provision of this Agreement, with respect to any Mortgage Loan as to which the
assistant vice president for foreclosures or the vice president of default
management of the Servicer has actual knowledge (which shall not be presumed due
to any documents received by the Servicer) of, the presence of any toxic or
hazardous substance on the related Mortgaged Property, the Servicer shall not,
on behalf of the Trustee, either (i) obtain title to such Mortgaged Property as
a result of or in lieu of foreclosure or otherwise, or (ii) otherwise acquire
possession of, or take any other action with respect to, such Mortgaged
Property, if, as a result of any such action, the Trustee, the Issuing Entity or
the Certificateholders would be considered to hold title to, to be a
"mortgagee-in-possession" of, or to be an "owner" or "operator" of such
Mortgaged Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time,
or any comparable law, unless the Servicer believes, based on its reasonable
judgment and a report prepared by a Person who regularly conducts environmental
audits using customary industry standards, that:

     (1) such Mortgaged Property is in material compliance with applicable
environmental laws or, if not, that it would be in the best economic interest of
the Issuing Entity to take such actions as are necessary to bring the Mortgaged
Property into compliance therewith; and

     (2) it is probable that there are no circumstances present at such
Mortgaged Property relating to the use, management or disposal of any hazardous
substances, hazardous materials, hazardous wastes, or petroleum-based materials
for which additional investigation, testing, monitoring, containment, clean-up
or remediation could be required under any federal, state or local law or
regulation, or that if any such materials are present for which such action
could be required, that it would be in the best economic interest of the Issuing
Entity to take such actions with respect to the affected Mortgaged Property.

     The Servicer shall forward a copy of the environmental audit report to the
Depositor and the Trustee. The cost of the environmental audit report
contemplated by this Section 3.12 shall be advanced by the Servicer, subject to
the Servicer's right to be reimbursed therefor from the Collection Account, such
right of reimbursement being prior to the rights of Certificateholders to
receive any amount in the Collection Account received in respect of the affected
Mortgage Loan or other Mortgage Loans.

     If the Servicer determines, as described above, that it is in the best
economic interest of the Issuing Entity to take such actions as are necessary to
bring any such Mortgaged Property into compliance

                                      -96-

<PAGE>

with applicable environmental laws, or to take such action with respect to the
containment, clean-up or remediation of hazardous substances, hazardous
materials, hazardous wastes or petroleum-based materials affecting any such
Mortgaged Property, then the Servicer may take such action as it deems to be in
the best economic interest of the Issuing Entity; provided that any amounts
disbursed by the Servicer pursuant to this Section 3.12 shall constitute
Advances. The cost of any such compliance, containment, clean-up or remediation
shall be advanced by the Servicer, subject to the Servicer's right to be
reimbursed therefor from the Collection Account, such right of reimbursement
being prior to the rights of Certificateholders to receive any amount in the
Collection Account received in respect of the affected Mortgage Loan or other
Mortgage Loans. If the Servicer decides not to take such action, it may not
obtain title to such Mortgaged Property.

     The Liquidation Proceeds from any liquidation of a Mortgage Loan, net of
any payment to the Servicer as provided above, shall be deposited in the
Collection Account on the next succeeding Determination Date following receipt
thereof for distribution on the related Distribution Date.

     The proceeds of any Liquidated Loan, as well as any recovery resulting from
a partial collection of Liquidation Proceeds, will be applied as between the
parties in the following order of priority: first, to reimburse the Servicer for
any related unreimbursed Servicing Advances and unpaid Servicing Fees, pursuant
to Section 3.08(a)(vii) or this Section 3.12; second, to reimburse the Servicer
for any unreimbursed Advances, pursuant to Section 3.08(a)(ii) or this Section
3.12; third, to accrued and unpaid interest (to the extent no Advance has been
made for such amount) on the Mortgage Loan, at the applicable Net Mortgage Rate
to the Due Date occurring in the month in which such amounts are required to be
distributed; fourth, as a recovery of principal of the Mortgage Loan; and fifth,
to any prepayment charges.

     The net proceeds from an REO Property will be applied as between the
parties in the following order of priority: first, to reimburse the Servicer for
any related unreimbursed Servicing Advances and unpaid Servicing Fees, pursuant
to Section 3.08(a)(vii) or this Section 3.12; second, to reimburse the Servicer
for any unreimbursed Advances, pursuant to Section 3.08(a)(ii) or this Section
3.12; third, as a recovery of principal; and fourth, to accrued and unpaid
interest (to the extent no Advance has been made for such amount) on the related
REO Property, at the applicable Net Mortgage Rate to the Due Date occurring in
the month in which such amounts are required to be distributed.

          (b) On each Determination Date, the Servicer shall determine the
respective aggregate amounts of Excess Proceeds, if any, that occurred in the
related Prepayment Period.

          (c) [Reserved].

          (d) With respect to such of the Mortgage Loans as come into and
continue in default, the Servicer will decide, in its reasonable business
judgment, whether to (i) foreclose upon the Mortgaged Properties securing those
Mortgage Loans pursuant to Section 3.12(a), (ii) write off the unpaid principal
balance of the Mortgage Loans as bad debt (provided that the Servicer has
determined that no net recovery is possible through foreclosure proceedings or
other liquidation of the related Mortgaged Property), (iii) take a deed in lieu
of foreclosure, (iv) accept a short sale or short refinance; (v) arrange for a
repayment plan or refinancing, or (vi) agree to a modification of such Mortgage
Loan. As to any Mortgage Loan that becomes 120 days delinquent, the Servicer may
obtain a broker's price opinion, the cost of which will be reimbursable as a
Servicing Advance. After obtaining the broker's price opinion, the Servicer will
determine, in its reasonable business judgment, whether a net recovery is
possible

                                      -97-

<PAGE>

through foreclosure proceedings or other liquidation of the related Mortgage
Property. If the Servicer determines that no such recovery is possible, it must
charge off the related Mortgage Loan at the time it becomes 180 days delinquent.
Once a Mortgage Loan has been charged off, the Servicer will discontinue making
Advances, the Servicer will not be entitled to future Servicing Fees (except as
provided below) with respect to such Mortgage Loan, and the Mortgage Loan will
be treated as a Liquidated Mortgage Loan. If the Servicer determines that such
net recovery is possible through foreclosure proceedings or other liquidation of
the related Mortgaged Property on a Mortgage Loan that becomes 180 days
delinquent, the Servicer will continue to be entitled to Servicing Fees, the
Servicer need not charge off such Mortgage Loan and may continue making
Advances, and the Servicer will continue to report the Mortgage Loan to the
Trustee as being serviced by the Servicer.

          (e) Any Mortgage Loan that is charged off, pursuant to (d) above, may
continue to be serviced by the Servicer for the Certificateholders using
specialized collection procedures (including foreclosure, if appropriate). The
Servicer will not be entitled to Servicing Fees and reimbursement of expenses in
connection with such Mortgage Loans after the date of charge off, except to the
extent of funds available from any recoveries on any such Mortgage Loans. Any
such Mortgage Loans serviced in accordance with the specialized collection
procedures shall be serviced for approximately six months. Any net recoveries
received on such Mortgage Loans during such six month period will be treated as
Subsequent Recoveries. On the date that is six months after the date on which
the Servicer begins servicing such Mortgage Loans using the specialized
collection procedures, unless specific net recoveries are anticipated by the
Servicer on a particular Mortgage Loan, such charged off loan will be released
to the majority holder of the Class C Certificates and thereafter, (i) the
majority holder of the Class C Certificates (as identified with contact
information in writing to the Servicer by the Depositor) will be entitled to any
amounts subsequently received in respect of any such released loans, subject to
a servicing fee, (ii) the servicing thereof and the servicing fee shall be
pursuant to a servicing agreement between the Depositor and the Servicer if the
Servicer continues to service such loan, (iii) the majority holder of the Class
C Certificates may designate any servicer to service any such released loan and
(iv) the majority holder of the Class C Certificates may sell any such released
loan to a third party.

     SECTION 3.13. Trustee to Cooperate; Release of Mortgage Files

     Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will promptly notify the Trustee or
its custodian by delivering a Request for Release substantially in the form of
Exhibit I. Upon receipt of a copy of such request, the Trustee or its custodian
shall promptly release the related Mortgage File to the Servicer, the cost of
which may be charged to the Servicer by the Trustee, and the Servicer is
authorized to cause the removal from the registration on the MERS System of any
such Mortgage if applicable, and the Servicer, on behalf of the Trustee shall
execute and deliver the request for reconveyance, deed of reconveyance or
release or satisfaction of mortgage or such instrument releasing the lien of the
Mortgage 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 Mortgagor to the extent
permitted by law, and otherwise to the Trust Fund to the extent such expenses
constitute "unanticipated expenses" within the meaning of Treasury Regulations
Section 1.860G-(1)(b)(3)(ii). From time to time and as shall be appropriate for
the servicing or foreclosure of any Mortgage Loan, including for 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 or its custodian

                                      -98-

<PAGE>

shall, upon delivery to the Trustee or its custodian of a Request for Release in
the form of Exhibit I signed by a Servicing Officer, release the Mortgage File
to the Servicer, and the cost of delivery of the Mortgage File may be charged to
the Servicer by the Trustee. Subject to the further limitations set forth below,
the 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 Servicer
no longer exists, unless the Mortgage Loan is liquidated and the proceeds
thereof are deposited in the Collection Account.

     Each Request for Release may be delivered to the Trustee or its custodian
(i) via mail or courier, (ii) via facsimile or (iii) by such other means,
including, without limitation, electronic or computer readable medium, as the
Servicer and the Trustee or its custodian shall mutually agree. The Trustee or
its custodian shall release the related Mortgage File(s) within four (4)
Business Days of receipt of a properly completed Request for Release pursuant to
clauses (i), (ii) or (iii) above. Receipt of a properly completed Request for
Release shall be authorization to the Trustee or its custodian to release such
Mortgage Files, provided the Trustee or its custodian has determined that such
Request for Release has been executed, with respect to clauses (i) or (ii)
above, or approved, with respect to clause (iii) above, by an authorized
Servicing Officer of the Servicer, and so long as the Trustee or its custodian
complies with its duties and obligations under this Agreement. If the Trustee or
its custodian is unable to release the Mortgage Files within the period
previously specified, the Trustee or its custodian shall immediately notify the
Servicer indicating the reason for such delay. The Servicer shall not pay
penalties or damages due to the Trustee's or its designee's negligent failure to
release the related Mortgage File or the Trustee's or its designee's negligent
failure to execute and release documents in a timely manner, and such amounts
shall be Servicer Advances.

     On each day that the Servicer remits to the Trustee or its custodian
Requests for Releases pursuant to clauses (ii) or (iii) above, the Servicer
shall also submit to the Trustee or its custodian a summary of the total number
of such Requests for Releases requested on such day by the same method as
described in such clauses (ii) and (iii) above.

     If the Servicer at any time seeks to initiate a foreclosure proceeding in
respect of any Mortgaged Property as authorized by this Agreement, the Servicer
may deliver or cause to be delivered to the Trustee for signature, or on behalf
of the Trustee execute, 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. Notwithstanding the foregoing, the Servicer shall cause
possession of any Mortgage File or of the documents therein that shall have been
released by the Trustee to be returned to the Trustee promptly after possession
thereof shall have been released by the Trustee unless (i) the Mortgage Loan has
been liquidated and the Liquidation Proceeds relating to the Mortgage Loan have
been deposited in the Collection Account, and the Servicer shall have delivered
to the Trustee a Request for Release in the form of Exhibit I or (ii) the
Mortgage File or document shall have been delivered to an attorney or to a
public trustee or other public official as required by law for purposes of
initiating or pursuing legal action or other proceedings for the foreclosure of
the Mortgaged Property and the Servicer shall have delivered to the Trustee an
Officer's Certificate of a Servicing Officer certifying as to the name and
address of the Person to which the Mortgage File or the documents therein were
delivered and the purpose or purposes of such delivery.

     The Servicer shall not have any liability for and shall be excused from the
performance of the Agreement to the extent the Servicer is unable to perform due
to the Trustee's or the custodian's failure to

                                      -99-

<PAGE>

release the related Mortgage File or the Trustee's or the custodian's failure to
execute and release documents in a timely manner.

     SECTION 3.14. Documents, Records and Funds in Possession of Servicer to be
Held for the Trustee.

     All Mortgage Files and funds collected or held by, or under the control of,
the 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 Collection Account, shall be held by the
Servicer for and on behalf of the Trustee and shall be and remain the sole and
exclusive property of the Trust Fund, subject to the applicable provisions of
this Agreement. The Servicer also agrees that it shall not create, incur or
subject any Mortgage File or any funds that are deposited in the Collection
Account, Certificate Account or in 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 set off against any Mortgage File or any funds collected on,
or in connection with, a Mortgage Loan, except, however, that the Servicer shall
be entitled to set off against and deduct from any such funds any amounts that
are properly due and payable to the Servicer under this Agreement.

     SECTION 3.15. Servicing Compensation

     As compensation for its activities hereunder, the Servicer shall be
entitled to retain or withdraw from the Collection Account out of each payment
or recovery of interest on a Mortgage Loan included in the Trust Fund an amount
equal to interest at the applicable Servicing Fee Rate on the Stated Principal
Balance of the related Mortgage Loan as of the immediately preceding
Distribution Date.

     Additional servicing compensation in the form of any Excess Proceeds, late
payment fees, assumption fees (i.e. fees related to the assumption of a Mortgage
Loan upon the purchase of the related Mortgaged Property), bad check charges,
modification fees and similar fees and charges payable by the Mortgagor,
Prepayment Interest Excess, all income and gain net of any losses realized from
Permitted Investments in the Collection Account, and any other benefits arising
from the Collection Account and the Escrow Account shall be retained by the
Servicer to the extent not required to be deposited in the Collection Account
and the Escrow Account pursuant to Sections 3.05, 3.06 or 3.12(a) hereof.
Additionally, the Servicer will be entitled to receive a fee from amounts on
deposit in the Collection Account for the costs associated with certain
forbearances with respect to Mortgage Loans in amounts as specified in Section
3.05(a) herein. The Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder and shall not be
entitled to reimbursement therefor except as specifically provided in this
Agreement. In no event shall the Trustee be liable for any Servicing Fee or for
any differential between the Servicing Fee and the amount necessary to induce a
successor servicer to act as successor servicer under this Agreement.

     SECTION 3.16. Access to Certain Documentation

     The Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of the Certificates and the examiners
and supervisory agents of the OTS, the FDIC and such other authorities, as
applicable, access to the documentation regarding the Mortgage Loans required by
applicable regulations of the OTS and the FDIC. Such access shall be afforded
without

                                     -100-

<PAGE>

charge, but only upon reasonable and prior written request and during normal
business hours at the offices of the Servicer designated by it provided, that
the Servicer shall be entitled to be reimbursed by each such Certificateholder
for actual expenses incurred by the Servicer in providing such reports and
access. Nothing in this Section shall limit the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding the
Mortgagors and the failure of the Servicer to provide access as provided in this
Section as a result of such obligation shall not constitute a breach of this
Section. The Servicer shall provide to the Trustee access to its records
regarding the Mortgage Loans upon reasonable prior notice and during regular
business hours.

     SECTION 3.17. Annual Statement as to Compliance

     Not later than (a) March 12 of each calendar year (other than the calendar
year during which the Closing Date occurs) or (b) with respect to any calendar
year during which an annual report on Form 10-K is not required to be filed
pursuant to Section 3.20 on behalf of the Issuing Entity, by April 15 of each
calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer shall deliver to the Trustee and the Depositor, an
Officer's Certificate in the form attached hereto as Exhibit U stating, as to
each signatory thereof, that (i) a review of the activities of the Servicer
during the preceding calendar year and of the performance of the Servicer under
this Agreement has been made under such officer's supervision, and (ii) to the
best of such officer's knowledge, based on such review, such Servicer has
fulfilled all its obligations under this Agreement in all material respects
throughout such year or a portion thereof, or, if there has been a failure to
fulfill any such obligation in any material respect, specifying each such
failure known to such officer and the nature and status thereof. With respect to
any Subservicer that meets the criteria of Item 1108(a)(2)(i) through (iii) of
Regulation AB, the Servicer shall deliver, on behalf of that Subservicer, the
Officer's Certificate set forth in this Section 3.17 as and when required with
respect to such Subservicer.

     SECTION 3.18. Annual Independent Public Accountants' Servicing Statement;
Financial Statements

          (a) Not later than (i) March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 3.20 on behalf of the Issuing Entity, by April 15 of
each calendar year (or if such day is not a Business Day, the immediately
succeeding Business Day), the Servicer, at its own expense, shall deliver to the
Trustee and the Depositor an officer's assessment of its compliance with the
Servicing Criteria during the preceding calendar year as required by Rules
13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB (the
"Assessment of Compliance"), which assessment shall be substantially in the form
of Exhibit R hereto.

          (b) Not later than (i) March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 3.20 on behalf of the Issuing Entity, April 15 of each
calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer, at its own expense, shall cause a nationally or
regionally recognized firm of independent registered public accountants (who may
also render other services to any Servicer, the Sponsor or any Affiliate
thereof) which is a member of the American Institute of Certified Public
Accountants to furnish a statement to be provided to the Trustee and the
Depositor that attests to and reports on the Assessment of Compliance provided
by such Servicer pursuant to Section 3.18(a) (the

                                     -101-

<PAGE>

"Accountant's Attestation"). Such Accountant's Attestation shall be in
accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the
Securities Act and the Exchange Act.

          (c) The Servicer shall deliver on behalf of any Subservicer and each
Subcontractor (unless, in the case of any Subcontractor, the Depositor has
notified the Servicer and the Trustee in writing that such compliance statement
is not required by Regulation AB) not later than March 12 of each calendar year
(other than the calendar year during which the Closing Date occurs) with respect
to any calendar year during which the Issuing Entity's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, to the Trustee and the Depositor an
Assessment of Compliance, which assessment shall be substantially in the form of
Exhibit R hereto. The Servicer shall deliver on behalf of any Subservicer (other
than the calendar year during which the Closing Date occurs) with respect to any
calendar year during which the Issuing Entity's annual report on Form 10-K is
not required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, by April 15 of each calendar year (or, in each
case, if such day is not a Business Day, the immediately succeeding Business
Day) to the Trustee and the Depositor an Assessment of Compliance, which
assessment shall be substantially in the form of Exhibit R hereto.

          (d) Not later than March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) with respect to any calendar
year during which the Issuing Entity's annual report on Form 10-K is required to
be filed in accordance with the Exchange Act and the rules and regulations of
the Commission, the Servicer shall cause each Subservicer and each Subcontractor
(unless, in the case of any Subcontractor, the Depositor has notified the
Trustee and Servicer in writing that such compliance statement is not required
by Regulation AB) to provide for delivery to the Trustee and the Depositor an
Accountant's Attestation by a registered public accounting firm that attests to,
and reports on, the Assessment of Compliance pursuant to Section 3.18(c) above.
Other than the calendar year during which the Closing Date occurs, with respect
to any calendar year during which the Issuing Entity's annual report on Form
10-K is not required to be filed in accordance with the Exchange Act and the
rules and regulations of the Commission, not later than April 15 of each
calendar year (or, in each case, if such day is not a Business Day, the
immediately succeeding Business Day), the Servicer shall cause each Subservicer
to provide for delivery to the Trustee and the Depositor an Accountant's
Attestation by a registered public accounting firm that attests to, and reports
on, the Assessment of Compliance pursuant to Section 3.18(c) above.

          (e) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission, fifteen
(15) calendar days before the date on which the Issuing Entity's annual report
on Form 10-K with respect to the transactions contemplated by this Agreement is
required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission (or, in each case, if such day is not a Business
Day, the immediately preceding Business Day), the Trustee shall deliver to the
Depositor and the Servicer an Assessment of Compliance with regard to the
Servicing Criteria applicable to the Trustee during the preceding calendar year.

          (f) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission, fifteen
(15) calendar days before the date on which the Issuing Entity's annual report
on Form 10-K with respect to the transactions contemplated by this Agreement is
required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission (or, in each case, if such day is not a Business
Day, the immediately preceding Business Day), the Trustee

                                     -102-

<PAGE>

shall deliver to the Depositor and the Servicer an Accountant's Attestation by a
registered public accounting firm that attests to, and reports on, the
Assessment of Compliance pursuant to Section 3.18(e) above.

          (g) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the
Commission, fifteen (15) calendar days before the date on which the Issuing
Entity's annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations of the Commission (or, in each
case, if such day is not a Business Day, the immediately preceding Business
Day), the Depositor shall cause each custodian, if any, to deliver to the
Depositor, the Servicer and the Trustee an Assessment of Compliance with regard
to the Servicing Criteria applicable to such custodian during the preceding
calendar year.

          (h) Not later than March 12, (or, in each case, if such day is not a
Business Day, the immediately succeeding Business Day), of any calendar year
(other than the calendar year during which the Closing Date occurs) during which
the Issuing Entity's annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the
Commission, the Depositor shall cause each custodian, if any, to deliver to the
Depositor, the Servicer and the Trustee an Accountant's Attestation by a
registered public accounting firm that attests to, and reports on, the
Assessment of Compliance pursuant to Section 3.18(g) above.

          (i) [Reserved].

          (j) [Reserved].

          (k) The Trustee agrees to require any custodian appointed by it to
indemnify and hold harmless the Trustee, the Depositor and the Servicer and each
Person, if any, who "controls" the Trustee, the Depositor or the Servicer within
the meaning of the Securities Act and its officers, directors and Affiliates
from and against any losses, damages, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments and other costs and
expenses that such Person may sustain arising out of third party claims based on
(i) the failure of the custodian, if any, to deliver when required any
information required of it pursuant to Sections 3.18 or 3.20 or (ii) any
material misstatement or omission contained in any information provided on its
behalf pursuant to Sections 3.18 or 3.20.

          (l) Any statement, report and information, including the Assessments
of Compliance and Accountant's Attestations, delivered to the Trustee pursuant
to Sections 3.17 and 3.18 shall be delivered in a Microsoft Word format (or
other word processing format that is acceptable to the Trustee) or in such other
form as agreed upon by the Trustee and the party delivering such statement,
report or other information. Copies of such Assessments of Compliance and
Accountant's Attestations shall be available on the Trustee's website
www.etrustee.net to any Certificateholder, provided such statement is delivered
to the Trustee. The initial Assessments of Compliance and Accountant's
Attestations required pursuant to this Section 3.18 shall be delivered to the
Trustee, and the Depositor, as applicable, by each party no later than March 12,
2008.

          (m) Each of the parties hereto acknowledges and agrees that the
purpose of this Section 3.18 is to facilitate compliance by the Sponsor and the
Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that the
parties' obligations hereunder will be supplemented and modified as necessary to
be

                                     -103-

<PAGE>

consistent with any such amendments, interpretive advice or guidance, convention
or consensus among active participants in the asset-backed securities markets,
advice of counsel, or otherwise in respect of the requirements of Regulation AB
and the parties shall comply with requests made by the Sponsor or the Depositor
for delivery of additional or different information as the Sponsor or the
Depositor may determine in good faith is necessary to comply with the provisions
of Regulation AB, provided that such information is available to such party
without unreasonable effort or expense and within such timeframe as may be
reasonably requested. Any such supplementation or modification shall be made in
accordance with Section 10.01 without the consent of the Certificateholders, and
may result in a change in the reports filed by the Trustee on behalf of the
Issuing Entity under the Exchange Act.

     SECTION 3.19. Subordination of Liens

     In connection with any governmental program under which a Mortgagor may
obtain a benefit in the event the related Mortgaged Property is subject to a
disaster provided that the Mortgagor files a covenant or other lien against the
Mortgaged Property and is required to obtain the subordination thereto of the
Mortgage, the Servicer may cause such subordination to be executed and filed
provided that either (i) the related Mortgage Loan is in default or, in the
Servicer's best judgment, default with respect to such Mortgage Loan is
reasonably foreseeable or (ii) such subordination and participation in such
governmental program will not result in a change in payment expectations with
respect to such Mortgage Loan. For purposes of the preceding sentence, a change
in payment expectations occurs if, as a result of such subordination and
participation in such governmental program, (1) there is a substantial
enhancement of the Mortgagor's capacity to meet the payment obligations under
the Mortgage Loan and that capacity was primarily speculative prior to such
subordination and participation in such governmental program and is adequate
after such subordination and participation in such governmental program or (2)
there is a substantial impairment of the Mortgagor's capacity to meet the
payment obligations under the Mortgage Loan and that capacity was adequate prior
to such subordination and participation in such governmental program and is
primarily speculative after such subordination and participation in such
governmental program. The preceding sentence and clause (ii) of the second
preceding sentence are intended to comply with Treasury Regulations Section
1.1001-3(e)(4) and shall be interpreted in accordance therewith.

     SECTION 3.20. Periodic Filings

     As set forth on Schedule X hereto, for so long as the Issuing Entity is
subject to the Exchange Act reporting requirements, no later than the end of
business on the 2nd Business Day after the occurrence of an event requiring
disclosure on Form 8-K (a "reportable event"), the Depositor, the Sponsor or the
Servicer (i) shall have timely notified the Trustee of an item reportable on a
Form 8-K (unless such item is specific to the Trustee, in which case the Trustee
will be deemed to have notice) and (ii) shall have delivered to the Trustee, all
information, data, and exhibits required to be provided or filed with such Form
8-K in a word format (or other word processing format that is acceptable to the
Trustee) agreed upon by the Trustee and Depositor, Sponsor or Servicer. The
Depositor or the Trustee, to the extent the reportable item pertains to such
party, shall notify the Servicer thereof by telephone. The Trustee shall not be
responsible for determining what information is required to be filed on a Form
8-K in connection with the transactions contemplated by this Agreement (unless
such information is specific to the Trustee, in which case the Trustee will be
responsible for consulting with the Depositor or Servicer in making such a
determination) or what events shall cause a Form 8-K to be required to be filed
(unless such event is specific to the Trustee, in which case the Trustee will be
responsible for consulting with the Depositor or Servicer before causing such
Form 8-K to be filed) and shall not be liable for any late filing of a Form 8-K

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<PAGE>

in the event that it does not receive all information, data and exhibits
required to be provided or filed on or prior to the second Business Day prior to
the applicable filing deadline and with respect to signatures, by noon, New York
City time, on the fourth Business Day after the reportable event. After
preparing the Form 8-K on behalf of the Depositor, the Trustee shall, if
required, forward electronically a draft copy of the Form 8-K to the Depositor
and the Servicer for review. No later than one and one-half Business Days after
receiving a final copy of the Form 8-K from the Trustee, unless the Servicer has
received from the Depositor a notice to the contrary, a duly authorized
representative of the Servicer shall sign the Form 8-K and return an electronic
or fax copy of such signed Form 8-K (with an original executed hard copy to
follow by overnight mail) to the Trustee and the Trustee shall file such Form
8-K; provided that the Depositor has notified the Trustee that it approves of
the form and substance of such Form 8-K. If a Form 8-K cannot be filed on time
or if a previously filed Form 8-K needs to be amended, the Trustee will follow
the procedures set forth in this Agreement. After filing with the Commission,
the Trustee will, pursuant to this Agreement, make available on its internet
website a final executed copy of each Form 8-K. The Trustee will have no
obligation to prepare, execute or file such Form 8-K or any liability with
respect to any failure to properly prepare, execute or file such Form 8-K
resulting from the Trustee's inability or failure to obtain or receive any
information needed to prepare, arrange for execution or file such Form 8-K
within the time frames required by this paragraph, not resulting from its own
negligence, bad faith or willful misconduct.

     Within fifteen (15) days after each Distribution Date, the Trustee shall,
on behalf of the Issuing Entity and in accordance with industry standards, file
with the Commission via the Electronic Data Gathering and Retrieval System
(EDGAR), a Form 10-D with a copy of the report to the Certificateholders for
such Distribution Date as an exhibit thereto. Any other information provided to
the Trustee by the Servicer or Depositor to be included in Form 10-D shall be
determined and prepared by and at the direction of the Depositor pursuant to the
following paragraph and the Trustee will have no duty or liability for any
failure hereunder to determine or prepare any additional information on Form
10-D ("Additional Form 10-D Disclosure") as set forth in the next paragraph.

     As set forth in Schedule Y hereto, within five (5) calendar days after the
related Distribution Date (i) the parties hereto, as applicable, will be
required to provide to the Depositor and the Servicer, to the extent known to
such party, any Additional Form 10-D Disclosure (including any breaches of pool
asset representations and warranties or transaction covenants of which the party
has written notice and which has not been included on the monthly distribution
report for the period), if applicable, and (ii) the Depositor, to the extent it
deems necessary, forward to the Trustee in a Microsoft Word format (or other
word processing format that is acceptable to the Trustee) (with a copy to the
Servicer), or in such other form as otherwise agreed upon by the Trustee and the
Depositor, the form and substance of the Additional Form 10-D Disclosure by the
eighth (8th) calendar day after the related Distribution Date. The Depositor
will be responsible for any reasonable fees and expenses incurred by the Trustee
in connection with including any Additional Form 10-D Disclosure on Form 10-D
pursuant to this paragraph.

     After preparing the Form 10-D at the direction of the Depositor, the
Trustee will forward electronically a draft copy of the Form 10-D to the
Depositor and the Servicer for review by the 9th calendar day after the
Distribution Date. No later than two (2) Business Days after receipt of a final
copy after the related Distribution Date, unless the Servicer receives a notice
from the Trustee as described below or a notice from the Depositor that it has
discovered a material deficiency or irregularity with respect to such Form 10-D,
a duly authorized representative of the Servicer shall sign the Form 10-D and
return an electronic or fax copy of such Form 10-D (with an original executed
hard copy to follow by overnight mail) to the Trustee and the Trustee shall file
such Form 10-D within two (2) Business Days.

                                     -105-

<PAGE>

Unless the Servicer shall have received notice from the Trustee to the contrary,
the Trustee will be deemed to have represented to the Servicer that the monthly
statement has been properly prepared by the Trustee and the Servicer may rely
upon the accuracy thereof in it execution of the Form 10-D. If a Form 10-D
cannot be filed on time (because of notice from the Trustee per the previous
sentence or otherwise) or if a previously filed Form 10-D needs to be amended,
the Trustee will follow the procedures set forth in this Agreement. After filing
with the Commission, the Trustee will make available on its internet website a
final executed copy of each Form 10-D. The Trustee will have no liability with
respect to any failure to properly prepare, execute or file such Form 10-D
resulting from the Trustee's inability or failure to obtain or receive any
information needed to prepare, arrange for execution or file such Form 10-D on a
timely basis.

     Prior to March 30, 2008 (and, if applicable, prior to the ninetieth (90th)
calendar day after the end of the fiscal year for the Issuing Entity), the
Trustee shall, on behalf of the Issuing Entity and in accordance with industry
standards, prepare and file with the Commission via EDGAR a Form 10 -K with
respect to the Issuing Entity. Such Form 10-K shall include the following items,
in each case to the extent they have been delivered to the Trustee within the
applicable time frames set forth in this Agreement, (i) an annual compliance
statement for the Servicer and each Subservicer, as described in Section 3.17 of
the Agreement, (ii)(A) the annual reports on Assessment of Compliance with
Servicing Criteria for each Servicer, Subservicer and Subcontractor (unless the
Depositor has determined that such compliance statement is not required by
Regulation AB), as described in Section 3.18 of the Agreement, and (B) if any
Reporting Servicer's report on Assessment of Compliance with Servicing Criteria
described in Section 3.18 identifies any material instance of noncompliance,
disclosure identifying such instance of noncompliance, or if any report on
assessment of compliance with servicing criteria described in Section 3.18 of
the Agreement is not included as an exhibit to such Form 10-K, disclosure that
such report is not included and an explanation why such report is not included,
(iii)(A) the registered public accounting firm attestation report for the
Servicer and each Subservicer, as described in Section 3.18 of the Agreement,
and (B) if any registered public accounting firm attestation report described in
the Section 3.18 of the Agreement identifies any material instance of
noncompliance, disclosure identifying such instance of noncompliance, or if any
such registered public accounting firm attestation report is not included as an
exhibit to such Form 10-K, disclosure that such report is not included and an
explanation why such report is not included, and (iv) a Sarbanes-Oxley
Certification in the form attached hereto as Exhibit T, executed by the senior
officer in charge of securitizations of the Servicer. Any disclosure or
information in addition to (i) through (iv) above that is required to be
included on Form 10-K ("Additional Form 10-K Disclosure") shall be determined
and prepared by and at the direction of the Depositor pursuant to the following
paragraph and the Trustee will have no duty or liability for any failure
hereunder to determine or prepare any Additional Form 10-K Disclosure, except as
set forth in the next paragraph.

     As set forth in Schedule Z hereto, no later than March 12 of each year that
the Issuing Entity is subject to the Exchange Act reporting requirements,
commencing in 2008, (i) certain parties to the transaction shall be required to
provide to the Depositor and the Servicer, to the extent known, any Additional
Form 10-K Disclosure, if applicable, and (ii) the Depositor shall, to the extent
it deems necessary, forward to the Trustee in a Microsoft Word format (or other
word processing format that is acceptable to the Trustee), or in such other form
as otherwise agreed upon by the Trustee and the Depositor, the form and
substance of the Additional Form 10-K Disclosure by March 15. The Depositor will
be responsible for any reasonable fees and expenses incurred by the Trustee in
connection with including any Additional Form 10-K Disclosure on Form 10-K
pursuant to this paragraph.

                                     -106-

<PAGE>

     After preparing the Form 10-K, the Trustee shall forward electronically a
draft copy of the Form 10-K to the Depositor and the Servicer for review. Upon
the request of the Servicer, the Depositor shall confirm that it has reviewed
the Form 10-K, that it has been properly prepared and that the Servicer may rely
on the accuracy thereof (other than with respect to any portion of the Form 10-K
or any exhibit thereto provided by the Servicer (other than any portion thereof
with respect to which the Servicer has relied on the Trustee)). No later than
5:00 p.m. EST on the 3rd Business Day following receipt of a final copy of the
Form 10-K and if requested, the above-described confirmation from the Depositor,
a senior officer of the Servicer shall sign the Form 10-K and return an
electronic or fax copy of such signed Form 10-K (with an original executed hard
copy to follow by overnight mail) to the Trustee and the Trustee shall file such
Form 10-K by March 30th. If a Form 10-K cannot be filed on time or if a
previously filed Form 10-K needs to be amended, the Trustee will follow the
procedures set forth in the Agreement. After filing with the Commission, the
Trustee will, pursuant to the Agreement, make available on its internet website
a final executed copy of each Form 10-K. The Trustee shall have no liability
with respect to any failure to properly prepare, execute or file such Form 10-K
resulting from the Trustee's inability or failure to obtain or receive any
information needed to prepare, arrange for execution or file such Form 10-K on a
timely basis.

     Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") which shall be in the form attached hereto as Exhibit T. The
Servicer will cause its senior officer in charge of securitization to execute
the Sarbanes-Oxley Certification required pursuant to Rule 13a -14 under the
Securities Exchange Act of 1934, as amended, and to deliver the original
executed Sarbanes-Oxley Certification to the Trustee by March 12 of each year in
which the Issuing Entity is subject to the reporting requirements of the
Exchange Act. In connection therewith, each of the Trustee and the Servicer
shall sign a certification (in the form attached hereto as Exhibit K and Exhibit
L, respectively) for the benefit of the Servicer and its officers, directors and
Affiliates regarding certain aspects of the Sarbanes-Oxley Certification. To the
extent any information or exhibits required to be included in the Form 10 -K are
not timely received by the Trustee prior to March 30, the Trustee shall, on
behalf of the Trust, file a Form 12B25 and one or more amended Form 10-Ks, to
the extent such amendments are accepted pursuant to the Exchange Act, to include
such missing information or exhibits promptly after receipt thereof by the
Trustee.

     On or before January 30, 2008, the Trustee shall, if legally permissible
under applicable regulations and interpretations of the Commission, on behalf of
the Issuing Entity and in accordance with industry standards, file with the
Commission via EDGAR a Form 15 Suspension Notification with respect to the
Issuing Entity, if applicable.

     The Servicer agrees to furnish to the Trustee promptly, from time to time
upon request, such further information, reports, and financial statements in a
Microsoft Word format (or other word processing format that is acceptable to the
Trustee) within its control related to this Agreement and the Mortgage Loans as
is reasonably necessary to prepare and file all necessary reports with the
Commission. The Trustee shall have no responsibility to file any items with the
Commission other than those specified in this section and the Servicer shall
execute any and all Form 8-Ks, Form 10-Ds and Form 10-Ks required hereunder.

     The Trustee shall not have any responsibility to file any items (other than
those generated by it) that have not been received in a format suitable (or
readily convertible into a format suitable) for electronic filing via the EDGAR
system and shall not have any responsibility to convert any such items to such
format (other than those items generated by it or that are readily convertible
to such format).

                                     -107-

<PAGE>

     If the Commission issues additional interpretative guidance or promulgates
additional rules or regulations with respect to Regulation AB or otherwise, or
if other changes in applicable law occur, that would require the reporting
arrangements, or the allocation of responsibilities with respect thereto,
described in this Section 3.20, to be conducted differently than as described,
the Depositor, the Servicer, and the Trustee will reasonably cooperate to amend
the provisions of this Section 3.20 in order to comply with such amended
reporting requirements and such amendment of this Section 3.20. Any such
amendment shall be made in accordance with Section 10.01 without the consent of
the Certificateholders, and may result in a change in the reports filed by the
Trustee on behalf of the Issuing Entity under the Exchange Act. Notwithstanding
the foregoing, the Depositor, the Servicer, and the Trustee shall not be
obligated to enter into any amendment pursuant to this Section 3.20 that
adversely affects its obligations and immunities under this Agreement.

     The Depositor, the Servicer and the Trustee agree to use their good faith
efforts to cooperate in complying with the requirements of this Section 3.20.

     SECTION 3.21. Indemnification by Trustee

     The Trustee shall indemnify and hold harmless the Depositor, the Servicer
and their respective officers, directors, agents and Affiliates from and against
any losses, damages, penalties, fines, forfeitures, reasonable legal fees and
related costs, judgments and other costs and expenses arising out of or based
upon a breach by the Trustee or any of its officers, directors, agents or
Affiliates of its obligations under Sections 3.18 and 3.20, any material
misstatement or omission in any documents prepared thereunder (to the extent the
Trustee is responsible for providing information or calculating amounts included
in such information), the failure of the Trustee to deliver when required any
Assessment of Compliance or Accountant's Attestation required of it pursuant to
Section 3.18, or any material misstatement or omission contained in any
Assessment of Compliance or Accountant's Attestation provided on its behalf
pursuant to Section 3.18, or the negligence, bad faith or willful misconduct of
the Trustee in connection therewith. If the indemnification provided for herein
is unavailable or insufficient to hold harmless the indemnified parties, then
the Trustee agrees that it shall contribute to the amount paid or payable by the
indemnified parties as a result of the losses, claims, damages or liabilities of
the indemnified parties in such proportion as is appropriate to reflect the
relative fault of the Trustee on the one hand and of the indemnified parties on
the other.

     SECTION 3.22. Indemnification by Servicer

     The Servicer shall indemnify and hold harmless the Trustee and the
Depositor and their respective officers, directors, agents and Affiliates from
and against any losses, damages, penalties, fines, forfeitures, reasonable legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach by the Servicer or any of its officers, directors, agents or
Affiliates of its obligations under Sections 3.17, 3.18 and 3.20, any material
misstatement or omission in any documents prepared thereunder (to the extent the
Servicer is responsible for providing information or calculating amounts
included in such information), the failure of such Servicer or any related
Subservicer or Subcontractor to deliver or cause to be delivered when required
any Assessment of Compliance or Accountant's Attestation required of it pursuant
to Section 3.18 or Annual Statement of Compliance required pursuant to Section
3.17, as applicable, or any material misstatement or omission contained in any
Assessment of Compliance, Accountant's Attestation or Annual Statement as to
Compliance provided on its behalf pursuant to Section 3.18 or 3.17, as
applicable, or the negligence, bad faith or willful misconduct of the Servicer
in connection therewith. If the indemnification provided for herein is

                                     -108-

<PAGE>

unavailable or insufficient to hold harmless the indemnified parties, then the
Servicer agrees that it shall contribute to the amount paid or payable by the
indemnified parties as a result of the losses, claims, damages or liabilities of
the indemnified parties in such proportion as is appropriate to reflect the
relative fault of the Servicer on the one hand and the indemnified parties on
the other.

     Notwithstanding the foregoing, the Servicer shall be entitled to rely
conclusively on the accuracy of the information or data provided to the Servicer
in the respective Assessment of Compliance regarding the Servicing Criteria
applicable to the Trustee under Sections 3.18(e) and 3.18(f) or the Depositor
under Sections 3.18(g) and 3.18(h) in connection with the Servicer's document
preparation under Sections 3.17, 3.18 and 3.20, and the Servicer shall be
entitled to rely conclusively upon and shall have no liability for any errors in
such information.

     SECTION 3.23. Prepayment Charge Reporting Requirements

     Promptly before or after each Distribution Date, the Servicer shall provide
to the Trustee the following information with regard to each Mortgage Loan that
has prepaid during the related Prepayment Period:

          (i)  loan number;

          (ii) current Mortgage Rate;

          (iii) current principal balance;

          (iv) original principal balance;

          (v)  Prepayment Charge amount due; and

          (vi) Prepayment Charge amount collected.

     SECTION 3.24. Information to the Trustee and Rating Agencies

     (a) Two (2) Business Days after the 15th day of each month, but not later
than the 18th day of each month, the Servicer shall furnish to the Trustee in
electronic format (1) the Remittance Report pursuant to Section 4.04(j) and (ii)
a delinquency report in the form attached hereto as Exhibit V for the period
ending on the last Business Day of the preceding month (and with respect to
prepayments in full, for the period ending on the 14th day of the month in which
such report is to be furnished); provided, however, that in the event the 18th
day is not a Business Day, the aforementioned reports shall be furnished by the
Servicer to the Trustee on the next Business Day; and provided, further, that in
the event there are three (3) non-Business Days preceding the 18th day, the
Servicer will (a) furnish to the Trustee, on or before the 18th day of the
month, the aforementioned reports, which will not include information arising
from the related Prepayment Period, and (b) furnish to the Trustee, by 3:00
P.M., EST on the next succeeding Business Day after the 18th day, a cumulative
version of the aforementioned reports which includes such information arising
from the related Prepayment Period.

     (b) Within three (3) Business Days after the Servicer Remittance Date, the
Servicer shall provide a monthly loan level data file to Moody's containing the
information for each Mortgage Loan as listed in

                                     -109-

<PAGE>

Exhibit W, as well as such additional mortgage loan data elements that Moody's
may reasonably request. The data shall be provided in a format as may be
reasonably requested by Moody's.

     SECTION 3.25. Indemnification

     The Servicer shall indemnify the Sponsor, the Issuing Entity, the Trustee
(in its individual capacity and in its capacity as trustee), the Depositor and
their officers, directors, employees and agents and hold each of them harmless
against any and all claims, losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments, and any other
costs, fees and expenses that any of such parties may sustain in any way related
to the failure of the Servicer to perform its duties and service the Mortgage
Loans in compliance with the terms of this Agreement by reason of negligence,
willful misfeasance or bad faith in the performance of its duties or by reason
of reckless disregard of obligations and duties hereunder. The Servicer
immediately shall notify the Sponsor, the Trustee and the Depositor or any other
relevant party if a claim is made by a third party with respect to such party
and this Agreement or the Mortgage Loans and, if subject to this indemnification
obligation, assume (with the prior written consent of the indemnified party,
which consent shall not be unreasonably withheld or delayed) the defense of any
such claim and pay all expenses in connection therewith, including counsel fees,
and promptly pay, discharge and satisfy any judgment or decree which may be
entered against it or any of such parties in respect of such claim. The Servicer
shall follow any reasonable written instructions received from the Trustee in
connection with such claim, it being understood that the Trustee shall have no
duty to monitor or give instructions with respect to such claims, and the
Servicer will not have any liability for following such instructions. The
Servicer shall provide the Depositor and the Trustee with a written report of
all expenses and advances incurred by the Servicer pursuant to this Section
3.25(a), and the Servicer shall promptly reimburse itself from the assets of the
Trust Fund in the Collection Account for all amounts advanced by it pursuant to
the preceding sentence except when the claim in any way relates to the gross
negligence, bad faith or willful misconduct of the Servicer. The provisions of
this paragraph shall survive the termination of this Agreement and the payment
of the outstanding Certificates.

     SECTION 3.26. Solicitation

     The Servicer may solicit or refer to a mortgage originator, who may or may
not be an affiliate of the Depositor or the Servicer, any Mortgagor for
refinancing or otherwise take action to encourage refinancing.

     SECTION 3.27. High Cost Mortgage Loans

     In the event that the Servicer reasonably determines that a Mortgage Loan
may be a "high cost mortgage loan", "high cost home", "covered", "high cost",
"high risk home", "predatory" or similarly classified loan under any applicable
state, federal or local law, the Servicer may notify the Depositor, the Sponsor
and the Trustee thereof; the Servicer may terminate its servicing thereof; and
such determination shall be deemed to materially and adversely affect the
interests of the Certificateholders in such Mortgage Loan and the Sponsor will
repurchase the Mortgage Loan within a 30 day period from the date of the notice
in the manner described in Section 2.05.

                                     -110-

<PAGE>

     SECTION 3.28. Rights of the NIMs Insurer

     Each of the rights of the NIMs Insurer set forth in this agreement shall
exist so long as NIM Notes have been issued pursuant to the Indenture remain
outstanding that are insured by a NIMs Insurer or the NIMs Insurer is owed
amounts in respect of its guarantee of payment on such NIM notes.

     SECTION 3.29. Additional Rights of the Class C Certificateholder

     The Class C Certificateholder (or, if applicable, the Holders of a majority
of aggregate principal balance of the NIM Notes) will have the right (but not
the obligation) to terminate the Servicer and transfer servicing to any entity
that meets the servicer eligibility criteria specified in Section 7.02 upon the
occurrence of (x) a change in ownership and control of the Servicer as provided
in Section 6.02 or (y) a two-rating downgrade of the primary servicer (subprime)
rating of the Servicer by either of the Rating Agencies that is not cured within
sixty (60) days. No such termination shall be effective until the Class C
Certificateholder designates a successor servicer and such successor servicer
has executed and delivered to the Depositor and the Trustee an agreement
accepting such delegation and assignment that contains an acknowledgment by such
person that it is assuming the rights, powers, duties, responsibilities,
obligations and liabilities of a servicer hereunder with like effect as if
originally named a party to this Agreement. For avoidance of doubt, any removal
and replacement of the Servicer hereunder shall not be an event of default. The
Trustee shall have no obligation to monitor the changes to the Servicer's
eligibility criteria described herein or to enforce the rights of the Class C
Certificateholder herein.

                                   ARTICLE IV

                                  DISTRIBUTIONS

     SECTION 4.01. Advances

          (a) Subject to the conditions of this Article IV, the Servicer, as
required below, shall make an Advance and deposit such Advance in the Collection
Account. The Servicer shall use commercially reasonable efforts to remit each
such Advance no later than 2:30 p.m. Eastern time, but in any case no later than
4:00 p.m. Eastern time, on the Servicer Remittance Date in immediately available
funds. The Servicer shall be obligated to make any such Advance only to the
extent that such advance would not be a Non-Recoverable Advance. If the Servicer
shall have determined that it has made a Non-Recoverable Advance or that a
proposed Advance or a lesser portion of such Advance would constitute a
Non-Recoverable Advance, the Servicer shall deliver (i) to the Trustee for the
benefit of the Certificateholders, funds constituting the remaining portion of
such Advance, if applicable, and (ii) to the NIMs Insurer and the Trustee an
Officer's Certificate setting forth the basis for such determination. The
Servicer may, in its sole discretion, make an Advance with respect to the
principal portion of the final Scheduled Payment on a Balloon Loan, but the
Servicer is under no obligation to do so; provided, however, that nothing in
this sentence shall affect the Servicer's obligation under this Section 4.01 to
Advance the interest portion of the final Scheduled Payment with respect to a
Balloon Loan as if such Balloon Loan were a fully amortizing Mortgage Loan. If a
Mortgagor does not pay its final Scheduled Payment on a Balloon Loan when due,
the Servicer shall Advance (unless it determines in its good faith judgment that
such amounts would constitute a Non-Recoverable Advance) a full month of
interest (net of the Servicing Fee) on the Stated Principal Balance thereof each
month until its Stated Principal Balance is reduced to zero.

                                     -111-

<PAGE>

     In lieu of making all or a portion of such Advance from its own funds, the
Servicer may (i) cause to be made an appropriate entry in its records relating
to the Collection Account that any amount held for future distribution has been
used by the Servicer in discharge of its obligation to make any such Advance and
(ii) transfer such funds from the Collection Account to the Certificate Account.
In addition, the Servicer shall have the right to reimburse itself for any such
Advance from amounts held from time to time in the Collection Account to the
extent such amounts are not then required to be distributed. Any funds so
applied and transferred pursuant to the previous two sentences shall be replaced
by the Servicer by deposit in the Collection Account no later than the close of
business on the Servicer Remittance Date on which such funds are required to be
distributed pursuant to this Agreement. The Servicer shall be entitled to be
reimbursed from the Collection Account for all Advances of its own funds made
pursuant to this Section as provided in Section 3.08. The obligation to make
Advances with respect to any Mortgage Loan shall continue until the earlier of
(i) such Mortgage Loan is paid in full, (ii) the related Mortgaged Property or
related REO Property has been liquidated or until the purchase or repurchase
thereof (or substitution therefor) from the Issuing Entity pursuant to any
applicable provision of this Agreement, except as otherwise provided in this
Section 4.01, (iii) the Servicer determines in its good faith judgment that such
amounts would constitute a Non-Recoverable Advance as provided in the preceding
paragraph or (iv) the date on which such Mortgage Loan becomes 150 days
delinquent as set forth below.

          (b) Notwithstanding anything in this Agreement to the contrary
(including, but not limited to, Sections 3.01 and 4.01(a) hereof), no Advance or
Servicing Advance shall be required to be made hereunder by the Servicer
(including for the avoidance of doubt, the Trustee as successor servicer) if
such Advance or Servicing Advance would, if made, constitute a Non-Recoverable
Advance or a Non-Recoverable Servicing Advance. The determination by the
Servicer that it has made a Non-Recoverable Advance or a Non-Recoverable
Servicing Advance or that any proposed Advance or Servicing Advance, if made,
would constitute a Non-Recoverable Advance or a Non-Recoverable Servicing
Advance, respectively, shall be evidenced by an Officer's Certificate of the
Servicer delivered to the Trustee. In addition, the Servicer shall not be
required to advance any Relief Act Shortfalls, shortfalls due to bankruptcy
proceedings and shortfalls due to modifications as provided in Section 3.05.

          (c) Notwithstanding the foregoing, the Servicer shall not be required
to make any Advances for any Mortgage Loan after such Mortgage Loan becomes 150
days delinquent. The Servicer shall identify such delinquent Mortgage Loans in
the Servicer Statement referenced in Section 3.24. In addition, the Servicer
shall provide the Trustee with an Officer's Certificate listing such delinquent
Mortgage Loans and certifying that such loans are 150 days or more delinquent.

     SECTION 4.02. Reduction of Servicing Compensation in Connection with
Prepayment Interest Shortfalls

     In the event that any Mortgage Loan is the subject of a Prepayment Interest
Shortfall, the Servicer shall, from amounts in respect of the Servicing Fee for
such Distribution Date, deposit into the Collection Account, as a reduction of
the Servicing Fee for such Distribution Date, no later than the Servicer
Remittance Date immediately preceding such Distribution Date, an amount up to
the Prepayment Interest Shortfall; provided that the amount so deposited shall
not exceed the Compensating Interest for such Distribution Date. In case of such
deposit, the Servicer shall not be entitled to any recovery or reimbursement
from the Depositor, the Trustee, the Issuing Entity or the Certificateholders.
With respect to any Distribution Date, to the extent that the Prepayment
Interest Shortfall exceeds Compensating Interest (such excess, a "Non-Supported
Interest Shortfall"), such Non-Supported Interest Shortfall shall reduce the
Current Interest with respect to each Class of Certificates, pro rata based upon
the amount of

                                     -112-

<PAGE>

interest each such Class would otherwise be entitled to receive on such
Distribution Date. Notwithstanding the foregoing, there shall be no reduction of
the Servicing Fee in connection with Prepayment Interest Shortfalls related to
the Relief Act or bankruptcy proceedings and the Servicer shall not be obligated
to pay Compensating Interest with respect to Prepayment Interest Shortfalls
related to the Relief Act or bankruptcy proceedings.

     SECTION 4.03. Distributions on the REMIC Interests

     On each Distribution Date, amounts on deposit in the Certificate Account
shall be treated for federal income tax purposes as applied to distributions on
the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount
sufficient to make the distributions on the respective Certificates on such
Distribution Date in accordance with the provisions of Section 4.04.

     SECTION 4.04. Distributions

          (a) [Reserved].

          (b) On each Distribution Date (or on the related Swap Payment Date,
with respect to payments to the Supplemental Interest Trust), the Trustee shall,
to the extent of funds then available, make the following distributions from
funds then available in the Certificate Account, of an amount equal to the
Interest Funds, in the following order of priority:

          (i) to the Class P Certificates, an amount equal to any Prepayment
Charges received with respect to the Mortgage Loans and all amounts paid by the
Servicer or the Sponsor in respect of Prepayment Charges pursuant to this
Agreement, and all amounts received in respect of any indemnification paid as a
result of a Prepayment Charge being unenforceable in breach of the
representations and warranties set forth in the FFFC Purchase Agreement for the
related Prepayment Period;

          (ii) to the Supplemental Interest Trust, any Net Swap Payments owed to
the Swap Counterparty;

          (iii) to the Supplemental Interest Trust, any Swap Termination Payment
owed by the Supplemental Interest Trust to the Swap Counterparty (other than any
Defaulted Swap Termination Payment);

          (iv) concurrently, to each class of the Class A Certificates, the
Current Interest and any Interest Carry Forward Amount with respect to each such
class; provided, however, that if Interest Funds are insufficient to make a full
distribution of the aggregate Current Interest and the aggregate Interest Carry
Forward Amount to the Class A Certificates, Interest Funds will be distributed
pro rata among each class of the Class A Certificates based upon the ratio of
(x) the Current Interest and Interest Carry Forward Amount for each class of the
Class A Certificates to (y) the total amount of Current Interest and any
Interest Carry Forward Amount for the Class 1-A, Class 2-A and Class R
Certificates in the aggregate;

          (v) to the Class M-1 Certificates, the Current Interest for such class
and any Interest Carry Forward Amount with respect to such Class;

                                     -113-

<PAGE>

          (vi) to the Class M-2 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

          (vii) to the Class M-3 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

          (viii) to the Class M-4 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

          (ix) to the Class M-5 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such Class;

          (x) to the Class M-6 Certificates, the Current Interest for such class
and any Interest Carry Forward Amount with respect to such Class;

          (xi) to the Class B-1 Certificates, the Current Interest for each such
class and any Interest Carry Forward Amount with respect to each such Class;

          (xii) to the Class B-2 Certificates, the Current Interest for each
such class and any Interest Carry Forward Amount with respect to each such
Class;

          (xiii) to the Class B-3 Certificates, the Current Interest for each
such class and any Interest Carry Forward Amount with respect to each such
Class;

          (xiv) any remainder pursuant to Section 4.04(f) hereof.

     On each Distribution Date, subject to the proviso in (iv) above, Interest
Funds received on the Group One Mortgage Loans will be deemed to be distributed
to the Class 1-A and Class R Certificates and Interest Funds received on the
Group Two Mortgage Loans will be deemed to be distributed to the Class 2-A
Certificates, in each case, until the related Current Interest and Interest
Carry Forward Amount of each such Class of Certificates for such Distribution
Date has been paid in full. Thereafter, Interest Funds not required for such
distributions are available to be applied to if necessary, to the Class or
Classes of Certificates that are not related to such group of Mortgage Loans.

          (c) [Reserved].

          (d) On each Distribution Date (or on the related Swap Payment Date,
with respect to payments to the Supplemental Interest Trust), the Trustee shall,
to the extent of funds then available, make the following distributions from the
Certificate Account of an amount equal to the Principal Distribution Amount in
the following order of priority, and each such distribution shall be made only
after all distributions pursuant to Section 4.04(b) above shall have been made
until such amount shall have been fully distributed for such Distribution Date:

          (i) to the Supplemental Interest Trust, any Net Swap Payments owed to
the Swap Counterparty, to the extent not paid pursuant to Section 4.04(b)(ii);

          (ii) to the Supplemental Interest Trust, any Swap Termination Payment
owed by the Supplemental Interest Trust to the Swap Counterparty (other than any
Defaulted Swap Termination Payment), to the extent not paid pursuant to Section
4.04(b)(iii);

                                     -114-

<PAGE>

          (iii) to the Class A Certificates, the Class A Principal Distribution
Amount shall be distributed as follows:

               (A) the Class 1-A Principal Distribution Amount will be
          distributed sequentially to the Class R Certificates until the
          Certificate Principal Balance of such class has been reduced to zero
          and then to the Class 1-A Certificates until the Certificate Principal
          Balance of such class has been reduced to zero;

               (B) the Class 2-A Principal Distribution Amount will be
          distributed as follows: sequentially, to the Class 2-A1 Certificates
          until the Certificate Principal Balance of such class has been reduced
          to zero, then to the Class 2-A2 Certificates until the Certificate
          Principal Balance of such class has been reduced to zero, and then to
          the Class 2-A3 Certificates until the Certificate Principal Balance of
          such class has been reduced to zero; provided, however, that on and
          after the Distribution Date on which the aggregate Certificate
          Principal Balance of the Class M, Class B and Class C Certificates has
          been reduced to zero, any principal distributions allocated to the
          Class 2-A1, Class 2-A2 and Class 2-A3 Certificates are required to be
          allocated pro rata, among such classes, based on their respective
          Certificate Principal Balances, until their Certificate Principal
          Balances have been reduced to zero;

          (iv) to the Class M-1 Certificates, the Class M-1 Principal
Distribution Amount;

          (v) to the Class M-2 Certificates, the Class M-2 Principal
Distribution Amount;

          (vi) to the Class M-3 Certificates, the Class M-3 Principal
Distribution Amount;

          (vii) to the Class M-4 Certificates, the Class M-4 Principal
Distribution Amount;

          (viii) to the Class M-5 Certificates, the Class M-5 Principal
Distribution Amount;

          (ix) to the Class M-6 Certificates, the Class M-6 Principal
Distribution Amount;

          (x) to the Class B-1 Certificates, the Class B-1 Principal
Distribution Amount;

          (xi) to the Class B-2 Certificates, the Class B-2 Principal
Distribution Amount;

          (xii) to the Class B-3 Certificates, the Class B-3 Principal
Distribution Amount; and

          (xiii) any remainder pursuant to Section 4.04(f) hereof.

          (e) [Reserved].

          (f) On each Distribution Date, the Trustee shall, to the extent of
funds then available, make the following distributions up to the following
amounts from the Certificate Account of the remainders pursuant to Section
4.04(b)(xiv) and (d)(xiii) hereof and each such distribution shall be made only
after all distributions pursuant to Sections 4.04(b) and (d) above shall have
been made until such remainders shall have been fully distributed for such
Distribution Date:

                                     -115-

<PAGE>

          (i) to the Class A Certificates, any funds owed, in the same manner
and in the same order of priority, as set forth in accordance with Section
4.04(b)(iv), to the extent not paid pursuant to Section 4.04(b)(iv);

          (ii) to the Class M-1 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(v), to the extent not paid pursuant to Section
4.04(b)(v);

          (iii) to the Class M-2 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(vi), to the extent not paid pursuant to Section
4.04(b)(vi);

          (iv) to the Class M-3 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(vii), to the extent not paid pursuant to Section
4.04(b)(vii);

          (v) to the Class M-4 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(viii), to the extent not paid pursuant to
Section 4.04(b)(viii);

          (vi) to the Class M-5 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(ix), to the extent not paid pursuant to Section
4.04(b)(ix);

          (vii) to the Class M-6 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(x), to the extent not paid pursuant to Section
4.04(b)(x);

          (viii) to the Class B-1 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(xi), to the extent not paid pursuant to Section
4.04(b)(xi);

          (ix) to the Class B-2 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(xii), to the extent not paid pursuant to Section
4.04(b)(xii);

          (x) to the Class B-3 Certificates, any funds owed as set forth in
accordance with Section 4.04(b)(xiii), to the extent not paid pursuant to
Section 4.04(b)(xiii);

          (xi) for distribution as part of the Principal Distribution Amount,
the Extra Principal Distribution Amount;

          (xii) to the Class M-1 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xiii) to the Class M-2 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xiv) to the Class M-3 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xv) to the Class M-4 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xvi) to the Class M-5 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xvii) to the Class M-6 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xviii) to the Class B-1 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xix) to the Class B-2 Certificates, any Unpaid Realized Loss Amount
for such class;

                                     -116-

<PAGE>

          (xx) to the Class B-3 Certificates, any Unpaid Realized Loss Amount
for such class;

          (xxi) to the Class A, Class M and Class B Certificates, on a pro rata
basis, based upon outstanding Floating Rate Certificate Carryover for each such
Class, the Floating Rate Certificate Carryover for each such Class; and

          (xxii) the remainder pursuant to Section 4.04(g) hereof.

          (g) on each Distribution Date, the Trustee shall allocate the
remainders pursuant to Section 4.04(f)(xxii) as follows:

          (i) to the Supplemental Interest Trust, any Defaulted Swap Termination
Payment;

          (ii) to the Class C Certificates in the following order of priority,
(I) the Class C Current Interest, (II) the Class C Interest Carry Forward
Amount, (III) as principal on the Class C Certificate until the Certificate
Principal Balance of the Class C Certificates has been reduced to zero and (IV)
the Class C Unpaid Realized Loss Amount; and

          (iii) the remainder pursuant to Section 4.04(h) hereof.

          (h) On each Distribution Date, the Trustee shall allocate the
remainder pursuant to Section 4.04(g)(iii) hereof (i) to the Trustee to
reimburse amounts or pay indemnification amounts owing to the Trustee from the
Issuing Entity pursuant to Section 8.06 and (ii) to the Class R Certificate and
such distributions shall be made only after all preceding distributions shall
have been made until such remainder shall have been fully distributed.

          (i) On each Distribution Date, after giving effect to distributions on
such Distribution Date, the Trustee shall allocate the Applied Realized Loss
Amount for the Certificates to reduce the Certificate Principal Balances of the
Class C Certificates and the Subordinate Certificates in the following order of
priority:

          (i) to the Class C Certificates, until the Class C Certificate
Principal Balance is reduced to zero;

          (ii) to the Class B-3 Certificates until the Class B-3 Certificate
Principal Balance is reduced to zero;

          (iii) to the Class B-2 Certificates until the Class B-2 Certificate
Principal Balance is reduced to zero;

          (iv) to the Class B-1 Certificates until the Class B-1 Certificate
Principal Balance is reduced to zero;

          (v) to the Class M-6 Certificates until the Class M-6 Certificate
Principal Balance is reduced to zero;

          (vi) to the Class M-5 Certificates until the Class M-5 Certificate
Principal Balance is reduced to zero;

                                     -117-

<PAGE>

          (vii) to the Class M-4 Certificates until the Class M-4 Certificate
Principal Balance is reduced to zero;

          (viii) to the Class M-3 Certificates until the Class M-3 Certificate
Principal Balance is reduced to zero;

          (ix) to the Class M-2 Certificates until the Class M-2 Certificate
Principal Balance is reduced to zero; and

          (x) to the Class M-1 Certificates until the Class M-1 Certificate
Principal Balance is reduced to zero.

          (j) Subject to Section 9.02 hereof respecting the final distribution,
on each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the preceding Record Date either by wire transfer
in immediately available funds to the account of such holder at a bank or other
entity having appropriate facilities therefor, if such Holder has so notified
the Trustee at least five (5) Business Days prior to the related Record Date or,
if not, by check mailed by first class mail to such Certificateholder at the
address of such holder appearing in the Certificate Register. Notwithstanding
the foregoing, but subject to Section 9.02 hereof respecting the final
distribution, distributions with respect to Certificates registered in the name
of a Depository shall be made to such Depository in immediately available funds.

     In accordance with this Agreement, the Servicer shall prepare and deliver
an electronic report (the "Remittance Report") to the Trustee (or by such other
means as the Servicer and the Trustee may agree from time to time) containing
such data and information as to permit the Trustee to prepare the Monthly
Statement to Certificateholders and make the required distributions for the
related Distribution Date. The Trustee will prepare the Monthly Report based
solely upon the information received from the Servicer.

          (k) The Trustee is hereby directed by the Depositor to execute the
Corridor Contracts on behalf of the Issuing Entity in the form presented to it
by the Depositor and shall have no responsibility for the contents of such
Corridor Contracts, including, without limitation, the representations and
warranties contained therein. Any funds payable by the Issuing Entity under the
Corridor Contracts at closing shall be paid by the Depositor. Any payments
received under the terms of the related Corridor Contract will be available to
pay the holders of the related Class 1-A and Class R Certificates, Class 2-A
Certificates, or the Subordinate Certificates up to the amount of any Floating
Rate Certificate Carryovers remaining after all other distributions required
under this Section 4.04 are made on such Distribution Date, other than Floating
Rate Certificate Carryovers attributable to the fact that Applied Realized Loss
Amounts are not allocated to the Class A Certificates. Any amounts received
under the terms of any Corridor Contract on a Distribution Date that are not
used to pay such Floating Rate Certificate Carryovers will be distributed to the
holders of the Class C Certificates. Payments in respect of such Floating Rate
Certificate Carryovers from proceeds of a Corridor Contract shall be paid to the
related classes of Class 1-A and Class R Certificates, Class 2-A Certificates,
and Subordinate Certificates, pro rata based upon such Floating Rate Certificate
Carryovers for each such class of Class 1-A and Class R Certificates, Class 2-A
Certificates, and Subordinate Certificates. Amounts received on the Class 1-A
Corridor Contract will only be available to make payments on the Class 1-A and
Class R Certificates, amounts received on the Class 2-A Corridor Contract will
only be available to make payments on the Class 2-A Certificates, amounts
received on the Subordinate Certificate Corridor Contract will only be available
to make payments on the Subordinate Certificates.

                                     -118-

<PAGE>

          (i) The Trustee shall establish and maintain, for the benefit of the
Issuing Entity and the Certificateholders, the Corridor Contract Account. On or
prior to the related Corridor Contract Termination Date, amounts, if any,
received by the Trustee for the benefit of the Issuing Entity in respect of the
related Corridor Contract shall be deposited by the Trustee into the Corridor
Contract Account and will be used to pay Floating Rate Certificate Carryovers on
the related Class 1-A and Class R Certificates, Class 2-A Certificates, and
Subordinate Certificates to the extent provided in the immediately preceding
paragraph. With respect to any Distribution Date on or prior to the related
Corridor Contract Termination Date, the amount, if any, payable by the Cap
Contract Counterparty under the related Corridor Contract will equal the product
of (i) the excess of (x) One-Month LIBOR (as determined by the Cap Contract
Counterparty and subject to a cap equal to the rate with respect to such
Distribution Date as shown under the heading "1ML Upper Collar" in the schedule
to the related Corridor Contract), over (y) the rate with respect to such
Distribution Date as shown under the heading "1ML Strike Lower Collar" in the
schedule to the related Corridor Contract, (ii) an amount equal to the lesser of
(x) the related Corridor Contract Notional Balance for such Distribution Date
and (y) the outstanding Certificate Principal Balance of the related classes of
Certificates and (iii) the number of days in such Accrual Period, divided by
360. If a payment is made to the Issuing Entity under a Corridor Contract and
the Trustee is required to distribute excess amounts to the holders of the Class
C Certificates as described above, information regarding such distribution will
be included in the monthly statement made available on the Trustee's website
pursuant to Section 4.05(b) hereof.

          (ii) Amounts on deposit in the Corridor Contract Account will remain
uninvested pending distribution to Certificateholders.

          (iii) Each Corridor Contract is scheduled to remain in effect until
the related Corridor Contract Termination Date and will be subject to early
termination only in limited circumstances. Such circumstances include certain
insolvency or bankruptcy events in relation to the Cap Contract Counterparty
(after a grace period of three (3) Local Business Days, as defined in the
related Corridor Contract, after notice of such failure is received by the Cap
Contract Counterparty) to make a payment due under the related Corridor
Contract, the failure by the Cap Contract Counterparty (after a cure period of
twenty (20) days after notice of such failure is received) to perform any other
agreement made by it under the related Corridor Contract, the termination of the
Trust Fund and the related Corridor Contract becoming illegal or subject to
certain kinds of taxation.

          (iv) On the Closing Date, the Cap Contract Counterparty and the
Trustee (which is hereby authorized and directed to enter into such credit
support annex) will enter into a credit support annex in relation to the
Corridor Contracts, which annex is intended to protect the Issuing Entity from
certain ratings downgrades that might hinder the ability of the Cap Contract
Counterparty to continue its obligations under the Corridor Contracts.

     Pursuant to and in accordance with the terms and provisions of the Corridor
Contracts, the Cap Contract Counterparty may be required to post additional
collateral in connection with its obligations under the Corridor Contracts. In
connection with the foregoing, the Trustee shall establish a Corridor Posted
Collateral Account on the Closing Date.

     To the extent that the Cap Contract Counterparty remits any Posted
Collateral to the Trustee under the Corridor Contracts, the Trustee shall, upon
receipt of the Posted Collateral, deposit the Posted Collateral into the
Corridor Posted Collateral Account and shall hold, release and disburse such
collateral in accordance with the terms and provisions of the Corridor
Contracts. Where a termination event occurs

                                     -119-

<PAGE>

with respect to the Cap Contract Counterparty under the Corridor Contracts, or
where the Cap Contract Counterparty fulfills certain obligations to the Issuing
Entity such as finding a replacement cap contract counterparty or a guarantor
that meets the criteria described in the Corridor Contracts, the Trustee shall
make payments from the Corridor Posted Collateral Account in accordance with the
provisions of the Corridor Contract. Amounts held in the Corridor Posted
Collateral Account will not be part of the Trust Fund and will not be available
for distribution to any Certificateholders, except to the extent distributed to
the Corridor Contract Account pursuant to the Corridor Contracts. Any funds held
in the Corridor Posted Collateral Account shall be invested by the Trustee in
Eligible Investments in accordance with the instructions of the Cap Contract
Counterparty. Any earnings shall be remitted to the Cap Contract Counterparty in
accordance with the Corridor Contracts. The Trustee shall not be responsible for
any losses. Absent receipt by the Trustee of written instructions from the Cap
Contract Counterparty, such funds shall remain uninvested.

          (l) On the Closing Date, the Supplemental Interest Trust shall be
established and maintained pursuant to this Agreement, as a separate trust, the
corpus of which shall be held by the Supplemental Interest Trust Trustee for the
benefit of the holders of the Certificates as a segregated subtrust of the Trust
Fund. The Supplemental Interest Trust shall be an Eligible Account, and funds
deposited 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 or the Supplemental Interest Trust Trustee held pursuant to this
Agreement. In no event shall any funds deposited in the Supplemental Interest
Trust be credited to or made available to any other account of the Trust Fund.
The records of the Trustee shall at all times reflect that the Supplemental
Interest Trust is a subtrust of the Trust Fund, the assets of which are
segregated from other assets of the Trust Fund.

     The Supplemental Interest Trust Trustee is hereby directed by the Depositor
to execute the Swap Agreement on behalf of the Supplemental Interest Trust in
the forms presented to it by the Depositor and shall have no responsibility for
the contents of such Swap Agreement, including, without limitation, the
representations and warranties contained therein. The Supplemental Interest
Trust Trustee shall have all of the rights and protections of the Trustee
hereunder. The Depositor is hereby directed to make, or cause to be made, the
"additional payment" (as described in the Swap Agreement) on behalf of the
Supplemental Interest Trust.

     The Supplemental Interest Trust Trustee shall enforce all of the rights of
the Supplemental Interest Trust and exercise any remedies under the Swap
Agreement and, in the event the Swap Agreement is terminated as a result of the
designation by either party thereto of an Early Termination Date (as defined in
the Swap Agreement), find a replacement counterparty to enter into a replacement
swap agreement utilizing the amounts of the net Swap Termination Payments
received.

     For each Distribution Date, through and including the Distribution Date in
September 2012, the Supplemental Interest Trust Trustee shall, based on the
Significance Estimate (which shall be provided to the Trustee by the Depositor
within five (5) Business Days prior to the Distribution Date), calculate the
Significance Percentage of each of the Swap Agreement. If on any such
Distribution Date, the Significance Percentage is equal to or greater than 9%,
the Supplemental Interest Trust Trustee shall promptly notify the Depositor and
the Depositor, on behalf of the Supplemental Interest Trust Trustee, shall
obtain the financial information required to be delivered by the Swap
Counterparty pursuant to the terms of the Swap Agreement. If, on any succeeding
Distribution Date through and including the Distribution Date in September 2012,
the Significance Percentage is equal to or greater than 10%, the Supplemental
Interest Trust Trustee shall promptly notify the Depositor and the Depositor
shall, within

                                     -120-

<PAGE>

five (5) Business Days of such Distribution Date, deliver to the Supplemental
Interest Trust Trustee the financial information provided to it by the Swap
Counterparty in a Microsoft Word format (or other word processing format that is
acceptable to the Supplemental Interest Trust Trustee) for inclusion in the Form
10-D relating to such Distribution Date.

     Any Swap Termination Payment received by the Supplemental Interest Trust
Trustee shall be deposited in the Swap Account and shall be used to make any
upfront payment required under a replacement swap agreement and any upfront
payment received from the counterparty to a replacement swap agreement shall be
used to pay any Swap Termination Payment owed to the Swap Counterparty.

     Notwithstanding anything contained herein, in the event that a replacement
swap agreement cannot be obtained within thirty (30) days after receipt by the
Supplemental Interest Trust Trustee of the Swap Termination Payment paid by the
terminated Swap Counterparty, the Supplemental Interest Trust Trustee shall
deposit such Swap Termination Payment into a separate, segregated non-interest
bearing subtrust established by the Supplemental Interest Trust Trustee and the
Supplemental Interest Trust Trustee shall, on each Distribution Date following
receipt of such Swap Termination Payment, withdraw from such subtrust, an amount
equal to the Net Swap Payment, if any, that would have been paid to the
Supplemental Interest Trust by the original Swap Counterparty (computed in
accordance with the original Swap Agreement) and distribute such amount in
accordance with Section 4.04(l)(i)-(viii) of this Agreement. Any such subtrust
shall not be an asset of any REMIC. Any amounts remaining in such subtrust shall
be distributed to the holders of the Class C Certificates on the Distribution
Date following the earlier of (i) the termination of the Trust Fund pursuant to
Section 9.01 and (ii) September 25, 2012.

     On any Distribution Date (or in the case of any Net Swap Payments, on the
related Swap Payment Date), any Swap Termination Payments or Net Swap Payments
owed to the Swap Counterparty will be paid out of and any Net Swap Payments or
Swap Termination Payments received from the Swap Counterparty will be deposited
into the Swap Account (an account within the Supplemental Interest Trust). The
Supplemental Interest Trust will not be an asset of any REMIC. Funds in the Swap
Account within the Supplemental Interest Trust shall be distributed in the
following order of priority by the Trustee:

          (i) to the Swap Counterparty, all Net Swap Payments, if any, owed to
the Swap Counterparty for such Distribution Date;

          (ii) to the Swap Counterparty, any Swap Termination Payment, other
than a Defaulted Swap Termination Payment, if any, owed to the Swap
Counterparty;

          (iii) to each class of the Class A Certificates, on a pro rata basis,
any Current Interest and any Interest Carry Forward Amount with respect to such
class to the extent unpaid;

          (iv) sequentially, to the Class M-1 Certificates, the Class M-2
Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the Class
M-5 Certificates, the Class M-6 Certificates, the Class B-1 Certificates, the
Class B-2 Certificates and the Class B-3 Certificates, in that order, any
Current Interest for such class to the extent unpaid;

          (v) sequentially, to the Class M-1 Certificates, the Class M-2
Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the Class
M-5 Certificates, the Class M-6 Certificates, the

                                     -121-

<PAGE>

Class B-1 Certificates, the Class B-2 Certificates and the Class B-3
Certificates, in that order, any Interest Carry Forward with respect to such
class to the extent unpaid;

          (vi) to the Class A, Class R, Class M and Class B Certificates, to pay
principal as described and in the same manner and order of priority as set forth
in Sections 4.04(d)(iii) through 4.04(d)(xii) in order to restore levels of the
Overcollateralization Amount, and after giving effect to distributions from
Principal Distribution Amount for each such Class;

          (vii) sequentially, to the Class M-1 Certificates, the Class M-2
Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the Class
M-5 Certificates, the Class M-6 Certificates, the Class B-1 Certificates, the
Class B-2 Certificates and the Class B-3 Certificates, in that order, any Unpaid
Realized Loss Amount for such class to the extent unpaid;

          (viii) to the Class A, Class R, Class M and Class B Certificates, on a
pro rata basis, any Floating Rate Certificate Carryover to the extent not paid
based on the amount of such unpaid Floating Rate Certificate Carryover;

          (ix) to the Swap Counterparty, any Defaulted Swap Termination Payment
owed to the Swap Counterparty to the extent not already paid; and

          (x) to the Class C Certificates any remaining amount.

     Notwithstanding the foregoing, however, after giving effect to proposed
distributions on any Distribution Date, the sum of the cumulative amounts
distributed pursuant to clause (vi) above and the cumulative amounts distributed
pursuant to clause (vii) above shall be limited to the aggregate amount of
cumulative Realized Losses incurred from the Cut-off Date through the last day
of the related Prepayment Period.

     Upon termination of the Trust Fund, any amounts remaining in the Swap
Account within the Supplemental Interest Trust shall be distributed pursuant to
the priorities set forth in this Section 4.04(l).

     With respect to the failure of the Swap Counterparty to perform any of its
obligations under the Swap Agreement, the breach by the Swap Counterparty of any
of its representations and warranties made pursuant to the Swap Agreement, or
the termination of the Swap Agreement, the Supplemental Interest Trust Trustee
shall send any notices and make any demands required hereunder (to the extent
that a Responsible Officer of the Trustee has actual knowledge or written notice
of any such failure, breach or termination).

     On the Closing Date, the Swap Counterparty and the Supplemental Interest
Trust Trustee (which is hereby authorized and directed to enter into such credit
support annex) will enter into a credit support annex in relation to the Swap
Agreement, which annex is intended to protect the Supplemental Interest Trust
from certain ratings downgrades that might hinder the ability of the Swap
Counterparty to continue its obligations under the Swap Agreement.

     Pursuant to and in accordance with the terms and provisions of the Swap
Agreement, the Swap Counterparty may be required to post additional collateral
in connection with its obligations under the Swap Agreement. In connection with
the foregoing, on the Closing Date, the Supplemental Interest Trust Trustee
shall establish and maintain a Swap Posted Collateral Account.

                                     -122-

<PAGE>

     To the extent that the Swap Counterparty remits any Posted Collateral to
the Supplemental Interest Trust Trustee under the Swap Agreement, the
Supplemental Interest Trust Trustee shall, upon receipt of the Posted
Collateral, deposit the Posted Collateral into the Swap Posted Collateral
Account and shall hold, release and disburse such collateral in accordance with
the terms and provisions of the Swap Agreement. Where a termination event occurs
with respect to the Swap Counterparty under the Swap Agreement, or where the
Swap Counterparty fulfills certain obligations to the Supplemental Interest
Trust such as finding a replacement swap counterparty or a guarantor that meets
established criteria of the Rating Agencies, the Supplemental Interest Trust
Trustee shall make payments from the Swap Posted Collateral Account in
accordance with the provisions of the Swap Agreement. Amounts held in the Swap
Posted Collateral Account will not be part of the Trust Fund and will not be
available for distribution to any Certificateholders, except to the extent
distributed to the Swap Account pursuant to the Swap Agreement. Any funds held
in the Swap Posted Collateral Account shall be invested by the Trustee in
Eligible Investments in accordance with the instructions of the Swap
Counterparty. Any earnings shall be remitted to the Swap Counterparty in
accordance with the Swap Agreement. The Trustee shall not be responsible for any
losses. Absent receipt by the Trustee of written instructions from the Swap
Counterparty, such funds shall remain uninvested.

     SECTION 4.05. Monthly Statements to Certificateholders

          (a) Not later than each Distribution Date, the Trustee shall prepare
and make available on its website located at www.etrustee.net to each Holder of
a Class of Certificates of the Issuing Entity, the Servicer, the Trustee, the
Rating Agencies, the Depositor, the Cap Contract Counterparty and the Swap
Counterparty a statement setting forth for the Certificates the following
information; provided, however, that with respect to any calendar year during
which an annual report on Form 10-K is not required to be filed with the
Commission on behalf of the Issuing Entity, the information set forth in Items
(xxiv) through (xxxii) below are not required to be included in such statement
during any calendar year:

          (i) the amount of the related distribution to Holders of each Class
allocable to principal, separately identifying (A) the aggregate amount of any
Principal Prepayments included therein, (B) the aggregate of all scheduled
payments of principal included therein, (C) the Extra Principal Distribution
Amount, if any, and (D) the aggregate amount of Prepayment Charges, if any;

          (ii) the amount of such distribution to Holders of each Class
allocable to interest, together with any Non-Supported Interest Shortfalls
allocated to each Class;

          (iii) any Interest Carry Forward Amount for each Class of the Class A,
Class M and Class B Certificates;

          (iv) the Class Certificate Principal Balance of each Class after
giving effect (i) to all distributions allocable to principal on such
Distribution Date and (ii) the allocation of any Applied Realized Loss Amounts
for such Distribution Date;

          (v) the Pool Stated Principal Balance for such Distribution Date;

          (vi) the amount of the Servicing Fee paid to or retained by the
Servicer and any amounts constituting reimbursement or indemnification of the
Servicer or Trustee;

                                     -123-

<PAGE>

          (vii) the Pass-Through Rate for each Class of Certificates for such
Distribution Date;

          (viii) the amount of Advances included in the distribution on such
Distribution Date or reimbursed during the period;

          (ix) the cumulative amount of (A) Realized Losses and (B) Applied
Realized Loss Amounts to date, in the aggregate and with respect to the Group
One Mortgage Loans and Group Two Mortgage Loans;

          (x) the amount of (A) Realized Losses and (B) Applied Realized Loss
Amounts with respect to such Distribution Date, in the aggregate and with
respect to the Group One Mortgage Loans and Group Two Mortgage Loans;

          (xi) the number and aggregate principal amounts of Mortgage Loans (A)
Delinquent (exclusive of Mortgage Loans in foreclosure) (1) 31 to 60 days, (2)
61 to 90 days, (3) 91 or 120 days, (4) 121 to 150 days, (5) 151 to 180 days and
(6) 181 or more days, and (B) in foreclosure and Delinquent (1) 31 to 60 days,
(2) 61 to 90 days, (3) 91 or 120 days, (4) 121 to 150 days, (5) 151 to 180 days
and (6) 181 or more days, in each case as of the close of business on the last
day of the calendar month preceding such Distribution Date, in the aggregate and
with respect to the Group One Mortgage Loans and Group Two Mortgage Loans in
accordance with the OTS methodology for reporting delinquencies;

          (xii) 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 last day of the
calendar month preceding such Distribution Date, in the aggregate and with
respect to the Group One Mortgage Loans and Group Two Mortgage Loans;

          (xiii) the total number and principal balance of any REO Properties as
of the close of business on the last day of the calendar month preceding such
Distribution Date, in the aggregate and with respect to the Group One Mortgage
Loans and Group Two Mortgage Loans;

          (xiv) the aggregate Stated Principal Balance of all loans that became
Liquidated Loans as of such Distribution Date calculated as of the preceding
Distribution Date, in the aggregate and with respect to the Group One Mortgage
Loans and Group Two Mortgage Loans;

          (xv) whether a Stepdown Trigger Event has occurred and is in effect;

          (xvi) with respect to each Class of Certificates, any Interest Carry
Forward Amount with respect to such Distribution Date for each such Class, any
Interest Carry Forward Amount paid for each such Class and any remaining
Interest Carry Forward Amount for each such Class;

          (xvii) the number and Stated Principal Balance (as of the preceding
Distribution Date) of any Mortgage Loans which were purchased or repurchased
during the preceding Prepayment Period and since the Cut-off Date;

          (xviii) the number of Mortgage Loans prepaid in full for which
Prepayment Charges were received during the related Prepayment Period and, for
each such Mortgage Loan, the amount of Prepayment Charges received during the
related Prepayment Period and in the aggregate of such amounts

                                     -124-

<PAGE>

for all such Mortgage Loans since the Cut-off Date, and for partial Principal
Prepayments, the amount received during the preceding calendar month;

          (xix) the amount and purpose of any withdrawal from the Collection
Account pursuant to Section 3.08(a)(viii);

          (xx) the amount of any payments to each Class of Certificates that are
treated as payments received in respect of a REMIC "regular interest" or REMIC
"residual interest" and the amount of any payments to each Class of Certificates
that are not treated as payments received in respect of a REMIC "regular
interest" or REMIC "residual interest";

          (xxi) as of each Distribution Date, the amount, if any, to be
deposited in the Issuing Entity pursuant to the related Corridor Contract as
described in Section 4.04(k) and the amount thereof to be paid to the Class 1-A
Certificates, the Class 2-A Certificates, the Subordinate Certificates and the
Class C Certificates described in Section 4.04(k) hereof;

          (xxii) as of each Distribution Date, the amount, if any, to be
deposited in the Supplemental Interest Trust pursuant to the Swap Agreement as
described in Section 4.04(l) and the amount thereof to be paid to the
Certificates;

          (xxiii) any Floating Rate Certificate Carryover paid and all Floating
Rate Certificate Carryover remaining on each class of the Class A, Class M and
Class B Certificates on such Distribution Date;

          (xxiv) the number of Mortgage Loans with respect to which (i) a
reduction in the Mortgage Rate has occurred or (ii) the related borrower's
obligation to repay interest on a monthly basis has been suspended or reduced
pursuant to the Relief Act; and the amount of interest not required to be paid
with respect to any such Mortgage Loans during the related Due Period as a
result of such reductions in the aggregate and with respect to the Group One
Mortgage Loans and the Group Two Mortgage Loans;

          (xxv) with respect to each Class of Certificates, the amount of any
Non-Supported Interest Shortfalls on such Distribution Date;

          (xxvi) the number and amount of pool assets at the beginning and
ending of each period, and updated pool composition information;

          (xxvii) any material changes to methodology regarding calculations of
delinquencies and charge-offs;

          (xxviii) information on the amount of Servicing Advances made or
reimbursed during the period;

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

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

                                     -125-

<PAGE>

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

          (xxxii) information regarding any pool asset changes (other than in
connection with a pool asset converting into cash in accordance with its terms),
such as pool asset substitutions and repurchases (and purchase rates, if
applicable), and cash flows available for future purchases, such as the balances
of any prefunding or revolving accounts, if applicable.

          (b) The Trustee will make the Monthly Statement (and, at its option,
any additional files containing the same information in an alternative format)
available each month to Certificateholders, other parties to this Agreement and
any other interested parties via the Trustee's Internet website. The Trustee's
Internet website shall initially be located at "www.etrustee.net". Assistance in
using the website can be obtained by calling the Trustee at (312) 904-0351.
Parties that are unable to use the website are entitled to have a paper copy
mailed to them via first class mail by calling the above-referenced telephone
number and indicating such. The Trustee shall have the right to change the way
the monthly statements to Certificateholders are distributed in order to make
such distribution more convenient and/or more accessible to the above parties
and the Trustee shall provide timely and adequate notification to all above
parties regarding any such changes.

     The foregoing information and reports shall be prepared and determined by
the Trustee based on Mortgage Loan data and other information provided to the
Trustee by the Servicer, the Swap Counterparty, the Cap Contract Counterparty or
any other third party required to deliver information hereunder. In preparing or
furnishing the foregoing information, the Trustee shall be entitled to rely
conclusively on the accuracy of the information or data provided to the Trustee
by the Servicer, the Swap Counterparty, the Cap Contract Counterparty or any
other third party required to deliver information and shall have no liability
for any errors in any such information.

     As a condition to access the Trustee's internet website, the Trustee may
require registration and the acceptance of a disclaimer. The Trustee will not be
liable for the dissemination of information in accordance with this Agreement.

          (c) If so requested in writing within a reasonable period of time
after the end of each calendar year, the Trustee shall make available on its
website or cause to be furnished to each Person who at any time during the
calendar year was a Certificateholder of record, a statement containing the
information set forth in clauses (a)(i) and (a)(ii) of this Section 4.05
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 are from time to time in effect.

          (d) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class R Certificate each Form 1066Q and shall
respond promptly to written requests made not more frequently than quarterly by
any Holder of Class R Certificate with respect to the following matters:

          (i) The original projected principal and interest cash flows on the
Closing Date on each Class of regular and residual interests created hereunder
and on the Mortgage Loans, based on the Prepayment Assumption;

                                     -126-

<PAGE>

          (ii) The projected remaining principal and interest cash flows as of
the end of any calendar quarter with respect to each Class of regular and
residual interests created hereunder and the Mortgage Loans, based on the
Prepayment Assumption;

          (iii) The Prepayment Assumption and any interest rate assumptions used
in determining the projected principal and interest cash flows described above;

          (iv) The original issue discount (or, in the case of the Mortgage
Loans, market discount) or premium accrued or amortized through the end of such
calendar quarter with respect to each Class of regular or residual interests
created hereunder and to the Mortgage Loans, together with each constant yield
to maturity used in computing the same;

          (v) The treatment of losses realized with respect to the Mortgage
Loans or the regular interests created hereunder, including the timing and
amount of any cancellation of indebtedness income of the REMICs with respect to
such regular interests or bad debt deductions claimed with respect to the
Mortgage Loans;

          (vi) The amount and timing of any non-interest expenses of the REMICs;
and

          (vii) Any taxes (including penalties and interest) imposed on the
REMICs, including, without limitation, taxes on "prohibited transactions,"
"contributions" or "net income from foreclosure property" or state or local
income or franchise taxes.

     The information pursuant to clauses (i), (ii), (iii) and (iv) above shall
be provided by the Depositor pursuant to Section 8.12.

                                   ARTICLE V

                                THE CERTIFICATES

     SECTION 5.01. The Certificates

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

<TABLE>
<CAPTION>
           Minimum     Integral Multiples in   Original Certificate
Class   Denomination     Excess of Minimum       Principal Balance
-----   ------------   ---------------------   --------------------
<S>     <C>            <C>                     <C>
1-A      $25,000.00            $1.00                $241,175,000
2-A1     $25,000.00            $1.00                $137,625,000
2-A2     $25,000.00            $1.00                $153,232,000
2-A3     $25,000.00            $1.00                $ 39,893,000
M-1      $25,000.00            $1.00                $ 33,806,000
M-2      $25,000.00            $1.00                $ 29,829,000
M-3      $25,000.00            $1.00                $ 17,898,000
M-4      $25,000.00            $1.00                $ 16,704,000
</TABLE>

                                     -127-

<PAGE>

<TABLE>
<CAPTION>
           Minimum     Integral Multiples in   Original Certificate
Class   Denomination     Excess of Minimum       Principal Balance
-----   ------------   ---------------------   --------------------
<S>     <C>            <C>                     <C>

M-5      $25,000.00            $1.00                $ 15,909,000
M-6      $25,000.00            $1.00                $ 15,511,000
B-1      $25,000.00            $1.00                $ 15,114,000
B-2      $25,000.00            $1.00                $ 13,522,000
B-3      $25,000.00            $1.00                $  9,147,000
R        $   100.00              N/A                $     100.00
C                (1)              (1)                        100%
P                (2)              (2)                         (2)
</TABLE>

----------
(1)  The Class C Certificates shall not have minimum dollar denominations as the
     Certificate Principal Balance thereof shall vary over time as described
     herein and shall be issued in a minimum percentage interest of 25% and an
     aggregate percentage interest of 100%.

(2)  The Class P Certificates shall not have minimum dollar denominations or
     Certificate Principal Balances and shall be issued in a minimum percentage
     interest of 100%.

     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 Issuing Entity, notwithstanding that such individuals or any of them have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such authentication and
delivery. No Certificate shall be entitled to any benefit under this Agreement,
or be valid for any purpose, unless there appears on such Certificate a
certificate of authentication substantially in the form set forth as attached
hereto executed by the Authenticating Agent by manual signature, and such
certificate of authentication upon any Certificate shall be conclusive evidence,
and the only evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their
authentication. On the Closing Date, the Authenticating Agent shall authenticate
the Certificates to be issued at the written direction of the Depositor, or any
Affiliate thereof.

     The Certificates sold in offshore transactions in reliance on Regulation S
shall be issued initially in the form of one or more permanent global
certificates in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibit A hereto added to the form of each
such Certificate (each, a "Regulation S Book-Entry Certificate"), which shall be
deposited on behalf of the Holders of such Certificates represented thereby with
the Trustee, as custodian for DTC and registered in the name of a nominee of
DTC, duly executed and authenticated by the Trustee and the Authenticating Agent
as hereinafter provided. The aggregate principal amounts of the Regulation S
Book-Entry Certificates may from time to time be increased or decreased by
adjustments made on the records of the Trustee or DTC or its nominee, as the
case may be, as hereinafter provided.

     The Certificates sold in reliance on Rule 144A shall be issued initially in
the form of one or more permanent global certificates in definitive, fully
registered form without interest coupons with the applicable legends set forth
in Exhibit A hereto added to the form of each such Certificate (each, a "Rule
144A Book-Entry Certificate"), which shall be deposited on behalf of the Holders
of such Certificates represented thereby with the Trustee, as custodian for DTC
and registered in the name of a nominee of DTC, duly executed and authenticated
by the Trustee and the Authenticating Agent as hereinafter provided. The
aggregate principal amounts of the Rule 144A Book-Entry Certificates may from
time to

                                     -128-

<PAGE>

time be increased or decreased by adjustments made on the records of the
Trustee or DTC or its nominee, as the case may be, as hereinafter provided.

     SECTION 5.02. 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 5.09 hereof, a Certificate Register
for the Issuing Entity 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 Authenticating Agent shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Certificates of the same Class and of like 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 and the Authenticating
Agent shall authenticate and deliver the Certificates that 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. All
Certificates surrendered for registration of Transfer or exchange shall be
canceled and subsequently destroyed by a Trustee in accordance with such
Trustee's customary procedures.

     No Transfer of a Class C or Class P 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 the Securities 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, the Certificateholder desiring to effect such
Transfer and such Certificateholder's prospective transferee shall (except with
respect to the initial transfer of a Class C or Class P Certificate by Merrill
Lynch & Co. or, in connection with a transfer of a Class C or Class P
Certificate to the indenture trustee under an Indenture pursuant to which NIM
Notes are issued whether or not such notes are guaranteed by the NIMs Insurer)
each certify to the Trustee in writing the facts surrounding the Transfer in
substantially the form set forth in Exhibit F (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either Exhibit G (the
"Investment Letter") or Exhibit H (the "Rule 144A Letter") or (ii) there shall
be delivered to the Trustee an Opinion of Counsel that such Transfer may be made
pursuant to an exemption from the Securities Act, which Opinion of Counsel shall
not be an expense of the Depositor or the Trustee. The Depositor shall provide
to any Holder of a Class C or Class P 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 shall
cooperate with the Depositor in providing the Rule 144A information referenced
in the preceding sentence, including providing to the

                                     -129-

<PAGE>

Depositor such information in the possession of the Trustee 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 Class C or Class P Certificate desiring to
effect such Transfer shall, and does hereby agree to, indemnify the Depositor
and the Trustee 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.

     By acceptance of a Regulation S Global Security, whether upon original
issuance or subsequent transfer, each Holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth thereon and
agrees that it will only transfer such a Certificate as provided herein. In
addition, each Holder of a Regulation S Global Security shall be deemed to have
represented and warranted to the Depositor, the Trustee and any of their
respective successors that: (i) such Person is not a "U.S. person" within the
meaning of Regulation S and was, at the time the buy order was originated,
outside the United States and (ii) such Person understands that such
Certificates have not been registered under the Securities Act and that (x)
until the expiration of the 40-day distribution compliance period (within the
meaning of Regulation S), no offer, sale, pledge or other transfer of such
Certificates or any interest therein shall be made in the United States or to or
for the account or benefit of a U.S. person (each as defined in Regulation S),
(y) if in the future it decides to offer, resell, pledge or otherwise transfer
such Certificates, such Certificates may be offered, resold, pledged or
otherwise transferred only (A) to a person which the seller reasonably believes
is a "qualified institutional buyer" as defined in Rule 144A under the
Securities Act, that is purchasing such Certificates for its own account or for
the account of a qualified institutional buyer to which notice is given that the
transfer is being made in reliance on Rule 144A or (B) in an offshore
transaction (as defined in Regulation S) in compliance with the provisions of
Regulation S, in each case in compliance with the requirements of this
Agreement; and it will notify such transferee of the transfer restrictions
specified in this Section.

     No transfer of a Certificate that is neither an ERISA Restricted
Certificate nor a Class R Certificate shall be registered unless the transferee
provides the Trustee with a representation that either (i) such transferee is
not, and is not acting for, on behalf of or with any assets of, an employee
benefit plan or other arrangement subject to Title I of ERISA or plan subject to
Section 4975 of the Code, or (ii) until the termination of the Swap Agreement,
the acquisition and holding of the Certificate will not constitute or result in
a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of
the Code.

     No transfer of an ERISA Restricted Certificate or a Class R Certificate
shall be registered unless the Trustee has received (A) a representation to the
effect that such transferee is not an employee benefit plan subject to Title I
of ERISA, a plan subject to Section 4975 of the Code or a plan subject to any
state, local, federal, non-U.S. or other law substantively similar to the
foregoing provisions of ERISA or the Code ("Similar Law"), and is not directly
or indirectly acquiring the ERISA Restricted Certificate or the Class R
Certificate by, on behalf of, or with any assets of any such plan (collectively,
"Plan"), or (B) solely in the case of ERISA Restricted Certificates, (I) if the
Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation to the effect that such transferee is an insurance company that
is acquiring the Certificate with assets of an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60, or (II) solely in the case of
an ERISA Restricted Certificate that is a Definitive Certificate, an Opinion of
Counsel satisfactory to the Trustee, and upon which the Trustee and the NIMs
Insurer shall be entitled to rely, to the effect that the acquisition and
holding of such Certificate will not constitute or result in a nonexempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code, or a
violation of

                                     -130-

<PAGE>

Similar Law, and will not subject the Trustee, the Servicer, the NIMs Insurer or
the Depositor to any obligation in addition to those expressly undertaken in
this Agreement, which Opinion of Counsel shall not be an expense of the Trustee,
the Servicer, the NIMs Insurer or the Depositor.

     Except in the case of a Definitive Certificate, the representations set
forth in the two immediately preceding paragraphs of this Subsection 5.02(a),
other than clause (B)(II) in the immediately preceding paragraph, shall be
deemed to have been made to the Trustee by the transferee's acceptance of a
Certificate (or the acceptance by a Certificate Owner of the beneficial interest
in any Class of Certificate).

     Notwithstanding any other provision herein to the contrary, any purported
transfer of a Certificate to or on behalf of a Plan without the delivery to the
Trustee of a representation or an Opinion of Counsel satisfactory to the Trustee
as described above shall be void and of no effect. The Trustee shall not be
under any liability to any Person for any registration or transfer of any
Certificate that is in fact not permitted by this Section 5.02(a), nor shall the
Trustee be under any liability for making any payments due on such Certificate
to the Holder thereof or taking any other action with respect to such Holder
under the provisions of this Agreement so long as the transfer was registered by
the Trustee in accordance with the foregoing requirements. The Trustee shall be
entitled, but not obligated, to recover from any Holder of any Certificate that
was in fact a Plan and that held such Certificate in violation of this Section
5.02(a) all payments made on such Certificate at and after the time it commenced
such holding. Any such payments so recovered shall be paid and delivered to the
last preceding Holder of such Certificate that is not a Plan.

          (b) Each Person who has or who acquires any Ownership Interest in a
Class R 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 Class R
Certificate are expressly subject to the following provisions:

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

          (ii) No Ownership Interest in a Class R Certificate may be purchased,
transferred or sold, directly or indirectly, except in accordance with the
provisions hereof. No Ownership Interest in a Class R Certificate may be
registered on the Closing Date or thereafter transferred, and the Trustee shall
not register the Transfer of any Class R Certificate unless, in addition to the
certificates required to be delivered to the Trustee under subparagraph (a)
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 E-1 and an affidavit of the proposed transferor in the form
attached hereto as Exhibit E-2. In the absence of a contrary instruction from
the transferor of a Class R Certificate, declaration (11) in Appendix A of the
Transfer Affidavit may be left blank. If the transferor requests by written
notice to the Trustee prior to the date of the proposed transfer that one of the
two other forms of declaration (11) in Appendix A of the Transfer Affidavit be
used, then the requirements of this Section 5.02(b)(ii) shall not have been
satisfied unless the Transfer Affidavit includes such other form of declaration.

          (iii) Each Person holding or acquiring any Ownership Interest in a
Class R Certificate shall agree (A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its Ownership Interest in
a Class R 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

                                     -131-

<PAGE>

Class R Certificate and (C) not to Transfer its Ownership Interest in a Class R
Certificate or to cause the Transfer of an Ownership Interest in a Class R
Certificate to any other Person if it has actual knowledge that such Person is
not a Permitted Transferee. Further, no transfer, sale or other disposition of
any Ownership Interest in a Class R Certificate may be made to a person who is
not a U.S. Person (within the meaning of section 7701 of the Code) unless such
person furnishes the transferor and the Trustee with a duly completed and
effective Internal Revenue Service Form W-8ECI (or any successor thereto) and
the Trustee consents to such transfer, sale or other disposition in writing.

          (iv) Any attempted or purported Transfer of any Ownership Interest in
a Class R Certificate in violation of the provisions of this Section 5.02(b)
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 Class R
Certificate in violation of the provisions of this Section 5.02(b), 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 Class R
Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Class R Certificate that is in fact not permitted
by Section 5.02(a) and this Section 5.02(b) or for making any payments due on
such Certificate to the Holder thereof or taking any other action with respect
to such Holder under the provisions of this Agreement so long as the Transfer
was registered after receipt of the related Transfer Affidavit. The Trustee
shall be entitled but not obligated to recover from any Holder of a Class R
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 Class R 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) At the option of the Holder of the Class R Certificate, the Class
SWR Interest, the Class LTR Interest and the residual interest in the Upper Tier
REMIC may be severed and represented by separate certificates (with the separate
certificate that represents the Residual Interest also representing all rights
of the Class R Certificate to distributions attributable to an interest rate on
the Class R Certificate in excess of the REMIC Pass-Through Rate); provided,
however, that such separate certification may not occur until the Trustee
receives an Opinion of Counsel to the effect that separate certification in the
form and manner proposed would not result in the imposition of federal tax upon
the Issuing Entity or any of the REMICs provided for herein or cause any of the
REMICs provided for herein to fail to qualify as a REMIC; and provided further,
that the provisions of Sections 5.02(a) and (b) will apply to each such separate
certificate as if the separate certificate were a Class R Certificate. If, as
evidenced by an Opinion of Counsel, it is necessary to preserve the REMIC status
of any of the REMICs provided for herein, the Class SWR Interest, the Class LTR
Interest and the residual interest in the Upper Tier REMIC shall be severed and
represented by separate certificates (with the separate certificate that
represents the Residual Interest also representing all rights of the Class R
Certificate to distributions attributable to an interest rate on the Class R
Certificate in excess of the REMIC Pass-Through Rate).

     The restrictions on Transfers of a Class R Certificate set forth in this
Section 5.02(b) shall cease to apply (and the applicable portions of the legend
on a Class R 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 Issuing Entity, the Trustee or the Depositor, to
the effect that the elimination of such restrictions will not cause any of the
REMICs provided for herein 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
Issuing Entity, any REMIC provided for herein, a Certificateholder or another
Person. Each Person holding or acquiring any Ownership Interest in a Class R
Certificate hereby consents to any amendment

                                     -132-

<PAGE>

of this Agreement that, based on an Opinion of Counsel furnished to the Trustee,
is reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Class R 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 Class R Certificate that is held by a
Person that is not a Permitted Transferee to a Holder that is a Permitted
Transferee.

          (c) The transferor of the Class R Certificate shall notify the Trustee
in writing upon the transfer of the Class R Certificate.

          (d) [Reserved].

          (e) The preparation and delivery of all certificates, opinions and
other writings referred to above in this Section 5.02 shall not be an expense of
the Issuing Entity, the Depositor or the Trustee.

     SECTION 5.03. 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 of the ownership thereof and (b) there is delivered to
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, authenticate 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 5.03, the Trustee may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of
the Trustee and its counsel) connected therewith. Any replacement Certificate
issued pursuant to this Section 5.03 shall constitute complete and indefeasible
evidence of ownership in the Trust Fund, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time. All
Certificates surrendered to the Trustee under the terms of this Section 5.03
shall be canceled and destroyed by the Trustee in accordance with its standard
procedures without liability on its part.

     SECTION 5.04. Persons Deemed Owners

     The NIMs Insurer, the Trustee and any agent of the NIMs Insurer 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 NIMs
Insurer nor the Trustee, nor any agent of the NIMs Insurer or the Trustee, shall
be affected by any notice to the contrary.

     SECTION 5.05. Access to List of Certificateholders' Names and Addresses

     If three or more Certificateholders (a) request such information in writing
from the Trustee, (b) state that such Certificateholders 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 that such
Certificateholders propose to transmit or if the NIMs Insurer or the Depositor
shall request such information in writing from the Trustee, then the Trustee
shall, within ten (10) Business Days after the receipt of such request, provide
the NIMs Insurer or the Depositor or such Certificateholders at such

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<PAGE>

recipients' expense the most recent list of the Certificateholders of the
Issuing Entity held by the Trustee, if any. The Depositor and every
Certificateholder, 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.

     SECTION 5.06. Book-Entry Certificates

     The Regular Certificates, upon original issuance, shall be issued in the
form of one or more typewritten Certificates representing the Book-Entry
Certificates, to be delivered to the Depository by or on behalf of the
Depositor. The Class C, Class P and Class R Certificates shall be definitive
certificates. The Book-Entry Certificates shall initially be registered on the
Certificate Register in the name of the Depository or its nominee, and no
Certificate Owner of a Book-Entry Certificate will receive a definitive
certificate representing such Certificate Owner's interest in such Certificates,
except as provided in Section 5.08. Unless and until definitive, fully
registered Certificates ("Definitive Certificates") have been issued to the
Certificate Owners of the Book-Entry Certificates pursuant to Section 5.08:

          (a) the provisions of this Section shall be in full force and effect;

          (b) the Depositor, the NIMs Insurer and the Trustee may deal with the
Depository and the Depository Participants for all purposes (including the
making of distributions) as the authorized representative of the respective
Certificate Owners of the Book-Entry Certificates;

          (c) registration of the Book-Entry Certificates may not be transferred
by the Trustee except to another Depository;

          (d) the rights of the respective Certificate Owners of the Book-Entry
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to those established by law and agreements
between the Owners of the Book-Entry Certificates and the Depository and/or the
Depository Participants. Pursuant to the Depository Agreement, unless and until
Definitive Certificates are issued pursuant to Section 5.08, the Depository will
make book-entry transfers among the Depository Participants and receive and
transmit distributions of principal and interest on the related Certificates to
such Depository Participants;

          (e) the Depository may collect its usual and customary fees, charges
and expenses from its Depository Participants;

          (f) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants; and

          (g) to the extent that the provisions of this Section conflict with
any other provisions of this Agreement, the provisions of this Section shall
control.

     For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Certificateholders
evidencing a specified percentage of the aggregate unpaid principal amount of
any Class of Certificates, such direction or consent may be given by Certificate
Owners (acting through the Depository and the Depository Participants) owning
Book-Entry Certificates evidencing the requisite percentage of principal amount
of such Class of Certificates.

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<PAGE>

     In the event that Definitive Certificates are issued pursuant to Section
5.08, clauses (a) through (g) of this Section 5.06 shall continue to be
applicable with respect to all remaining Book-Entry Certificates.

     SECTION 5.07. Notices to Depository

     Whenever any notice or other communication is required to be given to
Certificateholders of the Class with respect to which Book-Entry Certificates
have been issued, unless and until Definitive Certificates shall have been
issued to the related Certificate Owners, the Trustee shall give all such
notices and communications to the Depository.

     SECTION 5.08. Definitive Certificates

     If, after Book-Entry Certificates have been issued with respect to any
Certificates, (a) the Depository or the Depositor advises the Trustee that the
Depository is no longer willing, qualified or able to discharge properly its
responsibilities under the Depository Agreement with respect to such
Certificates and the Trustee or the Depositor is unable to locate a qualified
successor, (b) the Depositor notifies the Trustee and the Depository of its
intent to terminate the book-entry system through the Depository and, upon
receipt of notice of such intent from the Depository, the Certificate Owners of
the Book-Entry Certificates agree to initiate such termination or (c) after the
occurrence and continuation of an Event of Default, Certificate Owners of such
Book-Entry Certificates having not less than 51% of the Voting Rights evidenced
by any Class of Book-Entry Certificates advise the Trustee and the Depository in
writing through the Depository Participants that the continuation of a
book-entry system with respect to Certificates of such Class through the
Depository (or its successor) is no longer in the best interests of the
Certificate Owners of such Class, then the Trustee shall notify all Certificate
Owners of such Book-Entry Certificates and the NIMs Insurer of the occurrence of
any such event and of the availability of Definitive Certificates to Certificate
Owners of such Class requesting the same. The Depositor shall provide the
Trustee with an adequate inventory of certificates to facilitate the issuance
and transfer of Definitive Certificates. Upon surrender to the Trustee of any
such Certificates by the Depository, accompanied by registration instructions
from the Depository for registration, the Authenticating Agent shall
authenticate and the Trustee shall deliver such Definitive Certificates. Neither
the Depositor nor the Trustee shall be liable for any delay in delivery of such
instructions and each may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of such 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 such Definitive
Certificates as Certificateholders hereunder.

     SECTION 5.09. 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 where Certificates may be surrendered
for registration of transfer or exchange. The Trustee initially designates its
offices at 135 South LaSalle Street, Suite 1511, Chicago, Illinois 60603,
Attention: FFMER 2007-5 as offices 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.

     SECTION 5.10. Authenticating Agents

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<PAGE>

          (a) One or more Authenticating Agents (each, an "Authenticating
Agent") may be appointed hereunder each of which shall be authorized to act on
behalf of the Trustee in authenticating the Certificates. Wherever reference is
made in this Agreement to the authentication of Certificates by the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by an Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent must be an entity organized and
doing business under the laws of the United States of America or any state
thereof, having a combined capital and surplus of at least $15,000,000,
authorized under such laws to operate a trust business and subject to
supervision or examination by federal or state authorities. If the
Authenticating Agent is a party other than the Trustee, the Trustee shall have
no liability in connection with the performance or failure of performance of the
Authenticating Agent. LaSalle Bank National Association is hereby appointed as
the initial Authenticating Agent. The Trustee shall be the Authenticating Agent
during any such time as no other Authenticating Agent has been appointed and has
not resigned.

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

          (c) Any Authenticating Agent may at any time resign by giving at least
30 days' advance written notice of resignation to the Trustee and the Depositor.
Except with respect to the initial Authenticating Agent, LaSalle Bank National
Association, which shall be the Authenticating Agent for so long as it is the
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Depositor. Upon receiving a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance within the provisions of this Section 5.10, the Trustee may appoint a
successor Authenticating Agent, shall give written notice of such appointment to
the Depositor and shall mail notice of such appointment to all Holders of
Certificates. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section 5.10. No
Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee.

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

     SECTION 6.01. Respective Liabilities of the Depositor and the Servicer

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

     SECTION 6.02. Merger or Consolidation of the Depositor or the Servicer

     Except as provided in the next paragraph, the Depositor and the Servicer
will each keep in full effect its existence, rights and franchises as a
corporation or banking association under the laws of the

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<PAGE>

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 Servicer may be merged or
consolidated, or any Person resulting from any merger or consolidation to which
the Depositor or the Servicer shall be a party, or any Person succeeding to the
business of the Depositor or the Servicer, shall be the successor of the
Depositor or the Servicer, 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 (except for the
execution of an assumption agreement where such succession is not effected by
operation of law); provided, however, that the successor or surviving Person to
the Servicer shall be qualified to sell mortgage loans to, and to service
mortgage loans on behalf of, Fannie Mae or Freddie Mac.

     SECTION 6.03. Limitation on Liability of the Depositor, the Servicer and
Others

     None of the Depositor, the Servicer nor any of the directors, officers,
employees or agents of the Depositor or the Servicer shall be under any
liability to the Issuing Entity or the Certificateholders for any action taken
or for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor, the Servicer or any such Person against any
breach of representations or warranties made by it herein or protect the
Depositor, the Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
in the performance of duties or by reason of reckless disregard of obligations
and duties hereunder. The Depositor or the Servicer and any director, officer,
employee or agent of the Depositor or the 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 or the Servicer and any
director, officer, employee or agent of the Depositor or the Servicer shall be
indemnified by the Issuing Entity and held harmless against any loss, liability
or expense, incurred in connection with the performance of their duties under
this Agreement or 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 (i) incurred by reason of willful misfeasance, bad faith or
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder or (ii) which does not constitute
an "unanticipated expense" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii). Neither the Depositor nor the 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 that in its opinion may
involve it in any expense or liability; provided, however, that either of the
Depositor or the Servicer in its discretion may 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 the 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 Issuing Entity, and the Depositor and the Servicer shall be
entitled to be reimbursed therefor out of the Collection Account as provided by
Section 3.08 hereof.

     Notwithstanding anything herein to the contrary, in preparing or furnishing
any reports or certifications pursuant to this Agreement, the Servicer shall be
entitled to rely conclusively on the accuracy of the information or data
provided to it by any other party to the Agreement and shall have no liability
for any errors therein.

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<PAGE>

     SECTION 6.04. Limitation on Resignation of Servicer

     Subject to the provisions of Section 7.01, the second paragraph of Section
7.02, the second paragraph of Section 6.02 and the following paragraph of this
Section 6.04, the Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee and the NIMs Insurer. No such resignation shall
become effective until the Trustee or a successor servicer reasonably acceptable
to the Trustee and the NIMs Insurer is appointed and has assumed the Servicer's
responsibilities, duties, liabilities and obligations hereunder. Any such
resignation shall not relieve the Servicer of any of the obligations specified
in Section 7.01 and 7.02 as obligations that survive the resignation or
termination of the Servicer.

     Notwithstanding anything to the contrary in the previous paragraph of this
Section 6.04, the Trustee, the Depositor and the NIMs Insurer hereby
specifically (i) consent to the pledge and assignment by the Servicer of all the
Servicer's right, title and interest in, to and under this Agreement to the
Servicing Rights Pledgee, if any, for the benefit of certain lenders, and (ii)
agree that upon delivery to the Trustee by the Servicing Rights Pledgee of a
letter signed by the Servicer whereby the Servicer shall resign as Servicer
under this Agreement, notwithstanding anything to the contrary which may be set
forth in Section 3.04 above, the Trustee shall appoint the Servicing Rights
Pledgee or its designee as successor servicer, provided that the Servicer's
resignation will not be effective unless, at the time of such appointment, the
Servicing Rights Pledgee or its designee (i) meets the requirements of a
successor servicer under Section 7.02 of this Agreement (including being
acceptable to the Rating Agencies), provided, that the consent and approval of
the Trustee and the Depositor shall be deemed to have been given to the
Servicing Rights Pledgee or its designee, and the Servicing Rights Pledgee and
its designee are hereby agreed to be acceptable to the Trustee and the Depositor
and (ii) agrees to be subject to the terms of this Agreement. If, pursuant to
any provision hereof, the duties of the Servicer are transferred to a successor
servicer, the entire amount of the Servicing Fee and other compensation payable
to the Servicer pursuant hereto shall thereafter be payable to such successor
servicer.

     SECTION 6.05. Errors and Omissions Insurance; Fidelity Bonds

     The Servicer shall, for so long as it acts as 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 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 Fannie Mae or Freddie Mac for Persons
performing servicing for mortgage loans purchased by Fannie Mae or Freddie Mac.
The Servicer shall provide the Trustee, upon request and reasonable notice, with
copies of such policies and fidelity bond or a certification from the insurance
provider evidencing such policies and fidelity bond. The Servicer may be deemed
to have complied with this provision if an Affiliate of the Servicer has such
errors and omissions and fidelity bond coverage and, by the terms of such
insurance policy or fidelity bond, the coverage afforded thereunder extends to
the Servicer. In the event that any such policy or bond ceases to be in effect,
the Servicer shall use its reasonable best efforts to 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. Any such policy or fidelity
bond shall by its terms not be cancelable without thirty days' prior written
notice to the Trustee.

                                     -138-

<PAGE>

                                  ARTICLE VII

                        DEFAULT; TERMINATION OF SERVICER

     SECTION 7.01. Events of Default

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

          (i) any failure by the Servicer to make any Advance, to deposit in the
Collection Account or the Certificate Account or remit to the Trustee any
payment (excluding a payment required to be made under Section 4.01 hereof)
required to be made under the terms of this Agreement, which failure shall
continue unremedied for three (3) Business Days and, with respect to a payment
required to be made under Section 4.01 hereof, for one (1) Business Day, after
the date on which written notice of such failure shall have been given to the
Servicer by the Trustee or the Depositor, or to the Trustee, the Depositor and
the Servicer by the NIMs Insurer or the Holders of Certificates evidencing
greater than 50% of the Voting Rights evidenced by the Certificates; or

          (ii) any failure by the Servicer to observe or perform in any material
respect any other of the covenants or agreements on the part of the Servicer
contained in this Agreement or any representation or warranty shall prove to be
untrue, which failure or breach shall continue unremedied for a period of sixty
(60) days after the date on which written notice of such failure shall have been
given to the Servicer, the Trustee and the Depositor by the Trustee or the
Depositor, or to the Servicer, the Trustee and the Depositor by the Holders of
Certificates evidencing greater than 50% of the Voting Rights evidenced by the
Certificates; or

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

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

          (v) admission by the Servicer in writing of 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

          (vi) any failure by the Servicer to duly perform, within the required
time period, its obligations under Sections 3.17, 3.18 and 3.20 of this
Agreement, which failure continues unremedied for a period of ten (10) days
after the date on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Servicer by the Trustee or any other
party to this Agreement.

     If an Event of Default, described in (i) - (v) above, shall occur with
respect to the Servicer, then, and in each and every such case, so long as such
Event of Default shall not have been remedied within the applicable grace
period, the Trustee may, or at the direction of the NIMs Insurer or the Holders
of

                                     -139-

<PAGE>

Certificates evidencing greater than 50% of the Voting Rights evidenced by the
Certificates (with the written consent of the NIMs Insurer (such consent shall
not be unreasonably withheld), except after a NIMs Insurer Default), shall, by
notice in writing to the Servicer (with a copy to each Rating Agency), terminate
all of the rights and obligations of the Servicer under this Agreement and in
and to the related Mortgage Loans and the proceeds thereof, other than its
rights as a Certificateholder hereunder. If an Event of Default, described in
(vi) above, shall occur with respect to the Servicer, then, and in each and
every such case, so long as such Event of Default shall not have been remedied
within the applicable grace period, the Trustee, at the direction of the
Depositor or at the direction of the Holders of Certificates evidencing greater
than 50% of the Voting Rights evidenced by the Certificates, shall, by notice in
writing to the Servicer (with a copy to each Rating Agency), terminate all of
the rights and obligations of the Servicer under this Agreement and in and to
the related Mortgage Loans and the proceeds thereof, other than its rights as a
Certificateholder hereunder. On or after the receipt by the Servicer of such
written notice, all authority and power of the Servicer hereunder, whether with
respect to the related Mortgage Loans or otherwise, shall pass to and be vested
in the Trustee. To the extent the Event of Default resulted from the failure of
the Servicer to make a required Advance, the Trustee shall thereupon make any
Advance described in Section 4.01 hereof subject to Section 3.04 hereof. The
Trustee is hereby authorized and empowered to execute and deliver, on behalf of
the 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 Servicer to pay
amounts owed pursuant to Article VIII. The Servicer agrees to cooperate with the
Trustee in effecting the termination of the 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 Collection Account,
or thereafter be received with respect to the Mortgage Loans. The Servicer and
the Trustee shall promptly notify the Rating Agencies, the Cap Contract
Counterparty and the Swap Counterparty of the occurrence of an Event of Default,
such notice to be provided in any event within two (2) Business Days of such
occurrence.

     Notwithstanding any termination of the activities of the Servicer
hereunder, the Servicer shall be entitled to receive, out of any late collection
of a Scheduled Payment on a Mortgage Loan that was due prior to the notice
terminating the Servicer's rights and obligations as Servicer hereunder and
received after such notice, that portion thereof to which the Servicer would
have been entitled pursuant to Section 3.08(a), and any other amounts payable to
the Servicer hereunder the entitlement to which arose prior to the termination
of its activities hereunder. Notwithstanding anything herein to the contrary,
upon termination of the Servicer hereunder, any liabilities of the Servicer
which accrued prior to such termination shall survive such termination.

     SECTION 7.02. Trustee to Act; Appointment of Successor

     On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 hereof, the Trustee shall, to the extent provided in
Section 3.04, be the successor to the Servicer in its capacity as 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 Servicer by the terms and provisions hereof and applicable law
including the obligation to make advances pursuant to Section 4.01. As
compensation therefor, subject to the last paragraph of Section 7.01, the
Trustee shall be entitled to all fees, compensation and reimbursement for costs
and expenses that the Servicer would have been entitled to hereunder if the
Servicer had continued to act hereunder. Notwithstanding the foregoing,

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<PAGE>

if the Trustee has become the successor to the Servicer in accordance with
Section 7.01 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 4.01 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 and does not adversely affect the then current rating of
the Certificates by each Rating Agency as the successor to the Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Servicer hereunder. Any successor Servicer shall be an
institution that is acceptable to the NIMs Insurer and is a Fannie Mae and
Freddie Mac approved seller/servicer in good standing, that has a net worth of
at least $15,000,000, and that is willing to service the Mortgage Loans and
executes and delivers to the Depositor and the Trustee an agreement accepting
such delegation and assignment, that contains an assumption by such Person of
the rights, powers, duties, responsibilities, obligations and liabilities of the
Servicer (other than liabilities of the Servicer under Section 6.03 hereof
incurred prior to termination of the Servicer under Section 7.01), 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. No appointment of a
successor to the Servicer hereunder shall be effective until the Trustee shall
have consented thereto, prior written consent of the NIMs Insurer is obtained
(provided, that such prior written consent shall not be required in the event
that the Servicing Rights Pledgee or its designee is so appointed as successor
servicer) and written notice of such proposed appointment shall have been
provided by the Trustee to each Certificateholder. The Trustee shall not resign
as servicer until a successor servicer has been appointed and has accepted such
appointment. Pending appointment of a successor to the Servicer hereunder, the
Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
to Section 3.04 hereof, act in such capacity as hereinabove provided. 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 that permitted the 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 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 Servicer to deliver or provide, or any delay in
delivering or providing, any cash, information, documents or records to it.

     Any successor to the Servicer as servicer shall give notice to the
Mortgagors of such change of servicer and shall, during the term of its service
as servicer maintain in force the policy or policies that the Servicer is
required to maintain pursuant to Section 6.05.

     SECTION 7.03. Notification to Certificateholders

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

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

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<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

     SECTION 8.01. Duties of the Trustee

     For purposes of this Article VIII, references to "Trustee" shall be deemed
to include LaSalle Bank National Association, in its capacity as Supplemental
Interest Trust Trustee under this Agreement and the Swap Agreement, and in
respect thereof, the Supplemental Interest Trust Trustee shall have all of the
rights, protections, immunities and benefits of the Trustee.

     The Trustee, prior to the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement and use the same degree of care and skill in its exercise as a prudent
person would exercise or use under the circumstances in the conduct of such
person's own affairs. In case an Event of Default or other default by the
Servicer or the Depositor hereunder shall occur and be continuing, the Trustee
shall, at the written direction of the majority of the Certificateholders or the
NIMs Insurer, or may, proceed to protect and enforce its rights and the rights
of the Certificateholders or the NIMs Insurer under this Agreement by a suit,
action or proceeding in equity or at law or otherwise, whether for the specific
performance of any covenant or agreement contained in this agreement or in aid
of the execution of any power granted in this Agreement or for the enforcement
of any other legal, equitable or other remedy, as the Trustee, being advised by
counsel and subject to the foregoing, shall deem most effectual to protect and
enforce any of the rights of the Trustee, the NIMs Insurer and the
Certificateholders.

     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 conform on their
face to the requirements of this Agreement. If any such instrument is found not
to conform on its face to the requirements of this Agreement in a material
manner, the Trustee shall notify the person providing such Agreement of such
non-conformance, and if the instrument is not corrected to the its satisfaction,
the Trustee will provide notice thereof to the Certificateholders and the NIMs
Insurer and take such further action as directed by the Certificateholders and
the NIMs Insurer.

     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 misconduct, its negligent failure to perform its obligations in
compliance with this Agreement, or any liability that would be imposed by reason
of its willful misfeasance or bad faith; provided, however, that:

          (i) prior to the occurrence of an Event of Default, and after the
curing of all such Events of Default that may have occurred, the duties and
obligations of the Trustee shall be determined solely by the express provisions
of this Agreement, the Trustee shall not be liable, individually or as Trustee,
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

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requirements of this Agreement that it reasonably 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, individually or as Trustee, be liable for
an error of judgment made in good faith by a Responsible Officer or Responsible
Officers of the Trustee unless the Trustee was negligent or acted in bad faith
or with willful misfeasance;

          (iii) the Trustee shall not be liable, individually or as Trustee,
with respect to any action taken, suffered or omitted to be taken by it in good
faith in accordance with the direction of the NIMs Insurer or the Holders in
accordance with this Agreement 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; and

          (iv) the Trustee shall not be responsible for the acts or omissions of
any Servicer or any Subservicer, it being understood that this Agreement shall
not be construed to render any of them agents of one another.

     SECTION 8.02. Certain Matters Affecting the Trustee

          (a) Except as otherwise provided in Section 8.01:

          (i) the Trustee may request and conclusively rely upon and shall be
fully protected in acting or refraining from acting upon any resolution,
Officer's Certificate, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent, order,
appraisal, bond or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;

          (ii) the Trustee may consult with counsel of its choice and any advice
or Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it hereunder in good faith
and in accordance with such 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) prior to the occurrence of an Event of Default hereunder and
after the curing of all Events of Default that may have occurred, the Trustee
shall not be bound to make any investigation into the facts or matters stated in
any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless
requested in writing so to do by the NIMs Insurer or the Holders of each Class
of Certificates evidencing not less than 25% of the Voting Rights of such Class;

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

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<PAGE>

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

          (vii) the Trustee shall not be liable, individually or as Trustee, for
any loss on any investment of funds pursuant to this Agreement or the Swap
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;

          (ix) the Trustee shall be under no obligation to exercise any of the
trusts or powers vested in it by this Agreement or to make any investigation of
matters arising hereunder or to institute, conduct or defend any litigation
hereunder or in relation hereto at the request, order or direction of any of the
NIMs Insurer or the Certificateholders, pursuant to the provisions of this
Agreement, unless the NIMs Insurer or the Certificateholders shall have offered
to the Trustee reasonable security or indemnity satisfactory to it against the
costs, expenses and liabilities that may be incurred therein or thereby;

          (x) if requested by the Servicer, the Trustee shall appoint the
Servicer as the Trustee's attorney-in-fact in order to carry out and perform
certain activities that are necessary or appropriate for the servicing and
administration of the Mortgage Loans pursuant to this Agreement. Such
appointment shall be evidenced by a power of attorney in such form as may be
agreed to by the Trustee and the Servicer. The Trustee shall have no liability
for any action or inaction of the Servicer in connection with such power of
attorney and the Trustee shall be indemnified by the Servicer for all
liabilities, costs and expenses incurred by the Trustee in connection with the
Servicer's use or misuse of such powers of attorney; and

          (xi) in order to comply with its duties under the U.S.A. Patriot Act,
the Trustee shall obtain and verify certain information and documentation from
the other parties hereto, including but not limited to, such party's name,
address and other identifying information.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee without
the possession of any of the Certificates, or the production thereof at the
trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement. 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 rerecording, refiling or
redepositing, as applicable, thereof, (B) to see to any insurance or (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.

     SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans

     The recitals contained herein shall be taken as the statements of the
Depositor or the Servicer, as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representation as to
the validity or sufficiency of this Agreement, of any Mortgage Loan, or any
related

                                     -144-

<PAGE>

document other than with respect to the execution and authentication of the
Certificates, if it so executed or authorized the Certificates. The Trustee
shall not be accountable for the use or application by the Depositor or the
Servicer of any funds paid to the Depositor or the Servicer in respect of the
Mortgage Loans or deposited in or withdrawn from the Collection Account or the
Certificate Account by the Depositor or the Servicer.

     SECTION 8.04. Trustee May Own Certificates

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

     SECTION 8.05. Trustee's Fees and Expenses

     The Trustee and any custodian shall be entitled to, such compensation as
shall be agreed to in writing by the Trustee and the Depositor (which shall not
be limited by any provision of law in regard to the compensation of a trustee of
an express trust) for all services rendered by it in the execution of the trusts
hereby created and in the exercise and performance of any of the powers and
duties hereunder of the Trustee.

     SECTION 8.06. Indemnification and Expenses of Trustee

          (a) LaSalle Bank National Association (as Trustee and in its
individual corporate capacity) and its directors, officers, employees and agents
shall be entitled to indemnification from the Issuing Entity for any loss,
liability or expense incurred in connection with (i) any audit, controversy or
judicial proceeding relating to a governmental authority or any legal proceeding
incurred without negligence or willful misconduct on their part, arising out of,
or in connection with the acceptance or administration of the trusts created
hereunder and (ii) the performance of their duties hereunder, including any
applicable fees and expenses payable hereunder, and the costs and expenses of
defending themselves against any claim in connection with the exercise or
performance of any of their powers or duties hereunder, provided that:

          (i) with respect to any such claim, the Trustee shall have given the
Depositor written notice thereof promptly after the Trustee shall have knowledge
thereof; provided that failure to so notify shall not relieve the Issuing Entity
of the obligation to indemnify the Trustee; however, any reasonable delay by the
Trustee to provide written notice to the Depositor and the Holders promptly
after the Trustee shall have obtained knowledge of a claim shall not relieve the
Issuing Entity of the obligation to indemnify the Trustee under this Section
8.06;

          (ii) while maintaining control over its own defense, the Trustee shall
reasonably cooperate and consult with the Depositor in preparing such defense;
(iii) notwithstanding anything to the contrary in this Section 8.06, the Issuing
Entity shall not be liable for settlement of any such claim by the Trustee
entered into without the prior consent of the Depositor, which consent shall not
be unreasonably withheld or delayed; and

          (iv) indemnification therefor would constitute "unanticipated
expenses" within the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii).

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<PAGE>

     Any indemnification payments to the Trustee (or a custodian) pursuant to
this Section 8.06(a) shall be allocated first to principal and then, to the
extent remaining, to interest.

     The provisions of this Section 8.06 shall survive any termination of this
Agreement and the resignation or removal of the Trustee and shall be construed
to include, but not be limited to any loss, liability or expense under any
environmental law.

          (b) The Trustee shall be entitled to reimbursement by the Trust Fund
of all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with this Agreement (including fees and expenses of its
counsel and all persons not regularly in its employment), except any such
expenses, disbursements and advances that either (i) arise from its negligence,
bad faith or willful misconduct or (ii) do not constitute "unanticipated
expenses" within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

          (c) The Trustee's right to indemnification and reimbursement shall be
subject to a cap of $400,000 in the aggregate in any calendar year, excluding
(i) any Servicing Transfer Costs and (ii) any costs, damages or expenses
incurred by the Trustee in connection with any "high cost" home loans or any
predatory or abusive lending laws, which amounts shall in no case be subject to
any such limitation; provided, however, that such cap shall apply only if NIM
Notes have been issued and there is a NIMs Insurer and shall cease to apply
after the date on which any NIM Notes are paid in full or if there is no NIMs
Insurer; provided further, however, that amounts incurred by the Trustee in
excess of such annual limit in any calendar year shall be payable to the Trustee
in succeeding calendar years, subject to such annual limit for each applicable
calendar year. Any amounts reimbursable hereunder not in excess of this cap may
be withdrawn by the Trustee from the Certificate Account at any time.

          (d) Any custodian appointed by the Trustee as herein provided shall be
entitled to indemnification and reimbursement of expenses to the same extent as
the Trustee is entitled to such amounts pursuant to subsection (a) and (b) of
this Section 8.06, without regard to subsection (c) of this Section 8.06.

     SECTION 8.07. 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 minimum credit rating of at
least (i) a long-term deposit rating of at least "A2" by Moody's and "A" by S&P
or (ii) a credit rating that would not cause any of the Rating Agencies to
reduce their respective ratings of any Class of Certificates below the ratings
issued on the Closing Date (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 8.07 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 8.07, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.08 hereof. The corporation or
national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the NIMs Insurer and their respective
Affiliates; provided, however, that such corporation cannot be an Affiliate of
the Servicer.

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<PAGE>

     SECTION 8.08. Resignation and Removal of Trustee

     The Trustee may at any time resign and be discharged from the trusts hereby
created by (1) giving written notice of resignation to the Depositor by mailing
notice of resignation by first class mail, postage prepaid, to the
Certificateholders at their addresses appearing on the Certificate Register and
each Rating Agency, not less than sixty (60) days before the date specified in
such notice when, subject to Section 8.09, such resignation is to take effect,
and (2) acceptance of appointment by a successor trustee acceptable to the NIMs
Insurer in accordance with Section 8.09 and meeting the qualifications set forth
in Section 8.07. If no successor trustee shall have been so appointed and have
accepted appointment within thirty (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 (i) the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.07 hereof and shall fail to resign after
written request thereto by the Depositor or the NIMs Insurer or (ii) 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, then the
Depositor may remove the Trustee and shall promptly appoint a successor trustee
by written instrument, in triplicate, one copy of which instrument shall be
delivered to the Trustee and one copy of which shall be delivered to the
successor trustee.

     The Holders evidencing at least 51% of the Voting Rights of all Classes of
Certificates, with the consent of the NIMs Insurer, may at any time remove the
Trustee and the Depositor shall appoint a successor trustee by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact duly authorized (or by the NIMs Insurer), one complete set of
which instruments shall be delivered by the successor trustee to the 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 the NIMs
Insurer and to each Rating Agency by the successor trustee.

     Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.08 shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.09 hereof.

     SECTION 8.09. Successor Trustee

     Any successor trustee appointed as provided in Section 8.08 hereof shall
execute, acknowledge and deliver to the Depositor and to its predecessor
trustee, the NIMs Insurer, the Servicer, the Cap Contract Counterparty and the
Swap Counterparty 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.

     No successor trustee shall accept appointment as provided in this Section
8.09 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.07 hereof and its appointment shall
not adversely affect the then current rating of the Certificates.

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<PAGE>

     Upon acceptance of appointment by a successor trustee as provided in this
Section 8.09, 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 ten (10) days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Depositor.

     SECTION 8.10. 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 all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be eligible under the provisions of Section
8.07 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 (except for the execution of an assumption agreement where such
succession is not effected by operation of law).

     SECTION 8.11. Appointment of Co-Trustee or Separate Trustee

     Notwithstanding any other provisions of this Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Servicer and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee and the NIMs Insurer to act as co-trustee or co-trustees
jointly with the Trustee, or separate trustee or separate trustees, of all or
any part of the Trust Fund, and to vest in 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 8.11, such powers, duties, obligations, rights and
trusts as the Servicer and the Trustee may consider necessary or desirable. Any
such co-trustee or separate trustee shall be compensated by the Trust Fund and
subject to the written approval of the Servicer and the NIMs Insurer. The
Trustee shall not be liable for the actions of any co-trustee appointed with due
care; provided that the appointment of a co-trustee shall not relieve the
Trustee of its obligations hereunder. If the Servicer and the NIMs Insurer shall
not have joined in such appointment within fifteen (15) days after the receipt
by it of a request to do so, or in the case an Event of Default shall have
occurred and be continuing, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.07 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.09.

     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) 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 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

                                     -148-

<PAGE>

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

          (iii) The Trustee, with the consent of the NIMs Insurer, may at any
time accept the resignation of or remove any separate trustee or co-trustee.

     Any notice, request or other writing given to the Trustee shall be deemed
to have been given to each of the then separate trustees and co-trustees, 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
NIMs Insurer and the Depositor.

     Any separate trustee or co-trustee may, at any time, constitute the Trustee
its agent or attorney-in-fact, with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this Agreement on
its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

     SECTION 8.12. Tax Matters

          (a) It is intended that each of the REMICs provided for herein shall
constitute, and that the affairs of the Trust Fund shall be conducted so as to
allow each such REMIC to qualify as, a "real estate mortgage investment conduit"
as defined in and in accordance with the REMIC Provisions. It is also intended
that each of the grantor trusts provided for in Section 2.07 hereof shall
constitute, and that the affairs of the Trust Fund shall be conducted so as to
allow each such grantor trust to qualify as, a grantor trust under the
provisions of Subpart E, Part I of Subchapter J of the Code. 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 each of the REMICs
provided for herein 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 each of the REMICs and grantor trusts provided for herein, 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 (30) 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

                                     -149-

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manner required by the Code for each of the REMICs provided for herein; (c) make
or cause to be made elections, on behalf of each of the REMICs provided for
herein to be treated as a REMIC on the federal tax return of such REMICs for
their first taxable years (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 or other applicable
law, 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 Class R Certificate to a
Person that is not a Permitted Transferee, or an agent (including a broker,
nominee or other middleman) of a Person that is not a Permitted Transferee, or a
pass through entity in which a Person that is not a Permitted Transferee is the
record holder of an interest (the reasonable cost of computing and furnishing
such information may be charged to the Person liable for such tax); (f) to the
extent that they are under its control conduct the affairs of each of the REMICs
and grantor trusts provided for herein at all times that any Certificates are
outstanding so as to maintain the status of each of the REMICs provided for
herein as a REMIC under the REMIC Provisions and the status of each of the
grantor trusts provided for herein as a grantor trust under Subpart E, Part I of
Subchapter J of the Code; (g) not knowingly or intentionally take any action or
omit to take any action that would cause the termination of the REMIC status of
any of the REMICs provided for herein or result in the imposition of tax upon
any such REMIC; (h) not knowingly or intentionally take any action or omit to
take any action that would cause the termination of the grantor trust status
under Subpart E, Part I of Subchapter J of the Code of any of the grantor trusts
provided for herein or result in the imposition of tax upon any such grantor
trust; (i) pay, from the sources specified in the last paragraph of this Section
8.12(a), the amount of any federal, state and local taxes, including prohibited
transaction taxes as described below, imposed on each of the REMICs provided for
herein prior to the termination of the Trust Fund 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); (j) sign or cause to be signed
federal, state or local income tax or information returns; (k) maintain records
relating to each of the REMICs provided for herein, including but not limited to
the income, expenses, assets and liabilities of each of the REMICs and grantor
trusts provided for herein; and (l) as and when necessary and appropriate,
represent each of the REMICs provided for herein 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 of the REMICs provided for herein, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of any of the REMICs provided for herein, and otherwise act on behalf
of each of the REMICs provided for herein in relation to any tax matter
involving any of such REMICs or any controversy involving the Trust Fund.

     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, request in order to
enable the Trustee to perform its duties as set forth herein. The Depositor
hereby agrees to indemnify the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result

                                     -150-

<PAGE>

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 of
the REMICs provided for herein as defined in Section 860F(a)(2) of the Code, on
the "net income from foreclosure property" of any of such REMICs as defined in
Section 860G(c) of the Code, on any contribution to the Trust Fund 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 or as a result of the
location of the Trustee, (ii) any party hereto (other than the Trustee) to the
extent any such other tax arises out of or results from a breach by such other
party of any of its obligations under this Agreement or as a result of the
location of such other party or (iii) in all other cases, or in the event that
any liable party here fails to honor its obligations under the preceding clauses
(i) or (ii), any such tax will be paid first with amounts (other than amounts
derived by the Issuing Entity from a payment on any Corridor Contract or amounts
received by the Supplemental Interest Trust as payments on the Swap Agreement)
otherwise to be distributed to the Class R Certificateholders (pro rata)
pursuant to Section 4.04, and second with amounts (other than amounts derived by
the Issuing Entity from a payment on any Corridor Contract or amounts received
by the Supplemental Interest Trust as payments on the Swap Agreement) otherwise
to be distributed to all other Certificateholders in the following order of
priority: first, to the Class C Certificates (pro rata), second to the Class B-3
Certificates (pro rata), third to the Class B-2 Certificates (pro rata), fourth
to the Class B-1 Certificates (pro rata), fifth to the Class M-6 Certificates
(pro rata), sixth to the Class M-5 Certificates (pro rata), seventh to the Class
M-4 Certificates (pro rata), eighth to the Class M-3 Certificates (pro rata),
ninth to the Class M-2 Certificates (pro rata), tenth to the Class M-1
Certificates (pro rata) and eleventh to the Class A Certificates (pro rata).
Notwithstanding anything to the contrary contained herein, to the extent that
such tax is payable by the Class R Certificate, the Trustee is hereby authorized
pursuant to such instruction to retain on any Distribution Date, from the
Holders of the Class R Certificate (and, if necessary, from the Holders of all
other Certificates in the priority specified in the preceding sentence), funds
otherwise distributable to such Holders in an amount sufficient to pay such tax.
The Trustee agrees to promptly notify in writing the party liable for any such
tax of the amount thereof and the due date for the payment thereof.

          (b) Each of the Depositor, the Servicer and the Trustee agrees not to
knowingly or intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of any of the REMICs provided for
herein or result in the imposition of a tax upon any of the REMICs provided for
herein.

                                   ARTICLE IX

                                   TERMINATION

     SECTION 9.01. Termination upon Liquidation or Repurchase of all Mortgage
Loans

          (a) Subject to Section 9.03, the obligations and responsibilities of
the Depositor, the Servicer and the Trustee created hereby with respect to the
Trust Fund shall terminate upon the earlier of (1) an Optional Termination and
(2) the later of (a) 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 (b) the distribution to Certificateholders
of all amounts required to be distributed to them pursuant to this Agreement, as
applicable. In no event shall the trusts created hereby continue beyond the

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earlier of (x) the expiration of 21 years from the death of the last survivor of
the descendants of Joseph P. Kennedy, the late Ambassador of the United States
to the Court of St. James's, living on the date hereof and (y) the Latest
Possible Maturity Date.

          (b) On any Distribution Date following the Initial Optional
Termination Date, the Servicer may, at its option, terminate the Trust Fund by
purchasing all of the Mortgage Loans and REO Properties at a price equal to the
Optional Termination Price. Upon the exercise of such option by the Servicer,
the Trustee shall immediately notify the Swap Counterparty that an Optional
Termination has occurred and that final distributions on the Certificates will
be made on the immediately following Distribution Date. Upon such notice, the
Swap Counterparty shall inform the Trustee of the final Swap Termination Payment
amount owed to the Swap Counterparty. In connection with any such optional
termination, the Optional Termination Price shall be delivered to the Trustee no
later than two (2) Business Days immediately preceding the related Distribution
Date. Notwithstanding anything to the contrary herein, the Optional Termination
Amount paid to the Trustee by the Servicer (or an Affiliate of the Servicer)
shall be deposited by the Trustee directly into the Certificate Account
immediately upon receipt. Notwithstanding anything herein to the contrary, only
an amount equal to the Optional Termination Price, reduced by the portion
thereof consisting of the sum of (x) any Swap Termination Payment and (y) the
amount of any unpaid Net Swap Payments that would not otherwise be funded by the
Optional Termination Price but for clause (iv) of the definition of "Optional
Termination Price" (such portion, the "Swap Optional Termination Payment"),
shall be made available for distribution to the Certificates. The Swap Optional
Termination Payment shall be withdrawn by the Trustee from the Certificate
Account and remitted to the Supplemental Interest Trust for payment to the Swap
Counterparty. The Swap Optional Termination Payment shall not be part of any
REMIC and shall not be paid into any account which is part of any REMIC.

     If the Servicer does not exercise its right under this Section 9.01(b) to
purchase all of the Mortgage Loans, the NIMs Insurer may, at its option,
terminate the Trust Fund on any Distribution Date by purchasing all of the
Mortgage Loans and REO Properties at the price equal to the Optional Termination
Price. In connection with such termination, the Optional Termination Price shall
be delivered to the Trustee no later than two (2) Business Days immediately
preceding the related Distribution Date. Notwithstanding anything to the
contrary herein, the Optional Termination Amount paid to the Trustee by the
Servicer (or an Affiliate of the Servicer) shall be deposited by the Trustee
directly into the Certificate Account immediately upon receipt.

          (c) [Reserved].

     SECTION 9.02. Final Distribution on the Certificates

     If on any Determination Date, (i) the Trustee determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in the Collection Account, the Trustee shall send a final
distribution notice promptly to each Certificateholder or (ii) the Trustee
determines that a Class of Certificates shall be retired after a final
distribution on such Class, the Trustee shall notify the Certificateholders as
soon as practicable after such Determination Date that the final distribution in
retirement of such Class of Certificates is scheduled to be made on the
immediately following Distribution Date. Any final distribution made pursuant to
the immediately preceding sentence will be made only upon presentation and
surrender of the Certificates at the office of the Trustee specified in such
notice.

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<PAGE>

     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 as soon as practicable after a
determination is made pursuant to the preceding paragraph (or with respect to an
Optional Termination, mailed no later than one Business Day following completion
of such Optional Termination). 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 location of the office or agency at which such presentation
and surrender must be made, and (c) 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 Trustee will give such notice to the Swap Counterparty and to each Rating
Agency at the time such notice is given to Certificateholders.

     In the event such notice is given, the Servicer shall remit all funds in
the Collection Account to the Trustee for deposit in the Certificate Account on
the Servicer Remittance Date in an amount equal to the final distribution in
respect of the Certificates. Upon such final deposit and the receipt by the
Trustee of a Request for Release therefor, the Trustee shall promptly release to
the Mortgage Files for the Mortgage Loans.

     Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to Certificateholders of each Class the amounts
allocable to such Certificates held in the Certificate Account in the order and
priority set forth in Section 4.04 hereof on the final Distribution Date and in
proportion to their respective Percentage Interests.

     In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six (6) months after the date specified in
the above mentioned written notice, the Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six (6) months after the second notice all the applicable Certificates shall not
have been surrendered for cancellation, the Trustee may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets that remain a part of
the Trust Fund. If within one (1) year after the second notice all Certificates
shall not have been surrendered for cancellation, the Class R Certificateholders
shall be entitled to all unclaimed funds and other assets of the Trust Fund that
remain subject hereto. Upon payment to the Class R Certificateholders of such
funds and assets, the Trustee shall not have any further duties or obligations
with respect thereto.

     SECTION 9.03. Additional Termination Requirements

          (a) In the event the Trustee or the Servicer completes an Optional
Termination as provided in Section 9.01, the Trust Fund shall be terminated in
accordance with the following additional requirements, unless the Trustee has
been supplied with an Opinion of Counsel, at the expense of the Servicer, as
applicable, to the effect that the failure of the Issuing Entity to comply with
the requirements of this Section 9.03 will not (i) result in the imposition of
taxes on "prohibited transactions" of any of the REMICs provided for herein as
defined in Section 860F of the Code, or (ii) cause any of the REMICs provided
for herein to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

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<PAGE>

          (i) The Depositor shall establish a 90-day liquidation period and
notify the Trustee thereof, and the Trustee shall in turn specify the first day
of such period in a statement attached to the final tax returns of each of the
REMICs provided for herein pursuant to Treasury Regulation Section 1.860F-1. The
Depositor shall satisfy all the requirements of a qualified liquidation under
Section 860F of the Code and any regulations thereunder, as evidenced by an
Opinion of Counsel obtained at the expense of the Servicer;

          (ii) During such 90-day liquidation period, and at or prior to the
time of making the final payment on the Certificates, the Depositor as agent of
the Trustee shall sell all of the assets of the Trust Fund for cash; and

          (iii) At the time of the making of the final payment on the
Certificates, the Trustee shall distribute or credit, or cause to be distributed
or credited, to the Class R Certificateholders all cash on hand (other than cash
retained to meet outstanding claims), and the Trust Fund shall terminate at that
time, whereupon the Trustee shall have no further duties or obligations with
respect to sums distributed or credited to the Class R Certificateholders.

          (b) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to specify the 90-day liquidation period for the
Trust Fund, which authorization shall be binding upon all successor
Certificateholders.

          (c) The Trustee as agent for each REMIC hereby agrees to adopt and
sign such a plan of complete liquidation prepared and delivered to it by the
Depositor upon the written request of the Depositor, and the receipt of the
Opinion of Counsel referred to in Section 9.03(a) and to take such other action
in connection therewith as may be reasonably requested by the Depositor.

          (d) Notwithstanding any other terms of this Agreement, prior to any
termination of the Trust Fund, the Servicer may prepare a reconciliation of all
Advances and Servicing Advances made by it for which it has not been reimbursed
and a reasonable estimate of all additional Servicing Advances and other costs
for which it would be entitled to be reimbursed if the Trust Fund were not being
terminated, including without limitation, any Servicing Advances and other costs
arising under Section 6.03 (Limitation on Liability of the Depositor, the
Servicer and Others), and the Servicer may recover these Advances, Servicing
Advances and estimated Servicing Advances and other costs from the Collection
Account (to the extent that such recovery of Servicing Advances, estimated
Servicing Advances and other costs constitutes "unanticipated expenses" within
the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii)).

          (e) Notwithstanding any other terms of this Agreement, unless the
Servicer previously has notified the Trustee that it has entered into a
servicing agreement for the servicing after the termination date of the Trust
Fund assets, at least twenty (20) days prior to any termination of the Trust
Fund, the Trustee or the Depositor shall notify the Servicer in writing to
transfer the assets of the Trust Fund as of the termination date to the person
specified in the notice, or if such person is not then known, to continue
servicing the assets until the date that is twenty (20) days after the
termination date and on the termination date, the Trustee or the Depositor shall
notify the Servicer of the person to whom the assets should be transferred on
that date. In the latter event the Servicer shall be entitled to recover its
servicing fee and any advances made for the interim servicing period from the
collections on the assets which have been purchased from the Trust Fund and the
new owner of the assets, and the agreements for the new owner to obtain
ownership of the assets of the Trust Fund shall so provide.

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<PAGE>

                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

     SECTION 10.01. Amendment

     This Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer (such consent
shall not be unreasonably withheld) and without the consent of any of the
Certificateholders,

          (i) to cure any ambiguity or correct any mistake,

          (ii) to correct, modify or supplement any provision herein which may
be inconsistent with the Prospectus Supplement or any other provision herein,

          (iii) to add any other provisions with respect to matters or questions
arising under this Agreement, or

          (iv) to modify, alter, amend, add to or rescind any of the terms or
provisions contained in this Agreement, provided, however, that, in the case of
clauses (iii) and (iv), such amendment will not, as evidenced by an Opinion of
Counsel to such effect, adversely affect in any material respect the interests
of any Holder; provided, further, however, that such amendment will be deemed to
not adversely affect in any material respect the interest of any Holder if the
Person requesting such amendment obtains a letter from each Rating Agency
stating that such amendment will not result in a reduction or withdrawal of its
rating of any Class of 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.

     In addition, this Agreement may be amended from time to time by the
Depositor, the Servicer and the Trustee without the consent of any of the
Certificateholders and without delivery of an Opinion of Counsel (referenced in
(iv) above) to comply with the provisions of Regulation AB.

     Notwithstanding the foregoing, without the consent of the
Certificateholders, the Depositor, the Servicer and the Trustee may at any time
and from time to time amend this Agreement to modify, eliminate or add to any of
its provisions to such extent as shall be necessary or appropriate to maintain
the qualification of any of the REMICs provided for herein as REMICs under the
Code or to avoid or minimize the risk of the imposition of any tax on the Trust
Fund or any of the REMICs provided for herein pursuant to the Code that would be
a claim against the Trust Fund at any time prior to the final redemption of the
Certificates, provided that the Trustee and the NIMs Insurer shall have been
provided an Opinion of Counsel, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the Trustee
or the NIMs Insurer, to the effect that such action is necessary or appropriate
to maintain such qualification or to avoid or minimize the risk of the
imposition of such a tax.

     This Agreement may also be amended from time to time by the Depositor, the
Trustee, the Servicer, the Trustee and the Holders of the Certificates affected
thereby evidencing not less than 66 2/3% of the Voting Rights, with the consent
of the NIMs Insurer, 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

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<PAGE>

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 66 2/3% or more of the Voting Rights of such Class 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. A copy of such Opinion of Counsel shall
be provided to the NIMs Insurer.

     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 be an expense of the party
requesting such amendment but in any case shall not be an expense of the
Trustee, to the effect that such amendment will not cause the imposition of any
tax on the Trust Fund, any of the REMICs provided for herein or the
Certificateholders or cause any of the REMICs provided for herein 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 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 or the Servicer to
enter into an amendment without receiving an Opinion of Counsel, satisfactory to
the Trustee or the Servicer 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 10.01.

     The Trustee may, but shall not be obligated to, enter into any supplement,
modification or waiver which affects its rights, duties or obligations
hereunder.

     The Trustee shall not enter into any amendment to this Agreement that could
have a materially adverse effect on the Cap Contract Counterparty or the Swap
Counterparty without first obtaining the consent of the Cap Contract
Counterparty or Swap Counterparty, respectively.

     Notwithstanding anything to the contrary in this Section 10.01, the Trustee
and the Servicer shall reasonably cooperate with the Depositor and its counsel
to enter into such amendments or modifications to this Agreement as may be
necessary to comply with Regulation AB and any interpretation thereof by the
Securities and Exchange Commission.

     SECTION 10.02. Counterparts

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<PAGE>

     This Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
such counterparts shall constitute but one and the same instrument.

     SECTION 10.03. Governing Law

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO
BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

     SECTION 10.04. Intention of Parties

     It is the express intent of the parties hereto that the conveyance of the
Mortgage Notes, Mortgages, assignments of Mortgages, title insurance policies
and any modifications, extensions and/or assumption agreements and private
mortgage insurance policies relating to the Mortgage Loans by the Depositor to
the Trustee be, and be construed as, an absolute sale thereof to the Trustee. It
is, further, not the intention of the parties that such conveyance 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
assets of the Trust Fund, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of the Agreement. The Depositor shall
arrange for filing any Uniform Commercial Code continuation statements in
connection with any security interest granted or assigned to the Trustee for the
benefit of the Certificateholders.

     SECTION 10.05. Notices

          (a) The Trustee shall use its best efforts to promptly provide notice
to the NIMs Insurer, the Rating Agency, the Cap Contract Counterparty and the
Swap Counterparty with respect to each of the following of which it has actual
knowledge:

          (i) Any material change or amendment to this Agreement;

          (ii) The occurrence of any Event of Default that has not been cured;

          (iii) The resignation or termination of the Trustee or the Servicer
and the appointment of any successor;

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<PAGE>

          (iv) The repurchase or substitution of Mortgage Loans pursuant to
Sections 2.02 and 2.03;

          (v) The final payment to Certificateholders; and

          (vi) Any change in the location of the Certificate Account.

          (b) The Trustee shall promptly furnish or make available to each
Rating Agency copies of the following:

          (i) Each report to Certificateholders described in Section 4.05;

          (ii) Each annual statement as to compliance described in Section 3.17;
and

          (iii) Each annual independent public accountants' servicing report
described in Section 3.18.

All directions, demands and notices hereunder shall be in writing and shall be
deemed to have been duly given when delivered to (a) in the case of the
Depositor, Merrill Lynch Mortgage Investors, Inc. 250 Vesey Street, 4 World
Financial Center, 10th Floor, New York, New York 10080, Attention: Asset-Backed
Finance; (b) in the case of the Rating Agencies, (i) Standard & Poor's Ratings
Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New
York, New York 10041and (ii) Moody's Investors Service, Inc., 99 Church Street,
4th Floor, New York, New York 10007; (c) in the case of the Servicer, Home Loan
Services, Inc., 150 Allegheny Center Mall, Pittsburgh, Pennsylvania 15212,
Attention: VP Investor Reporting; (d) in the case of the Trustee, LaSalle Bank
National Association, 135 South LaSalle Street, Suite 1511, Chicago, Illinois
60603 Attention: Global Securities and Trust Services--FFMER 2007-5; (e) in the
case of the Cap Contract Counterparty or the Swap Counterparty as provided for
in the Swap Agreement and the Corridor Contracts, and in the case of any of the
foregoing persons, such other addresses as may hereafter be furnished by any
such persons to the other parties to this Agreement. Notices to
Certificateholders shall be deemed given when mailed, first class postage
prepaid, to their respective addresses appearing in the Certificate Register.

     SECTION 10.06. Severability of Provisions

     If any one or more of the 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 10.07. Assignment; Sales; Advance Facilities

     Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Servicer without the prior written consent of the Trustee and Depositor;
provided, however, the Servicer is hereby authorized to enter into an Advance
Facility under which (l) the Servicer sells, assigns or pledges to an Advancing
Person the Servicer's rights under this Agreement to be reimbursed for any
Advances or Servicing Advances and/or (2) an Advancing Person agrees to fund
some or all Advances or Servicing Advances required to be made by the Servicer

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<PAGE>

pursuant to this Agreement. No consent of the Trustee, Certificateholders or any
other party is required before the Servicer may enter into an Advance Facility.
Notwithstanding the existence of any Advance Facility under which an Advancing
Person agrees to fund Advances and/or Servicing Advances on the Servicer's
behalf, the Servicer shall remain obligated pursuant to this Agreement to make
Advances and Servicing Advances pursuant to and as required by this Agreement,
and shall not be relieved of such obligations by virtue of such Advance
Facility.

     Reimbursement amounts shall consist solely of amounts in respect of
Advances and/or Servicing Advances made with respect to the Mortgage Loans for
which the Servicer would be permitted to reimburse itself in accordance with
this Agreement, assuming the Servicer had made the related Advance(s) and/or
Servicing Advance(s).

     The Servicer shall maintain and provide to any successor Servicer a
detailed accounting on a loan by loan basis as to amounts advanced by, pledged
or assigned to, and reimbursed to any Advancing Person. The successor Servicer
shall be entitled to rely on any such information provided by the predecessor
Servicer, and the successor Servicer shall not be liable for any errors in such
information.

     An Advancing Person who purchases or receives an assignment or pledge of
the rights to be reimbursed for Advances and/or Servicing Advances, and/or whose
obligations hereunder are limited to the funding of Advances and/or Servicing
Advances shall not be required to meet the criteria for qualification of a
Subservicer set forth in this Agreement.

     The documentation establishing any Advance Facility shall require that such
reimbursement amounts distributed with respect to each Mortgage Loan be
allocated to outstanding unreimbursed Advances or Servicing Advances (as the
case may be) made with respect to that Mortgage Loan on a "first in, first out"
(FIFO) basis. Such documentation shall also require the Servicer to provide to
the related Advancing Person or its designee loan by loan information with
respect to each such reimbursement amount distributed to such Advancing Person
or Advance Facility trustee on each Distribution Date, to enable the Advancing
Person or Advance Facility trustee to make the FIFO allocation of each such
reimbursement amount with respect to each Mortgage Loan. The Servicer shall
remain entitled to be reimbursed by the Advancing Person or Advance Facility
trustee for all Advances and Servicing Advances funded by the Servicer to the
extent the related rights to be reimbursed therefor have not been sold, assigned
or pledged to an Advancing Person.

     Any amendment to this Section 10.07 or to any other provision of this
Agreement that may be necessary or appropriate to effect the terms of an Advance
Facility as described generally in this Section 10.07, including amendments to
add provisions relating to a successor Servicer, may be entered into by the
Trustee and the Servicer, without the consent of any Certificateholder
notwithstanding anything to the contrary in this Agreement, upon receipt by the
Trustee of an Opinion of Counsel that such amendment has no material adverse
effect on the Certificateholders or the Swap Counterparty or written
confirmation from the Rating Agencies that such amendment will not adversely
affect the ratings on the Certificates. Prior to entering into an Advance
Facility, the Servicer shall notify the lender under such facility in writing
that: (a) the Advances financed by and/or pledged to the lender are obligations
owed to the Servicer on a non recourse basis payable only from the cash flows
and proceeds received under this Agreement for reimbursement of Advances only to
the extent provided herein, and the Trustee and the Trust Fund are not otherwise
obligated or liable to repay any Advances financed by the lender; (b) the
Servicer will be responsible for remitting to the lender the applicable amounts
collected by it as reimbursement for Advances funded by the lender, subject to
the restrictions and priorities created in this

                                     -159-

<PAGE>

Agreement; and (c) the Trustee shall not have any responsibility to track or
monitor the administration of the financing arrangement between the Servicer and
the lender.

     SECTION 10.08. Limitation on Rights of Certificateholders

     The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, 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
Fund, 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 hereinbefore provided, 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 (individually and as trustee) such
indemnity satisfactory to it as it may require against the costs, expenses, and
liabilities to be incurred therein or thereby, and the Trustee, for sixty (60)
days after its receipt of such notice, request and offer of indemnity shall have
neglected or refused to institute any such action, suit or proceeding; it being
understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more Holders of Certificates 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 and/or the NIMs Insurer, or to obtain or seek to obtain
priority over or preference to any other such Holder and/or the NIMs Insurer 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 10.08, each and every
Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

     SECTION 10.09. Inspection and Audit Rights

     The Servicer agrees that, on reasonable prior notice, it will permit any
representative of the Depositor or the Trustee during the Servicer's normal
business hours, to examine all the books of account, records, reports and other
papers of the 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, agents, counsel and independent public accountants (and by this
provision the Servicer hereby authorizes such 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

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<PAGE>

Section 10.09 shall be borne by the party requesting such inspection (except in
the case of the Trustee in which case such expenses shall be borne by the
requesting Certificateholder(s)); all other such expenses shall be borne by the
Servicer.

     SECTION 10.10. Certificates Nonassessable and Fully Paid

     It is the intention of the Depositor that Certificateholders shall not be
personally liable for obligations of the Issuing Entity, that the interests in
the Issuing Entity represented by the Certificates shall be nonassessable for
any reason whatsoever, and that the Certificates, upon due authentication
thereof by the Authenticating Agent pursuant to this Agreement, are and shall be
deemed fully paid.

     SECTION 10.11. Compliance with Regulation AB

     Each of the parties hereto acknowledges and agrees that the purpose of
Sections 3.17, 3.18 and 3.20 of this Agreement is to facilitate compliance by
the Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that (a) the
obligations of the parties hereunder shall be interpreted in such a manner as to
accomplish compliance with Regulation AB, (b) the parties' obligations hereunder
will be supplemented and modified as necessary to be consistent with any such
amendments, interpretive advice or guidance, or convention or consensus among
active participants in the asset-backed securities markets in respect of the
requirements of Regulation AB and (c) the parties shall comply with reasonable
requests made by the Depositor for delivery of that or different information as
is necessary to comply with the provisions of Regulation AB.

     SECTION 10.12. Third Party Rights

     The Cap Contract Counterparty and the Swap Counterparty shall be deemed
third party beneficiaries of this Agreement regarding provisions related to
payments owed to the Cap Contract Counterparty or Swap Counterparty,
respectively, so long as any of the Corridor Contracts or the Swap Agreement, as
applicable, remains in effect.

     The NIMs Insurer, if any, shall also be deemed to be a third party
beneficiary of this Agreement as long as NIM Notes are issued and outstanding.

     SECTION 10.13. Additional Rights of the NIMs Insurer

     Provided that a party to this Agreement has been provided with the contact
information of the NIMs Insurer, such party, any agent thereof and any successor
thereto shall furnish to the NIMs Insurer a copy of any notice, direction,
demand, opinion, schedule, list, certificate, report or filing required to be
provided under this Agreement and provided by it or on its behalf to any other
Person pursuant to this Agreement at the same time, in the same form and in the
same manner as such communication is so provided and shall address or cause such
communication to be addressed to the NIMs Insurer in addition to any other
addressee thereof. The Servicer shall cause the NIMs Insurer to be an addressee
of any report furnished pursuant to this Agreement. With respect to the Trustee,
such obligation shall be satisfied with the provision of access to the NIMs
Insurer to the Trustee's website.

     Unless there exists a continuance of any failure by the NIMs Insurer to
make a required payment under the policy insuring the NIM Notes (such event, a
"NIMs Insurer Default"), wherever in this Agreement there shall be a requirement
that any Person or any communication, object or other matter be

                                     -161-

<PAGE>

acceptable or satisfactory to or otherwise receive the consent or other approval
of any other Person (whether as a condition to the eligibility of such Person to
act in any capacity, as a condition to any circumstance or state of affairs
related to such matter, or otherwise), there also shall be deemed to be a
requirement that such Person or matter be approved in writing by the NIMs
Insurer, which approval shall not be unreasonably withheld or delayed.

                                     -162-
<PAGE>

     IN WITNESS WHEREOF, the Depositor, the Trustee and the 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.

                                        MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                        as Depositor

                                        By:
                                            ------------------------------------
                                        Name: Paul Park
                                        Title: Authorized Signatory

                                        LASALLE BANK NATIONAL ASSOCIATION
                                        as Trustee

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

                                        HOME LOAN SERVICES, INC.,
                                        as Servicer

                                        By::
                                            ------------------------------------
                                        Name: Steven A. Baranet
                                        Title: Vice President

                                      A-1

<PAGE>

Acknowledged and agreed to as of the day and year
first above written with respect to Sections 2.02, 2.03(b), 2.05 and 3.27 only.

FIRST FRANKLIN FINANCIAL CORPORATION,
as Sponsor

By:
    ---------------------------------
Name: Steve Mageras
Title: Director

                                      A-2

<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                           FORM OF CLASS A CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) 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 AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS CERTIFICATE
SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING
FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S
ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE
CODE.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-1

<PAGE>

                           CLASS [_]-A[_] CERTIFICATE

<TABLE>
<S>                                         <C>
Number: 07-5-[_]-A[_]-[_]                   Original Denomination:
                                            $[___________]

Cut-off Date: September 1, 2007             Last Scheduled
                                            Distribution Date: October 25, 2037

First Distribution Date:                    Aggregate Initial Certificate
October 25, 2007                            Balance of all Class [_]-A[_]
                                            Certificates: $[_________]

Pass-Through Rate: Variable(1)              CUSIP: [____________]
</TABLE>

----------
(1)  Subject to a cap as described in the Agreement.

                                      A-2

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

evidencing an ownership interest in distributions allocable to the Class
[_]-A[_] Certificates with respect to a pool of conventional, sub-prime mortgage
loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class [_]-A[_] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class [_]-A[_] (the "Class [_]-A[_]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the

                                      A-3

<PAGE>

Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-4

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [_____]                          LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                                     Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
           Authorized Signatory

                                      A-5

<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
without the consent of any of the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions therein which may be inconsistent with the
other provisions therein, to ensure continuing treatment of each REMIC included
in the Trust Fund as a REMIC, or to make any other provisions with respect to
matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that such action
does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66 2/3% of the Percentage Interests of each Class of Certificates affected
thereby, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Agreement or of modifying in any
manner the rights of the Holders of Certificates of such Class; provided,
however, that any such amendment will comply with the requirements set forth in
the Agreement.

                                      A-6

<PAGE>

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the clearing agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

          For federal income tax purposes, the Trust Fund will include multiple
     "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
     Regular Interests will represent "regular interests" in one of the REMICs
     included in the Trust Fund. The Class R Certificate will represent the sole
     class of "residual interest" in each of the REMICs.

          The obligations and responsibilities of the Depositor, the Servicer
     and the Trustee under the Agreement shall terminate upon the earlier of (a)
     an Optional Termination 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, as applicable. In no event
     shall the trusts created under the Agreement continue beyond the earlier of
     (i) the expiration of 21 years from the death of the last survivor of the
     descendants of Joseph P. Kennedy, the late Ambassador of the United States
     to the Court of St. James's, living on the date hereof and (ii) the Latest
     Possible Maturity Date.

                                      A-7

<PAGE>

                              [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-8

<PAGE>

                      FORM OF CLASS M CERTIFICATE (PUBLIC)

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) 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 AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS CERTIFICATE
SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING
FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S
ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE
CODE.

                                      A-9

<PAGE>

                            CLASS M-[_] CERTIFICATE

<TABLE>
<S>                                         <C>
Number: 07-5-M-[_]-[_]                      Original Denomination: $[________]

Cut-off Date: September 1, 2007             Last Scheduled Distribution Date:
                                            October 25, 2037

First Distribution Date: October 25, 2007   Aggregate Initial Certificate
                                            Balance of all Class M-[_____]
                                            Certificates: $[_________]

Pass-Through Rate: Variable(2)              CUSIP: [__________]
</TABLE>

----------
(2)  Subject to a cap as described in the Agreement.

                                      A-10

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

evidencing an ownership interest in distributions allocable to the Class M-[_]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class M-[_] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class M-[_] (the "Class M-[_]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the

                                      A-11

<PAGE>

Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-12

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [________]                       LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                                     Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred
to in the within-mentioned Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
           Authorized Signatory

                                      A-13

<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
without the consent of any of the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions therein which may be inconsistent with the
other provisions therein, to ensure continuing treatment of each REMIC included
in the Trust Fund as a REMIC, or to make any other provisions with respect to
matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that such action
does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66 2/3% of the Percentage Interests of each Class of Certificates affected
thereby, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Agreement or of modifying in

                                      A-14

<PAGE>

any manner the rights of the Holders of Certificates of such Class; provided,
however, that any such amendment will comply with the requirements set forth in
the Agreement.

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the clearing agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) an Optional
Termination 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, as applicable. In no event shall the trusts created under the
Agreement continue beyond the earlier of (i) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof and (ii) the Latest Possible Maturity Date.

                                      A-15

<PAGE>

                              [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-16

<PAGE>

                       FORM OF CLASS M (144A) CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) 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 AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "1940
ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT, DIRECTLY OR
INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR SALE, UNLESS SUCH
TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT, THE 1940 ACT AND ANY
APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER ALSO COMPLIES WITH THE
CERTIFICATE TRANSFER RESTRICTIONS IN THE AGREEMENT. IF THE CERTIFICATE IS A
DEFINITIVE CERTIFICATE, NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE
TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE
(A) AN INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS CERTIFICATE
SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING
FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S
ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE
CODE.

THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH CERTIFICATE ONLY (A) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A PERSON
IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE
144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (C) TO AN INSTITUTIONAL ACCREDITED INVESTOR
AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D, OR (D) OUTSIDE
THE UNITED STATES TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED BY REGULATION
S OF THE 1933 ACT ("REGULATION S")) IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH REGULATION S, AND IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND

                                      A-17

<PAGE>

SUBJECT TO THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO
REQUIRE THE DELIVERY OF A CERTIFICATE OF TRANSFER IN THE FORM APPEARING IN THE
AGREEMENT.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-18

<PAGE>

                            CLASS M-[_] CERTIFICATE
                                   (Rule 144A)

<TABLE>
<S>                                         <C>
Number: 07-5-M-[_]-[_]                      Original Denomination: $[________]

Cut-off Date: September 1, 2007             Last Scheduled Distribution Date:
                                            October 25, 2037

First Distribution Date: October 25, 2007   Aggregate Initial Certificate
                                            Balance of all Class M-[_]
                                            Certificates: $[______]

Pass-Through Rate: Variable(3)              CUSIP: [_________]
</TABLE>

----------
(3)  Subject to a cap as described in the Agreement.

                                      A-19

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

evidencing an ownership interest in distributions allocable to the Class M-[_]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class M-[_] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class M-[_] (the "Class M-[_]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the

                                      A-20

<PAGE>

certificates will be made only upon presentation and surrender of this
Certificate at the office of the Trustee or such other address designated in
writing by the Trustee. On each Distribution Date, a holder of this Certificate
will receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-21

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [________]                       LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                                     Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
          Authorized Signatory

                                      A-22
<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
without the consent of any of the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions therein which may be inconsistent with the
other provisions therein, to ensure continuing treatment of each REMIC included
in the Trust Fund as a REMIC, or to make any other provisions with respect to
matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that such action
does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66 2/3% of the Percentage Interests of each Class of Certificates affected
thereby, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Agreement or of modifying in any
manner the rights of the Holders of Certificates of such Class; provided,
however, that any such amendment will comply with the requirements set forth in
the Agreement.

                                      A-23

<PAGE>

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the clearing agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) an Optional
Termination 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, as applicable. In no event shall the trusts created under the
Agreement continue beyond the earlier of (i) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof and (ii) the Latest Possible Maturity Date.

                                      A-24

<PAGE>

                              [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-25

<PAGE>

                       FORM OF CLASS M (REG S) CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) 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 AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "1940
ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT, DIRECTLY OR
INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR SALE, UNLESS SUCH
TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT, THE 1940 ACT AND ANY
APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER ALSO COMPLIES WITH THE
CERTIFICATE TRANSFER RESTRICTIONS IN THE AGREEMENT. IF THE CERTIFICATE IS A
DEFINITIVE CERTIFICATE, NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE
TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE
(A) AN INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS CERTIFICATE
SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING
FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S
ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE
CODE.

THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES (A) THAT, UNTIL
THE EXPIRATION OF THE APPLICABLE "DISTRIBUTION COMPLIANCE PERIOD" WITHIN THE
MEANING OF REGULATION S, ANY OFFER, SALE, PLEDGE OR OTHER TRANSFER OF THIS
CERTIFICATE SHALL NOT BE MADE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, ANY U.S. PERSON (EACH AS DEFINED IN REGULATION S) AND (B) TO OFFER,
SELL, PLEDGE OR OTHERWISE TRANSFER THIS CERTIFICATE WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON (EACH AS DEFINED IN
REGULATION S) ONLY (1) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN
DECLARED EFFECTIVE UNDER THE 1933 ACT OR (2) TO A PERSON IT REASONABLY BELIEVES
IS A "QUALIFIED INSTITUTIONAL

                                      A-26

<PAGE>

BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, SUBJECT TO THE
TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE
DELIVERY OF A CERTIFICATE OF TRANSFER IN THE FORM APPEARING IN THE AGREEMENT.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-27

<PAGE>

                             CLASS M-[_] CERTIFICATE
                                 (REGULATION S)

<TABLE>
<S>                                    <C>
Number: 07-5-M-[_]-[_]                 Original Denomination: $[________]

Cut-off Date: September 1, 2007        Last Scheduled Distribution Date:
                                       October 25, 2037

First Distribution Date:               Aggregate Initial Certificate Balance of
October 25, 2007                       all Class M-[_]
                                       Certificates: $[________]

Pass-Through Rate: Variable(4)         CUSIP: [________]
</TABLE>

----------
(4)  Subject to a cap as described in the Agreement.

                                      A-28

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,

evidencing an ownership interest in distributions allocable to the Class M-[_]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class M-[_] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class M-[_] (the "Class M-[_]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of

                                      A-29

<PAGE>

this Certificate will receive such holder's Percentage Interest of the amounts
required to be distributed with respect to the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-30

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [_________]                      LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            -----------------------------------
                                                     Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    --------------------------------
          Authorized Signatory

                                      A-31

<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
without the consent of any of the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions therein which may be inconsistent with the
other provisions therein, to ensure continuing treatment of each REMIC included
in the Trust Fund as a REMIC, or to make any other provisions with respect to
matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that such action
does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66 2/3% of the Percentage Interests of each Class of Certificates affected
thereby, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Agreement or of modifying in any
manner the rights of the Holders of Certificates of such Class; provided,
however, that any such amendment will comply with the requirements set forth in
the Agreement.

                                      A-32

<PAGE>

          The Class A (other than the Class R Certificates), Class M, and Class
     B Certificates are issuable only in registerable form, in minimum
     denominations of $25,000 in initial Certificate Principal Amount and in
     integral multiples of $1 in excess thereof, registered in the name of the
     nominee of the clearing agency, which shall maintain such Certificates
     through its book-entry facilities. The Class R Certificates are issuable in
     minimum denominations of $100 and shall be maintained in physical, fully
     registered form. The Class P Certificates are issuable in minimum
     denominations of 100% and shall be maintained in physical, fully registered
     form. The Class C Certificates are issuable in minimum denominations of 25%
     and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) an Optional
Termination 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, as applicable. In no event shall the trusts created under the
Agreement continue beyond the earlier of (i) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof and (ii) the Latest Possible Maturity Date.

                                      A-33

<PAGE>

                                               [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                             ___________________________________________
(Signature guaranty)                 NOTICE: The signature to this assignment
                                     must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-34

<PAGE>

                       FORM OF CLASS B (144A) CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) 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 AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "1940
ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT, DIRECTLY OR
INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR SALE, UNLESS SUCH
TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT, THE 1940 ACT AND ANY
APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER ALSO COMPLIES WITH THE
CERTIFICATE TRANSFER RESTRICTIONS IN THE AGREEMENT. IF THE CERTIFICATE IS A
DEFINITIVE CERTIFICATE, NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE
TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE
(A) AN INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS CERTIFICATE
SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING
FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S
ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE
CODE.

THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH CERTIFICATE ONLY (A) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A PERSON
IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE
144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (C) TO AN INSTITUTIONAL ACCREDITED INVESTOR
AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D, OR (D) OUTSIDE
THE UNITED STATES TO A PERSON WHO IS NOT A

                                      A-35

<PAGE>

U.S. PERSON (AS DEFINED BY REGULATION S OF THE 1933 ACT ("REGULATION S")) IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S, AND IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SUBJECT
TO THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE
DELIVERY OF A CERTIFICATE OF TRANSFER IN THE FORM APPEARING IN THE AGREEMENT.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-36

<PAGE>

                             CLASS B-[_] CERTIFICATE
                                   (Rule 144A)

<TABLE>
<S>                                    <C>
Number:  07-5-B-[_]-[_]                Original Denomination:  $[________]

Cut-off Date: September 1, 2007        Last Scheduled Distribution Date:
                                       October 25, 2037

First Distribution Date:               Aggregate Initial Certificate Balance of
October 25, 2007                       all Class B-[_]
                                       Certificates: $[________]

Pass-Through Rate: Variable(5)         CUSIP: [________]
</TABLE>

----------
(5)   Subject to a cap as described in the Agreement.

                                      A-37

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

evidencing an ownership interest in distributions allocable to the Class B-[_]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class B-[_] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class B-[_] (the "Class B-[_]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the

                                      A-38

<PAGE>

certificates will be made only upon presentation and surrender of this
Certificate at the office of the Trustee or such other address designated in
writing by the Trustee. On each Distribution Date, a holder of this Certificate
will receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-39

<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [________]                      LASALLE BANK NATIONAL ASSOCIATION,
                                       as Trustee

                                       By:
                                           -------------------------------------
                                                    Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    --------------------------------
          Authorized Signatory

                                      A-40

<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
without the consent of any of the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions therein which may be inconsistent with the
other provisions therein, to ensure continuing treatment of each REMIC included
in the Trust Fund as a REMIC, or to make any other provisions with respect to
matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that such action
does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66 2/3% of the Percentage Interests of each Class of Certificates affected
thereby, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Agreement or of modifying in any
manner the rights of the Holders of Certificates of such Class; provided,
however, that any such amendment will comply with the requirements set forth in
the Agreement.

                                      A-41

<PAGE>

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the clearing agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) an Optional
Termination 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, as applicable. In no event shall the trusts created under the
Agreement continue beyond the earlier of (i) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof and (ii) the Latest Possible Maturity Date.

                                      A-42

<PAGE>

                              [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-43
<PAGE>

                       FORM OF CLASS B (REG S) CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) 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 AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "1940
ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT, DIRECTLY OR
INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR SALE, UNLESS SUCH
TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT, THE 1940 ACT AND ANY
APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER ALSO COMPLIES WITH THE
CERTIFICATE TRANSFER RESTRICTIONS IN THE AGREEMENT. IF THE CERTIFICATE IS A
DEFINITIVE CERTIFICATE, NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE
TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE
(A) AN INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS CERTIFICATE
SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING
FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S
ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE
CODE.

THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES (A) THAT, UNTIL
THE EXPIRATION OF THE APPLICABLE "DISTRIBUTION COMPLIANCE PERIOD" WITHIN THE
MEANING OF REGULATION S, ANY OFFER, SALE, PLEDGE OR OTHER TRANSFER OF THIS
CERTIFICATE SHALL NOT BE MADE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, ANY U.S. PERSON (EACH AS DEFINED IN REGULATION S) AND (B) TO OFFER,
SELL, PLEDGE OR OTHERWISE TRANSFER THIS CERTIFICATE WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON (EACH AS DEFINED IN
REGULATION S) ONLY (1) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN
DECLARED EFFECTIVE UNDER THE 1933 ACT OR (2) TO A PERSON IT REASONABLY BELIEVES
IS A "QUALIFIED INSTITUTIONAL

                                      A-44

<PAGE>

BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, SUBJECT TO THE
TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE
DELIVERY OF A CERTIFICATE OF TRANSFER IN THE FORM APPEARING IN THE AGREEMENT.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-45

<PAGE>

                             CLASS B-[_] CERTIFICATE
                                 (REGULATION S)

<TABLE>
<S>                                    <C>
Number: 07-5-B-[_]-[_]                 Original Denomination: $[________]

Cut-off Date: September 1, 2007        Last Scheduled Distribution Date:
                                       October 25, 2037

First Distribution Date:               Aggregate Initial Certificate Balance of
October 25, 2007                       all Class B-[_]
                                       Certificates: $[________]

Pass-Through Rate: Variable(6)         CUSIP: [________]
</TABLE>

---------
(6)  Subject to a cap as described in the Agreement.

                                      A-46

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,

evidencing an ownership interest in distributions allocable to the Class B-[_]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class B-[_] Certificates) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class B-[_] (the "Class B-[_]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of

                                      A-47

<PAGE>

this Certificate will receive such holder's Percentage Interest of the amounts
required to be distributed with respect to the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-48

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [________]                       LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-49

<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
without the consent of any of the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions therein which may be inconsistent with the
other provisions therein, to ensure continuing treatment of each REMIC included
in the Trust Fund as a REMIC, or to make any other provisions with respect to
matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that such action
does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66 2/3% of the Percentage Interests of each Class of Certificates affected
thereby, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Agreement or of modifying in any
manner the rights of the Holders of Certificates of such Class; provided,
however, that any such amendment will comply with the requirements set forth in
the Agreement.

                                      A-50

<PAGE>

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the clearing agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) an Optional
Termination 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, as applicable. In no event shall the trusts created under the
Agreement continue beyond the earlier of (i) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof and (ii) the Latest Possible Maturity Date.

                                      A-51

<PAGE>

                              [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

                                     __________________________________________
Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-52

<PAGE>

                           FORM OF CLASS C CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
IN A GRANTOR TRUST THAT HOLDS 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") AND IS
TREATED AS HAVING ENTERED INTO CERTAIN NOTIONAL PRINCIPAL CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CLASS C CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN TRANSACTIONS
WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER APPLICABLE STATE LAW
AND IS TRANSFERRED IN ACCORDANCE WITH THE CERTIFICATES TRANSFER RESTRICTIONS IN
THE AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY STATE, LOCAL,
FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS
OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT
IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL
ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED
AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A
DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND
UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE
ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL
NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE NIMS INSURER,
THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
THOSE UNDERTAKEN BY SUCH ENTITIES IN THE AGREEMENT, WHICH OPINION OF COUNSEL
SHALL NOT BE AN EXPENSE OF THE NIMS INSURER, THE TRUSTEE, THE SERVICER OR THE
DEPOSITOR.

                                      A-53

<PAGE>

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-54

<PAGE>

                               CLASS C CERTIFICATE

<TABLE>
<S>                                    <C>
Number: 07-5-C-[_]                     Percentage Interest: 100%

Cut-off Date: September 1, 2007

First Distribution Date:
October 25, 2007

Pass-Through Rate: Variable            CUSIP: [________]
</TABLE>

                                      A-55

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

evidencing an ownership interest in distributions allocable to the Class C
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
agent for Merrill Lynch International, is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class C Certificates) in certain distributions with
respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class C (the "Class C Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under

                                      A-56

<PAGE>

the Agreement, the Authenticating Agent, maintained for such purpose, the
Trustee will, subject to the limitations set forth in the Agreement,
authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Trustee, of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee, for that purpose
and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-57

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [________]                       LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-58

<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, issued in one or more Classes of Class
A Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
without the consent of any of the Certificateholders, to cure any ambiguity, to
correct or supplement any provisions therein which may be inconsistent with the
other provisions therein, to ensure continuing treatment of each REMIC included
in the Trust Fund as a REMIC, or to make any other provisions with respect to
matters or questions arising under the Agreement which are not materially
inconsistent with the provisions of the Agreement, provided that such action
does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66 2/3% of the Percentage Interests of each Class of Certificates affected
thereby, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of the Agreement or of modifying in any
manner the rights of the Holders of Certificates of such Class; provided,
however, that any such amendment will comply with the requirements set forth in
the Agreement.

                                      A-59

<PAGE>

     The Class A (other than the Class R Certificates), Class M, and Class B
Certificates are issuable only in registerable form, in minimum denominations of
$25,000 in initial Certificate Principal Amount and in integral multiples of $1
in excess thereof, registered in the name of the nominee of the clearing agency,
which shall maintain such Certificates through its book-entry facilities. The
Class R Certificates are issuable in minimum denominations of $100 and shall be
maintained in physical, fully registered form. The Class P Certificates are
issuable in minimum denominations of 100% and shall be maintained in physical,
fully registered form. The Class C Certificates are issuable in minimum
denominations of 25% and shall be maintained in physical, fully registered form.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of the REMICs included in
the Trust Fund. The Class R Certificate will represent the sole class of
"residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) an Optional
Termination; 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, as applicable. In no event shall the trusts created under the
Agreement continue beyond the earlier of (i) the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof and (ii) the Latest Possible Maturity Date.

                                      A-60

<PAGE>

                                   ASSIGNMENT

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_____________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

                                     __________________________________________
Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-61

<PAGE>

                           FORM OF CLASS P CERTIFICATE

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF
THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CLASS P CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN TRANSACTIONS
WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER APPLICABLE STATE LAW
AND IS TRANSFERRED IN ACCORDANCE WITH THE CERTIFICATE TRANSFER RESTRICTIONS IN
THE AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY STATE, LOCAL,
FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS
OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT
IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL
ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED
AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A
DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND
UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE
ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL
NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE NIMS INSURER,
THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
THOSE UNDERTAKEN BY SUCH ENTITIES IN THE AGREEMENT, WHICH OPINION OF COUNSEL
SHALL NOT BE AN EXPENSE OF THE NIMS INSURER, THE TRUSTEE, THE SERVICER OR THE
DEPOSITOR.

                                      A-62

<PAGE>

                               CLASS P CERTIFICATE

<TABLE>
<S>                                    <C>
Number: 07-5-P-[_]                     Percentage Interest: 100%

Cut-off Date: September 1, 2007

First Distribution Date:               CUSIP: [________]
October 25, 2007
</TABLE>

                                      A-63

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

evidencing an ownership interest in distributions allocable to the Class P
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
agent for Merrill Lynch International, is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class P Certificates) in certain distributions with
respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are secured
by first-lien mortgages on the Mortgaged Properties. The Trust Fund was created
pursuant to a pooling and servicing agreement (the "Agreement"), dated as of
September 1, 2007, among the Depositor, the Servicer and LaSalle Bank National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class P (the "Class P Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

          The Trustee will maintain or cause to be maintained a Certificate
     Register in which, subject to such reasonable regulations as it may
     prescribe, the Trustee will provide for the registration of Certificates
     and of transfers and exchanges of Certificates. Upon surrender for
     registration of transfer of any Certificate at any office or agency of the
     Trustee, or, if an

                                      A-64

<PAGE>

     Authenticating Agent has been appointed under the Agreement, the
     Authenticating Agent, maintained for such purpose, the Trustee will,
     subject to the limitations set forth in the Agreement, authenticate and
     deliver, in the name of the designated transferee or transferees, a
     Certificate of a like class and dated the date of authentication by the
     Authenticating Agent. Notwithstanding the above, the final distribution on
     this Certificate will be made after due notice by the Trustee, of the
     pendency of such distribution and only upon presentation and surrender of
     this Certificate at the office or agency appointed by the Trustee, for that
     purpose and specified in such notice of final distribution.

          Reference is hereby made to the further provisions of this Certificate
     set forth on the reverse hereof which further provisions shall for all
     purposes have the same effect as if set forth at this place.

          Unless the certificate of authentication has been executed by the
     Authenticating Agent, by manual signature, this Certificate shall not be
     entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-65

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [________]                       LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
    Authorized Signatory

                                      A-66
<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

          This Certificate is one of a duly authorized issue of Certificates,
     designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series
     2007-5 Mortgage Loan Asset-Backed Certificates, issued in one or more
     Classes of Class A Certificates, Class M Certificates, Class B
     Certificates, Class P Certificates and Class C Certificates, each
     evidencing an interest in certain distributions with respect to a pool of
     conventional, sub-prime Mortgage Loans formed and sold by the Depositor and
     certain other property conveyed by the Depositor to the Trustee.

          The Holder, by its acceptance of this Certificate, agrees that it will
     look solely to the Trust Fund and certain amounts resulting from credit
     enhancements for payment hereunder and that the Trustee is not liable to
     the Holders for any amount payable under this Certificate or the Agreement
     or, except as expressly provided in the Agreement, subject to any liability
     under the Agreement.

          This Certificate does not purport to summarize the Agreement and
     reference is made to the Agreement for the interests, rights and
     limitations of rights, benefits, obligations and duties evidenced hereby,
     and the rights, duties and immunities of the Trustee.

          No service charge will be made to the Holder for any transfer or
     exchange of the Certificate, but the Trustee may require payment of a sum
     sufficient to cover any tax or governmental charge that may be imposed in
     connection with any transfer or exchange of the Certificate. Prior to due
     presentation of a Certificate for registration of transfer, the Depositor
     and the Trustee may treat the person in whose name any Certificate is
     registered as the owner of such Certificate and the Percentage Interest in
     the Trust Fund evidenced thereby for the purpose of receiving distributions
     pursuant to the Agreement and for all other purposes whatsoever, and
     neither the Depositor nor the Trustee will be affected by notice to the
     contrary.

          The Agreement may be amended from time to time by the Depositor, the
     Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
     without the consent of any of the Certificateholders, to cure any
     ambiguity, to correct or supplement any provisions therein which may be
     inconsistent with the other provisions therein, to ensure continuing
     treatment of each REMIC included in the Trust Fund as a REMIC, or to make
     any other provisions with respect to matters or questions arising under the
     Agreement which are not materially inconsistent with the provisions of the
     Agreement, provided that such action does not, as evidenced by an Opinion
     of Counsel, adversely affect in any material respect the interests of any
     Certificateholder.

          The Agreement may also be amended from time to time by the Depositor,
     the Servicer and the Trustee, with the consent of the NIMs Insurer, if any,
     and with the consent of the Holders of Certificates evidencing in the
     aggregate not less than 66 2/3% of the Percentage Interests of each Class
     of Certificates affected thereby, for the purpose of adding any provisions
     to or changing in any manner or eliminating any of the provisions of the
     Agreement or of modifying in any manner the rights of the Holders of
     Certificates of such Class; provided, however, that any such amendment will
     comply with the requirements set forth in the Agreement.

                                      A-67

<PAGE>

          The Class A (other than the Class R Certificates), Class M, and Class
     B Certificates are issuable only in registerable form, in minimum
     denominations of $25,000 in initial Certificate Principal Amount and in
     integral multiples of $1 in excess thereof, registered in the name of the
     nominee of the clearing agency, which shall maintain such Certificates
     through its book-entry facilities. The Class R Certificates are issuable in
     minimum denominations of $100 and shall be maintained in physical, fully
     registered form. The Class P Certificates are issuable in minimum
     denominations of 100% and shall be maintained in physical, fully registered
     form. The Class C Certificates are issuable in minimum denominations of 25%
     and shall be maintained in physical, fully registered form.

          For federal income tax purposes, the Trust Fund will include multiple
     "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
     Regular Interests will represent "regular interests" in one of the REMICs
     included in the Trust Fund. The Class R Certificate will represent the sole
     class of "residual interest" in each of the REMICs.

          The obligations and responsibilities of the Depositor, the Servicer
     and the Trustee under the Agreement shall terminate upon the earlier of (a)
     an Optional Termination; 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, as applicable. In no event
     shall the trusts created under the Agreement continue beyond the earlier of
     (i) the expiration of 21 years from the death of the last survivor of the
     descendants of Joseph P. Kennedy, the late Ambassador of the United States
     to the Court of St. James's, living on the date hereof and (ii) the Latest
     Possible Maturity Date.

                                      A-68

<PAGE>

                                   ASSIGNMENT

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

____________________________________, Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-69

<PAGE>

                           FORM OF CLASS R CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS",
AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND (II) AN INTEREST IN
NOTIONAL PRINCIPAL CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC RESIDUAL INTERESTS REPRESENTED
HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY FEDERAL, STATE,
LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE, AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN.

                                      A-70

<PAGE>

                               CLASS R CERTIFICATE

<TABLE>
<S>                                    <C>
Number: 07-5-R-[_]                     Principal Balance: $[________]

Cut-off Date: September 1, 2007        Pass-Through Rate: Variable(7)

First Distribution Date:               CUSIP: [________]
October 25, 2007
</TABLE>

----------
(7)  Subject to a cap as described in the Agreement.

                                      A-71

<PAGE>

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

evidencing an ownership interest in distributions allocable to the Class R
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
nominee for Merrill Lynch Funding Corporation, is the registered owner of the
ownership interest (the "Ownership Interest") evidenced by this Certificate
(obtained by dividing the Original Denomination of this Certificate by the
aggregate Initial Certificate Balance of all Class R Certificates) in certain
distributions with respect to a pool of conventional, sub-prime mortgage loans
(the "Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Home Loan Services, Inc. (the "Servicer") and are
secured by first-lien mortgages on the Mortgaged Properties. The Trust Fund was
created pursuant to a pooling and servicing agreement (the "Agreement"), dated
as of September 1, 2007, among the Depositor, the Servicer and LaSalle Bank
National Association, as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5
Mortgage Loan Asset-Backed Certificates, Class R (the "Class R Certificate") and
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement 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 in October 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date.

     Distributions on this Certificate will be made either by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities or,
in the case of any certificateholder that has so notified the Trustee in writing
in accordance with the Agreement, by check mailed to the address of the person
entitled to distributions as it appears on the Certificate Register; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Trustee or such other address designated in writing by the Trustee. On each
Distribution Date, a holder of this Certificate will receive such holder's
Percentage Interest of the amounts required to be distributed with respect to
the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any

                                      A-72

<PAGE>

Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-73

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: [________]                       LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                                     Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

By:
    ---------------------------------
          Authorized Signatory

                                      A-74

<PAGE>

                             REVERSE OF CERTIFICATE

         MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5
                     MORTGAGE LOAN ASSET-BACKED CERTIFICATES

          This Certificate is one of a duly authorized issue of Certificates,
     designated as Merrill Lynch First Franklin Mortgage Loan Trust, Series
     2007-5 Mortgage Loan Asset-Backed Certificates, issued in one or more
     Classes of Class A Certificates, Class M Certificates, Class B
     Certificates, Class P Certificates and Class C Certificates, each
     evidencing an interest in certain distributions with respect to a pool of
     conventional, sub-prime Mortgage Loans formed and sold by the Depositor and
     certain other property conveyed by the Depositor to the Trustee.

          Following the initial issuance of the Certificates, the principal
     balance of this Certificate will be different from the Original
     Denomination shown above. Anyone acquiring this Certificate may ascertain
     its current principal balance by inquiry of the Trustee.

          The Holder, by its acceptance of this Certificate, agrees that it will
     look solely to the Trust Fund and certain amounts resulting from credit
     enhancements for payment hereunder and that the Trustee is not liable to
     the Holders for any amount payable under this Certificate or the Agreement
     or, except as expressly provided in the Agreement, subject to any liability
     under the Agreement.

          This Certificate does not purport to summarize the Agreement and
     reference is made to the Agreement for the interests, rights and
     limitations of rights, benefits, obligations and duties evidenced hereby,
     and the rights, duties and immunities of the Trustee.

          No service charge will be made to the Holder for any transfer or
     exchange of the Certificate, but the Trustee may require payment of a sum
     sufficient to cover any tax or governmental charge that may be imposed in
     connection with any transfer or exchange of the Certificate. Prior to due
     presentation of a Certificate for registration of transfer, the Depositor
     and the Trustee may treat the person in whose name any Certificate is
     registered as the owner of such Certificate and the Percentage Interest in
     the Trust Fund evidenced thereby for the purpose of receiving distributions
     pursuant to the Agreement and for all other purposes whatsoever, and
     neither the Depositor nor the Trustee will be affected by notice to the
     contrary.

          The Agreement may be amended from time to time by the Depositor, the
     Servicer and the Trustee, with the consent of the NIMs Insurer, if any, and
     without the consent of any of the Certificateholders, to cure any
     ambiguity, to correct or supplement any provisions therein which may be
     inconsistent with the other provisions therein, to ensure continuing
     treatment of each REMIC included in the Trust Fund as a REMIC, or to make
     any other provisions with respect to matters or questions arising under the
     Agreement which are not materially inconsistent with the provisions of the
     Agreement, provided that such action does not, as evidenced by an Opinion
     of Counsel, adversely affect in any material respect the interests of any
     Certificateholder.

          The Agreement may also be amended from time to time by the Depositor,
     the Servicer and the Trustee, with the consent of the NIMs Insurer, if any,
     and with the consent of the Holders of Certificates evidencing in the
     aggregate not less than 66 2/3% of the Percentage Interests of each Class
     of Certificates affected thereby, for the purpose of adding any provisions
     to or changing in any manner or eliminating any of the provisions of the
     Agreement or of modifying in

                                      A-75

<PAGE>

     any manner the rights of the Holders of Certificates of such Class;
     provided, however, that any such amendment will comply with the
     requirements set forth in the Agreement.

          The Class A (other than the Class R Certificates), Class M, and Class
     B Certificates are issuable only in registerable form, in minimum
     denominations of $25,000 in initial Certificate Principal Amount and in
     integral multiples of $1 in excess thereof, registered in the name of the
     nominee of the clearing agency, which shall maintain such Certificates
     through its book-entry facilities. The Class R Certificates are issuable in
     minimum denominations of $100 and shall be maintained in physical, fully
     registered form. The Class P Certificates are issuable in minimum
     denominations of 100% and shall be maintained in physical, fully registered
     form. The Class C Certificates are issuable in minimum denominations of 25%
     and shall be maintained in physical, fully registered form.

          For federal income tax purposes, the Trust Fund will include multiple
     "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
     Regular Interests will represent "regular interests" in one of the REMICs
     included in the Trust Fund. The Class R Certificate will represent the sole
     class of "residual interest" in each of the REMICs.

          The obligations and responsibilities of the Depositor, the Servicer
     and the Trustee under the Agreement shall terminate upon the earlier of (a)
     an Optional Termination; 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, as applicable. In no event
     shall the trusts created under the Agreement continue beyond the earlier of
     (i) the expiration of 21 years from the death of the last survivor of the
     descendants of Joseph P. Kennedy, the late Ambassador of the United States
     to the Court of St. James's, living on the date hereof and (ii) the Latest
     Possible Maturity Date.

                                      A-76

<PAGE>

                              [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                               NOTICE: The signature to this assignment
(Signature guaranty)                 must correspond with the name as it appears
                                     upon the face of the within Certificate in
                                     every particular, without alteration or
                                     enlargement or any change whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-1

<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

[Intentionally Omitted]

                                      B-1

<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                      C-1

<PAGE>

                                    EXHIBIT D

                          FORM OF TRUSTEE CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Home Loan Services, Inc.
150 Allegheny Center Mall
Pittsburgh, Pennsylvania 15212

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

[NIMS INSURER, IF ANY]

Re: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage
    Loan Asset-Backed Certificates

Ladies and Gentlemen:

     In accordance with Section 2.02 of the Pooling and Servicing Agreement,
dated as of September 1, 2007, among Merrill Lynch Mortgage Investors, Inc., as
depositor, LaSalle Bank National Association, as trustee, Home Loan Services,
Inc., as servicer (the "Pooling and Servicing Agreement"), the undersigned, as
Trustee, hereby certifies that [, except as set forth in Schedule A hereto,] as
to each Mortgage Loan listed in the Mortgage Loan Schedule attached hereto
(other than any Mortgage Loan paid in full or listed on the attachment hereto)
it has reviewed the Mortgage File and the Mortgage Loan Schedule and has
determined that:

          (i) All documents in the Mortgage File required to be delivered to the
Trustee pursuant to Section 2.01 (A)-(B), (C) (if applicable), (D) and (E) and
the documents if actually received by it under Section 2.01(F) of the Pooling
and Servicing Agreement are in its possession;

          (ii) In connection with each Mortgage Loan or Assignment thereof as to
which documentary evidence of recording was not received on the Closing Date, it
has received evidence of such recording; and

          (iii) Such documents have been reviewed by it and appear regular on
their face and relate to such Mortgage Loan.

                                      D-1

<PAGE>

     The Trustee has made no independent examination of any documents contained
in each Mortgage File beyond confirming (i) that the Mortgage Loan number, the
name of the Mortgagor, the street address (excluding zip code), the mortgage
interest rate at origination, the gross margin (if applicable), the lifetime
rate cap (if applicable), the periodic rate cap (if applicable), the original
principal balance, the first payment due date and the original maturity date in
each Mortgage File conform to the respective Mortgage Loan number and name
listed on the Mortgage Loan Schedule and (ii) the existence in each Mortgage
File of each of the documents listed in subparagraphs (i)(A) through (E), as
applicable, inclusive, of Section 2.01 in the Agreement. The Trustee makes no
representations or warranties as to the validity, legality, recordability,
sufficiency, enforceability, due authorization or genuineness of any of the
documents contained in each Mortgage Loan or the collectability, insurability,
effectiveness, priority, perfection or suitability of any such Mortgage Loan.

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-referenced Pooling and Servicing
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Trustee

By:
Name:
Title:

                                      D-2

<PAGE>

                                   EXHIBIT E-1

                    FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-5

Ladies and Gentlemen:

     We propose to purchase Merrill Lynch First Franklin Mortgage Loan Trust,
Series 2007-5, Mortgage Loan Asset-Backed Certificates, Class R, described in
the Prospectus Supplement, dated October 9, 2007, and the Prospectus, dated May
15, 2007.

     1. We certify that (a) we are not a disqualified organization and (b) we
are not purchasing such Class R Certificate on behalf of a disqualified
organization; for this purpose the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

     2. We certify that (a) we have historically paid our debts as they became
due, (b) we intend, and believe that we will be able, to continue to pay our
debts as they become due in the future, (c) we understand that, as beneficial
owner of the Class R Certificate, we may incur tax liabilities in excess of any
cash flows generated by the Class R Certificate, and (d) we intend to pay any
taxes associated with holding the Class R Certificate as they become due and (e)
we will not cause income from the Class R Certificate to be attributable to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of ours or another U.S. taxpayer.

                                     E-1-1

<PAGE>

     3. We acknowledge that we will be the beneficial owner of the Class R
Certificate and:(8)

     [ ]  The Class R Certificate will be registered in our name.

     [ ]  The Class R Certificate will be held in the name of our nominee,
          _________________, which is not a disqualified organization.

     4. We certify that we are not an employee benefit plan subject to Title I
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a
plan subject to Section 4975 of the Code or a plan subject to federal, state,
local, non-U.S. or other law substantively similar to the foregoing provisions
of ERISA or the Code (each, a "Plan"), and are not directly or indirectly
acquiring the Class R Certificate on behalf of or with any assets of a Plan.

     5. We certify that (i) we are a U.S. person or (ii) we will hold the Class
R Certificate in connection with the conduct of a trade or business within the
United States and have furnished the transferor and the Trustee with a duly
completed and effective Internal Revenue Service Form W-8ECI or successor form
at the time and in the manner required by the Code; for this purpose the term
"U.S. person" means a citizen or resident of the United States, a corporation,
or partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any State thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to United States federal income tax regardless
of the source of its income, or 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 such U.S. persons have the authority to control all substantial
decisions of the trust (or, to the extent provided in applicable Treasury
regulations, certain trusts in existence on August 20, 1996 which are eligible
to elect to be treated as U.S. Persons). We agree that any breach by us of this
certification shall render the transfer of any interest in the Class R
Certificate to us absolutely null and void and shall cause no rights in the
Class R Certificate to vest in us.

     6. We agree that in the event that at some future time we wish to transfer
any interest in the Class R Certificate, we will transfer such interest in the
Class R Certificate only (a) to a transferee that (i) is not a disqualified
organization and is not purchasing such interest in the Class R Certificate on
behalf of a disqualified organization, (ii) is a U.S. person or will hold the
Class R Certificate in connection with the conduct of a trade or business within
the United States and will furnish us and the Trustee with a duly completed and
effective Internal Revenue Service Form W-8ECI or successor form at the time and
in the manner required by the Code and (iii) has delivered to the Trustee a
letter in the form of this letter (including the affidavit appended hereto) and,
we will provide the Trustee a written statement substantially in the form of
Exhibit E-2 to the Pooling and Servicing Agreement.

     7. We hereby designate _______________________ as our fiduciary to act as
the tax matters person for each of the REMICs provided for in the Pooling and
Servicing Agreement.

----------
(8)  Check appropriate box and if necessary fill in the name of the Transferee's
     nominee.

                                     E-1-2

<PAGE>

Very truly yours,

[PURCHASER]

By:
Name:
Title:

Accepted as of __________ __, 200_

MERRILL LYNCH MORTGAGE INVESTORS, INC.

By:
Name:
Title:

                                     E-1-3

<PAGE>

                                        APPENDIX A

                                        Affidavit pursuant to (i) Section
                                        860E(e)(4) of the Internal Revenue Code
                                        of 1986, as amended, and (ii) certain
                                        provisions of the Pooling and Servicing
                                        Agreement

Under penalties of perjury, the undersigned declares that the following is true:

     1. He or she is an officer of _________________________ (the "Transferee"),

     2. the Transferee's Employer Identification number is __________,

     3. the Transferee is not a "disqualified organization" (as defined below),
has no plan or intention of becoming a disqualified organization, and is not
acquiring any of its interest in the Merrill Lynch First Franklin Mortgage Loan
Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-5, Class R
Certificate on behalf of a disqualified organization or any other entity,

     4. unless Merrill Lynch Mortgage Investors, Inc.("MLMI") has consented to
the transfer to the Transferee by executing the form of Consent affixed as
Appendix B to the Transferee's Letter to which this Certificate is affixed as
Appendix A, the Transferee is a "U.S. person" (as defined below),

     5. that no purpose of the transfer is to avoid or impede the assessment or
collection of tax,

     6. the Transferee has historically paid its debts as they became due,

     7. the Transferee intends, and believes that it will be able, to continue
to pay its debts as they become due in the future,

     8. the Transferee understands that, as beneficial owner of the Class R
Certificate, it may incur tax liabilities in excess of any cash flows generated
by the Class R Certificate,

     9. the Transferee intends to pay any taxes associated with holding the
Class R Certificate as they become due,

     10. the Transferee consents to any amendment of the Pooling and Servicing
Agreement that shall be deemed necessary by Merrill Lynch Mortgage Investors,
Inc. (upon advice of counsel) to constitute a reasonable arrangement to ensure
that the Class R Certificate will not be owned directly or indirectly by a
disqualified organization, and

     11. IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
transfer is not a direct or indirect transfer of the Class R Certificate to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Transferee, and as to each of the residual
interests represented by the Class R Certificate, the present value of the
anticipated tax liabilities associated with holding such residual interest does
not exceed the sum of:

     A. the present value of any consideration given to the Transferee to
acquire such residual interest;

                                     E-1-4

<PAGE>

     B. the present value of the expected future distributions on such residual
interest; and

     C. the present value of the anticipated tax savings associated with holding
such residual interest as the related REMIC generates losses.

For purposes of this declaration, (i) the Transferee is assumed to pay tax at a
rate equal to the highest rate of tax specified in Section 11(b)(1) of the Code,
but the tax rate specified in Section 55(b)(1)(B) of the Code may be used in
lieu of the highest rate specified in Section 11(b)(1) of the Code if the
Transferee has been subject to the alternative minimum tax under Section 55 of
the Code in the preceding two years and will compute its taxable income in the
current taxable year using the alternative minimum tax rate, and (ii) present
values are computed using a discount rate equal to the Federal short-term rate
prescribed by Section 1274(d) of the Code for the month of the transfer and the
compounding period used by the Transferee;]

[11. (A) at the time of the transfer, and at the close of each of the
     Transferee's two fiscal years preceding the Transferee's fiscal year of
     transfer, the Transferee's gross assets for financial reporting purposes
     exceed $100 million and its net assets for financial reporting purposes
     exceed $10 million; and

     (B)  the Transferee is an eligible corporation as defined in Treasury
          regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class R Certificate will be to another
          eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

For purposes of this declaration, the gross and net assets of the Transferee do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Transferee to make
this declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

12. The Transferee will not cause income from the Class R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Transferee or another U.S.
taxpayer.

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code and the term
"U.S. Person" means a citizen or resident of the United States, a corporation or
partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to Unites States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary

                                     E-1-5

<PAGE>

supervision over the administration of such trust, and one or more such U.S.
Persons have the authority to control all substantial decisions of such trust,
(or, to the extent provided in applicable Treasury regulations, certain trusts
in existence on August 20, 1996 which are eligible to elect to be treated as
U.S. Persons).

By:

Address of Investor for receipt of distribution:

Address of Investor for receipt of tax information:

(Corporate Seal)

Attest:

                                        , Secretary

                                     E-1-6

<PAGE>

Personally appeared before me the above-named ______________, known or proved to
me to be the same person who executed the foregoing instrument and to be the
_______ of the Investor, and acknowledged to me that he executed the same as his
free act and deed and the free act and deed of the Investor.

Subscribed and sworn before me this __________ day of ___________, 200_.

Notary Public

County of

State of

My commission expires the __________ day of ______________

                                        By:
                                        Name:
                                        Title:

Dated: ___________

                                     E-1-7

<PAGE>

                                   EXHIBIT E-2

                         FORM OF TRANSFEROR'S AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-5

Re: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage
    Loan Asset-Backed Certificates

     _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true, and has no reason to believe that the
Transferee has the intention to impede the assessment or collection of any
federal, state or local taxes legally required to be paid with respect to the
Class R Certificate referred to in the attached affidavit. In addition, the
Transferor has conducted a reasonable investigation at the time of the transfer
and found that the Transferee had historically paid its debts as they came due
and found no significant evidence to indicate that the Transferee will not
continue to pay its debts as they become due.

                                        Very truly yours,

Name:
Title:

                                     E-2-1

<PAGE>

                                    EXHIBIT F

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-5

RE: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage
    Loan Asset-Backed Certificates

Ladies and Gentlemen:

     In connection with our disposition of the Class [________] Certificate, we
certify that (a) we understand that the Certificates have not been registered
under the Securities Act of 1933, as amended (the "Act"), and are being disposed
by us in a transaction that is exempt from the registration requirements of the
Act and (b) we have not offered or sold any Certificates to, or solicited offers
to buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action that would result in, a violation of Section 5 of the Act. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement, dated as of September
1, 2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle
Bank National Association, as trustee, and Home Loan Services, Inc., as
servicer.

Very truly yours,

Name of Transferor

By:
Name:
Title:

                                      F-1
<PAGE>

                                    EXHIBIT G

                            FORM OF INVESTMENT LETTER
                              (ACCREDITED INVESTOR)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-5

     Re: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5,
         Mortgage Loan Asset-Backed Certificates

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-5, Class [____] (the
"Certificates"), issued pursuant to a Pooling and Servicing Agreement, dated as
of September 1, 2007 (the "Pooling and Servicing Agreement"), among Merrill
Lynch Mortgage Investors, Inc., as depositor (the "Depositor"), LaSalle Bank
National Association, as trustee (the "Trustee"), Home Loan Services, Inc., as
servicer (the "Servicer"). [The Purchaser intends to register the Transferred
Certificate in the name of ____________________, as nominee for
_________________.] All terms used and not otherwise defined herein shall have
the meanings set forth in the Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

     1. The Purchaser understands that (a) the Certificates have not been
registered or qualified under the Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state, (b) neither the
Depositor nor the Trustee is required, and neither of them intends, to so
register or qualify the Certificates, (c) the Certificates cannot be resold
unless (i) they are registered and qualified under the Securities Act and the
applicable state securities laws or (ii) an exemption from registration and
qualification is available and (d) the Pooling and Servicing Agreement contains
restrictions regarding the transfer of the Certificates.

     2. All Certificates other than ERISA Restricted Certificates and Class R
Certificates will bear a legend to the following effect:

     UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS
CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE
CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT,
AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE

                                      G-1

<PAGE>

BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR
(B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF
ERISA OR SECTION 4975 OF THE CODE.

     3. The Certificates (other than the Class R Certificate) will bear a legend
to the following effect:

     THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE
     "1940 ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT,
     DIRECTLY OR INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR
     SALE, UNLESS SUCH TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT,
     THE 1940 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER
     ALSO COMPLIES WITH THE OTHER PROVISIONS OF SECTION 5.02 OF THE POOLING AND
     SERVICING AGREEMENT. IF THE CERTIFICATE IS A DEFINITIVE CERTIFICATE, NO
     TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE
     RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (A) AN
     INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
     FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

     4. The ERISA Restricted Certificates will bear a legend to the following
effect:

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE HAS RECEIVED
(A) A REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE "CODE") OR A PLAN SUBJECT ANY TO STATE, LOCAL, FEDERAL,
NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE ("SIMILAR LAW") (COLLECTIVELY, A "PLAN"), AND IS NOT DIRECTLY OR
INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR WITH ANY ASSETS OF
ANY SUCH PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN
ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN
INSURANCE COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE
COMPANY GENERAL ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION
CLASS EXEMPTION ("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE
CERTIFICATE ARE COVERED AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60, OR
(C) SOLELY IN THE EVENT THE CERTIFICATE IS A DEFINITIVE CERTIFICATE, AN OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND UPON WHICH THE TRUSTEE AND THE NIMS
INSURER SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE ACQUISITION AND
HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL NOT CONSTITUTE OR
RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION
4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE,
THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN

                                      G-2

<PAGE>

ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
SERVICER, THE NIMS INSURER OR THE DEPOSITOR. IF THE CERTIFICATE IS NOT A
DEFINITIVE CERTIFICATE, THE TRANSFEREE IS DEEMED TO HAVE MADE THE REPRESENTATION
IN (A) OR (B) ABOVE.

     5. The Class R Certificate will bear a legend to the following effect:

     THIS CLASS R CERTIFICATE MAY NOT BE TRANSFERRED, EXCEPT IN ACCORDANCE WITH
     SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT AND THE HOLDER OF THIS
     CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
     TRANSFER SUCH CERTIFICATE ONLY IN ACCORDANCE WITH SECTION 5.02 OF THE
     POOLING AND SERVICING AGREEMENT. NO TRANSFER OF THIS CERTIFICATE SHALL BE
     MADE UNLESS THE TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE
     SATISFACTORY TO THE TRUSTEE (A) A TRANSFER AFFIDAVIT FROM THE PROSPECTIVE
     INVESTOR; AND (B) AN AFFIDAVIT FROM THE TRANSFEROR REGARDING THE OFFERING
     AND SALE OF THE CERTIFICATE.

     NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
     TRANSFEREE PROVIDES THE TRUSTEE WITH A REPRESENTATION THAT SUCH TRANSFEREE
     IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
     RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
     SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL,
     FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING
     PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR
     INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR WITH ANY ASSETS
     OF ANY SUCH PLAN.

     6. The Purchaser is acquiring the Transferred Certificates for its own
account [FOR INVESTMENT ONLY] * and not with a view to or for sale or other
transfer in connection with any distribution of the Transferred Certificates in
any manner that would violate the Securities Act or any applicable state
securities laws, subject, nevertheless, to the understanding that disposition of
the Purchaser's property shall at all times be and remain within its control.

     7. The Purchaser (a) is a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters, and in
particular in such matters related to securities similar to the Certificates,
such that it is capable of evaluating the merits and risks of investment in the
Certificates, (b) is able to bear the economic risks of such an investment and
(c) is an "accredited investor" within the meaning of Rule 501(a) promulgated
pursuant to the Securities Act.

     8. The Purchaser will not nor has it authorized nor will it authorize any
person to (a) offer, pledge, sell, dispose of or otherwise transfer any
Certificate, any interest in any Certificate or any other similar security to
any person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any

----------
*    Not required of a broker/dealer purchaser.

                                      G-3

<PAGE>

person in any manner, (c) otherwise approach or negotiate with respect to any
Certificate, any interest in any Certificate or any other similar security with
any person in any manner, (d) make any general solicitation by means of general
advertising or in any other manner, or (e) take any other action, that would
constitute a distribution of any Certificate under the Securities Act or the
Investment Company Act of 1940, as amended (the "1940 Act"), that would render
the disposition of any Certificate a violation of Section 5 of the Securities
Act or any state securities law, or that would require registration or
qualification pursuant thereto. Neither the Purchaser nor anyone acting on its
behalf has offered the Certificates for sale or made any general solicitation by
means of general advertising or in any other manner with respect to the
Certificates. The Purchaser will not sell or otherwise transfer any of the
Certificates, except in compliance with the provisions of the Pooling and
Servicing Agreement.

     9. Either (i) the Purchaser of a Certificate that is neither an ERISA
Restricted Certificate nor a Class R Certificate is not, and is not acting for,
on behalf of or with any assets of, an employee benefit plan or other
arrangement subject to Title I of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") or plan subject to Section 4975 of the Code, or (ii)
until the termination of the Swap Agreement, such Purchaser's acquisition and
holding of such Certificates will not constitute or result in a non-exempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code.

     10. The Purchaser of an ERISA Restricted Certificate (A) is not an employee
benefit plan subject to Title I of ERISA, a plan subject to Section 4975 of the
Code, a plan subject to any state, local, federal, non-U.S. or other law
substantively similar to the foregoing provisions of ERISA or the Code ("Similar
Law") and is not directly or indirectly acquiring such Certificates by, on
behalf of, or with any assets of any such plan, or (B) if the Certificate has
been the subject of an ERISA-Qualifying Underwriting, is an insurance company
that is acquiring the Certificate with assets of an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60, or (C) solely in the event
the Certificate is a Definitive Certificate, herewith delivers an Opinion of
Counsel satisfactory to the Trustee, and upon which the Trustee and the NIMs
Insurer shall be entitled to rely, to the effect that the acquisition and
holding of the Certificate will not constitute or result in a nonexempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code, or a
violation of Similar Law, and will not subject the Trustee, the Servicer, the
NIMs Insurer or the Depositor to any obligation in addition to those expressly
undertaken in the Pooling and Servicing Agreement, which Opinion of Counsel
shall not be an expense of the Trustee, the Servicer or the Depositor.

     11. The Purchaser of a Class R Certificate is not an employee benefit plan
subject to Title I of ERISA, a plan subject to Section 4975 of the Code, a plan
subject to any state, local, federal, non-U.S. or other law substantively
similar to the foregoing provisions of ERISA or the Code ("Similar Law"), or a
Person directly or indirectly acquiring such Certificate by, on behalf of, or
with any assets of any such plan.

     12. Prior to the sale or transfer by the Purchaser of any of the
Certificates, the Purchaser will obtain from any subsequent purchaser
substantially the same certifications, representations, warranties and covenants
contained in the foregoing paragraphs and in this letter or a letter
substantially in the form of Exhibit H to the Pooling and Servicing Agreement.

                                      G-4

<PAGE>

     13. The Purchaser agrees to indemnify the Trustee, the Servicer and the
Depositor against any liability that may result from any misrepresentation made
herein.

                                        Very truly yours,

                                        [PURCHASER]

                                        By:
                                        Name:
                                        Title:

                                      G-5

<PAGE>

                                    EXHIBIT H

                       FORM OF RULE 144A INVESTMENT LETTER
                         (QUALIFIED INSTITUTIONAL BUYER)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
           Mortgage Loan Trust, Series 2007-5

     Re: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5,
         Mortgage Loan Asset-Backed Certificates

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch First Franklin Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-5, Class [____] (the
"Certificates"), issued pursuant to a Pooling and Servicing Agreement, dated as
of September 1, 2007 (the "Pooling and Servicing Agreement"), among Merrill
Lynch Mortgage Investors, Inc., as depositor (the "Depositor"), LaSalle Bank
National Association, as trustee (the "Trustee"), Home Loan Services, Inc., as
servicer (the "Servicer"). [THE PURCHASER INTENDS TO REGISTER THE TRANSFERRED
CERTIFICATE IN THE NAME OF ____________________, AS NOMINEE FOR
_________________.] All terms used and not otherwise defined herein shall have
the meanings set forth in the Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

     In connection with our acquisition of the above Transferred Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Transferred Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Transferred Certificates, (d) solely in the case of a
Certificate other than an ERISA Restricted Certificate or Class R Certificate,
either (i) we are not, and are not acquiring the Certificate for, on behalf of
or with any assets of, any employee benefit plan or other arrangement subject to
Title I of ERISA or any plan subject to Section 4975 of the Code, or (ii) until
the termination of the Swap Agreement, our acquisition and holding of the
Certificate will not

                                      H-1

<PAGE>

constitute or result in a non-exempt prohibited transaction under Title I of
ERISA or Section 4975 of the Code, (e)solely with respect to ERISA Restricted
Certificates, (A) we are not an employee benefit plan subject to Title I of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a plan
subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the
"Code"), a plan subject to any state, local, federal, non-U.S. or other law
substantively similar to the foregoing provisions of ERISA or the Code ("Similar
Law"), or Persons directly or indirectly acting on behalf of or using any assets
of any such plan, or (B), if the Certificate has been the subject of an
ERISA-Qualifying Underwriting, we are an insurance company that is acquiring the
Certificate with assets of an "insurance company general account," as defined in
Section V(e) of Prohibited Transaction Class Exemption ("PTCE") 95-60, and the
acquisition and holding of the Certificate are covered and exempt under Sections
I and III of PTCE 95-60, or (C) solely in the event the Certificate is a
Definitive Certificate, we will herewith deliver an Opinion of Counsel
satisfactory to the Trustee, and upon which the Trustee and the NIMs Insurer
shall be entitled to rely, to the effect that the acquisition and holding of the
Certificate will not constitute or result in a nonexempt prohibited transaction
under Title I of ERISA or Section 4975 of the Code, or a violation of Similar
Law, and will not subject the Trustee, the Servicer, the NIMs Insurer or the
Depositor to any obligation in addition to those expressly undertaken in the
Pooling and Servicing Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Servicer or the Depositor, (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 Securities Act or that would render the disposition of the Certificates a
violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will act, nor has authorized or will authorize any person to act,
in such manner with respect to the Certificates, and (g) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act and have completed one of the forms of certification to that effect attached
hereto as Annex 1 or Annex 2. We are aware that the sale of the Transferred
Certificates to us is being made in reliance on Rule 144A. We are acquiring the
Transferred Certificates for our own account or for resale pursuant to Rule 144A
and further understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed by us, based upon
certifications of such purchaser or information we have in our possession, to be
a qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the Securities Act.

                                      H-2

<PAGE>

     We agree to indemnify the Trustee, the Servicer and the Depositor against
any liability that may result from any misrepresentation made herein.

Very truly yours,

[PURCHASER]

By:
Name:
Title:

                                      H-3

<PAGE>

                                                                         ANNEX 1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [FOR TRANSFEREES OTHER THAN REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

     2. In connection with the purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $____________ * in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

          [ ]  Corporation, etc. The Buyer is a corporation (other than a bank,
               savings and loan association or similar institution),
               Massachusetts or similar business trust, partnership, or
               charitable organization described in Section 501(c)(3) of the
               Internal Revenue Code of 1986, as amended.

          [ ]  Bank. The Buyer (a) is a national bank or banking institution
               organized under the laws of any State, territory or the District
               of Columbia, the business of which is substantially confined to
               banking and is supervised by Federal, State or territorial
               banking commission or similar official or is a foreign bank or
               equivalent institution, and (b) has an audited net worth of at
               least $25,000,000 as demonstrated in its latest annual financial
               statements, a copy of which is attached hereto.

          [ ]  Savings and Loan. The Buyer (a) is a savings and loan
               association, building and loan association, cooperative bank,
               homestead association or similar institution, which is supervised
               and examined by a State or Federal authority having supervision
               over such institution or is a foreign savings and loan
               association or equivalent institution and (b) has an audited net
               worth of at least $25,000,000 as demonstrated in its latest
               annual financial statements, a copy of which is attached hereto.

          [ ]  Broker-dealer. The Buyer is a dealer registered pursuant to
               Section 15 of

----------
*    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.

                                      H-4

<PAGE>

               the Securities Exchange Act of 1934, as amended.

          [ ]  Insurance Company. The Buyer is an insurance company whose
               primary and predominant business activity is the writing of
               insurance or the reinsuring of risks underwritten by insurance
               companies and which is subject to supervision by the insurance
               commissioner or a similar official or agency of the State,
               territory or the District of Columbia.

          [ ]  State or Local Plan. The Buyer is a plan established and
               maintained by a State, its political subdivisions, or any agency
               or instrumentality of the State or its political subdivisions,
               for the benefit of its employees.

          [ ]  ERISA Plan. The Buyer is an employee benefit plan subject to
               Title I of the Employee Retirement Income Security Act of 1974,
               as amended.

          [ ]  Investment Advisor. The Buyer is an investment advisor registered
               under the Investment Advisors Act of 1940, as amended.

          [ ]  Small Business Investment Company. Buyer is a small business
               investment company licensed by the U.S. Small Business
               Administration under Section 301(c) or (d) of the Small Business
               Investment Act of 1958, as amended.

          [ ]  Business Development Company. Buyer is a business development
               company as defined in Section 202(a)(22) of the Investment
               Advisors Act of 1940, as amended.

     3. The term "securities" as used for purposes of the calculation of the
dollar amount in paragraph 2 excludes: (i) securities of issuers that are
affiliated with the Buyer, (ii) securities that are part of an unsold allotment
to or subscription by the Buyer, if the Buyer is a dealer, (iii) securities
issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi)
repurchase agreements, (vii) securities owned but subject to a repurchase
agreement and (viii) currency, interest rate and commodity swaps.

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

                                      H-5

<PAGE>

     5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

     6. Until the date of purchase of the Rule 144A Securities, the Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                        By:
                                        Name:
                                        Title:

                                        Date:

                                      H-6

<PAGE>

                                                                         ANNEX 2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [FOR TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A"), because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

     2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

          [ ]  The Buyer owned $___________ in securities (other than the
               excluded securities referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being calculated in
               accordance with Rule 144A).

          [ ]  The Buyer is part of a Family of Investment Companies which owned
               in the aggregate $__________ in securities (other than the
               excluded securities referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being calculated in
               accordance with Rule 144A).

     3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

     4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

                                      H-7

<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.

                                        By:
                                        Name:
                                        Title:

                                        IF AN ADVISER:

                                        Print Name of Buyer

                                        Date:

                                      H-8

<PAGE>

                                    EXHIBIT I

                           FORM OF REQUEST FOR RELEASE

                                     [DATE]

To: LaSalle Bank National Association
    135 South LaSalle Street
    Suite 1511
    Chicago, Illinois 60603
    Attention: Account Manager--FFMER 2007-5

Re: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage
    Loan Asset-Backed Certificates

     In connection with the administration of the Mortgage Loans held by you, as
Trustee, pursuant to the Pooling and Servicing Agreement, dated as of September
1, 2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle
Bank National Association, as Trustee, Home Loan Services, Inc., as servicer
(the "Pooling and Servicing Agreement"), we request the release, and hereby
acknowledge receipt, of the Mortgage File for the Mortgage Loan described below,
for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

[ ]  1. Mortgage Paid in Full

[ ]  2. Foreclosure

[ ]  3. Substitution

[ ]  4. Other Liquidation (Repurchases, etc.)

[ ]  5. Nonliquidation

[ ]  6. Other Reason:

Address to which the Trustee should deliver the Mortgage File:

                                        By:
                                            (authorized signer)
                                        Address:
                                        Date:

                                      I-1

<PAGE>

If box 1 or 2 above is checked, and if all or part of the Mortgage File was
previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the
above specified Mortgage Loan.

If box 3, 4, 5 or 6 above is checked, upon our return of all of the above
documents to you as Trustee, please acknowledge your receipt by signing in the
space indicated below, and returning this form.

Please acknowledge the execution of the above request by your signature and date
below:

LASALLE BANK NATIONAL ASSOCIATION
as Trustee

By:

Signature                               Date

Documents returned to Trustee:

By:

Signature                               Date

                                      I-2

<PAGE>

                                    EXHIBIT J

                                   [RESERVED]

                                      J-1

<PAGE>

                                    EXHIBIT K

                    FORM OF BACK-UP CERTIFICATION OF TRUSTEE

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Home Loan Services, Inc.
150 Allegheny Center Mall
Pittsburgh, Pennsylvania 15212

Re: Pooling and Servicing Agreement (the "Agreement"), dated as of September 1,
    2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, Home Loan
    Services, Inc., as servicer, and LaSalle Bank National Association, as
    trustee, relating to Merrill Lynch First Franklin Mortgage Loan Trust,
    Series 2007-5, Mortgage Loan Asset-Backed Certificates

     The Trustee hereby certifies to the Depositor, the Servicer and their
officers, directors and affiliates, and with the knowledge and intent that they
will rely upon this certification, that:

     (1) I have reviewed the annual report on Form 10-K for the fiscal year
[2007] (the "Annual Report"), and all reports on Form 8-K (if any) and on Form
10-D required to be filed in respect of the period covered by the Annual Report
(collectively with the Annual Report, the "Reports"), of the Issuing Entity;

     (2) To the best of my knowledge, and assuming the accuracy of the
statements required to be made or data required to be delivered by the Servicer
and Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the information in the Reports relating to the trustee, taken as
a whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by the Annual Report;

     (3) To the best of my knowledge, and assuming the accuracy of the
statements required to be made or data required to be delivered by the Servicer
and Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the distribution and any other information required to be
provided by the Trustee (other than information provided by or on behalf of the
Servicer, the Depositor or other third party) to the Depositor and each Servicer
under the Pooling and Servicing Agreement for inclusion in the Reports is
included in the Reports; and

                                       K-1

<PAGE>

     (4) The report on assessment of compliance with servicing criteria for
asset-backed securities of the Trustee and its related attestation report on
assessment of compliance with servicing criteria required to be included in the
Annual Report in accordance with Item 1122 of Regulation AB and Exchange Act
Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
Any material instances of non-compliance are described in such report and have
been disclosed in the Annual Report.

LaSalle Bank National Association,
as Trustee

By:
Name:
Title:

                                      K-2

<PAGE>

                                    EXHIBIT L

                    FORM OF OFFICER'S CERTIFICATE OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Re: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage
    Loan Asset-Backed Certificates

     Home Loan Services, Inc. (the "Servicer") certifies to the Depositor and
the Trustee, and their officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification, that:

     (1) I am responsible for reviewing the activities performed by the Servicer
under the Pooling and Servicing Agreement and I have reviewed, or persons under
my supervision have reviewed, the servicer compliance statement of the Servicer
and the compliance statements of each Subservicer, if any, engaged by the
Servicer provided to the Depositor and the Trustee for the Issuing Entity's
fiscal year [___] in accordance with Item 1123 of Regulation AB (each a
"Compliance Statement"), the report on assessment of the Servicer's compliance
with the servicing criteria set forth in Item 1122(d) of Regulation AB (the
"Servicing Criteria") and reports on assessment of compliance with servicing
criteria for asset-backed securities of the Servicer and of each Subservicer [or
Subcontractor], if any, engaged or utilized by the Servicer provided to the
Depositor and the Trustee for the Issuing Entity's fiscal year [___] in
accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934,
as amended (the "Exchange Act") and Item 1122 of Regulation AB (each a
"Servicing Assessment"), the registered public accounting firm's attestation
report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
Act and Section 1122(b) of Regulation AB related to each Servicing Assessment
(each a "Attestation Report"), and all servicing reports, officer's certificates
and other information relating to the servicing of the Mortgage Loans by the
Servicer during 200[ ] that were delivered or caused to be delivered by the
Servicer pursuant to the Agreement (collectively, the "Servicing Information");

     (2) Based on my knowledge, and assuming the accuracy of the information
provided to the Servicer by third parties in connection with the performance of
the Servicer's duties under the Pooling and Servicing Agreement, the Servicing
Information, taken as a whole, does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in the light of the circumstances under which such statements were made,
not misleading with respect to the period of time covered by the Servicing
Information;

     (3) Based on my knowledge, the servicing information required to be
provided to the Trustee by the Servicer pursuant to the Pooling and Servicing
Agreement has been provided to the Trustee;

     (4) Based on my knowledge and the compliance review conducted in preparing
each Compliance Statement of the Servicer and, if applicable, reviewing each
Compliance Statement of each Subservicer, if any, engaged by the Servicer, and
except as disclosed in such Compliance Statement[(s)], the Servicer [(directly
and through its Subservicers, if any)] has fulfilled its obligations under the
Pooling and Servicing Agreement in all material respects.

                                      L-1

<PAGE>

     (5) Each Servicing Assessment of the Servicer and of each Subservicer [or
Subcontractor], if any, engaged or utilized by the Servicer and its related
Attestation Report required to be included in the Annual Report in accordance
with Item 1122 of Regulation AB and Exchange Act Rules 13a-18 and 15d-18 has
been provided to the Depositor and the Trustee. Any material instances of
non-compliance are described in any such Servicing Assessment or Attestation
Report.

Date:

Home Loan Services, Inc.,
as Servicer

By:
Name:
Title:

                                      L-2
<PAGE>

                                   EXHIBIT M-1

                     FORM OF CLASS 1-A CAP CORRIDOR CONTRACT

                                                     (THE BANK OF NEW YORK LOGO)

                                                         Dated: October 10, 2007

                              RATE CAP TRANSACTION

                           RE: BNY REFERENCE NO. 39955

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Cap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("PARTY A"), a
trust company duly organized and existing under the laws of the State of New
York, and the Trust relating to the Merrill Lynch First Franklin Mortgage Loan
Trust, Series 2007-5 (the "PARTY B"), as represented by LaSalle Bank National
Association, not in its individual capacity, but solely as Trustee under the
Pooling and Servicing Agreement, dated and effective September 1, 2007, among
Merrill Lynch Mortgage Investments, Inc., as Depositor, Home Loan Services,
Inc., as Servicer, and LaSalle Bank National Association, as Trustee (the
"POOLING AND SERVICING AGREEMENT"). This Agreement, which evidences a complete
and binding agreement between you and us to enter into the Transaction on the
terms set forth below, constitutes a "CONFIRMATION" as referred to in the "ISDA
FORM MASTER AGREEMENT" (as defined below), as well as a "Schedule" as referred
to in the ISDA Form Master Agreement.

     1. FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA
Definitions (the "DEFINITIONS"), as published by the International Swaps and
Derivatives Association, Inc. ("ISDA"). Any reference to a "Swap Transaction" in
the Definitions is deemed to be a reference to a "Transaction" for purposes of
this Agreement, and any reference to a "Transaction" in this Agreement is deemed
to be a reference to a "Swap Transaction" for purposes of the Definitions. You
and we have agreed to enter into this Agreement in lieu of negotiating a
Schedule to the 1992 ISDA Master Agreement (Multicurrency--Cross Border) form
(the "ISDA FORM MASTER AGREEMENT"). An ISDA Form Master Agreement, as modified
by the Schedule terms in Paragraph 4 of this Confirmation (the "MASTER
AGREEMENT"), shall be deemed to have been executed by you and us on the date we
entered into the Transaction. For the avoidance of doubt, the Transaction
described herein shall be the sole Transaction governed by such ISDA Form Master
Agreement. Except as otherwise specified, references herein to Sections shall be
to Sections of the Master Agreement, and references to Paragraphs shall be to
paragraphs of this Agreement. Each party hereto agrees that the Master Agreement
deemed to have been executed by the parties hereto shall be the same Master
Agreement referred to in the agreement setting forth the terms of transaction
reference number 39956 and 39957. In the event of any inconsistency between the
provisions of this Agreement and the Definitions or the Master Agreement, this
Agreement shall prevail for purposes of the Transaction. Capitalized terms not
otherwise defined herein or in the Definitions or the Master Agreement shall
have the meaning defined for such term in the Pooling and Servicing Agreement.

     2. CERTAIN TERMS. The terms of the particular Transaction to which this
Confirmation relates are as follows:

<TABLE>
<S>                             <C>
   Type of Transaction:         Rate Cap

   Notional Amount:             With respect to any Calculation Period, the
                                lesser of: (i) the amount set forth on Schedule
                                I attached hereto for such Calculation Period
                                and (ii) the aggregate Certificate Principal
                                Balance of the Class 1-A and Class R
                                Certificates (as defined in the Pooling and
                                Servicing Agreement) for such Floating Rate
                                Payer Payment Date.

                                The Trustee under the Pooling and Servicing
                                Agreement shall provide at least two (2)
                                business days notice prior to each
</TABLE>

                                      M1-1

<PAGE>

<TABLE>
<S>                             <C>
                                Floating Rate Payer Payment Date for each
                                Calculation Period to The Bank of New York if
                                the aggregate Certificate Principal Balance of
                                Class 1-A and Class R Certificates is less than
                                the Schedule I attached hereto

   Trade Date:                  October 5, 2007

   Effective Date:              October 10, 2007

   Termination Date:            June 25, 2014, subject to adjustment in
                                accordance with the Modified Following Business
                                Day Convention.

FIXED AMOUNTS

   Fixed Amount Payer:          Party B has directed Merrill Lynch Mortgage
                                Lending, Inc. to make payment of the Fixed
                                Payment Amount on its behalf.

   Fixed Amount:                USD [___]

   Fixed Amount Payer
   Payment Date:                October 10, 2007

FLOATING AMOUNTS

   Floating Rate Payer:         Party A

   Cap Rate:                    For each Calculation Period, as set forth for
                                such period on Schedule I attached hereto.

   Ceiling Rate:                For each Calculation Period, as set forth for
                                such period on Schedule I attached hereto.

   Floating Rate for initial
   Calculation Period:          To be determined

   Floating Rate Day Count
   Fraction:                    Actual/360

   Floating Rate Option:        USD-LIBOR-BBA, provided, however, if the
                                Floating Rate Option for a Calculation Period is
                                greater than the Ceiling Rate then the Floating
                                Rate Option for such Calculation Period shall be
                                deemed equal to the Ceiling Rate.

   Designated Maturity:         One month

   Spread:                      Inapplicable

   Floating Rate Payer
   Period End Dates:            The 25th day of each month, beginning on October
                                25, 2007 and ending on the Termination Date,
                                subject to adjustment in accordance with the
                                Modified Following Business Day Convention.

   Floating Rate Payer
   Payment Dates:               Early Payment shall be applicable. The Floating
                                Rate Payer Payment Date shall be one (1)
                                Business Day preceding each Floating Rate Payer
                                Period End Date.

   Reset Dates:                 The first day of each Calculation Period

   Compounding:                 Inapplicable

   Business Days for Payments
</TABLE>

                                      M1-2

<PAGE>

<TABLE>
<S>                             <C>
   By both parties:             New York and Illinois

   Calculation Agent:           Party A
</TABLE>

     3. ADDITIONAL PROVISIONS:

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
other party has engaged in (or refrained from engaging in) substantial financial
transactions and has taken (or refrained from taking) other material actions in
reliance upon the entry by the parties into the Transaction being entered into
on the terms and conditions set forth herein.

     4. PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

RATING AGENCY AND RELATED DEFINITIONS. When more than one Rating Agency rates
the Certificates, such terms refer to each Rating Agency and its criteria
separately rather than collectively.

"RATING AGENCY" .means, so long as it rates the Certificates, each of:

     (1) "MOODY'S": Moody's Investors Service Inc.

     (2) "S&P": Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

     (3) "FITCH": Fitch, Inc., Fitch Ratings, Ltd., Derivative Fitch, Inc., or
     Derivative Fitch Ltd., or any subsidiary, or successor thereof.

"RATING AGENCY CONDITION", "QUALIFYING RATINGS", "LIMITED QUALIFYING RATINGS",
and "DISQUALIFYING RATINGS" have the meanings assigned in Part 5(i)(i).

The use of the name of a Rating Agency or its use prior to such terms in a
provision indicates that such provision (or the applicable portion thereof)
applies only with respect to the requirements of such Rating Agency, and
excludes reference to the other Rating Agencies.

DEFINITIONS INCORPORATED BY REFERENCE. Capitalized terms used in this Agreement
that are not defined herein and are defined in the Pooling and Servicing
Agreement have the meanings assigned therein. In the event of any inconsistency
between the terms of this Agreement and the terms of the Pooling and Servicing
Agreement, this Agreement will govern.

Part 1. TERMINATION PROVISIONS.

(a) "SPECIFIED ENTITY" in relation to Party A or Party B shall mean: none.

(b) "SPECIFIED TRANSACTION" will have the meaning specified in Section 14.

(c) APPLICABILITY. The following provisions apply or do not apply to the parties
as specified below:

     (i) Section 5(a)(i) (FAILURE TO PAY OR DELIVER):

          (A) will apply to Party A; and

          (B) will apply to Party B.

     (ii) Section 5(a)(ii) (BREACH OF AGREEMENT):

          (A) will apply to Party A; and

          (B) will not apply to Party B.

                                      M1-3

<PAGE>

     (iii) Section 5(a)(iii) (CREDIT SUPPORT DEFAULT):

          (A) will apply to Party A; and

          (B) will not apply to Party B;

          provided, that, with respect to Moody's Limited Qualifying Ratings and
          Moody's Disqualifying Ratings, (x) this will apply only to Moody's
          Disqualifying Ratings that have continued for at least 30 Local
          Business Days, and (y) at least one Qualified Transferee has made an
          offer which remains capable of becoming legally binding upon
          acceptance to enter into a Permitted Transfer or other Replacement
          Transaction.

     (iv) Section 5(a)(iv) (MISREPRESENTATION):

          (A) will apply to Party A; and

          (B) will not apply to Party B.

     (v) Section 5(a)(v) (DEFAULT UNDER SPECIFIED TRANSACTION):

          (A) will not apply to Party A; and

          (B) will not apply to Party B.

     (vi) Section 5(a)(vi) (CROSS DEFAULT):

          (A) will apply to Party A; and

          (B) will not apply to Party B.

          For the purposes of Section 5(a)(vi):

          "SPECIFIED INDEBTEDNESS" will have the meaning specified in Section
          14, except that it shall not include indebtedness in respect of
          deposits received.

          "THRESHOLD AMOUNT" means, 3% of consolidated shareholders equity of
          Party A (or any guarantor under a Qualified Guaranty) and its
          subsidiaries determined in accordance with generally accepted
          accounting principles in the jurisdiction of its organization
          consistently applied as of the last day of the fiscal year ended
          immediately prior to the occurrence or existence of an event for which
          a Threshold Amount is applicable under Section 5(a)(vi).

     (vii) Section 5(a)(vii) (BANKRUPTCY):

          (A) will apply to Party A; and

          (B) will not apply to Party B with respect to subclauses (2), (4) (but
          only if the proceeding or petition is instituted or presented by Party
          A or its affiliates), (7), (8) (but subclause (8) will not apply to
          Party B only to the extent that subclauses (2), (4) and (7) do not
          apply to Party B) and (9) of Section 5(a)(vii), and the remaining
          provisions of Section 5(a)(vii) will apply to Party B; and in
          subclause (6) the words "trustee" and "custodian" will not include the
          Trustee and the words "seeks or" will be deleted.

     (viii) Section 5(a)(viii) (MERGER WITHOUT ASSUMPTION):

          (A) will apply to Party A; and

          (B) will apply to Party B.

     (ix) Section 5(b)(i) (ILLEGALITY):

          (A) will apply to Party A; and

          (B) will apply to Party B.

                                      M1-4

<PAGE>

     (x) Section 5(b)(ii) (TAX EVENT):

          (A) will apply to Party A; and

          (B) will apply to Party B;

          provided that the words "(x) any action taken by a taxing authority,
          or brought in a court of competent jurisdiction, on or after the date
          on which a Transaction is entered into (regardless of whether such
          action is taken or brought with respect to a party to this Agreement)
          or (y)" shall be deleted.

     (xi) Section 5(b)(iii) (TAX EVENT UPON MERGER):

          (A) will apply to Party A; and

          (B) will apply to Party B,

          provided, that Party A shall not be entitled to designate an Early
          Termination Date by reason of a Tax Event upon Merger in respect of
          which it is the Affected Party.

     (xii) Section 5(b)(iv) (CREDIT EVENT UPON MERGER):

          (A) will not apply to Party A; and

          (B) will not apply to Party B.

     (xiii) Section 5(b)(v) (ADDITIONAL TERMINATION EVENT):

          (A) will apply to Party A with respect to Part 1(g)(iv) and (v); and

          (B) will apply to Party B with respect to Parts 1(g)(i), (ii), and
          (iii).

(d) The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a):

          (A) will not apply to Party A; and

          (B) will not apply to Party B.

(e) PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e), the Second
Method and Market Quotation will apply. For such purpose, if Party A is the
Affected Party in respect of an Additional Termination Event or a Tax Event Upon
Merger or the Defaulting Party in respect of any Event of Default (but not, in
any case, in respect of a Termination Event arising from an Illegality or Tax
Event), the following provisions shall apply:

     (i) The definitions of "Market Quotation" and "Settlement Amount" are
     amended in their entirety to read as follows:

          "MARKET QUOTATION" means, with respect to one or more Terminated
          Transactions, an offer capable when made of becoming legally binding
          upon acceptance made by a Qualified Transferee for an amount that
          would be paid to Party B (expressed as a negative number) or by Party
          B (expressed as a positive number) in consideration of an agreement
          between Party B and such Qualified Transferee to enter into a
          transaction with commercial terms substantially the same as and that
          are, in all material respects, no less beneficial for Party B than,
          those of this Agreement (save for the exclusion of provisions relating
          to Transactions that are not Terminated Transactions) (which shall be
          determined by Party B, acting in a commercially reasonable manner),
          that would have the effect of preserving the economic equivalent for
          Party B of any payment or delivery (whether the underlying obligation
          was absolute or contingent and assuming the satisfaction of each
          applicable condition precedent) by the parties under Section 2(a)(i)
          in respect of such Terminated Transactions or group of Terminated
          Transactions that would, but for the occurrence of the relevant Early
          Termination Date, have been required after that date (such
          transaction, a "REPLACEMENT TRANSACTION"). For this purpose, Unpaid
          Amounts in respect of the Terminated Transaction or group of
          Transactions are to be excluded but, without limitation, any payment
          or delivery that would, but for the relevant Early Termination Date,
          have been required (assuming satisfaction of each applicable condition
          precedent) after that Early Termination Date is to be included.

          "SETTLEMENT AMOUNT" means, with respect to any Early Termination Date:

                                      M1-5

<PAGE>

          (1) if, on or prior to such Early Termination Date, a Market Quotation
          for the relevant Terminated Transaction or group of Terminated
          Transactions is accepted by Party B so as to become legally binding:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of such Market Quotation;

          (2) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions
          has been accepted by Party B so as to become legally binding and one
          or more Market Quotations have been communicated to Party B and remain
          capable of becoming legally binding upon acceptance by Party B:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of the lowest of such Market Quotations

                    (for the avoidance of doubt, (x) a Market Quotation
                    expressed as a negative number is lower than a Market
                    Quotation expressed as a positive number and (y) the lower
                    of two Market Quotations expressed as negative numbers is
                    the one with the largest absolute value); or

          (3) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions is
          accepted by Party B so as to become legally binding and no Market
          Quotations have been communicated to Party B and remain capable of
          becoming legally binding upon acceptance by Party B:

               Party B's Loss (whether positive or negative and without
               reference to any Unpaid amounts) for the relevant Terminated
               Transaction or group of Terminated Transactions."

     (ii) At any time on or before the Early Termination Date at which two or
     more Market Quotations remain capable of becoming legally binding upon
     acceptance, Party B shall be entitled to accept only the lowest of such
     Market Quotations. (For the avoidance of doubt, (i) a Market Quotation
     expressed as a negative number is lower than a Market Quotation expressed
     as a positive number and (ii) the lower of two Market Quotations expressed
     as negative numbers is the one with the largest absolute value.)

     (iii) if Party B requests Party A in writing to obtain Market Quotations,
     Party A shall use its reasonable efforts to do so before the Early
     Termination Date.

     (iv) If the Settlement Amount is a negative number, Section 6(e)(i)(3)
     shall be deleted in its entirety and replaced with the following:

          "SECOND METHOD AND MARKET QUOTATION. If Second Method and Market
          Quotation apply, (1) Party B shall pay to Party A an amount equal to
          the absolute value of the Settlement Amount in respect of the
          Terminated Transactions, (2) Party B shall pay to Party A the
          Termination Currency Equivalent of the Unpaid Amounts owing to Party A
          and (3) Party A shall pay to Party B the Termination Currency
          Equivalent of the Unpaid Amounts owing to Party B, Provided that, (i)
          the amounts payable under (2) and (3) shall be subject to netting in
          accordance with Section 2(c) and (ii) notwithstanding any other
          provision of this Agreement, any amount payable by Party A under (3)
          shall not be netted-off against any amount payable by Party B under
          (1)."

(f) "TERMINATION CURRENCY" means United States Dollars.

(g) "ADDITIONAL TERMINATION EVENT" will apply. The following shall constitute
Additional Termination Events, and the party specified shall be the Affected
Party with respect thereto:--

     (i) TERMINATION OF TRUST FUND. The Trust, Supplemental Interest Trust or
     Trust Fund shall be terminated pursuant to any provision of the Pooling and
     Servicing Agreement (including, without limitation, by exercise of the
     option to purchase and giving of notice under Sections 9.01 and 10.01 of
     the Pooling and Servicing Agreement). The Early Termination Date with
     respect to such Additional Termination Event shall be the Distribution Date
     upon which the Trust and the Supplemental Interest Trust or Trust Fund is
     terminated and final payment is made in respect of

                                      M1-6

<PAGE>

     the Certificates. Party B shall be the sole Affected Party. However, each
     of Party A and Party B may designate an Early Termination Date in respect
     of this Additional Termination Event.

     (ii) INABILITY TO PAY CERTIFICATES. The Trust is unable to pay or fails or
     admits in writing its inability to pay (i) on any Distribution Date, any
     Current Interest with respect to the Class A Certificates or (ii) by the
     Distribution Date immediately following the maturity date for the Mortgage
     Loan with the latest maturity date, [the ultimate payment of principal with
     respect to the Class A Certificates, in either case to the extent required
     pursuant to the terms of the Pooling and Servicing Agreement to be paid to
     the Class A Certificates. Party B shall be the sole Affected Party.

     (iii) AMENDMENT OF POOLING AND SERVICING AGREEMENT. The amendment of the
     Pooling and Servicing Agreement in a manner which could have a material
     adverse effect on Party A without first obtaining the prior written consent
     of Party A (such consent not to be unreasonably withheld), where such
     consent is required under the Pooling and Servicing Agreement. Party B
     shall be the sole Affected Party.

     (iv) RATINGS DOWNGRADE. Party A or any guarantor under a Qualified Guaranty
     (1) has Limited Qualifying Ratings or Disqualifying Ratings, and Party A
     fails to take the actions provided in Part 5(i)(ii)(Posting of Collateral),
     within the time periods set out therein, or (2) has Disqualifying Ratings
     and Party A fails to take the actions provided in Part
     5(i)(iii)(Replacement or Guaranty), within the time periods set out
     therein;

     provided, that, with respect to Moody's Disqualifying Ratings, (1) such
     failure to comply with Part 5(i)(ii) will be treated as an Event of Default
     subject to the provisions of Part 1(c)(iii), and not as an Additional
     Termination Event, and (2) an Additional Termination Event with respect to
     Moody's will not be constituted with respect to Part 5(i)(iii) unless and
     until at least one Qualified Transferee has made an offer which remains
     capable of becoming legally binding upon acceptance to enter into a
     Permitted Transfer or other Replacement Transaction.

     Party A shall be the sole Affected Party.

     (v) REGULATION AB. Party A shall fail to comply with the provisions of Part
     5 (j) within the time provided for therein. Party A shall be the sole
     Affected Party.

Party B shall not effectively designate an Early Termination Date unless and
until it has given prior written notice thereof to each Rating Agency.

Part 2. TAX REPRESENTATIONS AND CERTAIN TAX-RELATED PROVISIONS.

     (a) PAYER REPRESENTATIONS. For the purpose of Section 3(e), Party A and
Party B make the following representations:

     It is not required by any applicable law, as modified by the practice of
any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment
(other than interest under Section 2(e), 6(d)(ii) or 6(e)) to be made by it to
the other party under this Agreement. In making this representation, it may rely
on:

     (i) the accuracy of any representations made by the other party pursuant to
     Section 3(f);

     (ii) the satisfaction of the agreement contained in Section 4 (a)(i) or
     4(a)(iii) and the accuracy and effectiveness of any document provided by
     the other party pursuant to Section 4 (a)(i) or 4(a)(iii); and

     (iii) the satisfaction of the agreement of the other party contained in
     Section 4(d),

provided, that, it shall not be a breach of this representation where reliance
is placed on clause (ii) and the other party does not deliver a form or document
under Section 4(a)(iii) by reason of material prejudice of its legal or
commercial position.

(b) PAYEE REPRESENTATIONS. For the purpose of Section 3(f), Party A and Party B
make the following representations.

     (i)  The following representation will apply to Party A:

                                      M1-7

<PAGE>

          (x) It is a "U.S. person" (as that term is used in Section
          1.1441-4(a)(3)(ii) of the United States Treasury Regulations ("TREAS.
          REG.")) for United States federal income tax purposes, (y) it is a
          trust company duly organized and existing under the laws of the State
          of New York, and (z) its U.S. taxpayer identification number is
          135160382.

     (ii) The following representation will apply to Party B:

          None.

(c) ADDITIONAL AMOUNTS NOT PAYABLE BY PARTY B. Party B shall not be required to
pay any additional amounts pursuant to Section 2(d)(i)(4).

(d) INDEMNIFIABLE TAX. The definition of "Indemnifiable Tax" in Section 14 is
amended in its entirety to read as follows:

     "INDEMNIFIABLE TAX" means in relation to payments by Party A any Tax and in
     relation to payments by Party B no Tax.

Part 3. AGREEMENT TO DELIVER DOCUMENTS. For the purpose of Section 4(a):

(a) Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO
DELIVER DOCUMENT               FORM/DOCUMENT/ CERTIFICATE               DATE BY WHICH TO BE DELIVERED
-----------------     ------------------------------------------   -----------------------------------
<S>                   <C>                                            <C>
Party A and Party B   A correct, complete and executed Internal    (i) Prior to the first scheduled
                      Revenue Service Form W-9, with respect to    Distribution Date; (ii) in the case
                      Party A, and W-9, W-8BEN, W-8ECI, or         of a U.S. Internal Revenue Service
                      W-8IMY, with appropriate attachments, as     Form W-8ECI, W-8IMY, and W-8BEN that
                      applicable, with respect to Party B, or      does not include a U.S. taxpayer
                      any other or successor form, in each case    identification number in line 6,
                      that establishes an exemption from           before December 31 of each third
                      deduction or withholding obligations, and    succeeding calendar year, (iii)
                      any other document reasonably requested      promptly upon reasonable demand by
                      to allow the other party to make payments    the other party; and (iv) promptly
                      under this Agreement without any             upon learning that any form
                      deduction or withholding for or on the       previously provided by to the other
                      account of any tax.                          party has become obsolete or
                                                                   incorrect.
</TABLE>

(b) Other documents to be delivered are:

<TABLE>
<CAPTION>
                                                                                           COVERED BY
PARTY REQUIRED TO                   FORM/DOCUMENT/                 DATE BY WHICH TO BE    SECTION 3(D)
DELIVER DOCUMENT                      CERTIFICATE                       DELIVERED        REPRESENTATION
-------------------   ------------------------------------------   -------------------   --------------
<S>                   <C>                                          <C>                   <C>
Party A               A certificate of an authorized officer of    Upon the execution    Yes
                      the party, as to the incumbency and          and delivery of
                      authority of the respective officers of      this Agreement
                      the party signing this Agreement, any
                      relevant Credit Support Document, or any
                      Confirmation, as the case may be.

Party B               (i) a copy of the executed Pooling and       With respect to (i)   Yes
                      Servicing Agreement, (ii) an incumbency      upon the execution
                      certificate verifying the true signatures    and delivery of the
                      and authority of the person or persons       Pooling and
                      signing this Agreement on behalf of Party    Servicing
                      B , and (iii) a certified copy of the        Agreement, and
                      authorizing resolution (or equivalent        with respect to
                      authorizing documentation) of Trustee        (ii) and (iii) upon
                      which sets forth the authority of each       the execution and
                      signatory to the                             delivery of this
</TABLE>

                                      M1-8

<PAGE>

<TABLE>
<S>                   <C>                                          <C>                   <C>
                      Confirmation signing on its behalf and       Agreement
                      the authority of such party to enter into
                      Transactions contemplated and performance
                      of its obligations hereunder.

Party A and Party B   A legal opinion as to enforceability of      Upon the execution    No
                      this Agreement and any Confirmation          and delivery of
                      evidencing a Transaction hereunder.          this Agreement and
                                                                   such Confirmation
</TABLE>

Part 4. MISCELLANEOUS.

(a) ADDRESSES FOR NOTICES. For the purpose of Section 12(a):

     ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY A:

          The Bank of New York
          Swaps and Derivative Products Group
          Global Market Division
          32 Old Slip 15th Floor
          New York, New York 10286
          Attention: Steve Lawler

     with a copy to:

          The Bank of New York
          Swaps and Derivative Products Group
          32 Old Slip 16th Floor
          New York, New York 10286
          Attention: Andrew Schwartz
          Tele: 212-804-5103
          Fax: 212-804-5818/5837

          (For all purposes)

     A copy of any notice or other communication with respect to Sections 5 or 6
     should also be sent to the addresses set out below:

          The Bank of New York
          Legal Department
          One Wall Street - 10th Floor
          New York, New York 10286
          Attention: General Counsel

     ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY B:

          Global Securities and Trust Services
          135 S. LaSalle Street, Suite 1511
          Chicago, Illinois 60603
          Attn: Ken Lo
          Tel: 312-992-0668
          Fax: 312-904-1368

          With a copy to:

          Merrill Lynch Mortgage Investors, Inc.
          250 Vesey St.
          4 World Financial Center, 10th floor
          New York, NY 10080
          Attention: Alan Chan
          Telephone: 212-449-1441
          Facsimile:  212-738-1110
          (For all purposes.)

                                      M1-9

<PAGE>

(b) PROCESS AGENT. For the purpose of Section 13(c):

     Party A appoints as its Process Agent:-- not applicable.

     Party B appoints as its Process Agent:-- not applicable.

(c) OFFICES. The provisions of Section 10(a) will apply to this Agreement.

(d) MULTIBRANCH PARTY. For the purpose of Section 10(c):

     Party A is a Multibranch Party and will enter into each Transaction only
     through the following Office:- New York (for all Transactions).

     Party B is not a Multibranch Party.

(e) CALCULATION AGENT. The Calculation Agent is Party A.

(f) "CREDIT SUPPORT DOCUMENT" Credit Support Document means in relation to:--

     Party A:  The Credit Support Annex hereto and any Qualified Guaranty.

     Party B:  Not applicable.

(g) "CREDIT SUPPORT PROVIDER" means in relation to:

     Party A:  The guarantor under any Qualified Guaranty.

     Party B:  Not Applicable.

(h) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York without reference to choice of
law doctrine other than New York General Obligations Law Sections 5-1401 and
5-1402.

(i) NETTING OF PAYMENTS; MODIFICATION OF SECTION 2(A)(III)(1). Subparagraph (ii)
of Section 2(c) will apply. Section 2(a)(iii)(1) is amended by deleting "or
Potential Event of Default".

(j) "AFFILIATE" will have the meaning specified in Section 14, provided, that,
Party B shall not be deemed to have any Affiliates for purposes of this
Agreement, including for purposes of Section 6(b)(ii) hereof.

(k) ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding after
Section 3(f) the following subsections:

     "(g) RELATIONSHIP BETWEEN PARTIES.

          (1) NONRELIANCE. It is not relying on any statement or representation
          of the other party regarding the Transaction (whether written or
          oral), other than the representations expressly made in this Agreement
          or the Confirmation in respect of that Transaction.

          (2) EVALUATION AND UNDERSTANDING.

               (i) It is acting for its own account and has the capacity to
               evaluate (internally or through independent professional advice)
               the Transaction and has made its own decision to enter into the
               Transaction; it is not relying on any communication (written or
               oral) of the other party as investment advice or as a
               recommendation to enter into such transaction; it being
               understood that information and explanations related to the terms
               and conditions of such transaction shall not be considered
               investment advice or a recommendation to enter into such
               transaction. No communication (written or oral) received from the
               other party shall be deemed to be an assurance or guarantee as to
               the expected results of the transaction; and

               (ii) It understands the terms, conditions and risks of the
               Transaction and is willing and able to accept those terms and
               conditions and to assume (and does, in fact assume) those risks,
               financially and otherwise.

          (3) PRINCIPAL. The other party is not acting as a fiduciary or an
          advisor for it in respect of this Transaction.

                                     M1-10

<PAGE>

     (h) EXCLUSION FROM COMMODITY EXCHANGE ACT. (1) It is an "eligible contract
     participant" within the meaning of Section 1a(12) of the Commodity Exchange
     Act, as amended; (2) this Agreement and each Transaction is subject to
     individual negotiation by such party; and (3) neither this Agreement nor
     any Transaction will be executed or traded on a "trading facility" within
     the meaning of Section 1a(33) of the Commodity Exchange Act, as amended.

     (i) SWAP AGREEMENT. Each Transaction is a "swap agreement" as defined in 12
     U.S.C. Section 1821(e)(8)(D)(vi) and a "covered swap agreement" as defined
     in the Commodity Exchange Act (7 U.S.C. Section 27(d)(1))."

(l) RECORDING OF CONVERSATIONS. Each party (i) consents to the recording of
telephone conversations between the trading, marketing and other relevant
personnel of the parties in connection with this Agreement or any potential
Transaction, (ii) agrees to obtain any necessary consent of, and give any
necessary notice of such recording to, its relevant personnel and (iii) agrees,
to the extent permitted by applicable law, that recordings may be submitted in
evidence in any Proceedings.

Part 5. OTHER PROVISIONS.

(a) WAIVER OF JURY TRIAL. Each party waives any right it may have to a trial by
jury in respect of any Proceedings relating to this Agreement or any Credit
Support Document.

(b) SEVERABILITY. If any term, provision, covenant, or condition of this
Agreement, or the application thereof to any party or circumstance, shall be
held to be invalid or unenforceable (in whole or in part) for any reason, the
remaining terms, provisions, covenants, and conditions hereof shall continue in
full force and effect as if this Agreement had been executed with the invalid or
unenforceable portion eliminated, so long as this Agreement as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Agreement and the deletion of such
portion of this Agreement will not substantially impair the respective benefits
or expectations of the parties. The parties shall endeavor to engage in good
faith negotiations to replace any invalid or unenforceable term, provision,
covenant or condition with a valid or enforceable term, provision, covenant or
condition, the economic effect of which comes as close as possible to that of
the invalid or unenforceable term, provision, covenant or condition.

(c) SET-OFF. All payments under this Agreement shall be made without set-off or
counterclaim, except as provided in Section 2(c), Section 6 or the provisions
hereof relating to Market Quotation and Loss, or Paragraph 8 of the Credit
Support Annex. Section 6(e) is amended by deleting the following sentence: "The
amount, if any, payable in respect of an Early Termination Date and determined
pursuant to this Section will be subject to any Set-off." For the avoidance of
doubt, if more than one Transaction is entered into under this Agreement,
nothing herein is intended to prevent the determination of a Settlement Amount
with respect to all such Transactions pursuant to Section 6 (as modified
hereby).

(d) FAILURE TO PAY OR DELIVER. Section 5(a)(i) is hereby amended by replacing
the word "third" by the word "second" in the third line thereof.

(e) NON-RECOURSE. Notwithstanding any provision herein or in this Agreement to
the contrary, the obligations of the Trust hereunder are limited recourse
obligations of the Trust, payable solely from amounts on deposit in the Corridor
Account . In the event that the Corridor Account and proceeds thereof should be
insufficient to satisfy all claims outstanding and following the realization of
the Corridor Account and the distribution of the proceeds thereof in accordance
with the Pooling and Servicing Agreement, any claims against or obligations of
the Trust under this Agreement or any confirmation hereunder still outstanding
shall be extinguished and thereafter not revive. This provision shall survive
the termination of this Agreement.

(f) LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. Party A shall not
institute against or cause any other person to institute against, or join any
other person in instituting against Party B, the Depositor or the Trust, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
under any of the laws of the United States or any other jurisdiction, for a
period of one year and one day (or, if longer, the applicable preference period)
following indefeasible payment in full of the Certificates. This provision shall
survive the termination of this Agreement.

(g) TRANSFER, ASSIGNMENT. Notwithstanding the provisions of Sections 6(b)(ii)
and 7, no novation, assignment or transfer of any Transaction shall be permitted
by either party, unless the Rating Agency Condition with respect to each Rating
Agency is satisfied with respect thereto, except that Party A may, if

                                     M1-11

<PAGE>

each Rating Agency and the non-assigning party has received prior written notice
thereof (1) transfer all or any part of its interest in any amount payable to it
if Party B is a Defaulting Party under Section 6(e) or (2) effect a Permitted
Transfer of this Agreement to any other entity at any time (A) Party A or any
guarantor under a Qualified Guaranty has Limited Qualifying Ratings or
Disqualifying Ratings, (B) pursuant to Section 6(b)(ii), (C) pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity, (D) to another of its
offices or branches; or (E) to an Affiliate. The consent of Party B shall not be
required for a novation, assignment or transfer by Party A in accordance with
clauses (1) and (2) of the preceding sentence and Party B shall take all steps
reasonably requested by Party A (at the expense of Party A) to effect a
Permitted Transfer. A "PERMITTED TRANSFER" means a novation or assignment to or
entry into another form of Replacement Transaction pursuant to which a Qualified
Transferee acquires and assumes or enters into a Replacement Transaction by a
written instrument in respect of all the Transactions and the rights,
liabilities, duties and obligations of Party A hereunder and with respect to
which (1) there is no adverse effect on netting or set-off rights, (2) neither
Party A nor the transferee will be required to withhold or deduct on account of
any Tax from any payments under this Agreement in excess of what would have been
required to be withheld or deducted in the absence of such transfer, (3) an
Event of Default or Termination Event would not occur as a result, and (4) (x)
with respect to any Rating Agency, the terms of the Transactions are not
modified other than parties, effective date of said transfer, and tax payee
representations of Party A (and in such case, it shall not be a condition of
such Replacement Transaction that it preserve for Party B the economic
equivalent of all payment and delivery obligations hereunder and be in all
material respects no less beneficial for Party B than those of the
Transactions), or (y) with respect to Moody's, the terms of the Transactions are
modified to a greater extent than provided in (x) but the definition of
Replacement Transaction is otherwise complied with.

(h) AMENDMENT. Notwithstanding the provisions of Section 9(b), each amendment,
modification or waiver in respect of this Agreement shall be subject to the
Rating Agency Condition with respect to each Rating Agency.

(i) RATINGS DOWNGRADE.

     (i)DEFINITIONS. For purposes of each Transaction:

          (A) "RATING AGENCY CONDITION" means, with respect to any action taken
          or to be taken hereunder, a condition that is satisfied when the
          relevant Rating Agency has confirmed in writing to the Trustee that
          such action will not result in withdrawal, reduction or other adverse
          action with respect to any then-current rating by the Rating Agency of
          the Certificates.

          (B) RATINGS: The ratings assigned or withdrawn by a Rating Agency with
          respect to the unsecured and unguaranteed debt of Party A or any
          guarantor under a Qualified Guaranty, in the cases when such debt has
          both short-term and long-term debt ratings and when such debt has only
          long-term ratings, will be "QUALIFYING RATINGS", "LIMITED QUALIFYING
          RATINGS" and "DISQUALIFYING RATINGS", as identified below:

                                     M1-12

<PAGE>

<TABLE>
<CAPTION>
                                                               RATINGS OF PARTY A OR
                                                            GUARANTOR UNDER A QUALIFIED
                  RATING AGENCY:                                     GUARANTY:
                  --------------                     -----------------------------------------
<S>                                                  <C>                    <C>
                                                     HAS LONG-TERM AND      HAS ONLY LONG-TERM
                                                     SHORT-TERM RATINGS     RATINGS

                                                             "QUALIFYING RATINGS":
MOODY'S:                                             P-1 and A2 or above    A1 or above
S&P:                                                 A-1 or above           A+ or above
FITCH:                                               F1 and A or above      A or above

                                                           "LIMITED QUALIFYING RATINGS":
MOODY'S:                                             P-2 or A3              A2 or A3
S&P:  If Party A or guarantor under a Qualified      A-2                    A, A- or BBB+
Guaranty is a Financial Institution:
FITCH:                                               F2 or A-               A-

                                                             "DISQUALIFYING RATINGS":*
MOODY'S:                                             P-3 or Baa1 or below   Baa1 or below
S&P:
If Party A or guarantor under a Qualified Guaranty   A-3 or below           BBB or below
is a Financial Institution:(Financial Institution)

If neither Party A nor guarantor under a Qualified   A-2 or below           A or below
Guaranty is a Financial Institution:(Other)
FITCH:                                               F3 or BBB or below     BBB or below
</TABLE>

*    The withdrawal by Moody's of the short-term rating, or, if there is no
     short-term rating, the long-term rating, and the withdrawal by any other
     Rating Agency of all ratings will be treated as a Disqualifying Rating
     unless the Rating Agency Condition is satisfied with respect thereto.

          (C) "FINANCIAL INSTITUTION" means a bank, broker/dealer, insurance
          company, structured investment vehicle or derivative product company.

          (D) "QUALIFIED TRANSFEREE" means a transferee of a novation or
          assignment or a party (other than Party B) that enters into another
          form of Replacement Transaction that is a Reference Market-maker
          ("dealer" in the definition thereof meaning a "dealer in notional
          principal contracts" as defined in Treas. Reg. Section 1.1001-4) that
          has Qualifying Ratings or Limited Qualifying Ratings assigned by each
          Rating Agency, or whose present and future obligations owing to Party
          B are guaranteed pursuant to a Qualified Guaranty.

          (E) "QUALIFIED GUARANTY" means an unconditional and irrevocable
          guaranty of payment (and not of collection) and the performance of the
          other obligations of Party A (or a Qualified Transferee, as
          applicable) hereunder by a third party that has Qualifying Ratings or
          Limited Qualifying Ratings assigned by each Rating Agency ("QUALIFIED
          GUARANTOR") in a form that satisfies the S&P Rating Condition and that
          provides, inter alia, that payment thereunder shall be made as
          provided and on the conditions set forth in Section 2(d) as modified
          hereunder (substituting references to Party A as "X" with the
          guarantor as "X" and "this Agreement" with such guaranty,
          respectively) (or, in lieu of such provisions relating to tax, a law
          firm has given a legal opinion confirming that none of the guarantor's
          payments to Party B under such guaranty will be subject to withholding
          for Tax).

     (ii) POSTING OF COLLATERAL. If Party A or any guarantor under a Qualified
     Guaranty is assigned Limited Qualifying Ratings or Disqualifying Ratings by
     a Rating Agency, then, within, with respect to:

                                     M1-13

<PAGE>

          (1) MOODY'S: thirty (30) Local Business Days

          (2) S&P: ten (10) Local Business Days

          (3) FITCH: thirty (30) calendar days

     thereafter (or if such ratings exist from the time Party A becomes a party
     hereto or the guarantor under a Qualified Guaranty becomes such guarantor,
     from such time), and for so long as such Limited Qualifying Ratings or
     Disqualifying Ratings continue, Party A shall, at its own expense, post
     collateral in accordance with the Credit Support Annex.

     (iii) REPLACEMENT OR GUARANTY. If Party A or any guarantor under a
     Qualified Guaranty is assigned Disqualifying Ratings by a Rating Agency,
     then, within, with respect to:

          (1) MOODY'S: thirty (30) Local Business Days

          (2) S&P: sixty (60) calendar days

          (3) FITCH: thirty (30) calendar days

     thereafter, Party A shall, at its own expense, (x) novate, assign or
     transfer the Transactions to or replace the Transactions with Replacement
     Transactions with a Qualified Transferee, or (y) obtain a Qualified
     Guaranty.

(j) REGULATION AB.

     (a) If the Depositor under the Pooling and Servicing Agreement still has a
     reporting obligation with respect to this Transaction pursuant to
     Regulation AB under the Securities Act of 1933, as amended, and the
     Securities Exchange Act of 1934, as amended ("REGULATION AB") and Party A
     has not, within 30 days after receipt of a Swap Disclosure Request complied
     with the provisions set forth below in this Part 5(j) (provided that if the
     significance percentage reaches 10% after a Swap Disclosure Request has
     been made to Party A, Party A must comply with the provisions set forth
     below in this Part 5(j) within 10 calendar days of Party A being informed
     of the significance percentage reaching 10%), then an Additional
     Termination Event shall have occurred with respect to Party A and Party A
     shall be the sole Affected Party with respect to such Additional
     Termination Event.

     (b) Party A acknowledges that for so long as there are reporting
     obligations with respect to this Transaction under Regulation AB, the
     Depositor is required under Regulation AB to disclose certain information
     set forth in Regulation AB regarding Party A or its group of affiliated
     entities, if applicable, depending on the aggregate "significance
     percentage" of this Agreement and any other derivative contracts between
     Party A or its group of affiliated entities, if applicable, and the Party
     B, as calculated from time to time in accordance with Item 1115 of
     Regulation AB.

     (c) If the Depositor determines, reasonably and in good faith, that the
     significance percentage of this Agreement has increased to eight (8)
     percent, then the Depositor may request on a Business Day after the date of
     such determination from Party A the same information set forth in Item
     1115(b) of Regulation AB that would have been required if the significance
     percentage had in fact increased to ten (10) percent (such request, a "SWAP
     DISCLOSURE REQUEST" and such requested information, subject to the last
     sentence of this paragraph, is the "SWAP FINANCIAL DISCLOSURE"). The Party
     B or the Depositor shall provide Party A with the calculations and any
     other information reasonably requested by Party A with respect to the
     Depositor's determination that led to the Swap Disclosure Request. The
     parties hereto further agree that the Swap Financial Disclosure provided to
     meet the Swap Disclosure Request may be, solely at Party A's option, either
     the information set forth in Item 1115(b)(1) or Item 1115(b)(2) of
     Regulation AB.

     (d) Upon the occurrence of a Swap Disclosure Request, Party A, at its own
     expense, shall (x) provide the Depositor with the Swap Financial Disclosure
     in an Edgar-compatible format, or (y) subject to Rating Agency Condition
     with respect to each Rating Agency, secure another entity to replace Party
     A as party to this Agreement on terms substantially similar to this
     Agreement which entity is able to provide the Swap Financial Disclosure. If
     permitted by Regulation AB, any required Swap Financial Disclosure may be
     provided by incorporation by reference from reports filed pursuant to the
     Securities Exchange Act.

                                     M1-14

<PAGE>

     (e) Party A's obligation to comply with this Paragraph 4(9) shall be
     suspended as of January 1, 2008 unless, at any time, Party A receives
     notification from the Depositor or the Party B that the Trust Fund's
     obligation to file periodic reports under the Exchange Act shall continue;
     provided, however, that such obligations shall not be suspended in respect
     of any Exchange Act Report or amendment to an Exchange Act Report in such
     fiscal year which relates to any fiscal year in which the Trust Fund was
     subject to the reporting requirements of the Exchange Act. This obligation
     shall continue to be suspended unless the Depositor or the Party B notifies
     Party A that the Trust Fund's obligations to file reports under the
     Exchange Act has resumed.

(k) TRUSTEE 'S CAPACITY. It is expressly understood and agreed by the parties
hereto that, insofar as this Agreement and any confirmation evidencing a
Transaction hereunder is executed by LaSalle Bank National Association, (i) this
Agreement and such confirmation are executed and delivered by LaSalle Bank
National Association, not in its individual capacity but solely as Trustee of
the Trust pursuant to the Pooling and Servicing Agreement in the exercise of the
powers and authority conferred upon and vested in it thereunder, and pursuant to
instruction set forth therein, (ii) each of the representations, undertakings
and agreements herein or therein made on behalf of the Trust is made and
intended not as a personal representation, undertaking or agreement of LaSalle
Bank National Association but is made and intended for the purpose of binding
only the Trust, and (iii) under no circumstances will LaSalle Bank National
Association, in its individual capacity, be personally liable for the payment of
any indebtedness or expenses or be personally liable for the breach or failure
of any obligation, representation, warranty or covenant made or undertaken under
this Agreement or any such confirmation

(l) TRUSTEE'S REPRESENTATION. LaSalle Bank National Association, as Trustee of
the Trust, represents and warrants that:

     It has been directed under the Pooling and Servicing Agreement to enter
     into this Agreement and each confirmation evidencing a Transaction
     hereunder as Trustee on behalf of the Trust.

(m) ADDITIONAL PROVISIONS. Notwithstanding the terms of Sections 5 and 6, if
Party B has satisfied its payment obligations under Section 2(a)(i), and shall,
at the time, have no future payment or delivery obligation, whether absolute or
contingent, then unless Party A is required pursuant to appropriate proceedings
to return to Party B or otherwise returns to Party B upon demand of Party B any
portion of such payment, (a) the occurrence of an event described in Section
5(a) with respect to Party B shall not constitute an Event of Default or
Potential Event of Default with respect to Party B as the Defaulting Party and
(b) Party A shall be entitled to designate an Early Termination Date pursuant to
Section 6 only as a result of a Termination Event set forth in either Section
5(b)(i) or Section 5(b)(ii) with respect to Party A as the Affected Party or
Section 5(b)(iii) with respect to Party A as the Burdened Party or Part 1(g)
with Party B as the Affected Party.

(n) RETURN OF AMOUNTS RECEIVED BY MLML OR ITS AFFILIATES. Merrill Lynch Mortgage
Lending, Inc. ("MLML") agrees and acknowledges that amounts paid hereunder are
not intended to benefit the holder of any class of Certificates rated by any
Rating Agency if such holder is MLML or any of its affiliates. If MLML or any of
its affiliates receives any such amounts, it will promptly remit (or, if such
amounts are received by an affiliate of MLML, MLML hereby agrees that it will
cause such affiliate to promptly remit) such amounts to the Trustee, whereupon
such Trustee will promptly remit such amounts to Party A. MLML further agrees to
provide notice to Party A upon any remittance to the Trustee.

                                     M1-15

<PAGE>

5. ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

     PAYMENTS TO Party A:

          The Bank of New York
          Derivative Products Support Department
          32 Old Slip, 16th Floor
          New York, New York 10286
          Attention: Renee Etheart
          ABA #021000018
          Account #890-0068-175
          Reference: Interest Rate Swap

     PAYMENTS TO PARTY B:

          LaSalle Bank
          ABA# 071000505
          LaSalle CHGO/CTR/BNF:/LASALLE TRUST
          A/C# 725059.2

     6. COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                     M1-16

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

THE BANK OF NEW YORK

A. BY:
       ------------------------------
Name:
Title:

                                     M1-17

<PAGE>

     The Party B, acting through its duly authorized signatory, hereby agrees
to, accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
TRUSTEE FOR THE MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5

B. BY:
       ------------------------------
Name:
Title:

Solely with respect to Part 5(n)

II.MERRILL LYNCH MORTGAGE LENDING, INC.

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

                                     M1-18

<PAGE>

                                   SCHEDULE I

(all such dates subject adjustment in accordance with the Modified Following
Business Day Convention)

<TABLE>
<CAPTION>
                          Notional
From and      To but       Amount     Cap Rate   Ceiling Rate
including   excluding     (in USD)       (%)         (%)
---------   ---------   -----------   --------   ------------
<S>         <C>         <C>           <C>        <C>
10/10/07     10/25/07   241,175,000     10.150      10.150
10/25/07     11/25/07   238,997,799      7.081      10.150
11/25/07     12/25/07   236,388,721      7.345      10.150
12/25/07     01/25/08   233,351,196      7.081      10.150
01/25/08     02/25/08   229,887,572      7.081      10.150
02/25/08     03/25/08   226,006,147      7.628      10.150
03/25/08     04/25/08   221,712,867      7.081      10.150
04/25/08     05/25/08   217,019,593      7.345      10.150
05/25/08     06/25/08   211,940,469      7.080      10.150
06/25/08     07/25/08   206,562,404      7.345      10.150
07/25/08     08/25/08   200,954,372      7.080      10.150
08/25/08     09/25/08   195,430,460      7.080      10.150
09/25/08     10/25/08             0      0.000       0.000
10/25/08     11/25/08             0      0.000       0.000
11/25/08     12/25/08             0      0.000       0.000
12/25/08     01/25/09             0      0.000       0.000
01/25/09     02/25/09             0      0.000       0.000
02/25/09     03/25/09             0      0.000       0.000
03/25/09     04/25/09             0      0.000       0.000
04/25/09     05/25/09             0      0.000       0.000
05/25/09     06/25/09             0      0.000       0.000
06/25/09     07/25/09             0      0.000       0.000
07/25/09     08/25/09             0      0.000       0.000
08/25/09     09/25/09             0      0.000       0.000
09/25/09     10/25/09             0      0.000       0.000
10/25/09     11/25/09             0      0.000       0.000
11/25/09     12/25/09             0      0.000       0.000
12/25/09     01/25/10             0      0.000       0.000
01/25/10     02/25/10             0      0.000       0.000
02/25/10     03/25/10             0      0.000       0.000
03/25/10     04/25/10             0      0.000       0.000
04/25/10     05/25/10             0      0.000       0.000
05/25/10     06/25/10             0      0.000       0.000
06/25/10     07/25/10             0      0.000       0.000
07/25/10     08/25/10             0      0.000       0.000
08/25/10     09/25/10             0      0.000       0.000
09/25/10     10/25/10             0      0.000       0.000
10/25/10     11/25/10             0      0.000       0.000
11/25/10     12/25/10             0      0.000       0.000
12/25/10     01/25/11             0      0.000       0.000
01/25/11     02/25/11             0      0.000       0.000
</TABLE>

                                     M1-19

<PAGE>

<TABLE>
<S>         <C>         <C>           <C>        <C>
02/25/11     03/25/11             0      0.000       0.000
03/25/11     04/25/11             0      0.000       0.000
04/25/11     05/25/11             0      0.000       0.000
05/25/11     06/25/11             0      0.000       0.000
06/25/11     07/25/11             0      0.000       0.000
07/25/11     08/25/11    54,166,151     10.864      12.000
08/25/11     09/25/11    52,917,358     10.638      12.000
09/25/11     10/25/11    51,697,172     10.655      12.000
10/25/11     11/25/11    50,504,937     10.223      12.000
11/25/11     12/25/11    49,340,008     10.282      12.000
12/25/11     01/25/12    48,201,758      9.862      12.000
01/25/12     02/25/12    47,089,572      9.688      12.000
02/25/12     03/25/12    46,002,850     10.046      12.000
03/25/12     04/25/12    44,941,008      9.374      12.000
04/25/12     05/25/12    43,903,473      9.476      12.000
05/25/12     06/25/12    42,861,824      9.082      12.000
06/25/12     07/25/12    40,875,659      9.422      12.000
07/25/12     08/25/12    38,930,205      9.693      12.000
08/25/12     09/25/12    37,086,420      9.629      12.000
09/25/12     10/25/12    35,339,416      9.165      12.000
10/25/12     11/25/12    33,704,527      8.862      12.000
11/25/12     12/25/12    32,879,669      9.155      12.000
12/25/12     01/25/13    32,123,711      9.006      12.000
01/25/13     02/25/13    31,385,444      9.506      12.000
02/25/13     03/25/13    30,664,737     10.569      12.000
03/25/13     04/25/13    29,960,420      9.544      12.000
04/25/13     05/25/13    29,272,045      9.861      12.000
05/25/13     06/25/13    28,599,249      9.541      12.000
06/25/13     07/25/13    27,941,676     10.007      12.000
07/25/13     08/25/13    27,299,399     10.179      12.000
08/25/13     09/25/13    26,672,225     10.218      12.000
09/25/13     10/25/13    26,059,274     10.556      12.000
10/25/13     11/25/13    25,460,165     10.213      12.000
11/25/13     12/25/13    24,874,586     10.550      12.000
12/25/13     01/25/14    24,302,229     10.351      12.000
01/25/14     02/25/14    23,743,114     10.841      12.000
02/25/14     03/25/14    23,197,026     12.000      12.000
03/25/14     04/25/14    22,663,290     10.875      12.000
04/25/14     05/25/14    22,141,585     11.233      12.000
05/25/14     06/25/14    21,631,639     10.867      12.000
</TABLE>

                                     M1-20

<PAGE>

                       Exhibit A to Confirmation No. 39955

                   [Credit Support Annex to follow this page]

                                     M1-21
<PAGE>

                                   EXHIBIT M-2

                     FORM OF CLASS 2-A CAP CORRIDOR CONTRACT

                                                     (THE BANK OF NEW YORK LOGO)

                                                         Dated: October 10, 2007

                              RATE CAP TRANSACTION

                           RE: BNY REFERENCE NO. 39956

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Cap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("PARTY A"), a
trust company duly organized and existing under the laws of the State of New
York, and the Trust relating to the Merrill Lynch First Franklin Mortgage Loan
Trust, Series 2007-5 (the "PARTY B"), as represented by LaSalle Bank National
Association, not in its individual capacity, but solely as Trustee under the
Pooling and Servicing Agreement, dated and effective September 1, 2007, among
Merrill Lynch Mortgage Investments, Inc., as Depositor, Home Loan Services,
Inc., as Servicer and LaSalle Bank National Association, as Trustee (the
"POOLING AND SERVICING AGREEMENT"). This Agreement, which evidences a complete
and binding agreement between you and us to enter into the Transaction on the
terms set forth below, constitutes a "CONFIRMATION" as referred to in the "ISDA
FORM MASTER AGREEMENT" (as defined below), as well as a "Schedule" as referred
to in the ISDA Form Master Agreement.

     1. FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA
Definitions (the "DEFINITIONS"), as published by the International Swaps and
Derivatives Association, Inc. ("ISDA"). Any reference to a "Swap Transaction" in
the Definitions is deemed to be a reference to a "Transaction" for purposes of
this Agreement, and any reference to a "Transaction" in this Agreement is deemed
to be a reference to a "Swap Transaction" for purposes of the Definitions. You
and we have agreed to enter into this Agreement in lieu of negotiating a
Schedule to the 1992 ISDA Master Agreement (Multicurrency--Cross Border) form
(the "ISDA FORM MASTER AGREEMENT"). An ISDA Form Master Agreement, as modified
by the Schedule terms in Paragraph 4 of this Confirmation (the "MASTER
AGREEMENT"), shall be deemed to have been executed by you and us on the date we
entered into the Transaction. For the avoidance of doubt, the Transaction
described herein shall be the sole Transaction governed by such ISDA Form Master
Agreement. Except as otherwise specified, references herein to Sections shall be
to Sections of the Master Agreement, and references to Paragraphs shall be to
paragraphs of this Agreement. Each party hereto agrees that the Master Agreement
deemed to have been executed by the parties hereto shall be the same Master
Agreement referred to in the agreement setting forth the terms of transaction
reference number 39955 and 39957. In the event of any inconsistency between the
provisions of this Agreement and the Definitions or the Master Agreement, this
Agreement shall prevail for purposes of the Transaction. Capitalized terms not
otherwise defined herein or in the Definitions or the Master Agreement shall
have the meaning defined for such term in the Pooling and Servicing Agreement.

     2. CERTAIN TERMS. The terms of the particular Transaction to which this
Confirmation relates are as follows:

<TABLE>
<S>                             <C>
   Type of Transaction:         Rate Cap

   Notional Amount:             With respect to any Calculation Period, the
                                lesser of: (i) the amount set forth on Schedule
                                I attached hereto for such Calculation Period
                                and (ii) the aggregate Certificate Principal
                                Balance of the Class 2-A Certificates (as
                                defined in the Pooling and Servicing Agreement)
                                for such Floating Rate Payer Payment Date.

                                The Trustee under the Pooling and Servicing
                                Agreement shall provide at least two (2)
                                business days notice prior to each Floating Rate
                                Payer Payment Date for each Calculation Period
                                to The Bank of New York if the aggregate
                                Certificate Principal
</TABLE>

                                      M2-1

<PAGE>

<TABLE>
<S>                             <C>
                                Balance of Class 2-A Certificates is less than
                                the Schedule I attached hereto

   Trade Date:                  October 5, 2007

   Effective Date:              October 10, 2007

   Termination Date:            February 25, 2014, subject to adjustment in
                                accordance with the Modified Following Business
                                Day Convention.

FIXED AMOUNTS

   Fixed Amount Payer:          Party B has directed Merrill Lynch Mortgage
                                Lending, Inc. to make payment of the Fixed
                                Payment Amount on its behalf.

   Fixed Amount:                USD [_]

   Fixed Amount Payer
   Payment Date:                October 10, 2007

FLOATING AMOUNTS

   Floating Rate Payer:         Party A

   Cap Rate:                    For each Calculation Period, as set forth for
                                such period on Schedule I attached hereto.

   Ceiling Rate:                For each Calculation Period, as set forth for
                                such period on Schedule I attached hereto.

   Floating Rate for initial
   Calculation Period:          To be determined

   Floating Rate Day Count
   Fraction:                    Actual/360

   Floating Rate Option:        USD-LIBOR-BBA, provided, however, if the
                                Floating Rate Option for a Calculation Period is
                                greater than the Ceiling Rate then the Floating
                                Rate Option for such Calculation Period shall be
                                deemed equal to the Ceiling Rate.

   Designated Maturity:         One month

   Spread:                      Inapplicable

   Floating Rate Payer
   Period End Dates:            The 25th day of each month, beginning on October
                                25, 2007 and ending on the Termination Date,
                                subject to adjustment in accordance with the
                                Modified Following Business Day Convention.

   Floating Rate Payer

   Payment Dates:               Early Payment shall be applicable. The Floating
                                Rate Payer Payment Date shall be one (1)
                                Business Day preceding each Floating Rate Payer
                                Period End Date.

   Reset Dates:                 The first day of each Calculation Period

   Compounding:                 Inapplicable

   Business Days for Payments
</TABLE>

                                      M2-2

<PAGE>

<TABLE>
<S>                             <C>
   By both parties:             New York and Illinois

   Calculation Agent:           Party A
</TABLE>

     3. ADDITIONAL PROVISIONS:

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
other party has engaged in (or refrained from engaging in) substantial financial
transactions and has taken (or refrained from taking) other material actions in
reliance upon the entry by the parties into the Transaction being entered into
on the terms and conditions set forth herein.

     4. PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

RATING AGENCY AND RELATED DEFINITIONS. When more than one Rating Agency rates
the Certificates, such terms refer to each Rating Agency and its criteria
separately rather than collectively.

"RATING AGENCY" .means, so long as it rates the Certificates, each of:

     (1) "MOODY'S": Moody's Investors Service Inc.

     (2) "S&P": Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

     (3) "FITCH": Fitch, Inc., Fitch Ratings, Ltd., Derivative Fitch, Inc., or
     Derivative Fitch Ltd., or any subsidiary, or successor thereof.

"RATING AGENCY CONDITION", "QUALIFYING RATINGS", "LIMITED QUALIFYING RATINGS",
and "DISQUALIFYING RATINGS" have the meanings assigned in Part 5(i)(i).

The use of the name of a Rating Agency or its use prior to such terms in a
provision indicates that such provision (or the applicable portion thereof)
applies only with respect to the requirements of such Rating Agency, and
excludes reference to the other Rating Agencies.

DEFINITIONS INCORPORATED BY REFERENCE. Capitalized terms used in this Agreement
that are not defined herein and are defined in the Pooling and Servicing
Agreementhave the meanings assigned therein. In the event of any inconsistency
between the terms of this Agreement and the terms of the Pooling and Servicing
Agreement, this Agreement will govern.

Part 1. TERMINATION PROVISIONS.

(a)  "SPECIFIED ENTITY" in relation to Party A or Party B shall mean: none.

(b)  "SPECIFIED TRANSACTION" will have the meaning specified in Section 14.

(c)  APPLICABILITY. The following provisions apply or do not apply to the
     parties as specified below:

     (i)  Section 5(a)(i) (FAILURE TO PAY OR DELIVER):

          (A)  will apply to Party A; and

          (B)  will apply to Party B.

     (ii) Section 5(a)(ii) (BREACH OF AGREEMENT):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B.

     (iii) Section 5(a)(iii) (CREDIT SUPPORT DEFAULT):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B;

          provided, that, with respect to Moody's Limited Qualifying Ratings and
          Moody's Disqualifying Ratings, (x) this will apply only to Moody's
          Disqualifying Ratings that have continued for at least 30 Local
          Business Days, and (y) at least one Qualified

                                      M2-3

<PAGE>

          Transferee has made an offer which remains capable of becoming legally
          binding upon acceptance to enter into a Permitted Transfer or other
          Replacement Transaction.

     (iv) Section 5(a)(iv) (MISREPRESENTATION):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B.

     (v)  Section 5(a)(v) (DEFAULT UNDER SPECIFIED TRANSACTION):

          (A)  will not apply to Party A; and

          (B)  will not apply to Party B.

     (vi) Section 5(a)(vi) (CROSS DEFAULT):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B.

          For the purposes of Section 5(a)(vi):

          "SPECIFIED INDEBTEDNESS" will have the meaning specified in Section
          14, except that it shall not include indebtedness in respect of
          deposits received.

          "THRESHOLD AMOUNT" means, 3% of consolidated shareholders equity of
          Party A (or any guarantor under a Qualified Guaranty) and its
          subsidiaries determined in accordance with generally accepted
          accounting principles in the jurisdiction of its organization
          consistently applied as of the last day of the fiscal year ended
          immediately prior to the occurrence or existence of an event for which
          a Threshold Amount is applicable under Section 5(a)(vi).

     (vii) Section 5(a)(vii) (BANKRUPTCY):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B with respect to subclauses (2), (4)
               (but only if the proceeding or petition is instituted or
               presented by Party A or its affiliates), (7), (8) (but subclause
               (8) will not apply to Party B only to the extent that subclauses
               (2), (4) and (7) do not apply to Party B) and (9) of Section
               5(a)(vii), and the remaining provisions of Section 5(a)(vii) will
               apply to Party B; and in subclause (6) the words "trustee" and
               "custodian" will not include the Trustee and the words "seeks or"
               will be deleted.

     (viii) Section 5(a)(viii) (MERGER WITHOUT ASSUMPTION):

          (A)  will apply to Party A; and

          (B)  will apply to Party B.

     (ix) Section 5(b)(i) (ILLEGALITY):

          (A)  will apply to Party A; and

          (B)  will apply to Party B.

     (x)  Section 5(b)(ii) (TAX EVENT):

          (A)  will apply to Party A; and

          (B)  will apply to Party B;

          provided that the words "(x) any action taken by a taxing authority,
          or brought in a court of competent jurisdiction, on or after the date
          on which a Transaction is entered into (regardless of whether such
          action is taken or brought with respect to a party to this Agreement)
          or (y)" shall be deleted.

     (xi) Section 5(b)(iii) (TAX EVENT UPON MERGER):

          (A)  will apply to Party A; and

          (B)  will apply to Party B,

                                      M2-4

<PAGE>

          provided, that Party A shall not be entitled to designate an Early
          Termination Date by reason of a Tax Event upon Merger in respect of
          which it is the Affected Party.

     (xii) Section 5(b)(iv) (CREDIT EVENT UPON MERGER):

          (A)  will not apply to Party A; and

          (B)  will not apply to Party B.

     (xiii) Section 5(b)(v) (ADDITIONAL TERMINATION EVENT):

          (A)  will apply to Party A with respect to Part 1(g)(iv) and (v); and

          (B)  will apply to Party B with respect to Parts 1(g)(i), (ii), and
               (iii).

(d) The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a):

          (A)  will not apply to Party A; and

          (B)  will not apply to Party B.

(e) PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e), the Second
Method and Market Quotation will apply. For such purpose, if Party A is the
Affected Party in respect of an Additional Termination Event or a Tax Event Upon
Merger or the Defaulting Party in respect of any Event of Default (but not, in
any case, in respect of a Termination Event arising from an Illegality or Tax
Event), the following provisions shall apply:

     (i) The definitions of "Market Quotation" and "Settlement Amount" are
     amended in their entirety to read as follows:

          "MARKET QUOTATION" means, with respect to one or more Terminated
          Transactions, an offer capable when made of becoming legally binding
          upon acceptance made by a Qualified Transferee for an amount that
          would be paid to Party B (expressed as a negative number) or by Party
          B (expressed as a positive number) in consideration of an agreement
          between Party B and such Qualified Transferee to enter into a
          transaction with commercial terms substantially the same as and are,
          in all material respects, no less beneficial for Party B than, those
          of this Agreement (save for the exclusion of provisions relating to
          Transactions that are not Terminated Transactions) (which shall be
          determined by Party B, acting in a commercially reasonable manner),
          that would have the effect of preserving the economic equivalent for
          Party B of any payment or delivery (whether the underlying obligation
          was absolute or contingent and assuming the satisfaction of each
          applicable condition precedent) by the parties under Section 2(a)(i)
          in respect of such Terminated Transactions or group of Terminated
          Transactions that would, but for the occurrence of the relevant Early
          Termination Date, have been required after that date (such
          transaction, a "REPLACEMENT TRANSACTION"). For this purpose, Unpaid
          Amounts in respect of the Terminated Transaction or group of
          Transactions are to be excluded but, without limitation, any payment
          or delivery that would, but for the relevant Early Termination Date,
          have been required (assuming satisfaction of each applicable condition
          precedent) after that Early Termination Date is to be included.

          "SETTLEMENT AMOUNT" means, with respect to any Early Termination Date:

          (1) if, on or prior to such Early Termination Date, a Market Quotation
          for the relevant Terminated Transaction or group of Terminated
          Transactions is accepted by Party B so as to become legally binding:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of such Market Quotation;

          (2) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions
          has been accepted by Party B so as to become legally binding and one
          or more Market Quotations have been communicated to Party B and remain
          capable of becoming legally binding upon acceptance by Party B:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of the lowest of such Market Quotations

                                      M2-5

<PAGE>

                    (for the avoidance of doubt, (x) a Market Quotation
                    expressed as a negative number is lower than a Market
                    Quotation expressed as a positive number and (y) the lower
                    of two Market Quotations expressed as negative numbers is
                    the one with the largest absolute value); or

          (3) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions is
          accepted by Party B so as to become legally binding and no Market
          Quotations have been communicated to Party B and remain capable of
          becoming legally binding upon acceptance by Party B:

               Party B's Loss (whether positive or negative and without
               reference to any Unpaid amounts) for the relevant Terminated
               Transaction or group of Terminated Transactions."

     (ii) At any time on or before the Early Termination Date at which two or
     more Market Quotations remain capable of becoming legally binding upon
     acceptance, Party B shall be entitled to accept only the lowest of such
     Market Quotations. (For the avoidance of doubt, (i) a Market Quotation
     expressed as a negative number is lower than a Market Quotation expressed
     as a positive number and (ii) the lower of two Market Quotations expressed
     as negative numbers is the one with the largest absolute value.)

     (iii) if Party B requests Party A in writing to obtain Market Quotations,
     Party A shall use its reasonable efforts to do so before the Early
     Termination Date.

     (iv) If the Settlement Amount is a negative number, Section 6(e)(i)(3)
     shall be deleted in its entirety and replaced with the following:

          "SECOND METHOD AND MARKET QUOTATION. If Second Method and Market
          Quotation apply, (1) Party B shall pay to Party A an amount equal to
          the absolute value of the Settlement Amount in respect of the
          Terminated Transactions, (2) Party B shall pay to Party A the
          Termination Currency Equivalent of the Unpaid Amounts owing to Party A
          and (3) Party A shall pay to Party B the Termination Currency
          Equivalent of the Unpaid Amounts owing to Party B, Provided that, (i)
          the amounts payable under (2) and (3) shall be subject to netting in
          accordance with Section 2(c) and (ii) notwithstanding any other
          provision of this Agreement, any amount payable by Party A under (3)
          shall not be netted-off against any amount payable by Party B under
          (1)."

(f) "TERMINATION CURRENCY" means United States Dollars.

(g) "ADDITIONAL TERMINATION EVENT" will apply. The following shall constitute
Additional Termination Events, and the party specified shall be the Affected
Party with respect thereto:--

     (i) TERMINATION OF TRUST FUND. The Trust, Supplemental Interest Trust or
     Trust Fund shall be terminated pursuant to any provision of the Pooling and
     Servicing Agreement (including, without limitation, by exercise of the
     option to purchase and giving of notice under Sections 9.01 and 10.01 of
     the Pooling and Servicing Agreement). The Early Termination Date with
     respect to such Additional Termination Event shall be the Distribution Date
     upon which the Trust and the Supplemental Interest Trust or Trust Fund is
     terminated and final payment is made in respect of the Certificates. Party
     B shall be the sole Affected Party. However, each of Party A and Party B
     may designate an Early Termination Date in respect of this Additional
     Termination Event.

     (ii) INABILITY TO PAY CERTIFICATES. The Trust is unable to pay or fails or
     admits in writing its inability to pay (i) on any Distribution Date, any
     Current Interest with respect to the Class A Certificates or (ii) by the
     Distribution Date immediately following the maturity date for the Mortgage
     Loan with the latest maturity date, [the ultimate payment of principal with
     respect to the Class A Certificates, in either case to the extent required
     pursuant to the terms of the Pooling and Servicing Agreement to be paid to
     the Class A Certificates. Party B shall be the sole Affected Party.

     (iii) AMENDMENT OF POOLING AND SERVICING AGREEMENT. The amendment of the
     Pooling and Servicing Agreement in a manner which could have a material
     adverse effect on Party A without first obtaining the prior written consent
     of Party A (such consent not to be unreasonably

                                      M2-6
<PAGE>

     withheld), where such consent is required under the Pooling and Servicing
     Agreement. Party B shall be the sole Affected Party.

     (iv) RATINGS DOWNGRADE. Party A or any guarantor under a Qualified Guaranty
     (1) has Limited Qualifying Ratings or Disqualifying Ratings, and Party A
     fails to take the actions provided in Part 5(i)(ii)(Posting of Collateral),
     within the time periods set out therein, or (2) has Disqualifying Ratings
     and Party A fails to take the actions provided in Part
     5(i)(iii)(Replacement or Guaranty), within the time periods set out
     therein;

     provided, that, with respect to Moody's Disqualifying Ratings, (1) such
     failure to comply with Part 5(i)(ii) will be treated as an Event of Default
     subject to the provisions of Part 1(c)(iii), and not as an Additional
     Termination Event, and (2) an Additional Termination Event with respect to
     Moody's will not be constituted with respect to Part 5(i)(iii) unless and
     until at least one Qualified Transferee has made an offer which remains
     capable of becoming legally binding upon acceptance to enter into a
     Permitted Transfer or other Replacement Transaction.

Party A shall be the sole Affected Party.

     (v) REGULATION AB. Party A shall fail to comply with the provisions of Part
     5 (j) within the time provided for therein. Party A shall be the sole
     Affected Party.

Party B shall not effectively designate an Early Termination Date unless and
until it has given prior written notice thereof to each Rating Agency.

Part 2. TAX REPRESENTATIONS AND CERTAIN TAX-RELATED PROVISIONS.

     (a) PAYER REPRESENTATIONS. For the purpose of Section 3(e), Party A and
Party B make the following representations:

     It is not required by any applicable law, as modified by the practice of
any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment
(other than interest under Section 2(e), 6(d)(ii) or 6(e)) to be made by it to
the other party under this Agreement. In making this representation, it may rely
on:

     (i) the accuracy of any representations made by the other party pursuant to
     Section 3(f);

     (ii) the satisfaction of the agreement contained in Section 4 (a)(i) or
     4(a)(iii) and the accuracy and effectiveness of any document provided by
     the other party pursuant to Section 4 (a)(i) or 4(a)(iii); and

     (iii) the satisfaction of the agreement of the other party contained in
     Section 4(d),

provided, that, it shall not be a breach of this representation where reliance
is placed on clause (ii) and the other party does not deliver a form or document
under Section 4(a)(iii) by reason of material prejudice of its legal or
commercial position.

(b) PAYEE REPRESENTATIONS. For the purpose of Section 3(f), Party A and Party B
make the following representations.

     (i) The following representation will apply to Party A:

          (x) It is a "U.S. person" (as that term is used in Section
          1.1441-4(a)(3)(ii) of the United States Treasury Regulations ("TREAS.
          REG.")) for United States federal income tax purposes, (y) it is a
          trust company duly organized and existing under the laws of the State
          of New York, and (z) its U.S. taxpayer identification number is
          135160382.

     (ii) The following representation will apply to Party B:

          None.

(c) ADDITIONAL AMOUNTS NOT PAYABLE BY PARTY B. Party B shall not be required to
pay any additional amounts pursuant to Section 2(d)(i)(4).

                                      M2-7

<PAGE>

(d) INDEMNIFIABLE TAX. The definition of "Indemnifiable Tax" in Section 14 is
amended in its entirety to read as follows:

     "INDEMNIFIABLE TAX" means in relation to payments by Party A any Tax and in
     relation to payments by Party B no Tax.

Part 3. AGREEMENT TO DELIVER DOCUMENTS. For the purpose of Section 4(a):

(a) Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
 PARTY REQUIRED TO
  DELIVER DOCUMENT             FORM/DOCUMENT/ CERTIFICATE                  DATE BY WHICH TO BE DELIVERED
  ----------------    -------------------------------------------   -------------------------------------------
<S>                   <C>                                           <C>
Party A and Party B   A correct, complete and executed Internal     (i) Prior to the first scheduled
                      Revenue Service Form W-9, with respect to     Distribution Date; (ii) in the case of a
                      Party A, and W-9, W-8BEN, W-8ECI, or          U.S. Internal Revenue Service Form W-8ECI,
                      W-8IMY, with appropriate attachments, as      W-8IMY, and W-8BEN that does not include a
                      applicable, with respect to Party B, or any   U.S. taxpayer identification number in line
                      other or successor form, in each case that    6, before December 31 of each third
                      establishes an exemption from deduction or    succeeding calendar year, (iii) promptly
                      withholding obligations, and any other        upon reasonable demand by the other party;
                      document reasonably requested to allow the    and (iv) promptly upon learning that any
                      other party to make payments under this       form previously provided by to the other
                      Agreement without any deduction or            party has become obsolete or incorrect.
                      withholding for or on the account of any
                      tax.
</TABLE>

(b) Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                                      DATE BY WHICH TO BE      COVERED BY SECTION
 DELIVER DOCUMENT             FORM/DOCUMENT/ CERTIFICATE                    DELIVERED          3(D) REPRESENTATION
-----------------   ----------------------------------------------   -----------------------   -------------------
<S>                 <C>                                              <C>                       <C>
Party A             A certificate of an authorized officer of the    Upon the execution and    Yes
                    party, as to the incumbency and authority of     delivery of this
                    the respective officers of the party signing     Agreement
                    this Agreement, any relevant Credit Support
                    Document, or any Confirmation, as the case may
                    be.
                                                                     With respect to (i)       Yes
Party B             (i) a copy of the executed Pooling and           upon the execution and
                    Servicing Agreement, (ii) an incumbency          delivery of the Pooling
                    certificate verifying the true signatures and    and Servicing
                    authority of the person or persons signing       Agreement, and with
                    this Agreement on behalf of Party B , and        respect to (ii) and
                    (iii) a certified copy of the authorizing        (iii) upon the
                    resolution (or equivalent authorizing            execution and delivery
                    documentation) of Trustee which sets forth the   of this Agreement
                    authority of each signatory to the
                    Confirmation signing on its behalf and the
                    authority of such party to enter into
                    Transactions contemplated and performance of
                    its obligations hereunder.

Party A and         A legal opinion as to enforceability of this     Upon the execution and    No
Party B             Agreement and any Confirmation evidencing a      delivery of this
                    Transaction hereunder.                           Agreement and such
                                                                     Confirmationf
</TABLE>

Part 4. MISCELLANEOUS.

(a) ADDRESSES FOR NOTICES. For the purpose of Section 12(a):

                              M2-8

<PAGE>

          ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY A:

               The Bank of New York
               Swaps and Derivative Products Group
               Global Market Division
               32 Old Slip 15th Floor
               New York, New York 10286
               Attention: Steve Lawler

          with a copy to:

               The Bank of New York
               Swaps and Derivative Products Group
               32 Old Slip 16th Floor
               New York, New York 10286
               Attention: Andrew Schwartz
               Tele: 212-804-5103
               Fax: 212-804-5818/5837

               (For all purposes)

          A copy of any notice or other communication with respect to Sections 5
          or 6 should also be sent to the addresses set out below:

               The Bank of New York
               Legal Department
               One Wall Street - 10th Floor
               New York, New York 10286
               Attention: General Counsel

          ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY B:

               Global Securities and Trust Services
               135 S. LaSalle Street, Suite 1511
               Chicago, Illinois 60603
               Attn: Ken Lo
               Tel: 312-992-0668
               Fax: 312-904-1368

               With a copy to:

               Merrill Lynch Mortgage Investors, Inc.
               250 Vesey St.
               4 World Financial Center, 10th floor
               New York, NY 10080
               Attention: Alan Chan
               Telephone: 212-449-1441
               Facsimile: 212-738-1110

               (For all purposes.)

     (b)  PROCESS AGENT. For the purpose of Section 13(c):

          Party A appoints as its Process Agent:-- not applicable.

          Party B appoints as its Process Agent:-- not applicable.

     (c)  OFFICES. The provisions of Section 10(a) will apply to this Agreement.

     (d)  MULTIBRANCH PARTY. For the purpose of Section 10(c):

          Party A is a Multibranch Party and will enter into each Transaction
          only through the following Office:- New York (for all Transactions).

          Party B is not a Multibranch Party.

     (e)  CALCULATION AGENT. The Calculation Agent is Party A.

                                      M2-9

<PAGE>

(f) "CREDIT SUPPORT DOCUMENT" Credit Support Document means in relation to:--

     Party A: The Credit Support Annex hereto and any Qualified Guaranty.

     Party B: Not applicable.

(g) "CREDIT SUPPORT PROVIDER" means in relation to:

     Party A: The guarantor under any Qualified Guaranty.

     Party B: Not Applicable.

(h) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York without reference to choice of
law doctrine other than New York General Obligations Law Sections 5-1401 and
5-1402.

(i) NETTING OF PAYMENTS; MODIFICATION OF SECTION 2(A)(III)(1). Subparagraph (ii)
of Section 2(c) will apply. Section 2(a)(iii)(1) is amended by deleting "or
Potential Event of Default".

(j) "AFFILIATE" will have the meaning specified in Section 14, provided, that,
Party B shall not be deemed to have any Affiliates for purposes of this
Agreement, including for purposes of Section 6(b)(ii) hereof.

(k) ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding after
Section 3(f) the following subsections:

     "(g) RELATIONSHIP BETWEEN PARTIES.

          (1) NONRELIANCE. It is not relying on any statement or representation
          of the other party regarding the Transaction (whether written or
          oral), other than the representations expressly made in this Agreement
          or the Confirmation in respect of that Transaction.

          (2) EVALUATION AND UNDERSTANDING.

               (i) It is acting for its own account and has the capacity to
               evaluate (internally or through independent professional advice)
               the Transaction and has made its own decision to enter into the
               Transaction; it is not relying on any communication (written or
               oral) of the other party as investment advice or as a
               recommendation to enter into such transaction; it being
               understood that information and explanations related to the terms
               and conditions of such transaction shall not be considered
               investment advice or a recommendation to enter into such
               transaction. No communication (written or oral) received from the
               other party shall be deemed to be an assurance or guarantee as to
               the expected results of the transaction; and

               (ii) It understands the terms, conditions and risks of the
               Transaction and is willing and able to accept those terms and
               conditions and to assume (and does, in fact assume) those risks,
               financially and otherwise.

          (3) PRINCIPAL. The other party is not acting as a fiduciary or an
          advisor for it in respect of this Transaction.

     (h) EXCLUSION FROM COMMODITY EXCHANGE ACT. (1) It is an "eligible contract
     participant" within the meaning of Section 1a(12) of the Commodity Exchange
     Act, as amended; (2) this Agreement and each Transaction is subject to
     individual negotiation by such party; and (3) neither this Agreement nor
     any Transaction will be executed or traded on a "trading facility" within
     the meaning of Section 1a(33) of the Commodity Exchange Act, as amended.

     (i) SWAP AGREEMENT. Each Transaction is a "swap agreement" as defined in 12
     U.S.C. Section 1821(e)(8)(D)(vi) and a "covered swap agreement" as defined
     in the Commodity Exchange Act (7 U.S.C. Section 27(d)(1))."

(l) RECORDING OF CONVERSATIONS. Each party (i) consents to the recording of
telephone conversations between the trading, marketing and other relevant
personnel of the parties in connection with this Agreement or any potential
Transaction, (ii) agrees to obtain any necessary consent of, and give any
necessary notice of such recording to, its relevant personnel and (iii) agrees,
to the extent permitted by applicable law, that recordings may be submitted in
evidence in any Proceedings.

                                     M2-10

<PAGE>

Part 5. OTHER PROVISIONS.

(a) WAIVER OF JURY TRIAL. Each party waives any right it may have to a trial by
jury in respect of any Proceedings relating to this Agreement or any Credit
Support Document.

(b) SEVERABILITY. If any term, provision, covenant, or condition of this
Agreement, or the application thereof to any party or circumstance, shall be
held to be invalid or unenforceable (in whole or in part) for any reason, the
remaining terms, provisions, covenants, and conditions hereof shall continue in
full force and effect as if this Agreement had been executed with the invalid or
unenforceable portion eliminated, so long as this Agreement as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Agreement and the deletion of such
portion of this Agreement will not substantially impair the respective benefits
or expectations of the parties. The parties shall endeavor to engage in good
faith negotiations to replace any invalid or unenforceable term, provision,
covenant or condition with a valid or enforceable term, provision, covenant or
condition, the economic effect of which comes as close as possible to that of
the invalid or unenforceable term, provision, covenant or condition.

(c) SET-OFF. All payments under this Agreement shall be made without set-off or
counterclaim, except as provided in Section 2(c), Section 6 or the provisions
hereof relating to Market Quotation and Loss, or Paragraph 8 of the Credit
Support Annex. Section 6(e) is amended by deleting the following sentence: "The
amount, if any, payable in respect of an Early Termination Date and determined
pursuant to this Section will be subject to any Set-off." For the avoidance of
doubt, if more than one Transaction is entered into under this Agreement,
nothing herein is intended to prevent the determination of a Settlement Amount
with respect to all such Transactions pursuant to Section 6 (as modified
hereby).

(d) FAILURE TO PAY OR DELIVER. Section 5(a)(i) is hereby amended by replacing
the word "third" by the word "second" in the third line thereof.

(e) NON-RECOURSE. Notwithstanding any provision herein or in this Agreement to
the contrary, the obligations of the Trust hereunder are limited recourse
obligations of the Trust, payable solely from amounts on deposit in the Corridor
Account . In the event that the Corridor Account and proceeds thereof should be
insufficient to satisfy all claims outstanding and following the realization of
the Corridor Account and the distribution of the proceeds thereof in accordance
with the Pooling and Servicing Agreement, any claims against or obligations of
the Trust under this Agreement or any confirmation hereunder still outstanding
shall be extinguished and thereafter not revive. This provision shall survive
the termination of this Agreement.

(f) LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. Party A shall not
institute against or cause any other person to institute against, or join any
other person in instituting against Party B, the Depositor or the Trust, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
under any of the laws of the United States or any other jurisdiction, for a
period of one year and one day (or, if longer, the applicable preference period)
following indefeasible payment in full of the Certificates. This provision shall
survive the termination of this Agreement.

(g) TRANSFER, ASSIGNMENT. Notwithstanding the provisions of Sections 6(b)(ii)
and 7, no novation, assignment or transfer of any Transaction shall be permitted
by either party, unless the Rating Agency Condition with respect to each Rating
Agency is satisfied with respect thereto, except that Party A may, if each
Rating Agency and the non-assigning party has received prior written notice
thereof (1) transfer all or any part of its interest in any amount payable to it
if Party B is a Defaulting Party under Section 6(e) or (2) effect a Permitted
Transfer of this Agreement to any other entity at any time (A) Party A or any
guarantor under a Qualified Guaranty has Limited Qualifying Ratings or
Disqualifying Ratings, (B) pursuant to Section 6(b)(ii), (C) pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity, (D) to another of its
offices or branches; or (E) to an Affiliate. The consent of Party B shall not be
required for a novation, assignment or transfer by Party A in accordance with
clauses (1) and (2) of the preceding sentence and Party B shall take all steps
reasonably requested by Party A (at the expense of Party A) to effect a
Permitted Transfer. A "PERMITTED TRANSFER" means a novation or assignment to or
entry into another form of Replacement Transaction pursuant to which a Qualified
Transferee acquires and assumes or enters into a Replacement Transaction by a
written instrument in respect of all the Transactions and the rights,
liabilities, duties and obligations of Party A hereunder and with respect to
which (1) there is no adverse effect on netting or set-off rights, (2) neither
Party A nor the transferee will be required to withhold or deduct on account of
any Tax from any payments under this Agreement in excess of what would have been
required to be withheld

                                     M2-11

<PAGE>

or deducted in the absence of such transfer, (3) an Event of Default or
Termination Event would not occur as a result, and (4) (x) with respect to any
Rating Agency, the terms of the Transactions are not modified other than
parties, effective date of said transfer, and tax payee representations of Party
A (and in such case, it shall not be a condition of such Replacement Transaction
that it preserve for Party B the economic equivalent of all payment and delivery
obligations hereunder and be in all material respects no less beneficial for
Party B than those of the Transactions), or (y) with respect to Moody's, the
terms of the Transactions are modified to a greater extent than provided in (x)
but the definition of Replacement Transaction is otherwise complied with.

(h) AMENDMENT. Notwithstanding the provisions of Section 9(b), each amendment,
modification or waiver in respect of this Agreement shall be subject to the
Rating Agency Condition with respect to each Rating Agency.

(i) RATINGS DOWNGRADE.

     (i) DEFINITIONS. For purposes of each Transaction:

          (A) "RATING AGENCY CONDITION" means, with respect to any action taken
          or to be taken hereunder, a condition that is satisfied when the
          relevant Rating Agency has confirmed in writing to the Trustee that
          such action will not result in withdrawal, reduction or other adverse
          action with respect to any then-current rating by the Rating Agency of
          the Certificates.

          (B) RATINGS: The ratings assigned or withdrawn by a Rating Agency with
          respect to the unsecured and unguaranteed debt of Party A or any
          guarantor under a Qualified Guaranty, in the cases when such debt has
          both short-term and long-term debt ratings and when such debt has only
          long-term ratings, will be "QUALIFYING RATINGS", "LIMITED QUALIFYING
          RATINGS" and "DISQUALIFYING RATINGS", as identified below:

                                     M2-12

<PAGE>

<TABLE>
<CAPTION>
                                                                      RATINGS OF PARTY A OR GUARANTOR
                                                                        UNDER A QUALIFIED GUARANTY:
                                                                 -----------------------------------------
                                                                   HAS LONG-TERM AND    HAS ONLY LONG-TERM
                        RATING AGENCY:                            SHORT-TERM RATINGS          RATINGS
                        --------------                           --------------------   ------------------
<S>                                                              <C>                    <C>
                                                                           "QUALIFYING RATINGS":
MOODY'S:                                                         P-1 and A2 or above    A1 or above
S&P:                                                             A-1 or above           A+ or above
FITCH:                                                           F1 and A or above      A or above

                                                                       "LIMITED QUALIFYING RATINGS":
MOODY'S:                                                         P-2 or A3              A2 or A3
S&P: If Party A or guarantor under a Qualified Guaranty is a     A-2                    A, A- or BBB+
Financial Institution:
FITCH:                                                           F2 or A-               A-

                                                                         "DISQUALIFYING RATINGS":*
MOODY'S:                                                         P-3 or Baa1 or below   Baa1 or below
S&P:
If Party A or guarantor under a Qualified Guaranty is a          A-3 or below           BBB or below
Financial Institution:(Financial Institution)
If neither Party A nor guarantor under a Qualified Guaranty is   A-2 or below           A or below
a Financial Institution:(Other)
FITCH:                                                           F3 or BBB or below     BBB or below
</TABLE>

*    The withdrawal by Moody's of the short-term rating, or, if there is no
     short-term rating, the long-term rating, and the withdrawal by any other
     Rating Agency of all ratings will be treated as a Disqualifying Rating
     unless the Rating Agency Condition is satisfied with respect thereto.

          (C) "FINANCIAL INSTITUTION" means a bank, broker/dealer, insurance
          company, structured investment vehicle or derivative product company.

          (D) "QUALIFIED TRANSFEREE" means a transferee of a novation or
          assignment or a party (other than Party B) that enters into another
          form of Replacement Transaction that is a Reference Market-maker
          ("dealer" in the definition thereof meaning a "dealer in notional
          principal contracts" as defined in Treas. Reg. Section 1.1001-4) that
          has Qualifying Ratings or Limited Qualifying Ratings assigned by each
          Rating Agency, or whose present and future obligations owing to Party
          B are guaranteed pursuant to a Qualified Guaranty.

          (E) "QUALIFIED GUARANTY" means an unconditional and irrevocable
          guaranty of payment (and not of collection) and the performance of the
          other obligations of Party A (or a Qualified Transferee, as
          applicable) hereunder by a third party that has Qualifying Ratings or
          Limited Qualifying Ratings assigned by each Rating Agency ("QUALIFIED
          GUARANTOR") in a form that satisfies the S&P Rating Condition and that
          provides, inter alia, that payment thereunder shall be made as
          provided and on the conditions set forth in Section 2(d) as modified
          hereunder (substituting references to Party A as "X" with the
          guarantor as "X" and "this Agreement" with such guaranty,
          respectively) (or, in lieu of such provisions relating to tax, a law
          firm has given a legal opinion confirming that none of the guarantor's
          payments to Party B under such guaranty will be subject to withholding
          for Tax).

     (ii) POSTING OF COLLATERAL. If Party A or any guarantor under a Qualified
     Guaranty is assigned Limited Qualifying Ratings or Disqualifying Ratings by
     a Rating Agency, then, within, with respect to:

                                     M2-13

<PAGE>

               (1)  MOODY'S: thirty (30) Local Business Days

               (2)  S&P: ten (10) Local Business Days

               (3)  FITCH: thirty (30) calendar days

     thereafter (or if such ratings exist from the time Party A becomes a party
     hereto or the guarantor under a Qualified Guaranty becomes such guarantor,
     from such time), and for so long as such Limited Qualifying Ratings or
     Disqualifying Ratings continue, Party A shall, at its own expense, post
     collateral in accordance with the Credit Support Annex.

     (iii) REPLACEMENT OR GUARANTY. If Party A or any guarantor under a
     Qualified Guaranty is assigned Disqualifying Ratings by a Rating Agency,
     then, within, with respect to:

               (1)  MOODY'S: thirty (30) Local Business Days

               (2)  S&P: sixty (60) calendar days

               (3)  FITCH: thirty (30) calendar days

     thereafter, Party A shall, at its own expense, (x) novate, assign or
     transfer the Transactions to or replace the Transactions with Replacement
     Transactions with a Qualified Transferee, or (y) obtain a Qualified
     Guaranty.

     (j) REGULATION AB.

          (a) If the Depositor under the Pooling and Servicing Agreement still
          has a reporting obligation with respect to this Transaction pursuant
          to Regulation AB under the Securities Act of 1933, as amended, and the
          Securities Exchange Act of 1934, as amended ("REGULATION AB") and
          Party A has not, within 30 days after receipt of a Swap Disclosure
          Request complied with the provisions set forth below in this Part 5(j)
          (provided that if the significance percentage reaches 10% after a Swap
          Disclosure Request has been made to Party A, Party A must comply with
          the provisions set forth below in this Part 5(j) within 10 calendar
          days of Party A being informed of the significance percentage reaching
          10%), then an Additional Termination Event shall have occurred with
          respect to Party A and Party A shall be the sole Affected Party with
          respect to such Additional Termination Event.

          (b) Party A acknowledges that for so long as there are reporting
          obligations with respect to this Transaction under Regulation AB, the
          Depositor is required under Regulation AB to disclose certain
          information set forth in Regulation AB regarding Party A or its group
          of affiliated entities, if applicable, depending on the aggregate
          "significance percentage" of this Agreement and any other derivative
          contracts between Party A or its group of affiliated entities, if
          applicable, and the Party B, as calculated from time to time in
          accordance with Item 1115 of Regulation AB.

          (c) If the Depositor determines, reasonably and in good faith, that
          the significance percentage of this Agreement has increased to eight
          (8) percent, then the Depositor may request on a Business Day after
          the date of such determination from Party A the same information set
          forth in Item 1115(b) of Regulation AB that would have been required
          if the significance percentage had in fact increased to ten (10)
          percent (such request, a "SWAP DISCLOSURE REQUEST" and such requested
          information, subject to the last sentence of this paragraph, is the
          "SWAP FINANCIAL DISCLOSURE"). The Party B or the Depositor shall
          provide Party A with the calculations and any other information
          reasonably requested by Party A with respect to the Depositor's
          determination that led to the Swap Disclosure Request. The parties
          hereto further agree that the Swap Financial Disclosure provided to
          meet the Swap Disclosure Request may be, solely at Party A's option,
          either the information set forth in Item 1115(b)(1) or Item 1115(b)(2)
          of Regulation AB.

          (d) Upon the occurrence of a Swap Disclosure Request, Party A, at its
          own expense, shall (x) provide the Depositor with the Swap Financial
          Disclosure in an Edgar-compatible format, or (y) subject to Rating
          Agency Condition with respect to each Rating Agency, secure another
          entity to replace Party A as party to this Agreement on terms
          substantially similar to this Agreement which entity is able to
          provide the Swap Financial Disclosure. If permitted by Regulation AB,
          any required Swap Financial Disclosure may be provided by
          incorporation by reference from reports filed pursuant to the
          Securities Exchange Act.

                                     M2-14

<PAGE>

          (e) Party A's obligation to comply with this Paragraph 4(9) shall be
          suspended as of January 1, 2008 unless, at any time, Party A receives
          notification from the Depositor or the Party B that the Trust Fund's
          obligation to file periodic reports under the Exchange Act shall
          continue; provided, however, that such obligations shall not be
          suspended in respect of any Exchange Act Report or amendment to an
          Exchange Act Report in such fiscal year which relates to any fiscal
          year in which the Trust Fund was subject to the reporting requirements
          of the Exchange Act. This obligation shall continue to be suspended
          unless the Depositor or the Party B notifies Party A that the Trust
          Fund's obligations to file reports under the Exchange Act has resumed.

     (k) TRUSTEE'S CAPACITY. It is expressly understood and agreed by the
     parties hereto that, insofar as this Agreement and any confirmation
     evidencing a Transaction hereunder is executed by LaSalle Bank National
     Association, (i) this Agreement and such confirmation are executed and
     delivered by LaSalle Bank National Association, not in its individual
     capacity but solely as Trustee of the Trust pursuant to the Pooling and
     Servicing Agreement in the exercise of the powers and authority conferred
     upon and vested in it thereunder, and pursuant to instruction set forth
     therein, (ii) each of the representations, undertakings and agreements
     herein or therein made on behalf of the Trust is made and intended not as a
     personal representation, undertaking or agreement of LaSalle Bank National
     Association but is made and intended for the purpose of binding only the
     Trust, and (iii) under no circumstances will LaSalle Bank National
     Association, in its individual capacity, be personally liable for the
     payment of any indebtedness or expenses or be personally liable for the
     breach or failure of any obligation, representation, warranty or covenant
     made or undertaken under this Agreement or any such confirmation

     (l) TRUSTEE'S REPRESENTATION. LaSalle Bank National Association, as Trustee
     of the Trust, represents and warrants that:

          It has been directed under the Pooling and Servicing Agreement to
          enter into this Agreement and each confirmation evidencing a
          Transaction hereunder as Trustee on behalf of the Trust.

     (m) ADDITIONAL PROVISIONS. Notwithstanding the terms of Sections 5 and 6,
     if Party B has satisfied its payment obligations under Section 2(a)(i), and
     shall, at the time, have no future payment or delivery obligation, whether
     absolute or contingent, then unless Party A is required pursuant to
     appropriate proceedings to return to Party B or otherwise returns to Party
     B upon demand of Party B any portion of such payment, (a) the occurrence of
     an event described in Section 5(a) with respect to Party B shall not
     constitute an Event of Default or Potential Event of Default with respect
     to Party B as the Defaulting Party and (b) Party A shall be entitled to
     designate an Early Termination Date pursuant to Section 6 only as a result
     of a Termination Event set forth in either Section 5(b)(i) or Section
     5(b)(ii) with respect to Party A as the Affected Party or Section 5(b)(iii)
     with respect to Party A as the Burdened Party or Part 1(g) with Party B as
     the Affected Party.

     (n) RETURN OF AMOUNTS RECEIVED BY MLML OR ITS AFFILIATES. Merrill Lynch
     Mortgage Lending, Inc. ("MLML") agrees and acknowledges that amounts paid
     hereunder are not intended to benefit the holder of any class of
     Certificates rated by any Rating Agency if such holder is MLML or any of
     its affiliates. If MLML or any of its affiliates receives any such amounts,
     it will promptly remit (or, if such amounts are received by an affiliate of
     MLML, MLML hereby agrees that it will cause such affiliate to promptly
     remit) such amounts to the Trustee, whereupon such Trustee will promptly
     remit such amounts to Party A. MLML further agrees to provide notice to
     Party A upon any remittance to the Trustee.

                                     M2-15

<PAGE>

     5. ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

          PAYMENTS TO Party A:

               The Bank of New York
               Derivative Products Support Department
               32 Old Slip, 16th Floor
               New York, New York 10286
               Attention: Renee Etheart
               ABA #021000018
               Account #890-0068-175
               Reference: Interest Rate Swap

          PAYMENTS TO PARTY B:

               LaSalle Bank
               ABA# 071000505
               LaSalle CHGO/CTR/BNF:/LASALLE TRUST
               A/C# 725059.2

     6. COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                     M2-16

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

THE BANK OF NEW YORK

A. BY:
       -------------------------------
Name:
Title:

                                     M2-17

<PAGE>

     The Party B, acting through its duly authorized signatory, hereby agrees
to, accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
TRUSTEE FOR THE MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5

B. BY:
       -------------------------------
Name:
Title:

Solely with respect to Part 5(n)
III.  MERRILL LYNCH MORTGAGE LENDING, INC.

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

                                     M2-18

<PAGE>

                                   SCHEDULE I

(all such dates subject adjustment in accordance with the Modified Following
Business Day Convention)

<TABLE>
<CAPTION>
                          Notional
 From and     To but       Amount        Cap      Ceiling
including   excluding     (in USD)    Rate (%)   Rate (%)
---------   ---------   -----------   --------   --------
<S>         <C>         <C>           <C>        <C>
 10/10/07    10/25/07   330,750,000     9.490      9.490
 10/25/07    11/25/07   327,975,502     6.803      9.490
 11/25/07    12/25/07   324,607,900     7.063      9.490
 12/25/07    01/25/08   320,652,335     6.803      9.490
 01/25/08    02/25/08   316,112,386     6.803      9.490
 02/25/08    03/25/08   310,996,312     7.341      9.490
 03/25/08    04/25/08   305,313,811     6.802      9.490
 04/25/08    05/25/08   299,077,955     7.063      9.490
 05/25/08    06/25/08   292,306,706     6.802      9.490
 06/25/08    07/25/08   285,096,717     7.062      9.490
 07/25/08    08/25/08   277,555,543     6.802      9.490
 08/25/08    09/25/08   269,956,596     6.802      9.490
 09/25/08    10/25/08             0     0.000      0.000
 10/25/08    11/25/08             0     0.000      0.000
 11/25/08    12/25/08             0     0.000      0.000
 12/25/08    01/25/09             0     0.000      0.000
 01/25/09    02/25/09             0     0.000      0.000
 02/25/09    03/25/09             0     0.000      0.000
 03/25/09    04/25/09             0     0.000      0.000
 04/25/09    05/25/09             0     0.000      0.000
 05/25/09    06/25/09             0     0.000      0.000
 06/25/09    07/25/09             0     0.000      0.000
 07/25/09    08/25/09             0     0.000      0.000
 08/25/09    09/25/09             0     0.000      0.000
 09/25/09    10/25/09             0     0.000      0.000
 10/25/09    11/25/09             0     0.000      0.000
 11/25/09    12/25/09             0     0.000      0.000
 12/25/09    01/25/10             0     0.000      0.000
 01/25/10    02/25/10             0     0.000      0.000
 02/25/10    03/25/10             0     0.000      0.000
 03/25/10    04/25/10             0     0.000      0.000
 04/25/10    05/25/10             0     0.000      0.000
 05/25/10    06/25/10             0     0.000      0.000
 06/25/10    07/25/10             0     0.000      0.000
 07/25/10    08/25/10             0     0.000      0.000
 08/25/10    09/25/10             0     0.000      0.000
 09/25/10    10/25/10             0     0.000      0.000
 10/25/10    11/25/10             0     0.000      0.000
 11/25/10    12/25/10             0     0.000      0.000
 12/25/10    01/25/11             0     0.000      0.000
 01/25/11    02/25/11             0     0.000      0.000
 02/25/11    03/25/11             0     0.000      0.000
</TABLE>

                                     M2-19

<PAGE>

<TABLE>
<S>         <C>         <C>           <C>        <C>
 03/25/11    04/25/11             0     0.000      0.000
 04/25/11    05/25/11             0     0.000      0.000
 05/25/11    06/25/11             0     0.000      0.000
 06/25/11    07/25/11             0     0.000      0.000
 07/25/11    08/25/11    76,096,085    10.742     12.000
 08/25/11    09/25/11    74,372,619    10.515     12.000
 09/25/11    10/25/11    72,688,608    10.528     12.000
 10/25/11    11/25/11    71,043,145    10.100     12.000
 11/25/11    12/25/11    69,435,342    10.155     12.000
 12/25/11    01/25/12    67,864,335     9.739     12.000
 01/25/12    02/25/12    66,329,276     9.565     12.000
 02/25/12    03/25/12    64,829,340     9.915     12.000
 03/25/12    04/25/12    63,363,718     9.251     12.000
 04/25/12    05/25/12    61,931,623     9.349     12.000
 05/25/12    06/25/12    60,520,896     8.958     12.000
 06/25/12    07/25/12    58,316,013     9.097     12.000
 07/25/12    08/25/12    55,596,711     9.271     12.000
 08/25/12    09/25/12    53,011,939     9.813     12.000
 09/25/12    10/25/12    50,564,192     9.363     12.000
 10/25/12    11/25/12    48,253,022     9.050     12.000
 11/25/12    12/25/12    46,680,972     9.341     12.000
 12/25/12    01/25/13    45,631,464     9.043     12.000
 01/25/13    02/25/13    44,611,169     9.431     12.000
 02/25/13    03/25/13    43,614,972    10.766     12.000
 03/25/13    04/25/13    42,642,041     9.725     12.000
 04/25/13    05/25/13    41,691,136    10.047     12.000
 05/25/13    06/25/13    40,761,755     9.721     12.000
 06/25/13    07/25/13    39,853,409    10.048     12.000
 07/25/13    08/25/13    38,965,633    10.108     12.000
 08/25/13    09/25/13    38,098,635    10.398     12.000
 09/25/13    10/25/13    37,251,754    10.744     12.000
 10/25/13    11/25/13    36,424,009    10.394     12.000
 11/25/13    12/25/13    35,614,964    10.738     12.000
 12/25/13    01/25/14    34,824,194    10.393     12.000
 01/25/14    02/25/14    34,051,297    10.773     12.000
</TABLE>

                                     M2-20

<PAGE>

                       Exhibit A to Confirmation No. 39956

                   [Credit Support Annex to follow this page]

                                     M2-21
<PAGE>

                                   EXHIBIT M-3

              FORM OF SUBORDINATE CERTIFICATE CAP CORRIDOR CONTRACT

                                                     (THE BANK OF NEW YORK LOGO)

                                                         Dated: October 10, 2007

                              RATE CAP TRANSACTION

                           RE: BNY REFERENCE NO. 39957

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Cap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("PARTY A"), a
trust company duly organized and existing under the laws of the State of New
York, and the Trust relating to the Merrill Lynch First Franklin Mortgage Loan
Trust, Series 2007-5 (the "PARTY B"), as represented by LaSalle Bank National
Association, not in its individual capacity, but solely as Trustee under the
Pooling and Servicing Agreement, dated and effective September 1, 2007, among
Merrill Lynch Mortgage Investments, Inc., as Depositor, Home Loan Services,
Inc., as Servicer, and LaSalle Bank National Association, as Trustee (the
"POOLING AND SERVICING AGREEMENT"). This Agreement, which evidences a complete
and binding agreement between you and us to enter into the Transaction on the
terms set forth below, constitutes a "CONFIRMATION" as referred to in the "ISDA
FORM MASTER AGREEMENT" (as defined below), as well as a "Schedule" as referred
to in the ISDA Form Master Agreement.

     1. FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA
Definitions (the "DEFINITIONS"), as published by the International Swaps and
Derivatives Association, Inc. ("ISDA"). Any reference to a "Swap Transaction" in
the Definitions is deemed to be a reference to a "Transaction" for purposes of
this Agreement, and any reference to a "Transaction" in this Agreement is deemed
to be a reference to a "Swap Transaction" for purposes of the Definitions. You
and we have agreed to enter into this Agreement in lieu of negotiating a
Schedule to the 1992 ISDA Master Agreement (Multicurrency--Cross Border) form
(the "ISDA FORM MASTER AGREEMENT"). An ISDA Form Master Agreement, as modified
by the Schedule terms in Paragraph 4 of this Confirmation (the "MASTER
AGREEMENT"), shall be deemed to have been executed by you and us on the date we
entered into the Transaction. For the avoidance of doubt, the Transaction
described herein shall be the sole Transaction governed by such ISDA Form Master
Agreement. Except as otherwise specified, references herein to Sections shall be
to Sections of the Master Agreement, and references to Paragraphs shall be to
paragraphs of this Agreement. Each party hereto agrees that the Master Agreement
deemed to have been executed by the parties hereto shall be the same Master
Agreement referred to in the agreement setting forth the terms of transaction
reference number 39955 and 39956. In the event of any inconsistency between the
provisions of this Agreement and the Definitions or the Master Agreement, this
Agreement shall prevail for purposes of the Transaction. Capitalized terms not
otherwise defined herein or in the Definitions or the Master Agreement shall
have the meaning defined for such term in the Pooling and Servicing Agreement.

     2. CERTAIN TERMS. The terms of the particular Transaction to which this
Confirmation relates are as follows:

<TABLE>
<CAPTION>
Type of Transaction:            Rate Cap
--------------------            --------
<S>                             <C>
   Notional Amount:             With respect to any Calculation Period, the
                                lesser of: (i) the amount set forth on Schedule
                                I attached hereto for such Calculation Period
                                and (ii) the aggregate Certificate Principal
                                Balance of the Subordinate Certificates (as
                                defined in the Pooling and Servicing Agreement)
                                for such Floating Rate Payer Payment Date.

                                The Trustee under the Pooling and Servicing
                                Agreement shall provide at least two (2)
                                business days notice prior to each Floating Rate
                                Payer Payment Date for each Calculation Period
                                to
</TABLE>

                                      M3-1

<PAGE>

<TABLE>
<S>                             <C>
                                The Bank of New York if the aggregate
                                Certificate Principal Balance of Subordinate
                                Certificates is less than the Schedule I
                                attached hereto

   Trade Date:                  October 5, 2007

   Effective Date:              October 10, 2007

   Termination Date:            June 25, 2013, subject to adjustment in
                                accordance with the Modified Following Business
                                Day Convention.

FIXED AMOUNTS

   Fixed Amount Payer:          Party B has directed Merrill Lynch Mortgage
                                Lending, Inc. to make payment of the Fixed
                                Payment Amount on its behalf.

   Fixed Amount:                USD [_]

   Fixed Amount Payer
   Payment Date:                October 10, 2007

FLOATING AMOUNTS

   Floating Rate Payer:         Party A

   Cap Rate:                    For each Calculation Period, as set forth for
                                such period on Schedule I attached hereto.

   Ceiling Rate:                For each Calculation Period, as set forth for
                                such period on Schedule I attached hereto.

   Floating Rate for initial
   Calculation Period:          To be determined

   Floating Rate Day Count
   Fraction:                    Actual/360

   Floating Rate Option:        USD-LIBOR-BBA, provided, however, if the
                                Floating Rate Option for a Calculation Period is
                                greater than the Ceiling Rate then the Floating
                                Rate Option for such Calculation Period shall be
                                deemed equal to the Ceiling Rate.

   Designated Maturity:         One month

   Spread:                      Inapplicable

   Floating Rate Payer
   Period End Dates:            The 25th day of each month, beginning on October
                                25, 2007 and ending on the Termination Date,
                                subject to adjustment in accordance with the
                                Modified Following Business Day Convention.

   Floating Rate Payer
   Payment Dates:               Early Payment shall be applicable. The Floating
                                Rate Payer Payment Date shall be one (1)
                                Business Day preceding each Floating Rate Payer
                                Period End Date.

   Reset Dates:                 The first day of each Calculation Period

   Compounding:                 Inapplicable
</TABLE>

                                      M3-2

<PAGE>

<TABLE>
<S>                             <C>
   Business Days for Payments
   By both parties:             New York and Illinois

   Calculation Agent:           Party A
</TABLE>

     3. ADDITIONAL PROVISIONS:

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
other party has engaged in (or refrained from engaging in) substantial financial
transactions and has taken (or refrained from taking) other material actions in
reliance upon the entry by the parties into the Transaction being entered into
on the terms and conditions set forth herein.

     4. PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

RATING AGENCY AND RELATED DEFINITIONS. When more than one Rating Agency rates
the Certificates, such terms refer to each Rating Agency and its criteria
separately rather than collectively.

"RATING AGENCY" .means, so long as it rates the Certificates, each of:

     (1) "MOODY'S": Moody's Investors Service Inc.

     (2) "S&P": Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

     (3) "FITCH": Fitch, Inc., Fitch Ratings, Ltd., Derivative Fitch, Inc., or
     Derivative Fitch Ltd., or any subsidiary, or successor thereof.

"RATING AGENCY CONDITION", "QUALIFYING RATINGS", "LIMITED QUALIFYING RATINGS",
and "DISQUALIFYING RATINGS" have the meanings assigned in Part 5(i)(i).

The use of the name of a Rating Agency or its use prior to such terms in a
provision indicates that such provision (or the applicable portion thereof)
applies only with respect to the requirements of such Rating Agency, and
excludes reference to the other Rating Agencies.

DEFINITIONS INCORPORATED BY REFERENCE. Capitalized terms used in this Agreement
that are not defined herein and are defined in the Pooling and Servicing
Agreement have the meanings assigned therein. In the event of any inconsistency
between the terms of this Agreement and the terms of the Pooling and Servicing
Agreement, this Agreement will govern.

Part 1. TERMINATION PROVISIONS.

(a) "SPECIFIED ENTITY" in relation to Party A or Party B shall mean: none.

(b) "SPECIFIED TRANSACTION" will have the meaning specified in Section 14.

(c) APPLICABILITY. The following provisions apply or do not apply to the parties
as specified below:

     (i)  Section 5(a)(i) (FAILURE TO PAY OR DELIVER):

          (A) will apply to Party A; and

          (B) will apply to Party B.

     (ii) Section 5(a)(ii) (BREACH OF AGREEMENT):

          (A) will apply to Party A; and

          (B) will not apply to Party B.

                                      M3-3

<PAGE>

     (iii) Section 5(a)(iii) (CREDIT SUPPORT DEFAULT):

          (A) will apply to Party A; and

          (B) will not apply to Party B;

          provided, that, with respect to Moody's Limited Qualifying Ratings and
          Moody's Disqualifying Ratings, (x) this will apply only to Moody's
          Disqualifying Ratings that have continued for at least 30 Local
          Business Days, and (y) at least one Qualified Transferee has made an
          offer which remains capable of becoming legally binding upon
          acceptance to enter into a Permitted Transfer or other Replacement
          Transaction.

     (iv) Section 5(a)(iv) (MISREPRESENTATION):

          (A) will apply to Party A; and

          (B) will not apply to Party B.

     (v)  Section 5(a)(v) (DEFAULT UNDER SPECIFIED TRANSACTION):

          (A) will not apply to Party A; and

          (B) will not apply to Party B.

     (vi) Section 5(a)(vi) (CROSS DEFAULT):

          (A) will apply to Party A; and

          (B) will not apply to Party B.

          For the purposes of Section 5(a)(vi):

          "SPECIFIED INDEBTEDNESS" will have the meaning specified in Section
          14, except that it shall not include indebtedness in respect of
          deposits received.

          "THRESHOLD AMOUNT" means, 3% of consolidated shareholders equity of
          Party A (or any guarantor under a Qualified Guaranty) and its
          subsidiaries determined in accordance with generally accepted
          accounting principles in the jurisdiction of its organization
          consistently applied as of the last day of the fiscal year ended
          immediately prior to the occurrence or existence of an event for which
          a Threshold Amount is applicable under Section 5(a)(vi).

     (vii) Section 5(a)(vii) (BANKRUPTCY):

          (A) will apply to Party A; and

          (B) will not apply to Party B with respect to subclauses (2), (4) (but
          only if the proceeding or petition is instituted or presented by Party
          A or its affiliates), (7), (8) (but subclause (8) will not apply to
          Party B only to the extent that subclauses (2), (4) and (7) do not
          apply to Party B) and (9) of Section 5(a)(vii), and the remaining
          provisions of Section 5(a)(vii) will apply to Party B; and in
          subclause (6) the words "trustee" and "custodian" will not include the
          Trustee and the words "seeks or" will be deleted.

     (viii) Section 5(a)(viii) (MERGER WITHOUT ASSUMPTION):

          (A) will apply to Party A; and

          (B) will apply to Party B.

     (ix) Section 5(b)(i) (ILLEGALITY):

          (A) will apply to Party A; and

          (B) will apply to Party B.

                                      M3-4

<PAGE>

     (x)  Section 5(b)(ii) (TAX EVENT):

          (A) will apply to Party A; and

          (B) will apply to Party B;

          provided that the words "(x) any action taken by a taxing authority,
          or brought in a court of competent jurisdiction, on or after the date
          on which a Transaction is entered into (regardless of whether such
          action is taken or brought with respect to a party to this Agreement)
          or (y)" shall be deleted.

     (xi) Section 5(b)(iii) (TAX EVENT UPON MERGER):

          (A) will apply to Party A; and

          (B) will apply to Party B,

          provided, that Party A shall not be entitled to designate an Early
          Termination Date by reason of a Tax Event upon Merger in respect of
          which it is the Affected Party.

     (xii) Section 5(b)(iv) (CREDIT EVENT UPON MERGER):

          (A) will not apply to Party A; and

          (B) will not apply to Party B.

     (xiii) Section 5(b)(v) (ADDITIONAL TERMINATION EVENT):

          (A) will apply to Party A with respect to Part 1(g)(iv) and (v); and

          (B) will apply to Party B with respect to Parts 1(g)(i), (ii), and
          (iii).

(d) The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a):

          (A) will not apply to Party A; and

          (B) will not apply to Party B.

(e) PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e), the Second
Method and Market Quotation will apply. For such purpose, if Party A is the
Affected Party in respect of an Additional Termination Event or a Tax Event Upon
Merger or the Defaulting Party in respect of any Event of Default (but not, in
any case, in respect of a Termination Event arising from an Illegality or Tax
Event), the following provisions shall apply:

     (i) The definitions of "Market Quotation" and "Settlement Amount" are
     amended in their entirety to read as follows:

          "MARKET QUOTATION" means, with respect to one or more Terminated
          Transactions, an offer capable when made of becoming legally binding
          upon acceptance made by a Qualified Transferee for an amount that
          would be paid to Party B (expressed as a negative number) or by Party
          B (expressed as a positive number) in consideration of an agreement
          between Party B and such Qualified Transferee to enter into a
          transaction with commercial terms substantially the same as and that
          are, in all material respects, no less beneficial for Party B than,
          those of this Agreement (save for the exclusion of provisions relating
          to Transactions that are not Terminated Transactions) (which shall be
          determined by Party B, acting in a commercially reasonable manner),
          that would have the effect of preserving the economic equivalent for
          Party B of any payment or delivery (whether the underlying obligation
          was absolute or contingent and assuming the satisfaction of each
          applicable condition precedent) by the parties under Section 2(a)(i)
          in respect of such Terminated Transactions or group of Terminated
          Transactions that would, but for the occurrence of the relevant Early
          Termination Date, have been required after that date (such
          transaction, a "REPLACEMENT TRANSACTION"). For this purpose, Unpaid
          Amounts in respect of the Terminated Transaction or group of
          Transactions are to be excluded but, without limitation, any payment
          or delivery that would, but for the relevant Early Termination Date,
          have been required (assuming satisfaction of each applicable condition
          precedent) after that Early Termination Date is to be included.

          "SETTLEMENT AMOUNT" means, with respect to any Early Termination Date:

                                      M3-5

<PAGE>

          (1) if, on or prior to such Early Termination Date, a Market Quotation
          for the relevant Terminated Transaction or group of Terminated
          Transactions is accepted by Party B so as to become legally binding:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of such Market Quotation;

          (2) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions
          has been accepted by Party B so as to become legally binding and one
          or more Market Quotations have been communicated to Party B and remain
          capable of becoming legally binding upon acceptance by Party B:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of the lowest of such Market Quotations

                    (for the avoidance of doubt, (x) a Market Quotation
                    expressed as a negative number is lower than a Market
                    Quotation expressed as a positive number and (y) the lower
                    of two Market Quotations expressed as negative numbers is
                    the one with the largest absolute value); or

          (3) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions is
          accepted by Party B so as to become legally binding and no Market
          Quotations have been communicated to Party B and remain capable of
          becoming legally binding upon acceptance by Party B:

               Party B's Loss (whether positive or negative and without
               reference to any Unpaid amounts) for the relevant Terminated
               Transaction or group of Terminated Transactions."

     (ii) At any time on or before the Early Termination Date at which two or
     more Market Quotations remain capable of becoming legally binding upon
     acceptance, Party B shall be entitled to accept only the lowest of such
     Market Quotations. (For the avoidance of doubt, (i) a Market Quotation
     expressed as a negative number is lower than a Market Quotation expressed
     as a positive number and (ii) the lower of two Market Quotations expressed
     as negative numbers is the one with the largest absolute value.)

     (iii) if Party B requests Party A in writing to obtain Market Quotations,
     Party A shall use its reasonable efforts to do so before the Early
     Termination Date.

     (iv) If the Settlement Amount is a negative number, Section 6(e)(i)(3)
     shall be deleted in its entirety and replaced with the following:

          "SECOND METHOD AND MARKET QUOTATION. If Second Method and Market
          Quotation apply, (1) Party B shall pay to Party A an amount equal to
          the absolute value of the Settlement Amount in respect of the
          Terminated Transactions, (2) Party B shall pay to Party A the
          Termination Currency Equivalent of the Unpaid Amounts owing to Party A
          and (3) Party A shall pay to Party B the Termination Currency
          Equivalent of the Unpaid Amounts owing to Party B, Provided that, (i)
          the amounts payable under (2) and (3) shall be subject to netting in
          accordance with Section 2(c) and (ii) notwithstanding any other
          provision of this Agreement, any amount payable by Party A under (3)
          shall not be netted-off against any amount payable by Party B under
          (1)."

(f) "TERMINATION CURRENCY" means United States Dollars.

(g) "ADDITIONAL TERMINATION EVENT" will apply. The following shall constitute
Additional Termination Events, and the party specified shall be the Affected
Party with respect thereto:--

     (i) TERMINATION OF TRUST FUND. The Trust, Supplemental Interest Trust or
     Trust Fund shall be terminated pursuant to any provision of the Pooling and
     Servicing Agreement (including, without limitation, by exercise of the
     option to purchase and giving of notice under Sections 9.01 and 10.01 of
     the Pooling and Servicing Agreement). The Early Termination Date with
     respect to such Additional Termination Event shall be the Distribution Date
     upon which the Trust and the Supplemental Interest Trust or Trust Fund is
     terminated and final payment is made in respect of

                                      M3-6

<PAGE>

     the Certificates. Party B shall be the sole Affected Party. However, each
     of Party A and Party B may designate an Early Termination Date in respect
     of this Additional Termination Event.

     (ii) INABILITY TO PAY CERTIFICATES. The Trust is unable to pay or fails or
     admits in writing its inability to pay (i) on any Distribution Date, any
     Current Interest with respect to the Class A Certificates or (ii) by the
     Distribution Date immediately following the maturity date for the Mortgage
     Loan with the latest maturity date, [the ultimate payment of principal with
     respect to the Class A Certificates, in either case to the extent required
     pursuant to the terms of the Pooling and Servicing Agreement to be paid to
     the Class A Certificates. Party B shall be the sole Affected Party.

     (iii) AMENDMENT OF POOLING AND SERVICING AGREEMENT. The amendment of the
     Pooling and Servicing Agreement in a manner which could have a material
     adverse effect on Party A without first obtaining the prior written consent
     of Party A (such consent not to be unreasonably withheld), where such
     consent is required under the Pooling and Servicing Agreement. Party B
     shall be the sole Affected Party.

     (iv) RATINGS DOWNGRADE. Party A or any guarantor under a Qualified Guaranty
     (1) has Limited Qualifying Ratings or Disqualifying Ratings, and Party A
     fails to take the actions provided in Part 5(i)(ii)(Posting of Collateral),
     within the time periods set out therein, or (2) has Disqualifying Ratings
     and Party A fails to take the actions provided in Part
     5(i)(iii)(Replacement or Guaranty), within the time periods set out
     therein;

     provided, that, with respect to Moody's Disqualifying Ratings, (1) such
     failure to comply with Part 5(i)(ii) will be treated as an Event of Default
     subject to the provisions of Part 1(c)(iii), and not as an Additional
     Termination Event, and (2) an Additional Termination Event with respect to
     Moody's will not be constituted with respect to Part 5(i)(iii) unless and
     until at least one Qualified Transferee has made an offer which remains
     capable of becoming legally binding upon acceptance to enter into a
     Permitted Transfer or other Replacement Transaction.

Party A shall be the sole Affected Party.

     (v) REGULATION AB. Party A shall fail to comply with the provisions of Part
     5 (j) within the time provided for therein. Party A shall be the sole
     Affected Party.

Party B shall not effectively designate an Early Termination Date unless and
until it has given prior written notice thereof to each Rating Agency.

Part 2. TAX REPRESENTATIONS AND CERTAIN TAX-RELATED PROVISIONS.

     (a) PAYER REPRESENTATIONS. For the purpose of Section 3(e), Party A and
Party B make the following representations:

     It is not required by any applicable law, as modified by the practice of
any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment
(other than interest under Section 2(e), 6(d)(ii) or 6(e)) to be made by it to
the other party under this Agreement. In making this representation, it may rely
on:

     (i) the accuracy of any representations made by the other party pursuant to
     Section 3(f);

     (ii) the satisfaction of the agreement contained in Section 4 (a)(i) or
     4(a)(iii) and the accuracy and effectiveness of any document provided by
     the other party pursuant to Section 4 (a)(i) or 4(a)(iii); and

     (iii) the satisfaction of the agreement of the other party contained in
     Section 4(d),

provided, that, it shall not be a breach of this representation where reliance
is placed on clause (ii) and the other party does not deliver a form or document
under Section 4(a)(iii) by reason of material prejudice of its legal or
commercial position.

     (b) PAYEE REPRESENTATIONS. For the purpose of Section 3(f), Party A and
Party B make the following representations.

     (i)  The following representation will apply to Party A:

                                      M3-7

<PAGE>

          (x) It is a "U.S. person" (as that term is used in Section
          1.1441-4(a)(3)(ii) of the United States Treasury Regulations ("TREAS.
          REG.")) for United States federal income tax purposes, (y) it is a
          trust company duly organized and existing under the laws of the State
          of New York, and (z) its U.S. taxpayer identification number is
          135160382.

     (ii) The following representation will apply to Party B:

          None.

(c) ADDITIONAL AMOUNTS NOT PAYABLE BY PARTY B. Party B shall not be required to
pay any additional amounts pursuant to Section 2(d)(i)(4).

(d) INDEMNIFIABLE TAX. The definition of "Indemnifiable Tax" in Section 14 is
amended in its entirety to read as follows:

     "INDEMNIFIABLE TAX" means in relation to payments by Party A any Tax and in
     relation to payments by Party B no Tax.

Part 3. AGREEMENT TO DELIVER DOCUMENTS. For the purpose of Section 4(a):

(a) Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO
DELIVER DOCUMENT                FORM/DOCUMENT/ CERTIFICATE                  DATE BY WHICH TO BE DELIVERED
-----------------     ---------------------------------------------   ----------------------------------------
<S>                   <C>                                             <C>
Party A and Party B   A correct, complete and executed Internal       (i) Prior to the first scheduled
                      Revenue Service Form W-9, with respect to       Distribution Date; (ii) in the case of a
                      Party A, and W-9, W-8BEN, W-8ECI, or W-8IMY,    U.S. Internal Revenue Service Form
                      with appropriate attachments, as applicable,    W-8ECI, W-8IMY, and W-8BEN that does not
                      with respect to Party B, or any other or        include a U.S. taxpayer identification
                      successor form, in each case that establishes   number in line 6, before December 31 of
                      an exemption from deduction or withholding      each third succeeding calendar year,
                      obligations, and any other document             (iii) promptly upon reasonable demand by
                      reasonably requested to allow the other party   the other party; and (iv) promptly upon
                      to make payments under this Agreement without   learning that any form previously
                      any deduction or withholding for or on the      provided by to the other party has
                      account of any tax.                             become obsolete or incorrect.
</TABLE>

(b) Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                                                              COVERED BY SECTION
DELIVER DOCUMENT         FORM/DOCUMENT/ CERTIFICATE          DATE BY WHICH TO BE DELIVERED    3(D) REPRESENTATION
-----------------   ------------------------------------   --------------------------------   -------------------
<S>                 <C>                                    <C>                                <C>
Party A             A certificate of an authorized         Upon the execution and delivery    Yes
                    officer of the party, as to the        of this Agreement
                    incumbency and authority of the
                    respective officers of the party
                    signing this Agreement, any relevant
                    Credit Support Document, or any
                    Confirmation, as the case may be.

Party B             (i) a copy of the executed Pooling     With respect to (i) upon the       Yes
                    and Servicing Agreement, (ii) an       execution and delivery of the
                    incumbency certificate verifying the   Pooling and Servicing Agreement,
                    true signatures and authority of the   and with respect to (ii) and
                    person or persons signing this         (iii) upon the execution and
                    Agreement on behalf of Party B , and   delivery of this
                    (iii) a certified copy of the
                    authorizing resolution (or
                    equivalent authorizing
                    documentation) of Trustee which sets
                    forth the authority of each
                    signatory to the Confirmation
                    signing on its behalf and the
                    authority of such party to enter
                    into
</TABLE>

                                           M3-8

<PAGE>

<TABLE>
<S>                 <C>                                    <C>                                <C>
                    Transactions contemplated and          Agreement
                    performance of its obligations
                    hereunder.

Party A and Party   A legal opinion as to enforceability   Upon the execution and delivery    No
B                   of this Agreement and any              of this Agreement and such
                    Confirmation evidencing a              Confirmation
                    Transaction hereunder.
</TABLE>

Part 4. MISCELLANEOUS.

(a) ADDRESSES FOR NOTICES. For the purpose of Section 12(a):

     ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY A:

          The Bank of New York
          Swaps and Derivative Products Group
          Global Market Division
          32 Old Slip 15th Floor
          New York, New York 10286
          Attention: Steve Lawler

     with a copy to:

          The Bank of New York
          Swaps and Derivative Products Group
          32 Old Slip 16th Floor
          New York, New York 10286
          Attention: Andrew Schwartz
          Tele: 212-804-5103
          Fax: 212-804-5818/5837

          (For all purposes)

     A copy of any notice or other communication with respect to Sections 5 or 6
     should also be sent to the addresses set out below:

          The Bank of New York
          Legal Department
          One Wall Street - 10th Floor
          New York, New York 10286
          Attention: General Counsel

     ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY B:

          Global Securities and Trust Services
          135 S. LaSalle Street, Suite 1511
          Chicago, Illinois 60603
          Attn: Ken Lo
          Tel: 312-992-0668
          Fax: 312-904-1368

     With a copy to:

          Merrill Lynch Mortgage Investors, Inc.
          250 Vesey St.
          4 World Financial Center, 10th floor
          New York, NY 10080
          Attention: Alan Chan
          Telephone: 212-449-1441
          Facsimile:  212-738-1110
          (For all purposes.)

(b) PROCESS AGENT. For the purpose of Section 13(c):

     Party A appoints as its Process Agent:-- not applicable.

                                      M3-9

<PAGE>

     Party B appoints as its Process Agent:-- not applicable.

(c) OFFICES. The provisions of Section 10(a) will apply to this Agreement.

(d) MULTIBRANCH PARTY. For the purpose of Section 10(c):

     Party A is a Multibranch Party and will enter into each Transaction only
     through the following Office:- New York (for all Transactions).

     Party B is not a Multibranch Party.

(e) CALCULATION AGENT. The Calculation Agent is Party A.

(f) "CREDIT SUPPORT DOCUMENT" Credit Support Document means in relation to:--

     Party A: The Credit Support Annex hereto and any Qualified Guaranty.

     Party B: Not applicable.

(g) "CREDIT SUPPORT PROVIDER" means in relation to:

     Party A: The guarantor under any Qualified Guaranty.

     Party B: Not Applicable.

(h) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York without reference to choice of
law doctrine other than New York General Obligations Law Sections 5-1401 and
5-1402.

(i) NETTING OF PAYMENTS; MODIFICATION OF SECTION 2(A)(III)(1). Subparagraph (ii)
of Section 2(c) will apply. Section 2(a)(iii)(1) is amended by deleting "or
Potential Event of Default".

(j) "AFFILIATE" will have the meaning specified in Section 14, provided, that,
Party B shall not be deemed to have any Affiliates for purposes of this
Agreement, including for purposes of Section 6(b)(ii) hereof.

(k) ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding after
Section 3(f) the following subsections:

     "(g) RELATIONSHIP BETWEEN PARTIES.

          (1) NONRELIANCE. It is not relying on any statement or representation
          of the other party regarding the Transaction (whether written or
          oral), other than the representations expressly made in this Agreement
          or the Confirmation in respect of that Transaction.

          (2) EVALUATION AND UNDERSTANDING.

               (i) It is acting for its own account and has the capacity to
               evaluate (internally or through independent professional advice)
               the Transaction and has made its own decision to enter into the
               Transaction; it is not relying on any communication (written or
               oral) of the other party as investment advice or as a
               recommendation to enter into such transaction; it being
               understood that information and explanations related to the terms
               and conditions of such transaction shall not be considered
               investment advice or a recommendation to enter into such
               transaction. No communication (written or oral) received from the
               other party shall be deemed to be an assurance or guarantee as to
               the expected results of the transaction; and

               (ii) It understands the terms, conditions and risks of the
               Transaction and is willing and able to accept those terms and
               conditions and to assume (and does, in fact assume) those risks,
               financially and otherwise.

          (3) PRINCIPAL. The other party is not acting as a fiduciary or an
          advisor for it in respect of this Transaction.

     (h) EXCLUSION FROM COMMODITY EXCHANGE ACT. (1) It is an "eligible contract
     participant" within the meaning of Section 1a(12) of the Commodity Exchange
     Act, as amended; (2) this Agreement and each Transaction is subject to
     individual negotiation by such party; and (3) neither

                                     M3-10

<PAGE>

     this Agreement nor any Transaction will be executed or traded on a "trading
     facility" within the meaning of Section 1a(33) of the Commodity Exchange
     Act, as amended.

     (i) SWAP AGREEMENT. Each Transaction is a "swap agreement" as defined in 12
     U.S.C. Section 1821(e)(8)(D)(vi) and a "covered swap agreement" as defined
     in the Commodity Exchange Act (7 U.S.C. Section 27(d)(1))."

(l) RECORDING OF CONVERSATIONS. Each party (i) consents to the recording of
telephone conversations between the trading, marketing and other relevant
personnel of the parties in connection with this Agreement or any potential
Transaction, (ii) agrees to obtain any necessary consent of, and give any
necessary notice of such recording to, its relevant personnel and (iii) agrees,
to the extent permitted by applicable law, that recordings may be submitted in
evidence in any Proceedings.

Part 5. OTHER PROVISIONS.

(a) WAIVER OF JURY TRIAL. Each party waives any right it may have to a trial by
jury in respect of any Proceedings relating to this Agreement or any Credit
Support Document.

(b) SEVERABILITY. If any term, provision, covenant, or condition of this
Agreement, or the application thereof to any party or circumstance, shall be
held to be invalid or unenforceable (in whole or in part) for any reason, the
remaining terms, provisions, covenants, and conditions hereof shall continue in
full force and effect as if this Agreement had been executed with the invalid or
unenforceable portion eliminated, so long as this Agreement as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Agreement and the deletion of such
portion of this Agreement will not substantially impair the respective benefits
or expectations of the parties. The parties shall endeavor to engage in good
faith negotiations to replace any invalid or unenforceable term, provision,
covenant or condition with a valid or enforceable term, provision, covenant or
condition, the economic effect of which comes as close as possible to that of
the invalid or unenforceable term, provision, covenant or condition.

(c) SET-OFF. All payments under this Agreement shall be made without set-off or
counterclaim, except as provided in Section 2(c), Section 6 or the provisions
hereof relating to Market Quotation and Loss, or Paragraph 8 of the Credit
Support Annex. Section 6(e) is amended by deleting the following sentence: "The
amount, if any, payable in respect of an Early Termination Date and determined
pursuant to this Section will be subject to any Set-off." For the avoidance of
doubt, if more than one Transaction is entered into under this Agreement,
nothing herein is intended to prevent the determination of a Settlement Amount
with respect to all such Transactions pursuant to Section 6 (as modified
hereby).

(d) FAILURE TO PAY OR DELIVER. Section 5(a)(i) is hereby amended by replacing
the word "third" by the word "second" in the third line thereof.

(e) NON-RECOURSE. Notwithstanding any provision herein or in this Agreement to
the contrary, the obligations of the Trust hereunder are limited recourse
obligations of the Trust, payable solely from amounts on deposit in the Corridor
Account. In the event that the Corridor Account and proceeds thereof should be
insufficient to satisfy all claims outstanding and following the realization of
the Corridor Account and the distribution of the proceeds thereof in accordance
with the Pooling and Servicing Agreement, any claims against or obligations of
the Trust under this Agreement or any confirmation hereunder still outstanding
shall be extinguished and thereafter not revive. This provision shall survive
the termination of this Agreement.

(f) LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. Party A shall not
institute against or cause any other person to institute against, or join any
other person in instituting against Party B, the Depositor or the Trust, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
under any of the laws of the United States or any other jurisdiction, for a
period of one year and one day (or, if longer, the applicable preference period)
following indefeasible payment in full of the Certificates. This provision shall
survive the termination of this Agreement.

(g) TRANSFER, ASSIGNMENT. Notwithstanding the provisions of Sections 6(b)(ii)
and 7, no novation, assignment or transfer of any Transaction shall be permitted
by either party, unless the Rating Agency Condition with respect to each Rating
Agency is satisfied with respect thereto, except that Party A may, if each
Rating Agency and the non-assigning party has received prior written notice
thereof (1) transfer all or any part of its interest in any amount payable to it
if Party B is a Defaulting Party under Section 6(e) or (2) effect a Permitted
Transfer of this Agreement to any other entity at any time (A) Party A or any

                                     M3-11

<PAGE>

guarantor under a Qualified Guaranty has Limited Qualifying Ratings or
Disqualifying Ratings, (B) pursuant to Section 6(b)(ii), (C) pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity, (D) to another of its
offices or branches; or (E) to an Affiliate. The consent of Party B shall not be
required for a novation, assignment or transfer by Party A in accordance with
clauses (1) and (2) of the preceding sentence and Party B shall take all steps
reasonably requested by Party A (at the expense of Party A) to effect a
Permitted Transfer. A "PERMITTED TRANSFER" means a novation or assignment to or
entry into another form of Replacement Transaction pursuant to which a Qualified
Transferee acquires and assumes or enters into a Replacement Transaction by a
written instrument in respect of all the Transactions and the rights,
liabilities, duties and obligations of Party A hereunder and with respect to
which (1) there is no adverse effect on netting or set-off rights, (2) neither
Party A nor the transferee will be required to withhold or deduct on account of
any Tax from any payments under this Agreement in excess of what would have been
required to be withheld or deducted in the absence of such transfer, (3) an
Event of Default or Termination Event would not occur as a result, and (4) (x)
with respect to any Rating Agency, the terms of the Transactions are not
modified other than parties, effective date of said transfer, and tax payee
representations of Party A (and in such case, it shall not be a condition of
such Replacement Transaction that it preserve for Party B the economic
equivalent of all payment and delivery obligations hereunder and be in all
material respects no less beneficial for Party B than those of the
Transactions), or (y) with respect to Moody's, the terms of the Transactions are
modified to a greater extent than provided in (x) but the definition of
Replacement Transaction is otherwise complied with.

(h) AMENDMENT. Notwithstanding the provisions of Section 9(b), each amendment,
modification or waiver in respect of this Agreement shall be subject to the
Rating Agency Condition with respect to each Rating Agency.

(i) RATINGS DOWNGRADE.

     (i)DEFINITIONS. For purposes of each Transaction:

          (A) "RATING AGENCY CONDITION" means, with respect to any action taken
          or to be taken hereunder, a condition that is satisfied when the
          relevant Rating Agency has confirmed in writing to the Trustee that
          such action will not result in withdrawal, reduction or other adverse
          action with respect to any then-current rating by the Rating Agency of
          the Certificates.

          (B) RATINGS: The ratings assigned or withdrawn by a Rating Agency with
          respect to the unsecured and unguaranteed debt of Party A or any
          guarantor under a Qualified Guaranty, in the cases when such debt has
          both short-term and long-term debt ratings and when such debt has only
          long-term ratings, will be "QUALIFYING RATINGS", "LIMITED QUALIFYING
          RATINGS" and "DISQUALIFYING RATINGS", as identified below:

                                     M3-12

<PAGE>

<TABLE>
<CAPTION>
                                              RATINGS OF PARTY A OR GUARANTOR
                                                UNDER A QUALIFIED GUARANTY:
                                         ----------------------------------------
                                           HAS LONG-TERM AND         HAS ONLY
            RATING AGENCY:                SHORT-TERM RATINGS    LONG-TERM RATINGS
            --------------               --------------------   -----------------
<S>                                      <C>                    <C>
                                                   "QUALIFYING RATINGS":
MOODY'S:                                 P-1 and A2 or above    A1 or above
S&P:                                     A-1 or above           A+ or above
FITCH:                                   F1 and A or above      A or above

                                               "LIMITED QUALIFYING RATINGS":
MOODY'S:                                 P-2 or A3              A2 or A3
S&P: If Party A or guarantor under a     A-2                    A, A- or BBB+
Qualified Guaranty is a Financial
Institution:
FITCH:                                   F2 or A-               A-

                                                 "DISQUALIFYING RATINGS":*
MOODY'S:                                 P-3 or Baa1 or below   Baa1 or below
S&P:
If Party A or guarantor under a          A-3 or below           BBB or below
Qualified Guaranty is a Financial
Institution:(Financial Institution)
If neither Party A nor guarantor under   A-2 or below           A or below
a Qualified Guaranty is a Financial
Institution:(Other)
FITCH:                                   F3 or BBB or below     BBB or below
</TABLE>

*    The withdrawal by Moody's of the short-term rating, or, if there is no
     short-term rating, the long-term rating, and the withdrawal by any other
     Rating Agency of all ratings will be treated as a Disqualifying Rating
     unless the Rating Agency Condition is satisfied with respect thereto.

          (C) "FINANCIAL INSTITUTION" means a bank, broker/dealer, insurance
          company, structured investment vehicle or derivative product company.

          (D) "QUALIFIED TRANSFEREE" means a transferee of a novation or
          assignment or a party (other than Party B) that enters into another
          form of Replacement Transaction that is a Reference Market-maker
          ("dealer" in the definition thereof meaning a "dealer in notional
          principal contracts" as defined in Treas. Reg. Section 1.1001-4) that
          has Qualifying Ratings or Limited Qualifying Ratings assigned by each
          Rating Agency, or whose present and future obligations owing to Party
          B are guaranteed pursuant to a Qualified Guaranty.

          (E) "QUALIFIED GUARANTY" means an unconditional and irrevocable
          guaranty of payment (and not of collection) and the performance of the
          other obligations of Party A (or a Qualified Transferee, as
          applicable) hereunder by a third party that has Qualifying Ratings or
          Limited Qualifying Ratings assigned by each Rating Agency ("QUALIFIED
          GUARANTOR") in a form that satisfies the S&P Rating Condition and that
          provides, inter alia, that payment thereunder shall be made as
          provided and on the conditions set forth in Section 2(d) as modified
          hereunder (substituting references to Party A as "X" with the
          guarantor as "X" and "this Agreement" with such guaranty,
          respectively) (or, in lieu of such provisions relating to tax, a law
          firm has given a legal opinion confirming that none of the guarantor's
          payments to Party B under such guaranty will be subject to withholding
          for Tax).

     (ii) POSTING OF COLLATERAL. If Party A or any guarantor under a Qualified
     Guaranty is assigned Limited Qualifying Ratings or Disqualifying Ratings by
     a Rating Agency, then, within, with respect to:

                                     M3-13

<PAGE>

          (1) MOODY'S: thirty (30) Local Business Days

          (2) S&P: ten (10) Local Business Days

          (3) FITCH: thirty (30) calendar days

     thereafter (or if such ratings exist from the time Party A becomes a party
     hereto or the guarantor under a Qualified Guaranty becomes such guarantor,
     from such time), and for so long as such Limited Qualifying Ratings or
     Disqualifying Ratings continue, Party A shall, at its own expense, post
     collateral in accordance with the Credit Support Annex.

     (iii) REPLACEMENT OR GUARANTY. If Party A or any guarantor under a
     Qualified Guaranty is assigned Disqualifying Ratings by a Rating Agency,
     then, within, with respect to:

          (1) MOODY'S: thirty (30) Local Business Days

          (2) S&P: sixty (60) calendar days

          (3) FITCH: thirty (30) calendar days

     thereafter, Party A shall, at its own expense, (x) novate, assign or
     transfer the Transactions to or replace the Transactions with Replacement
     Transactions with a Qualified Transferee, or (y) obtain a Qualified
     Guaranty.

     (j)REGULATION AB.

          (a) If the Depositor under the Pooling and Servicing Agreement still
          has a reporting obligation with respect to this Transaction pursuant
          to Regulation AB under the Securities Act of 1933, as amended, and the
          Securities Exchange Act of 1934, as amended ("REGULATION AB") and
          Party A has not, within 30 days after receipt of a Swap Disclosure
          Request complied with the provisions set forth below in this Part 5(j)
          (provided that if the significance percentage reaches 10% after a Swap
          Disclosure Request has been made to Party A, Party A must comply with
          the provisions set forth below in this Part 5(j) within 10 calendar
          days of Party A being informed of the significance percentage reaching
          10%), then an Additional Termination Event shall have occurred with
          respect to Party A and Party A shall be the sole Affected Party with
          respect to such Additional Termination Event.

          (b) Party A acknowledges that for so long as there are reporting
          obligations with respect to this Transaction under Regulation AB, the
          Depositor is required under Regulation AB to disclose certain
          information set forth in Regulation AB regarding Party A or its group
          of affiliated entities, if applicable, depending on the aggregate
          "significance percentage" of this Agreement and any other derivative
          contracts between Party A or its group of affiliated entities, if
          applicable, and the Party B, as calculated from time to time in
          accordance with Item 1115 of Regulation AB.

          (c) If the Depositor determines, reasonably and in good faith, that
          the significance percentage of this Agreement has increased to eight
          (8) percent, then the Depositor may request on a Business Day after
          the date of such determination from Party A the same information set
          forth in Item 1115(b) of Regulation AB that would have been required
          if the significance percentage had in fact increased to ten (10)
          percent (such request, a "SWAP DISCLOSURE REQUEST" and such requested
          information, subject to the last sentence of this paragraph, is the
          "SWAP FINANCIAL DISCLOSURE"). The Party B or the Depositor shall
          provide Party A with the calculations and any other information
          reasonably requested by Party A with respect to the Depositor's
          determination that led to the Swap Disclosure Request. The parties
          hereto further agree that the Swap Financial Disclosure provided to
          meet the Swap Disclosure Request may be, solely at Party A's option,
          either the information set forth in Item 1115(b)(1) or Item 1115(b)(2)
          of Regulation AB.

          (d) Upon the occurrence of a Swap Disclosure Request, Party A, at its
          own expense, shall (x) provide the Depositor with the Swap Financial
          Disclosure in an Edgar-compatible format, or (y) subject to Rating
          Agency Condition with respect to each Rating Agency, secure another
          entity to replace Party A as party to this Agreement on terms
          substantially similar to this Agreement which entity is able to
          provide the Swap Financial Disclosure. If permitted by Regulation AB,
          any required Swap Financial Disclosure may be provided by
          incorporation by reference from reports filed pursuant to the
          Securities Exchange Act.

                                     M3-14

<PAGE>

          (e) Party A's obligation to comply with this Paragraph 4(9) shall be
          suspended as of January 1, 2008 unless, at any time, Party A receives
          notification from the Depositor or the Party B that the Trust Fund's
          obligation to file periodic reports under the Exchange Act shall
          continue; provided, however, that such obligations shall not be
          suspended in respect of any Exchange Act Report or amendment to an
          Exchange Act Report in such fiscal year which relates to any fiscal
          year in which the Trust Fund was subject to the reporting requirements
          of the Exchange Act. This obligation shall continue to be suspended
          unless the Depositor or the Party B notifies Party A that the Trust
          Fund's obligations to file reports under the Exchange Act has resumed.

     (k) TRUSTEE 'S CAPACITY. It is expressly understood and agreed by the
     parties hereto that, insofar as this Agreement and any confirmation
     evidencing a Transaction hereunder is executed by LaSalle Bank National
     Association, (i) this Agreement and such confirmation are executed and
     delivered by LaSalle Bank National Association, not in its individual
     capacity but solely as Trustee of the Trust pursuant to the Pooling and
     Servicing Agreement in the exercise of the powers and authority conferred
     upon and vested in it thereunder, and pursuant to instruction set forth
     therein, (ii) each of the representations, undertakings and agreements
     herein or therein made on behalf of the Trust is made and intended not as a
     personal representation, undertaking or agreement of LaSalle Bank National
     Association but is made and intended for the purpose of binding only the
     Trust, and (iii) under no circumstances will LaSalle Bank National
     Association, in its individual capacity, be personally liable for the
     payment of any indebtedness or expenses or be personally liable for the
     breach or failure of any obligation, representation, warranty or covenant
     made or undertaken under this Agreement or any such confirmation

     (l) TRUSTEE'S REPRESENTATION. LaSalle Bank National Association, Trustee of
     the Trust, represents and warrants that:

          It has been directed under the Pooling and Servicing Agreement to
          enter into this Agreement and each confirmation evidencing a
          Transaction hereunder as Trustee on behalf of the Trust.

     (m) ADDITIONAL PROVISIONS. Notwithstanding the terms of Sections 5 and 6,
     if Party B has satisfied its payment obligations under Section 2(a)(i), and
     shall, at the time, have no future payment or delivery obligation, whether
     absolute or contingent, then unless Party A is required pursuant to
     appropriate proceedings to return to Party B or otherwise returns to Party
     B upon demand of Party B any portion of such payment, (a) the occurrence of
     an event described in Section 5(a) with respect to Party B shall not
     constitute an Event of Default or Potential Event of Default with respect
     to Party B as the Defaulting Party and (b) Party A shall be entitled to
     designate an Early Termination Date pursuant to Section 6 only as a result
     of a Termination Event set forth in either Section 5(b)(i) or Section
     5(b)(ii) with respect to Party A as the Affected Party or Section 5(b)(iii)
     with respect to Party A as the Burdened Party or Part 1(g) with Party B as
     the Affected Party.

     (n) RETURN OF AMOUNTS RECEIVED BY MLML OR ITS AFFILIATES. Merrill Lynch
     Mortgage Lending, Inc. ("MLML") agrees and acknowledges that amounts paid
     hereunder are not intended to benefit the holder of any class of
     Certificates rated by any Rating Agency if such holder is MLML or any of
     its affiliates. If MLML or any of its affiliates receives any such amounts,
     it will promptly remit (or, if such amounts are received by an affiliate of
     MLML, MLML hereby agrees that it will cause such affiliate to promptly
     remit) such amounts to the Trustee, whereupon such Trustee will promptly
     remit such amounts to Party A. MLML further agrees to provide notice to
     Party A upon any remittance to the Trustee.

                                     M3-15

<PAGE>

5. ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

     PAYMENTS TO Party A:

           The Bank of New York
           Derivative Products Support Department
           32 Old Slip, 16th Floor
           New York, New York 10286
           Attention: Renee Etheart
           ABA #021000018
           Account #890-0068-175
           Reference: Interest Rate Swap

     PAYMENTS TO PARTY B:

           LaSalle Bank
           ABA# 071000505
           LaSalle CHGO/CTR/BNF:/LASALLE TRUST
           A/C# 725059.2

     6. COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                     M3-16

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

THE BANK OF NEW YORK

A. BY:
       ------------------------------
Name:
Title:

                                     M3-17

<PAGE>

     The Party B, acting through its duly authorized signatory, hereby agrees
to, accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
TRUSTEE FOR THE MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5

B. BY:
       ------------------------------
Name:
Title:

Solely with respect to Part 5(n)
IV. MERRILL LYNCH MORTGAGE LENDING, INC.

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

                                     M3-18

<PAGE>

                                   SCHEDULE I

  (all such dates subject adjustment in accordance with the Modified Following
                            Business Day Convention)

<TABLE>
<CAPTION>
                          Notional
 From and     To but       Amount     Cap Rate   Ceiling Rate
including   excluding     (in USD)       (%)          (%)
---------   ---------   -----------   --------   ------------
<S>         <C>         <C>           <C>        <C>
 10/10/07    10/25/07   167,440,000     7.110        7.110
 10/25/07    11/25/07   167,440,000     5.472        7.110
 11/25/07    12/25/07   167,440,000     5.735        7.110
 12/25/07    01/25/08   167,440,000     5.472        7.110
 01/25/08    02/25/08   167,440,000     5.472        7.110
 02/25/08    03/25/08   167,440,000     6.015        7.110
 03/25/08    04/25/08   167,440,000     5.472        7.110
 04/25/08    05/25/08   167,440,000     5.734        7.110
 05/25/08    06/25/08   167,440,000     5.472        7.110
 06/25/08    07/25/08   167,440,000     5.734        7.110
 07/25/08    08/25/08   167,440,000     5.472        7.110
 08/25/08    09/25/08   167,440,000     5.472        7.110
 09/25/08    10/25/08             0     0.000        0.000
 10/25/08    11/25/08             0     0.000        0.000
 11/25/08    12/25/08             0     0.000        0.000
 12/25/08    01/25/09             0     0.000        0.000
 01/25/09    02/25/09             0     0.000        0.000
 02/25/09    03/25/09             0     0.000        0.000
 03/25/09    04/25/09             0     0.000        0.000
 04/25/09    05/25/09             0     0.000        0.000
 05/25/09    06/25/09             0     0.000        0.000
 06/25/09    07/25/09             0     0.000        0.000
 07/25/09    08/25/09             0     0.000        0.000
 08/25/09    09/25/09             0     0.000        0.000
 09/25/09    10/25/09             0     0.000        0.000
 10/25/09    11/25/09             0     0.000        0.000
 11/25/09    12/25/09             0     0.000        0.000
 12/25/09    01/25/10             0     0.000        0.000
 01/25/10    02/25/10             0     0.000        0.000
 02/25/10    03/25/10             0     0.000        0.000
 03/25/10    04/25/10             0     0.000        0.000
 04/25/10    05/25/10             0     0.000        0.000
 05/25/10    06/25/10             0     0.000        0.000
 06/25/10    07/25/10             0     0.000        0.000
 07/25/10    08/25/10             0     0.000        0.000
 08/25/10    09/25/10             0     0.000        0.000
 09/25/10    10/25/10             0     0.000        0.000
 10/25/10    11/25/10             0     0.000        0.000
 11/25/10    12/25/10             0     0.000        0.000
 12/25/10    01/25/11             0     0.000        0.000
 01/25/11    02/25/11             0     0.000        0.000
 02/25/11    03/25/11             0     0.000        0.000
</TABLE>

                                     M3-19

<PAGE>

<TABLE>
<S>         <C>         <C>           <C>        <C>
 03/25/11    04/25/11             0     0.000        0.000
 04/25/11    05/25/11             0     0.000        0.000
 05/25/11    06/25/11             0     0.000        0.000
 06/25/11    07/25/11             0     0.000        0.000
 07/25/11    08/25/11             0     0.000        0.000
 08/25/11    09/25/11             0     0.000        0.000
 09/25/11    10/25/11             0     0.000        0.000
 10/25/11    11/25/11             0     0.000        0.000
 11/25/11    12/25/11             0     0.000        0.000
 12/25/11    01/25/12   111,561,244     9.791       12.000
 01/25/12    02/25/12   109,016,746     9.617       12.000
 02/25/12    03/25/12   106,530,484     9.970       12.000
 03/25/12    04/25/12   104,101,119     9.303       12.000
 04/25/12    05/25/12   101,727,342     9.403       12.000
 05/25/12    06/25/12    99,370,148     9.010       12.000
 06/25/12    07/25/12    95,341,766     9.234       12.000
 07/25/12    08/25/12    90,858,063     9.449       12.000
 08/25/12    09/25/12    86,601,391     9.735       12.000
 09/25/12    10/25/12    82,569,450     9.279       12.000
 10/25/12    11/25/12    78,776,549     8.970       12.000
 11/25/12    12/25/12    76,472,671     9.262       12.000
 12/25/12    01/25/13    74,737,280     9.027       12.000
 01/25/13    02/25/13    73,046,973     9.463       12.000
 02/25/13    03/25/13    71,396,707    10.682       12.000
 03/25/13    04/25/13    69,784,557     9.648       12.000
 04/25/13    05/25/13    68,208,903     9.968       12.000
 05/25/13    06/25/13    66,668,910     9.644       12.000
</TABLE>

                                     M3-20

<PAGE>

                       Exhibit A to Confirmation No. 39957

                   [Credit Support Annex to follow this page]

                                     M3-21
<PAGE>

                                   EXHIBIT M-4

       FORM OF CREDIT SUPPORT ANNEX RELATED TO THE CAP CORRIDOR CONTRACTS

(BILATERAL FORM)                  (ISDA AGREEMENTS SUBJECT TO NEW YORK LAW ONLY)

                                     ISDA(R)
              International Swaps and Derivatives Association, Inc.

                              CREDIT SUPPORT ANNEX
                             to the Schedule to the

                              ISDA MASTER AGREEMENT

                          Dated as of October 10, 2007

                                     between

          THE BANK OF NEW YORK            and   LASALLE BANK NATIONAL
                                                ASSOCIATION, NOT IN ITS
                                                INDIVIDUAL CAPACITY, BUT SOLELY
                                                AS TRUSTEE FOR THE MERRILL LYNCH
                                                FIRST FRANKLIN MORTGAGE LOAN
                                                TRUST, SERIES 2007-5

established as a banking organization           The Trust is a common law trust
under the laws of the State of New York         established under the laws of
                                                the State of New York.

              ("PARTY A")                                  ("PARTY B")

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

     This Annex supplements, forms part of, and is subject to, the Master
Agreement specified in the Confirmation(s) (BNY Ref. No. 39955, 39956 and
39957), dated even date herewith (the "AGREEMENT"), is part of the Schedule
deemed incorporated therein and is a Credit Support Document under the Master
Agreement with respect to Party A.

Accordingly, the parties agree as follows:--

PARAGRAPHS 1 - 12. INCORPORATION. Paragraphs 1 through 12 inclusive of the ISDA
Credit Support Annex (Bilateral Form) (ISDA Agreements Subject to New York Law
Only) published in 1994 by the International Swaps and Derivatives Association,
Inc. are incorporated herein by reference and made a part hereof.

PARAGRAPH 13.

AMENDED AND ADDITIONAL DEFINITIONS. As used in this Annex:--

                                      M-4-1

<PAGE>

     (i) SECURED PARTY, PLEDGOR. Notwithstanding anything contained in this
     Annex to the contrary, (a) the term "SECURED PARTY" as used in this Annex
     means only Party B, (b) the term "PLEDGOR" as used in this Annex means only
     Party A, and (c) only Party A makes the pledge and grant in Paragraph 2,
     the acknowledgment in the final sentence of Paragraph 8(a) and the
     representations in Paragraph 9.

     (ii) RATING AGENCY AND RELATED DEFINITIONS. When more than one Rating
     Agency rates the Certificates, such terms refer to each Rating Agency and
     its criteria separately rather than collectively.

     "RATING AGENCY" means, so long as it rates the Certificates, each of:

          (1) "MOODY'S": Moody's Investors Service Inc.

          (2) "S&P": Standard & Poor's Ratings Services, a division of The
          McGraw-Hill Companies, Inc.

          (3) "FITCH": Fitch, Inc., Fitch Ratings, Ltd., Derivative Fitch, Inc.,
          or Derivative Fitch Ltd., or any subsidiary, or successor thereof.

     "RATING AGENCY CONDITION", "QUALIFYING RATINGS", "LIMITED QUALIFYING
     RATINGS", and "DISQUALIFYING RATINGS" have the same meanings as assigned in
     Part 5(i)(i), notwithstanding restatement herein.

     The use of the name of a Rating Agency or its use prior to such terms in a
     provision indicates that such provision (or the applicable portion thereof)
     applies only with respect to the requirements of such Rating Agency, and
     excludes reference to the other Rating Agencies.

     (iii) RATINGS: The ratings assigned or withdrawn by a Rating Agency with
     respect to the unsecured and unguaranteed debt of Party A or any guarantor
     under a Qualified Guaranty, in the cases when such debt has both short-term
     and long-term debt ratings and when such debt has only long-term ratings,
     will be "LIMITED QUALIFYING RATINGS" and "DISQUALIFYING RATINGS", as
     identified below:

<TABLE>
<CAPTION>
                                              RATINGS OF PARTY A OR GUARANTOR
                                                UNDER A QUALIFIED GUARANTY:
                                           -------------------------------------
                                             HAS LONG-TERM AND    HAS ONLY LONG-
             RATING AGENCY:                 SHORT-TERM RATINGS     TERM RATINGS
             --------------                --------------------   --------------
<S>                                        <C>                    <C>
                                               "LIMITED QUALIFYING RATINGS":
MOODY'S:                                   P-2 or A3              A2 or A3
S&P: If Party A or guarantor under a       A-2                    A, A- or BBB+
Qualified Guaranty is a Financial
Institution:
FITCH:                                     F2 or A-               A-

                                                 "DISQUALIFYING RATINGS"*:
MOODY'S:                                   P-3 or Baa1 or below   Baa1 or below
S&P:
If Party A or guarantor under a            A-3 or below           BBB or below
Qualified Guaranty is a Financial
Institution:
If neither Party A nor guarantor under a   A-2 or below           A or below
Qualified Guaranty is a Financial
Institution:
FITCH:                                     F3 or BBB or below     BBB or below
</TABLE>

*    The withdrawal by Moody's of the short-term rating, or, if there is no
     short-term rating, the long-term rating, and the withdrawal by any other
     Rating Agency of all ratings, will be treated as a Disqualifying Rating
     unless the Rating Agency Condition is satisfied with respect thereto.

                                      M-4-2

<PAGE>

     (iv) "FINANCIAL INSTITUTION" means a bank, broker/dealer, insurance
     company, structured investment vehicle or derivative product company.

     (v) "LOCAL BUSINESS DAY" means: (i) any day on which commercial banks are
     open for business (including dealings in foreign exchange and foreign
     currency deposits) in New York, and (ii) in relation to a Transfer of
     Eligible Collateral, a day on which the clearance system agreed between the
     parties for the delivery of Eligible Collateral is open for acceptance and
     execution of settlement instructions (or in the case of a Transfer of Cash
     or other Eligible Collateral for which delivery is contemplated by other
     means, a day on which commercial banks are open for business (including
     dealings for foreign exchange and foreign currency deposits) in New York
     and such other places as the parties shall agree).

     (vi) "CREDIT SUPPORT DELIVERY PERIOD" means, with respect to the assignment
     of Limited Qualifying Ratings or Disqualifying Ratings, as the case may be,
     by a Rating Agency, the period beginning within, with respect to:

          (1) MOODY'S: thirty (30) Local Business Days

          (2) S&P: ten (10) Local Business Days

          (3) FITCH: thirty (30) calendar days

     thereafter (or, in each case, if such ratings exist from the time the
     Pledgor becomes a party hereto or the guarantor under a Qualified Guaranty
     becomes a guarantor, from such time), and continuing for so long as such
     Limited Qualifying Ratings or Disqualifying Ratings continue.

     If Disqualifying Ratings are assigned after Limited Qualifying Ratings have
     been assigned, collateral shall be posted in accordance with the
     requirements applicable to Limited Qualifying Ratings until the Credit
     Support Delivery Period with respect to the Disqualifying Ratings has
     commenced.

(a) SECURITY INTEREST FOR "OBLIGATIONS." The term "OBLIGATIONS" as used in this
Annex includes the following additional obligations: Not applicable.

(b) CREDIT SUPPORT OBLIGATIONS. During the Credit Support Delivery Period,
Credit Support Amount, Value, Delivery Amount and Return Amount will be
calculated separately for each Rating Agency then rating the Certificates in
accordance with the provisions relating to such Rating Agency set forth in this
Paragraph 13(b), and the Pledgor will Transfer the highest Delivery Amount and
the Secured Party will Transfer the lowest Return Amount so calculated,
provided, that the Return Amount will be reduced to such amount as necessary so
that Transfer of a Delivery Amount will not be required immediately after the
Transfer of such Return Amount.

     (i)DELIVERY AMOUNT, RETURN AMOUNT AND CREDIT SUPPORT AMOUNT.

          (A) "DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a)
          except that the words "upon a demand made by the Secured Party on or
          promptly following a Valuation Date" shall be deleted and replaced by
          the words "on each Valuation Date during the Credit Support Delivery
          Period."

          (B) "RETURN AMOUNT" has the meaning specified in Paragraph 3(b).

          (C) "CREDIT SUPPORT AMOUNT" in Paragraph 3(b), shall be amended in its
          entirety to read as follows:

                                      M-4-3

<PAGE>

          "'CREDIT SUPPORT AMOUNT' means, (x) for any Valuation Date during the
          Credit Support Delivery Period, (i) the Secured Party's Exposure for
          that Valuation Date, plus (ii) the Independent Amount applicable to
          the Pledgor (with respect to all Affected Transactions), if any, minus
          (iii) the Pledgor's Threshold; provided, however, that the Credit
          Support Amount will be deemed to be zero whenever the calculation of
          the Credit Support Amount yields a number less than zero, and shall
          not be less than the Credit Support Minimum; and (y) at any other
          time, None."

     The calculation of the Credit Support Amount during the Credit Support
     Delivery Period may be expressed in the following formula (which summarizes
     but does not supersede said provisions):

     Credit Support Amount = max [E + IA, 0, m]

     Where:

          max = the greater of; min = the lesser of

          E= Exposure (i.e., the market value of the Affected Transactions)

          IA = Independent Amount =

               * Moody's: min [DV01 x 15 % (daily); % in Schedule 2 x N]

               * Fitch: % in Schedule 3 (i.e., Volatility Cushion) x N

               * S&P: 25% x E (Disqualifying Ratings only)

          N = the aggregate notional amount of the Affected Transactions.

          m = Credit Support Minimum (Moody's (Disqualifying Ratings only))

     (ii) ELIGIBLE COLLATERAL AND VALUATION PERCENTAGE. The items and Valuation
     Percentages with respect to each Rating Agency set forth in Schedule 1 will
     be "ELIGIBLE COLLATERAL" and the applicable "VALUATION PERCENTAGE" for such
     Rating Agency. Sub-paragraph (i)(A) of the definition of "Value" is amended
     to read as follows: "(A) Cash, the face amount thereof multiplied by the
     applicable Valuation Percentage; and".

     (iii) OTHER ELIGIBLE SUPPORT. The following items will qualify as "OTHER
     ELIGIBLE SUPPORT" for the party specified: Not Applicable.

     (iv) THRESHOLDS.

          (A) "INDEPENDENT AMOUNT" means with respect to the Secured Party:
          Zero; and, with respect to the Pledgor for any Valuation Date: an
          amount (identified separately for each Rating Agency) equal to:

               (1) MOODY'S: the lesser of (x) the product of (I) if each Local
               Business Day is a Valuation Date, 15, and, otherwise, 25, and
               (II) with respect to each Transaction and any date of
               determination, the estimated change in the mid-market value with
               respect to such Transaction that would result from a one basis
               point change in the relevant swap curve on such date, as
               determined by the Valuation Agent in good faith and in a
               commercially reasonable manner in accordance with the relevant
               methodology customarily used by the Valuation Agent for such
               Transaction (such estimate, the "DVO1" of the Pledgor), and (y)
               the product of (I) the Notional

                                      M-4-4

<PAGE>

               Amount for each Transaction for the Calculation Period which
               includes such Valuation Date and (II) the applicable percentage
               set forth in Schedule 2.

               (2) S&P: (x) if S&P Limited Qualifying Ratings have been
               assigned, zero, and (y) if S&P Disqualifying Ratings have been
               assigned, the product of (I) the Secured Party's Exposure for
               that Valuation Date and (II) 25%.

               (3) FITCH: the product of the aggregate Notional Amount
               outstanding at the beginning of the related Calculation Period
               under the applicable Affected Transactions and the Fitch
               Volatility Cushion determined using the table set forth in
               Schedule 3.

          As used herein, "INDEPENDENT AMOUNT" means the additional amount to be
          added to the Secured Party's Exposure pursuant to the calculation of
          Credit Support Amount at the time the Delivery Amount is required to
          be delivered or transferred hereunder and does not imply or require
          that a separate amount be delivered or transferred on the execution of
          this Agreement or on any Trade Date or at any other time.

          (B) "THRESHOLD" means for the Pledgor: zero during the Credit Support
          Delivery Period and at any other time an infinite number.

          (C) "CREDIT SUPPORT MINIMUM" means, with respect to each Rating
          Agency, the amount identified below:

               (1) MOODY'S: if Moody's Disqualifying Ratings,have been assigned,
               the greater of zero and the aggregate amount of the net payments
               (each such net payment ("NET PAYMENT") being the greater of zero
               and the amount of the payment due to be made by the Pledgor under
               Section 2(a) on a Payment date less the amount of any payment due
               to be made by the Secured Party under Section 2(a) on the same
               Payment Date after giving effect to any applicable netting under
               Section 2(c)) with respect to all Affected Transactions due from
               the Pledgor in respect of all following scheduled Payments.

               (2) S&P: Zero.

               (3) FITCH: Zero.

          (D) "MINIMUM TRANSFER AMOUNT" means with respect to the Pledgor and
          the Secured Party: $100,000; provided, that the Minimum Transfer
          Amount for such party shall be $50,000 if the aggregate principal
          balance of the rated Certificates is $50,000,000 or less on the
          applicable Valuation Date, and upon the occurrence and during the
          continuance of an Event of Default, Termination Event, Additional
          Termination Event, or Specified Condition shall be zero.

          (E) ROUNDING. The Delivery Amount will be rounded up to the nearest
          integral multiple of $10,000 and the Return Amount will be rounded
          down to the nearest integral multiple of $10,000.

(c) VALUATION AND TIMING.

     (i) "VALUATION AGENT" means, the Pledgor in all circumstances.

     (ii) "VALUATION DATE" means:.

          [X]  each Local Business Day, or

                                      M-4-5

<PAGE>

          [ ]  any Local Business Day in each calendar week, which shall be the
               same calendar day each week to the extent practicable, on a
               reasonably consistent basis.

     provided, that, upon any assignment, transfer or novation of this Agreement
     by Party A, either a daily or weekly Valuation Date may be elected by the
     transferee.

     (iii) "VALUATION TIME" means:

          [ ]  the close of business in the city of the Valuation Agent on the
               Valuation Date or date of calculation, as applicable;

          [X]  the close of business on the Local Business Day before the
               Valuation Date or date of calculation, as applicable;

     provided, that (x) the calculations of Value and Exposure will be made as
     of approximately the same time on the same date, and (y) upon any
     assignment, transfer or novation of this Agreement by Party A, either same
     day or prior day Valuation Time may be elected by the transferee.

     (iv) "NOTIFICATION TIME" means 1:00 p.m., New York time, on a Local
     Business Day.

(d) CONDITIONS PRECEDENT AND SECURED PARTY'S RIGHTS AND REMEDIES. (i) Illegality
and (ii) Additional Termination Events will be a "SPECIFIED CONDITION" for the
Pledgor (as the Affected Party) (but not for purposes of Paragraph 8(d)), and
(iii) Tax Event and (iv) Tax Event Upon Merger will not be a "SPECIFIED
CONDITION for the Pledgor.

(e) SUBSTITUTION.

     (i) "SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

     (ii) CONSENT. If specified here as applicable, then the Pledgor must obtain
     the Secured Party's consent for any substitution pursuant to Paragraph
     4(d): Applicable.

(f) DISPUTE RESOLUTION.

     (i) "RESOLUTION TIME" means 1:00 p.m., New York time, on the Local Business
     Day following the date on which the notice is given that gives rise to a
     dispute under Paragraph 5.

     (ii) VALUE. For the purpose of Paragraphs 5(i)(C) and 5(ii), the Value of
     Posted Credit Support will be calculated as follows: as set forth for other
     purposes in Paragraph 12.

     (iii) ALTERNATIVE. The provisions of Paragraph 5 will apply, except to the
     following extent: (A) pending the resolution of a dispute, Transfer of the
     undisputed Value of Eligible Credit Support or Posted Credit Support
     involved in the relevant demand will be due as provided in Paragraph 5 if
     the demand is given by the Notification Time, but will be due on the second
     Local Business Day after the demand if the demand is given after the
     Notification Time; and (B) the Disputing Party need not comply with the
     provisions of Paragraph 5(II)(2) if the amount to be Transferred does not
     exceed the Disputing Party's Minimum Transfer Amount.

(g) HOLDING AND USING POSTED COLLATERAL.

     (i) ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS. The Secured Party
     will not be entitled to hold Posted Collateral itself, but will hold Posted
     Collateral in an identifiable segregated account through a Custodian (which
     may be the Trustee and which shall at all

                                      M-4-6

<PAGE>

     times be a financial institution as specified inthe Pooling and Servicing
     Agreement). If not so specified, the Custodian shall be a commercial bank
     or trust company which is unaffiliated with Party B organized under the
     laws of the United States or any state thereof, having assets of at least
     $10 billion and a long term debt or a deposit rating of at least Baa2 from
     Moody's and A from S&P. For so long as the Certificates are rated by S&P,
     any Custodian other than the Trustee shall have a short-term debt or
     deposit rating of at least A-1, or, if it has no short-term rating, a
     long-term debt or deposit rating of at least A+, from S&P and shall be
     replaced by the Trustee within sixty (60) calendar days after it ceases to
     have such ratings.

     Initially, the Custodian for Party B is: LaSalle Bank National Association

     (ii) USE OF POSTED COLLATERAL. The provisions of Paragraph 6(c) will not
     apply to the Secured Party; therefore, the Secured Party will not have any
     of the rights specified in Paragraph 6(c)(i) or 6 (c)(ii) except that the
     Secured Party may register any Posted Collateral in the name of the
     Custodian or its nominee under Paragraph 6(c)(ii).

(h) DISTRIBUTIONS AND INTEREST AMOUNT.

     (i) INTEREST RATE. The "INTEREST RATE", with respect to Eligible Collateral
     in the form of Cash will be the actual rate of interest earned by the
     Counterparty or the Custodian if the Cash is invested at the direction of
     the Pledgor in accordance with Paragraph 13(1)(vi); otherwise the "Interest
     Rate" will be, for any day, the rate opposite the caption "Federal Funds
     (Effective)" for such day as published for such day in Federal Reserve
     Publication H.15(519) or any successor publication as published by the
     Board of Governors of the Federal Reserve System or such other rate as
     agreed by the parties.

     (ii) TRANSFER OF INTEREST AMOUNT. The Transfer of the Interest Amount will
     be made on the first Local Business Day of each calendar month and on any
     Local Business Day that Posted Collateral in the form of Cash is
     Transferred to the Pledgor pursuant to Paragraph 3(b), subject to the
     receipt and availability of such funds.

     (iii) ALTERNATIVE TO INTEREST AMOUNT. The provisions of Paragraph 6(d)(ii)
     will apply.

(i) OTHER ELIGIBLE SUPPORT AND OTHER POSTED SUPPORT.

     (i) "VALUE" with respect to Other Eligible Support and Other Posted Support
     means: Inapplicable.

     (ii) "TRANSFER" with respect to Other Eligible Support and Other Posted
     Support means: Inapplicable.

(j) DEMANDS AND NOTICES. All demands, specifications and notices under this
Annex will be made pursuant to the Notices Section of this Agreement, unless
otherwise specified here:

     (i) Party A: Not applicable.

     (ii) Party B: Not applicable.

(k) ADDRESSES FOR TRANSFERS.

     Party A: For Cash: To be provided

              For Eligible Collateral: To be provided

     Party B: To be provided

                                      M-4-7

<PAGE>

(l) OTHER PROVISIONS.

     (i) TRANSFER TIMING.

          (A) Paragraph 4(b) shall be deleted and replaced in its entirety by
          the following paragraph: "Subject to Paragraphs 4(a) and 5 and unless
          otherwise specified, if a demand for the Transfer of Eligible Credit
          Support or Posted Credit Support is made by the Notification Time,
          then the relevant Transfer will be made not later than the close of
          business on the second Local Business Day thereafter; if a demand is
          made after the Notification Time then the relevant Transfer will be
          made not later than the close of business on the third Local Business
          Day thereafter."

          (B) Paragraph 6(d)(1) shall be amended so that the reference therein
          to "the following Local Business Day" shall be replaced by reference
          to "the second Local Business Day thereafter".

     (ii) NO COUNTERCLAIM. A party's rights to demand and receive the Transfer
     of Eligible Collateral as provided hereunder and its rights as Secured
     Party against the Posted Collateral or otherwise shall be absolute and
     subject to no counterclaim, set-off, deduction or defense in favor of the
     Pledgor except as contemplated in Sections 2 and 6 of the Agreement and
     Paragraph 8 of this Annex.

     (iii) HOLDING COLLATERAL. The Secured Party shall cause any Custodian
     appointed hereunder to open and maintain a segregated account (the "SWAP
     COLLATERAL ACCOUNT") and to hold, record and identify all the Posted
     Collateral therein and, subject to Paragraphs 6(c) and 8(a), such Posted
     Collateral shall at all times be and remain the property of the Pledgor and
     shall at no time constitute the property of, or be commingled with the
     property of, the Secured Party or the Custodian.

     (iv) INVESTMENT OF CASH POSTED COLLATERAL. Posted Collateral in the form of
     Cash shall be invested in Permitted Investments as directed by the Pledgor,
     with gains and losses incurred in respect of such investments to be for the
     account of the Pledgor, subject to the following parameters: the Posted
     Collateral in the form of Cash shall be invested in such overnight (or
     redeemable within two Local Business Days of demand) investments meeting at
     least two of the following ratings requirements by the respective Rating
     Agencies (of which one shall be S&P if the Certificates are rated by S&P)
     (x) AAAm or AAAm-G by S&P, (y) Prime -1 or Aaa by Moody's, and (z)
     'AAA'/'F1' by Fitch, as directed by the Pledgor (provided, that such
     investment shall be held uninvested or invested at the direction of the
     Secured Party if an Event of Default or an Additional Termination Event has
     occurred with respect to which the Pledgor is the defaulting or sole
     Affected Party and the Secured Party has designated an Early Termination
     Date with respect thereto). Such instructions may be delivered as standing
     instructions.

     (v) RETURN OF POSTED COLLATERAL. At any time the Pledgor is required to
     post collateral pursuant to Part 5(i)(ii) of the Schedule, the Pledgor
     shall be obligated to transfer Eligible Collateral in accordance with the
     terms of this Annex. If the Pledgor is so required to post collateral, and
     thereafter ceases to be required to post collateral, under Part 5(i)(ii) of
     the Schedule (and provided that no Event of Default exists with respect to
     the Pledgor) or the Pledgor has made a transfer, assignment or novation of
     this Agreement and all the Transactions, then the Pledgor's obligations to
     transfer Eligible Collateral under this Annex will immediately cease, and
     the Secured Party will, upon demand by the Pledgor, return to the Pledgor,
     or cause its Custodian to return, all Posted Collateral held under this
     Annex. Without prejudice to the provisions of Paragraph 8, the Secured
     Party is authorized to liquidate any Posted Collateral pursuant to written
     instructions from the Pledgor.

                                      M-4-8

<PAGE>

     (vi) EXPENSES. Notwithstanding Paragraph 10, the Pledgor will be
     responsible for, and will reimburse the Secured Party for, all transfer and
     other taxes and other costs involved in the transfer and maintenance of
     Eligible Collateral.

     (vii) LIMIT ON SECURED PARTY'S LIABILITY. The Secured Party will not be
     liable for any losses or damages that the Pledgor may suffer as a result of
     any failure by the Secured Party to perform, or any delay by it in
     performing, any of its obligations under this Annex if the failure or delay
     results from circumstances beyond the reasonable control of the Secured
     Party or its Custodian, such as interruption or loss of computer or
     communication services, labor disturbance, natural disaster or local or
     national emergency.

     (viii) EXTERNAL VERIFICATION OF MARK-TO-MARKET VALUATIONS. If the long-term
     or short-term senior unsecured debt of the Pledgor is rated BBB or F3 or
     below by Fitch, once every month, the Pledgor will at its own expense
     verify its determination of Exposure of the Transaction on the next
     Valuation Date by seeking quotations from two (2) Reference Market-makers
     (provided, that a Reference Market-maker may not be used more than four
     times within each 12 month period) for their determination of Exposure of
     the Transaction on such Valuation Date and the Valuation Agent will use the
     greater of either (a) its own determination or (b) the high quotation for a
     Reference Market-maker, if applicable for the next Valuation Date and cure
     any deficiency in collateral value within three Local Business Days. The
     Pledgor shall provide the quotations of such Reference Market-makers to
     Fitch.

                      [Signature page immediately follows]

                                      M-4-9

<PAGE>

     IN WITNESS WHEREOF the parties have executed this Credit Support Annex on
     the respective dates specified below with effect from the date on the first
     page.

THE BANK OF NEW YORK                    LASALLE BANK NATIONAL ASSOCIATION, NOT
                                        IN ITS INDIVIDUAL CAPACITY, BUT SOLELY
                                        AS TRUSTEE FOR THE MERRILL LYNCH FIRST
                                        FRANKLIN MORTGAGE LOAN TRUST, SERIES
                                        2007-5

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

                                     M-4-10
<PAGE>

                                   SCHEDULE 1A
                               ELIGIBLE COLLATERAL
                                     MOODY'S

Valuation Date (and Valuation Percentage column): Daily

Denomination of Credit Support Amount: USD

Moody's Valuation Percentage columns:

     *    Column A sets out the percentage applicable when Moody's Limited
          Qualifying Ratings have been assigned.

     *    Column B sets out the percentage applicable when Moody's Disqualifying
          Ratings have been assigned.

              ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S)

<TABLE>
<CAPTION>
                                                   REMAINING
                                                     YEARS
                                                  TO MATURITY     VALUATION    VALUATION
                                                 -------------   PERCENTAGE   PERCENTAGE
                                                          NOT      (DAILY)     (WEEKLY)
                ELIGIBLE COLLATERAL               MORE    MORE   ----------   ----------
               (CASH OR SECURITIES)              THAN:   THAN:    A     B      A     B
               --------------------              -----   -----   ---   ----   ---   ----
<S>                                              <C>     <C>     <C>   <C>    <C>   <C>
A.  U.S. Dollars (USD) Cash                       n/a     n/a    100%  100%   100%  100%
B.  Euro Cash                                     n/a     n/a     98%   94%    97%   93%
C.  Sterling (GBP) Cash                           n/a     n/a     98%   95%    97%   94%
D.  Floating-rate negotiable debt obligations
    issued by the U.S. Treasury Department
    after July 18, 1984 ("TREASURIES") of all
    maturities                                    n/a     n/a    100%   99%    99%   99%
E.  Fixed-rate US Treasuries                        0       1    100%  100%   100%  100%
F.  Fixed-rate Treasuries                           1       2    100%   99%   100%   99%
G.  Fixed-rate Treasuries                           2       3    100%   98%   100%   98%
H.  Fixed-rate Treasuries                           3       5    100%   97%   100%   97%
I.  Fixed-rate Treasuries                           5       7    100%   96%   100%   95%
J.  Fixed-rate Treasuries                           7      10    100%   94%   100%   94%
K.  Fixed-rate Treasuries                          10      20    100%   90%   100%   89%
L.  Fixed-rate Treasuries                          20      30    100%   88%   100%   87%
M.  Floating-rate negotiable debt obligations
    of the Federal National Mortgage
    Association (FNMA), Federal Home Loan
    Mortgage Corporation (FHLMC), Federal Home
    Loan Banks (FHLB), Federal Farm Credit
    Banks (FFCB), Tennessee Valley Authority
    (TVA) (collectively, "AGENCY SECURITIES")
    of all maturities                             n/a     n/a    100%   99%   100%   98%
N.  Fixed-rate Agency Securities                    0       1    100%   99%   100%   99%
O.  Fixed-rate Agency Securities                    1       2    100%   99%   100%   98%
P.  Fixed-rate Agency Securities                    2       3    100%   98%   100%   97%
Q.  Fixed-rate Agency Securities                    3       5    100%   96%   100%   96%
</TABLE>

                                    M-4-1A-1

<PAGE>

              ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S)

<TABLE>
<S>                                              <C>     <C>     <C>   <C>    <C>   <C>
R.  Fixed-rate Agency Securities                    5       7    100%   93%   100%   94%
S.  Fixed-rate Agency Securities                    7      10    100%   93%   100%   93%
T.  Fixed-rate Agency Securities                   10      20    100%   89%   100%   88%
U.  Fixed-rate Agency Securities                   20      30    100%   87%   100%   86%
V.  FHLMC Certificates. Mortgage participation
    certificates issued by FHLMC evidencing
    undivided interests or participations in
    pools of first lien conventional or FHA/VA
    residential mortgages or deeds of trust,
    guaranteed by FHLMC, issued after July 18,
    1984 and having a remaining maturity of
    not more than 1 year and
    [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
    not more than 30 years                          *       *      *     *      *     *
W.  FNMA Certificates. Mortgage-backed
    pass-through certificates issued by FNMA
    evidencing undivided interests in pools of
    first lien mortgages or deeds of trust on
    residential properties, guaranteed by
    FNMA, issued after July 18, 1984 and
    having a remaining maturity of not more
    than 1 year and
    [1-2][2-3][3-5][5-7][7-10][10-20][20-]
    and not more than 30 years.                     *       *      *     *      *     *
X.  GNMA Certificates. Mortgage-backed
    pass-through certificates issued by
    private entities, evidencing undivided
    interests in pools of first lien mortgages
    or deeds of trust on single family
    residences, guaranteed by the Government
    National Mortgage Association (GNMA) with
    the full faith and credit of the United
    States, issued after July 18, 1984 and
    having a remaining maturity of not more
    than 1 year and
    [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
    not more than 30 years.                         *       *      *     *      *     *
Y.  Floating rate commercial mortgage-backed
    securities rated AAA by two major rating
    agencies (including S&P if S&P is a Rating
    Agency hereunder) with a minimum par or
    face amount of $250 million (excluding
    securities issued under Rule 144A)
    ("COMMERCIAL MORTGAGE-BACKED SECURITIES")
    having a remaining maturity of not more
    than 1 year and
    [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
    not more than 30 years.                         *       *      *     *      *     *
Z.  Commercial Paper with a rating of at least
    P-1 by Moody's and at least
</TABLE>

                                    M-4-1A-2

<PAGE>

              ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S)

<TABLE>
<S>                                              <C>     <C>     <C>   <C>    <C>   <C>
    A-1+ by S&P (if S&P is a Rating Agency
    hereunder) and having a remaining
    maturity of not more than 30 days.            n/a     n/a      *     *      *     *
AA. Floating Rate Euro-denominated negotiable
    debt obligations rated Aa3 and above by
    Moody's issued or guaranteed by (a) the
    Bank of England on behalf of the Treasury
    of the United Kingdom; (b) the government
    of France; (c) the government of Germany;
    and (d) the government of Belgium ("EURO
    GOVERNMENT SECURITIES") of all maturities     n/a     n/a     98%   93%    97%   92%
BB. Fixed-Rate Euro Government Securities           0       1     98%   94%    97%   93%
CC. Fixed-Rate Euro Government Securities           1       2     98%   93%    97%   92%
DD. Fixed-Rate Euro Government Securities           2       3     98%   92%    97%   91%
EE. Fixed-Rate Euro Government Securities           3       5     98%   90%    97%   89%
FF. Fixed-Rate Euro Government Securities           5       7     98%   89%    97%   87%
GG. Fixed-Rate Euro Government Securities           7      10     98%   88%    97%   86%
HH. Fixed-Rate Euro Government Securities          10      20     98%   84%    97%   82%
II. Fixed-Rate Euro Government Securities          20      30     98%   82%    97%   80%
JJ. Floating-Rate Sterling Pound-denominated
    negotiable debt obligations rated Aa3 and
    above by Moody's issued by the Bank of
    England on behalf of the Treasury of the
    United Kingdom ("GILTS") of all maturities    n/a     n/a     98%   93%    97%   93%
KK. Fixed-Rate Gilts                                0       1     98%   94%    97%   93%
LL. Fixed-Rate Gilts                                1       2     98%   93%    97%   92%
MM. Fixed-Rate Gilts                                2       3     98%   92%    97%   91%
NN. Fixed-Rate Gilts                                3       5     98%   91%    97%   90%
OO. Fixed-Rate Gilts                                5       7     98%   90%    97%   89%
PP. Fixed-Rate Gilts                                7      10     98%   89%    97%   88%
QQ. Fixed-Rate Gilts                               10      20     98%   86%    97%   84%
</TABLE>

                                    M-4-1A-3

<PAGE>

              ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S)

<TABLE>
<S>                                              <C>     <C>     <C>   <C>    <C>   <C>
RR. Fixed-Rate Gilts                               20      30     98%   84%    97%   82%
SS. Other Items of Credit Support approved by
    the Rating Agency to the extent any Notes
    are rated.                                      *       *      *     *      *     *
</TABLE>

*    Zero, or such other valuation percentages as supplied or published by
     Moody's, in respect of which Moody's has delivered a ratings confirmation.

                                    M-4-1A-4
<PAGE>

                                   SCHEDULE 1B
                               ELIGIBLE COLLATERAL
                                       S&P

Valuation Date (and Valuation Percentage column): Daily
Denomination of Credit Support Amount: USD

S&P Valuation Percentage columns:

*    Column A sets out the percentage to be used when S&P Limited Qualifying
     Ratings have been assigned.

*    Column B sets out the percentage to be used when S&P Disqualifying Ratings
     have been assigned.

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<CAPTION>
                                                       REMAINING
                                                         YEARS
                                                      TO MATURITY    VALUATION      VALUATION
                                                    -------------    PERCENTAGE    PERCENTAGE
                                                             NOT      (DAILY)       (WEEKLY)
                  ELIGIBLE COLLATERAL                MORE    MORE   -----------   ------------
                 (CASH OR SECURITIES)               THAN:   THAN:     A      B      A       B
                 --------------------               -----   -----   ----   ----   -----   ----
<S>                                                 <C>     <C>     <C>    <C>    <C>     <C>
A.  U.S. Dollars (USD) Cash                          n/a     n/a     100%  80.0%    100%    80%
B.  EUR Cash                                         n/a     n/a    95.1%  76.1%   92.6%  74.1%
C.  Sterling (GBP) Cash                              n/a     n/a    96.1%  76.9%   94.1%  75.3%
D.  Floating-rate negotiable debt obligations        n/a     n/a     n/a    n/a     n/a    n/a
    issued by the U.S. Treasury Department after
    July 18, 1984 ("FLOATING RATE TREASURIES") of
    all maturities
E.  Fixed-rate negotiable debt obligations issued      0       1    98.9%  79.1%   98.0%  78.4%
    by the U.S. Treasury Department after July
    18, 1984 ("FIXED-RATE TREASURIES")
F.  Fixed-rate Treasuries                              1       2    98.0%  78.4%   98.0%  78.4%
G.  Fixed-rate Treasuries                              2       3    98.0%  78.4%   98.0%  78.4%
H.  Fixed-rate Treasuries                              3       5    98.0%  78.4%   98.0%  78.4%
I.  Fixed-rate Treasuries                              5       7    93.7%  75.0%   92.6%  74.1%
J.  Fixed-rate Treasuries                              7      10    92.6%  74.1%   92.6%  74.1%
K.  Fixed-rate Treasuries                             10      20    91.1%  72.9%   87.9%  70.3%
L.  Fixed-rate Treasuries                             20      30    88.6%  70.9%   84.6%  67.7%
M.  Floating-rate negotiable debt obligations of     n/a     n/a       *      *       *      *
    the Federal National Mortgage Association
    (FNMA), Federal Home Loan Mortgage
    Corporation (FHLMC), Federal Home Loan Banks
    (FHLB), Federal Farm Credit Banks (FFCB),
    Tennessee Valley Authority (TVA)
    (collectively, "FLOATING-RATE AGENCY
    SECURITIES") (all maturities)
</TABLE>

                                    M-4-1B-1

<PAGE>

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<S>                                                 <C>     <C>     <C>    <C>    <C>     <C>
N.  Fixed-rate negotiable debt obligations of the      0       1    98.5%  78.8%   98.0%  78.4%
    Federal National Mortgage Association (FNMA),
    Federal Home Loan Mortgage Corporation
    (FHLMC), Federal Home Loan Banks (FHLB),
    Federal Farm Credit Banks (FFCB), Tennessee
    Valley Authority issued after July 18, 1984
    (TVA) (collectively, "FIXED-RATE AGENCY
    SECURITIES")
O.  Fixed-rate Agency Securities                       1       2    98.0%  78.4%   98.0%  78.4%
P.  Fixed-rate Agency Securities                       2       3    98.0%  78.4%   98.0%  78.4%
Q.  Fixed-rate Agency Securities                       3       5    98.0%  78.4%   98.0%  78.4%
R.  Fixed-rate Agency Securities                       5       7    92.6%  74.1%   92.6%  74.1%
S.  Fixed-rate Agency Securities                       7      10    92.6%  74.1%   92.6%  74.1%
T.  Fixed-rate Agency Securities                      10      20    87.7%  70.2%   82.6%  66.1%
U.  Fixed-rate Agency Securities                      20      30    84.4%  67.5%   77.9%  62.3%
V.  FHLMC Certificates. Mortgage participation         *       *       *      *       *      *
    certificates issued by FHLMC evidencing
    undivided interests or participations in
    pools of first lien conventional or FHA/VA
    residential mortgages or deeds of trust,
    guaranteed by FHLMC, issued after July 18,
    1984 and having a remaining maturity of not
    more than 1 year and
    [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
    not more than 30 years
W.  FNMA Certificates. Mortgage-backed                 *       *       *      *       *      *
    pass-through certificates issued by FNMA
    evidencing undivided interests in pools of
    first lien mortgages or deeds of trust on
    residential properties, guaranteed by FNMA,
    issued after July 18, 1984 and having a
    remaining maturity of not more than 1 year
    and [1-2][2-3][3-5][5-7][7-10][10-20][20-]
    and not more than 30 years
X.  GNMA Certificates. Mortgage-backed                 *       *       *      *       *      *
    pass-through certificates issued by private
    entities, evidencing undivided interests in
    pools of first lien mortgages or deeds of
    trust on single family residences, guaranteed
    by the Government National Mortgage
    Association (GNMA) with the full faith and
    credit of the United States, issued after
    July 18, 1984 and having a remaining maturity
    of not more than 1 year and
    [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
    not more than 30 years
</TABLE>

                                    M-4-1B-2

<PAGE>

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<S>                                                 <C>     <C>     <C>    <C>    <C>     <C>
Y.  Floating rate commercial mortgage-backed           *       *       *      *       *      *
    securities rated AAA by two major rating
    agencies (including S&P if S&P is a Rating
    Agency hereunder) with a minimum par or face
    amount of $250 million (excluding securities
    issued under Rule 144A) ("COMMERCIAL MORTGAGE
    - BACKED SECURITIES") having a remaining
    maturity of not more than 1 year and
    [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
    not more than 30 years
Z.  Commercial Paper with a rating of at least       n/a     n/a       *      *       *      *
    P-1 by Moody's and at least A-1+ by S&P and
    having a remaining maturity of not more than
    30 days
AA. Floating Rate Euro-denominated negotiable          0       5       *      *       *      *
    debt obligations rated AAA by S&P issued or
    guaranteed by (a) the Bank of England on
    behalf of the Treasury of the United Kingdom;
    (b) the government of France; (c) the
    government of Germany; and (d) the government
    of Belgium ("EURO GOVERNMENT SECURITIES")
BB. Floating-Rate Euro Government Securities           5      10       *      *       *      *
CC. Fixed-Rate Euro Government Securities              0       1    98.8%  79.0%   95.2%  76.2%
DD. Fixed-Rate Euro Government Securities              1       2    97.9%  78.3%   95.2%  76.2%
EE. Fixed-Rate Euro Government Securities              2       3    96.9%  77.5%   95.2%  76.2%
FF. Fixed-Rate Euro Government Securities              3       5    95.2%  76.2%   95.2%  76.2%
GG. Fixed-Rate Euro Government Securities              5       7    88.7%  71.0%   87.0%  69.6%
HH. Fixed-Rate Euro Government Securities              7      10    87.0%  69.6%   87.0%  69.6%
II. Fixed-Rate Euro Government Securities             10      20    75.5%  60.4%   72.5%  58.0%
JJ. Fixed-Rate Euro Government Securities             20      30       *      *       *      *
KK. Floating-Rate Sterling Pound-denominated           0       5       *      *       *      *
    negotiable debt obligations rated AAA by S&P
    issued by the Bank of England on behalf of
    the Treasury of the United Kingdom ("GILTS")
LL. Floating-Rate Gilts                                5      10       *      *       *      *
MM. Fixed-Rate Gilts                                   0       1       *      *       *      *
NN. Fixed-Rate Gilts                                   1       2       *      *       *      *
</TABLE>

                                    M-4-1B-3

<PAGE>

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<S>                                                 <C>     <C>     <C>    <C>    <C>     <C>
OO. Fixed-Rate Gilts                                   2       3       *      *       *      *
PP. Fixed-Rate Gilts                                   3       5       *      *       *      *
QQ. Fixed-Rate Gilts                                   5       7       *      *       *      *
RR. Fixed-Rate Gilts                                   7      10       *      *       *      *
SS. Fixed-Rate Gilts                                  10      20       *      *       *      *
TT. Fixed-Rate Gilts                                  20      30       *      *       *      *
UU. Other Items of Credit Support approved by the                      *      *       *      *
    Rating Agency to the extent any Certificates
    are rated
</TABLE>

*    Zero, or such other valuation percentages as supplied or published by S&P,
     in respect of which the S&P Rating Agency Condition has been satisfied.

                                    M-4-1B-4
<PAGE>

                                   SCHEDULE 1C
                               ELIGIBLE COLLATERAL
                                      FITCH

Valuation Date: Weekly (Percentages for Daily to be substituted on publication
or communication by Fitch.) Denomination of Credit Support Amount: USD

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<CAPTION>
                                                            REMAINING
                                                             YEARS TO      VALUATION    VALUATION
                                                             MATURITY     PERCENTAGE   PERCENTAGE
                                                          -------------     (DAILY)     (WEEKLY)
                                                                   NOT    -----------------------
                                                           MORE    MORE       (AAA        (AAA
          ELIGIBLE COLLATERAL (CASH OR SECURITIES)        THAN:   THAN:      RATED)      RATED)
          ----------------------------------------        -----   -----   ----------   ----------
<S>                                                       <C>     <C>     <C>          <C>
A.   U.S. Dollars (USD) Cash                               n/a     n/a       100%
B.   EUR Cash
C.   Sterling (GBP) Cash
D.   Floating-rate negotiable debt obligations issued      n/a     n/a          *
     by the U.S. Treasury Department after July 18,
     1984 ("FLOATING-RATE TREASURIES") of all
     maturities
E.   Fixed-rate negotiable debt obligations issued by        0       1       99.5%
     the U.S. Treasury Department after July 18, 1984
     ("FIXED-RATE TREASURIES")
F.   Fixed-rate Treasuries                                   1       2       97.6%
G.   Fixed-rate Treasuries                                   2       3       97.6%
H.   Fixed-rate Treasuries                                   3       5       96.3%
I.   Fixed-rate Treasuries                                   5       7       95.3%
J.   Fixed-rate Treasuries                                   7      10       93.9%
K.   Fixed-rate Treasuries                                  10      15       92.6%
L.   Fixed-rate Treasuries                                  15      30          *           *
M.   Floating-rate negotiable debt obligations of the      n/a     n/a          *           *
     Federal National Mortgage Association (FNMA),
     Federal Home Loan Mortgage Corporation (FHLMC),
     Federal Home Loan Banks (FHLB), Federal Farm
     Credit Banks (FFCB), Tennessee Valley Authority
     (TVA) (collectively, "FLOATING-RATE AGENCY
     SECURITIES") of all maturities
N.   Fixed-Rate negotiable debt obligations of the           0       1          *           *
     Federal National Mortgage Association (FNMA),
     Federal Home Loan Mortgage Corporation (FHLMC),
     Federal Home Loan Banks (FHLB), Federal Farm
     Credit Banks (FFCB), Tennessee Valley Authority
     (TVA) issued after July 18, 1984. (collectively,
     "FIXED-RATE AGENCY SECURITIES")
O.   Fixed-rate Agency Securities                            1       2          *           *
P.   Fixed-rate Agency Securities                            2       3          *           *
</TABLE>

                                    M-4-1C-1

<PAGE>

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<S>                                                       <C>     <C>     <C>          <C>
Q.   Fixed-rate Agency Securities                            3       5          *           *
R.   Fixed-rate Agency Securities                            5       7          *           *
S.   Fixed-rate Agency Securities                            7      10          *           *
T.   Fixed-rate Agency Securities                           10      15          *           *
U.   Fixed-rate Agency Securities                           20      30          *           *
V.   FHLMC Certificates. Mortgage participation                                 *           *
     certificates issued by FHLMC evidencing undivided
     interests or participations in pools of first lien
     conventional or FHA/VA residential mortgages or
     deeds of trust, guaranteed by FHLMC, issued after
     July 18, 1984 and having a remaining maturity of
     not more than 1 year and
     [1-2][2-3][3-5][5-7][7-10][10-20][20-30] years
W.   FNMA Certificates. Mortgage-backed pass-through                            *           *
     certificates issued by FNMA evidencing undivided
     interests in pools of first lien mortgages or
     deeds of trust on residential properties,
     guaranteed by FNMA, issued after July 18, 1984 and
     having a remaining maturity of not more than 1
     year and [1-2][2-3][3-5][5-7][7-10][10-20][20-30]
     years
X.   GNMA Certificates. Mortgage-backed pass-through                            *           *
     certificates issued by private entities,
     evidencing undivided interests in pools of first
     lien mortgages or deeds of trust on single family
     residences, guaranteed by the Government National
     Mortgage Association (GNMA) with the full faith
     and credit of the United States, issued after July
     18, 1984 and having a remaining maturity of not
     more than 1 year and
     [1-2][2-3][3-5][5-7][7-10][10-20][20-30] years
Y.   Floating rate commercial mortgage-backed                                   *           *
     securities rated AAA by two major rating agencies
     with a minimum par or face amount of $250 million
     (excluding securities issued under Rule 144A)
     ("COMMERCIAL MORTGAGE-BACKED SECURITIES") having a
     remaining maturity of
     [1-2][2-3][3-5][5-7][7-10][10-20][20- 30] years
Z.   Commercial Paper with a rating of at least F-1+ by                      99.5%
     Fitch and having a remaining maturity of not more
     than 1 year denominated in USD, EUR or GBP
AA.  Floating-Rate Sterling Pound-denominated                *       *          *           *
     negotiable debt obligations issued by the Bank of
     England on behalf of the Treasury of the United
     Kingdom ("GILTS") of all maturities
BB.  Fixed-Rate Gilts                                        0       1       99.3%
</TABLE>

                                    M-4-1C-2

<PAGE>

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<S>                                                       <C>     <C>     <C>          <C>
CC.  Fixed-Rate Gilts                                        1       2       97.8%
DD.  Fixed-Rate Gilts                                        2       3       97.8%
EE.  Fixed-Rate Gilts                                        3       5       96.6%
FF.  Fixed-Rate Gilts                                        5       7       95.7%
GG.  Fixed-Rate Gilts                                        7      10       94.0%
HH.  Fixed-Rate Gilts                                       10      15       92.8%
II.  Fixed-Rate Gilts                                       15      30          *           *
JJ.  Floating-Rate Euro-denominated negotiable debt        n/a     n/a          *           *
     obligations rated Aa3 and above by Moody's issued
     or guaranteed by the government of France ("OATS")
     of all maturities
KK.  Fixed-Rate Oats                                         0       1       98.8%
LL.  Fixed-Rate Oats                                         1       2
MM.  Fixed-Rate Oats                                         2       3       98.2%
NN.  Fixed-Rate Oats                                         3       5       98.2%
OO.  Fixed-Rate Oats                                         5       7       97.0%
PP.  Fixed-Rate Oats                                         7      10       96.0%
QQ.  Fixed-Rate Oats                                        10      15       94.7%
RR.  Fixed-Rate Oats                                        15      30         *            *
SS.  Floating-Rate Euro-denominated negotiable debt        n/a     n/a         *            *
     obligations rated Aa3 and above by Moody's issued
     or guaranteed by the government of Germany
     ("BUNDS") of all maturities
TT.  Fixed-Rate Bunds                                        0       1       99.3%
UU.  Fixed-Rate Bunds                                        1       2       98.1%
VV.  Fixed-Rate Bunds                                        2       3       98.1%
WW.  Fixed-Rate Bunds                                        3       5       96.9%
XX.  Fixed-Rate Bunds                                        5       7       96.2%
YY.  Fixed-Rate Bunds                                        7      10       95.1%
ZZ.  Fixed-Rate Bunds                                       10      15       94.2%
AAA. Fixed-Rate Bunds                                       15      30          *           *
BBB. Floating-Rate Euro-denominated negotiable debt        n/a     n/a
     obligations rated Aa3 and above by Moody's issued
     or guaranteed by the government of Belgium
     ("OLOS") of all maturities
CCC. Fixed-Rate Olos                                         0       1       99.3%
DDD. Fixed-Rate Olos                                         1       2       98.1%
EEE. Fixed-Rate Olos                                         2       3       98.1%
FFF. Fixed-Rate Olos                                         3       5       96.9%
GGG. Fixed-Rate Olos                                         5       7       96.2%
HHH. Fixed-Rate Olos                                         7      10       95.1%
</TABLE>

                                    M-4-1C-3

<PAGE>

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<S>                                                       <C>     <C>     <C>          <C>
III. Fixed-Rate Olos                                        10      15       94.2%
JJJ. Fixed-Rate Olos                                        15      30          *           *
KKK. Other Items of Credit Support approved by the                              *           *
     Rating Agency to the extent any Certificates are
     rated
</TABLE>

*    Zero, or such other valuation percentages as supplied or published by
     Fitch, in respect of which Fitch has delivered a ratings confirmation.

In addition to (and if not set forth in) the foregoing table, the following
items will constitute Eligible Collateral, at the valuation percentages
indicated (weekly valuation basis) or to be supplied or as published by Fitch
(daily valuation basis) (assuming the notes to be denominated in the currency
indicated):

               VALUATION PERCENTAGES FOR GOVERNMENT BONDS (FITCH)

                     (Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                      REMAINING
                        YEARS
                     TO MATURITY
                    -------------
                             NOT         NOTES' RATING (%)
                     MORE    MORE   ---------------------------
REGION   CURRENCY   THAN:   THAN:   'AAA'   'AA'    'A'   'BBB'
------   --------   -----   -----   -----   ----   ----   -----
<S>      <C>        <C>     <C>     <C>     <C>    <C>    <C>
Europe      EUR        0       1     99.6   99.7   99.8    99.8
Europe      EUR        1       3     98.7   99.1   99.3    99.4
Europe      EUR        3       5     98.0   98.6   98.9    99.1
Europe      EUR        5       7     97.5   98.2   98.6    98.9
Europe      EUR        7      10     96.8   97.7   98.2    98.6
Europe      EUR       10      15     95.9   97.1   97.7    98.2
U.K.        GBP        0       1     99.6   99.7   99.8    99.8
U.K.        GBP        1       3     98.5   99.1   99.3    99.4
U.K.        GBP        3       5     97.9   98.6   98.9    99.1
U.K.        GBP        5       7     97.2   98.2   98.6    98.9
U.K.        GBP        7      10     96.7   97.7   98.2    98.5
U.K.        GBP       10      15     95.7   97.0   97.6    98.1
</TABLE>

                                    M-4-1C-4

<PAGE>

<TABLE>
<S>      <C>        <C>     <C>     <C>     <C>    <C>    <C>
U.S.        USD        0       1     99.5   99.6   99.7    99.8
U.S.        USD        1       3     98.2   98.7   99.0    99.2
U.S.        USD        3       5     96.6   97.9   98.4    98.7
U.S.        USD        5       7     95.3   97.3   97.9    98.3
U.S.        USD        7      10     93.9   96.4   97.2    97.7
U.S.        USD       10      15     92.7   95.5   96.5    97.1
</TABLE>

                                    M-4-1C-5
<PAGE>

                                   SCHEDULE 2

                     MOODY'S INDEPENDENT AMOUNT PERCENTAGES

Valuation Date (and Valuation Percentage column): Daily
Denomination of Credit Support Amount: USD

The following percentages shall be used in the calculation of the Moody's
Independent Amount:

*    Column A: LIMITED QUALIFYING RATINGS INDEPENDENT AMOUNT PERCENTAGE:

     Percentage to be used when Moody's Limited Qualifying Ratings have been
     assigned.

     Applies to any Transaction.

*    Column B: DISQUALIFYING RATINGS INDEPENDENT AMOUNT PERCENTAGE (TRANSACTION
     SPECIFIC HEDGES):

     Percentage to be used when Moody's Disqualifying Ratings have been
     assigned.

     Applies to any Transaction that is an interest rate cap, interest rate
     floor or interest rate swaption, or that is an interest rate swap the
     notional amount of which is "balance guaranteed" or, for any Calculation
     Period, otherwise is not a specific dollar amount that is fixed at the
     inception of the Transaction (a "TRANSACTION-SPECIFIC HEDGE").

*    Column C: DISQUALIFYING RATINGS INDEPENDENT AMOUNT PERCENTAGE
     (NON-TRANSACTION SPECIFIC HEDGES):

     Percentage to be used when Moody's Disqualifying Ratings have been
     assigned.

     Applies to any Transaction that is not a Transaction-Specific Hedge.

<TABLE>
<CAPTION>
 WEIGHTED AVERAGE LIFE OF   MOODY'S INDEPENDENT
   TRANSACTION IN YEARS      AMOUNT PERCENTAGES
-------------------------   -------------------
MORE THAN   NOT MORE THAN     A       B      C
<S>         <C>             <C>    <C>     <C>
    0             1         0.15%   0.65%  0.50%
    1             2         0.30%   1.30%  1.00%
    2             3         0.40%   1.90%  1.50%
    3             4         0.60%   2.50%  1.90%
    4             5         0.70%   3.10%  2.40%
    5             6         0.80%   3.60%  2.80%
    6             7         1.00%   4.20%  3.20%
    7             8         1.10%   4.70%  3.60%
    8             9         1.20%   5.20%  4.00%
    9            10         1.30%   5.70%  4.40%
   10            11         1.40%   6.10%  4.70%
   11            12         1.50%   6.50%  5.00%
   12            13         1.60%   7.00%  5.40%
   13            14         1.70%   7.40%  5.70%
   14            15         1.80%   7.80%  6.00%
   15            16         1.90%   8.20%  6.30%
   16            17         2.00%   8.60%  6.60%
   17            18         2.00%   9.00%  6.90%
</TABLE>

                                     M-4-2-1

<PAGE>

<TABLE>
<S>         <C>             <C>    <C>     <C>
   18            19         2.00%   9.40%  7.20%
   19            20         2.00%   9.70%  7.50%
   20            21         2.00%  10.00%  7.80%
   21            22         2.00%  10.00%  8.00%
   22            30         2.00%  10.00%
</TABLE>

                                     M-4-2-2

<PAGE>

                                   SCHEDULE 3
                            FITCH VOLATILITY CUSHION

Valuation: Daily
Denomination of Credit Support Amount: USD

The Fitch Volatility Cushion will be determined using the following tables
(provided that percentages assuming daily posting of collateral, based on
assumptions in effect on the date hereof, are to be substituted on publication
or communication by Fitch.):

             VOLATILITY CUSHIONS FOR INTEREST RATE SWAPS AND COLLARS

                   (%, Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                                                   WEIGHTED AVERAGE LIFE (YEARS)
                             BASIS   ---------------------------------------------------------
CURRENCY    NOTES' RATHING    SWAP    1     2     3     4     5     6     7     8     9     10
--------   ---------------   -----   ---   ---   ---   ---   ---   ---   ---   ---   ---   ---
<S>        <C>               <C>     <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
USD        'AA-' or Better    0.19   0.6   1.6   2.6   3.4   4.2   4.8   5.5   5.9   6.4   7.0
USD        'A+/A'             0.10   0.3   0.8   1.3   1.7   2.1   2.4   2.8   3.0   3.3   3.6
USD        'A-/BBB+'          0.07   0.2   0.6   1.0   1.3   1.6   1.9   2.1   2.3   2.5   2.7
EUR        'AA-' or Better    0.11   0.4   1.0   1.6   2.1   2.5   2.8   3.1   3.4   3.6   3.9
EUR        'A+/A'             0.07   0.2   0.6   1.0   1.3   1.5   1.7   1.9   2.1   2.2   2.4
EUR        'A-/BBB+'          0.05   0.2   0.5   0.7   1.0   1.1   1.3   1.4   1.6   1.7   1.8
GBP        'AA-' or Better    0.12   0.4   1.1   1.6   2.0   2.4   2.7   3.0   3.2   3.5   4.0
GBP        'A+/A'             0.07   0.3   0.6   0.9   1.2   1.4   1.5   1.8   1.9   2.0   2.3
GBP        'A-/BBB+'          0.05   0.2   0.5   0.7   0.9   1.1   1.2   1.4   1.5   1.6   1.8
</TABLE>

                   VOLATILITY CUSHIONS FOR INTEREST RATE CAPS

                   (%, Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                                           WEIGHTED AVERAGE LIFE (YEARS)
                             ---------------------------------------------------------
CURRENCY    NOTES' RATING     1     2     3     4     5     6     7     8     9     10
--------   ---------------   ---   ---   ---   ---   ---   ---   ---   ---   ---   ---
<S>        <C>               <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
USD        'AA-' or Better   0.4   1.3   2.1   2.8   3.3   4.0   4.0   4.3   4.5   5.0
USD        'A+/A'            0.3   0.8   1.3   1.7   1.8   2.4   2.4   2.4   2.5   2.5
USD        'A-/BBB+'         0.2   0.6   0.9   1.2   1.2   1.6   1.6   1.8   1.8   1.9
EUR        'AA-' or Better   0.3   0.8   1.3   1.5   1.9   1.9   2.1   2.2   2.4   2.4
</TABLE>

                                     M-4-3-1

<PAGE>

<TABLE>
<S>        <C>               <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
EUR         A+/A             0.2   0.6   0.9   1.2   1.3   1.4   1.6   1.6   1.7   1.7
EUR        'A-/BBB+'         0.2   0.5   0.7   0.9   1.1   1.2   1.2   1.3   1.3   1.3
GBP        'AA-' or Better   0.4   1.0   1.3   1.7   1.7   1.7   2.0   2.2   2.2   2.2
GBP        'A+/A'            0.2   0.6   0.8   1.0   1.1   1.1   1.3   1.5   1.5   1.5
GBP        'A-/BBB+'         0.2   0.4   0.6   0.8   0.9   0.9   1.0   1.2   1.2   1.2
</TABLE>

                  VOLATILITY CUSHIONS FOR CROSS-CURRENCY SWAPS

                   (%, Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                                                   WEIGHTED AVERAGE LIFE (YEARS)
                             BASIS   ---------------------------------------------------------
CURRENCY    NOTES' RATING     SWAP    1     2     3     4     5     6     7     8     9     10
--------   ---------------   -----   ---   ---   ---   ---   ---   ---   ---   ---   ---   ---
<S>        <C>               <C>     <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
EUR/GBP    'AA-' or Better    4.6    4.7   4.8   4.9   5.1   5.3   5.4   5.6   5.7   5.8   6.0
EUR/GBP    'A+/A'             3.7    3.8   3.8   4.0   4.1   4.2   4.4   4.5   4.6   4.7   4.9
EUR/GBP    'A-/BBB+'          3.0    3.0   3.1   3.2   3.3   3.4   3.5   3.6   3.7   3.8   3.9
EUR/USD    'AA-' or Better    8.0    8.1   8.3   8.6   8.8   9.0   9.1   9.3   9.4   9.5   9.7
EUR/USD    'A+/A'             5.1    5.2   5.3   5.5   5.6   5.8   5.9   6.0   6.0   6.1   6.2
EUR/USD    'A-/BBB+'          4.3    4.4   4.5   4.7   4.8   4.9   5.0   5.1   5.1   5.2   5.3
GBP/USD    'AA-' or Better    6.4    6.4   6.5   6.6   6.7   6.8   6.9   7.1   7.2   7.3   7.5
GBP/USD    'A+/A'             4.2    4.2   4.3   4.3   4.4   4.5   4.5   4.6   4.7   4.8   4.9
GBP/USD    'A-/BBB+'          3.4    3.4   3.5   3.5   3.6   3.6   3.7   3.8   3.8   3.9   4.0
</TABLE>

                                     M-4-3-2

<PAGE>

                                    EXHIBIT N

                                   [RESERVED]

                                       N-1

<PAGE>

                                    EXHIBIT O

                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER TO REGULATION S BOOK-ENTRY CERTIFICATE
  FROM A HOLDER OF A RULE 144A BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
Mortgage Loan Trust, Series 2007-5

RE:  Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage
     Loan Asset-Backed Certificates

Ladies and Gentlemen:

          In connection with our disposition of the Class ___ Certificates which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Rule 144A Book-Entry Certificate and to effect the transfer
pursuant to Regulation S under the Securities Act of 1933, as amended
("Regulation S") of the above Certificates in exchange for an equivalent
beneficial interest in a Regulation S Book-Entry Certificate, we hereby certify
that such transfer has been effected in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of
September 1, 2007, among Merrill Lynch Mortgage Investors, Inc., as Depositor,
LaSalle Bank National Association, as Trustee, Home Loan Services, Inc., as
Servicer, and in the Certificates and (ii) in accordance with Regulation S, and
that:

          a. the offer of the Certificates was not made to a person in the
United States;

          b. at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably
believed that the transferee was outside the United States;

          c. no directed selling efforts have been made in contravention of the
requirements of Rule 903 or 904 of Regulation S, as applicable;

          d. the transaction is not part of a plan or scheme to evade the
registration requirements of the United States Securities Act of 1933, as
amended; and

          e. the transferee is not a U.S. Person (as defined by Regulation S).

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry

                                       O-1

<PAGE>

with respect to the matters covered hereby. Terms used in this certificate have
the meanings set forth in Regulation S.

Very truly yours,

Print Name of Transferor

By
Authorized Officer

                                       O-2

<PAGE>

                                    EXHIBIT P

                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER PURSUANT TO RULE 144A FROM A HOLDER OF
         A REGULATION S BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch First Franklin
Mortgage Loan Trust, Series 2007-5

RE:  Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5, Mortgage
     Loan Asset-Backed Certificates

Ladies and Gentlemen:

          In connection with our disposition of the Class __ Certificates which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Regulation S Book-Entry Certificate and to effect the transfer
pursuant to Rule 144A under the Securities Act of 1933, as amended ("Rule 144A")
of the above Certificates in exchange for an equivalent beneficial interest in a
Rule 144A Book-Entry Certificate or a Definitive Note, we hereby certify that
such Certificates are being transferred in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of
September 1, 2007, among Merrill Lynch Mortgage Investors, Inc., as Depositor,
La Salle Bank National Association, as Trustee, Home Loan Services, Inc., as
Servicer, and in the Certificates and (ii) Rule 144A under the Securities Act of
1933, as amended, to a transferee that we reasonably believe is purchasing the
Certificates for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a "qualified institutional buyer" within the meaning of Rule 144A, in
a transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry with respect to the
matters covered hereby.

Very truly yours,

Print Name of Transferor

By:
Authorized Officer

                                       P-1
<PAGE>

                                    EXHIBIT Q

                             FORM OF SWAP AGREEMENT

                                                     (THE BANK OF NEW YORK LOGO)

                                                         Dated: October 10, 2007

                              RATE SWAP TRANSACTION

                           RE: BNY REFERENCE NO. 39954

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Swap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("PARTY A"), a
trust company duly organized and existing under the laws of the State of New
York, and the Supplemental Interest Trust relating to the Merrill Lynch First
Franklin Mortgage Loan Trust, Series 2007-5 (the "PARTY B"), as represented by
LaSalle Bank National Association, not in its individual capacity, but solely as
Supplemental Interest Trust Trustee under the Pooling and Servicing Agreement,
dated and effective September 1, 2007, among Merrill Lynch Mortgage Investments,
Inc., as Depositor, Home Loan Services, Inc., as Servicer, and LaSalle Bank
National Association, as Trustee (the "POOLING AND SERVICING AGREEMENT"). This
Agreement, which evidences a complete and binding agreement between you and us
to enter into the Transaction on the terms set forth below, constitutes a
"CONFIRMATION" as referred to in the "ISDA FORM MASTER AGREEMENT" (as defined
below), as well as a "Schedule" as referred to in the ISDA Form Master
Agreement.

     1. FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA
Definitions (the "DEFINITIONS"), as published by the International Swaps and
Derivatives Association, Inc. ("ISDA"). Any reference to a "Swap Transaction" in
the Definitions is deemed to be a reference to a "Transaction" for purposes of
this Agreement, and any reference to a "Transaction" in this Agreement is deemed
to be a reference to a "Swap Transaction" for purposes of the Definitions. You
and we have agreed to enter into this Agreement in lieu of negotiating a
Schedule to the 1992 ISDA Master Agreement (Multicurrency--Cross Border) form
(the "ISDA FORM MASTER AGREEMENT"). An ISDA Form Master Agreement, as modified
by the Schedule terms in Paragraph 4 of this Confirmation (the "MASTER
AGREEMENT"), shall be deemed to have been executed by you and us on the date we
entered into the Transaction. For the avoidance of doubt, the Transaction
described herein shall be the sole Transaction governed by such ISDA Form Master
Agreement. Except as otherwise specified, references herein to Sections shall be
to Sections of the Master Agreement, and references to Paragraphs shall be to
paragraphs of this Agreement. In the event of any inconsistency between the
provisions of this Agreement and the Definitions or the Master Agreement, this
Agreement shall prevail for purposes of the Transaction. Capitalized terms not
otherwise defined herein or in the Definitions or the Master Agreement shall
have the meaning defined for such term in the Pooling and Servicing Agreement.

     2. CERTAIN TERMS. The terms of the particular Transaction to which this
Confirmation relates are as follows:

<TABLE>
<S>                             <C>
   Type of Transaction:         Rate Swap

   Notional Amount:             With respect to any Calculation Period the
                                amount set forth for such period on Schedule I
                                attached hereto.

   Trade Date:                  October 5, 2007

   Effective Date:              September 25, 2008

   Termination Date:            September 25, 2012, subject to adjustment in
                                accordance with the Following Business Day
                                Convention; provided, however, that for the
                                purpose of determining the final Fixed Rate
                                Payer Period End Date, Termination Date shall be
                                subject to No Adjustment.
</TABLE>

                                      Q-1

<PAGE>
<TABLE>
<S>                             <C>
FIXED AMOUNTS

   Fixed Rate Payer:            Party B

   Fixed Rate:                  4.700%

   Fixed Rate Day Count
   Fraction:                    30/360

   Fixed Rate Payer
   Period End Dates:            The 25th day of each month, beginning on October
                                25, 2008 and ending on the Termination Date,
                                with No Adjustment.

   Fixed Rate Payer
   Payment Dates:               Early Payment shall be applicable. The Fixed
                                Rate Payer Payment Date shall be one (1)
                                Business Day preceding each Fixed Rate Payer
                                Period End Date.

FLOATING AMOUNTS

   Floating Rate Payer:         Party A

   Floating Rate for initial
   Calculation Period:          To be determined

   Floating Rate Day Count
   Fraction:                    Actual/360

   Floating Rate Option:        USD-LIBOR-BBA

   Designated Maturity:         One month

   Spread:                      Inapplicable

   Floating Rate Payer
   Period End Dates:            The 25th day of each month, beginning on October
                                25, 2008 and ending on the Termination Date,
                                subject to adjustment in accordance with the
                                Following Business Day Convention.

   Floating Rate Payer
   Payment Dates:               Early Payment shall be applicable. The Floating
                                Rate Payer Payment Date shall be one (1)
                                Business Day preceding each Floating Rate Payer
                                Period End Date.

   Reset Dates:                 The first day of each Calculation Period

   Compounding:                 Inapplicable

   Business Days for Payments
   By both parties:             New York and Illinois

   Calculation Agent:           BNY

   Additional Payment:          Party B has directed Merrill Lynch Mortgage
                                Lending, Inc. to make a payment of USD [_] to
                                Party A on October 10, 2007.
</TABLE>

     3. ADDITIONAL PROVISIONS:

                                      Q-2

<PAGE>

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
other party has engaged in (or refrained from engaging in) substantial financial
transactions and has taken (or refrained from taking) other material actions in
reliance upon the entry by the parties into the Transaction being entered into
on the terms and conditions set forth herein.

     4. PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

RATING AGENCY AND RELATED DEFINITIONS. When more than one Rating Agency rates
the Certificates, such terms refer to each Rating Agency and its criteria
separately rather than collectively.

"RATING AGENCY" .means, so long as it rates the Certificates, each of:

     (1) "MOODY'S": Moody's Investors Service Inc.

     (2) "S&P": Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

     (3) "FITCH": Fitch, Inc., Fitch Ratings, Ltd., Derivative Fitch, Inc., or
     Derivative Fitch Ltd., or any subsidiary, or successor thereof.

The use of the name of a Rating Agency or its use prior to such terms in a
provision indicates that such provision (or the applicable portion thereof)
applies only with respect to the requirements of such Rating Agency, and
excludes reference to the other Rating Agencies.

"RATING AGENCY CONDITION", "QUALIFYING RATINGS", "LIMITED QUALIFYING RATINGS",
and "DISQUALIFYING RATINGS" have the meanings assigned in Part 5(i)(i).

DEFINITIONS INCORPORATED BY REFERENCE. Capitalized terms used in this Agreement
that are not defined herein and are defined in the Pooling and Servicing
Agreement, have the meanings assigned therein. In the event of any inconsistency
between the terms of this Agreement and the terms of the Pooling and Servicing
Agreement, this Agreement will govern.

Part 1. TERMINATION PROVISIONS.

(a)  "SPECIFIED ENTITY" in relation to Party A or Party B shall mean: none.

(b)  "SPECIFIED TRANSACTION" will have the meaning specified in Section 14.

(c)  APPLICABILITY. The following provisions apply or do not apply to the
     parties as specified below:

     (i)  Section 5(a)(i) (FAILURE TO PAY OR DELIVER):

          (A)  will apply to Party A; and

          (B)  will apply to Party B.

     (ii) Section 5(a)(ii) (BREACH OF AGREEMENT):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B.

     (iii) Section 5(a)(iii) (CREDIT SUPPORT DEFAULT):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B;

          provided, that, with respect to Moody's Limited Qualifying Ratings and
          Moody's Disqualifying Ratings, (x) this will apply only to Moody's
          Disqualifying Ratings that have continued for at least 30 Local
          Business Days, and (y) at least one Qualified Transferee has made an
          offer which remains capable of becoming legally binding upon
          acceptance to enter into a Permitted Transfer or other Replacement
          Transaction.

     (iv) Section 5(a)(iv) (MISREPRESENTATION):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B.

     (v)  Section 5(a)(v) (DEFAULT UNDER SPECIFIED TRANSACTION):

                                      Q-3

<PAGE>

          (A)  will not apply to Party A; and

          (B)  will not apply to Party B.

     (vi) Section 5(a)(vi) (CROSS DEFAULT):

          (A)  will apply to Party A; and

          (B)  will not apply to Party B.

          For the purposes of Section 5(a)(vi):

          "SPECIFIED INDEBTEDNESS" will have the meaning specified in Section
          14, except that it shall not include indebtedness in respect of
          deposits received.

          "THRESHOLD AMOUNT" means, 3% of consolidated shareholders equity of
          Party A (or any guarantor under a Qualified Guaranty) and its
          subsidiaries determined in accordance with generally accepted
          accounting principles in the jurisdiction of its organization
          consistently applied as of the last day of the fiscal year ended
          immediately prior to the occurrence or existence of an event for which
          a Threshold Amount is applicable under Section 5(a)(vi).

     (vii) Section 5(a)(vii) (BANKRUPTCY):

          (A)  will apply to Party A; and

          (B) will not apply to Party B with respect to subclauses (2), (4) (but
          only if the proceeding or petition is instituted or presented by Party
          A or its affiliates), (7), (8) (but subclause (8) will not apply to
          Party B only to the extent that subclauses (2), (4) and (7) do not
          apply to Party B) and (9) of Section 5(a)(vii), and the remaining
          provisions of Section 5(a)(vii) will apply to Party B; and in
          subclause (6) the words "trustee" and "custodian" will not include the
          Supplemental Interest Trust Trustee and the words "seeks or" will be
          deleted.

     (viii) Section 5(a)(viii) (MERGER WITHOUT ASSUMPTION):

          (A)  will apply to Party A; and

          (B)  will apply to Party B.

     (ix) Section 5(b)(i) (ILLEGALITY):

          (A)  will apply to Party A; and

          (B)  will apply to Party B.

     (x)  Section 5(b)(ii) (TAX EVENT):

          (A)  will apply to Party A; and

          (B)  will apply to Party B;

          provided that the words "(x) any action taken by a taxing authority,
          or brought in a court of competent jurisdiction, on or after the date
          on which a Transaction is entered into (regardless of whether such
          action is taken or brought with respect to a party to this Agreement)
          or (y)" shall be deleted.

     (xi) Section 5(b)(iii) (TAX EVENT UPON MERGER):

          (A)  will apply to Party A; and

          (B)  will apply to Party B,

          provided, that Party A shall not be entitled to designate an Early
          Termination Date by reason of a Tax Event upon Merger in respect of
          which it is the Affected Party.

     (xii) Section 5(b)(iv) (CREDIT EVENT UPON MERGER):

          (A)  will not apply to Party A; and

          (B)  will not apply to Party B.

                                      Q-4

<PAGE>

     (xiii) Section 5(b)(v) (ADDITIONAL TERMINATION EVENT):

          (A)  will apply to Party A with respect to Part 1(g)(iv) and (v); and

          (B) will apply to Party B with respect to Parts 1(g)(i), (ii), and
          (iii).

(d)  The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a):

          (A)  will not apply to Party A; and

          (B)  will not apply to Party B.

(e) PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e), the Second
Method and Market Quotation will apply. For such purpose, if Party A is the
Affected Party in respect of an Additional Termination Event or a Tax Event Upon
Merger or the Defaulting Party in respect of any Event of Default (but not, in
any case, in respect of a Termination Event arising from an Illegality or Tax
Event), the following provisions shall apply:

     (i) The definitions of "Market Quotation" and "Settlement Amount" are
     amended in their entirety to read as follows:

          "MARKET QUOTATION" means, with respect to one or more Terminated
          Transactions, an offer capable when made of becoming legally binding
          upon acceptance made by a Qualified Transferee for an amount that
          would be paid to Party B (expressed as a negative number) or by Party
          B (expressed as a positive number) in consideration of an agreement
          between Party B and such Qualified Transferee to enter into a
          transaction with commercial terms substantially the same as and that
          are, in all material respects, no less beneficial for Party B than,
          those of this Agreement (save for the exclusion of provisions relating
          to Transactions that are not Terminated Transactions) (which shall be
          determined by Party B, acting in a commercially reasonable manner),
          that would have the effect of preserving the economic equivalent for
          Party B of any payment or delivery (whether the underlying obligation
          was absolute or contingent and assuming the satisfaction of each
          applicable condition precedent) by the parties under Section 2(a)(i)
          in respect of such Terminated Transactions or group of Terminated
          Transactions that would, but for the occurrence of the relevant Early
          Termination Date, have been required after that date (such
          transaction, a "REPLACEMENT TRANSACTION"). For this purpose, Unpaid
          Amounts in respect of the Terminated Transaction or group of
          Transactions are to be excluded but, without limitation, any payment
          or delivery that would, but for the relevant Early Termination Date,
          have been required (assuming satisfaction of each applicable condition
          precedent) after that Early Termination Date is to be included.

          "SETTLEMENT AMOUNT" means, with respect to any Early Termination Date:

          (1) if, on or prior to such Early Termination Date, a Market Quotation
          for the relevant Terminated Transaction or group of Terminated
          Transactions is accepted by Party B so as to become legally binding:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of such Market Quotation;

          (2) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions
          has been accepted by Party B so as to become legally binding and one
          or more Market Quotations have been communicated to Party B and remain
          capable of becoming legally binding upon acceptance by Party B:

               the Termination Currency Equivalent of the amount (whether
               positive or negative) of the lowest of such Market Quotations

                    (for the avoidance of doubt, (x) a Market Quotation
                    expressed as a negative number is lower than a Market
                    Quotation expressed as a positive number and (y) the lower
                    of two Market Quotations expressed as negative numbers is
                    the one with the largest absolute value); or

          (3) if, on such Early Termination Date, no Market Quotation for the
          relevant Terminated Transaction or group of Terminated Transactions is
          accepted by Party B so as to become

                                      Q-5

<PAGE>

          legally binding and no Market Quotations have been communicated to
          Party B and remain capable of becoming legally binding upon acceptance
          by Party B:

               Party B's Loss (whether positive or negative and without
               reference to any Unpaid amounts) for the relevant Terminated
               Transaction or group of Terminated Transactions."

     (ii) At any time on or before the Early Termination Date at which two or
     more Market Quotations remain capable of becoming legally binding upon
     acceptance, Party B shall be entitled to accept only the lowest of such
     Market Quotations. (For the avoidance of doubt, (i) a Market Quotation
     expressed as a negative number is lower than a Market Quotation expressed
     as a positive number and (ii) the lower of two Market Quotations expressed
     as negative numbers is the one with the largest absolute value.)

     (iii) if Party B requests Party A in writing to obtain Market Quotations,
     Party A shall use its reasonable efforts to do so before the Early
     Termination Date.

     (iv) If the Settlement Amount is a negative number, Section 6(e)(i)(3)
     shall be deleted in its entirety and replaced with the following:

          "SECOND METHOD AND MARKET QUOTATION. If Second Method and Market
          Quotation apply, (1) Party B shall pay to Party A an amount equal to
          the absolute value of the Settlement Amount in respect of the
          Terminated Transactions, (2) Party B shall pay to Party A the
          Termination Currency Equivalent of the Unpaid Amounts owing to Party A
          and (3) Party A shall pay to Party B the Termination Currency
          Equivalent of the Unpaid Amounts owing to Party B, Provided that, (i)
          the amounts payable under (2) and (3) shall be subject to netting in
          accordance with Section 2(c) and (ii) notwithstanding any other
          provision of this Agreement, any amount payable by Party A under (3)
          shall not be netted-off against any amount payable by Party B under
          (1)."

(f) "TERMINATION CURRENCY" means United States Dollars.

(g) "ADDITIONAL TERMINATION EVENT" will apply. The following shall constitute
Additional Termination Events, and the party specified shall be the Affected
Party with respect thereto:--

     (i) TERMINATION OF TRUST FUND. The Trust, Supplemental Interest Trust or
     Trust Fund shall be terminated pursuant to any provision of the Pooling and
     Servicing Agreement (including, without limitation, by exercise of the
     option to purchase and giving of notice under Sections 9.01 and 10.01 of
     the Pooling and Servicing Agreement). The Early Termination Date with
     respect to such Additional Termination Event shall be the Distribution Date
     upon which the Trust and the Supplemental Interest Trust or Trust Fund is
     terminated and final payment is made in respect of the Certificates. Party
     B shall be the sole Affected Party. However, each of Party A and Party B
     may designate an Early Termination Date in respect of this Additional
     Termination Event.

     (ii) INABILITY TO PAY CERTIFICATES. The Trust is unable to pay or fails or
     admits in writing its inability to pay (i) on any Distribution Date, any
     Current Interest with respect to the Class A Certificates or (ii) by the
     Distribution Date immediately following the maturity date for the Mortgage
     Loan with the latest maturity date, the ultimate payment of principal with
     respect to the Class A Certificates, in either case to the extent required
     pursuant to the terms of the Pooling and Servicing Agreement to be paid to
     the Class A Certificates. Party B shall be the sole Affected Party.

     (iii) AMENDMENT OF POOLING AND SERVICING AGREEMENT. The amendment of the
     Pooling and Servicing Agreement in a manner which could have a material
     adverse effect on Party A without first obtaining the prior written consent
     of Party A (such consent not to be unreasonably withheld), where such
     consent is required under the Pooling and Servicing Agreement. Party B
     shall be the sole Affected Party.

     (iv) RATINGS DOWNGRADE. Party A or any guarantor under a Qualified Guaranty
     (1) has Limited Qualifying Ratings or Disqualifying Ratings, and Party A
     fails to take the actions provided in Part 5(i)(ii)(Posting of Collateral),
     within the time periods set out therein, or (2) has Disqualifying Ratings
     and Party A fails to take the actions provided in Part
     5(i)(iii)(Replacement or Guaranty), within the time periods set out
     therein;

                                      Q-6

<PAGE>

     provided, that, with respect to Moody's Disqualifying Ratings, (1) such
     failure to comply with Part 5(i)(ii) will be treated as an Event of Default
     subject to the provisions of Part 1(c)(iii), and not as an Additional
     Termination Event, and (2) an Additional Termination Event with respect to
     Moody's will not be constituted with respect to Part 5(i)(iii) unless and
     until at least one Qualified Transferee has made an offer which remains
     capable of becoming legally binding upon acceptance to enter into a
     Permitted Transfer or other Replacement Transaction.

     Party A shall be the sole Affected Party.

     (v) REGULATION AB. Party A shall fail to comply with the provisions of
     Part 5 (j) within the time provided for therein. Party A shall be the sole
     Affected Party.

Party B shall not effectively designate an Early Termination Date unless and
until it has given prior written notice thereof to each Rating Agency.

Part 2. TAX REPRESENTATIONS AND CERTAIN TAX-RELATED PROVISIONS.

     (a) PAYER REPRESENTATIONS. For the purpose of Section 3(e), Party A and
Party B make the following representations:

     It is not required by any applicable law, as modified by the practice of
any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment
(other than interest under Section 2(e), 6(d)(ii) or 6(e)) to be made by it to
the other party under this Agreement. In making this representation, it may rely
on:

     (i) the accuracy of any representations made by the other party pursuant to
     Section 3(f);

     (ii) the satisfaction of the agreement contained in Section 4 (a)(i) or
     4(a)(iii) and the accuracy and effectiveness of any document provided by
     the other party pursuant to Section 4 (a)(i) or 4(a)(iii); and

     (iii) the satisfaction of the agreement of the other party contained in
     Section 4(d),

provided, that, it shall not be a breach of this representation where reliance
is placed on clause (ii) and the other party does not deliver a form or document
under Section 4(a)(iii) by reason of material prejudice of its legal or
commercial position.

     (b) PAYEE REPRESENTATIONS. For the purpose of Section 3(f), Party A and
Party B make the following representations.

     (i)  The following representation will apply to Party A:

          (x) It is a "U.S. person" (as that term is used in Section
          1.1441-4(a)(3)(ii) of the United States Treasury Regulations ("TREAS.
          REG.")) for United States federal income tax purposes, (y) it is a
          trust company duly organized and existing under the laws of the State
          of New York, and (z) its U.S. taxpayer identification number is
          135160382.

     (ii) The following representation will apply to Party B:

          None.

(c) ADDITIONAL AMOUNTS NOT PAYABLE BY PARTY B. Party B shall not be required to
pay any additional amounts pursuant to Section 2(d)(i)(4).

(d) INDEMNIFIABLE TAX. The definition of "Indemnifiable Tax" in Section 14 is
amended in its entirety to read as follows:

     "INDEMNIFIABLE TAX" means in relation to payments by Party A any Tax and in
     relation to payments by Party B no Tax.

Part 3. AGREEMENT TO DELIVER DOCUMENTS. For the purpose of Section 4(a):

(a)  Tax forms, documents or certificates to be delivered are:

                                      Q-7

<PAGE>

<TABLE>
<CAPTION>
PARTY REQUIRED TO DELIVER
         DOCUMENT                   FORM/DOCUMENT/ CERTIFICATE                DATE BY WHICH TO BE DELIVERED
-------------------------   -------------------------------------------
<S>                         <C>                                           <C>
Party A and Party B         A correct, complete and executed Internal     (i) Prior to the first scheduled
                            Revenue Service Form W-9, with respect to     Distribution Date; (ii) in the case of
                            Party A, and W-9, W-8BEN, W-8ECI, or          a U.S. Internal Revenue Service Form
                            W-8IMY, with appropriate attachments, as      W-8ECI, W-8IMY, and W-8BEN that does
                            applicable, with respect to Party B, or any   not include a U.S. taxpayer
                            other or successor form, in each case that    identification number in line 6,
                            establishes an exemption from deduction or    before December 31 of each third
                            withholding obligations, and any other        succeeding calendar year, (iii)
                            document reasonably requested to allow the    promptly upon reasonable demand by the
                            other party to make payments under this       other party; and (iv) promptly upon
                            Agreement without any deduction or            learning that any form previously
                            withholding for or on the account of any      provided by to the other party has
                            tax.                                          become obsolete or incorrect.
</TABLE>

(b)  Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                           DATE BY WHICH TO BE            COVERED BY SECTION
DELIVER DOCUMENT         FORM/DOCUMENT/CERTIFICATE               DELIVERED                3(D) REPRESENTATION
-----------------   ------------------------------------   ----------------------------  --------------------
<S>                 <C>                                    <C>                           <C>
Party A             A certificate of an authorized         Upon the execution and        Yes
                    officer of the party, as to the        delivery of this Agreement
                    incumbency and authority of the
                    respective officers of the party
                    signing this Agreement, any relevant
                    Credit Support Document, or any
                    Confirmation, as the case may be.

Party B             (i) a copy of the executed Pooling     With respect to (i) upon      Yes
                    and Servicing Agreement, (ii) an       the execution and delivery
                    incumbency certificate verifying the   of the Pooling and
                    true signatures and authority of the   Servicing Agreement, and
                    person or persons signing this         with respect to (ii) and
                    Agreement on behalf of Party B , and   (iii) upon the execution
                    (iii) a certified copy of the          and delivery of this
                    authorizing resolution (or             Agreement
                    equivalent authorizing
                    documentation) of Trustee which sets
                    forth the authority of each
                    signatory to the Confirmation
                    signing on its behalf and the
                    authority of such party to enter
                    into Transactions contemplated and
                    performance of its obligations
                    hereunder.

Party A and         A legal opinion as to enforceability   Upon the execution and        No
Party B             of this Agreement and any              delivery of this Agreement
                    Confirmation evidencing a              and such Confirmation
                    Transaction hereunder.
</TABLE>

Part 4. MISCELLANEOUS.

(a)  ADDRESSES FOR NOTICES. For the purpose of Section 12(a):

     ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY A:

                                         Q-8

<PAGE>

        The Bank of New York
        Swaps and Derivative Products Group
        Global Market Division
        32 Old Slip 15th Floor
        New York, New York 10286
        Attention: Steve Lawler

     with a copy to:

        The Bank of New York
        Swaps and Derivative Products Group
        32 Old Slip 16th Floor
        New York, New York 10286
        Attention: Andrew Schwartz
        Tele: 212-804-5103
        Fax: 212-804-5818/5837
        (For all purposes)

     A copy of any notice or other communication with respect to Sections 5 or 6
     should also be sent to the addresses set out below:

        The Bank of New York
        Legal Department
        One Wall Street - 10th Floor
        New York, New York 10286
        Attention: General Counsel

     ADDRESS FOR NOTICES OR COMMUNICATIONS TO PARTY B:

        Global Securities and Trust Services
        135 S. LaSalle Street, Suite 1511
        Chicago, Illinois 60603
        Attn: Ken Lo
        Tel: 312-992-0668
        Fax: 312-904-1368

     With a copy to:

        Merrill Lynch Mortgage Investors, Inc.
        250 Vesey St.
        4 World Financial Center, 10th floor
        New York, NY 10080
        Attention: Alan Chan
        Telephone: 212-449-1441
        Facsimile: 212-738-1110
        (For all purposes.)

(b)  PROCESS AGENT. For the purpose of Section 13(c):

     Party A appoints as its Process Agent:-- not applicable.

     Party B appoints as its Process Agent:-- not applicable.

(c)  OFFICES. The provisions of Section 10(a) will apply to this Agreement.

(d)  MULTIBRANCH PARTY. For the purpose of Section 10(c):

     Party A is a Multibranch Party and will enter into each Transaction only
     through the following Office:- New York (for all Transactions).

     Party B is not a Multibranch Party.

(e)  CALCULATION AGENT. The Calculation Agent is Party A.

(f)  "CREDIT SUPPORT DOCUMENT" Credit Support Document means in relation to:--

                                         Q-9

<PAGE>

     Party A: The Credit Support Annex hereto and any Qualified Guaranty.

     Party B: Not applicable.

(g)  "CREDIT SUPPORT PROVIDER" means in relation to:

     Party A: The guarantor under any Qualified Guaranty.

     Party B: Not Applicable.

(h) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York without reference to choice of
law doctrine other than New York General Obligations Law Sections 5-1401 and
5-1402.

(i) NETTING OF PAYMENTS; MODIFICATION OF SECTION 2(A)(III)(1). Subparagraph (ii)
of Section 2(c) will apply. Section 2(a)(iii)(1) is amended by deleting "or
Potential Event of Default".

(j) "AFFILIATE" will have the meaning specified in Section 14, provided, that,
Party B shall not be deemed to have any Affiliates for purposes of this
Agreement, including for purposes of Section 6(b)(ii) hereof.

(k) ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding after
Section 3(f) the following subsections:

     "(g) RELATIONSHIP BETWEEN PARTIES.

          (1)NONRELIANCE. It is not relying on any statement or representation
          of the other party regarding the Transaction (whether written or
          oral), other than the representations expressly made in this Agreement
          or the Confirmation in respect of that Transaction.

          (2)EVALUATION AND UNDERSTANDING.

               (i) It is acting for its own account and has the capacity to
               evaluate (internally or through independent professional advice)
               the Transaction and has made its own decision to enter into the
               Transaction; it is not relying on any communication (written or
               oral) of the other party as investment advice or as a
               recommendation to enter into such transaction; it being
               understood that information and explanations related to the terms
               and conditions of such transaction shall not be considered
               investment advice or a recommendation to enter into such
               transaction. No communication (written or oral) received from the
               other party shall be deemed to be an assurance or guarantee as to
               the expected results of the transaction; and

               (ii) It understands the terms, conditions and risks of the
               Transaction and is willing and able to accept those terms and
               conditions and to assume (and does, in fact assume) those risks,
               financially and otherwise.

          (3) PRINCIPAL. The other party is not acting as a fiduciary or an
          advisor for it in respect of this Transaction.

     (h) EXCLUSION FROM COMMODITY EXCHANGE ACT. (1) It is an "eligible contract
     participant" within the meaning of Section 1a(12) of the Commodity Exchange
     Act, as amended; (2) this Agreement and each Transaction is subject to
     individual negotiation by such party; and (3) neither this Agreement nor
     any Transaction will be executed or traded on a "trading facility" within
     the meaning of Section 1a(33) of the Commodity Exchange Act, as amended.

     (i) SWAP AGREEMENT. Each Transaction is a "swap agreement" as defined in 12
     U.S.C. Section 1821(e)(8)(D)(vi) and a "covered swap agreement" as defined
     in the Commodity Exchange Act (7 U.S.C. Section 27(d)(1))."

(l) RECORDING OF CONVERSATIONS. Each party (i) consents to the recording of
telephone conversations between the trading, marketing and other relevant
personnel of the parties in connection with this Agreement or any potential
Transaction, (ii) agrees to obtain any necessary consent of, and give any
necessary notice of such recording to, its relevant personnel and (iii) agrees,
to the extent permitted by applicable law, that recordings may be submitted in
evidence in any Proceedings.

Part 5. OTHER PROVISIONS.

                                         Q-10

<PAGE>

(a) WAIVER OF JURY TRIAL. Each party waives any right it may have to a trial by
jury in respect of any Proceedings relating to this Agreement or any Credit
Support Document.

(b) SEVERABILITY. If any term, provision, covenant, or condition of this
Agreement, or the application thereof to any party or circumstance, shall be
held to be invalid or unenforceable (in whole or in part) for any reason, the
remaining terms, provisions, covenants, and conditions hereof shall continue in
full force and effect as if this Agreement had been executed with the invalid or
unenforceable portion eliminated, so long as this Agreement as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Agreement and the deletion of such
portion of this Agreement will not substantially impair the respective benefits
or expectations of the parties. The parties shall endeavor to engage in good
faith negotiations to replace any invalid or unenforceable term, provision,
covenant or condition with a valid or enforceable term, provision, covenant or
condition, the economic effect of which comes as close as possible to that of
the invalid or unenforceable term, provision, covenant or condition.

(c) SET-OFF. All payments under this Agreement shall be made without set-off or
counterclaim, except as provided in Section 2(c), Section 6 or the provisions
hereof relating to Market Quotation and Loss, or Paragraph 8 of the Credit
Support Annex. Section 6(e) is amended by deleting the following sentence: "The
amount, if any, payable in respect of an Early Termination Date and determined
pursuant to this Section will be subject to any Set-off." For the avoidance of
doubt, if more than one Transaction is entered into under this Agreement,
nothing herein is intended to prevent the determination of a Settlement Amount
with respect to all such Transactions pursuant to Section 6 (as modified
hereby).

(d) FAILURE TO PAY OR DELIVER. Section 5(a)(i) is hereby amended by replacing
the word "third" by the word "second" in the third line thereof.

(e) NON-RECOURSE. Notwithstanding any provision herein or in this Agreement to
the contrary, the obligations of the Supplemental Interest Trust hereunder are
limited recourse obligations of the Supplemental Interest Trust, payable solely
from the amounts on deposit in the Swap Account. In the event that the Swap
Account and proceeds thereof should be insufficient to satisfy all claims
outstanding and following the realization of the Swap Account and the
distribution of the proceeds thereof in accordance with the Pooling and
Servicing Agreement, any claims against or obligations of the Supplemental
Interest Trust under this Agreement or any confirmation hereunder still
outstanding shall be extinguished and thereafter not revive. This provision
shall survive the termination of this Agreement.

(f) LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. Party A shall not
institute against or cause any other person to institute against, or join any
other person in instituting against Party B, the Depositor or the Trust, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
under any of the laws of the United States or any other jurisdiction, for a
period of one year and one day (or, if longer, the applicable preference period)
following indefeasible payment in full of the Certificates. This provision shall
survive the termination of this Agreement.

(g) TRANSFER, ASSIGNMENT. Notwithstanding the provisions of Sections 6(b)(ii)
and 7, no novation, assignment or transfer of any Transaction shall be permitted
by either party, unless the Rating Agency Condition with respect to each Rating
Agency is satisfied with respect thereto, except that Party A may, if each
Rating Agency and the non-assigning party has received prior written notice
thereof (1) transfer all or any part of its interest in any amount payable to it
if Party B is a Defaulting Party under Section 6(e) or (2) effect a Permitted
Transfer of this Agreement to any other entity at any time (A) Party A or any
guarantor under a Qualified Guaranty has Limited Qualifying Ratings or
Disqualifying Ratings, (B) pursuant to Section 6(b)(ii), (C) pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity, (D) to another of its
offices or branches; or (E) to an Affiliate. The consent of Party B shall not be
required for a novation, assignment or transfer by Party A in accordance with
clauses (1) and (2) of the preceding sentence and Party B shall take all steps
reasonably requested by Party A (at the expense of Party A) to effect a
Permitted Transfer. A "PERMITTED TRANSFER" means a novation or assignment to or
entry into another form of Replacement Transaction pursuant to which a Qualified
Transferee acquires and assumes or enters into a Replacement Transaction by a
written instrument in respect of all the Transactions and the rights,
liabilities, duties and obligations of Party A hereunder and with respect to
which (1) there is no adverse effect on netting or set-off rights, (2) neither
Party A nor the transferee will be required to withhold or deduct on account of
any Tax from any payments under this Agreement in excess of what would have been
required to be withheld or deducted in the absence of such transfer, (3) an
Event of Default or Termination Event would not occur

                                         Q-11

<PAGE>

as a result, and (4) (x) with respect to any Rating Agency, the terms of the
Transactions are not modified other than parties, effective date of said
transfer, and tax payee representations of Party A (and in such case, it shall
not be a condition of such Replacement Transaction that it preserve for Party B
the economic equivalent of all payment and delivery obligations hereunder and be
in all material respects no less beneficial for Party B than those of the
Transactions), or (y) with respect to Moody's, the terms of the Transactions are
modified to a greater extent than provided in (x) but the definition of
Replacement Transaction is otherwise complied with.

(h) AMENDMENT. Notwithstanding the provisions of Section 9(b), each amendment,
modification or waiver in respect of this Agreement shall be subject to the
Rating Agency Condition with respect to each Rating Agency.

(i) RATINGS DOWNGRADE.

     (i)DEFINITIONS. For purposes of each Transaction:

          (A) "RATING AGENCY CONDITION" means, with respect to any action taken
          or to be taken hereunder, a condition that is satisfied when the
          relevant Rating Agency has confirmed in writing to the Supplemental
          Interest Trust Trustee that such action will not result in withdrawal,
          reduction or other adverse action with respect to any then-current
          rating by the Rating Agency of the Certificates.

          (B) RATINGS: The ratings assigned or withdrawn by a Rating Agency with
          respect to the unsecured and unguaranteed debt of Party A or any
          guarantor under a Qualified Guaranty, in the cases when such debt has
          both short-term and long-term debt ratings and when such debt has only
          long-term ratings, will be "QUALIFYING RATINGS", "LIMITED QUALIFYING
          RATINGS" and "DISQUALIFYING RATINGS", as identified below:

                                         Q-12

<PAGE>

<TABLE>
<CAPTION>
                                                                             RATINGS OF PARTY A OR
                                                                     GUARANTOR UNDER A QUALIFIED GUARANTY:
                                                                 ---------------------------------------------
                                                                   HAS LONG-TERM AND      HAS ONLY LONG-TERM
                         RATING AGENCY:                           SHORT-TERM RATINGS          RATINGS
                         --------------                          --------------------   ----------------------
<S>                                                              <C>                    <C>
                                                                             "QUALIFYING RATINGS":
MOODY'S:                                                         P-1 and A2 or above    A1 or above
S&P:                                                             A-1 or above           A+ or above
FITCH:                                                           F1 and A or above      A or above

                                                                         "LIMITED QUALIFYING RATINGS":
MOODY'S:                                                         P-2 or A3              A2 or A3
S&P:  If Party A or guarantor under a Qualified Guaranty is a    A-2                    A, A- or BBB+
Financial Institution:
FITCH:                                                           F2 or A-               A-

                                                                           "DISQUALIFYING RATINGS":*
MOODY'S:                                                         P-3 or Baa1 or below   Baa1 or below
S&P:
If Party A or guarantor under a Qualified Guaranty is a          A-3 or below           BBB or below
Financial Institution:(Financial Institution)
If neither Party A nor guarantor under a Qualified Guaranty is   A-2 or below           A or below
a Financial Institution:(Other)
FITCH:                                                           F3 or BBB or below     BBB or below
</TABLE>

     * The withdrawal by Moody's of the short-term rating, or, if there is no
     short-term rating, the long-term rating, and the withdrawal by any other
     Rating Agency of all ratings will be treated as a Disqualifying Rating
     unless the Rating Agency Condition is satisfied with respect thereto.

     (C) "FINANCIAL INSTITUTION" means a bank, broker/dealer, insurance company,
     structured investment vehicle or derivative product company.

     (D) "QUALIFIED TRANSFEREE" means a transferee of a novation or assignment
     or a party (other than Party B) that enters into another form of
     Replacement Transaction that is a Reference Market-maker ("dealer" in the
     definition thereof meaning a "dealer in notional principal contracts" as
     defined in Treas. Reg. Section 1.1001-4) that has Qualifying Ratings or
     Limited Qualifying Ratings assigned by each Rating Agency, or whose present
     and future obligations owing to Party B are guaranteed pursuant to a
     Qualified Guaranty.

     (E) "QUALIFIED GUARANTY" means an unconditional and irrevocable guaranty of
     payment (and not of collection) and the performance of the other
     obligations of Party A (or a Qualified Transferee, as applicable) hereunder
     by a third party that has Qualifying Ratings or Limited Qualifying Ratings
     assigned by each Rating Agency ("QUALIFIED GUARANTOR") in a form that
     satisfies the S&P Rating Condition and that provides, inter alia, that
     payment thereunder shall be made as provided and on the conditions set
     forth in Section 2(d) as modified hereunder (substituting references to
     Party A as "X" with the guarantor as "X" and "this Agreement" with such
     guaranty, respectively) (or, in lieu of such provisions relating to tax, a
     law firm has given a legal opinion confirming that none of the guarantor's
     payments to Party B under such guaranty will be subject to withholding for
     Tax).

(ii) POSTING OF COLLATERAL. If Party A or any guarantor under a Qualified
Guaranty is assigned Limited Qualifying Ratings or Disqualifying Ratings by a
Rating Agency, then, within, with respect to:

                                         Q-13

<PAGE>

          (1) MOODY'S: thirty (30) Local Business Days
          (2) S&P: ten (10) Local Business Days
          (3) FITCH: thirty (30) calendar days

thereafter (or if such ratings exist from the time Party A becomes a party
hereto or the guarantor under a Qualified Guaranty becomes such guarantor, from
such time), and for so long as such Limited Qualifying Ratings or Disqualifying
Ratings continue, Party A shall, at its own expense, post collateral in
accordance with the Credit Support Annex.

(iii) REPLACEMENT OR GUARANTY. If Party A or any guarantor under a Qualified
Guaranty is assigned Disqualifying Ratings by a Rating Agency, then, within,
with respect to:

          (1) MOODY'S: thirty (30) Local Business Days
          (2) S&P: sixty (60) calendar days
          (3) FITCH: thirty (30) calendar days

thereafter, Party A shall, at its own expense, (x) novate, assign or transfer
the Transactions to or replace the Transactions with Replacement Transactions
with a Qualified Transferee, or (y) obtain a Qualified Guaranty.

(j)REGULATION AB.

     (a) If the Depositor under the Pooling and Servicing Agreement still has a
     reporting obligation with respect to this Transaction pursuant to
     Regulation AB under the Securities Act of 1933, as amended, and the
     Securities Exchange Act of 1934, as amended ("REGULATION AB") and BNY has
     not, within 30 days after receipt of a Swap Disclosure Request complied
     with the provisions set forth below in this Part 5(j) (provided that if the
     significance percentage reaches 10% after a Swap Disclosure Request has
     been made to BNY, BNY must comply with the provisions set forth below in
     this Part 5(j) within 10 calendar days of BNY being informed of the
     significance percentage reaching 10%), then an Additional Termination Event
     shall have occurred with respect to BNY and BNY shall be the sole Affected
     Party with respect to such Additional Termination Event.

     (b) BNY acknowledges that for so long as there are reporting obligations
     with respect to this Transaction under Regulation AB, the Depositor is
     required under Regulation AB to disclose certain information set forth in
     Regulation AB regarding BNY or its group of affiliated entities, if
     applicable, depending on the aggregate "significance percentage" of this
     Agreement and any other derivative contracts between BNY or its group of
     affiliated entities, if applicable, and the Counterparty, as calculated
     from time to time in accordance with Item 1115 of Regulation AB.

     (c) If the Depositor determines, reasonably and in good faith, that the
     significance percentage of this Agreement has increased to eight (8)
     percent, then the Depositor may request on a Business Day after the date of
     such determination from BNY the same information set forth in Item 1115(b)
     of Regulation AB that would have been required if the significance
     percentage had in fact increased to ten (10) percent (such request, a "SWAP
     DISCLOSURE REQUEST" and such requested information, subject to the last
     sentence of this paragraph, is the "SWAP FINANCIAL DISCLOSURE"). The
     Counterparty or the Depositor shall provide BNY with the calculations and
     any other information reasonably requested by BNY with respect to the
     Depositor's determination that led to the Swap Disclosure Request. The
     parties hereto further agree that the Swap Financial Disclosure provided to
     meet the Swap Disclosure Request may be, solely at BNY's option, either the
     information set forth in Item 1115(b)(1) or Item 1115(b)(2) of Regulation
     AB.

     (d) Upon the occurrence of a Swap Disclosure Request, BNY, at its own
     expense, shall (x) provide the Depositor with the Swap Financial Disclosure
     in an Edgar-compatible format, or (y) subject to Rating Agency Condition,
     secure another entity to replace BNY as party to this Agreement on terms
     substantially similar to this Agreement which entity is able to provide the
     Swap Financial Disclosure. If permitted by Regulation AB, any required Swap
     Financial Disclosure may be provided by incorporation by reference from
     reports filed pursuant to the Securities Exchange Act.

                                         Q-14

<PAGE>

     (e) BNY's obligation to comply with this Paragraph 4(9) shall be suspended
     as of January 1, 2008 unless, at any time, BNY receives notification from
     the Depositor or the Counterparty that the Trust Fund's obligation to file
     periodic reports under the Exchange Act shall continue; provided, however,
     that such obligations shall not be suspended in respect of any Exchange Act
     Report or amendment to an Exchange Act Report in such fiscal year which
     relates to any fiscal year in which the Trust Fund was subject to the
     reporting requirements of the Exchange Act. This obligation shall continue
     to be suspended unless the Depositor or the Counterparty notifies BNY that
     the Trust Fund's obligations to file reports under the Exchange Act has
     resumed.

(k) SUPPLEMENTAL INTEREST TRUST TRUSTEE 'S CAPACITY. It is expressly understood
and agreed by the parties hereto that, insofar as this Agreement and any
confirmation evidencing a Transaction hereunder is executed by LaSalle Bank
National Association, (i) this Agreement and such confirmation are executed and
delivered by LaSalle Bank National Association, not in its individual capacity
but solely as Supplemental Interest Trust Trustee of the Supplemental Interest
Trust pursuant to the Pooling and Servicing Agreement in the exercise of the
powers and authority conferred upon and vested in it thereunder, and pursuant to
instruction set forth therein, (ii) each of the representations, undertakings
and agreements herein or therein made on behalf of the Supplemental Interest
Trust is made and intended not as a personal representation, undertaking or
agreement of LaSalle Bank National Association but is made and intended for the
purpose of binding only the Supplemental Interest Trust, and (iii) under no
circumstances will LaSalle Bank National Association, in its individual
capacity, be personally liable for the payment of any indebtedness or expenses
or be personally liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken under this Agreement or
any such confirmation

(l) SUPPLEMENTAL INTEREST TRUST TRUSTEE'S REPRESENTATION. LaSalle Bank National
Association, as Supplemental Interest Trust Trustee of the Supplemental Interest
Trust, represents and warrants that:

     It has been directed under the Pooling and Servicing Agreement to enter
     into this Agreement and each confirmation evidencing a Transaction
     hereunder as Supplemental Interest Trust Trustee on behalf of the
     Supplemental Interest Trust.

(m)  [RESERVED.]

(n)  [RESERVED.]

5.   ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

     PAYMENTS TO BNY:

        The Bank of New York
        Derivative Products Support Department
        32 Old Slip, 16th Floor
        New York, New York 10286
        Attention: Renee Etheart
        ABA #021000018
        Account #890-0068-175
        Reference: Interest Rate Swap

     PAYMENTS TO COUNTERPARTY:

        LaSalle Bank
        ABA# 071000505
        LaSalle CHGO/CTR/BNF:/LASALLE TRUST
        A/C# 725059.3

     6. COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

                                         Q-15

<PAGE>

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                         Q-16

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,
THE BANK OF NEW YORK

A. BY:
       ------------------------------
Name:
Title:

                                         Q-17

<PAGE>

The Counterparty, acting through its duly authorized signatory, hereby agrees
to, accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS
SUPPLEMENTAL INTEREST TRUST TRUSTEE FOR THE SUPPLEMENTAL INTEREST TRUST RELATING
TO THE MERRILL LYNCH FIRST FRANKLIN MORTGAGE LOAN TRUST, SERIES 2007-5

B. BY:
       ------------------------------
Name:
Title:

                                         Q-18

<PAGE>

                                      SCHEDULE I

    (all such dates subject to No Adjustment with respect to Fixed Rate Payer
    Period End Dates and adjustment in accordance with the Following Business
      Day Convention with respect to Floating Rate Payer Period End Dates)

<TABLE>
<CAPTION>
From and including   To but excluding   Notional Amount (in USD)
------------------   ----------------   ------------------------
<S>                  <C>                <C>
     09/25/08            10/25/08              543,587,493
     10/25/08            11/25/08              523,620,237
     11/25/08            12/25/08              504,319,330
     12/25/08            01/25/09              485,815,015
     01/25/09            02/25/09              468,290,690
     02/25/09            03/25/09              451,383,524
     03/25/09            04/25/09              435,017,731
     04/25/09            05/25/09              419,157,455
     05/25/09            06/25/09              403,735,174
     06/25/09            07/25/09              387,874,320
     07/25/09            08/25/09              371,391,389
     08/25/09            09/25/09              355,638,261
     09/25/09            10/25/09              341,808,670
     10/25/09            11/25/09              329,104,485
     11/25/09            12/25/09              317,436,044
     12/25/09            01/25/10              306,766,824
     01/25/10            02/25/10              296,956,828
     02/25/10            03/25/10              287,832,127
     03/25/10            04/25/10              279,226,734
     04/25/10            05/25/10              271,197,029
     05/25/10            06/25/10              263,563,932
     06/25/10            07/25/10              247,364,487
     07/25/10            08/25/10              211,213,759
     08/25/10            09/25/10              175,563,791
     09/25/10            10/25/10              150,875,949
     10/25/10            11/25/10              133,437,332
     11/25/10            12/25/10              120,254,346
     12/25/10            01/25/11              108,946,421
     01/25/11            02/25/11               98,881,404
     02/25/11            03/25/11               89,855,529
     03/25/11            04/25/11               81,842,371
     04/25/11            05/25/11               74,805,966
     05/25/11            06/25/11               68,529,374
     06/25/11            07/25/11               62,371,328
     07/25/11            08/25/11               56,261,425
     08/25/11            09/25/11               50,705,493
     09/25/11            10/25/11               45,439,834
     10/25/11            11/25/11               40,957,155
     11/25/11            12/25/11               36,766,490
     12/25/11            01/25/12               32,909,755
     01/25/12            02/25/12               29,245,691
</TABLE>

                                      Q-19
<PAGE>

<TABLE>
<S>                  <C>                <C>
     02/25/12            03/25/12               25,991,237
     03/25/12            04/25/12               22,885,433
     04/25/12            05/25/12               20,020,499
     05/25/12            06/25/12               17,373,400
     06/25/12            07/25/12               14,921,468
     07/25/12            08/25/12               12,511,045
     08/25/12            09/25/12               10,018,245
</TABLE>

                                      Q-20

<PAGE>

                       Exhibit A to Confirmation No. 39954

                   [Credit Support Annex to follow this page]

                                      Q-21
<PAGE>

(BILATERAL FORM)                  (ISDA AGREEMENTS SUBJECT TO NEW YORK LAW ONLY)

                                 (ISDA(R) LOGO)
              International Swaps and Derivatives Association, Inc.

                              CREDIT SUPPORT ANNEX
                             to the Schedule to the

                              ISDA MASTER AGREEMENT

                          Dated as of October 10, 2007

                                     between

          THE BANK OF NEW YORK            and   LASALLE BANK NATIONAL
                                                ASSOCIATION, NOT IN ITS
                                                INDIVIDUAL CAPACITY, BUT SOLELY
                                                AS SUPPLEMENTAL INTEREST TRUST
                                                TRUSTEE WITH RESPECT TO THE
                                                SUPPLEMENTAL INTEREST TRUST
                                                RELATING TO THE MERRILL LYNCH
                                                FIRST FRANKLIN MORTGAGE LOAN
                                                TRUST, SERIES 2007-5

established as a banking organization           The Supplemental Interest Trust
under the laws of the State of New York         is a common law trust
                                                established under the laws of
                                                the State of New York .

              ("PARTY A")                                  ("PARTY B")

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

     This Annex supplements, forms part of, and is subject to, the Master
Agreement specified in the Confirmation(s) (BNY Ref. No. 39954), dated even date
herewith (the "AGREEMENT"), is part of the Schedule deemed incorporated therein
and is a Credit Support Document under the Master Agreement with respect to
Party A. Accordingly, the parties agree as follows:--

PARAGRAPHS 1 - 12. INCORPORATION. Paragraphs 1 through 12 inclusive of the ISDA
Credit Support Annex (Bilateral Form) (ISDA Agreements Subject to New York Law
Only) published in 1994 by the International Swaps and Derivatives Association,
Inc. are incorporated herein by reference and made a part hereof.

PARAGRAPH 13.

AMENDED AND ADDITIONAL DEFINITIONS. As used in this Annex:--

     (i) SECURED PARTY, PLEDGOR. Notwithstanding anything contained in this
     Annex to the contrary, (a) the term "SECURED PARTY" as used in this Annex
     means only Party B, (b) the term "PLEDGOR" as used in this Annex means only
     Party A, and (c) only Party A makes

                                      Q-22

<PAGE>

     the pledge and grant in Paragraph 2, the acknowledgment in the final
     sentence of Paragraph 8(a) and the representations in Paragraph 9.

     (ii) RATING AGENCY AND RELATED DEFINITIONS. When more than one Rating
     Agency rates the Certificates, such terms refer to each Rating Agency and
     its criteria separately rather than collectively.

     "RATING AGENCY" means, so long as it rates the Certificates, each of:

          (1) "MOODY'S": Moody's Investors Service Inc.

          (2) "S&P": Standard & Poor's Ratings Services, a division of The
          McGraw-Hill Companies, Inc.

          (3) "FITCH": Fitch, Inc., Fitch Ratings, Ltd., Derivative Fitch, Inc.,
          or Derivative Fitch Ltd., or any subsidiary, or successor thereof.

     "RATING AGENCY CONDITION", "QUALIFYING RATINGS", "LIMITED QUALIFYING
     RATINGS", and "DISQUALIFYING RATINGS" have the same meanings as assigned in
     Part 5(i)(i), notwithstanding restatement herein.

     The use of the name of a Rating Agency or its use prior to such terms in a
     provision indicates that such provision (or the applicable portion thereof)
     applies only with respect to the requirements of such Rating Agency, and
     excludes reference to the other Rating Agencies.

     (iii) RATINGS: The ratings assigned or withdrawn by a Rating Agency with
     respect to the unsecured and unguaranteed debt of Party A or any guarantor
     under a Qualified Guaranty, in the cases when such debt has both short-term
     and long-term debt ratings and when such debt has only long-term ratings,
     will be "LIMITED QUALIFYING RATINGS" and "DISQUALIFYING RATINGS", as
     identified below:

<TABLE>
<CAPTION>
                                              RATINGS OF PARTY A OR GUARANTOR
                                                UNDER A QUALIFIED GUARANTY:
                                           -------------------------------------
                                             HAS LONG-TERM AND    HAS ONLY LONG-
             RATING AGENCY:               SHORT-TERM RATINGS     TERM RATINGS
             --------------                --------------------   --------------
                                               "LIMITED QUALIFYING RATINGS":
<S>                                        <C>                    <C>
MOODY'S:                                   P-2 or A3              A2 or A3
S&P: If Party A or guarantor under a
Qualified Guaranty is a Financial
Institution:                               A-2                    A, A- or BBB+
FITCH:                                     F2 or A-               A-
                                                 "DISQUALIFYING RATINGS"*:
MOODY'S:                                   P-3 or Baa1 or below   Baa1 or below
S&P:
If Party A or guarantor under a
Qualified Guaranty is a Financial
Institution:                               A-3 or below           BBB or below
If neither Party A nor guarantor under a
Qualified Guaranty is a Financial
Institution:                               A-2 or below           A or below
FITCH:                                     F3 or BBB or below     BBB or below
</TABLE>

*    The withdrawal by by Moody's of the short-term rating, or, if there is no
     short-term rating, the long-term rating, and the withdrawal by any other
     Rating Agency of all ratings, will be treated as a Disqualifying Rating
     unless the Rating Agency Condition is satisfied with respect thereto.

     (iv) "FINANCIAL INSTITUTION" means a bank, broker/dealer, insurance
     company, structured investment vehicle or derivative product company.

                                      Q-23

<PAGE>

     (v) "LOCAL BUSINESS DAY" means: (i) any day on which commercial banks are
     open for business (including dealings in foreign exchange and foreign
     currency deposits) in New York, and (ii) in relation to a Transfer of
     Eligible Collateral, a day on which the clearance system agreed between the
     parties for the delivery of Eligible Collateral is open for acceptance and
     execution of settlement instructions (or in the case of a Transfer of Cash
     or other Eligible Collateral for which delivery is contemplated by other
     means, a day on which commercial banks are open for business (including
     dealings for foreign exchange and foreign currency deposits) in New York
     and such other places as the parties shall agree).

     (vi) "CREDIT SUPPORT DELIVERY PERIOD" means, with respect to the assignment
     of Limited Qualifying Ratings or Disqualifying Ratings, as the case may be,
     by a Rating Agency, the period beginning within, with respect to:

          (1) MOODY'S: thirty (30) Local Business Days

          (2) S&P: ten (10) Local Business Days

          (3) FITCH: thirty (30) calendar days

     thereafter (or, in each case, if such ratings exist from the time the
     Pledgor becomes a party hereto or the guarantor under a Qualified Guaranty
     becomes a guarantor, from such time), and continuing for so long as such
     Limited Qualifying Ratings or Disqualifying Ratings continue.

     If Disqualifying Ratings are assigned after Limited Qualifying Ratings have
     been assigned, collateral shall be posted in accordance with the
     requirements applicable to Limited Qualifying Ratings until the Credit
     Support Delivery Period with respect to the Disqualifying Ratings has
     commenced.

(a) SECURITY INTEREST FOR "OBLIGATIONS." The term "OBLIGATIONS" as used in this
Annex includes the following additional obligations: Not applicable.

(b) CREDIT SUPPORT OBLIGATIONS. During the Credit Support Delivery Period,
Credit Support Amount, Value, Delivery Amount and Return Amount will be
calculated separately for each Rating Agency then rating the Certificates in
accordance with the provisions relating to such Rating Agency set forth in this
Paragraph 13(b), and the Pledgor will Transfer the highest Delivery Amount and
the Secured Party will Transfer the lowest Return Amount so calculated,
provided, that the Return Amount will be reduced to such amount as necessary so
that Transfer of a Delivery Amount will not be required immediately after the
Transfer of such Return Amount.

     (i)DELIVERY AMOUNT, RETURN AMOUNT AND CREDIT SUPPORT AMOUNT.

          (A) "DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a)
          except that the words "upon a demand made by the Secured Party on or
          promptly following a Valuation Date" shall be deleted and replaced by
          the words "on each Valuation Date during the Credit Support Delivery
          Period."

          (B) "RETURN AMOUNT" has the meaning specified in Paragraph 3(b).

          (C) "CREDIT SUPPORT AMOUNT" in Paragraph 3(b), shall be amended in its
          entirety to read as follows:

               "'CREDIT SUPPORT AMOUNT' means, (x) for any Valuation Date during
               the Credit Support Delivery Period, (i) the Secured Party's
               Exposure for that Valuation Date, plus (ii) the Independent
               Amount applicable to the Pledgor (with respect to all

                                      Q-24

<PAGE>

               Affected Transactions), if any, minus (iii) the Pledgor's
               Threshold; provided, however, that the Credit Support Amount will
               be deemed to be zero whenever the calculation of the Credit
               Support Amount yields a number less than zero, and shall not be
               less than the Credit Support Minimum; and (y) at any other time,
               None."

          The calculation of the Credit Support Amount during the Credit Support
          Delivery Period may be expressed in the following formula (which
          summarizes but does not supersede said provisions):

          Credit Support Amount = max [E + IA, 0, m]

          Where:

              max = the greater of; min = the lesser of

              E = Exposure (i.e., the market value of the Affected Transactions)

               IA = Independent Amount =

                    * Moody's: min [DV01 x 15 % (daily); % in Schedule 2 x N]

                    * Fitch: % in Schedule 3 (i.e., Volatility Cushion) x N

                    * S&P: 25% x E (Disqualifying Ratings only)

               N = the aggregate notional amount of the Affected Transactions.

               m = Credit Support Minimum (Moody's (Disqualifying Ratings only))

     (ii) ELIGIBLE COLLATERAL AND VALUATION PERCENTAGE. The items and Valuation
     Percentages with respect to each Rating Agency set forth in Schedule 1 will
     be "ELIGIBLE COLLATERAL" and the applicable "VALUATION PERCENTAGE" for such
     Rating Agency. Sub-paragraph (i)(A) of the definition of "Value" is amended
     to read as follows: "(A) Cash, the face amount thereof multiplied by the
     applicable Valuation Percentage; and".

     (iii) OTHER ELIGIBLE SUPPORT. The following items will qualify as "OTHER
     ELIGIBLE SUPPORT" for the party specified: Not Applicable.

     (iv) THRESHOLDS.

          (A) "INDEPENDENT AMOUNT" means with respect to the Secured Party:
          Zero; and, with respect to the Pledgor for any Valuation Date: an
          amount (identified separately for each Rating Agency) equal to:

               (1) MOODY'S: the lesser of (x) the product of (I) if each Local
               Business Day is a Valuation Date, 15, and, otherwise, 25, and
               (II) with respect to each Transaction and any date of
               determination, the estimated change in the mid-market value with
               respect to such Transaction that would result from a one basis
               point change in the relevant swap curve on such date, as
               determined by the Valuation Agent in good faith and in a
               commercially reasonable manner in accordance with the relevant
               methodology customarily used by the Valuation Agent for such
               Transaction (such estimate, the "DVO1" of the Pledgor), and (y)
               the product of (I) the Notional Amount for each Transaction for
               the Calculation Period which includes such Valuation Date and
               (II) the applicable percentage set forth in Schedule 2.

                                      Q-25

<PAGE>

               (2) S&P: (x) if S&P Limited Qualifying Ratings have been
               assigned, zero, and (y) if S&P Disqualifying Ratings have been
               assigned, the product of (I) the Secured Party's Exposure for
               that Valuation Date and (II) 25%.

               (3) FITCH: the product of the aggregate Notional Amount
               outstanding at the beginning of the related Calculation Period
               under the applicable Affected Transactions and the Fitch
               Volatility Cushion determined using the table set forth in
               Schedule 3.

          As used herein, "INDEPENDENT AMOUNT" means the additional amount to be
          added to the Secured Party's Exposure pursuant to the calculation of
          Credit Support Amount at the time the Delivery Amount is required to
          be delivered or transferred hereunder and does not imply or require
          that a separate amount be delivered or transferred on the execution of
          this Agreement or on any Trade Date or at any other time.

          (B) "THRESHOLD" means for the Pledgor: zero during the Credit Support
          Delivery Period and at any other time an infinite number.

          (C) "CREDIT SUPPORT MINIMUM" means, with respect to each Rating
          Agency, the amount identified below:

               (1) MOODY'S: if Moody's Disqualifying Ratings,have been assigned,
               the greater of zero and the aggregate amount of the net payments
               (each such net payment ("NET PAYMENT") being the greater of zero
               and the amount of the payment due to be made by the Pledgor under
               Section 2(a) on a Payment date less the amount of any payment due
               to be made by the Secured Party under Section 2(a) on the same
               Payment Date after giving effect to any applicable netting under
               Section 2(c)) with respect to all Affected Transactions due from
               the Pledgor in respect of all following scheduled Payments.

               (2) S&P: Zero.

               (3) FITCH: Zero.

          (D) "MINIMUM TRANSFER AMOUNT" means with respect to the Pledgor and
          the Secured Party: $100,000; provided, that the Minimum Transfer
          Amount shall be $50,000 if the aggregate principal balance of the
          rated Certificates is $50,000,000 or less on the applicable Valuation
          Date, and upon the occurrence and during the continuance of an Event
          of Default, Termination Event, Additional Termination Event, or
          Specified Condition with respect to such party shall be zero.

          (E) ROUNDING. The Delivery Amount will be rounded up to the nearest
          integral multiple of $10,000 and the Return Amount will be rounded
          down to the nearest integral multiple of $10,000.

(c) VALUATION AND TIMING.

     (i) "VALUATION AGENT" means, the Pledgor in all circumstances.

     (ii) "VALUATION DATE" means:.

          [X] each Local Business Day, or

          [ ] any Local Business Day in each calendar week, which shall be the
          same calendar day each week to the extent practicable, on a reasonably
          consistent basis.

                                      Q-26

<PAGE>

     provided, that, upon any assignment, transfer or novation of this Agreement
     by Party A, either a daily or weekly Valuation Date may be elected by the
     transferee.

     (iii) "VALUATION TIME" means:

          [ ] the close of business in the city of the Valuation Agent on the
          Valuation Date or date of calculation, as applicable;

          [X] the close of business on the Local Business Day before the
          Valuation Date or date of calculation, as applicable;

     provided, that (x) the calculations of Value and Exposure will be made as
     of approximately the same time on the same date, and (y) upon any
     assignment, transfer or novation of this Agreement by Party A, either same
     day or prior day Valuation Time may be elected by the transferee.

     (iv) "NOTIFICATION TIME" means 1:00 p.m., New York time, on a Local
     Business Day.

(d) CONDITIONS PRECEDENT AND SECURED PARTY'S RIGHTS AND REMEDIES. (i) Illegality
and (ii) Additional Termination Events will be a "SPECIFIED CONDITION" for the
Pledgor (as the Affected Party) (but not for purposes of Paragraph 8(d)), and
(iii) Tax Event and (iv) Tax Event Upon Merger will not be a "SPECIFIED
CONDITION for the Pledgor.

(e) SUBSTITUTION.

     (i) "SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

     (ii) CONSENT. If specified here as applicable, then the Pledgor must obtain
     the Secured Party's consent for any substitution pursuant to Paragraph
     4(d): Applicable.

(f) DISPUTE RESOLUTION.

     (i) "RESOLUTION TIME" means 1:00 p.m., New York time, on the Local Business
     Day following the date on which the notice is given that gives rise to a
     dispute under Paragraph 5.

     (ii) VALUE. For the purpose of Paragraphs 5(i)(C) and 5(ii), the Value of
     Posted Credit Support will be calculated as follows: as set forth for other
     purposes in Paragraph 12.

     (iii) ALTERNATIVE. The provisions of Paragraph 5 will apply, except to the
     following extent: (A) pending the resolution of a dispute, Transfer of the
     undisputed Value of Eligible Credit Support or Posted Credit Support
     involved in the relevant demand will be due as provided in Paragraph 5 if
     the demand is given by the Notification Time, but will be due on the second
     Local Business Day after the demand if the demand is given after the
     Notification Time; and (B) the Disputing Party need not comply with the
     provisions of Paragraph 5(II)(2) if the amount to be Transferred does not
     exceed the Disputing Party's Minimum Transfer Amount.

(g) HOLDING AND USING POSTED COLLATERAL.

     (i) ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS. The Secured Party
     will not be entitled to hold Posted Collateral itself, but will hold Posted
     Collateral in an identifiable segregated account through a Custodian (which
     may be the Supplemental Interest Trust Trustee and which shall at all times
     be a financial institution as specified in the Pooling and Servicing
     Agreement). If not so specified, the Custodian shall be a commercial bank
     or trust company which is unaffiliated with Party B organized under the
     laws of the

                                      Q-27

<PAGE>

     United States or any state thereof, having assets of at least $10 billion
     and a long term debt or a deposit rating of at least Baa2 from Moody's and
     A from S&P. For so long as the Certificates are rated by S&P, any Custodian
     other than the Supplemental Interest Trust Trustee shall have a short-term
     debt or deposit rating of at least A-1, or, if it has no short-term rating,
     a long-term debt or deposit rating of at least A+, from S&P and shall be
     replaced by the Trustee within sixty (60) calendar days after it ceases to
     have such ratings.

     Initially, the Custodian for Party B is: LaSalle Bank National Association

     (ii) USE OF POSTED COLLATERAL. The provisions of Paragraph 6(c) will not
     apply to the Secured Party; therefore, the Secured Party will not have any
     of the rights specified in Paragraph 6(c)(i) or 6 (c)(ii) except that the
     Secured Party may register any Posted Collateral in the name of the
     Custodian or its nominee under Paragraph 6(c)(ii).

(h) DISTRIBUTIONS AND INTEREST AMOUNT.

     (i) INTEREST RATE. The "INTEREST RATE", with respect to Eligible Collateral
     in the form of Cash will be the actual rate of interest earned by the
     Counterparty or the Custodian if the Cash is invested at the direction of
     the Pledgor in accordance with Paragraph 13(1)(iv); otherwise the "Interest
     Rate" will be, for any day, the rate opposite the caption "Federal Funds
     (Effective)" for such day as published for such day in Federal Reserve
     Publication H.15(519) or any successor publication as published by the
     Board of Governors of the Federal Reserve System or such other rate as
     agreed by the parties.

     (ii) TRANSFER OF INTEREST AMOUNT. The Transfer of the Interest Amount will
     be made on the first Local Business Day of each calendar month and on any
     Local Business Day that Posted Collateral in the form of Cash is
     Transferred to the Pledgor pursuant to Paragraph 3(b), subject to the
     receipt and availability of such funds.

     (iii) ALTERNATIVE TO INTEREST AMOUNT. The provisions of Paragraph 6(d)(ii)
     will apply.

(i) OTHER ELIGIBLE SUPPORT AND OTHER POSTED SUPPORT.

     (i) "VALUE" with respect to Other Eligible Support and Other Posted Support
     means: Inapplicable.

     (ii) "TRANSFER" with respect to Other Eligible Support and Other Posted
     Support means: Inapplicable.

(j) DEMANDS AND NOTICES. All demands, specifications and notices under this
Annex will be made pursuant to the Notices Section of this Agreement, unless
otherwise specified here:

     (i) Party A: Not applicable.

     (ii) Party B: Not applicable.

(k) ADDRESSES FOR TRANSFERS.

     Party A: For Cash: To be provided

              For Eligible Collateral: To be provided

     Party B: To be provided

(l) OTHER PROVISIONS.

                                      Q-28

<PAGE>

     (i) TRANSFER TIMING.

          (A) Paragraph 4(b) shall be deleted and replaced in its entirety by
          the following paragraph: "Subject to Paragraphs 4(a) and 5 and unless
          otherwise specified, if a demand for the Transfer of Eligible Credit
          Support or Posted Credit Support is made by the Notification Time,
          then the relevant Transfer will be made not later than the close of
          business on the second Local Business Day thereafter; if a demand is
          made after the Notification Time then the relevant Transfer will be
          made not later than the close of business on the third Local Business
          Day thereafter."

          (B) Paragraph 6(d)(1) shall be amended so that the reference therein
          to "the following Local Business Day" shall be replaced by reference
          to "the second Local Business Day thereafter".

     (ii) NO COUNTERCLAIM. A party's rights to demand and receive the Transfer
     of Eligible Collateral as provided hereunder and its rights as Secured
     Party against the Posted Collateral or otherwise shall be absolute and
     subject to no counterclaim, set-off, deduction or defense in favor of the
     Pledgor except as contemplated in Sections 2 and 6 of the Agreement and
     Paragraph 8 of this Annex.

     (iii) HOLDING COLLATERAL. The Secured Party shall cause any Custodian
     appointed hereunder to open and maintain a segregated account (the "SWAP
     COLLATERAL ACCOUNT") and to hold, record and identify all the Posted
     Collateral therein and, subject to Paragraphs 6(c) and 8(a), such Posted
     Collateral shall at all times be and remain the property of the Pledgor and
     shall at no time constitute the property of, or be commingled with the
     property of, the Secured Party or the Custodian.

     (iv) INVESTMENT OF CASH POSTED COLLATERAL. Posted Collateral in the form of
     cash shall be invested in Permitted Investments as directed by the Pledgor,
     with gains and losses incurred in respect of such investments to be for the
     account of the Pledgor, subject to the following parameters: the Posted
     Collateral in the form of cash shall be invested in such overnight (or
     redeemable within two Local Business Days of demand) investments meeting at
     least two of the following ratings requirements by the respective Rating
     Agencies (of which one shall be S&P if the Certificates are rated by S&P)
     (x) AAAm or AAAm-G by S&P, (y) Prime -1 or Aaa by Moody's, and (z)
     'AAA'/'F1' by Fitch, as directed by the Pledgor (provided, that such
     investment shall be held uninvested or invested at the direction of the
     Secured Party if an Event of Default or an Additional Termination Event has
     occurred with respect to which the Pledgor is the defaulting or sole
     Affected Party and the Secured Party has designated an Early Termination
     Date with respect thereto). Such instructions may be delivered as standing
     instructions.

     (v) RETURN OF POSTED COLLATERAL. At any time the Pledgor is required to
     post collateral pursuant to Part 5(i)(ii) of the Schedule, the Pledgor
     shall be obligated to transfer Eligible Collateral in accordance with the
     terms of this Annex. If the Pledgor is so required to post collateral, and
     thereafter ceases to be required to post collateral, under Part 5(i)(ii) of
     the Schedule (and provided that no Event of Default exists with respect to
     the Pledgor) or the Pledgor has made a transfer, assignment or novation of
     this Agreement and all the Transactions, then the Pledgor's obligations to
     transfer Eligible Collateral under this Annex will immediately cease, and
     the Secured Party will, upon demand by the Pledgor, return to the Pledgor,
     or cause its Custodian to return, all Posted Collateral held under this
     Annex. Without prejudice to the provisions of Paragraph 8, the Secured
     Party is authorized to liquidate any Posted Collateral pursuant to written
     instructions from the Pledgor.

     (vi) EXPENSES. Notwithstanding Paragraph 10, the Pledgor will be
     responsible for, and will reimburse the Secured Party for, all transfer and
     other taxes and other costs involved in the transfer and maintenance of
     Eligible Collateral.

                                      Q-29

<PAGE>

     (vii) LIMIT ON SECURED PARTY'S LIABILITY. The Secured Party will not be
     liable for any losses or damages that the Pledgor may suffer as a result of
     any failure by the Secured Party to perform, or any delay by it in
     performing, any of its obligations under this Annex if the failure or delay
     results from circumstances beyond the reasonable control of the Secured
     Party or its Custodian, such as interruption or loss of computer or
     communication services, labor disturbance, natural disaster or local or
     national emergency.

     (viii) EXTERNAL VERIFICATION OF MARK-TO-MARKET VALUATIONS. If the long-term
     or short-term senior unsecured debt of the Pledgor is rated BBB or F3 or
     below by Fitch, once every month, the Pledgor will at its own expense
     verify its determination of Exposure of the Transaction on the next
     Valuation Date by seeking quotations from two (2) Reference Market-makers
     (provided, that a Reference Market-maker may not be used more than four
     times within each 12 month period) for their determination of Exposure of
     the Transaction on such Valuation Date and the Valuation Agent will use the
     greater of either (a) its own determination or (b) the high quotation for a
     Reference Market-maker, if applicable for the next Valuation Date and cure
     any deficiency in collateral value within three Local Business Days. The
     Pledgor shall provide the quotations of such Reference Market-makers to
     Fitch.

                      [Signature page immediately follows]

                                      Q-30

<PAGE>

     IN WITNESS WHEREOF the parties have executed this Credit Support Annex on
     the respective dates specified below with effect from the date on the first
     page.

THE BANK OF NEW YORK                    LASALLE BANK NATIONAL ASSOCIATION, NOT
                                        IN ITS INDIVIDUAL CAPACITY, BUT SOLELY
                                        AS SUPPLEMENTAL INTEREST TRUST TRUSTEE
                                        WITH RESPECT TO THE SUPPLEMENTAL
                                        INTEREST TRUST RELATING TO THE MERRILL
                                        LYNCH FIRST FRANKLIN MORTGAGE LOAN
                                        TRUST, SERIES 2007-5

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

                                      Q-31

<PAGE>

                                   SCHEDULE 1A
                               ELIGIBLE COLLATERAL
                                     MOODY'S

Valuation Date (and Valuation Percentage column): Daily
Denomination of Credit Support Amount: USD

Moody's Valuation Percentage columns:

*    Column A sets out the percentage applicable when Moody's Limited Qualifying
     Ratings have been assigned.

*    Column B sets out the percentage applicable when Moody's Disqualifying
     Ratings have been assigned.

             ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S )

<TABLE>
<CAPTION>
                                                     REMAINING      VALUATION    VALUATION
                                                       YEARS       PERCENTAGE   PERCENTAGE
                                                    TO MATURITY      (DAILY)     (WEEKLY)
                                                   -------------   ----------   ----------
                                                    NOT
                   ELIGIBLE COLLATERAL              MORE   MORE
                  (CASH OR SECURITIES)             THAN:   THAN:    A      B     A      B
                  --------------------             -----   -----   ---   ----   ---   ----
<S>                                                <C>     <C>     <C>   <C>    <C>   <C>
TT.    U.S. Dollars (USD) Cash                      n/a     n/a    100%  100%   100%  100%
UU.    Euro Cash                                    n/a     n/a     98%   94%    97%   93%
VV.    Sterling (GBP) Cash                          n/a     n/a     98%   95%    97%   94%
WW.    Floating-rate negotiable debt obligations    n/a     n/a    100%   99%    99%   99%
       issued by the U.S. Treasury Department
       after July 18, 1984 ("TREASURIES") of all
       maturities
XX.    Fixed-rate US Treasuries                       0       1    100%  100%   100%  100%
YY.    Fixed-rate Treasuries                          1       2    100%   99%   100%   99%
ZZ.    Fixed-rate Treasuries                          2       3    100%   98%   100%   98%
AAA.   Fixed-rate Treasuries                          3       5    100%   97%   100%   97%
BBB.   Fixed-rate Treasuries                          5       7    100%   96%   100%   95%
CCC.   Fixed-rate Treasuries                          7      10    100%   94%   100%   94%
DDD.   Fixed-rate Treasuries                         10      20    100%   90%   100%   89%
EEE.   Fixed-rate Treasuries                         20      30    100%   88%   100%   87%
FFF.   Floating-rate negotiable debt obligations    n/a     n/a    100%   98%%  100%   98%
       of the Federal National Mortgage
       Association (FNMA), Federal Home Loan
       Mortgage Corporation (FHLMC), Federal
       Home Loan Banks (FHLB), Federal Farm
       Credit Banks (FFCB), Tennessee Valley
       Authority (TVA) (collectively, "AGENCY
       SECURITIES") of all maturities
GGG.   Fixed-rate Agency Securities                   0       1    100%   99%   100%   99%
HHH.   Fixed-rate Agency Securities                   1       2    100%   99%   100%   98%
III.   Fixed-rate Agency Securities                   2       3    100%   98%   100%   97%
JJJ.   Fixed-rate Agency Securities                   3       5    100%   96%   100%   96%
</TABLE>

                                     Q-1A-1

<PAGE>

             ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S )

<TABLE>
<S>                                                <C>     <C>     <C>   <C>    <C>   <C>
KKK.   Fixed-rate Agency Securities                   5       7    100%   93%   100%   94%
LLL.   Fixed-rate Agency Securities                   7      10    100%   93%   100%   93%
MMM.   Fixed-rate Agency Securities                  10      20    100%   89%   100%   88%
NNN.   Fixed-rate Agency Securities                  20      30    100%   87%   100%   86%
OOO.   FHLMC Certificates. Mortgage                   *       *      *     *      *     *
       participation certificates issued by
       FHLMC evidencing undivided interests or
       participations in pools of first lien
       conventional or FHA/VA residential
       mortgages or deeds of trust, guaranteed
       by FHLMC, issued after July 18, 1984 and
       having a remaining maturity of not more
       than 1 year and
       [1-2][2-3][3-5][5-7][7-10][10-20][20-]
       and not more than 30 years
PPP.   FNMA Certificates. Mortgage-backed             *       *      *     *      *     *
       pass-through certificates issued by FNMA
       evidencing undivided interests in pools
       of first lien mortgages or deeds of trust
       on residential properties, guaranteed by
       FNMA, issued after July 18, 1984 and
       having a remaining maturity of not more
       than 1 year and
       [1-2][2-3][3-5][5-7][7-10][10-20][20-]
       and not more than 30 years.
QQQ.   GNMA Certificates. Mortgage-backed             *       *      *     *      *     *
       pass-through certificates issued by
       private entities, evidencing undivided
       interests in pools of first lien
       mortgages or deeds of trust on single
       family residences, guaranteed by the
       Government National Mortgage Association
       (GNMA) with the full faith and credit of
       the United States, issued after July 18,
       1984 and having a remaining maturity of
       not more than 1 year and
       [1-2][2-3][3-5][5-7][7-10][10-20][20-]
       and not more than 30 years.
RRR.   Floating rate commercial mortgage-backed       *       *      *     *      *     *
       securities rated AAA by two major rating
       agencies (including S&P if S&P is a
       Rating Agency hereunder) with a minimum
       par or face amount of $250 million
       (excluding securities issued under Rule
       144A) ("COMMERCIAL MORTGAGE-BACKED
       SECURITIES") having a remaining maturity
       of not more than 1 year and
       [1-2][2-3][3-5][5-7][7-10][10-20][20-]
       and not more than 30 years.
SSS.   Commercial Paper with a rating of at         n/a     n/a      *     *      *     *
       least P-1 by Moody's and at least
</TABLE>

                                     Q-1A-2

<PAGE>

             ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S )

<TABLE>
<S>                                                <C>     <C>     <C>   <C>    <C>   <C>
       A-1+ by S&P (if S&P is a Rating Agency
       hereunder) and having a remaining
       maturity of not more than 30 days.
TTT.   Floating Rate Euro-denominated negotiable    n/a     n/a     98%   93%    97%   92%
       debt obligations rated Aa3 and above by
       Moody's issued or guaranteed by (a) the
       Bank of England on behalf of the Treasury
       of the United Kingdom; (b) the government
       of France; (c) the government of Germany;
       and (d) the government of Belgium ("EURO
       GOVERNMENT SECURITIES") of all maturities
UUU.   Fixed-Rate Euro Government Securities          0       1     98%   94%    97%   93%
VVV.   Fixed-Rate Euro Government Securities          1       2     98%   93%    97%   92%
WWW.   Fixed-Rate Euro Government Securities          2       3     98%   92%    97%   91%
XXX.   Fixed-Rate Euro Government Securities          3       5     98%   90%    97%   89%
YYY.   Fixed-Rate Euro Government Securities          5       7     98%   89%    97%   87%
ZZZ.   Fixed-Rate Euro Government Securities          7      10     98%   88%    97%   86%
AAAA.  Fixed-Rate Euro Government Securities         10      20     98%   84%    97%   82%
BBBB.  Fixed-Rate Euro Government Securities         20      30     98%   82%    97%   80%
CCCC.  Floating-Rate Sterling Pound-denominated     n/a     n/a     98%   93%    97%   93%
       negotiable debt obligations rated Aa3 and
       above by Moody's issued by the Bank of
       England on behalf of the Treasury of the
       United Kingdom ("GILTS") of all
       maturities
DDDD.  Fixed-Rate Gilts                               0       1     98%   94%    97%   93%
EEEE.  Fixed-Rate Gilts                               1       2     98%   93%    97%   92%
FFFF.  Fixed-Rate Gilts                               2       3     98%   92%    97%   91%
GGGG.  Fixed-Rate Gilts                               3       5     98%   91%    97%   90%
HHHH.  Fixed-Rate Gilts                               5       7     98%   90%    97%   89%
IIII.  Fixed-Rate Gilts                               7      10     98%   89%    97%   88%
JJJJ.  Fixed-Rate Gilts                              10      20     98%   86%    97%   84%
</TABLE>

                                     Q-1A-3

<PAGE>

             ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (MOODY'S )

<TABLE>
<S>                                                <C>     <C>     <C>   <C>    <C>   <C>
KKKK.  Fixed-Rate Gilts                              20      30     98%   84%    97%   82%
LLLL.  Other Items of Credit Support approved by      *       *      *     *      *     *
       the Rating Agency to the extent any Notes
       are rated.
</TABLE>

*    Zero, or such other valuation percentages as supplied or published by
     Moody's, in respect of which Moody's has delivered a ratings confirmation.

                                     Q-1A-4
<PAGE>

                                   SCHEDULE 1B
                               ELIGIBLE COLLATERAL
                                       S&P

Valuation Date (and Valuation Percentage column): Daily
Denomination of Credit Support Amount: USD

S&P Valuation Percentage columns:

     *    Column A sets out the percentage to be used when S&P Limited
          Qualifying Ratings have been assigned.

     *    Column B sets out the percentage to be used when S&P Disqualifying
          Ratings have been assigned.

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<CAPTION>
                                                         REMAINING
                                                           YEARS
                                                        TO MATURITY     VALUATION      VALUATION
                                                       -------------    PERCENTAGE    PERCENTAGE
                                                                NOT      (DAILY)       (WEEKLY)
                 ELIGIBLE COLLATERAL                    MORE    MORE   -----------   ------------
                (CASH OR SECURITIES)                   THAN:   THAN:     A      B      A       B
                --------------------                   -----   -----   ----   ----   -----   ----
<S>                                                    <C>     <C>     <C>    <C>    <C>     <C>
VV.   U.S. Dollars (USD) Cash                           n/a     n/a     100%  80.0%    100%    80%
WW.   EUR Cash                                          n/a     n/a    95.1%  76.1%   92.6%  74.1%
XX.   Sterling (GBP) Cash                               n/a     n/a    96.1%  76.9%   94.1%  75.3%
YY.   Floating-rate negotiable debt obligations         n/a     n/a     n/a    n/a     n/a    n/a
      issued by the U.S. Treasury Department after
      July 18, 1984 ("FLOATING RATE TREASURIES") of
      all maturities
ZZ.   Fixed-rate negotiable debt obligations issued       0       1    98.9%  79.1%   98.0%  78.4%
      by the U.S. Treasury Department after July
      18, 1984 ("FIXED-RATE TREASURIES")
AAA.  Fixed-rate Treasuries                               1       2    98.0%  78.4%   98.0%  78.4%
BBB.  Fixed-rate Treasuries                               2       3    98.0%  78.4%   98.0%  78.4%
CCC.  Fixed-rate Treasuries                               3       5    98.0%  78.4%   98.0%  78.4%
DDD.  Fixed-rate Treasuries                               5       7    93.7%  75.0%   92.6%  74.1%
EEE.  Fixed-rate Treasuries                               7      10    92.6%  74.1%   92.6%  74.1%
FFF.  Fixed-rate Treasuries                              10      20    91.1%  72.9%   87.9%  70.3%
GGG.  Fixed-rate Treasuries                              20      30    88.6%  70.9%   84.6%  67.7%
HHH.  Floating-rate negotiable debt obligations of      n/a     n/a       *      *       *      *
      the Federal National Mortgage Association
      (FNMA), Federal Home Loan Mortgage
      Corporation (FHLMC), Federal Home Loan Banks
      (FHLB), Federal Farm Credit Banks (FFCB),
      Tennessee Valley Authority (TVA)
      (collectively, "FLOATING-RATE AGENCY
      SECURITIES") (all maturities)
</TABLE>

                                     Q-1B-1

<PAGE>

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<S>                                                    <C>     <C>     <C>    <C>    <C>     <C>
III.  Fixed-rate negotiable debt obligations of the       0       1    98.5%  78.8%   98.0%  78.4%
      Federal National Mortgage Association (FNMA),
      Federal Home Loan Mortgage Corporation
      (FHLMC), Federal Home Loan Banks (FHLB),
      Federal Farm Credit Banks (FFCB), Tennessee
      Valley Authority issued after July 18, 1984
      (TVA) (collectively, "FIXED-RATE AGENCY
      SECURITIES")
JJJ.  Fixed-rate Agency Securities                        1       2    98.0%  78.4%   98.0%  78.4%
KKK.  Fixed-rate Agency Securities                        2       3    98.0%  78.4%   98.0%  78.4%
LLL.  Fixed-rate Agency Securities                        3       5    98.0%  78.4%   98.0%  78.4%
MMM.  Fixed-rate Agency Securities                        5       7    92.6%  74.1%   92.6%  74.1%
NNN.  Fixed-rate Agency Securities                        7      10    92.6%  74.1%  92..6%  74.1%
OOO.  Fixed-rate Agency Securities                       10      20    87.7%  70.2%   82.6%  66.1%
PPP.  Fixed-rate Agency Securities                       20      30    84.4%  67.5%   77.9%  62.3%
QQQ.  FHLMC Certificates. Mortgage participation          *       *       *      *       *      *
      certificates issued by FHLMC evidencing
      undivided interests or participations in
      pools of first lien conventional or FHA/VA
      residential mortgages or deeds of trust,
      guaranteed by FHLMC, issued after July 18,
      1984 and having a remaining maturity of not
      more than 1 year and
      [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
      not more than 30 years
RRR.  FNMA Certificates. Mortgage-backed                  *       *       *      *       *      *
      pass-through certificates issued by FNMA
      evidencing undivided interests in pools of
      first lien mortgages or deeds of trust on
      residential properties, guaranteed by FNMA,
      issued after July 18, 1984 and having a
      remaining maturity of not more than 1 year
      and [1-2][2-3][3-5][5-7][7-10][10-20][20-]
      and not more than 30 years
SSS.  GNMA Certificates. Mortgage-backed                  *       *       *      *       *      *
      pass-through certificates issued by private
      entities, evidencing undivided interests in
      pools of first lien mortgages or deeds of
      trust on single family residences, guaranteed
      by the Government National Mortgage
      Association (GNMA) with the full faith and
      credit of the United States, issued after
      July 18, 1984 and having a remaining maturity
      of not more than 1 year and
      [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
      not more than 30 years
</TABLE>

                                     Q-1B-2

<PAGE>

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<S>                                                    <C>     <C>     <C>    <C>    <C>     <C>
TTT.  Floating rate commercial mortgage-backed            *       *       *      *       *      *
      securities rated AAA by two major rating
      agencies (including S&P if S&P is a Rating
      Agency hereunder) with a minimum par or face
      amount of $250 million (excluding securities
      issued under Rule 144A) ("COMMERCIAL MORTGAGE
      - BACKED SECURITIES") having a remaining
      maturity of not more than 1 year and
      [1-2][2-3][3-5][5-7][7-10][10-20][20-] and
      not more than 30 years
UUU.  Commercial Paper with a rating of at least        n/a     n/a       *      *       *      *
      P-1 by Moody's and at least A-1+ by S&P and
      having a remaining maturity of not more than
      30 days
VVV.  Floating Rate Euro-denominated negotiable           0       5       *      *       *      *
      debt obligations rated AAA by S&P issued or
      guaranteed by (a) the Bank of England on
      behalf of the Treasury of the United Kingdom;
      (b) the government of France; (c) the
      government of Germany; and (d) the government
      of Belgium ("EURO GOVERNMENT SECURITIES")
WWW.  Floating-Rate Euro Government Securities            5      10       *      *       *      *
XXX.  Fixed-Rate Euro Government Securities               0       1    98.8%  79.0%   95.2%  76.2%
YYY.  Fixed-Rate Euro Government Securities               1       2    97.9%  78.3%   95.2%  76.2%
ZZZ.  Fixed-Rate Euro Government Securities               2       3    96.9%  77.5%   95.2%  76.2%
AAAA. Fixed-Rate Euro Government Securities               3       5    95.2%  76.2%   95.2%  76.2%
BBBB. Fixed-Rate Euro Government Securities               5       7    88.7%  71.0%   87.0%  69.6%
CCCC. Fixed-Rate Euro Government Securities               7      10    87.0%  69.6%   87.0%  69.6%
DDDD. Fixed-Rate Euro Government Securities              10      20    75.5%  60.4%   72.5%  58.0%
EEEE. Fixed-Rate Euro Government Securities              20      30       *      *       *      *
FFFF. Floating-Rate Sterling Pound-denominated            0       5       *      *       *      *
      negotiable debt obligations rated AAA by S&P
      issued by the Bank of England on behalf of
      the Treasury of the United Kingdom ("GILTS")
GGGG. Floating-Rate Gilts                                 5      10       *      *       *      *
HHHH. Fixed-Rate Gilts                                    0       1       *      *       *      *
IIII. Fixed-Rate Gilts                                    1       2       *      *       *      *
</TABLE>

                                     Q-1B-3

<PAGE>

                ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (S&P)

<TABLE>
<S>                                                    <C>     <C>     <C>    <C>    <C>     <C>
JJJJ. Fixed-Rate Gilts                                    2       3       *      *       *      *
KKKK. Fixed-Rate Gilts                                    3       5       *      *       *      *
LLLL. Fixed-Rate Gilts                                    5       7       *      *       *      *
MMMM. Fixed-Rate Gilts                                    7      10       *      *       *      *
NNNN. Fixed-Rate Gilts                                   10      20       *      *       *      *
OOOO. Fixed-Rate Gilts                                   20      30       *      *       *      *
PPPP. Other Items of Credit Support approved by the                       *      *       *      *
      Rating Agency to the extent any Certificates
      are rated
</TABLE>

*    Zero, or such other valuation percentages as supplied or published by S&P,
     in respect of which the S&P Rating Agency Condition has been satisfied.

                                     Q-1B-4
<PAGE>

                                   SCHEDULE 1C
                               ELIGIBLE COLLATERAL
                                      FITCH

Valuation Date: Weekly (Percentages for Daily to be substituted on publication
or communication by Fitch.)

Denomination of Credit Support Amount: USD

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<CAPTION>
                                                          REMAINING
                                                            YEARS
                                                         TO MATURITY
                                                        -------------    VALUATION     VALUATION
                                                                 NOT     PERCENTAGE    PERCENTAGE
                                                         MORE    MORE     (DAILY)       (WEEKLY)
          ELIGIBLE COLLATERAL (CASH OR SECURITIES)      THAN:   THAN:   (AAA RATED)   (AAA RATED)
          ----------------------------------------      -----   -----   -----------   -----------
<S>                                                     <C>     <C>     <C>           <C>
LLL.   U.S. Dollars (USD) Cash                           n/a     n/a        100%
MMM.   EUR Cash
NNN.   Sterling (GBP) Cash
OOO.   Floating-rate negotiable debt obligations
       issued by the U.S. Treasury Department
       after July 18, 1984 ("FLOATING-RATE
       TREASURIES") of all maturities                    n/a     n/a          *
PPP.   Fixed-rate negotiable debt obligations
       issued by the U.S. Treasury Department
       after July 18, 1984 ("FIXED-RATE
       TREASURIES")                                        0       1       99.5%
QQQ.   Fixed-rate Treasuries                               1       2       97.6%
RRR.   Fixed-rate Treasuries                               2       3       97.6%
SSS.   Fixed-rate Treasuries                               3       5       96.3%
TTT.   Fixed-rate Treasuries                               5       7       95.3%
UUU.   Fixed-rate Treasuries                               7      10       93.9%
VVV.   Fixed-rate Treasuries                              10      15       92.6%
WWW.   Fixed-rate Treasuries                              15      30          *            *
XXX.   Floating-rate negotiable debt obligations of
       the Federal National Mortgage Association
       (FNMA), Federal Home Loan Mortgage Corporation
       (FHLMC), Federal Home Loan Banks (FHLB),
       Federal Farm Credit Banks (FFCB), Tennessee
       Valley Authority (TVA) (collectively,
       "FLOATING-RATE AGENCY SECURITIES") of all
       maturities                                        n/a     n/a          *            *
YYY.   Fixed-Rate negotiable debt obligations of the
       Federal National Mortgage Association (FNMA),
       Federal Home Loan Mortgage Corporation
       (FHLMC), Federal Home Loan Banks (FHLB),
       Federal Farm Credit Banks (FFCB), Tennessee
       Valley Authority (TVA) issued after July 18,
       1984. (collectively, "FIXED-RATE AGENCY
       SECURITIES")                                        0       1          *            *
ZZZ.   Fixed-rate Agency Securities                        1       2          *            *
AAAA.  Fixed-rate Agency Securities                        2       3          *            *
</TABLE>

                                     Q-1C-1

<PAGE>

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<S>                                                     <C>     <C>     <C>           <C>
BBBB.  Fixed-rate Agency Securities                        3       5          *            *
CCCC.  Fixed-rate Agency Securities                        5       7          *            *
DDDD.  Fixed-rate Agency Securities                        7      10          *            *
EEEE.  Fixed-rate Agency Securities                       10      15          *            *
FFFF.  Fixed-rate Agency Securities                       20      30          *            *
GGGG.  FHLMC Certificates. Mortgage participation
       certificates issued by FHLMC evidencing
       undivided interests or participations in pools
       of first lien conventional or FHA/VA
       residential mortgages or deeds of trust,
       guaranteed by FHLMC, issued after July 18,
       1984 and having a remaining maturity of not
       more than 1 year and
       [1-2][2-3][3-5][5-7][7-10][10-20][20-30] years                         *            *
HHHH.  FNMA Certificates. Mortgage-backed
       pass-through certificates issued by FNMA
       evidencing undivided interests in pools of
       first lien mortgages or deeds of trust on
       residential properties, guaranteed by FNMA,
       issued after July 18, 1984 and having a
       remaining maturity of not more than 1 year and
       [1-2][2-3][3-5][5-7][7-10][10-20][20-30] years                         *            *
IIII.  GNMA Certificates. Mortgage-backed
       pass-through certificates issued by private
       entities, evidencing undivided interests in
       pools of first lien mortgages or deeds of
       trust on single family residences,
       guaranteed by the Government National
       Mortgage Association (GNMA) with the full
       faith and credit of the United States, issued
       after July 18, 1984 and having a remaining
       maturity of not more than 1 year and
       [1-2][2-3][3-5][5-7][7-10][10-20][20-30] years                         *            *
JJJJ.  Floating rate commercial mortgage-backed
       securities rated AAA by two major rating
       agencies with a minimum par or face amount of
       $250 million (excluding securities issued
       under Rule 144A) ("COMMERCIAL MORTGAGE-BACKED
       SECURITIES") having a remaining maturity of
       [1-2][2-3][3-5][5-7][7-10][10-20][20- 30]
       years                                                                  *            *
KKKK.  Commercial Paper with a rating of at least
       F-1+ by Fitch and having a remaining maturity
       of not more than 1 year denominated in USD,
       EUR or GBP                                                          99.5%
LLLL.  Floating-Rate Sterling Pound-denominated
       negotiable debt obligations issued by the Bank
       of England on behalf of the Treasury of the
       United Kingdom ("GILTS") of all maturities          *       *          *            *
MMMM.  Fixed-Rate Gilts                                    0       1       99.3%
</TABLE>

                                     Q-1C-2

<PAGE>

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<S>                                                     <C>     <C>     <C>           <C>
NNNN.  Fixed-Rate Gilts                                    1       2       97.8%
OOOO.  Fixed-Rate Gilts                                    2       3       97.8%
PPPP.  Fixed-Rate Gilts                                    3       5       96.6%
QQQQ.  Fixed-Rate Gilts                                    5       7       95.7%
RRRR.  Fixed-Rate Gilts                                    7      10       94.0%
SSSS.  Fixed-Rate Gilts                                   10      15       92.8%
TTTT.  Fixed-Rate Gilts                                   15      30          *            *
UUUU.  Floating-Rate Euro-denominated negotiable debt
       obligations rated Aa3 and above by Moody's
       issued or guaranteed by the government of
       France ("OATS") of all maturities                 n/a     n/a          *            *
VVVV.  Fixed-Rate Oats                                     0       1       98.8%
WWWW.  Fixed-Rate Oats                                     1       2
XXXX.  Fixed-Rate Oats                                     2       3       98.2%
YYYY.  Fixed-Rate Oats                                     3       5       98.2%
ZZZZ.  Fixed-Rate Oats                                     5       7       97.0%
AAAAA. Fixed-Rate Oats                                     7      10       96.0%
BBBBB. Fixed-Rate Oats                                    10      15       94.7%
CCCCC. Fixed-Rate Oats                                    15      30          *            *
DDDDD. Floating-Rate Euro-denominated negotiable debt
       obligations rated Aa3 and above by Moody's
       issued or guaranteed by the government of
       Germany ("Bunds") of all maturities               n/a     n/a          *            *
EEEEE. Fixed-Rate Bunds                                    0       1       99.3%
FFFFF. Fixed-Rate Bunds                                    1       2       98.1%
GGGGG. Fixed-Rate Bunds                                    2       3       98.1%
HHHHH. Fixed-Rate Bunds                                    3       5       96.9%
IIIII. Fixed-Rate Bunds                                    5       7       96.2%
JJJJJ. Fixed-Rate Bunds                                    7      10       95.1%
KKKKK. Fixed-Rate Bunds                                   10      15       94.2%
LLLLL. Fixed-Rate Bunds                                   15      30          *            *
MMMMM. Floating-Rate Euro-denominated negotiable debt
       obligations rated Aa3 and above by Moody's
       issued or guaranteed by the government of
       Belgium ("Olos") of all maturities                n/a     n/a
NNNNN. Fixed-Rate Olos                                     0       1       99.3%
OOOOO. Fixed-Rate Olos                                     1       2       98.1%
PPPPP. Fixed-Rate Olos                                     2       3       98.1%
QQQQQ. Fixed-Rate Olos                                     3       5       96.9%
RRRRR. Fixed-Rate Olos                                     5       7       96.2%
SSSSS. Fixed-Rate Olos                                     7      10       95.1%
</TABLE>

                                     Q-1C-3

<PAGE>

               ELIGIBLE COLLATERAL & VALUATION PERCENTAGES (FITCH)

<TABLE>
<S>                                                     <C>     <C>     <C>           <C>
TTTTT. Fixed-Rate Olos                                    10      15       94.2%
UUUUU. Fixed-Rate Olos                                    15      30          *            *
VVVVV. Other Items of Credit Support approved by the
       Rating Agency to the extent any Certificates
       are rated                                                              *            *
</TABLE>

*    Zero, or such other valuation percentages as supplied or published by
     Fitch, in respect of which Fitch has delivered a ratings confirmation.

In addition to (and if not set forth in) the foregoing table, the following
items will constitute Eligible Collateral, at the valuation percentages
indicated (weekly valuation basis) or to be supplied or as published by Fitch
(daily valuation basis) (assuming the notes to be denominated in the currency
indicated):

               VALUATION PERCENTAGES FOR GOVERNMENT BONDS (FITCH)

                     (Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                     REMAINING YEARS
                       TO MATURITY
                    ----------------        NOTES' RATING (%)
                     MORE   NOT MORE   ---------------------------
REGION   CURRENCY   THAN:     THAN:    'AAA'   'AA'    'A'   'BBB'
------   --------   -----   --------   -----   ----   ----   -----
<S>      <C>        <C>     <C>        <C>     <C>    <C>    <C>
Europe      EUR        0        1       99.6   99.7   99.8    99.8
Europe      EUR        1        3       98.7   99.1   99.3    99.4
Europe      EUR        3        5       98.0   98.6   98.9    99.1
Europe      EUR        5        7       97.5   98.2   98.6    98.9
Europe      EUR        7       10       96.8   97.7   98.2    98.6
Europe      EUR       10       15       95.9   97.1   97.7    98.2
U.K.        GBP        0        1       99.6   99.7   99.8    99.8
U.K.        GBP        1        3       98.5   99.1   99.3    99.4
U.K.        GBP        3        5       97.9   98.6   98.9    99.1
U.K.        GBP        5        7       97.2   98.2   98.6    98.9
U.K.        GBP        7       10       96.7   97.7   98.2    98.5
U.K.        GBP       10       15       95.7   97.0   97.6    98.1
</TABLE>

                                     Q-1C-4

<PAGE>

<TABLE>
<S>      <C>        <C>     <C>        <C>     <C>    <C>    <C>
U.S.        USD        0        1       99.5   99.6   99.7    99.8
U.S.        USD        1        3       98.2   98.7   99.0    99.2
U.S.        USD        3        5       96.6   97.9   98.4    98.7
U.S.        USD        5        7       95.3   97.3   97.9    98.3
U.S.        USD        7       10       93.9   96.4   97.2    97.7
U.S.        USD       10       15       92.7   95.5   96.5    97.1
</TABLE>

                                     Q-1C-5
<PAGE>

                                   SCHEDULE 2
                     MOODY'S INDEPENDENT AMOUNT PERCENTAGES

Valuation Date (and Valuation Percentage column): Daily
Denomination of Credit Support Amount: USD

The following percentages shall be used in the calculation of the Moody's
Independent Amount:

*    Column A: LIMITED QUALIFYING RATINGS INDEPENDENT AMOUNT PERCENTAGE:

          Percentage to be used when Moody's Limited Qualifying Ratings have
          been assigned. Applies to any Transaction.

*    Column B: DISQUALIFYING RATINGS INDEPENDENT AMOUNT PERCENTAGE (TRANSACTION
     SPECIFIC HEDGES):

          Percentage to be used when Moody's Disqualifying Ratings have been
          assigned. Applies to any Transaction that is an interest rate cap,
          interest rate floor or interest rate swaption, or that is an interest
          rate swap the notional amount of which is "balance guaranteed" or, for
          any Calculation Period, otherwise is not a specific dollar amount that
          is fixed at the inception of the Transaction (a "TRANSACTION-SPECIFIC
          HEDGE").

*    Column C: DISQUALIFYING RATINGS INDEPENDENT AMOUNT PERCENTAGE
     (NON-TRANSACTION SPECIFIC HEDGES):

          Percentage to be used when Moody's Disqualifying Ratings have been
          assigned.

          Applies to any Transaction that is not a Transaction-Specific Hedge.

<TABLE>
<CAPTION>
 WEIGHTED AVERAGE LIFE OF   MOODY'S INDEPENDENT
   TRANSACTION IN YEARS      AMOUNT PERCENTAGES
-------------------------   -------------------
MORE THAN   NOT MORE THAN     A      B       C
---------   -------------   ----   -----   ----
<S>         <C>             <C>    <C>     <C>
    0             1         0.15%   0.65%  0.50%
    1             2         0.30%   1.30%  1.00%
    2             3         0.40%   1.90%  1.50%
    3             4         0.60%   2.50%  1.90%
    4             5         0.70%   3.10%  2.40%
    5             6         0.80%   3.60%  2.80%
    6             7         1.00%   4.20%  3.20%
    7             8         1.10%   4.70%  3.60%
    8             9         1.20%   5.20%  4.00%
    9            10         1.30%   5.70%  4.40%
   10            11         1.40%   6.10%  4.70%
   11            12         1.50%   6.50%  5.00%
   12            13         1.60%   7.00%  5.40%
   13            14         1.70%   7.40%  5.70%
   14            15         1.80%   7.80%  6.00%
   15            16         1.90%   8.20%  6.30%
   16            17         2.00%   8.60%  6.60%
   17            18         2.00%   9.00%  6.90%
</TABLE>

                                      Q-2-1

<PAGE>

<TABLE>
<S>         <C>             <C>    <C>     <C>
   18            19         2.00%   9.40%  7.20%
   19            20         2.00%   9.70%  7.50%
   20            21         2.00%  10.00%  7.80%
   21            22         2.00%  10.00%  8.00%
   22            30         2.00%  10.00%
</TABLE>

                                      Q-2-2

<PAGE>

                                   SCHEDULE 3
                            FITCH VOLATILITY CUSHION

Valuation: Daily
Denomination of Credit Support Amount: USD

The Fitch Volatility Cushion will be determined using the following tables
(provided that percentages assuming daily posting of collateral, based on
assumptions in effect on the date hereof, are to be substituted on publication
or communication by Fitch.):

             VOLATILITY CUSHIONS FOR INTEREST RATE SWAPS AND COLLARS

                   (%, Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                                                   WEIGHTED AVERAGE LIFE (YEARS)
                             BASIS   ---------------------------------------------------------
CURRENCY    NOTES' RATHING    SWAP    1     2     3     4     5     6     7     8     9     10
--------   ---------------   -----   ---   ---   ---   ---   ---   ---   ---   ---   ---   ---
<S>        <C>               <C>     <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
USD        'AA-' or Better    0.19   0.6   1.6   2.6   3.4   4.2   4.8   5.5   5.9   6.4   7.0
USD        'A+/A'             0.10   0.3   0.8   1.3   1.7   2.1   2.4   2.8   3.0   3.3   3.6
USD        'A-/BBB+'          0.07   0.2   0.6   1.0   1.3   1.6   1.9   2.1   2.3   2.5   2.7
EUR        'AA-' or Better    0.11   0.4   1.0   1.6   2.1   2.5   2.8   3.1   3.4   3.6   3.9
EUR        'A+/A'             0.07   0.2   0.6   1.0   1.3   1.5   1.7   1.9   2.1   2.2   2.4
EUR        'A-/BBB+'          0.05   0.2   0.5   0.7   1.0   1.1   1.3   1.4   1.6   1.7   1.8
GBP        'AA-' or Better    0.12   0.4   1.1   1.6   2.0   2.4   2.7   3.0   3.2   3.5   4.0
GBP        'A+/A'             0.07   0.3   0.6   0.9   1.2   1.4   1.5   1.8   1.9   2.0   2.3
GBP        'A-/BBB+'          0.05   0.2   0.5   0.7   0.9   1.1   1.2   1.4   1.5   1.6   1.8
</TABLE>

                   VOLATILITY CUSHIONS FOR INTEREST RATE CAPS

                   (%, Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                                           WEIGHTED AVERAGE LIFE (YEARS)
                             ---------------------------------------------------------
CURRENCY   NOTES' RATING      1     2     3     4     5     6     7     8     9     10
--------   ---------------   ---   ---   ---   ---   ---   ---   ---   ---   ---   ---
<S>        <C>               <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
USD        'AA-' or Better   0.4   1.3   2.1   2.8   3.3   4.0   4.0   4.3   4.5   5.0
USD        'A+/A'            0.3   0.8   1.3   1.7   1.8   2.4   2.4   2.4   2.5   2.5
</TABLE>

                                      Q-3-2

<PAGE>

<TABLE>
<S>        <C>               <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
USD        'A-/BBB+'         0.2   0.6   0.9   1.2   1.2   1.6   1.6   1.8   1.8   1.9
EUR        'AA-' or Better   0.3   0.8   1.3   1.5   1.9   1.9   2.1   2.2   2.4   2.4
EUR         A+/A             0.2   0.6   0.9   1.2   1.3   1.4   1.6   1.6   1.7   1.7
EUR        'A-/BBB+'         0.2   0.5   0.7   0.9   1.1   1.2   1.2   1.3   1.3   1.3
GBP        'AA-' or Better   0.4   1.0   1.3   1.7   1.7   1.7   2.0   2.2   2.2   2.2
GBP        'A+/A'            0.2   0.6   0.8   1.0   1.1   1.1   1.3   1.5   1.5   1.5
GBP        'A-/BBB+'         0.2   0.4   0.6   0.8   0.9   0.9   1.0   1.2   1.2   1.2
</TABLE>

                  VOLATILITY CUSHIONS FOR CROSS-CURRENCY SWAPS

                   (%, Assuming Weekly Posting of Collateral)

<TABLE>
<CAPTION>
                                                   WEIGHTED AVERAGE LIFE (YEARS)
                             BASIS   ---------------------------------------------------------
CURRENCY    NOTES' RATING     SWAP    1     2     3     4     5     6     7     8     9     10
--------   ---------------   -----   ---   ---   ---   ---   ---   ---   ---   ---   ---   ---
<S>        <C>               <C>     <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
EUR/GBP    'AA-' or Better    4.6    4.7   4.8   4.9   5.1   5.3   5.4   5.6   5.7   5.8   6.0
EUR/GBP    'A+/A'             3.7    3.8   3.8   4.0   4.1   4.2   4.4   4.5   4.6   4.7   4.9
EUR/GBP    'A-/BBB+'          3.0    3.0   3.1   3.2   3.3   3.4   3.5   3.6   3.7   3.8   3.9
EUR/USD    'AA-' or Better    8.0    8.1   8.3   8.6   8.8   9.0   9.1   9.3   9.4   9.5   9.7
EUR/USD    'A+/A'             5.1    5.2   5.3   5.5   5.6   5.8   5.9   6.0   6.0   6.1   6.2
EUR/USD    'A-/BBB+'          4.3    4.4   4.5   4.7   4.8   4.9   5.0   5.1   5.1   5.2   5.3
GBP/USD    'AA-' or Better    6.4    6.4   6.5   6.6   6.7   6.8   6.9   7.1   7.2   7.3   7.5
GBP/USD    'A+/A'             4.2    4.2   4.3   4.3   4.4   4.5   4.5   4.6   4.7   4.8   4.9
GBP/USD    'A-/BBB+'          3.4    3.4   3.5   3.5   3.6   3.6   3.7   3.8   3.8   3.9   4.0
</TABLE>

                                      Q-3-2
<PAGE>

                                    EXHIBIT R

                        FORM OF ASSESSMENT OF COMPLIANCE

1.   [Name of Servicing Entity] ("XYZ") is responsible for assessing compliance
     with the servicing criteria applicable to it under paragraph (d) of Item
     1122 of Regulation AB, as of and for the 12-month period ending [December
     31, _____] (the "Reporting Period"), as set forth in Appendix ____ hereto.
     The transactions covered by this report are attached hereto as Appendix B
     and include asset-backed securities transactions for which the undersigned
     servicing entity has acted as a servicer involving residential mortgage
     loans (the "Platform").The transactions covered by this report include
     asset-backed securities transactions [for which XYZ acted as [master
     servicer, servicer, trustee, securities administrator, custodian] (the
     "Platform");

2.   XYZ has engaged certain vendors (the "Vendors") to perform specific,
     limited or scripted activities, and XYZ elects to take responsibility for
     assessing compliance with the servicing criteria or portion of the
     servicing criteria applicable to such Vendors' activities as set forth in
     Appendix ___ hereto;

3.   Except as set forth in paragraph 4 below, XYZ used the criteria set forth
     in paragraph (d) of Item 1122 of Regulation AB to assess the compliance
     with the applicable servicing criteria;

4.   The criteria referred to as "inapplicable servicing criteria" on Appendix
     ___ hereto are inapplicable to XYZ based on the activities it performs,
     directly or through its Vendors, with respect to the Platform;

5.   XYZ has complied, in all material respects, with the applicable servicing
     criteria as of [December 31, _____] and for the Reporting Period with
     respect to the Platform taken as a whole[, except as described on Appendix
     B hereto];

6.   XYZ has not identified and is not aware of any material instance of
     noncompliance by the Vendors with the applicable servicing criteria as of
     [December 31, _____] and for the Reporting Period with respect to the
     Platform taken as a whole [, except as described on Appendix ____ hereto];

7.   XYZ has not identified any material deficiency in its policies and
     procedures to monitor the compliance by the Vendors with the applicable
     servicing criteria as of [December 31, ______] and for the Reporting Period
     with respect to the Platform taken as a whole [, except as described on
     Appendix B hereto]; and

8.   [_____________], a registered public accounting firm, has issued an
     attestation report on XYZ's assessment of compliance with the applicable
     servicing criteria for the Reporting Period.

[Date of Certification]                 [Name of Servicing Entity]

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

                                       R-1

<PAGE>

                                    EXHIBIT S

                       SERVICING CRITERIA TO BE ADDRESSED
                           IN ASSESSMENT OF COMPLIANCE
                          (RMBS UNLESS OTHERWISE NOTED)

DEFINITIONS                                             KEY:

PRIMARY SERVICER - transaction party having borrower contact X - obligation
TRUSTEE - fiduciary of the transaction and safe keeper of certain pool assets
CUSTODIAN - safe keeper of certain pool assets

WHERE THERE ARE MULTIPLE CHECKS FOR CRITERIA THE ATTESTING PARTY WILL IDENTIFY
IN THEIR MANAGEMENT ASSERTION THAT THEY ARE ATTESTING ONLY TO THE PORTION OF THE
DISTRIBUTION CHAIN THEY ARE RESPONSIBLE FOR IN THE RELATED TRANSACTION
AGREEMENTS.

<TABLE>
<CAPTION>
                                                          HOME LOAN
                                                          SERVICES,       LASALLE
REGULATION AB                                                INC.           BANK            ADDITIONAL
REFERENCE                  SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
----------------   ----------------------------------   -------------   -----------   ---------------------
<S>                <C>                                  <C>             <C>           <C>
                   GENERAL SERVICING CONSIDERATIONS

1122(d)(1)(i)      Policies and procedures are                X              X        Servicer and
                   instituted to monitor any                                          Trustee each
                   performance or other triggers and                                  responsible only to
                   events of default in accordance                                    the extent that
                   with the transaction agreements.                                   each party, as
                                                                                      applicable, has
                                                                                      actual knowledge or
                                                                                      written notice with
                                                                                      respect to parties
                                                                                      other than itself.

1122(d)(1)(ii)     If any material servicing            IF APPLICABLE       IF
                   activities are outsourced to third       FOR A       APPLICABLE
                   parties, policies and procedures      TRANSACTION       FOR A
                   are instituted to monitor the         PARTICIPANT    TRANSACTION
                   third party's performance and                        PARTICIPANT
                   compliance with such servicing
                   activities.

1122(d)(1)(iii)    Any requirements in the                   N/A            N/A
                   transaction agreements to maintain
                   a back-up servicer for the Pool
                   Assets are maintained.

1122(d)(1)(iv)     A fidelity bond and errors and             X
                   omissions policy is in effect on
                   the party participating in the
                   servicing function throughout the
                   reporting period in the amount of
                   coverage required by and otherwise
                   in accordance with the terms of
                   the transaction agreements.

                   CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)      Payments on pool assets are                X              X        Servicer and
                   deposited into the appropriate                                     Trustee each
                   custodial bank accounts and                                        responsible only
                   related bank clearing accounts no                                  for deposits into
                   more than two business                                             the accounts held
                                                                                      by it.
</TABLE>

                                       S-1

<PAGE>

<TABLE>
<CAPTION>
                                                          HOME LOAN
                                                          SERVICES,       LASALLE
REGULATION AB                                                INC.           BANK            ADDITIONAL
REFERENCE                  SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
----------------   ----------------------------------   -------------   -----------   ---------------------
<S>                <C>                                  <C>             <C>           <C>
                   days following receipt, or such
                   other number of days specified in
                   the transaction agreements.

1122(d)(2)(ii)     Disbursements made via wire                X              X        Servicer disburses
                   transfer on behalf of an obligor                                   funds to trustee.
                   or to an investor are made only by                                 Trustee disburses
                   authorized personnel.                                              funds to
                                                                                      certificateholders.

1122(d)(2)(iii)    Advances of funds or guarantees            X
                   regarding collections, cash flows
                   or distributions, and any interest
                   or other fees charged for such
                   advances, are made, reviewed and
                   approved as specified in the
                   transaction agreements.

1122(d)(2)(iv)     The related accounts for the               X              X        Servicer needs to
                   transaction, such as cash reserve                                  provide only if it
                   accounts or accounts established                                   is deemed that the
                   as a form of over                                                  related collection
                   collateralization, are separately                                  account is subject
                   maintained (e.g., with respect to                                  to this criteria.
                   commingling of cash) as set forth
                   in the transaction agreements.

1122(d)(2)(v)      Each custodial account is                  X              X
                   maintained at a federally insured
                   depository institution as set
                   forth in the transaction
                   agreements. For purposes of this
                   criterion, "federally insured
                   depository institution" with
                   respect to a foreign financial
                   institution means a foreign
                   financial institution that meets
                   the requirements of Rule
                   13k-1(b)(1) of the Securities
                   Exchange Act.

1122(d)(2)(vi)     Unissued checks are safeguarded so         X              X
                   as to prevent unauthorized access.

1122(d)(2)(vii)    Reconciliations are prepared on a          X              X
                   monthly basis for all asset-backed
                   securities related bank accounts,
                   including custodial accounts and
                   related bank clearing accounts.
                   These reconciliations are (A)
                   mathematically accurate; (B)
                   prepared within 30 calendar days
                   after the bank statement cutoff
                   date, or such other number of days
                   specified in the transaction
                   agreements; (C) reviewed and
                   approved by someone other than the
                   person who prepared the
                   reconciliation; and (D) contain
                   explanations for reconciling
                   items. These reconciling items are
                   resolved within 90 calendar days
                   of their original identification,
                   or such other number of days
                   specified in the transaction
                   agreements.

                   INVESTOR REMITTANCES AND REPORTING
</TABLE>

                                       S-2

<PAGE>

<TABLE>
<CAPTION>
                                                          HOME LOAN
                                                          SERVICES,       LASALLE
REGULATION AB                                                INC.           BANK            ADDITIONAL
REFERENCE                  SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
----------------   ----------------------------------   -------------   -----------   ---------------------
<S>                <C>                                  <C>             <C>           <C>
1122(d)(3)(i)      Reports to investors, including        (A), (B) &         X
                   those to be filed with the              (D) ONLY
                   Commission, are maintained in
                   accordance with the transaction
                   agreements and applicable
                   Commission requirements.
                   Specifically, such reports (A) are
                   prepared in accordance with
                   timeframes and other terms set
                   forth in the transaction
                   agreements; (B) provide
                   information calculated in
                   accordance with the terms
                   specified in the transaction
                   agreements; (C) are filed with the
                   Commission as required by its
                   rules and regulations; and (D)
                   agree with investors' or the
                   trustee's records as to the total
                   unpaid principal balance and
                   number of Pool Assets serviced by
                   the Servicer.

1122(d)(3)(ii)     Amounts due to investors are               X              X        Servicer remits
                   allocated and remitted in                                          cash and loan level
                   accordance with timeframes,                                        data to Trustee
                   distribution priority and other                                    based on timelines
                   terms set forth in the transaction                                 established in the
                   agreements.                                                        Pooling and
                                                                                      Servicing
                                                                                      Agreement.  The
                                                                                      Trustee is
                                                                                      responsible for the
                                                                                      allocation of funds
                                                                                      to
                                                                                      Certificateholders
                                                                                      using the
                                                                                      appropriate
                                                                                      distribution
                                                                                      priority as
                                                                                      established by the
                                                                                      Pooling and
                                                                                      Servicing Agreement.

1122(d)(3)(iii)    Disbursements made to an investor          X              X        Trustee disburses
                   are posted within two business                                     funds to
                   days to the Servicer's investor                                    Certificateholders.
                   records, or such other number of
                   days specified in the transaction
                   agreements.

1122(d)(3)(iv)     Amounts remitted to investors per          X              X        Servicer remits
                   the investor reports agree with                                    funds and provides
                   cancelled checks, or other form of                                 certain investor
                   payment, or custodial bank                                         reports to Trustee
                   statements.                                                        within guidelines
                                                                                      and timeframes
                                                                                      established in
                                                                                      Pooling and
                                                                                      Servicing
                                                                                      Agreement.
                                                                                      Trustee disburses
                                                                                      funds to
                                                                                      certificateholders.

                   POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on pool             X              X        Servicer shall not
                   assets is maintained as required                                   attest to
                   by the transaction agreements or                                   performance of
                   related pool                                                       obligations of the

</TABLE>

                                       S-3

<PAGE>

<TABLE>
<CAPTION>
                                                          HOME LOAN
                                                          SERVICES,       LASALLE
REGULATION AB                                                INC.           BANK            ADDITIONAL
REFERENCE                  SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
----------------   ----------------------------------   -------------   -----------   ---------------------
<S>                <C>                                  <C>             <C>           <C>
                   asset documents.                                                   Custodian under the
                                                                                      transaction
                                                                                      agreements.

1122(d)(4)(ii)     Pool assets and related documents          X              X        Custodian
                   are safeguarded as required by the                                 responsibility with
                   transaction agreements.                                            respect to the
                                                                                      Mortgage Files

1122(d)(4)(iii)    Any additions, removals or                 X              X        Trustee shall only
                   substitutions to the asset pool                                    review, not
                   are made, reviewed and approved in                                 approve, such
                   accordance with any conditions or                                  additions, removals
                   requirements in the transaction                                    or substitutions in
                   agreements.                                                        accordance with the
                                                                                      transaction
                                                                                      agreements.

1122(d)(4)(iv)     Payments on pool assets, including         X
                   any payoffs, made in accordance
                   with the related pool asset
                   documents are posted to the
                   Servicer's obligor records
                   maintained no more than two
                   business days after receipt, or
                   such other number of days
                   specified in the transaction
                   agreements, and allocated to
                   principal, interest or other items
                   (e.g., escrow) in accordance with
                   the related pool asset documents.

1122(d)(4)(v)      The Servicer's records regarding           X
                   the pool assets agree with the
                   Servicer's records with respect to
                   an obligor's unpaid principal
                   balance.

1122(d)(4)(vi)     Changes with respect to the terms          X
                   or status of an obligor's pool
                   assets (e.g., loan modifications
                   or re-agings) are made, reviewed
                   and approved by authorized
                   personnel in accordance with the
                   transaction agreements and related
                   pool asset documents.

1122(d)(4)(vii)    Loss mitigation or recovery                X
                   actions (e.g., forbearance plans,
                   modifications and deeds in lieu of
                   foreclosure, foreclosures and
                   repossessions, as applicable) are
                   initiated, conducted and concluded
                   in accordance with the timeframes
                   or other requirements established
                   by the transaction agreements.

1122(d)(4)(viii)   Records documenting collection             X
                   efforts are maintained during the
                   period a pool asset is delinquent
                   in accordance with the transaction
</TABLE>

                                       S-4

<PAGE>

<TABLE>
<CAPTION>
                                                          HOME LOAN
                                                          SERVICES,       LASALLE
REGULATION AB                                                INC.           BANK            ADDITIONAL
REFERENCE                  SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
----------------   ----------------------------------   -------------   -----------   ---------------------
<S>                <C>                                  <C>             <C>           <C>
                   agreements. Such records are
                   maintained on at least a monthly
                   basis, or such other period
                   specified in the transaction
                   agreements, and describe the
                   entity's activities in monitoring
                   delinquent pool assets including,
                   for example, phone calls, letters
                   and payment rescheduling plans in
                   cases where delinquency is deemed
                   temporary (e.g., illness or
                   unemployment).

1122(d)(4)(ix)     Adjustments to interest rates or           X
                   rates of return for pool assets
                   with variable rates are computed
                   based on the related pool asset
                   documents.

1122(d)(4)(x)      Regarding any funds held in trust          X
                   for an obligor (such as escrow
                   accounts): (A) such funds are
                   analyzed, in accordance with the
                   obligor's pool asset documents, on
                   at least an annual basis, or such
                   other period specified in the
                   transaction agreements; (B)
                   interest on such funds is paid, or
                   credited, to obligors in
                   accordance with applicable pool
                   asset documents and state laws;
                   and (C) such funds are returned to
                   the obligor within 30 calendar
                   days of full repayment of the
                   related pool assets, or such other
                   number of days specified in the
                   transaction agreements.

1122(d)(4)(xi)     Payments made on behalf of an              X                       Servicing function
                   obligor (such as tax or insurance                                  participant
                   payments) are made on or before                                    responsibility
                   the related penalty or expiration
                   dates, as indicated on the
                   appropriate bills or notices for
                   such payments, provided that such
                   support has been received by the
                   servicer at least 30 calendar days
                   prior to these dates, or such
                   other number of days specified in
                   the transaction agreements.

1122(d)(4)(xii)    Any late payment penalties in              X                       Servicing function
                   connection with any payment to be                                  participant
                   made on behalf of an obligor are                                   responsibility
                   paid from the Servicer's funds and
                   not charged to the obligor, unless
                   the late payment was due to the
                   obligor's error or omission.

1122(d)(4)(xiii)   Disbursements made on behalf of an         X
                   obligor are posted within two
                   business days to the obligor's
                   records maintained by the
                   servicer, or such other number of
                   days specified in the transaction
                   agreements.

1122(d)(4)(xiv)    Delinquencies, charge-offs and             X
</TABLE>

                                       S-5

<PAGE>

<TABLE>
<CAPTION>
                                                          HOME LOAN
                                                          SERVICES,       LASALLE
REGULATION AB                                                INC.           BANK            ADDITIONAL
REFERENCE                  SERVICING CRITERIA             (SERVICER)     (TRUSTEE)         INFORMATION
----------------   ----------------------------------   -------------   -----------   ---------------------
<S>                <C>                                  <C>             <C>           <C>
                   uncollectible accounts are
                   recognized and recorded in
                   accordance with the transaction
                   agreements.

1122(d)(4)(xv)     Any external enhancement or other                         X
                   support, identified in Item
                   1114(a)(1) through (3) or Item
                   1115 of Regulation AB, is
                   maintained as set forth in the
                   transaction agreements.
</TABLE>

                                       S-6
<PAGE>

                                    EXHIBIT T

                      FORM OF SARBANES-OXLEY CERTIFICATIONS

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Home Loan Services, Inc.
150 Allegheny Center Mall
Pittsburgh, Pennsylvania 15212

     Re: Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-5,
         Mortgage Loan Asset-Backed Certificates

     I, [identify the certifying individual], certify that:

     1. I have reviewed the report on Form 10-K and all reports on Form 10-D
required to be filed in respect of the period covered by this report on Form
10-K of [identify the issuing entity] (the "Exchange Act periodic reports");

     2. Based on my knowledge, the Exchange Act periodic reports, taken as a
whole, do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

     3. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act periodic reports;

     4. [I am responsible for reviewing the activities performed by the
servicer(s) and based on my knowledge and the compliance review(s) conducted in
preparing the servicer compliance statement(s) required in this report under
Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic
reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the
servicing agreement(s); and]

     5. All of the reports on assessment of compliance with servicing criteria
for ABS and their related attestation reports on assessment of compliance with
servicing criteria for asset-backed securities required to be included in this
report in accordance with Item 1122 of Regulation AB and Exchange Act Rules
13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form 10-K.

     [In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties [name of
servicer, subservicer, co-servicer, depositor or trustee].]

                                      T-1

<PAGE>

Date:
      --------------------------

--------------------------------
[Signature]
[Title]

                                      T-2

<PAGE>

                                    EXHIBIT U

                   FORM OF ITEM 1123 CERTIFICATION OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street
Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch First
           Franklin Mortgage Loan Trust, Series 2007-5

Re: Pooling and Servicing Agreement (the "Agreement"), dated as of September 1,
    2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, Home Loan
    Services, Inc., as servicer, and LaSalle Bank National Association, as
    trustee, relating to Merrill Lynch First Franklin Mortgage Loan Trust,
    Series 2007-5, Mortgage Loan Asset-Backed Certificates

I, [identify name of certifying individual], [title of certifying individual] of
Home Loan Services, Inc. (the "Servicer"), hereby certify that:

     (1) A review of the activities of the Servicer during the preceding
calendar year and of the performance of the Servicer under the Agreement has
been made under my supervision; and

     (2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the Agreement in all material respects
throughout such year or a portion thereof[, or, if there has been a failure to
fulfill any such obligation in any material respect, I have specified below each
such failure known to me and the nature and status thereof].

Date:

Home Loan Services, Inc.,
as Servicer

By:
Name:
Title:

                                      U-1

<PAGE>

                                    EXHIBIT V

                           FORM OF DELINQUENCY REPORT

STANDARD FILE LAYOUT - DELINQUENCY REPORTING

<TABLE>
<CAPTION>
      (1) COLUMN/HEADER NAME                             (2) DESCRIPTION                       (3) DECIMAL    (4) FORMAT COMMENT
      ----------------------       ----------------------------------------------------------  -----------  ----------------------
<S>                                <C>                                                         <C>          <C>
(5)   SERVICER_LOAN_NBR            (6)   A unique number assigned to a loan by the             (7)          (8)
                                         Servicer. This may be different than the
                                         LOAN_NBR
(9)   LOAN_NBR                     (10)  A unique identifier assigned to each loan by the      (11)         (12)
                                         originator.
(13)  CLIENT_NBR                   (14)  Servicer Client Number                                (15)         (16)
(17)  SERV_INVESTOR_NBR            (18)  Contains a unique number as assigned by an external   (19)         (20)
                                         servicer to identify a group of loans in
                                         their system.
(21)  BORROWER_FIRST_NAME          (22)  First Name of the Borrower.                           (23)         (24)
(25)  BORROWER_LAST_NAME           (26)  Last name of the borrower.                            (27)         (28)
(29)  PROP_ADDRESS                 (30)  Street Name and Number of Property                    (31)         (32)
(33)  PROP_STATE                   (34)  The state where the property located.                 (35)         (36)
(37)  PROP_ZIP                     (38)  Zip code where the property is located.               (39)         (40)
(41)  BORR_NEXT_PAY_DUE_DATE       (42)  The date that the borrower's next payment is due to   (43)         (44)  MM/DD/YYYY
                                         the servicer at the end of processing
                                         cycle, as reported by Servicer.
(45)  LOAN_TYPE                    (46)  Loan Type (i.e. FHA, VA, Conv)                        (47)         (48)
(49)  BANKRUPTCY_FILED_DATE        (50)  The date a particular bankruptcy claim was filed.     (51)         (52)  MM/DD/YYYY
(53)  BANKRUPTCY_CHAPTER_CODE      (54)  The chapter under which the bankruptcy was filed.     (55)         (56)
(57)  BANKRUPTCY_CASE_NBR          (58)  The case number assigned by the court to the          (59)         (60)
                                         bankruptcy filing.
</TABLE>

                                       V-1

<PAGE>

<TABLE>
<S>                                <C>                                                         <C>          <C>
(61)  POST_PETITION_DUE_DATE       (62)  The payment due date once the bankruptcy has been     (63)         (64)  MM/DD/YYYY
                                         approved by the courts
(65)  BANKRUPTCY_DCHRG_DISM_DATE   (66)  The Date The Loan Is Removed From Bankruptcy.         (67)         (68)  MM/DD/YYYY
                                         Either by Dismissal, Discharged and/or a
                                         Motion For Relief Was Granted.
(69)  LOSS_MIT_APPR_DATE           (70)  The Date The Loss Mitigation Was Approved By The      (71)         (72)  MM/DD/YYYY
                                         Servicer
(73)  LOSS_MIT_TYPE                (74)  The Type Of Loss Mitigation Approved For A Loan       (75)         (76)
                                         Such As;
(77)  LOSS_MIT_EST_COMP_DATE       (78)  The Date The Loss Mitigation /Plan Is Scheduled To    (79)         (80)  MM/DD/YYYY
                                         End/Close
(81)  LOSS_MIT_ACT_COMP_DATE       (82)  The Date The Loss Mitigation Is Actually Completed    (83)         (84)  MM/DD/YYYY
(85)  FRCLSR_APPROVED_DATE         (86)  The date DA Admin sends a letter to the servicer      (87)         (88)  MM/DD/YYYY
                                         with instructions to begin foreclosure
                                         proceedings.
(89)  ATTORNEY_REFERRAL_DATE       (90)  Date File Was Referred To Attorney to Pursue          (91)         (92)  MM/DD/YYYY
                                         Foreclosure
(93)  FIRST_LEGAL_DATE             (94)  Notice of 1st legal filed by an Attorney in a         (95)         (96)  MM/DD/YYYY
                                         Foreclosure Action
(97)  FRCLSR_SALE_EXPECTED_DATE    (98)  The date by which a foreclosure sale is expected to   (99)         (100) MM/DD/YYYY
                                         occur.
(101) FRCLSR_SALE_DATE             (102) The actual date of the foreclosure sale.              (103)        (104) MM/DD/YYYY
(105) EVICTION_START_DATE          (106) The date the servicer initiates eviction of the       (107)        (108) MM/DD/YYYY
                                         borrower.
(109) EVICTION_COMPLETED_DATE      (110) The date the court revokes legal possession of the    (111)        (112) MM/DD/YYYY
                                         property from the borrower.
(113) LIST_PRICE                   (114) The price at which an REO property is marketed.       (115)2       (116) No commas(,) or
                                                                                                                  dollar signs ($)
</TABLE>

                                      V-2

<PAGE>

<TABLE>
<S>                                <C>                                                         <C>          <C>
(117) LIST_DATE                    (118) The date an REO property is listed at a particular    (119)        (120) MM/DD/YYYY
                                         price.
(121) OFFER_AMT                    (122) The dollar value of an offer for an REO property.     (123)2       (124) No commas(,) or
                                                                                                                  dollar signs ($)
(125) OFFER_DATE_TIME              (126) The date an offer is received by DA Admin or by the   (127)        (128) MM/DD/YYYY
                                         Servicer.
(129) REO_CLOSING_DATE             (130) The date the REO sale of the property is scheduled    (131)        (132) MM/DD/YYYY
                                         to close.
(133) REO_ACTUAL_CLOSING_DATE      (134) Actual Date Of REO Sale                               (135)        (136) MM/DD/YYYY
(137) OCCUPANT_CODE                (138) Classification of how the property is occupied.       (139)        (140)
(141) PROP_CONDITION_CODE          (142) A code that indicates the condition of the property.  (143)        (144)
(145) PROP_INSPECTION_DATE         (146) The date a property inspection is performed.          (147)        (148) MM/DD/YYYY
(149) APPRAISAL_DATE               (150) The date the appraisal was done.                      (151)        (152) MM/DD/YYYY
(153) CURR_PROP_VAL                (154) The current "as is" value of the property based on    (155)2       (156)
                                         brokers price opinion or appraisal.
(157) IF APPLICABLE:               (158)                                                       (159)        (160)
(161) DELINQ_STATUS_CODE           (162) FNMA Code Describing Status of Loan                   (163)        (164)
(165) DELINQ_REASON_CODE           (166) The circumstances which caused a borrower to stop     (167)        (168)
                                         paying on a loan.  Code indicates the
                                         reason why the loan is in default for this
                                         cycle.
(169) MI_CLAIM_FILED_DATE          (170) Date Mortgage Insurance Claim Was Filed With          (171)        (172) MM/DD/YYYY
                                         Mortgage Insurance Company.
(173) MI_CLAIM_AMT                 (174) Amount of Mortgage Insurance Claim Filed              (175)        (176) No commas(,) or
                                                                                                                  dollar signs ($)
</TABLE>

                                       V-3

<PAGE>

<TABLE>
<S>                                <C>                                                         <C>          <C>
(177) MI_CLAIM_PAID_DATE           (178) Date Mortgage Insurance Company Disbursed Claim       (179)        (180) MM/DD/YYYY
                                         Payment
(181) MI_CLAIM_AMT_PAID            (182) Amount Mortgage Insurance Company Paid On Claim       (183)2       (184) No commas(,) or
                                                                                                                  dollar signs ($)
(185) POOL_CLAIM_FILED_DATE        (186) Date Claim Was Filed With Pool Insurance Company      (187)        (188) MM/DD/YYYY
(189) POOL_CLAIM_AMT               (190) Amount of Claim Filed With Pool Insurance Company     (191)2       (192) No commas(,) or
                                                                                                                  dollar signs ($)
(193) POOL_CLAIM_PAID_DATE         (194) Date Claim Was Settled and The Check Was Issued By    (195)        (196) MM/DD/YYYY
                                         The Pool Insurer
(197) POOL_CLAIM_AMT_PAID          (198) Amount Paid On Claim By Pool Insurance Company        (199)2       (200) No commas(,) or
                                                                                                                  dollar signs ($)
(201) FHA_PART_A_CLAIM_FILED_DATE  (202) Date FHA Part A Claim Was Filed With HUD              (203)        (204) MM/DD/YYYY
(205) FHA_PART_A_CLAIM_AMT         (206) Amount of FHA Part A Claim Filed                      (207)2       (208) No commas(,) or
                                                                                                                  dollar signs ($)
(209) FHA_PART_A_CLAIM_PAID_DATE   (210) Date HUD Disbursed Part A Claim Payment               (211)        (212) MM/DD/YYYY
(213) FHA_PART_A_CLAIM_PAID_AMT    (214) Amount HUD Paid on Part A Claim                       (215)2       (216) No commas(,) or
                                                                                                                  dollar signs ($)
(217) FHA_PART_B_CLAIM_FILED_DATE  (218) Date FHA Part B Claim Was Filed With HUD              (219)        (220) MM/DD/YYYY
(221) FHA_PART_B_CLAIM_AMT         (222) Amount of FHA Part B Claim Filed                      (223)2       (224) No commas(,) or
                                                                                                                  dollar signs ($)
(225) FHA_PART_B_CLAIM_PAID_DATE   (226) Date HUD Disbursed Part B Claim Payment               (227)        (228) MM/DD/YYYY
(229) FHA_PART_B_CLAIM_PAID_AMT    (230) Amount HUD Paid on Part B Claim                       (231)2       (232) No commas(,) or
                                                                                                                  dollar signs ($)
</TABLE>

                                       V-4

<PAGE>

<TABLE>
<S>                                <C>                                                         <C>          <C>
(233) VA_CLAIM_FILED_DATE          (234) Date VA Claim Was Filed With the Veterans Admin       (235)        (236) MM/DD/YYYY
(237) VA_CLAIM_PAID_DATE           (238) Date Veterans Admin.  Disbursed VA Claim Payment      (239)        (240) MM/DD/YYYY
(241) VA_CLAIM_PAID_AMT            (242) Amount Veterans Admin.  Paid on VA Claim              (243)2       (244) No commas(,) or
                                                                                                                  dollar signs ($)
</TABLE>

                                       V-5
<PAGE>

STANDARD FILE CODES - DELINQUENCY REPORTING

The LOSS MIT TYPE field should show the approved Loss Mitigation Code as
follows:
ASUM - Approved Assumption
BAP - Borrower Assistance Program
CO - Charge Off
DIL - Deed-in-Lieu
FFA - Formal Forbearance Agreement
MOD - Loan Modification
PRE - Pre-Sale
SS - Short Sale
MISC - Anything else approved by the PMI or Pool Insurer

NOTE: LaSalle Bank National Association will accept alternative Loss Mitigation
Types to those above, provided that they are consistent with industry standards.
If Loss Mitigation Types other than those above are used, the Servicer must
supply LaSalle Bank National Association with a description of each of the Loss
Mitigation Types prior to sending the file.

The OCCUPANT CODE field should show the current status of the property code as
follows:
Mortgagor
Tenant
Unknown
Vacant

The PROPERTY CONDITION field should show the last reported condition of the
property as follows:
Damaged
Excellent
Fair
Gone
Good
Poor
Special Hazard
Unknown

                                       V-6

<PAGE>

                                    EXHIBIT W

                         MOODY'S MORTGAGE LOAN DATA FILE

<TABLE>
<CAPTION>
Field Name   Start   Width        Format
----------   -----   -----   ----------------
<S>          <C>     <C>     <C>                <C>
LOAN NUM        1       10   00
ALT NUM        11       11   00
NEXT DUE       22        8   yyyymmdd
PMT            30       12   00.00
RTE            42       10   eg .075
BEG BAL        52       12   00.00
SCHED PRIN     64       12   00.00
CURTAIL        76       12   00.00
LIQUID         88       12   00.00
END BAL       100       12   00.00
SCHED INT     112       12   00.00
NET INT       124       12   00.00
NEG AM        136       12   00.00
NEXT RATE     160       10   eg .075
PREPAY DAT    170        8   yyyymmdd
STATUS        178        4   1=Fc 2=Bk, 3=REO
DEALID        182       10
LOSS          192       12   00.00
MOD           204        1   Y                  (Modification)
</TABLE>

                                       W-1

<PAGE>

                                   SCHEDULE X

<TABLE>
<CAPTION>
                     Item on Form 8-K                        Party Responsible
----------------------------------------------------------   -----------------
<S>                                                          <C>
*Item 1.01- Entry into a Material Definitive Agreement       All parties
*Item 1.02- Termination of a Material Definitive Agreement   All parties
Item 1.03- Bankruptcy or Receivership                        Depositor
Item 2.04- Triggering Events that Accelerate or Increase a   Depositor
Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement
*Item 3.03- Material Modification to Rights of Security      Trustee
Holders
Item 5.03- Amendments of Articles of Incorporation or        Depositor
Bylaws; Change of Fiscal Year
Item 6.01- ABS Informational and Computational Material      Depositor
*Item 6.02- Change of Servicer or Trustee                    Servicer/Trustee
*Item 6.03- Change in Credit Enhancement or External         Depositor/Trustee
Support
*Item 6.04- Failure to Make a Required Distribution          Trustee
Item 6.05- Securities Act Updating Disclosure                Depositor
Item 7.01- Reg FD Disclosure                                 Depositor
Item 8.01                                                    Depositor
Item 9.01                                                    Depositor
</TABLE>

                                       X-1

<PAGE>

                                   SCHEDULE Y

<TABLE>
<CAPTION>
                  Item on Form 10-D                                      Party Responsible
-----------------------------------------------------   ---------------------------------------------------
<S>                                                     <C>
Item 1: Distribution and Pool Performance Information   Trustee and Servicer (with respect to underlying
Plus any information required by 1121 which is NOT      Mortgage Loan data)
included on the monthly statement to
Certificateholders                                      Servicer and Trustee (to the extent required by
                                                        Regulation AB)
Item 2: Legal Proceedings per Item 1117 of              All parties to the Pooling and Servicing Agreement
Regulation AB                                           (as to themselves), the Depositor/Trustee/Servicer
                                                        (to the extent known) as to the Issuing entity, the
                                                        Sponsor, 1106(b) originator, any 1100(d)(1) party
Item 3:  Sale of Securities and Use of Proceeds         Depositor
Item 4:  Defaults Upon Senior Securities                Trustee
Item 5:  Submission of Matters to a Vote of Security    Trustee
Holders
Item 6:  Significant Obligors of Pool Assets            Depositor/Sponsor/Mortgage Loan Seller/ Servicer
Item 7:  Significant Enhancement Provider Information   Depositor/Sponsor
Item 8:  Other Information                              All parties to the Pooling and Servicing Agreement
                                                        (as to themselves) responsible for disclosure items
                                                        on Form 8-K
Item 9:  Exhibits                                       Trustee
</TABLE>

                                       Y-1

<PAGE>

                                   SCHEDULE Z

<TABLE>
<CAPTION>
                    Item on Form 10-K                                          Party Responsible
---------------------------------------------------------   ------------------------------------------------------
<S>                                                         <C>
Item 1B: Unresolved Staff Comments                          Depositor
*Item 9B:  Other Information                                Trustee and any other party responsible for disclosure
                                                            items on Form 8-K
*Item 15:  Exhibits, Financial Statement Schedules          Trustee/Servicer/subservicers/Depositor
*Additional Item:                                           All parties to the Pooling and Servicing Agreement (as
                                                            to themselves), the Depositor/Trustee/Servicer (to the
Disclosure per Item 1117 of Regulation AB                   extent known) as to the Issuing Entity, the Sponsor,
                                                            1106(b) originator, any 1100(d)(1) party
*Additional Item:                                           All parties to the Pooling and Servicing Agreement,
Disclosure per Item 1119 of Regulation AB                   the Sponsor, originator, significant obligor,
                                                            enhancement or support provider
Additional Item:                                            Depositor/Sponsor/Mortgage Loan Seller/Servicer
Disclosure per Item 1112(b) of Regulation AB
Additional Item:                                            Depositor/Sponsor
Disclosure per Items 1114(b) and 1115(b) of Regulation AB
</TABLE>

                                       Z-1

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