Document:

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                                                                     EXHIBIT 4.1

                                                                       EXECUTION

                                 TRUST AGREEMENT

                                      among

                   AEGIS ASSET BACKED SECURITIES CORPORATION,
                                  as Depositor,

                            WILMINGTON TRUST COMPANY,
                                as Owner Trustee

                                       and

                             WELLS FARGO BANK, N.A.,
                                as Administrator

                           Dated as of October 1, 2006

                   AEGIS ASSET BACKED SECURITIES TRUST 2006-1
                              Mortgage Backed Notes
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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
                             ARTICLE I DEFINITIONS

Section 1.01.  Definitions ..............................................     1
Section 1.02.  Other Definitional Provisions ............................     5

                             ARTICLE II ORGANIZATION

Section 2.01.  Name .....................................................     5
Section 2.02.  Office ...................................................     6
Section 2.03.  Purpose and Powers .......................................     6
Section 2.04.  Appointment of the Owner Trustee .........................     6
Section 2.05.  Initial Capital Contribution; Declaration of Trust .......     6
Section 2.06.  Initial Beneficiary ......................................     7
Section 2.07.  Liability of the Holder of the Ownership Certificates ....     7
Section 2.08.  Situs of Trust ...........................................     7
Section 2.09.  Title to Trust Property ..................................     7
Section 2.10.  Representations and Warranties of the Depositor ..........     8
Section 2.11.  Tax Treatment ............................................     9
Section 2.12.  Investment Company .......................................     9

        ARTICLE III THE OWNERSHIP CERTIFICATES AND TRANSFERS OF INTERESTS

Section 3.01.  The Ownership Certificates ...............................     9
Section 3.02.  Execution, Authentication and Delivery of the Ownership
                  Certificates ..........................................    10
Section 3.03.  Registration of and Limitations on Transfers and Exchanges
                  of the Ownership Certificates .........................    10
Section 3.04.  Lost, Stolen, Mutilated or Destroyed Ownership
                  Certificates ..........................................    13
Section 3.05.  Persons Deemed Certificateholders ........................    13
Section 3.06.  Access to List of Certificateholders' Names and Addresses.    13
Section 3.07.  [Reserved] ...............................................    13
Section 3.08.  Maintenance of Office or Agency ..........................    13
Section 3.09.  Certificate Paying Agent .................................    14

              ARTICLE IV APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

Section 4.01.  Certificate Distribution Account .........................    15
Section 4.02.  Application of Trust Funds ...............................    15
Section 4.03.  Method of Payment ........................................    15
Section 4.04.  [Reserved] ...............................................    16
Section 4.05.  Segregation of Moneys; No Interest .......................    16

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

Section 5.01.  General Authority ........................................    16
Section 5.02.  General Duties ...........................................    16
Section 5.03.  Action Upon Instruction ..................................    16
Section 5.04.  No Duties Except as Specified under Specified Documents or
                  in Instructions .......................................    17
Section 5.05.  Restrictions .............................................    18
Section 5.06.  Prior Notice to the Holder with Respect to Certain
                  Matters ...............................................    18
Section 5.07.  Action by the Holder with Respect to Bankruptcy ..........    20
Section 5.08.  Restrictions on the Holder's Power .......................    20

                     ARTICLE VI CONCERNING THE OWNER TRUSTEE

Section 6.01.  Acceptance of Trusts and Duties ..........................    20
Section 6.02.  Furnishing of Documents ..................................    21
Section 6.03.  Books and Records ........................................    21
Section 6.04.  Representations and Warranties ...........................    22
Section 6.05.  Reliance; Advice of Counsel ..............................    23
Section 6.06.  Not Acting in Individual Capacity ........................    24
Section 6.07.  Owner Trustee Not Liable for Ownership Certificates or
                  Collateral ............................................    24
Section 6.08.  Owner Trustee May Own Ownership Certificates and Notes ...    24
Section 6.09.  Licenses .................................................    25
Section 6.10.  Doing Business in Other Jurisdictions ....................    25
Section 6.11.  Reporting Requirements of the Commission .................    25

                  ARTICLE VII INDEMNIFICATION AND COMPENSATION

Section 7.01.  Trust Expenses ...........................................    26
Section 7.02.  Indemnification ..........................................    27
Section 7.03.  Compensation .............................................    27
Section 7.04.  Lien on Trust Estate .....................................    28

                      ARTICLE VIII TERMINATION OF AGREEMENT

Section 8.01.  Termination of Agreement .................................    28

        ARTICLE IX SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 9.01.  Eligibility Requirements for Owner Trustee ...............    29
Section 9.02.  Resignation or Removal of Owner Trustee ..................    29
Section 9.03.  Successor Owner Trustee ..................................    30
Section 9.04.  Merger or Consolidation of Owner Trustee .................    30
Section 9.05.  Appointment of Co-Trustee or Separate Trustee ............    30

                             ARTICLE X MISCELLANEOUS

Section 10.01. Supplements and Amendments ...............................    32

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Section 10.02. No Legal Title to Trust Estate in Holder .................    33
Section 10.03. Pledge of Collateral by Owner Trustee is Binding .........    33
Section 10.04. Limitations on Rights of Others ..........................    33
Section 10.05. Notices ..................................................    33
Section 10.06. Severability .............................................    34
Section 10.07. Separate Counterparts ....................................    34
Section 10.08. Successors and Assigns ...................................    34
Section 10.09. Headings .................................................    34
Section 10.10. Governing Law ............................................    34
Section 10.11. No Petition ..............................................    34
Section 10.12. No Recourse ..............................................    35
Section 10.13. Reporting Requirements of the Commission and
                  Indemnification .......................................    35

                               ARTICLE XI OFFICERS

Section 11.01. Appointment of Officers ..................................    35
Section 11.02. Officers to Provide Information to the Owner Trustee .....    35

EXHIBITS:

Exhibit A-X   Form of Class X Ownership Certificate
Exhibit A-R   Form of Class R Ownership Certificate
Exhibit B     [Reserved]
Exhibit C     Form of Certificate of Trust
Exhibit D     Form of Rule 144A Investment Letter
Exhibit E     Owner Trustee Fee Letter Agreement
Exhibit F     Form of Representation and Warranty Regarding Transferee's Status
              as a REIT, Qualified REIT Subsidiary or Disregarded Entity
Exhibit G     Servicing Criteria to be Addressed in Assessment of Compliance
Exhibit H     Transaction Parties

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     This TRUST AGREEMENT dated as of October 1, 2006, is by and among AEGIS
ASSET BACKED SECURITIES CORPORATION, a Delaware corporation (the "Depositor"),
WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Owner Trustee (the
"Owner Trustee"), and WELLS FARGO BANK, N.A., a national banking association, as
Administrator (the "Administrator").

     WHEREAS, pursuant to the Transfer and Servicing Agreement entered into
simultaneously with this Trust Agreement, Depositor intends to sell, transfer
and assign to a Delaware statutory trust created hereunder certain Mortgage
Loans and related assets (collectively, the "Collateral"), which statutory trust
would then pledge such Collateral under an indenture in order to secure the
issuance of the Aegis Asset Backed Securities Trust 2006-1 Mortgage-Backed Notes
(the "Notes"), the net proceeds of which would be applied toward the purchase of
the Collateral.

     WHEREAS, the Depositor, the Owner Trustee and the Initial Holder intend
that the Trust be treated as a Qualified REIT Subsidiary for federal income tax
purposes.

     WHEREAS, the Depositor, the Owner Trustee and the Administrator desire to
enter into this Agreement in order to effect the foregoing.

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

                                    ARTICLE I
                                   DEFINITIONS

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

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

     Administrator: Wells Fargo Bank, N.A., or any successor in interest.

     Aegis: Aegis Mortgage Corporation, a Delaware corporation.

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

     Bank: Wilmington Trust Company in its individual capacity and not as Owner
Trustee under this Agreement.

     Certificate: Any Ownership Certificate issued pursuant to this Agreement.

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

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

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

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

     Certificateholder or Holder: The Person in whose name the Ownership
Certificates are registered in the Certificate Register.

     Class R Ownership Certificate: An equity Certificate substantially in the
form annexed hereto as Exhibit A-R, which, together with the Class X Ownership
Certificate, represents in the aggregate a 100% undivided beneficial ownership
interest in the trust.

     Class X Ownership Certificate: An equity Certificate substantially in the
form annexed hereto as Exhibit A-X which, together with the Class R Ownership
Certificate, represents in the aggregate a 100% undivided beneficial ownership
interest in the trust.

     Collateral: As defined in the Indenture.

     Corporate Trust Office: With respect to (i) the Owner Trustee, the
principal corporate trust office of the Owner Trustee located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001, or at such
other address in the State of Delaware as the Owner Trustee may designate by
notice to the Administrator and the Certificateholder, or the principal
corporate trust office of any successor Owner Trustee (the address (which shall
be in the State of Delaware) of which the successor owner trustee will notify
the Administrator and the

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Certificateholder); (ii) the Administrator, the principal corporate trust office
of the Administrator at which, at any particular time, its corporate trust
business shall be administered, which office at the date hereof for purposes of
transfers and exchanges and for presentment and surrender of the Ownership
Certificates and for payment thereof is located at Wells Fargo Bank, N.A., Sixth
Street and Marquette Avenue, Minneapolis, Minnesota 55479, Attention: Corporate
Trust Group (Aegis 2006-1), and for all other purposes is located at Wells Fargo
Bank, N.A., P.O. Box 98, Columbia, Maryland 21046, Attention: Corporate Trust
Group (Aegis 2006-1) (or for overnight deliveries, at 9062 Old Annapolis Road,
Columbia, Maryland 21045, Attention: Corporate Trust Group (Aegis 2006-1)); and
(iii) the Certificate Registrar, the principal office of the Certificate
Registrar at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Agreement is located
at the Corporate Trust Office of the Administrator, or at such other address as
the Certificate Registrar may designate from time to time by notice to the
Securityholders and the Trust, or the principal corporate trust office of any
successor Certificate Registrar at the address designated by such successor
Certificate Registrar by notice to the Securityholders and the Trust.

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

     Depositor: Aegis Asset Backed Securities Corporation, a Delaware
corporation.

     Disregarded Entity: An entity that is both (a) solely owned by a REIT or
Qualified REIT Subsidiary and (b) disregarded as an entity separate from its
owner within the meaning of Section 301.7701-2(c)(2) of the Treasury
Regulations.

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

     Indenture: The indenture dated as of October 1, 2006, among the Issuer, the
Administrator and the Indenture Trustee, as such may be amended or supplemented
from time to time.

     Indenture Trustee: Deutsche Bank National Trust Company, not in its
individual capacity but solely as Indenture Trustee, or any successor in
interest.

     Initial Holder: Aegis Equity Holding Corporation, or any successor in
interest.

     Liabilities: The meaning specified in Section 7.02.

     Master Servicer: Wells Fargo Bank, N.A., or any successor in interest.

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

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

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

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

     Owner Trustee: Wilmington Trust Company, a Delaware banking corporation,
and any successor in interest, not in its individual capacity, but solely as
owner trustee under the Trust Agreement.

     Ownership Certificates: Each of the Class X Ownership Certificate and the
Class R Ownership Certificate.

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

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

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

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

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

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

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

     Seller: Aegis REIT Corporation

     Single Certificate: An Ownership Certificate representing a 100% Percentage
Interest.

     Transfer and Servicing Agreement: The Transfer and Servicing Agreement
dated as of October 1, 2006, by and among the Trust, as Issuer, Aegis Asset
Backed Securities Corporation, as Depositor, Aegis REIT Corporation, as Seller,
Wells Fargo Bank, N.A., as Master Servicer and Administrator, Ocwen Loan
Servicing, LLC, as Servicer and Deutsche Bank National Trust Company, as
Indenture Trustee and Custodian, as such may be amended or supplemented from
time to time.

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     Trust: The trust established pursuant to this Agreement which shall carry
on its business operations under the name of "Aegis Asset Backed Securities
Trust 2006-1."

     Section 1.02. Other Definitional Provisions.

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

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

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

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

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

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

                                   ARTICLE II
                                  ORGANIZATION

     Section 2.01. Name. The trust established under this Agreement shall be
referred to as "Aegis Asset Backed Securities Trust 2006-1" in which name the
Owner Trustee and the Officers may conduct the activities contemplated hereby,
including the making and executing of contracts and other instruments on behalf
of the Trust and sue and be sued.

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

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

     (a) to issue one or more Classes of Notes from time to time pursuant to the
Indenture and the Ownership Certificates pursuant to this Agreement and to sell,
transfer and exchange such Notes and such Ownership Certificates;

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

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

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

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

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

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

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

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

     Section 2.05. Initial Capital Contribution; Declaration of Trust.

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<PAGE>

     (a) The Depositor hereby sells, assigns, transfers, conveys and sets over
to the Trust, as of the date hereof, the sum of $1. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the Closing Date, of the
foregoing contribution which shall constitute the initial corpus of the Trust
Estate and shall be deposited in the Certificate Distribution Account. The
Depositor shall pay organizational expenses of the Trust as they may arise or
shall, upon the request of the Owner Trustee, promptly reimburse the Owner
Trustee for any such expenses paid by the Owner Trustee.

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

     Section 2.06. Initial Beneficiary. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the issuance of
the Ownership Certificates, the Depositor shall be the sole beneficiary of the
Trust.

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

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

     Section 2.09. Title to Trust Property.

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     (a) Subject to the Indenture, title to all of the Trust Estate shall be
vested at all times in the Trust as a separate legal entity until this Agreement
terminates pursuant to Article VIII hereof; provided, however, that if the laws
of any jurisdiction require that title to any part of the Trust Estate be vested
in the trustee of the Trust, then title to that part of the Trust Estate shall
be deemed to be vested in the Owner Trustee or any co-trustee or separate
trustee, as the case may be, appointed pursuant to Article IX of this Agreement.

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

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

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

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

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

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

                                        8
<PAGE>

Depositor of any court or of any Federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Depositor or its properties.

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

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

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

     Section 2.11. Tax Treatment. The Depositor, the Owner Trustee and the
Initial Holder intend that the Trust be treated for federal income tax purposes
as a Qualified REIT Subsidiary. The Administrator will perform the calculation
of accrual of original issue discount and the amortization of premium on the
Securities.

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

                                   ARTICLE III
              THE OWNERSHIP CERTIFICATES AND TRANSFERS OF INTERESTS

     Section 3.01. The Ownership Certificates.

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

                                        9
<PAGE>

Certificateholder hereunder upon such Person's acceptance of an Ownership
Certificate duly registered in such Person's name pursuant to Section 3.03.

     (b) The Class R Ownership Certificate shall have an initial principal
balance of $100.00 and shall not bear interest. The Class R Ownership
Certificate shall represent the right to receive a distribution in reduction of
its principal balance pursuant to Section 4.02 hereof on the Payment Date that
coincides with the termination of the Trust pursuant to Article IX of the
Transfer and Servicing Agreement. The Class X Ownership Certificate shall not
have a principal balance or an interest rate but shall represent the right to
receive all amounts available for distribution pursuant to Section 4.02 hereof,
other than the amount distributable in respect of the Class R Ownership
Certificate.

     (c) The Class X Ownership Certificate and the Class R Ownership Certificate
shall not be transferable independently of one another and one Person must, at
all times, own both the Class X Ownership Certificate and the Class R Ownership
Certificate.

     Section 3.02. Execution, Authentication and Delivery of the Ownership
Certificates.

     Concurrently with the sale of the Collateral to the Trust pursuant to the
Transfer and Servicing Agreement, the Owner Trustee shall cause the Ownership
Certificates issued hereunder to be executed and authenticated on behalf of the
Trust and authenticated and delivered to the Initial Holder or upon the written
order of the Depositor, signed by its chairman of the board, its president or
any vice president, without further corporate action by the Depositor. The
Ownership Certificates shall not entitle a Certificateholder to any benefits
under this Agreement or be valid for any purpose unless there shall appear on
such Ownership Certificates a certificate of authentication substantially in the
form set forth in Exhibit A-X or Exhibit A-R hereto, as applicable, executed by
the Certificate Registrar, as the Owner Trustee's authenticating agent, by
manual signature; such authentication shall constitute conclusive evidence that
such Ownership Certificates shall have been duly authenticated and delivered
hereunder. An Ownership Certificate shall be dated the date of its
authentication.

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

                                       10
<PAGE>

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

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

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

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

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

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

                                       11
<PAGE>

such plan, which representation letter shall not be an expense of the Trust, the
Owner Trustee, the Administrator, the Certificate Registrar or the Depositor.

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

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

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

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

     The Trust shall cause each Certificate to contain a legend, substantially
in the form of the applicable legends provided in Exhibit A-X or Exhibit A-R
hereto, respectively, stating that transfer of such Certificate is subject to
certain restrictions and referring prospective purchasers of the Certificates to
this Section 3.03 with respect to such restrictions.

     Notwithstanding anything to the contrary herein, no transfer, pledge or
encumbrance of any Ownership Certificate shall be made to any Person unless the
Owner Trustee and the Certificate Registrar have received an Opinion of Counsel
(which shall not be an expense of the Owner Trustee or the Certificate
Registrar) to the effect that such transfer, pledge or encumbrance would not
have any adverse effect of the status of the Notes as debt for federal income
tax purposes and would not result in the Trust's becoming taxable for federal
income tax purposes.

     If any purported transferee shall become a Holder in violation of the
provisions of this Section, then upon receipt of written notice to the
Certificate Registrar and the Certificate Paying Agent that the registration of
transfer of the Ownership Certificates to such Holder was not in fact permitted
by this Section, then the transfer to that Holder shall be void ab initio and
the last preceding Holder that was and that continues to be eligible in
accordance with the provisions of this Section shall be restored to all rights
as Holder thereof retroactive to the date of such registration of transfer of
the Ownership Certificates. The Certificate Registrar shall be under no
liability to any Person for any registration of transfer of the Ownership
Certificates that is in fact not permitted by this Section, for making any
payment due on such Certificates to the Holder thereof or for taking any other
action with respect to such Holder under the provisions of this Agreement so
long as the transfer was registered upon receipt of the affidavit described in
the immediately preceding paragraph.

                                       12
<PAGE>

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

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

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

     Section 3.07. [Reserved]

     Section 3.08. Maintenance of Office or Agency. The Certificate Registrar on
behalf of the Trust, shall maintain an office or offices or agency or agencies
where the Ownership Certificates may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Owner Trustee in
respect of the Ownership Certificates and the Operative Documents may be served.
The Certificate Registrar shall give the Owner Trustee prompt notice, in
writing, of any such notice or demand. The Certificate Registrar initially
designates the Corporate Trust Office of the Administrator as its office for
such purposes. The Certificate Registrar shall give prompt written notice to the
Depositor, the Owner Trustee and the

                                       13
<PAGE>

Certificateholder of any change in the location of the Certificate Register or
any such office or agency.

     Section 3.09. Certificate Paying Agent.

     (a) The Owner Trustee may appoint, and hereby appoints, the Administrator
as Certificate Paying Agent under this Agreement. The Certificate Paying Agent
shall make distributions to the Holder from the Certificate Distribution Account
pursuant to Section 4.02 hereof and Section 4.1 of the Transfer and Servicing
Agreement and, upon request, shall report the amounts of such distributions to
the Owner Trustee. The Certificate Paying Agent shall have the revocable power
to withdraw funds from the Certificate Distribution Account for the purpose of
making the distributions referred to above. The Administrator hereby accepts
such appointment and further agrees that it will be bound by the provisions of
this Agreement and the Transfer and Servicing Agreement relating to the
Certificate Paying Agent and shall:

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

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

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

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

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

     (b) In the event that the Administrator shall no longer be the Certificate
Paying Agent hereunder, the Owner Trustee, with the consent of the Depositor,
shall appoint a successor to act as Certificate Paying Agent (which shall be a
bank or trust company). The Owner Trustee shall cause such successor Certificate
Paying Agent or any additional Certificate Paying Agent appointed by the Owner
Trustee to execute and deliver to the Owner Trustee an instrument in which such
successor Certificate Paying Agent or additional Certificate Paying Agent shall
agree with the Owner Trustee that as Certificate Paying Agent, such successor
Certificate Paying Agent or additional Certificate Paying Agent will hold all
sums, if any, held by it for payment in trust for the benefit of the Holder
entitled thereto until such sums shall be paid to such Holder. The Certificate
Paying Agent shall return all unclaimed funds to the Owner Trustee, and upon
removal of a Certificate Paying Agent, such Certificate Paying Agent shall also
return all funds in its possession to the Owner Trustee. The provisions of
Sections 5.03, 5.04, 6.01, 6.05, 6.07,

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<PAGE>

6.08, 7.01 and 7.02 shall apply to the Administrator also in its role as
Certificate Paying Agent for so long as the Administrator shall act as
Certificate Paying Agent and, to the extent applicable, to any other Certificate
Paying Agent appointed hereunder. Any reference in this Agreement to the
Certificate Paying Agent shall include any co-paying agent unless the context
requires otherwise.

                                   ARTICLE IV
                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

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

     The Certificate Distribution Account shall be subject to and established
and maintained in accordance with the applicable provisions of the Transfer and
Servicing Agreement and the Indenture, including, without limitation, the
provisions of Sections 3.5 and 4.1 of the Transfer and Servicing Agreement
regarding distributions from the Certificate Distribution Account.

     Section 4.02. Application of Trust Funds.

     (a) On each Payment Date, the Owner Trustee shall direct the Certificate
Paying Agent to distribute to the Holder, from amounts on deposit in the
Certificate Distribution Account, after payment of any amounts required to be
paid pursuant to Section 7.02, the distributions as provided in Section 4.1 of
the Transfer and Servicing Agreement with respect to such Payment Date, for
application pursuant to Section 3.01(b) of this Agreement. The Owner Trustee
hereby directs the Certificate Paying Agent to distribute on each Payment Date
to the Holder amounts on deposit in the Certificate Distribution Account in
accordance with Sections 3.5 and 4.1 of the Transfer and Servicing Agreement and
the Certificate Paying Agent hereby acknowledges such direction.

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

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

     Section 4.03. Method of Payment. Subject to Section 8.01(c), distributions
required to be made to the Holder on any Payment Date as provided in Section
4.02 shall be made to the Person who was the Holder 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

                                       15
<PAGE>

facilities therefor, if the Holder shall have provided to the Certificate
Registrar appropriate written instructions at least five Business Days prior to
such Payment Date or, if not, by check mailed to such Holder at the address of
such Holder appearing in the Certificate Register.

     Section 4.04. [Reserved]

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

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

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

     Section 5.02. General Duties.

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

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

     Section 5.03. Action Upon Instruction.

                                       16
<PAGE>

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

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

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

     Section 5.04. No Duties Except as Specified under Specified Documents or in
Instructions. The Owner Trustee shall not have any duty or obligation to manage,
make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee or the Issuer is a party, except as expressly
provided (i) in accordance with the powers granted to and the authority
conferred upon the Owner Trustee pursuant to this Agreement, and (ii) in
accordance with any document or instruction delivered to the Owner Trustee
pursuant to Section 5.03; and no implied duties or obligations shall be read
into this Agreement or any Operative Document against the Owner Trustee. The
Owner Trustee shall have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to the Trust
or to prepare or file any Securities and Exchange Commission filing for the
Trust or to record this Agreement or any Operative Document or to prepare or
file any tax return for the Trust. The Owner Trustee nevertheless agrees that it
will, at its own cost and expense, promptly take all action as may be necessary
to discharge any liens on any part of the Trust Estate that result from actions
by, or claims against the Bank that are not related to the ownership or the
administration of the Trust Estate.

                                       17
<PAGE>

     Section 5.05. Restrictions.

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

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

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

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

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

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

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

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

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

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

                                       18
<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       19
<PAGE>

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

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

     (q) The Owner Trustee shall not have the power, except upon the written
direction of the Holder, to (i) remove the Administrator under the
Administration Agreement pursuant to Section 9 thereof, (ii) appoint a successor
Administrator pursuant to Section 9 of the Administration Agreement, or (iii)
except as expressly provided in the Indenture, to sell the Collateral after the
termination of the Indenture. The Owner Trustee shall take the actions referred
to in the preceding sentence only upon written instructions signed and
authorized by the Holder.

     Section 5.07. Action by the Holder with Respect to Bankruptcy. The Owner
Trustee shall not have the power to commence or consent to a bankruptcy relating
to the Trust without the prior approval of the Holder and the delivery to the
Owner Trustee by the Holder of a certificate certifying that the Holder
reasonably believes that the Trust is insolvent. This paragraph shall survive
for one year and one day following termination of this Agreement. So long as the
Indenture remains in effect, the Holder shall not have the power to institute,
and shall not institute, any bankruptcy with respect to the Trust or direct the
Owner Trustee to take such action.

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

                                   ARTICLE VI
                          CONCERNING THE OWNER TRUSTEE

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

                                       20
<PAGE>

compensation received by the Bank in connection with any of the transactions
contemplated by this Agreement, any other Operative Documents or the Notes. In
particular, but not by way of limitation:

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

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

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

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

     (e) The Bank shall not be liable with respect to any action taken or
omitted to be taken by the Depositor, the Administrator, the Master Servicer,
the Indenture Trustee, any Officer or the Certificate Paying Agent under this
Agreement or any other Operative Document or otherwise and the Bank shall not be
obligated to perform or monitor the performance of any obligations or duties
under this Agreement or the other Operative Documents which are to be performed
by the Certificate Paying Agent under this Agreement, the Administrator under
the Administration Agreement, the Indenture Trustee under the Indenture or by
any other Person under any of the Operative Documents; and

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

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

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

                                       21
<PAGE>

     Section 6.04. Representations and Warranties.

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

          (i) the Bank is a banking corporation duly organized, validly existing
     and in good standing under the laws of the State of Delaware and has the
     power and authority to execute, deliver and perform its obligations under
     this Agreement and (assuming due authorization, execution and delivery of
     this Agreement by the Depositor and Administrator), has the power and
     authority as Owner Trustee to execute and deliver the Operative Documents
     and to perform its obligations thereunder and, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     this Agreement constitutes a legal, valid and binding obligation of the
     Bank or the Owner Trustee, as the case may be, enforceable against the Bank
     or the Owner Trustee, as the case may be, in accordance with its terms,
     except that (a) the enforceability thereof may be limited by bankruptcy,
     insolvency, moratorium, receivership and other similar laws relating to
     creditors' rights generally and (b) the remedy of specific performance and
     injunctive and other forms of equitable relief may be subject to equitable
     defenses and to the discretion of the court before which any proceeding
     therefor may be brought;

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

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

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

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

     (b) Wells Fargo Bank, N.A., as Administrator, hereby represents and
warrants to the Depositor, for the benefit of the Holder, that:

                                       22
<PAGE>

          (i) it is a national banking association duly organized and validly
     existing in good standing under the laws of the United States, and has the
     power and authority to execute, deliver and perform its obligations under
     this Agreement and, assuming the due authorization, execution and delivery
     hereof by the other parties hereto, this Agreement constitutes a legal,
     valid and binding obligation of the Administrator, enforceable against the
     Administrator in accordance with its terms, except that (a) the
     enforceability thereof may be limited by bankruptcy, insolvency,
     moratorium, receivership and other similar laws relating to creditors'
     rights generally and (b) the remedy of specific performance and injunctive
     and other forms of equitable relief may be subject to equitable defenses
     and to the discretion of the court before which any proceeding therefor may
     be brought;

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

          (iii) neither the execution nor the delivery by it of this Agreement
     nor the consummation by it of the transactions contemplated hereby nor
     compliance by it with any of the terms or provisions hereof will contravene
     any federal, governmental rule or regulation governing the banking or trust
     powers of the Administrator or any judgment or order binding on it, or
     constitute any default under its charter documents or by-laws or any
     indenture, mortgage, contract, agreement or instrument to which it is a
     party or by which any of its properties may be bound.

     Section 6.05. Reliance; Advice of Counsel.

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

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

                                       23
<PAGE>

provided in Sections 7.01 and 7.02, the Owner Trustee may seek reimbursement
therefor from the Trust Estate.

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

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

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

     Section 6.08. Owner Trustee May Own Ownership Certificates and Notes. The
Owner Trustee in its individual capacity may become the Holder (provided that if
the Owner Trustee should acquire the Ownership Certificates, it shall be a REIT,
a Qualified REIT Subsidiary or a Disregarded Entity) or the owner or pledgee of
Notes and may deal with the Depositor, the Administrator and the Indenture
Trustee in banking transactions with the same rights as it would have if it were
not Owner Trustee.

                                       24
<PAGE>

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

     Section 6.10. Doing Business in Other Jurisdictions. Notwithstanding
anything contained herein to the contrary, neither the Bank nor the Owner
Trustee shall be required to take any action in any jurisdiction other than in
the State of Delaware if the taking of such action will (i) require the consent
or approval or authorization or order of or the giving of notice to, or the
registration with or the taking of any other action in respect of, any state or
other governmental authority or agency of any jurisdiction other than the State
of Delaware; (ii) result in any fee, tax or other governmental charge under the
laws of any jurisdiction or any political subdivisions thereof in existence on
the date hereof other than the State of Delaware becoming payable by the Bank or
the Owner Trustee; or (iii) subject the Bank or the Owner Trustee to personal
jurisdiction in any jurisdiction other than the State of Delaware for causes of
action arising from acts unrelated to the consummation of the transactions by
the Bank or the Owner Trustee, as the case may be, contemplated hereby. The
Owner Trustee shall be entitled to obtain advice of counsel (which advice shall
be an expense of the Trust) to determine whether any action required to be taken
pursuant to this Agreement results in the consequences described in clauses (i),
(ii) and (iii) of the preceding sentence. In the event that such counsel advises
the Owner Trustee that such action will result in such consequences, the Owner
Trustee will appoint a co-trustee pursuant to Section 9.05 hereof to proceed
with such action.

     Section 6.11. Reporting Requirements of the Commission.

     (a) The Depositor, the Administrator and the Owner Trustee acknowledge and
agree that the purpose of this Section 6.11 is to facilitate compliance by the
Depositor with the provisions of Regulation AB. Neither the Depositor nor the
Administrator shall exercise its right to request delivery of information or
other performance under these provisions other than in good faith, or for
purposes other than the Depositor's compliance with Regulation AB. The Owner
Trustee agrees to cooperate in good faith with any reasonable request made by
the Depositor or the Administrator for information regarding the Owner Trustee
which is required in order to enable the Depositor to comply with the provisions
of Regulation AB, including, without limitation, Items 1109(a), 1109(b), 1117
and 1119(a) and (b) of Regulation AB as it relates to the Owner Trustee or to
the Owner Trustee's obligations under this Trust Agreement.

     (b) For so long as the Depositor is required to file reports with respect
to the Notes under Regulation AB, the Owner Trustee shall, as promptly as
practicable, notify the Depositor and the Administrator, in writing, of: (i) the
commencement of or, if applicable, the termination of, any and all legal
proceedings pending against the Owner Trustee or any and all proceedings of
which any property of the Owner Trustee is the subject, that is material to
Securityholders; and (ii) any such proceedings known to be contemplated by
governmental authorities. The Owner Trustee shall also notify the Depositor and
the Administrator in writing, as promptly as practicable following notice to or
discovery by a Responsible Officer of the Owner Trustee of any material changes
to proceedings described in the preceding sentence. In addition, the Owner
Trustee shall furnish to the Depositor and the Administrator, in writing, the
necessary disclosure regarding the

                                       25
<PAGE>

Owner Trustee describing such proceedings required to be disclosed under Item
1117 of Regulation AB, for inclusion in reports filed by or on behalf of the
Depositor with the Commission.

     For so long as the Notes are outstanding and the Depositor is required to
report under Regulation AB with respect to the Notes, the Owner Trustee shall,
no later than January 31st of each calendar year, provide to the Depositor and
the Administrator such information regarding the Owner Trustee as is required
for the purpose of compliance with Items 1109(a), 1109(b), 1119(a) and 1119(b)
of Regulation AB; and (ii) as promptly as practicable following notice to or
discovery by a Responsible Officer of the Owner Trustee of any changes to such
information, provide to the Depositor and the Administrator, in writing, such
updated information. Such information shall include, at a minimum:

          (A) the Owner Trustee's name and form of organization;

          (B) a description of the extent to which the Owner Trustee has had
prior experience serving as a trustee for asset-backed securities transactions
involving mortgage backed securities; and

          (C) a description of any affiliation between the Owner Trustee and any
of the parties identified in Exhibit H.

     In addition, the Owner Trustee shall provide a description of whether there
is, and if so the general character of, any business relationship, agreement,
arrangement, transaction or understanding between the Owner Trustee and any of
the parties identified in Exhibit H that is entered into outside the ordinary
course of business or is on terms other than would be obtained in an arm's
length transaction with an unrelated third party, apart from this transaction,
that currently exists or that existed during the past two years and that is
material to an investor's understanding of the Notes.

     With respect to the information required to be provided under this Section
6.11(b), the Owner Trustee shall not be required to provide such information in
the event that there has been no change to the information previously provided
by the Owner Trustee to the Depositor. In connection with each report on Form
10-K with respect to the Notes and each report on Form 10-D with respect to the
Notes filed by or on behalf of the Depositor, the Owner Trustee shall be deemed
to represent and warrant, as of March 15th for the report on Form 10-K and as of
the related Payment Date for the report on Form 10-D, that any information
previously provided by the Owner Trustee under this Section 6.11 is materially
correct and does not contain any material omissions unless the Owner Trustee has
provided an update to such information.

                                   ARTICLE VII
                        INDEMNIFICATION AND COMPENSATION

     Section 7.01. Trust Expenses. The Depositor shall pay or cause the payment
of the organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee in connection therewith. The Depositor shall
also pay or cause the payment of (or reimbursement to the Bank for) all
reasonable expenses of the Owner Trustee hereunder,

                                       26
<PAGE>

including, without limitation, the reasonable compensation, expenses and
disbursements of such agents, representatives, experts and counsel as the Owner
Trustee may employ in connection with the exercise and performance of its rights
and duties under the Operative Documents.

     Section 7.02. Indemnification.

     (a) To the fullest extent permitted by applicable law, the Bank and its
successors, assigns, agents and servants (collectively, the "Indemnified
Parties") shall be entitled to be indemnified and held harmless from and against
any and all liabilities, obligations, indemnity obligations, losses (excluding
loss of anticipated profits), damages, taxes, claims, actions, suits, judgments
and any and all reasonable out-of-pocket costs, expenses and disbursements
(including legal and consultants' fees and expenses) of any kind and nature
whatsoever (collectively, the "Liabilities") that may be imposed on, incurred by
or asserted at any time against any Indemnified Party or the Owner Trustee in
any way relating to or arising out of this Agreement, the Operative Documents,
the Trust Estate, the administration of the Trust Estate or any action or
inaction of the Owner Trustee hereunder or under the Operative Documents, except
to the extent that such Liabilities arise out of or result from (i) the Bank's
own willful misconduct, fraud or gross negligence, (ii) the inaccuracy of any of
the Bank's representations or warranties contained in Section 6.04 of this
Agreement, (iii) the Bank's failure to perform obligations expressly undertaken
by it in this Agreement; (iv) taxes based on or measured by any fees,
commissions or compensation received by the Bank for acting as Owner Trustee in
connection with any of the transactions contemplated by this Agreement or any
other Operative Document and (v) the Bank's failure to use due care to receive,
manage and disburse moneys actually received by it in accordance with the terms
hereof. The indemnities contained in this Section 7.02(a) shall survive the
termination of this Agreement and the removal or resignation of the Owner
Trustee hereunder. In the event of any claim, action or proceeding for which
indemnity will be sought pursuant to this Section, the Owner Trustee's choice of
legal counsel shall be subject to the approval of the Depositor, which approval
shall not be unreasonably withheld.

     (b) Any fees, reimbursements and indemnities to an Indemnified Party or the
Owner Trustee pursuant to this Section 7.02 shall be payable: first, out of
amounts on deposit in the Certificate Distribution Account prior to payments on
the Ownership Certificates; second, to the extent not paid pursuant to clause
first within 60 days of first being incurred, by the Certificateholder, on a
joint and several basis; and third, to the extent not paid pursuant to clause
first and second within 60 days of first being incurred, by Aegis Mortgage
Corporation. If any amounts shall be on deposit in the Certificate Distribution
Account subsequent to the payment of any reimbursement or indemnification
amounts pursuant to clauses second or third of the preceding sentence, then
reimbursement for such payment shall be payable out of amounts on deposit in the
Certificate Distribution Account prior to payments on the Ownership Certificates
on any Payment Date first to Aegis Mortgage Corporation and second to the
Certificateholder who made payment pursuant to clause second of the preceding
sentence, in each case to the extent of the payment made by it to the
Indemnified Party or the Owner Trustee pursuant to the preceding sentence.

     Section 7.03. Compensation. The Bank shall receive as compensation for its
services hereunder such fees as are set forth in the fee letter agreement
between the Bank and the Depositor attached hereto as Exhibit E. The Master
Servicer shall pay from income on funds

                                       27
<PAGE>

held in the Collection Account the Owner Trustee Fee, as provided in Section
3.8(b) of the Transfer and Servicing Agreement, and the Administrator shall pay
out of the Distribution Account any other fees, as provided in Section 3.8(c) of
the Transfer and Servicing Agreement.

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

                                  ARTICLE VIII
                            TERMINATION OF AGREEMENT

     Section 8.01. Termination of Agreement.

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

     (b) Except as provided in Section 8.01(a), neither the Depositor nor the
Holder shall be entitled to revoke or terminate the Trust established hereunder.

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

                                       28
<PAGE>

Agent shall cause to be distributed to the Holder amounts distributable on such
Payment Date pursuant to Section 4.1 of the Transfer and Servicing Agreement.

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

                                   ARTICLE IX
             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

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

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

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

                                       29
<PAGE>

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

     Section 9.03. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Administrator and to its predecessor Owner Trustee an instrument accepting such
appointment under this Agreement, and thereupon the resignation or removal of
the predecessor Owner Trustee shall become effective and such successor Owner
Trustee without any further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties, and obligations of its predecessor under
this Agreement, with like effect as if originally named as Owner Trustee. The
predecessor Owner Trustee shall upon payment of its fees and expenses deliver to
the successor Owner Trustee all documents and statements and monies held by it
under this Agreement; and the Administrator and the predecessor Owner Trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties, and obligations.

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

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

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

     Section 9.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate or any Collateral may at the time be located, and for the
purpose of performing certain duties and obligations of the Owner Trustee with
respect to the Trust and the Certificates under the Transfer and Servicing
Agreement, the Owner Trustee shall have the power and shall execute and deliver
all instruments to appoint one or more Persons approved by the Owner Trustee to
act as co-trustee, jointly with the Owner Trustee, or separate trustee or
separate trustees, of all or any part of the Trust Estate,

                                       30
<PAGE>

and to vest in such Person, in such capacity, such title to the Trust, or any
part thereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Owner Trustee may consider
necessary or desirable. No co-trustee or separate trustee under this Agreement
shall be required to meet the terms of eligibility as a successor trustee
pursuant to Section 9.01 and no notice of the appointment of any co-trustee or
separate trustee shall be required pursuant to Section 9.03.

     The Owner Trustee hereby appoints the Administrator for the purpose of
establishing and maintaining the Certificate Distribution Account and making the
distributions therefrom to the Persons entitled thereto pursuant to Section 4.1
of the Transfer and Servicing Agreement.

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

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

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

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

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

     Any separate trustee or co-trustee may at any time appoint the Owner
Trustee as its Agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

                                       31
<PAGE>

                                    ARTICLE X
                                  MISCELLANEOUS

     Section 10.01. Supplements and Amendments. This Agreement may be amended by
the Depositor, the Administrator and the Owner Trustee, with the consent of the
Holder and with prior written notice to the Rating Agencies, but without the
consent of any of the Noteholders or the Indenture Trustee, to (a) cure any
ambiguity, to correct or supplement any provisions in this Agreement or for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions in this Agreement or of modifying in any manner the rights of
the Noteholders or the Holder or (b) to comply with any SEC Rules (as defined in
Section 10.13 hereof); provided, however, that such action shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect the
interests of any Noteholder or the Holder or adversely affect the tax status of
the Trust. An amendment shall not be deemed to adversely affect in any material
respect the interests of any Noteholder or the Holder and no opinion referred to
in the preceding proviso shall be required to be delivered if the Person
requesting the amendment obtains a letter from each Rating Agencies stating that
the amendment would not result in the downgrading or withdrawal of the
respective ratings then assigned to each Class of Notes. Notwithstanding the
preceding sentence, an opinion shall be required with respect to tax matters as
set forth in this paragraph. Notwithstanding the foregoing, neither an Opinion
of Counsel nor any letters from any Rating Agency referred to above shall be
required if such amendment is made pursuant to (b) above.

     This Agreement may also be amended from time to time by the Depositor, the
Administrator and the Owner Trustee, with the prior written consent of the
Rating Agencies and with the prior written consent of the Holders (as defined in
the Indenture) of Notes evidencing more than 66 2/3% of the Outstanding Balance
of the Notes, and the consent of the Holder, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Holder; provided,
however, that no such amendment shall, as evidenced by an Opinion of Counsel,
adversely affect the tax status of the Trust; and provided, further, that no
such amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on the Collateral or
payments that shall be required to be made for the benefit of the Noteholders or
the Holder or (b) reduce the aforesaid percentage of the Outstanding Balance of
the Notes required to consent to or to waive the requirement for the Holder to
consent to any such amendment, in either case of clause (a) or (b) without the
consent of the holders of all the outstanding Notes and the Holder.

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

     Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent to the Holder, the Indenture Trustee and the Rating Agencies.

                                       32
<PAGE>

     It shall not be necessary for the consent of the Holder or the Noteholders
pursuant to this Section 10.01 to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve
the substance thereof. The manner of obtaining such consents (and any other
consents of the Holder provided for in this Agreement or in any other Operative
Document) and of evidencing the authorization of the execution thereof by the
Holder shall be subject to such reasonable requirements as the Owner Trustee may
prescribe.

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

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

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

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

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

     Section 10.05. Notices. Unless otherwise expressly specified or permitted
by the terms hereof, all notices shall be in writing and delivered by hand, by
courier or mailed by certified mail, postage prepaid, (a) if to the Owner
Trustee or the Trust, addressed to it at the Corporate Trust Office of the Owner
Trustee or to such other address as the Owner Trustee may have set forth in a
written notice to the Holder and the Depositor addressed to each of them at the
address set forth for the Certificateholder in the Certificate Register and for
the Depositor below; (b) if to the Administrator, addressed to it at the
Corporate Trust Office of the Administrator; and (c) if to the Depositor,
addressed to it at Aegis Asset Backed Securities Corporation, 3250 Briarpark,

                                       33
<PAGE>

Suite 400, Houston, Texas 77042, Attention: AEGIS 2006-1. Whenever any notice in
writing is required to be given by the Owner Trustee or the Administrator, such
notice shall be deemed given and such requirement satisfied if such notice is
mailed by certified mail, postage prepaid, addressed as provided above.

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

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

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

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

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

     Section 10.11. No Petition.

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

     (b) The Depositor shall not be liable for the default or misconduct of the
Administrator, the Owner Trustee, the Indenture Trustee or the Certificate
Paying Agent under any of the Operative Documents or otherwise and the Depositor
shall have no obligation or liability to perform the obligations of the Trust
under this Agreement or the Operative Documents that are

                                       34
<PAGE>

required to be performed by the Administrator under the Administration Agreement
or the Indenture Trustee under the Indenture.

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

     Section 10.13. Reporting Requirements of the Commission and
Indemnification.

     Notwithstanding any other provision of this Agreement, the Owner Trustee
shall (i) agree to such modifications and enter into such amendments to this
Agreement as may be necessary, in the judgment of the Depositor and its counsel,
to comply with any rules promulgated by the Commission and any interpretations
thereof by the staff of the Commission (collectively, "SEC Rules").

                                   ARTICLE XI
                                    OFFICERS

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

     Section 11.02. Officers to Provide Information to the Owner Trustee. It
shall be the duty of each Officer to keep the Owner Trustee reasonably and
promptly informed as to material events relating to the Trust, including,
without limitation, all claims pending or threatened against the Trust, the
purchase and sale of any material portion of the Trust Estate and the execution
by such Officer on behalf of the Trust of any material agreements or
instruments.

                                       35
<PAGE>

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

                                       AEGIS ASSET BACKED SECURITIES
                                       CORPORATION, as Depositor

                                       By:  /s/ Pat Walden
                                           ---------------------------------
                                           Name: Pat Walden
                                           Title: President

                                       WILMINGTON TRUST COMPANY,
                                       not in its individual capacity but solely
                                       as Owner Trustee

                                       By: /s/ Robert J. Perkins
                                           ---------------------------------
                                           Name:  Robert J. Perkins
                                           Title: Sr. Financial Services Officer

                                       WELLS FARGO BANK, N.A.
                                       not in its individual capacity but solely
                                       as Administrator

                                       By: /s/ Stacey M. Taylor
                                           ---------------------------------
                                           Name:  Stacey M. Taylor
                                           Title: Vice President

Acknowledged and Agreed, solely
for purposes of Section 7.02:

AEGIS MORTGAGE CORPORATION

By: /s/ Pat Walden
    ---------------------------------
    Name: Pat Walden
    Title: President Portfolio Management
<PAGE>

                                                                     EXHIBIT A-X

                     [FORM OF CLASS X OWNERSHIP CERTIFICATE]

                                     [Face]

THIS CLASS X OWNERSHIP CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
ANY STATE. THIS CLASS X OWNERSHIP CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY
OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER
HEREOF ONLY TO A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER
THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE
SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT
PURSUANT TO RULE 144A. NO PERSON IS OBLIGATED TO REGISTER THIS CLASS X OWNERSHIP
CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES LAWS.

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

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

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

NO TRANSFER OF THIS CLASS X OWNERSHIP CERTIFICATE SHALL BE MADE UNLESS THE
CERTIFICATE REGISTRAR SHALL HAVE RECEIVED AN AFFIDAVIT FROM THE PROPOSED
TRANSFEREE IN WHICH THE PROPOSED TRANSFEREE DECLARES THAT IT IS A REAL ESTATE
INVESTMENT TRUST (A "REIT") WITHIN THE MEANING OF SECTIONS 856 AND 857 OF THE
CODE, A QUALIFIED REIT SUBSIDIARY WITHIN THE MEANING OF SECTION 856(i) OF THE
CODE OR AN ENTITY THAT IS BOTH (A) SOLELY OWNED BY A REIT OR QUALIFIED REIT

                                      A-X-1
<PAGE>

SUBSIDIARY AND (B) DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER WITHIN THE
MEANING OF SECTION 301.7701-2(C)(2) OF THE TREASURY REGULATIONS (A "DISREGARDED
ENTITY"). MOREOVER, ANY ATTEMPTED TRANSFER OF THIS CLASS X OWNERSHIP CERTIFICATE
TO A PERSON OTHER THAN A REIT, A QUALIFIED REIT SUBSIDIARY OR A DISREGARDED
ENTITY SHALL BE VOID AB INITIO AND THE PURPORTED TRANSFEREE SHALL ACQUIRE NO
RIGHTS IN THIS CLASS X OWNERSHIP CERTIFICATE. FURTHERMORE, THIS CLASS X
OWNERSHIP CERTIFICATE MAY ONLY BE TRANSFERRED IN A TRANSACTION IN WHICH THE
TRANSFEREE ACQUIRES BOTH A 100% PERCENTAGE INTEREST IN THE CLASS X OWNERSHIP
CERTIFICATE AND A 100% PERCENTAGE INTEREST IN THE CLASS R OWNERSHIP CERTIFICATE
SUCH THAT AT ALL TIMES ONE PERSON WILL BE THE SOLE OWNER OF A 100% PERCENTAGE
INTEREST IN THE CLASS X OWNERSHIP CERTIFICATE AND THE CLASS R OWNERSHIP
CERTIFICATE.

                                      A-X-2
<PAGE>

     AEGIS ASSET BACKED SECURITIES TRUST 2006-1

     Certificate No. _________ Percentage Interest: 100%

     First Payment Date: [________]

     Evidencing a fractional undivided equity interest in the Trust Estate, the
property of which consists primarily of the Collateral in Aegis Asset Backed
Securities Trust 2006-1 (the "Trust" or the "Issuer"), a Delaware statutory
trust formed by Aegis Asset Backed Securities Corporation, a Delaware
corporation, as depositor (the "Depositor"), pursuant to the Agreement referred
to below.

     This certifies that [insert name of Holder] is the registered owner of the
Percentage Interest referred to above.

     The Trust was created pursuant to a trust agreement dated as of October 1,
2006 (as amended and supplemented from time to time, the "Agreement" or "Trust
Agreement"), among the Depositor, Wilmington Trust Company, as owner trustee
(the "Owner Trustee," which term includes any successor entity under the
Agreement), and Wells Fargo Bank, N.A., as administrator (in such capacity, the
"Administrator"), a summary of certain of the pertinent provisions of which is
set forth hereinafter. This Class X Ownership Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Class X Ownership Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound, and the transfer
and servicing agreement dated as of October 1, 2006 (as amended and supplemented
from time to time, the "Transfer and Servicing Agreement"), among the Issuer,
the Depositor, Aegis REIT Corporation, as seller, Wells Fargo Bank, N.A., as
master servicer and administrator, Ocwen Loan Servicing, LLC, as servicer and
Deutsche Bank National Trust Company, as indenture trustee (the "Indenture
Trustee") and as custodian. Distributions on this Class X Ownership Certificate
shall be made by the Administrator, in its capacity of Certificate Paying Agent
under the Agreement.

     This Class X Ownership Certificate is issued under the Agreement to which
reference is hereby made for a statement of the respective rights thereunder of
the Depositor, the Owner Trustee and the Holder of the Class X Ownership
Certificate and the terms upon which the Class X Ownership Certificate is
executed and delivered. The Trust Estate consists of the Collateral in the Aegis
Asset Backed Securities Trust 2006-1. To the extent not otherwise defined
herein, capitalized terms used herein have the meanings assigned to such terms
in the Agreement or the Transfer and Servicing Agreement. The rights of the
Holder are subordinated to the rights of the Noteholders, as set forth in the
indenture dated as of October 1, 2006 (as amended and supplemented from time to
time, the "Indenture"), among the Issuer, the Indenture Trustee and the
Administrator.

     There will be distributed on the 25th day of each month or, if such 25th
day is not a Business Day, the next Business Day (each, a "Payment Date"),
commencing in November 2006, to the Holder at the close of business on the last
Business Day of the month preceding the month of such Payment Date (the "Record
Date"), the amount to be distributed to the Holder on

                                      A-X-3
<PAGE>

such Payment Date, all as provided in the Transfer and Servicing Agreement and
the Trust Agreement.

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

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

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

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

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

     Reference is hereby made to the further provisions of this Class X
Ownership Certificate set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place.

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

     THIS CLASS X OWNERSHIP CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS
PROVISIONS, AND THE OBLIGATIONS,

                                      A-X-4
<PAGE>

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

                                      A-X-5
<PAGE>

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

                                           AEGIS ASSET BACKED SECURITIES TRUST
                                           2006-1

                                           By: WILMINGTON TRUST COMPANY, not in
                                           its individual capacity but solely as
                                           Owner Trustee

                                           By:
                                               ---------------------------------
                                               Authorized Signatory

Dated: _________________________

                                      A-X-6
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                           WELLS FARGO BANK, N.A., not in its
                                           individual capacity but solely as
                                           Administrator

                                           By:
                                               ---------------------------------
                                               Authorized Signatory

                                           Dated: _________________

                                      A-X-7
<PAGE>

                   [REVERSE OF CLASS X OWNERSHIP CERTIFICATE]

        AEGIS ASSET BACKED SECURITIES TRUST CLASS X OWNERSHIP CERTIFICATE

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

     The Agreement permits the amendment thereof as specified below, provided
that any amendment be accompanied by an Opinion of Counsel to the effect that
such amendment complies with the provisions of the Agreement and would not cause
the Trust to be subject to an entity level tax. If the purpose of the amendment
is to correct any mistake, eliminate any inconsistency, cure any ambiguity or
deal with any matter not covered, it shall not be necessary to obtain the
consent of any Noteholder or the Indenture Trustee. If the purpose of the
amendment is to add or eliminate or change any provision of the Agreement, other
than as specified in the preceding sentence, the amendment shall require the
consent of the Holder and the consent of Noteholders evidencing more than 66
2/3% of the Outstanding Balance of the Notes; provided, however, that no such
amendment shall, as evidenced by an Opinion of Counsel, adversely affect the tax
status of the Trust; and provided, further, that no such amendment shall (a)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on the Collateral or distributions that shall
be required to be made for the benefit of the Noteholders or the Holder or (b)
reduce the aforesaid percentage of the Outstanding Balance of the Notes required
to consent to or to waive the requirement for the Holder to consent to any such
amendment, in either case of clause (a) or (b) without the consent of the
holders of all the outstanding Securities.

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

     Except as provided in the Agreement, the Class X Ownership Certificate is
issuable only in a minimum Percentage Interest of 100%. No service charge will
be made for any such registration of transfer or exchange, but the Owner Trustee
or the Certificate Registrar may

                                     A-X-8
<PAGE>

require payment of a sum sufficient to cover any tax or governmental charge
payable in connection therewith or any expense incurred thereby.

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

     The obligations and responsibilities created by the Agreement and the Trust
created thereby shall terminate upon the satisfaction and discharge of the
Indenture pursuant to Section 4.01 thereof and the termination of the Transfer
and Servicing Agreement.

                                     A-X-9
<PAGE>

                                   ASSIGNMENT

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

________________________________________________________________________________

________________________________________________________________________________

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

________________________________________________________________________________

the within Class X Ownership Certificate, and all rights thereunder, hereby
irrevocably constituting and appointing

________________________________________________________________________________

to transfer said Class X Ownership Certificate on the books of the Certificate
Registrar, with full power of substitution in the premises.

     I [we] further direct the Certificate Registrar to issue a new Class X
Ownership Certificate to the above-named assignee and deliver such Class X
Ownership Certificate to the following address:

________________________________________________________________________________

________________________________________________________________________________

Dated:
       ------------------------------   ----------------------------------------
                                        Signature by or on behalf of Assignor
-------------------------------------
   Authorized Officer
                                        ----------------------------------------
                                        Signature Guaranteed

-------------------------------------   ----------------------------------------
   Name of Institution                  NOTICE: The signature(s) of this
                                        assignment must correspond with the
                                        name(s) on the face of this Certificate
                                        without alteration or any change
                                        whatsoever. The signature must be
                                        guaranteed by a participant in the
                                        Securities Transfer Agents Medallion
                                        Program, the New York Stock Exchange
                                        Medallion Signature Program or the Stock
                                        Exchanges Medallion Program. Notarized
                                        or witnessed signatures are not
                                        acceptable as guaranteed signatures.

                                     A-X-10
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

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

________________________________________________________________________________

for the account of _____________________________________________________________

account number __________________ or, if mailed by check, to ___________________

_______________________________________________________________________________.

Applicable reports and statements should be mailed to __________________________

_______________________________________________________________________________.

This information is provided by _____________________________________________,

the assignee named above, or ____________________________________ as its agent.

                                        ----------------------------------------
                                        Signature of assignee or agent
                                        (for authorization of wire transfer
                                        only)

                                     A-X-11
<PAGE>

                                                                     EXHIBIT A-R

                     [FORM OF CLASS R OWNERSHIP CERTIFICATE]

                                     [Face]

THIS CLASS R OWNERSHIP CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
ANY STATE. THIS CLASS R OWNERSHIP CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY
OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER
HEREOF ONLY TO A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER
THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE
SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT
PURSUANT TO RULE 144A. NO PERSON IS OBLIGATED TO REGISTER THIS CLASS R OWNERSHIP
CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES LAWS.

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

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

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

NO TRANSFER OF THIS CLASS R OWNERSHIP CERTIFICATE SHALL BE MADE UNLESS THE
CERTIFICATE REGISTRAR SHALL HAVE RECEIVED AN AFFIDAVIT FROM THE PROPOSED
TRANSFEREE IN WHICH THE PROPOSED TRANSFEREE DECLARES THAT IT IS A REAL ESTATE
INVESTMENT TRUST (A "REIT") WITHIN THE MEANING OF SECTIONS 856 AND 857 OF THE
CODE, A QUALIFIED REIT SUBSIDIARY WITHIN THE MEANING OF SECTION 856(i) OF THE
CODE OR AN ENTITY THAT IS BOTH (A) SOLELY OWNED BY A REIT OR QUALIFIED REIT

                                      A-R-1
<PAGE>

SUBSIDIARY AND (B) DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER WITHIN THE
MEANING OF SECTION 301.7701-2(C)(2) OF THE TREASURY REGULATIONS (A "DISREGARDED
ENTITY"). MOREOVER, ANY ATTEMPTED TRANSFER OF THIS CLASS R OWNERSHIP CERTIFICATE
TO A PERSON OTHER THAN A REIT, A QUALIFIED REIT SUBSIDIARY OR A DISREGARDED
ENTITY SHALL BE VOID AB INITIO AND THE PURPORTED TRANSFEREE SHALL ACQUIRE NO
RIGHTS IN THIS CLASS R OWNERSHIP CERTIFICATE. FURTHERMORE, THIS CLASS R
OWNERSHIP CERTIFICATE MAY ONLY BE TRANSFERRED IN A TRANSACTION IN WHICH THE
TRANSFEREE ACQUIRES BOTH A 100% PERCENTAGE INTEREST IN THE CLASS R OWNERSHIP
CERTIFICATE AND A 100% PERCENTAGE INTEREST IN THE CLASS X OWNERSHIP CERTIFICATE
SUCH THAT AT ALL TIMES ONE PERSON WILL BE THE SOLE OWNER OF A 100% PERCENTAGE
INTEREST IN THE CLASS R OWNERSHIP CERTIFICATE AND THE CLASS X OWNERSHIP
CERTIFICATE.

                                      A-R-2
<PAGE>

AEGIS ASSET BACKED SECURITIES TRUST 2006-1

     Certificate No. _________ Percentage Interest: 100%

     Principal Balance: $100.00

     First Payment Date: [________]

     Evidencing a fractional undivided equity interest in the Trust Estate, the
property of which consists primarily of the Collateral in Aegis Asset Backed
Securities Trust 2006-1 (the "Trust" or the "Issuer"), a Delaware statutory
trust formed by Aegis Asset Backed Securities Corporation, a Delaware
corporation, as depositor (the "Depositor"), pursuant to the Agreement referred
to below.

     This certifies that [insert name of Holder] is the registered owner of the
Percentage Interest referred to above.

     The Trust was created pursuant to a trust agreement dated as of October 1,
2006 (as amended and supplemented from time to time, the "Agreement" or "Trust
Agreement"), among the Depositor, Wilmington Trust Company, as owner trustee
(the "Owner Trustee," which term includes any successor entity under the
Agreement), and Wells Fargo Bank, N.A., as administrator (in such capacity, the
"Administrator"), a summary of certain of the pertinent provisions of which is
set forth hereinafter. This Class R Ownership Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Class R Ownership Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound, and the transfer
and servicing agreement dated as of October 1, 2006 (as amended and supplemented
from time to time, the "Transfer and Servicing Agreement"), among the Issuer,
the Depositor, Aegis REIT Corporation, as seller, Wells Fargo Bank, N.A., as
master servicer and administrator, Ocwen Loan Servicing, LLC, as servicer and
Deutsche Bank National Trust Company, as indenture trustee (the "Indenture
Trustee") and as custodian. Distributions on this Class R Ownership Certificate
shall be made by the Administrator, in its capacity of Certificate Paying Agent
under the Agreement.

     This Class R Ownership Certificate is issued under the Agreement to which
reference is hereby made for a statement of the respective rights thereunder of
the Depositor, the Owner Trustee and the Holder of the Class R Ownership
Certificate and the terms upon which the Class R Ownership Certificate is
executed and delivered. The Trust Estate consists of the Collateral in the Aegis
Asset Backed Securities Trust 2006-1. To the extent not otherwise defined
herein, capitalized terms used herein have the meanings assigned to such terms
in the Agreement or the Transfer and Servicing Agreement. The rights of the
Holder are subordinated to the rights of the Noteholders, as set forth in the
indenture dated as of October 1, 2006 (as amended and supplemented from time to
time, the "Indenture"), among the Issuer, the Indenture Trustee and the
Administrator.

     There will be distributed on the 25th day of each month or, if such 25th
day is not a Business Day, the next Business Day (each, a "Payment Date"),
commencing in November 2006, to the Holder at the close of business on the last
Business Day of the month preceding the

                                      A-R-3
<PAGE>

month of such Payment Date (the "Record Date"), the amount to be distributed to
the Holder on such Payment Date, all as provided in the Transfer and Servicing
Agreement and the Trust Agreement.

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

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

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

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

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

     Reference is hereby made to the further provisions of this Class R
Ownership Certificate set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place.

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

     THIS CLASS R OWNERSHIP CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS
PROVISIONS, AND THE OBLIGATIONS,

                                      A-R-4
<PAGE>

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

                                      A-R-5
<PAGE>

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

                                      AEGIS ASSET BACKED SECURITIES TRUST 2006-1

                                      By: WILMINGTON TRUST COMPANY, not in its
                                      individual capacity but solely as Owner
                                      Trustee

                                      By:
                                          --------------------------------------
                                          Authorized Signatory

Dated: _________________________

                                      A-R-6
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                      WELLS FARGO BANK, N.A., not in its
                                      individual capacity but solely as
                                      Administrator

                                      By:
                                          --------------------------------------
                                          Authorized Signatory

                                      Dated: _________________________

                                      A-R-7
<PAGE>

                   [REVERSE OF CLASS R OWNERSHIP CERTIFICATE]

        AEGIS ASSET BACKED SECURITIES TRUST CLASS R OWNERSHIP CERTIFICATE

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

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

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

     Except as provided in the Agreement, the Class R Ownership Certificate is
issuable only in a minimum Percentage Interest of 100%. No service charge will
be made for any such registration of transfer or exchange, but the Owner Trustee
or the Certificate Registrar may

                                      A-R-8
<PAGE>

require payment of a sum sufficient to cover any tax or governmental charge
payable in connection therewith or any expense incurred thereby.

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

     The obligations and responsibilities created by the Agreement and the Trust
created thereby shall terminate upon the satisfaction and discharge of the
Indenture pursuant to Section 4.01 thereof and the termination of the Transfer
and Servicing Agreement.

                                      A-R-9
<PAGE>

                                   ASSIGNMENT

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

________________________________________________________________________________

________________________________________________________________________________

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

________________________________________________________________________________

the within Class R Ownership Certificate, and all rights thereunder, hereby
irrevocably constituting and appointing

________________________________________________________________________________

to transfer said Class R Ownership Certificate on the books of the Certificate
Registrar, with full power of substitution in the premises.

     I [we] further direct the Certificate Registrar to issue a new Class R
Ownership Certificate to the above-named assignee and deliver such Class R
Ownership Certificate to the following address:

________________________________________________________________________________

________________________________________________________________________________

Dated:
       ------------------------------   ----------------------------------------
                                        Signature by or on behalf of Assignor

-------------------------------------
Authorized Officer                      ----------------------------------------
                                        Signature Guaranteed

-------------------------------------   ----------------------------------------
Name of Institution                     NOTICE: The signature(s) of this
                                        assignment must correspond with the
                                        name(s) on the face of this Certificate
                                        without alteration or any change
                                        whatsoever. The signature must be
                                        guaranteed by a participant in the
                                        Securities Transfer Agents Medallion
                                        Program, the New York Stock Exchange
                                        Medallion Signature Program or the Stock
                                        Exchanges Medallion Program. Notarized
                                        or witnessed signatures are not
                                        acceptable as guaranteed signatures.

                                     A-R-10
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

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

________________________________________________________________________________

for the account of _____________________________________________________________

account number __________________ or, if mailed by check, to ___________________

_______________________________________________________________________________.

Applicable reports and statements should be mailed to __________________________

_______________________________________________________________________________.

This information is provided by _______________________________________________,

the assignee named above, or ____________________________________ as its agent.

                                        ----------------------------------------
                                        Signature of assignee or agent
                                        (for authorization of wire transfer
                                        only)

                                     A-R-11
<PAGE>

                                                                       EXHIBIT B

                                   [RESERVED]

                                       B-1
<PAGE>

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF TRUST OF

                   AEGIS ASSET BACKED SECURITIES TRUST 2006-1

     THIS Certificate of Trust of Aegis Asset Backed Securities Trust 2006-1
(the "Trust"), is being duly executed and filed by the undersigned, as trustee,
to form a statutory trust under the Delaware Statutory Trust Act (12 DEL. CODE,
Sections 3801 et seq.) (the "Act")

     1. NAME. The name of the statutory trust formed hereby is "AEGIS ASSET
BACKED SECURITIES TRUST 2006-1."

     2. DELAWARE TRUSTEE. The name and business address of the trustee of the
Trust in the State of Delaware are Wilmington Trust Company, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention:
Corporate Trust Administration.

     3. EFFECTIVE DATE. This Certificate of Trust shall be effective on [ ],
2006.

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

                                        WILMINGTON TRUST COMPANY,
                                        as Owner Trustee

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

                                       C-1
<PAGE>

                                                                     EXHIBIT D-1

                       FORM OF RULE 144A INVESTMENT LETTER

                                                                ________________
                                                                      Date

WELLS FARGO BANK, N.A.,
   as Certificate Registrar
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

Attention: Corporate Trust Department

Re: Aegis Asset Backed Securities Trust 2006-1
    Ownership Certificates

Ladies and Gentlemen:

     In connection with our acquisition of the Aegis Asset Backed Securities
Trust 2006-1 Ownership Certificates (the "Certificates"), we certify that (a) we
understand that the Certificates has not been registered under the Securities
Act of 1933, as amended (the "Act"), or any state securities laws and is being
transferred to us in a transaction that is exempt from the registration
requirements of the Act and any such laws, (b) we have such knowledge and
experience in financial and business matters that we are capable of evaluating
the merits and risks of investment in the Certificates, (c) we have had the
opportunity to ask questions of and receive answers from the Aegis Asset Backed
Securities Corporation (the "Depositor") concerning the purchase of the
Certificates and all matters relating thereto or any additional information
deemed necessary to our decision to purchase the Certificates, (d) we have not,
nor has anyone acting on our behalf, offered, transferred, pledged, sold or
otherwise disposed of the Certificates or any interest in the Certificates, or
solicited any offer to buy, transfer, pledge or otherwise dispose of the
Certificates or any interest in the Certificates from any person in any manner,
or made any general solicitation by means of general advertising or in any other
manner, or taken any other action that would constitute a distribution of the
Certificates under the Act or that would render the disposition of the
Certificates a violation of Section 5 of the Act or any state securities laws or
require registration pursuant thereto, and we will not act, or authorize any
person to act, in such manner with respect to the Certificates and (e) we are a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Act ("Rule 144A"). We are aware that the sale to us is being made in reliance on
Rule 144A.

     We are acquiring the Certificates for our own account or for resale
pursuant to Rule 144A and understand that such Certificates may be resold,
pledged or transferred only (1) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or

                                       D-1
<PAGE>

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

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

     We hereby acknowledge that under the terms of the Trust Agreement among
Aegis Asset Backed Securities Corporation, as Depositor, Wilmington Trust
Company, as Owner Trustee, and Wells Fargo Bank, N.A., as Administrator, dated
as of October 1, 2006, no transfer of the Certificates shall be permitted to be
made to any person unless the Certificate Registrar has received a certificate
from such transferee in the form hereof.

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

                                        Very truly yours,

                                        [Name of Transferee]

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

                                       D-2
<PAGE>

                                                                       EXHIBIT E

                       OWNER TRUSTEE FEE LETTER AGREEMENT

                              [Retained on file at:

                            Wilmington Trust Company
                               Rodney Square North
                            1100 North Market Street
                           Wilmington, Delaware 19890]

                                       E-1
<PAGE>

                                                                       EXHIBIT F

  FORM OF REPRESENTATION AND WARRANTY REGARDING TRANSFEREE'S STATUS AS A REIT,
                 QUALIFIED REIT SUBSIDIARY OR DISREGARDED ENTITY

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-1600
Attention: Aegis 2006-1

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Aegis 2006-1

Re: Aegis Asset Backed Securities Trust 2006-1
    Ownership Certificates

     This representation and warranty is delivered pursuant to Section 3.03 of
the Trust Agreement dated as of October 1, 2006 (the "Agreement"), among Aegis
Asset Backed Securities Corporation, as depositor (the "Depositor"), Wilmington
Trust Company, as owner trustee (the "Owner Trustee"), and Wells Fargo Bank,
N.A., as administrator (the "Administrator"), in connection with the transfer by
[Aegis Asset Backed Securities Trust 2006-1 (the "Trust") to the undersigned]
[the [transferor] to the undersigned] as beneficial owner (the "Beneficial
Owner") of a 100% Percentage Interest in each of the Class X Ownership
Certificate and the Class R Ownership Certificate. Capitalized terms used but
not defined in this document have the meanings ascribed to them in the
Agreement.

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

          (1) The Beneficial Owner either (i) qualifies for taxation as a real
     estate investment trust (a "REIT") within the meaning of Sections 856 and
     857 of the Internal Revenue Code of 1986, as amended (the "Code"), (ii) is
     a qualified REIT subsidiary within the meaning of Section 856(i) of the
     Code (a "Qualified REIT Subsidiary") or (iii) is an entity (a "Disregarded
     Entity") that is both (A) solely owned by an entity described in (i) or
     (ii) and (B) is disregarded as an entity separate from its owner within the
     meaning of Section 301.7701-2(c)(2) of the Treasury Regulations..

          (2) The Beneficial Owner hereby agrees to be subject to the
     indemnification provisions set out in Section 7.02 of the Agreement, and
     hereby warrants that the Beneficial Owner shall indemnify the Trust for any
     income tax imposed upon the Trust due to the Beneficial Owner's failure to
     qualify as a REIT, a Qualified REIT Subsidiary

                                       F-1
<PAGE>

     or a Disregarded Entity at any time at which such Beneficial Owner owns the
     Ownership Certificates.

          (3) The Beneficial Owner hereby agrees to be subject to the provisions
     governing events of default set out in the Indenture among Aegis Asset
     Backed Securities Trust 2006-1 (the "Trust"), as issuer, Deutsche Bank
     National Trust Company, as indenture trustee, and Wells Fargo Bank, N.A.,
     as administrator, dated as of October 1, 2006.

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

          (5) The Beneficial Owner is not, and on _________ [date of transfer]
     will not be, an employee benefit plan or other retirement arrangement
     subject to Section 406 of the Employee Retirement Income Security Act of
     1974, as amended ("ERISA") or Section 4975 of the Code or any substantially
     similar applicable law (collectively, a "Plan") or a person acting on
     behalf of or investing the assets of any such Plan to acquire the Ownership
     Certificates.

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

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

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

                                       F-2
<PAGE>

                                    EXHIBIT G

    SERVICING CRITERIA TO BE ADDRESSED IN REPORT ON ASSESSMENT OF COMPLIANCE

     The Owner Trustee shall address, at a minimum, the criteria identified as
below as "Applicable Servicing Criteria," as identified by a mark in the column
titled "Applicable Servicing Criteria":

<TABLE>
<CAPTION>
                                                                                                        APPLICABLE
                                        SERVICING CRITERIA                                          SERVICING CRITERIA
----------------------------------------------------------------------------------------------------------------------
    REFERENCE                                         CRITERIA
----------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                                       <C>
                                          GENERAL SERVICING CONSIDERATIONS

1122(d)(1)(i)      Policies and procedures are instituted to monitor any performance or other                X
                   triggers and events of default in accordance with the transaction agreements.

1122(d)(1)(ii)     If any material servicing activities are outsourced to third parties, policies            X
                   and procedures are instituted to monitor the third party's performance and
                   compliance with such servicing activities.

1122(d)(1)(iii)    Any requirements in the transaction agreements to maintain a back-up servicer
                   for the mortgage loans are maintained.

1122(d)(1)(iv)     A fidelity bond and errors and 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 mortgage loans are deposited into the appropriate custodial bank
                   accounts and related bank clearing accounts no more than two business days
                   following receipt, or such other number of days specified in the transaction
                   agreements.

1122(d)(2)(ii)     Disbursements made via wire transfer on behalf of an obligor or to an investor            X
                   are made only by authorized personnel.

1122(d)(2)(iii)    Advances of funds or guarantees 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 transaction, such as cash reserve accounts or                X
                   accounts established as a form of overcollateralization, are separately
                   maintained (e.g., with respect to commingling of cash) as set forth in the
                   transaction agreements.

1122(d)(2)(v)      Each custodial account is maintained at a federally insured depository                    X
                   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 as to prevent unauthorized access.                     X

1122(d)(2)(vii)    Reconciliations are prepared on a monthly basis for all asset-backed                      X
                   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.
</TABLE>

                                       G-1
<PAGE>

<TABLE>
<CAPTION>
                                                                                                        APPLICABLE
                                        SERVICING CRITERIA                                          SERVICING CRITERIA
----------------------------------------------------------------------------------------------------------------------
    REFERENCE                                         CRITERIA
----------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                                       <C>
                                         INVESTOR REMITTANCES AND REPORTING

1122(d)(3)(i)      Reports to investors, including those to be filed with the Commission, are                X
                   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
                   mortgage loans serviced by the Servicer.

1122(d)(3)(ii)     Amounts due to investors are allocated and remitted in accordance with                    X
                   timeframes, distribution priority and other terms set forth in the transaction
                   agreements.

1122(d)(3)(iii)    Disbursements made to an investor are posted within two business days to the              X
                   Servicer's investor records, or such other number of days specified in the
                   transaction agreements.

1122(d)(3)(iv)     Amounts remitted to investors per the investor reports agree with cancelled               X
                   checks, or other form of payment, or custodial bank statements.

                                              POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on mortgage loans is maintained as required by the
                   transaction agreements or related mortgage loan documents.

1122(d)(4)(ii)     Mortgage loan and related documents are safeguarded as required by the
                   transaction agreements

1122(d)(4)(iii)    Any additions, removals or substitutions to the asset pool are made, reviewed
                   and approved in accordance with any conditions or requirements in the
                   transaction agreements.

1122(d)(4)(iv)     Payments on mortgage loans, including any payoffs, made in accordance with the
                   related mortgage loan 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 mortgage
                   loan documents.

1122(d)(4)(v)      The Servicer's records regarding the mortgage loans 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 or status of an obligor's mortgage loans
                   (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 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 efforts are maintained during the period a
                   mortgage loan is delinquent in accordance with the transaction agreements.
                   Such records are maintained on at least a monthly basis, or such other period
                   specified in the transaction agreements, and describe the entity's activities
                   in monitoring delinquent mortgage loans 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 rates of return for mortgage loans with
                   variable rates are computed based on the related mortgage loan documents.
</TABLE>

                                       G-2
<PAGE>

<TABLE>
<CAPTION>
                                                                                                        APPLICABLE
                                        SERVICING CRITERIA                                          SERVICING CRITERIA
----------------------------------------------------------------------------------------------------------------------
    REFERENCE                                         CRITERIA
----------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                                       <C>
1122(d)(4)(x)      Regarding any funds held in trust for an obligor (such as escrow accounts):
                   (A) such funds are analyzed, in accordance with the obligor's mortgage loan
                   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 mortgage loan documents and state laws;
                   and (C) such funds are returned to the obligor within 30 calendar days of full
                   repayment of the related mortgage loans, or such other number of days
                   specified in the transaction agreements.

1122(d)(4)(xi)     Payments made on behalf of an obligor (such as tax or insurance payments) are
                   made on or before the related penalty or expiration dates, as indicated on the
                   appropriate bills or notices for such payments, provided that such support has
                   been received by the servicer at least 30 calendar days prior to these dates,
                   or such other number of days specified in the transaction agreements.

1122(d)(4)(xii)    Any late payment penalties in connection with any payment to be made on behalf
                   of an obligor are paid from the servicer's funds and not charged to the
                   obligor, unless the late payment was due to the obligor's error or omission.

1122(d)(4)(xiii)   Disbursements made on behalf of an 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 uncollectible accounts are recognized and
                   recorded in accordance with the transaction agreements.

1122(d)(4)(xv)     Any external enhancement or other 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>

                                       G-3
<PAGE>

                                    EXHIBIT H

                               TRANSACTION PARTIES

Indenture Trustee...........................Deutsche Bank National Trust Company

Owner Trustee...............................Wilmington Trust Company

Administrator...............................Wells Fargo Bank, N.A.

Master Servicer.............................Wells Fargo Bank, N.A.

Custodian(s)................................Deutsche Bank National Trust Company

Credit Risk Manager.........................N/A

PMI Insurer(s)..............................N/A

Interest Rate Derivatives Counterparty......Bear Stearns Financial Products Inc.

Interest Rate Cap Counterparty..............Bear Stearns Financial Products Inc.

Servicer(s).................................Ocwen Loan Servicing, LLC

Subservicer(s)..............................Aegis Mortgage Corporation

Originator(s)...............................Aegis Funding Corporation
                                            Aegis Lending Corporation

Sponsor/Seller..............................Aegis Mortgage Corporation

                                       H-1<PAGE>
                                                                     EXHIBIT 4.2

                                                                       EXECUTION

                                    INDENTURE

                                      among

                   AEGIS ASSET BACKED SECURITIES TRUST 2006-1,
                                     Issuer

                             WELLS FARGO BANK, N.A.,
                                  Administrator

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                Indenture Trustee

                           Dated as of October 1, 2006
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                               Page
                                                                                               ----
<S>            <C>                                                                               <C>
              ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01   Definitions..................................................................      2
Section 1.02   Incorporation by Reference of Trust Indenture Act............................      7
Section 1.03   Rules of Construction........................................................      7

                              ARTICLE II THE NOTES

Section 2.01   Form.........................................................................      8
Section 2.02   Execution, Authentication and Delivery.......................................      9
Section 2.03   Limitations on Transfer of the Notes.........................................     10
Section 2.04   Registration; Registration of Transfer and Exchange..........................     12
Section 2.05   Mutilated, Destroyed, Lost or Stolen Notes...................................     13
Section 2.06   Persons Deemed Owners........................................................     14
Section 2.07    Payment of Principal and Interest...........................................     14
Section 2.08   Cancellation.................................................................     15
Section 2.09   Release of Collateral........................................................     16
Section 2.10   Book-Entry Notes.............................................................     16
Section 2.11   Notices to Clearing Agency...................................................     17
Section 2.12   Definitive Notes.............................................................     17
Section 2.13   Tax Treatment................................................................     18

                              ARTICLE III COVENANTS

Section 3.01   Payment of Principal and Interest............................................     18
Section 3.02   Maintenance of Office or Agency..............................................     18
Section 3.03   Money for Payments to be Held in Trust.......................................     18
Section 3.04   Existence....................................................................     20
Section 3.05   Protection of Collateral.....................................................     20
Section 3.06   Opinions as to Collateral....................................................     21
Section 3.07   Performance of Obligations...................................................     21
Section 3.08   Negative Covenants...........................................................     22
Section 3.09   Annual Statement as to Compliance............................................     23
Section 3.10   Treatment of Notes as Debt for Tax Purposes..................................     23
Section 3.11   [Reserved]...................................................................     23
Section 3.12   No Other Business............................................................     23
Section 3.13   No Borrowing.................................................................     24
Section 3.14   [Reserved]...................................................................     24
Section 3.15   Guarantees, Loans, Advances and Other Liabilities............................     24
Section 3.16   Capital Expenditures.........................................................     24
Section 3.17   Removal of Administrator.....................................................     24
Section 3.18   Restricted Payments..........................................................     24
Section 3.19   Notice of Events of Default..................................................     24
Section 3.20   Further Instruments and Acts.................................................     24
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>           <C>                                                                                <C>
Section 3.21   Covenants of the Issuer......................................................     24
Section 3.22   Representations and Warranties of the Issuer.................................     25

                      ARTICLE IV SATISFACTION AND DISCHARGE

Section 4.01   Satisfaction and Discharge of Indenture......................................     26
Section 4.02   Application of Trust Money...................................................     27
Section 4.03   Repayment of Moneys Held by Paying Agent.....................................     28
Section 4.04   Trust Money Received by Indenture Trustee....................................     28
Section 4.05   Reporting Requirements of the Commission.....................................     28

                               ARTICLE V REMEDIES

Section 5.01   Events of Default............................................................     30
Section 5.02   Acceleration of Maturity; Rescission and Annulment...........................     31
Section 5.03   Collection of Indebtedness and Suits for Enforcement by Indenture Trustee....     32
Section 5.04   Remedies; Priorities.........................................................     34
Section 5.05   Optional Preservation of the Collateral......................................     36
Section 5.06   Limitation of Suits..........................................................     36
Section 5.07   Unconditional Rights of Noteholders To Receive Principal and Interest........     37
Section 5.08   Restoration of Rights and Remedies...........................................     37
Section 5.09   Rights and Remedies Cumulative...............................................     37
Section 5.10   Delay or Omission Not a Waiver...............................................     37
Section 5.11   Control by Noteholders.......................................................     37
Section 5.12   Waiver of Past Defaults......................................................     38
Section 5.13   Undertaking for Costs........................................................     38
Section 5.14   Waiver of Stay or Extension Laws.............................................     39
Section 5.15   Action on Notes..............................................................     39
Section 5.16   Performance and Enforcement of Certain Obligations...........................     39

                        ARTICLE VI THE INDENTURE TRUSTEE

Section 6.01   Duties of Indenture Trustee..................................................     40
Section 6.02   Rights of Indenture Trustee..................................................     42
Section 6.03   Individual Rights of Indenture Trustee.......................................     42
Section 6.04   Indenture Trustee's Disclaimer...............................................     42
Section 6.05    Notice of Defaults..........................................................     42
Section 6.06   Reports by Indenture Trustee to Holders......................................     43
Section 6.07   Compensation and Indemnity...................................................     43
Section 6.08   Replacement of Indenture Trustee.............................................     43
Section 6.09   Successor Indenture Trustee by Merger........................................     44
Section 6.10   Appointment of Co-Indenture Trustee or Separate Indenture Trustee............     45
Section 6.11   Eligibility; Disqualification................................................     46
Section 6.12   Representations and Warranties...............................................     46
Section 6.13   Preferential Collection of Claims Against Issuer.............................     47

                   ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>           <C>                                                                                <C>
Section 7.01   Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.......     47
Section 7.02   Preservation of Information; Communications to Noteholders...................     47
Section 7.03   Reports by Issuer............................................................     48
Section 7.04   Reports by Indenture Trustee or the Administrator on its behalf..............     48

                ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01   Collection of Money..........................................................     48
Section 8.02   Trust Accounts and Certificate Distribution Account..........................     49
Section 8.03   General Provisions Regarding Accounts........................................     49
Section 8.04   Release of Collateral........................................................     49

                       ARTICLE IX SUPPLEMENTAL INDENTURES

Section 9.01   Supplemental Indentures Without Consent of Noteholders.......................     50
Section 9.02   Supplemental Indentures with Consent of Noteholders..........................     51
Section 9.03   Execution of Supplemental Indentures.........................................     52
Section 9.04   Effect of Supplemental Indenture.............................................     52
Section 9.05   Conformity with Trust Indenture Act..........................................     52
Section 9.06   Reference in Notes to Supplemental Indentures................................     52
Section 9.07   Opinion of Counsel...........................................................     53

                          ARTICLE X REDEMPTION OF NOTES

Section 10.01   Redemption..................................................................     53
Section 10.02   Form of Redemption Notice...................................................     53
Section 10.03   Notes Payable on Redemption Date............................................     54

                            ARTICLE XI MISCELLANEOUS

Section 11.01   Compliance Certificates and Opinions, etc...................................     54
Section 11.02   Form of Documents Delivered to Indenture Trustee............................     55
Section 11.03   Acts of Noteholders.........................................................     55
Section 11.04   Notices, etc., to Indenture Trustee, Issuer and Rating Agencies.............     56
Section 11.05   Notices to Noteholders; Waiver..............................................     56
Section 11.06   Conflict with Trust Indenture Act...........................................     57
Section 11.07   Effect of Headings and Table of Contents....................................     57
Section 11.08   Successors and Assigns......................................................     57
Section 11.09   Severability................................................................     57
Section 11.10   Benefits of Indenture and Consents of Noteholders...........................     57
Section 11.11   Legal Holidays..............................................................     58
Section 11.12   Governing Law...............................................................     58
Section 11.13   Counterparts................................................................     58
Section 11.14   Recording of Indenture......................................................     58
Section 11.15   Trust Obligations...........................................................     58
Section 11.16   No Petition.................................................................     59
Section 11.17   Inspection..................................................................     59
Section 11.18   Agreements of Noteholders...................................................     59
</TABLE>

                                       iii
<PAGE>

                                    EXHIBITS

EXHIBIT A     Forms of Notes
EXHIBIT B-1   Form of Rule 144A Investment Letter
EXHIBIT B-2   Form of Non-Rule 144A Investment Letter
EXHIBIT C     Form of ERISA Transfer Affidavit

                                       iv
<PAGE>

     This INDENTURE, dated as of October 1, 2006, is by and among AEGIS ASSET
BACKED SECURITIES TRUST 2006-1, a Delaware statutory trust (the "Issuer"), WELLS
FARGO BANK, N.A., a national banking association, as administrator (the
"Administrator"), and DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking
association, as indenture trustee and not in its individual capacity (the
"Indenture Trustee").

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer's Mortgage Backed Notes
(the "Notes") in the Classes specified herein:

                                 GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as
Indenture Trustee for the benefit of the Holders of the Notes, all of the
Issuer's right, title and interest, whether now owned or hereafter acquired, in
and to: (i) the Trust Estate (as defined in the Transfer and Servicing
Agreement); (ii) the Issuer's rights and benefits but none of its obligations
under the Transfer and Servicing Agreement (including the Issuer's right to
cause the Depositor to repurchase Mortgage Loans from the Issuer under the
circumstances described therein); (iii) the Issuer's rights and benefits but
none of its obligations under the Administration Agreement; (v) the Issuer's
rights and benefits but none of its obligations under the Sale Agreement; (vi)
the Issuer's rights and benefits but none of its obligations under the Swap
Agreement; (vii) the Issuer's rights and benefits but none of its obligations
under the Cap Agreement; (viii) the Note Payment Account, all amounts and
property in the Note Payment Account from time to time, and the Security
Entitlements to all Financial Assets credited to the Note Payment Account from
time to time; (ix) all other property of the Trust from time to time; and (x)
all present and future claims, demands, causes of action and choses in action in
respect of any or all of the foregoing and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all of the
foregoing, including all proceeds of the conversion thereof, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts,
accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, condemnation awards, rights to payment of any and
every kind and other forms of obligations and receivables, instruments and other
property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing (collectively, the "Collateral").

     The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts owing in respect of, the Notes, and to
secure (i) the payment of all amounts due on the Notes in accordance with their
terms, (ii) the payment of all other sums payable under the Indenture with
respect to the Notes and (iii) compliance with the provisions of this Indenture,
all as provided in this Indenture.

     The Indenture Trustee, as Indenture Trustee on behalf of the Holders of the
Notes, acknowledges such Grant, accepts the trusts under this Indenture in
accordance with the provisions of this Indenture and agrees to perform its
duties required in this Indenture in accordance with the terms hereof to the end
that the interests of the Holders of the Notes may be adequately and effectively
protected.

                                       1
<PAGE>

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. Definitions. (a) Except as otherwise specified herein or as
the context may otherwise require, the following terms have the respective
meanings set forth below for all purposes of this Indenture.

     Act: The meaning specified in Section 11.03(a).

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

     Book-Entry Notes: Beneficial interests in Notes designated as "Book-Entry
Notes" in this Indenture, ownership and transfers of which shall be evidenced or
made through book entries by a Clearing Agency as described in Section 2.10;
provided, that after the occurrence of a condition whereupon Definitive Notes
are to be issued to Note Owners, such Book-Entry Notes shall no longer be
"Book-Entry Notes."

     Certificate of Trust: The certificate of trust of the Issuer substantially
in the form of Exhibit C to the Trust Agreement.

     Clearing Agency: An organization registered as a "clearing agency" pursuant
to Section 17A of the Exchange Act, as amended. As of the Closing Date, the
Clearing Agency shall be The Depository Trust Company.

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

     Clearstream: Clearstream Banking Luxembourg, and any successor thereto.

     Collateral: The meaning specified in the Granting Clause of this Indenture.

     Commission: The Securities and Exchange Commission.

     Default: Any occurrence that is, or with notice or the lapse of time or
both would become, an Event of Default.

     Definitive Notes: The meaning specified in Section 2.10.

                                       2
<PAGE>

     Depository Institution: Any depository institution or trust company,
including the Indenture Trustee, that (a) is incorporated under the laws of the
United States of America or any State thereof, (b) is subject to supervision and
examination by federal or state banking authorities and (c) has outstanding
unsecured commercial paper or other short-term unsecured debt obligations that
are rated in the highest rating category by each Rating Agency, or is otherwise
acceptable to each Rating Agency.

     Disregarded Entity: An entity that is both (a) solely owned by a REIT or
Qualified REIT Subsidiary and (b) disregarded as an entity separate from its
owner within the meaning of Section 301.7701-2(c)(2) of the Treasury
Regulations.

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

     Euroclear: Euroclear SA/NV, as operator of the Euroclear System.

     Event of Default: The meaning specified in Section 5.01.

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

     Executive Officer: With respect to any corporation or limited liability
company, the Chief Executive Officer, Chief Operating Officer, Chief Financial
Officer, President, Manager, Executive Vice President, any Vice President, the
Secretary or the Treasurer of such entity; and with respect to any partnership,
any general partner thereof.

     Global Securities: The meaning specified in Section 2.01(a).

     Grant: Mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create and grant a lien upon and a security interest
in and a right of set-off against, deposit, set over and confirm pursuant to
this Indenture. A Grant of the Collateral or of any other agreement or
instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the granting party or otherwise and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.

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

     Independent: When used with respect to any specified Person, that such
Person (a) is in fact independent of the Issuer, any other obligor on the Notes,
the Seller and any Affiliate of any of the foregoing Persons, (b) does not have
any direct financial interest or any material indirect financial interest in the
Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons and (c) is not connected with the Issuer, any such other
obligor, the Seller or any Affiliate of any of the foregoing Persons as an
officer, employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

                                       3
<PAGE>

     Independent Certificate: A certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.01, made by an Independent
appraiser or other expert appointed by an Issuer Order in the exercise of
reasonable care, and such opinion or certificate shall state that the signer has
read the definition of "Independent" in this Indenture and that the signer is
Independent within the meaning thereof.

     Issuer: Aegis Asset Backed Securities Trust 2006-1, a Delaware statutory
trust, or any successor and, for purposes of any provision contained herein and
required by the TIA, each other obligor on the Notes.

     Issuer Order or Issuer Request: A written order or request signed in the
name of the Issuer by any one of its Authorized Officers and delivered to the
Indenture Trustee.

     Non-Priority Class Note: As of any date of determination, any Outstanding
Note other than the Priority Class Notes.

     Note: Any of the Class A, Class M or Class N Notes issued pursuant to this
Indenture, substantially in the forms attached hereto as Exhibit A.

     Note Depository Agreement: The agreement dated October 30, 2006, between
the Issuer and The Depository Trust Company, as the initial Clearing Agency,
relating to the Notes.

     Note Owner or Owner: With respect to a Book-Entry Note, the Person that is
the beneficial owner of such Book-Entry Note, as reflected on the books of the
Clearing Agency or on the books of a Person maintaining an account with such
Clearing Agency (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of such Clearing Agency),
and with respect to a Definitive Note, the Person that is the registered owner
of such Note as reflected in the Note Register.

     Note Register and Note Registrar: The respective meanings specified in
Section 2.04. The initial Note Registrar shall be the Administrator.

     Officer's Certificate: A certificate signed by any Authorized Officer of
the Issuer, under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 11.01, and delivered to the Indenture
Trustee. Unless otherwise specified, any reference in this Indenture to an
Officer's Certificate shall be to an Officer's Certificate of any Authorized
Officer of the Issuer.

     Outstanding: As of the date of determination, all Notes theretofore
authenticated and delivered under this Indenture except:

          (i) Notes theretofore cancelled by the Note Registrar or delivered to
     the Note Registrar for cancellation;

          (ii) Notes the payment for which money in the necessary amount has
     been theretofore deposited with the Indenture Trustee or any Paying Agent
     in trust for the Holders of such Notes (provided, however, that if such
     Notes are to be redeemed, notice

                                       4
<PAGE>

     of such redemption has been duly given pursuant to this Indenture or
     provision for such notice has been made, satisfactory to the Indenture
     Trustee and the Administrator); and

          (iii) Notes in exchange for or in lieu of which other Notes have been
     authenticated and delivered pursuant to this Indenture unless proof
     satisfactory to the Indenture Trustee and the Administrator is presented
     that any such Notes are held by a bona fide purchaser;

provided, that in determining whether the Holders of the requisite Outstanding
Balance of the Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any Operative Document, Notes owned
by the Issuer, any other obligor upon the Notes, the Depositor, the Owner
Trustee, the Indenture Trustee, the Master Servicer, the Servicer, the
Administrator or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee or the Administrator shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Notes that the Indenture Trustee or the Administrator has actual
knowledge to be so owned shall be so disregarded (unless such action requires
the consent, waiver, request or demand of 100% of the Outstanding Balance
represented by a particular Class and 100% of the Outstanding Balance
represented by such Class is registered in the name of one or more of the
foregoing entities). Notes so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Indenture Trustee or the Administrator the pledgee's right so to act with
respect to such Notes and that the pledgee is not the Issuer, any other obligor
upon the Notes, the Depositor, the Owner Trustee, the Indenture Trustee, the
Master Servicer, the Servicer, the Administrator or any Affiliate of any of the
foregoing Persons.

     Outstanding Balance: The aggregate principal or notional amount of the
Notes Outstanding as of the date of determination.

     Paying Agent: The Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 6.11 and is
authorized by the Issuer to make payments to and from the Note Payment Account,
including payments of principal of or interest on the Notes on behalf of the
Issuer. Initially, the Paying Agent shall be the Administrator, pursuant to the
terms of the Administration Agreement.

     Predecessor Note: With respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 2.05 in lieu of a mutilated, lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the mutilated, lost,
destroyed or stolen Note.

     Priority Class Note: Until the Class Principal Amounts of the Class A Notes
are reduced to zero and all sums payable to the Holders of the Class A Notes
have been paid in full, the Class A Notes; when the Class Principal Amounts of
the Class A Notes have been reduced to zero and all amounts payable to the
Holders of the Class A Notes have been paid in full, the Class M1 Notes; when
the Class Principal Amounts of the Class A and the Class M1 Notes have been
reduced to zero and all sums payable to the Holders of such Classes have been
paid in full, the

                                       5
<PAGE>

Class M2 Notes; when the Class Principal Amounts of the Class A, Class M1 and
Class M2 Notes have been reduced to zero and all sums payable to the Holders of
such Classes have been paid in full, the Class M3 Notes; when the Class
Principal Amounts of the Class A, Class M1, Class M2 and Class M3 Notes have
been reduced to zero and all sums payable to the Holders of such Classes have
been paid in full, the Class M4 Notes; when the Class Principal Amounts of the
Class A, Class M1, Class M2, Class M3 and Class M4 Notes have been reduced to
zero and all sums payable to the Holders of such Classes have been paid in full,
the Class M5 Notes; when the Class Principal Amounts of the Class A, Class M1,
Class M2, Class M3, Class M4 and Class M5 Notes have been reduced to zero and
all sums payable to the Holders of such Classes have been paid in full, the
Class M6 Notes; when the Class Principal Amounts of the Class A, Class M1, Class
M2, Class M3, Class M4, Class M5 and Class M6 Notes have been reduced to zero
and all sums payable to the Holders of such Classes have been paid in full, the
Class M7 Notes; when the Class Principal Amounts of the Class A, Class M1, Class
M2, Class M3, Class M4, Class M5, Class M6 and Class M7 Notes have been reduced
to zero and all sums payable to the Holders of such Classes have been paid in
full, the Class M8 Notes; when the Class Principal Amounts of the Class A, Class
M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class M7 and Class M8
Notes have been reduced to zero and all sums payable to the Holders of such
Classes have been paid in full, the Class M9 Notes; when the Class Principal
Amounts of the Class A, Class M1, Class M2, Class M3, Class M4, Class M5, Class
M6, Class M7, Class M8 and Class M9 Notes have been reduced to zero and all sums
payable to the Holders of such Classes have been paid in full, the Class M10
Notes; when the Class Principal Amounts of the Class A, Class M1, Class M2,
Class M3, Class M4, Class M5, Class M6, Class M7, Class M8, Class M9 and Class
M10 Notes have been reduced to zero and all sums payable to the Holders of such
Classes have been paid in full, the Class N Notes.

     Proceeding: Any suit in equity, action at law or other judicial or
administrative proceeding.

     Prospective Owner: Each prospective purchaser and any subsequent transferee
of a Note.

     Redemption Date: In the case of a redemption of the Notes pursuant to
Section 10.01, the Payment Date specified by the Administrator on behalf of the
Indenture Trustee in the notice delivered pursuant to Section 10.02.

     Redemption Price: In the case of a redemption of the Notes pursuant to
Section 10.01 hereof, (i) an amount equal to the outstanding Class Principal
Amount of such Notes together with accrued interest thereon (at the applicable
Note Interest Rates), to the extent unpaid and (ii) any unpaid fees and
unreimbursed expenses owed to the Owner Trustee, the Indenture Trustee or the
Administrator.

     Responsible Officer: Any Vice President, any Assistant Vice President, any
Assistant Secretary, any Assistant Treasurer, any Corporate Trust officer or any
other officer of the Indenture Trustee customarily performing functions similar
to those performed by any of the above-designated officers and also, with
respect to a particular matter, any other officer to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject. With respect to the Administrator, any officer in the
corporate trust department or similar group of the Administrator with direct
responsibility for the administration of this

                                       6
<PAGE>

Agreement and also, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his or her knowledge of
and familiarity with the particular subject.

     State: Any one of the 50 States of the United States of America or the
District of Columbia.

     Transfer and Servicing Agreement: The Transfer and Servicing Agreement
dated as of October 1, 2006, among the Issuer, Aegis Asset Backed Securities
Corporation, as depositor, Aegis REIT Corporation, as seller, Wells Fargo Bank,
N.A., as master servicer and administrator, Ocwen Loan Servicing, LLC, as
servicer and Deutsche Bank National Trust Company, as indenture trustee and
custodian, as such may be amended or supplemented from time to time.

     Trust Indenture Act or TIA: The Trust Indenture Act of 1939 as in force on
the date hereof, unless otherwise specifically provided.

     (b) Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used but not otherwise defined herein shall have the
meanings assigned to them in the Transfer and Servicing Agreement.

     Section 1.02. Incorporation by Reference of Trust Indenture Act. (a)
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

     "Commission" means the Securities and Exchange Commission.

     "indenture securities" means the Notes.

     "indenture security holder" means a Noteholder.

     "indenture to be qualified" means this Indenture.

     "indenture trustee" or "institutional trustee" means the Indenture Trustee.

     "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

     (b) All other TIA terms used in this Indenture that are defined in the TIA,
defined by TIA reference to another statute or defined by rule of the Securities
and Exchange Commission have the respective meanings assigned to them by such
definitions.

     Section 1.03. Rules of Construction. Unless the context otherwise requires:

          (i) a term has the meaning assigned to it;

                                       7
<PAGE>

          (ii) an accounting term not otherwise defined has the meaning assigned
     to it in accordance with generally accepted accounting principles as in
     effect from time to time;

          (iii) "or" is not exclusive;

          (iv) "including" means including without limitation;

          (v) words in the singular include the plural and words in the plural
     include the singular;

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

          (vii) terms defined in the UCC and not otherwise defined herein shall
     have the meaning assigned to them in the UCC; and

          (viii) to "U.S. dollars," "dollars," or the sign "$" shall be
     construed as references to United States dollars which are freely
     transferable by residents and non-residents of the United States of America
     and convertible by such persons into any other freely convertible currency
     unless such transferability or convertibility is restricted by any law or
     regulation of general application in which event references to "U.S.
     dollars," "dollars," or the sign "$" shall be construed as references to
     such coin or currency of the United States of America as at the time of
     payment shall be legal tender for the payment of public and private debts
     in the United States of America, and "cents" shall be construed
     accordingly.

                                   ARTICLE II

                                    THE NOTES

     Section 2.01. Form. (a) The Notes shall be designated as the "Aegis Asset
Backed Securities Trust 2006-1 Mortgage Backed Notes." The Notes, together with
the Administrator's certificate of authentication, shall be in substantially the
forms set forth in Exhibit A with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Notes, as evidenced by their
execution of the Notes. Any portion of the text of any Note may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the
Note.

     The Definitive Notes and the global certificates ("Global Securities")
representing the Book-Entry Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

                                       8
<PAGE>

     Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibit A are part of the terms of this Indenture.

     (b) Each Class of Class N Notes offered and sold in reliance on the
exemption from registration under Rule 144A (each such Note, a "Privately
Offered Note") shall be issued initially in the form of one or more permanent
global certificates in definitive, fully registered form with the applicable
legends set forth in Exhibit A added to the forms of such Privately Offered
Notes, which Notes shall be held by the Administrator, on behalf of the
Indenture Trustee, as custodian for the Depository and registered in the name of
a nominee of the Depository, duly executed by the Issuer and authenticated by
the Administrator, on behalf of the Indenture Trustee, as hereinafter provided.

     Section 2.02. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any Authorized Officer of the Owner Trustee.
The signature of any such Authorized Officer on the Notes may be manual or
facsimile.

     Notes bearing the manual or facsimile signature of individuals who were at
any time Authorized Officers of the Owner Trustee or the Administrator shall
bind the Issuer, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such
Notes or did not hold such offices at the date of such Notes.

     The Administrator shall, upon Issuer Order, authenticate and deliver the
Notes for original issue in the aggregate principal or notional amounts with
respect to each Class as specified below:

                     CLASS   CLASS PRINCIPAL AMOUNT
                     -----   ----------------------
                       A1         $179,833,000
                       A2         $183,920,000
                       A3         $ 44,959,000
                       M1         $ 20,475,000
                       M2         $ 18,375,000
                       M3         $ 10,763,000
                       M4         $  9,712,000
                       M5         $  9,188,000
                       M6         $  8,400,000
                       M7         $  7,875,000
                       M8         $  7,087,000
                       M9         $  4,725,000
                      M10         $  5,250,000
                       N          $ 17,500,000

     The aggregate principal amounts of such Classes of Notes outstanding at any
time may not exceed such respective amounts.

                                       9
<PAGE>

     The Notes will each be issued in minimum principal amount denominations of
$100,000 and integral multiples of $1 in excess thereof.

     No Note shall be entitled to any benefit under this Indenture or be valid
or obligatory for any purpose, unless there appears on such Note a certificate
of authentication substantially in the form provided for herein executed by the
Administrator by the manual signature of one of its authorized signatories, and
such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder.

     Section 2.03. Limitations on Transfer of the Notes. (a) No Privately
Offered Note may be offered, sold, delivered or transferred (including, without
limitation, by pledge or hypothecation) except under Rule 144A under the
Securities Act to qualified institutional buyers or "QIBs" purchasing for their
own account. Each Privately Offered Note shall bear a restrictive legend to the
foregoing effect substantially in the form of the legends on the face of the
form of Note at Exhibit A.

     (b) Each Prospective Owner of a Privately Offered Note in the form of a
Book-Entry Note shall be deemed to have represented and warranted, and each
Prospective Owner of a Privately Offered Note in the form of a Definitive Note
shall represent and warrant in writing in substantially the form set forth in
Exhibit B-1 or Exhibit B-2 hereto, as applicable, to the Note Registrar and any
of its successors that:

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

          (ii) Such Person understands that each holder of such Note, by virtue
     of its acceptance thereof, assents to the terms, provisions and conditions
     of this Indenture.

     (c) Subject to subsection (f) below, each Prospective Owner of a Privately
Offered Note in the form of a Book-Entry Note shall be deemed to have
represented and warranted, and each Prospective Owner of a Privately Offered
Note in the form of a Definitive Note shall represent and warrant in writing, in
substantially the form set forth in Exhibit B-1 or Exhibit B-2 hereto, as
applicable, to the Note Registrar and any of its successors that:

          (i) Such Person is a QIB as defined in Rule 144A under the Securities
     Act ("Rule 144A") and is aware that the seller of such Note may be relying
     on the exemption from the registration requirements of the Securities Act
     provided by Rule 144A and is acquiring such Note for its own account or for
     the account of one or more QIBs for whom it is authorized to act; and

          (ii) Such Person understands that such Notes have not been registered
     under the Securities Act, and that, if in the future it decides to offer,
     resell, pledge or otherwise transfer such Notes, such Notes may be offered,
     resold, pledged or otherwise transferred only (A) pursuant to a
     registration statement which has been declared effective under the
     Securities Act or (B) for so long as such Notes are eligible for resale
     pursuant to Rule

                                       10
<PAGE>

     144A under the Securities Act, to a person whom the seller reasonably
     believes is a QIB that is purchasing such Notes for its own account or for
     the account of a QIB to whom notice is given that the transfer is being
     made in reliance on Rule 144A, in each case in compliance with the
     requirements of this Indenture.

     (d) No transfer of a Note in the form of a Definitive Note shall be made
unless the Note Registrar shall have received a representation from the
transferee of such Note, acceptable to and in form and substance satisfactory to
the Note Registrar and the Depositor (such requirement is satisfied only by the
Note Registrar's receipt of a transfer affidavit from the transferee
substantially in the form of Exhibit C hereto), to the effect that such
transferee (i) is not acquiring such note for, or with the assets of, an
employee benefit plan or other retirement arrangement that is subject to Section
406 of ERISA or to Section 4975 of the Code or to any substantially similar law
("Similar Law"), or any entity deemed to hold the plan assets of the foregoing
(collectively, "Benefit Plans"), or (ii) its acquisition and holding of such
Notes for, or with the assets of, a Benefit Plan will not result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
which is not covered under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, the non-fiduciary service
provider exemption under Section 408(b)(17) of ERISA or some other applicable
exemption, and will not result in a non-exempt violation of any Similar Law.

     In the case of a Note that is a Book-Entry Note, for purposes of clauses
(i) or (ii) of the preceding paragraph, such representations shall be deemed to
have been made to the Note Registrar by the transferee's acceptance of such Note
that is also a Book-Entry Note (or the acceptance by a Note Holder of the
beneficial interest in such Note).

     To the extent permitted under applicable law (including, but not limited
to, ERISA), none of the Indenture Trustee, the Administrator, the Note Registrar
or the Depositor shall have any liability to any Person for any registration of
transfer of any Note that is in fact not permitted by this Section 2.03(d) or
for the Indenture Trustee (or any paying agent on its behalf) making any
payments due on such Note 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 Note Registrar in accordance with the foregoing
requirements. In addition, none of the Indenture Trustee, the Administrator, the
Note Registrar or the Depositor shall be required to monitor, determine or
inquire as to compliance with the transfer restrictions with respect to any Note
in the form of a Book-Entry Note, and none of the Indenture Trustee, the
Administrator, the Note Registrar or the Depositor shall have any liability for
transfers of Book-Entry Notes or any interests therein made in violation of the
restrictions on transfer described in the Prospectus and this Agreement.

     In the event that a Note is transferred to a Person that does not meet the
requirements of this Section 2.03, such transfer shall be of no force and
effect, shall be void ab initio, and shall not operate to transfer any rights to
such Person, notwithstanding any instructions to the contrary to the Issuer, the
Indenture Trustee, the Administrator or any intermediary; and none of the
Indenture Trustee, the Administrator or the Issuer shall make any payments on
such Note for as long as such Person is the Holder of such Note.

                                       11
<PAGE>

     The Administrator on behalf of the Indenture Trustee and the Depositor
shall provide to any Holder of a Privately Offered Note (or Note Owner) and any
prospective transferee designated by any such Holder (or Note Owner),
information regarding such Privately Offered Note 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 Note without
registration thereof under the Securities Act pursuant to the registration
exemption provided by Rule 144A. Each Holder of a Privately Offered Note (or
Note Owner) desiring to effect such a transfer shall, and does hereby agree to,
indemnify the Issuer, the Owner Trustee, the Indenture Trustee, the
Administrator and the Depositor against any liability that may result if the
transfer is not so exempt or is not made in accordance with federal and state
securities laws and any other restrictions specified in this Section 2.03. Each
holder of a Privately Offered Note in the form of a Book-Entry Note shall be
deemed to have consented to such transfer restrictions.

     Each Note shall contain a legend substantially similar to the applicable
legend provided in Exhibit A hereto stating that transfer of such Notes is
subject to certain restrictions as set forth herein.

     (e) Any purported transfer of a Note (or any interest therein) not in
accordance with this Section 2.03 shall be null and void and shall not be given
effect for any purpose hereunder.

     (f) Neither the Indenture Trustee nor the Administrator will have the
ability to monitor transfers of the Notes while they are in book-entry form and
neither will have any liability for transfers of Book-Entry Notes in violation
of any of the transfer restrictions described in this Section 2.03.

     Section 2.04. Registration; Registration of Transfer and Exchange. The
Issuer shall cause the Note Registrar to keep a register (the "Note Register")
in which, subject to such reasonable regulations as it may prescribe and the
restrictions on transfers of the Notes set forth herein, the Issuer shall
provide for the registration of Notes and the registration of transfers of
Notes. The Administrator initially shall be the "Note Registrar" for the purpose
of registering Notes and transfers of Notes as herein provided, and the
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times and to obtain copies thereof, and the Indenture Trustee shall
have the right to rely upon a certificate executed on behalf of the Note
Registrar by a Responsible Officer thereof as to the names and addresses of the
Holders of the Notes and the principal amounts and number of such Notes. Upon
any resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties of
Note Registrar.

     If a Person other than the Administrator is appointed by the Issuer as Note
Registrar, the Issuer will give the Indenture Trustee and the Administrator
prompt written notice of the appointment of such Note Registrar and of the
location, and any change in the location, of the Note Register, and the
Indenture Trustee and the Administrator shall have the right to inspect the Note
Register at all reasonable times and to obtain copies thereof, and the Indenture
Trustee and the Administrator shall have the right to rely upon a certificate
executed on behalf of the Note Registrar by an Executive Officer thereof as to
the names and addresses of the Holders of the Notes and the principal amounts
and number of such Notes.

                                       12
<PAGE>

     Subject to Section 2.03, upon surrender for registration of transfer of any
Note at the office or agency of the Issuer to be maintained as provided in
Section 3.02, the Issuer shall execute, and the Administrator on behalf of the
Indenture Trustee shall authenticate and the Noteholder shall be entitled to
obtain from the Administrator on behalf of the Indenture Trustee, in the name of
the designated transferee or transferees, one or more new Notes of the same
Class in any authorized denominations, of a like aggregate principal amount or
Percentage Interest.

     At the option of the Holder, Notes may be exchanged for other Notes of the
same Class in any authorized denominations, of a like aggregate principal amount
or Percentage Interest, upon surrender of the Notes to be exchanged at such
office or agency. Whenever any Notes are so surrendered for exchange, the Issuer
shall execute, and the Indenture Trustee or the Administrator on its behalf
shall authenticate and the Noteholder shall be entitled to obtain from the
Administrator on behalf of the Indenture Trustee, on behalf of the Issuer, the
Notes which the Noteholder making the exchange is entitled to receive.

     All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

     Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Note Registrar duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP.

     No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer or the Note Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Notes, other than exchanges pursuant to Section 2.05 or 9.06 not involving any
transfer.

     The preceding provisions of this Section notwithstanding, the Issuer shall
not be required to make and the Note Registrar need not register transfers or
exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for any payment with respect to such Note.

     Section 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Administrator on behalf of the Indenture
Trustee, or the Administrator on behalf of the Indenture Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, and
(ii) there is delivered to the Administrator on behalf of the Indenture Trustee
such security or indemnity as may be required by it to hold the Issuer, the
Indenture Trustee and the Administrator harmless, then, in the absence of actual
notice to the Issuer or the Note Registrar that such Note has been acquired by a
bona fide purchaser, and upon certification provided by the Holder of such Note
that the requirements of Section 8-405 of the Relevant UCC

                                       13
<PAGE>

are met, the Issuer shall execute, and upon its request the Indenture Trustee or
the Administrator on its behalf shall authenticate and deliver, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement
Note; provided, however, that if any such destroyed, lost or stolen Note, but
not a mutilated Note, shall have become or within seven days shall be due and
payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or payable or upon the Redemption Date without surrender thereof. If, after
the delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of
the original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer and the Indenture Trustee or the
Administrator on its behalf shall be entitled to recover such replacement Note
(or such payment) from the Person to whom it was delivered or any Person taking
such replacement Note from such Person to whom such replacement Note was
delivered or any assignee of such Person, except a bona fide purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor to
the extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee or the Administrator on its behalf in connection therewith.

     Upon the issuance of any replacement Note under this Section, the Issuer or
the Note Registrar may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee or the Administrator on its behalf) connected
therewith.

     Every replacement Note issued pursuant to this Section in replacement of
any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

     Section 2.06. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Administrator, the
Indenture Trustee and any agent of the Issuer, the Administrator or the
Indenture Trustee may treat the Person in whose name any Note is registered (as
of the day of determination) as the owner of such Note for the purpose of
receiving payments of principal of and interest, if any, on such Note and for
all other purposes whatsoever, whether or not such Note be overdue, and none of
the Issuer, the Administrator, the Indenture Trustee or any agent of the Issuer,
the Administrator or the Indenture Trustee shall be affected by notice to the
contrary.

     Section 2.07. Payment of Principal and Interest. (a) Each Class of Notes
shall accrue interest at the Note Interest Rate as set forth in the Transfer and
Servicing Agreement, and such interest shall be payable on each Payment Date,
subject to Section 3.01. Interest shall be computed on each Class of LIBOR Notes
on the basis of a 360-day year and the actual number of days elapsed in each
Accrual Period. Interest shall be computed on each Class of Notes (other

                                       14
<PAGE>

than any Class of LIBOR Notes) on the basis of a 360-day year consisting of
twelve 30-day months. With respect to each outstanding Class of LIBOR Notes, the
Administrator shall determine LIBOR for each applicable Accrual Period on the
LIBOR Determination Date, in accordance with the provisions of the Transfer and
Servicing Agreement. All interest payments on each Class of Notes shall be made
to the Noteholders of each such Class entitled thereto in the order of priority
as set forth in Section 4.1 of the Transfer and Servicing Agreement. Any
installment of interest or principal payable on any Note shall be paid on the
applicable Payment Date to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date by check mailed first-class
postage prepaid to such Person's address as it appears on the Note Register on
such Record Date or, upon written request made to the Paying Agent with a copy
to the Indenture Trustee, if the Indenture Trustee is not the Paying Agent, at
least five Business Days prior to the related Record Date, by the Holder of a
Note having an initial Note Principal Amount of not less than $2,500,000 by wire
transfer in immediately available funds to an account specified in the request
and at the expense of such Noteholder, except that, unless Definitive Notes have
been issued pursuant to Section 2.12, with respect to Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee, except for the final
installment of principal payable with respect to such Note on a Payment Date or
on the applicable Maturity Date for such Class of Notes (and except for the
Redemption Price for any Note called for redemption pursuant to Section 10.01),
which shall be payable as provided below. The funds represented by any such
checks returned undelivered shall be held in accordance with Section 3.03.

     (b) The principal of the Notes shall be payable in installments on each
Payment Date as provided herein and in such Notes, subject to Section 3.01.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable, if not previously paid, on the date on which an Event
of Default shall have occurred and be continuing, if the Indenture Trustee, or
Holders of the Notes representing not less than a majority of the Outstanding
Balance of the Priority Class Notes, have declared the Notes to be immediately
due and payable in the manner provided in Section 5.02. All principal payments
on each Class of Notes shall be made to the Noteholders of each such Class
entitled thereto in the order of priority as set forth in Section 4.1 of the
Transfer and Servicing Agreement. The Indenture Trustee or the Paying Agent on
its behalf, if the Indenture Trustee is not the Paying Agent, shall notify the
Person in whose name a Note is registered at the close of business on the Record
Date preceding the Payment Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice
shall be mailed or transmitted by facsimile no later than five Business Days
prior to such final Payment Date and shall specify that such final installment
will be payable only upon presentation and surrender of such Note and shall
specify the place where such Note may be presented and surrendered for payment
of such installment. Notices in connection with redemptions of Notes shall be
mailed to Noteholders as provided in Section 10.02.

     Section 2.08. Cancellation. All Notes surrendered for payment, registration
of transfer, exchange or redemption shall, if surrendered to any Person other
than the Administrator, be delivered to the Administrator and shall be promptly
cancelled by the Administrator. The Issuer may at any time deliver to the Note
Registrar for cancellation any Notes previously authenticated

                                       15
<PAGE>

and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the
Administrator. No Notes shall be authenticated in lieu of or in exchange for any
Notes cancelled as provided in this Section, except as expressly permitted by
this Indenture. All cancelled Notes may be held or disposed of by the Note
Registrar in accordance with its standard retention or disposal policy as in
effect at the time unless the Issuer shall direct by an Issuer Order that they
be destroyed or returned to it; provided, that such Issuer Order is timely and
the Notes have not been previously disposed of by the Administrator.

     Section 2.09. Release of Collateral. (a) Except as otherwise provided in
subsection (b) of this Section and the terms of the Operative Documents, the
Indenture Trustee shall release property from the lien of this Indenture only
upon receipt by it of an Issuer Request accompanied by (i) an Officer's
Certificate to the effect that such release is permissible under this Indenture,
(ii) an Opinion of Counsel to the same effect, (iii) certificates in accordance
with TIA Sections 314(c) and (d)(1), and (iv)(A) Independent Certificates in
accordance with TIA Sections 314(c) and 314(d)(1) or (B) an Opinion of Counsel
in lieu of such Independent Certificates to the effect that the TIA does not
require any such Independent Certificates; provided that no such Independent
Certificates or Opinion of Counsel in lieu of such Independent Certificates
shall be necessary in respect of property released from the lien of the
Indenture in accordance with the provisions hereof if such property consists
solely of cash.

     (b) The Servicer (or if the Servicer does not do so, the Master Servicer),
on behalf of the Issuer, shall be entitled to obtain a release from the lien of
this Indenture for any Mortgage Loan and the Mortgaged Property at any time (i)
after a payment by the Seller or the Issuer of the Purchase Price of the
Mortgage Loan, (ii) after a Qualified Substitute Mortgage Loan is substituted
for such Mortgage Loan and payment of the Substitution Amount, if any, (iii)
after liquidation of the Mortgage Loan in accordance with the Transfer and
Servicing Agreement and the deposit of all Liquidation Proceeds and Insurance
Proceeds in the Collection Account, (iv) upon the termination of a Mortgage Loan
(due to, among other causes, a prepayment in full of the Mortgage Loan and sale
or other disposition of the related Mortgaged Property), or (v) as contemplated
by Article IX of the Transfer and Servicing Agreement.

     (c) The Indenture Trustee shall, if requested by the Servicer or the Master
Servicer, temporarily release or cause the Custodian temporarily to release to
such party the Mortgage File pursuant to the provisions of Section 3.15 of the
Transfer and Servicing Agreement.

     Section 2.10. Book-Entry Notes. Each Class of Notes will be issued in the
form of typewritten Notes or Global Securities representing Book-Entry Notes, to
be delivered to, or to the Administrator, as custodian for, the initial Clearing
Agency, by, or on behalf of, the Issuer. The Book-Entry Notes shall be
registered initially on the Note Register in the name of Cede & Co., the nominee
of the initial Clearing Agency, and no Owner of Book-Entry Notes thereof will
receive a Definitive Note representing such Note Owner's interest in such
Book-Entry Note, except as provided in Section 2.12. Unless and until
definitive, fully registered Notes (the "Definitive Notes") have been issued to
such Owners of Book-Entry Notes pursuant to Section 2.12:

          (i) the provisions of this Section shall be in full force and effect;

                                       16
<PAGE>

          (ii) the Note Registrar, the Indenture Trustee and the Administrator
     shall be entitled to deal with the Clearing Agency for all purposes of this
     Indenture (including the payment of principal of and interest on the
     Book-Entry Notes and the giving of instructions or directions hereunder) as
     the sole holder of the Book-Entry Notes, and shall have no obligation to
     the Owners of Book-Entry Notes;

          (iii) to the extent that the provisions of this Section conflict with
     any other provisions of this Indenture, the provisions of this Section
     shall control;

          (iv) the rights of Owners of Book-Entry Notes shall be exercised only
     through the Clearing Agency and shall be limited to those established by
     law and agreements between such Owners of Book-Entry Notes and the Clearing
     Agency and/or the Clearing Agency Participants pursuant to the Note
     Depository Agreement. Unless and until Definitive Notes are issued pursuant
     to Section 2.12, the Note Registrar shall not register any transfer of a
     beneficial interest in a Book-Entry Note; and the initial Clearing Agency
     will make book-entry transfers among the Clearing Agency Participants and
     receive and transmit payments of principal of and interest on the
     Book-Entry Notes to such Clearing Agency Participants; and

          (v) whenever this Indenture requires or permits actions to be taken
     based upon instructions or directions of Holders of Notes evidencing a
     specified percentage of the Outstanding Balance of the Notes (or the
     Priority Class Notes), the Clearing Agency shall be deemed to represent
     such percentage only to the extent that it has received instructions to
     such effect from Owners of Book-Entry Notes and/or Clearing Agency
     Participants owning or representing, respectively, such required percentage
     of the beneficial interest in the Book-Entry Notes and has delivered such
     instructions to the Indenture Trustee.

     Section 2.11. Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Owners of Book-Entry Notes
pursuant to Section 2.12, the Administrator shall give all such notices and
communications specified herein to be given to Owners of Book-Entry Notes to the
Clearing Agency, and shall have no obligation to such Note Owners.

     Section 2.12. Definitive Notes. If (i) the Clearing Agency is no longer
willing or able to properly discharge its responsibilities with respect to the
Book-Entry Notes and the Issuer is unable to locate a qualified successor or
(ii) after the occurrence of an Event of Default hereunder, Note Owners of the
Book-Entry Notes representing beneficial interests aggregating at least a
majority of the Outstanding Balance of the Book-Entry Notes advise the Clearing
Agency in writing that the continuation of a book-entry system through the
Clearing Agency is no longer in the best interests of such Note Owners, then the
Clearing Agency shall notify all Owners of Book-Entry Notes, the Indenture
Trustee and the Note Registrar of the occurrence of any such event and of the
availability of Definitive Notes to Owners of Book-Entry Notes requesting the
same. Upon surrender to the Note Registrar of the typewritten Notes representing
the Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Note Registrar shall authenticate
the Definitive Notes in accordance with the instructions of the Clearing Agency.
None of the Issuer, the Note Registrar, the Administrator, or the Indenture
Trustee shall be liable for any delay in delivery of such

                                       17
<PAGE>

instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee
and the Administrator shall recognize the Holders of such Definitive Notes as
Noteholders.

     Section 2.13. Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer secured by the Collateral. The Issuer, by entering
into this Indenture, and each Noteholder, by its acceptance of a Note (and each
applicable Note Owner by its acceptance of an interest in the related Book-Entry
Note), agree to treat the Notes for federal, state and local income, single
business and franchise tax purposes as indebtedness of the Issuer.

                                   ARTICLE III

                                    COVENANTS

     Section 3.01. Payment of Principal and Interest. The Issuer will duly and
punctually pay (or will cause to be duly and punctually paid) the principal of
and interest on, and any other amounts due in respect of, the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting the
foregoing, in accordance with Section 8.02(c), the Issuer will cause to be
distributed all amounts on deposit in the Note Payment Account on a Payment Date
and deposited therein pursuant to the Transfer and Servicing Agreement for the
benefit of the Notes, to the Noteholders. Amounts properly withheld under the
Code by any Person from a payment to any Noteholder of interest and/or principal
shall be considered as having been paid by the Issuer to such Noteholder for all
purposes of this Indenture.

     The Notes shall be non-recourse obligations of the Issuer and shall be
limited in right of payment to amounts available from the Collateral as provided
in this Indenture. The Issuer shall not otherwise be liable for payments of the
Notes, and none of the owners, agents, officers, directors, employees, or
successors or assigns of the Issuer shall be personally liable for any amounts
payable, or performance due, under the Notes or this Indenture. If any other
provision of this Indenture shall be deemed to conflict with the provisions of
this Section 3.01, the provisions of this Section 3.01 shall control.

     Section 3.02. Maintenance of Office or Agency. The Note Registrar on behalf
of the Issuer will maintain an office or agency where Notes may be surrendered
for registration of transfer or exchange, and where notices and demands to or
upon the Issuer in respect of the Notes and this Indenture may be served.

     Section 3.03. Money for Payments to be Held in Trust. As provided in
Section 8.02, all payments of amounts due and payable with respect to any Notes
that are to be made from amounts withdrawn from the Note Payment Account
pursuant to Sections 3.5 and 4.1 of the Transfer and Servicing Agreement shall
be made on behalf of the Issuer by the Administrator on behalf of the Indenture
Trustee or by another Paying Agent, and no amounts so withdrawn from the such
account for payments of Notes shall be paid over to the Issuer except as
provided in this Section.

                                       18
<PAGE>

     On or before the Business Day preceding each Payment Date, the Issuer shall
deposit or cause to be deposited in the Note Payment Account an aggregate sum
sufficient to pay the amounts then becoming due under the Notes, such sum to be
held in trust for the benefit of the Persons entitled thereto, and (unless the
Paying Agent is the Indenture Trustee) shall promptly notify the Indenture
Trustee of failure so to act.

     The Administrator is hereby appointed the initial Paying Agent. Any
successor Paying Agent shall be appointed by Issuer Order with written notice
thereof to the Indenture Trustee and the Administrator. Any Paying Agent
appointed by the Issuer shall be a Person that would be eligible to be Indenture
Trustee hereunder as provided in Section 6.11. The Issuer shall not appoint any
Paying Agent (other than the Indenture Trustee or the Administrator) that is
not, at the time of such appointment, a Depository Institution.

     The Issuer shall cause each Paying Agent other than the Indenture Trustee
or the Administrator, as initial Paying Agent, to execute and deliver to the
Indenture Trustee and the Administrator an instrument in which such Paying Agent
shall agree with the Indenture Trustee (and if the Indenture Trustee or the
Administrator acts as Paying Agent, it hereby so agrees), subject to the
provisions of this Section, that such Paying Agent will:

          (i) hold all sums held by it for the payment of amounts due with
     respect to the Notes in trust for the benefit of the Persons entitled
     thereto until such sums shall be paid to such Persons or otherwise disposed
     of as herein provided and pay such sums to such Persons as herein provided
     and as is provided in the Transfer and Servicing Agreement;

          (ii) give the Indenture Trustee notice of any default by the Issuer of
     which the Paying Agent has actual knowledge in the making of any payment
     required to be made with respect to the Notes;

          (iii) at any time during the continuance of any such default, upon the
     written request of the Indenture Trustee, forthwith pay to the
     Administrator all sums so held in trust by such Paying Agent;

          (iv) immediately resign as a Paying Agent and forthwith pay to the
     Administrator all sums held by it in trust for the payment of Notes if at
     any time it ceases to meet the standards required to be met by a Paying
     Agent at the time of its appointment; and

          (v) comply with all requirements of the Code with respect to the
     withholding from any payments made by it on any Notes of any applicable
     withholding taxes imposed thereon and with respect to any applicable
     reporting requirements in connection therewith; provided, however, that
     with respect to reporting requirements applicable to original issue
     discount, the accrual of market discount or the amortization of premium on
     the Notes, the Issuer shall have first provided the calculations pertaining
     thereto and the amount of any resulting withholding taxes to the
     Administrator and the Paying Agent.

     The Issuer may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, by Issuer Order direct
any Paying Agent to pay to the Administrator all sums held in trust by such
Paying Agent, such sums to be held by the

                                       19
<PAGE>

Administrator upon the same trusts as those upon which the sums were held by
such Paying Agent; and upon such payment by any Paying Agent to the
Administrator, such Paying Agent shall be released from all further liability
with respect to such money.

     Subject to applicable laws with respect to escheat of funds, any money held
by the Paying Agent in trust for the payment of any amount due with respect to
any Note and remaining unclaimed for two years after such amount has become due
and payable shall be discharged from such trust and be paid to the Issuer on
Issuer Request; and the Holder of such Note shall thereafter, as an unsecured
general creditor, look only to the Issuer for payment thereof (but only to the
extent of the amounts so paid to the Issuer), and all liability of the Paying
Agent with respect to such trust money shall thereupon cease; provided, however,
that the Paying Agent, before being required to make any such repayment, shall
at the expense and direction of the Issuer cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in The City of New York (including, but
not limited to, The Bond Buyer), notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Issuer. The Paying Agent shall also adopt and employ, at
the expense and direction of the Issuer, any other reasonable means of
notification of such repayment (including, but not limited to, mailing notice of
such repayment to Holders whose Notes have been called but have not been
surrendered for redemption or whose right to or interest in moneys due and
payable but not claimed is determinable from the records of the Paying Agent, at
the last address of record for each such Holder).

     Section 3.04. Existence. (a) The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States of
America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Collateral.

     (b) Any successor to the Owner Trustee appointed pursuant to Section 9.03
of the Trust Agreement shall be the successor Owner Trustee under this Indenture
without the execution or filing of any paper, instrument or further act to be
done on the part of the parties hereto.

     (c) Upon any consolidation or merger of or other succession to the Owner
Trustee, the Person succeeding to the Owner Trustee under the Trust Agreement
may exercise every right and power of the Owner Trustee under this Indenture
with the same effect as if such Person had been named as the Owner Trustee
herein.

     Section 3.05. Protection of Collateral. The Issuer will from time to time
execute, deliver and file all such supplements and amendments hereto and all
such financing statements, continuation statements, instruments of further
assurance and other instruments, and will take such other action necessary or
advisable to:

                                       20
<PAGE>

          (i) maintain or preserve the lien and security interest (and the
     priority thereof) of this Indenture or carry out more effectively the
     purposes hereof,

          (ii) perfect, publish notice of or protect the validity of any Grant
     made or to be made by this Indenture;

          (iii) enforce any rights with respect to the Collateral; or

          (iv) preserve and defend title to the Collateral and the rights of the
     Indenture Trustee and the Noteholders in such Collateral against the claims
     of all persons and parties.

     The Issuer hereby authorizes the Administrator to file in any filing office
any financing statement, amendment to financing statement (to the extent a
Responsible Officer of the Administrator has actual knowledge or receives
written notice that an amendment is required to be filed) or continuation
statement required to be executed pursuant to this Section 3.05.

     Section 3.06. Opinions as to Collateral. On the Closing Date, the Issuer
shall furnish to the Administrator and the Indenture Trustee an Opinion of
Counsel to the effect that either, in the opinion of such counsel, such action
has been taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with
respect to the execution and filing of any financing statements and continuation
statements, as are necessary to make effective the lien and security interest of
this Indenture, or stating that, in the opinion of such counsel, no such action
is necessary to make such lien and security interest effective.

     Section 3.07. Performance of Obligations. (a) The Issuer will not take any
action and will use its best efforts not to permit any action to be taken by
others that would release any Person from any of such Person's material
covenants or obligations under any instrument or agreement included in the
Collateral or that would result in the amendment, hypothecation, subordination,
termination or discharge of, or impair the validity or effectiveness of, any
such instrument or agreement, except as expressly provided in this Indenture,
the Transfer and Servicing Agreement or such other instrument or agreement.

     (b) The Issuer may contract with other Persons to assist it in performing
its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer's Certificate of the Issuer
shall be deemed to be action taken by the Issuer. Initially, the Issuer has
contracted with the Administrator to assist the Issuer in performing its duties
under this Indenture.

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Operative Documents and in the
instruments and agreements included in the Collateral, including but not limited
to filing or causing to be filed all financing statements and continuation
statements required to be filed by the terms of this Indenture and the Transfer
and Servicing Agreement in accordance with and within the time periods provided
for herein and therein.

                                       21
<PAGE>

     (d) If a responsible officer of the Owner Trustee shall have written notice
or actual knowledge of the occurrence of an Event of Default under the Transfer
and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee
and each Rating Agency thereof.

     (e) As promptly as possible after the giving of notice of termination to
the Master Servicer of the Master Servicer's rights and powers pursuant to
Section 7.1(f) of the Transfer and Servicing Agreement, the Indenture Trustee
shall proceed in accordance with Section 7.1(f) and 7.2 of the Transfer and
Servicing Agreement.

     (f) Without derogating from the absolute nature of the assignment granted
to the Indenture Trustee under this Indenture or the rights of the Indenture
Trustee hereunder, the Issuer agrees (i) that it will not, without the prior
written consent of the Holders of at least a majority in Outstanding Balance or
Percentage Interest of the Notes affected thereby, amend, modify, waive,
supplement, terminate or surrender, or agree to any amendment, modification,
supplement, termination, waiver or surrender of, the terms of any Collateral or
the Operative Documents (except to the extent otherwise provided in any such
Operative Document), or waive timely performance or observance by the
Administrator, the Master Servicer, the Servicer or the Depositor of its
respective duties under the Transfer and Servicing Agreement; and (ii) that any
such amendment shall not (A) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, payments that are required to be made for the
benefit of the Noteholders or (B) reduce the aforesaid percentage of the Notes
that is required to consent to any such amendment, without the consent of the
Holders of all the Outstanding Notes affected thereby. If any such amendment,
modification, supplement or waiver shall be so consented to by such Holders, the
Issuer agrees, promptly to execute and deliver, in its own name and at its own
expense, such agreements, instruments, consents and other documents as may be
deemed necessary or appropriate in the circumstances.

     Section 3.08. Negative Covenants. So long as any Notes are Outstanding, the
Issuer shall not:

          (i) except as expressly permitted by this Indenture, the Sale
     Agreement or the Transfer and Servicing Agreement, sell, transfer, exchange
     or otherwise dispose of any of the properties or assets of the Issuer,
     including those included in the Collateral, unless directed to do so by the
     Indenture Trustee;

          (ii) claim any credit on, or make any deduction from the principal,
     interest or other amounts payable in respect of, the Notes (other than
     amounts properly withheld from such payments under the Code) or assert any
     claim against any present or former Noteholder by reason of the payment of
     the taxes levied or assessed upon any part of the Collateral;

          (iii) (A) permit the validity or effectiveness of this Indenture to be
     impaired, or permit the lien of this Indenture to be amended, hypothecated,
     subordinated, terminated or discharged, or permit any Person to be released
     from any covenants or obligations with respect to the Notes under this
     Indenture except as may be expressly permitted hereby, (B) permit any lien,
     charge, excise, claim, security interest, mortgage or other

                                       22
<PAGE>

     encumbrance (other than the lien of this Indenture) to be created on or
     extend to or otherwise arise upon or burden the Collateral or any part
     thereof or any interest therein or the proceeds thereof (other than tax
     liens, mechanics' liens and other liens that arise by operation of law, in
     each case with respect to any Collateral and arising solely as a result of
     an action or omission of a Borrower or as otherwise permitted in the
     Transfer and Servicing Agreement) or (C) permit the lien of this Indenture
     not to constitute a valid first priority (other than with respect to any
     such tax, mechanics' or other lien) or as otherwise permitted in the
     Transfer and Servicing Agreement) security interest in the Collateral;

          (iv) dissolve or liquidate in whole or in part or merge or consolidate
     with any other Person;

          (v) remove the Administrator without cause unless the Rating Agency
     Condition shall have been satisfied in connection with such removal;

          (vi) take any action or fail to take any action that would jeopardize
     the status of the Holder of the Ownership Certificates as a REIT, a
     Qualified REIT Subsidiary or a Disregarded Entity under the Code or result
     in an imposition of tax on the Issuer; or

          (vii) except with the prior written consent of the Noteholders, take
     any action described in Section 5.06 of the Trust Agreement.

     Section 3.09. Annual Statement as to Compliance. The Issuer will deliver to
the Indenture Trustee, within 120 days after the end of each fiscal year of the
Issuer (commencing with the fiscal year 2006), an Officer's Certificate stating,
as to the Authorized Officer signing such Officer's Certificate, that:

          (i) a review of the activities of the Issuer during such year and of
     its performance under this Indenture has been made under such Authorized
     Officer's supervision; and

          (ii) to the best of such Authorized Officer's knowledge, based on such
     review, the Issuer has complied with all conditions and covenants under
     this Indenture throughout such year or, if there has been a default in its
     compliance with any such condition or covenant, specifying each such
     default known to such Authorized Officer and the nature and status thereof.

     Section 3.10. Treatment of Notes as Debt for Tax Purposes. The Issuer
shall, and shall cause the Administrator and the Master Servicer to, treat the
Notes as indebtedness for all federal, state and local tax purposes.

     Section 3.11. [Reserved]

     Section 3.12. No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the
Collateral in the manner contemplated by this Indenture and the Operative
Documents and activities incidental thereto.

                                       23
<PAGE>

     Section 3.13. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness other than the Notes.

     Section 3.14. [Reserved]

     Section 3.15. Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by the Transfer and Servicing Agreement or this Indenture, the
Issuer shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuring another's
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

     Section 3.16. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

     Section 3.17. Removal of Administrator. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
the Issuer has received a letter from each Rating Agency to the effect that such
removal will not cause the then-current ratings on the Notes to be qualified,
reduced or withdrawn.

     Section 3.18. Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any payment (by reduction of capital or
otherwise), whether in cash, property, securities or a combination thereof, to
the Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any
such ownership or equity interest or security or (iii) set aside or otherwise
segregate any amounts for any such purpose; provided, however, the Issuer may
make, or cause to be made, payments and distributions as contemplated by, and to
the extent funds are available for such purpose under, the Transfer and
Servicing Agreement, the Swap Agreement, the Cap Agreement, this Indenture or
the Trust Agreement. The Issuer will not, directly or indirectly, make payments
to or from the Collection Account except in accordance with this Indenture and
the Operative Documents.

     Section 3.19. Notice of Events of Default. The Issuer shall promptly, and
in no event more than three Business Days following such event, give the
Indenture Trustee, the Administrator and each Rating Agency written notice of
each Event of Default hereunder, and each default on the part of the
Administrator, the Master Servicer, the Servicer or the Depositor of its
obligations under the Transfer and Servicing Agreement, to the extent a
responsible officer of the Owner Trustee shall have written notice or actual
knowledge thereof.

     Section 3.20. Further Instruments and Acts. Upon request of the Indenture
Trustee, or the Administrator the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Indenture.

     Section 3.21. Covenants of the Issuer. All covenants of the Issuer in this
Indenture are covenants of the Issuer and are not covenants of the Owner Trustee
in its individual capacity.

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<PAGE>

The Owner Trustee is, and any successor Owner Trustee under the Trust Agreement
will be, executing this Indenture on behalf of the Issuer solely as Owner
Trustee under the Trust Agreement and not in its respective individual capacity,
and in no case whatsoever shall the Owner Trustee or any such successor Owner
Trustee be personally liable on, or for any loss in respect of, any of the
statements, representations, warranties or obligations of the Issuer hereunder,
as to all of which the parties hereto agree to look solely to the property of
the Issuer.

     Section 3.22. Representations and Warranties of the Issuer. (a) With
respect to the Mortgage Notes, the Issuer represents and warrants that:

          (i) This Indenture creates a valid and continuing security interest
     (as defined in the applicable Uniform Commercial Code (the "UCC")) in the
     Mortgage Notes in favor of the Indenture Trustee, which security interest
     is prior to all other liens, and is enforceable as such against creditors
     of and purchasers from the Issuer;

          (ii) The Mortgage Notes constitute (or will constitute) "instruments"
     within the meaning of the applicable UCC;

          (iii) The Issuer owns (or will own) and has (or will have) good title
     to the Mortgage Notes free and clear of any lien, claim or encumbrance of
     any Person;

          (iv) The Issuer has (or will have) received all consents and approvals
     required by the terms of the Mortgage Notes to the pledge of the Mortgage
     Notes hereunder to the Indenture Trustee;

          (v) All original executed copies of each Mortgage Note have been or
     will be delivered to the Indenture Trustee (or its custodian), as set forth
     in the Transfer and Servicing Agreement;

          (vi) The Issuer has (or will have) received a written acknowledgement
     from the Indenture Trustee (or its custodian) that it is holding the
     Mortgage Notes solely on behalf and for the benefit of the Indenture
     Trustee;

          (vii) Other than the security interest granted to the Indenture
     Trustee pursuant to this Indenture, the Issuer has not pledged, assigned,
     sold, granted a security interest in, or otherwise conveyed any of the
     Mortgage Notes. The Issuer has not authorized the filing of and is not
     aware of any financing statements against the Issuer that include a
     description of the collateral covering the Mortgage Notes other than a
     financing statement relating to the security interest granted to the
     Indenture Trustee hereunder or that has been terminated. The Issuer is not
     aware of any judgment or tax lien filings against the Issuer; and

          (viii) None of the Mortgage Notes has any marks or notations
     indicating that they have been pledged, assigned or otherwise conveyed to
     any Person other than the Indenture Trustee.

     (b) With respect to each of the Swap Agreement and the Cap Agreement, the
Issuer represents and warrants that:

                                       25
<PAGE>

          (i) This Indenture creates a valid and continuing security interest
     (as defined in the applicable UCC) in each of the Swap Agreement and the
     Cap Agreement in favor of the Indenture Trustee, which security interest is
     prior to all other liens, and is enforceable as such against creditors of
     and purchasers from the Issuer;

          (ii) Each of the Swap Agreement and the Cap Agreement constitutes (or
     will constitute) "general intangibles," within the meaning of the
     applicable UCC;

          (iii) The Issuer owns (or will own) and has (or will have) good title
     to each of the Swap Agreement and the Cap Agreement free and clear of any
     lien, claim or encumbrance of any Person;

          (iv) The Issuer has (or will have) received all consents and approvals
     required by the terms of each of the Swap Agreement and the Cap Agreement
     to the pledge of such agreement hereunder to the Indenture Trustee;

          (v) The Issuer has caused or will have caused, within ten days, the
     filing of all appropriate financing statements in the proper filing office
     in the appropriate jurisdictions under applicable law in order to perfect
     the security interest in each of the Swap Agreement and the Cap Agreement
     granted to the Indenture Trustee hereunder; and

          (vi) Other than the security interest granted to the Indenture Trustee
     pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
     granted a security interest in, or otherwise conveyed the Swap Agreement or
     the Cap Agreement. The Issuer has not authorized the filing of and is not
     aware of any financing statements against the Issuer that include a
     description of collateral covering any of the Swap Agreement or the Cap
     Agreement other than a financing statement relating to the security
     interest granted to the Indenture Trustee hereunder or that has been
     terminated. The Issuer is not aware of any judgment or tax filings against
     the Issuer.

     (c) The representations and warranties set forth in this Section 3.22 shall
survive the Closing Date and shall not be waived.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

     Section 4.01. Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further effect with respect to the Notes, except as to (i) rights
of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) the rights and immunities of the
Indenture Trustee hereunder (including the rights of the Indenture Trustee under
Section 6.07) and the obligations of the Indenture Trustee, the Administrator
and the Paying Agent, as applicable, under Sections 3.03 and 4.02 and (v) the
rights of Noteholders as beneficiaries hereof with respect to the property so
deposited with the Administrator payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes,

                                       26
<PAGE>

when either (I) the Transfer and Servicing Agreement has been terminated
pursuant to Article IX thereof or (II)

     (A) either

          (1) all Notes theretofore authenticated and delivered (other than (i)
Notes that have been destroyed, lost or stolen and that have been replaced or
paid as provided in Section 2.05 and (ii) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Administrator for
cancellation; or

          (2) all Notes not theretofore delivered to the Administrator for
cancellation

               (a) have become due and payable,

               (b) will become due and payable at the applicable Maturity Date
          within one year, or

               (c) are to be called for redemption within one year under
          arrangements satisfactory to the Administrator for the giving of
          notice of redemption by the Administrator in the name, and at the
          expense, of the Issuer,

and the Issuer, in the case of (a), (b) or (c) above, has irrevocably deposited
or caused to be irrevocably deposited with the Administrator cash or direct
obligations of or obligations guaranteed by the United States of America (which
will mature prior to the date such amounts are payable), in trust for such
purpose, in an amount sufficient to pay and discharge the entire indebtedness on
such Notes not theretofore delivered to the Administrator or the Note Registrar
for cancellation when due to the Maturity Date or Redemption Date (if the Notes
are called for redemption pursuant to Section 10.01 hereof), as the case may be;

     (B) the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer;

     (C) the Issuer has delivered to the Indenture Trustee an Officer's
Certificate and an Opinion of Counsel (at the Issuer's expense) and (if required
by the TIA or the Indenture Trustee) an Independent Certificate from a firm of
certified public accountants, each meeting the applicable requirements of
Section 11.01 hereof and, subject to Section 11.02 hereof, each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture with respect to the Notes have been complied with;
and

     (D) the Issuer has delivered to each Rating Agency notice of such
satisfaction and discharge.

     Section 4.02. Application of Trust Money. All moneys deposited with the
Administrator pursuant to Sections 3.03 and 4.01 hereof shall be held in trust
and applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent, as the
Administrator may determine, to the Holders of the

                                       27
<PAGE>

particular Notes for the payment or redemption of which such moneys have been
deposited with the Administrator, of all sums due and to become due thereon for
principal and interest; but such moneys need not be segregated from other funds
except to the extent required herein or in the Transfer and Servicing Agreement
or required by law.

     Section 4.03. Repayment of Moneys Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
moneys then held by any Paying Agent other than the Administrator under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Administrator to be held and applied according to
Section 3.03 and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

     Section 4.04. Trust Money Received by Indenture Trustee. If the Indenture
Trustee receives any moneys in respect of the Collateral (other than with
respect to any amounts in respect of any payments or reimbursements of fees,
expenses or indemnity amounts properly owing to the Indenture Trustee pursuant
to the terms of any of the Operative Documents), the Indenture Trustee shall
remit such funds promptly to the Administrator.

     Section 4.05. Reporting Requirements of the Commission.

     If at any time the Paying Agent is a party other than the Administrator,
the Paying Agent shall provide the assessments, attestations, certificates and
other notices required by this section 4.05, provided that the obligation of the
Paying Agent to provide assessments of compliance and attestations under this
Section 4.05 shall be suspended upon the filing of a Form 15 suspension notice
on behalf of the Trust until such time that Exchange Act reporting obligations
are triggered by a subsequent public offering of any Retained Notes and written
notification thereof to the Paying Agent. Notwithstanding the foregoing after
the occurrence of such event and provided the Depositor is not otherwise
provided with such reports or copies of such reports, the Paying Agent shall be
obligated to provide a copy of such reports by March 15 of each year to the
Depositor.

     (a) Assessment of Compliance.

          (i) By March 15 of each year, commencing in March 2007, the Paying
     Agent, at its own expense, shall furnish, and shall cause any Subservicer
     or Subcontractor engaged by it to furnish, at its own expense, to AMC, the
     Depositor, the Owner Trustee and the Administrator, a report on an
     assessment of compliance with the Relevant Servicing Criteria as set forth
     on Exhibit K to the Transfer and Servicing Agreement that contains (A) a
     statement by such party of its responsibility for assessing compliance with
     the Relevant Servicing Criteria, (B) a statement that such party used the
     Servicing Criteria to assess compliance with the Relevant Servicing
     Criteria, (C) such party's assessment of compliance with the Relevant
     Servicing Criteria as of and for the fiscal year covered by the Form 10-K
     required to be filed pursuant to Section 7.3(d) of the Transfer and
     Servicing Agreement, including, if there has been any material instance of
     noncompliance with the Relevant Servicing Criteria, a discussion of each
     such failure and the nature and status thereof, and (D) a statement that a
     registered public accounting firm has issued an attestation report on such
     party's assessment of compliance with the

                                       28
<PAGE>

     Relevant Servicing Criteria as of and for such period. The Depositor may
     rely on such certification provided by the Paying Agent in signing a
     Sarbanes Certification and causing such certification to be filed with the
     Commission.

          (ii) When the Paying Agent (and any Subservicer or Subcontractor
     engaged by such party) submit their assessments, such parties will also at
     such time include the assessment (and attestation pursuant to subsection
     (b) of this Section 4.05) of each Subservicer or Subcontractor engaged by
     such party and shall indicate what Relevant Servicing Criteria will be
     addressed in any such reports prepared by any such Subservicer or
     Subcontractor.

     (b) By March 15 of each year, commencing in March 2007, the Paying Agent,
at its own expense, shall cause, and shall cause any Subservicer or
Subcontractor engaged by it to cause, at its own expense, a registered public
accounting firm (which may also render other services to the Administrator) that
is a member of the American Institute of Certified Public Accountants to furnish
a report to AMC, the Depositor, the Administrator and the Owner Trustee, to the
effect that (A) it has obtained a representation regarding certain matters from
the management of such party, which includes an assertion that such party has
complied with the Relevant Servicing Criteria, and (B) on the basis of an
examination conducted by such firm in accordance with standards for attestation
engagements issued or adopted by the PCAOB, it is expressing an opinion as to
whether such party's compliance with the Relevant Servicing Criteria was fairly
stated in all material respects, or it cannot express an overall opinion
regarding such party's assessment of compliance with the Relevant Servicing
Criteria. In the event that an overall opinion cannot be expressed, such
registered public accounting firm shall state in such report why it was unable
to express such an opinion. Such report must be available for general use and
not contain restricted use language.

     (c) The Paying Agent shall promptly notify AMC, the Owner Trustee, the
Indenture Trustee, the Administrator and the Depositor (i) of any legal
proceedings pending against the Paying Agent of the type described in Item 1117
(Section 229.1117) of Regulation AB and (ii) if the Paying Agent shall become
(but only to the extent not previously disclosed to the Master Servicer and the
Depositor) at any time an affiliate of any of the parties listed on Exhibit L to
the Transfer and Servicing Agreement.

     (d) The Paying Agent shall give prior written notice to AMC, the Owner
Trustee, the Indenture Trustee, the Administrator and the Depositor of the
appointment of any Subcontractor by such party and a written description (in
form and substance satisfactory to AMC and the Depositor) of the role and
function of each Subcontractor utilized by such party specifying (A) the
identity of each such Subcontractor and (B) which elements of the servicing
criteria set forth under Item 1122(d) of Regulation AB will be addressed in
assessments of compliance provided by each such Subcontractor. The Paying Agent
agrees to indemnify AMC, the Depositor, the Indenture Trustee, the Issuer, the
Administrator and the Master Servicer, and each of their respective directors,
officers, employees and agents and hold each of them harmless from and against
any losses, damages, penalties, fines, forfeitures, legal fees and expenses and
related costs, judgments, and any other costs, fees and expenses that any of
them may sustain arising out of or based upon the engagement of any
Subcontractor in violation of this subsection or any

                                       29
<PAGE>

failure by the Paying Agent, to deliver any information, report, certification,
accountants' letter or other material when and as required under this Section
11.

     (e) The Paying Agent shall deliver (and shall cause any Additional Servicer
engaged by it to deliver) to the Depositor, the Administrator, the Indenture
Trustee and the Owner Trustee on or before March 15 of each year, commencing on
March 15, 2007, an Officer's Certificate, certifying that with respect to the
period ending December 31 of the prior year: (i) such Servicing Officer has
reviewed the activities of such party during the preceding calendar year or
portion thereof and its performance under this Agreement, or such other
applicable agreement in the case of an Additional Servicer, (ii) to the best of
such Servicing Officer's knowledge, based on such review, the Paying Agent has
performed and fulfilled its duties, responsibilities and obligations under this
Agreement, or such other applicable agreement in the case of an Additional
Servicer, in all material respects throughout such year, or, if there has been a
default in the fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof, (iii) nothing has come to the attention of such Servicing
Officer to lead such Servicing Officer to believe that the Paying Agent has
failed to perform any of its duties, responsibilities and obligations under this
Agreement, or such other applicable agreement in the case of an Additional
Servicer, in all material respects throughout such year, or, if there has been a
material default in the performance or fulfillment of any such duties,
responsibilities or obligations, specifying each such default known to such
Servicing Officer and the nature and status thereof.

                                    ARTICLE V

                                    REMEDIES

     Section 5.01. Events of Default. "Event of Default," wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

          (i) Default for one month or more in the payment of any Accrued Note
     Interest on the Notes when the same becomes due and payable under Section
     4.1 of the Transfer and Servicing Agreement;

          (ii) failure to pay the entire principal of any Note when the same
     becomes due and payable under the Transfer and Servicing Agreement or on
     the applicable Maturity Date;

          (iii) failure to observe or perform any covenant or agreement of the
     Issuer made in this Indenture (other than a covenant or agreement, a
     default in the observance or performance of which is elsewhere in this
     Section specifically dealt with), or any representation or warranty of the
     Issuer made in this Indenture or in any certificate or other writing
     delivered pursuant hereto or in connection herewith proving to have been
     incorrect in any material respect as of the time when the same shall have
     been made, and such default shall continue or not be cured, or the
     circumstance or condition in respect of which such misrepresentation or
     warranty was incorrect shall not have been eliminated or

                                       30
<PAGE>

     otherwise cured, for a period of 30 days after there shall have been given,
     by registered or certified mail, to the Issuer by the Indenture Trustee or
     to the Issuer and the Indenture Trustee by the Holders of at least 25% of
     the Outstanding Balance of the Notes, a written notice specifying such
     default or incorrect representation or warranty and requiring it to be
     remedied and stating that such notice is a notice of Default hereunder;

          (iv) the filing of a decree or order for relief by a court having
     jurisdiction in the premises in respect of the Issuer or any substantial
     part of the Collateral in an involuntary case under any applicable federal
     or state bankruptcy, insolvency or other similar law now or hereafter in
     effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
     sequestrator or similar official of the Issuer or for any substantial part
     of the Collateral, or ordering the winding-up or liquidation of the
     Issuer's affairs, and such decree or order shall remain unstayed and in
     effect for a period of 60 consecutive days;

          (v) the receipt of notice from the Holder of the Ownership
     Certificates to the Indenture Trustee of such Holder's failure to qualify
     as a REIT, a Qualified REIT Subsidiary or a Disregarded Entity; or

          (vi) the commencement by the Issuer of a voluntary case under any
     applicable federal or state bankruptcy, insolvency or other similar law now
     or hereafter in effect, or the consent by the Issuer to the entry of an
     order for relief in an involuntary case under any such law, or the consent
     by the Issuer to the appointment or taking possession by a receiver,
     liquidator, assignee, custodian, trustee, sequestrator or similar official
     of the Issuer or for any substantial part of the Collateral, or the making
     by the Issuer of any general assignment for the benefit of creditors, or
     the failure by the Issuer generally to pay its debts as such debts become
     due, or the taking of any action by the Issuer in furtherance of any of the
     foregoing.

     The Issuer shall deliver to the Indenture Trustee, within five days after
the occurrence thereof, written notice in the form of an Officer's Certificate
of any event which with the giving of notice and the lapse of time would become
an Event of Default under clause (iii), its status and what action the Issuer is
taking or proposes to take with respect thereto.

     Section 5.02. Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee may, or shall, at the direction of the Holders of Notes
representing not less than a majority of the Outstanding Balance of the Priority
Class Notes, declare all the Notes to be immediately due and payable, by a
notice in writing to the Issuer (and to the Indenture Trustee if given by
Noteholders), and upon any such declaration the unpaid principal amount of such
Notes, together with accrued and unpaid interest on the Notes through the date
of acceleration, shall become immediately due and payable.

     At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V, provided the
Holders of Notes representing a majority of the

                                       31
<PAGE>

Outstanding Balance of the Priority Class Notes, by written notice to the Issuer
and the Indenture Trustee, may rescind and annul such declaration and its
consequences if:

          (i) the Issuer has paid or deposited with the Administrator a sum
     sufficient to pay:

               (A) all payments of principal of and interest on all affected
          Priority Class Notes and all other amounts that would then be due
          hereunder or upon such Notes if the Event of Default giving rise to
          such acceleration had not occurred; and

               (B) all sums paid or advanced by the Indenture Trustee hereunder
          and the reasonable compensation, expenses, disbursements and advances
          of the Indenture Trustee and its agents and counsel; and

          (ii) all Events of Default, other than the nonpayment of the principal
     of the Notes that has become due solely by such acceleration, have been
     cured or waived as provided in Section 5.12.

No such rescission shall affect any subsequent default or impair any right
consequent thereto.

     The Holders of Non-Priority Class Notes shall have no right to exercise any
Noteholders' rights referred to in this Article V, except to the extent
expressly provided herein.

     Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in the
payment of any Accrued Note Interest on any Note when the same becomes due and
payable, and such default continues for a period of five days, or (ii) default
is made in the payment of the principal of any Note when the same becomes due
and payable on the applicable Maturity Date, the Issuer will, upon demand of the
Indenture Trustee, pay to the Administrator, for the benefit of the Holders of
the Notes, the whole amount then due and payable on such Notes for principal and
interest, with interest on the overdue principal and, to the extent payment at
such rate of interest shall be legally enforceable, on overdue installments of
interest at the rate borne by such Notes and, in addition thereto, pay to the
Indenture Trustee such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

     (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding for the collection of the sums so due and
unpaid, and may prosecute such Proceeding to judgment or final decree, and may
enforce the same against the Issuer upon such Notes and collect in the manner
provided by law out of the property of the Issuer upon such Notes, wherever
situated, the moneys adjudged or decreed to be payable.

     (c) If an Event of Default occurs and is continuing, the Indenture Trustee
may, and shall at the direction of the Holders of Priority Class Notes
representing not less than a majority of the Outstanding Balance thereof, as
more particularly provided in Section 5.04, proceed to protect and enforce its
rights and the rights of the Noteholders, by such appropriate Proceedings

                                       32
<PAGE>

as the Indenture Trustee shall deem most effective to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

     (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Collateral, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization, or
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

          (i) to file and prove a claim or claims for the whole amount of
     principal and interest owing and unpaid in respect of the Notes and to file
     such other papers or documents as may be necessary or advisable in order to
     have the claims of the Indenture Trustee (including any claim for
     reasonable compensation to the Indenture Trustee and each predecessor
     Indenture Trustee, and their respective agents, attorneys and counsel, and
     for reimbursement of all expenses and liabilities incurred, and all
     advances made, by the Indenture Trustee and each predecessor Indenture
     Trustee, except as a result of negligence or bad faith) and of the
     Noteholders allowed in such Proceedings;

          (ii) unless prohibited by applicable law and regulations, to vote on
     behalf of the Holders of Notes in any election of a trustee, a standby
     trustee or Person performing similar functions in any such Proceedings;

          (iii) to collect and receive any moneys or other property payable or
     deliverable on any such claims and to distribute all amounts received with
     respect to the claims of the Noteholders and of the Indenture Trustee on
     their behalf; and

          (iv) to file such proofs of claim and other papers or documents as may
     be necessary or advisable in order to have the claims of the Indenture
     Trustee or the Holders of Notes allowed in any Proceedings relative to the
     Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Administrator and, in such event or in the event that the
Indenture Trustee shall consent to the making of payments directly to such
Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient
to cover reasonable compensation to the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents, attorneys and counsel, and all
other expenses and liabilities incurred by it or its agents, and all advances
made, by the Indenture Trustee and each predecessor Indenture Trustee except as
a result of negligence or bad faith.

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<PAGE>

     (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

     (f) All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or Proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Notes.

     (g) In any Proceedings brought by the Indenture Trustee (and also any
Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such Proceedings.

     (h) The Swap Counterparty shall be deemed, during the term of the Swap
Agreement and while such agreement is the property of the Issuer, to have a lien
on the Trust Estate to the extent of the Swap Counterparty's right to payment
under the Swap Agreement. Such lien shall be pari passu with the lien of the
Indenture Trustee under this Indenture. The Swap Counterparty shall have no
right to enforce such lien under any circumstances except to the extent that an
Event of Default has occurred hereunder and the Indenture Trustee or Holders of
the Priority Class Notes have declared the Notes to be immediately due and
payable as provided herein.

     Section 5.04. Remedies; Priorities. (a) If an Event of Default shall have
occurred and be continuing, the Indenture Trustee may, and at the direction of
Holders of Priority Class Notes representing a majority of the Outstanding
Balance thereof shall, do one or more of the following (subject to Section
5.05):

          (i) institute Proceedings in its own name and as trustee of an express
     trust for the collection of all amounts then payable on the Notes or under
     this Indenture with respect thereto, whether by declaration or otherwise,
     enforce any judgment obtained and collect from the Issuer and any other
     obligor upon such Notes moneys adjudged due;

          (ii) institute Proceedings from time to time for the complete or
     partial foreclosure of this Indenture with respect to the Collateral;

          (iii) exercise any remedies of a secured party under the Relevant UCC
     and take any other appropriate action to protect and enforce the rights and
     remedies of the Indenture Trustee and the Holders of the Notes; and

                                       34
<PAGE>

          (iv) sell the Collateral or any portion thereof or rights or interest
     therein, at one or more public or private sales called and conducted in any
     manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate any Collateral following an Event of Default, other than an Event of
Default described in Section 5.01(i) or (ii), unless (A) the Holders of 100% of
the Outstanding Balance or Percentage Interest of the Notes consent thereto, (B)
the proceeds of such sale or liquidation distributable to the Noteholders are
sufficient to discharge in full all amounts then due and unpaid upon such Notes
for principal and interest or (C) the Indenture Trustee determines, based on
information provided by the Administrator, that the Collateral will not continue
to provide sufficient funds for the payment of principal of and interest on the
Notes as they would have become due if the Notes had not been declared due and
payable, and the Indenture Trustee receives the consent of Holders of 66-2/3% of
the Voting Interests of the Notes. In determining such sufficiency or
insufficiency with respect to clauses (B) and (C), the Indenture Trustee shall
be entitled to receive and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Collateral for such purpose.

     (b) If the Indenture Trustee collects any money or property pursuant to
this Article V, it shall pay out the money or property in the following order:

          first: in the following order, to the Indenture Trustee, for any costs
     or expenses, including any reasonable out-of-pocket attorneys' fees,
     incurred by it in connection with the enforcement of the remedies provided
     for in this Article V and for any other unpaid amounts due to the Indenture
     Trustee hereunder; to the Administrator for any amounts due and owing to it
     under the Administration Agreement; to the Custodian and the Master
     Servicer, to the extent of any fees and expenses due and owing to each of
     them under the Transfer and Servicing Agreement; and to the Owner Trustee,
     to the extent of any fees and expenses due and owing to it (including
     pursuant to Section 7.03 of the Trust Agreement) and for any other unpaid
     amounts due to the Owner Trustee hereunder or under the Transfer and
     Servicing Agreement;

          second: to the Swap Counterparty, any Net Swap Payment or Swap
     Termination Payment owed to the Swap Counterparty, to the extent that any
     such Swap Termination Payment is not due to a Swap Counterparty Trigger
     Event;

          third: to the Master Servicer and the Servicer for any Servicing Fees
     then due and unpaid and any unreimbursed Advances and other servicing
     advances;

          fourth: to the applicable parties, any other outstanding expenses of
     the Trust remaining unpaid;

          fifth: to the Notes, all accrued and unpaid interest thereon and
     amounts in respect of principal, together with all Prepayment Penalties
     paid to the Trust during the related Prepayment Period, in each case in
     according to the priorities set forth in Section 4.1 of the Transfer and
     Servicing Agreement; provided, however, that accrued and unpaid interest
     shall be paid to Noteholders of each Class of Notes before any payments in
     respect of principal;

                                       35
<PAGE>

          sixth: to the Swap Counterparty, any unpaid Swap Termination Payment
     triggered by a Swap Counterparty Trigger Event owed to the Swap
     Counterparty; and

          seventh: to the Owner Trustee or its Paying Agent for any amounts to
     be distributed to the Holder of the Ownership Certificates.

     The Administrator may fix a record date and payment date for any payment to
Noteholders pursuant to this Section. At least 15 days before such record date,
the Issuer shall mail to each Noteholder and the Indenture Trustee a notice that
states the record date, the payment date and the amount to be paid.

     Section 5.05. Optional Preservation of the Collateral. If the Notes have
been declared to be due and payable under Section 5.02 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, but need not, elect to maintain possession
of the Collateral. It is the desire of the parties hereto and the Noteholders
that there be at all times sufficient funds for the payment of principal of and
interest on the Notes, and the Indenture Trustee shall take such desire into
account when determining whether or not to maintain possession of the
Collateral. In determining whether to maintain possession of the Collateral, the
Indenture Trustee shall be entitled to receive and rely upon an opinion (at the
expense of the Issuer) of an Independent investment banking or accounting firm
of national reputation as to the feasibility of such proposed action and as to
the sufficiency of the Collateral for such purpose.

     Section 5.06. Limitation of Suits. Other than as otherwise expressly
provided herein in the case of an Event of Default, no Holder of any Note shall
have any right to institute any Proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

          (i) such Holder has previously given written notice to the Indenture
     Trustee of a continuing Event of Default;

          (ii) the Holders of not less than 25% of the Outstanding Balance of
     the Notes have made written request to the Indenture Trustee to institute
     such Proceeding in respect of such Event of Default in its own name as
     Indenture Trustee hereunder;

          (iii) such Holder or Holders have offered to the Indenture Trustee
     indemnity satisfactory to it against the costs, expenses and liabilities to
     be incurred in complying with such request;

          (iv) the Indenture Trustee for 60 days after its receipt of such
     notice, request and offer of indemnity has failed to institute such
     Proceedings; and

          (v) no direction inconsistent with such written request has been given
     to the Indenture Trustee during such 60-day period by the Holders of a
     majority of the Outstanding Balance of the Notes.

     It is understood and intended that no one or more Holders of Notes shall
have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect,

                                       36
<PAGE>

disturb or prejudice the rights of any other Holders of Notes or to obtain or to
seek to obtain priority or preference over any other Holders or to enforce any
right under this Indenture, except in the manner herein provided.

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Balance of the Notes,
the Indenture Trustee shall take the action requested by the Holders of the
largest percentage in Outstanding Balance of the Notes and, if there is no
single largest percentage in Outstanding Balance of the Notes, shall take no
action, notwithstanding any other provisions of this Indenture.

     Section 5.07. Unconditional Rights of Noteholders To Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on or after the Redemption Date) to institute suit for
the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder.

     Section 5.08. Restoration of Rights and Remedies. If the Indenture Trustee
or any Noteholder has instituted any Proceeding to enforce any right or remedy
under this Indenture and such Proceeding has been discontinued or abandoned for
any reason or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and
the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

     Section 5.09. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     Section 5.10. Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

     Section 5.11. Control by Noteholders. Except as otherwise provided in
Section 5.02, the Holders of a majority of the Outstanding Balance of the Notes
shall have the right to direct the time, method and place of conducting any
Proceeding for any remedy available to the Indenture

                                       37
<PAGE>

Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided that:

          (i) such direction shall not be in conflict with any rule of law or
     with this Indenture;

          (ii) subject to the express terms of Section 5.04, any direction to
     the Indenture Trustee to sell or liquidate the Collateral shall be by
     Holders of Notes representing not less than 100% of the Outstanding Balance
     of the Notes;

          (iii) if the conditions set forth in Section 5.05 have been satisfied
     and the Indenture Trustee elects to retain the Collateral pursuant to such
     Section, then any direction to the Indenture Trustee by Holders of Notes
     representing less than 100% of the Outstanding Balance of the Notes to sell
     or liquidate the Collateral shall be of no force and effect; and

          (iv) the Indenture Trustee may take any other action deemed proper by
     the Indenture Trustee that is not inconsistent with such direction.

     Notwithstanding the rights of the Noteholders set forth in this Section,
subject to Section 6.01(g), the Indenture Trustee need not take any action that
it determines might involve it in liability or might materially adversely affect
the rights of any Noteholders not consenting to such action.

     Section 5.12. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02, the
Holders of Notes of not less than a majority of the Outstanding Balance of the
Notes may waive, in writing, any past Default or Event of Default and its
consequences except a Default (a) in payment of principal of or interest on any
of the Notes or (b) in respect of a covenant or provision hereof which cannot be
modified or amended without the consent of the Holder of each Note. In the case
of any such waiver, the Issuer, the Indenture Trustee and the Holders of the
Notes shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereto.

     Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereto.

     Section 5.13. Undertaking for Costs. All parties to this Indenture agree,
and each Holder of a Note by such Holder's acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the

                                       38
<PAGE>

provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Balance or Percentage Interest of the Notes or (c) any suit
instituted by any Noteholder for the enforcement of the payment of principal of
or interest on any Note on or after the respective due dates expressed in such
Note and in this Indenture (or, in the case of redemption, on or after the
Redemption Date).

     Section 5.14. Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Indenture
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

     Section 5.15. Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Collateral or upon any of
the assets of the Issuer. Any money or property collected by the Indenture
Trustee and remitted to the Administrator shall be applied by the Administrator
in accordance with Section 5.04(b).

     Section 5.16. Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so, the Issuer
shall take all such lawful action as the Indenture Trustee may request to compel
or secure the performance and observance by the Seller, the Depositor, the
Administrator, the Master Servicer or the Servicer, as applicable, of each of
their obligations to the Issuer under or in connection with the Sale Agreement
and the Transfer and Servicing Agreement, and to exercise any and all rights,
remedies, powers and privileges lawfully available to the Issuer under or in
connection with the Transfer and Servicing Agreement to the extent and in the
manner directed by the Indenture Trustee, including the transmission of notices
of default on the part of the Seller, the Depositor, the Administrator, the
Master Servicer or the Servicer, as applicable, under the Sale Agreement and
Transfer and Servicing Agreement and the institution of legal or administrative
actions or proceedings to compel or secure performance by the Seller, the
Depositor, the Administrator, the Master Servicer or the Servicer, as
applicable, of each of their applicable obligations under the Sale Agreement and
the Transfer and Servicing Agreement.

     (b) If an Event of Default has occurred and is continuing, the Indenture
Trustee may, and at the direction (which direction shall be in writing or by
telephone (confirmed in writing promptly thereafter)) of the Holders of a
majority of the Outstanding Balance of the Priority Class Notes shall, exercise
all rights, remedies, powers, privileges and claims of the Issuer against the
Depositor, the Administrator, the Master Servicer or the Servicer under or in
connection with the Transfer and Servicing Agreement or the Seller under or in
connection with the Sale Agreement, including the right or power to take any
action to compel or secure

                                       39
<PAGE>

performance or observance by the Seller, the Depositor, the Administrator, the
Master Servicer or the Servicer, of each of their respective obligations to the
Issuer thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Transfer and Servicing Agreement, and any right of
the Issuer to take such action shall be suspended.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

     Section 6.01. Duties of Indenture Trustee. (a) If an Event of Default has
occurred and is continuing, the Indenture Trustee shall exercise the rights and
powers vested in it by this Indenture 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.

     (b) Except during the continuance of an Event of Default:

          (i) the Indenture Trustee undertakes to perform such duties and only
     such duties as are specifically set forth in this Indenture and shall not
     be liable except for the performance of such duties and obligations as are
     specifically set forth in this Indenture and no implied covenants or
     obligations shall be read into this Indenture against the Indenture
     Trustee; and

          (ii) in the absence of bad faith on its part, the Indenture Trustee
     may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon certificates or
     opinions furnished to the Indenture Trustee and on their face conforming to
     the requirements of this Indenture; however, the Indenture Trustee shall
     examine the certificates and opinions to determine whether or not they
     conform on their face to the requirements of this Indenture.

     (c) The Indenture Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act, its own willful misconduct
or its own bad faith, except that:

          (i) this paragraph does not limit the effect of paragraph (b) of this
     Section;

          (ii) the Indenture Trustee shall not be liable for any error of
     judgment made in good faith by a Responsible Officer unless it is proved
     that the Indenture Trustee was negligent in ascertaining the pertinent
     facts;

          (iii) the Indenture Trustee shall not be liable with respect to any
     action it takes or omits to take in good faith in accordance with this
     Indenture or upon a direction received by it from the requisite Noteholders
     pursuant to Article V; and

          (iv) the Indenture Trustee shall not be required to take notice or be
     deemed to have notice or knowledge of (a) any failure by the Issuer to
     comply with its obligations hereunder or in the Operative Documents or (b)
     any Default or Event of Default, unless a Responsible Officer of the
     Indenture Trustee assigned to and working in its corporate trust department
     obtains actual knowledge of such Default or Event of Default or shall have
     received written notice thereof. In the absence of such actual knowledge or
     notice,

                                       40
<PAGE>

     the Indenture Trustee may conclusively assume that there is no Default or
     Event of Default.

     (d) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to the provisions of this Section.

     (e) The Indenture Trustee shall not be liable for indebtedness evidenced by
or arising under any of the Operative Documents, including principal of or
interest on the Notes, or interest on any money received by it.

     (f) Money held in trust by the Indenture Trustee need not be segregated
from other funds except to the extent required by law or the terms of this
Indenture or the Transfer and Servicing Agreement.

     (g) No provision of this Indenture shall require the Indenture Trustee to
expend, advance or risk its own funds or otherwise incur financial liability in
the performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it provided, however, that the Indenture Trustee shall not
refuse or fail to perform any of its duties hereunder solely as a result of
nonpayment of its normal fees and expenses.

     (h) Every provision of this Indenture or any Operative Document relating to
the conduct or affecting the liability of or affording protection to the
Indenture Trustee shall be subject to the provisions of this Section, Section
6.02 and to the provisions of the TIA.

     (i) The Indenture Trustee shall execute and deliver the Transfer and
Servicing Agreement and such other documents and instruments as shall be
necessary or appropriate in accordance with its duties and obligations under
this Indenture.

     (j) The Indenture Trustee shall not have any duty or obligation to manage,
make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Collateral, or to otherwise take or refrain from taking
any action under, or in connection with, any document contemplated hereby to
which the Indenture Trustee is a party, except as expressly provided (i) in
accordance with the powers granted to and the authority conferred upon the
Indenture Trustee pursuant to this Agreement or any other Operative Document,
and (ii) in accordance with any document or instruction delivered to the
Indenture Trustee pursuant to the terms of this Agreement; and no implied duties
or obligations shall be read into this Agreement or any Operative Document
against the Indenture Trustee. The Indenture Trustee agrees that it will, at its
own cost and expense, promptly take all action as may be necessary to discharge
any liens on any part of the Collateral that result from actions by, or claims
against itself (in its individual capacity, and not in the capacity of Indenture
Trustee) that are not related to the administration of the Collateral.

     (k) Neither the Indenture Trustee nor the Administrator shall have any
liability or responsibility for the acts or omissions of the other Person, it
being understood that this Indenture shall not be construed to render them
agents of one another.

                                       41
<PAGE>

     Section 6.02. Rights of Indenture Trustee. (a) The Indenture Trustee may
rely on any document believed by it to be genuine and to have been signed or
presented by the proper person. The Indenture Trustee need not investigate any
fact or matter stated in the document.

     (b) Before the Indenture Trustee acts or refrains from acting, it may
require an Officer's Certificate or an Opinion of Counsel, which shall not be at
the expense of the Indenture Trustee. The Indenture Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on an
Officer's Certificate or Opinion of Counsel. The right of the Indenture Trustee
to perform any discretionary act enumerated in this Indenture or in any
Operative Document shall not be construed as a duty and the Indenture Trustee
shall not be answerable for other than its negligence or willful misconduct in
the performance of such act.

     (c) The Indenture Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys or a custodian or nominee.

     (d) The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, that the Indenture Trustee's conduct does not
constitute willful misconduct, negligence or bad faith.

     (e) The Indenture Trustee may consult with counsel, and any Opinion of
Counsel with respect to legal matters relating to this Indenture, any Operative
Document and the Notes shall be full and complete authorization and protection
from liability in respect to any action taken, omitted or suffered by it
hereunder in good faith and in accordance with any Opinion of Counsel of such
counsel.

     (f) In the event that the Indenture Trustee is also acting as Paying Agent,
Note Registrar, Custodian or Administrator hereunder or under any Operative
Document, the rights and protections afforded to the Indenture Trustee pursuant
to this Article VI shall be afforded to such Paying Agent, Note Registrar,
Custodian and Administrator.

     Section 6.03. Individual Rights of Indenture Trustee. The Indenture Trustee
in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Indenture Trustee. Any Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Indenture Trustee must comply with Section 6.11.

     Section 6.04. Indenture Trustee's Disclaimer. The Indenture Trustee shall
not be responsible for and makes no representation as to the validity or
adequacy of any of the Operative Documents or the Notes or the sufficiency of
the Collateral; it shall not be accountable for the Issuer's use of the proceeds
from the Notes, and it shall not be responsible for any statement of the Issuer
or the Servicer in this Indenture, any Operative Document or in any other
document issued in connection with the sale of the Notes or in the Notes.

     Section 6.05. Notice of Defaults. If a Default occurs and is continuing and
if a Responsible Officer of the Indenture Trustee has actual knowledge thereof,
the Indenture Trustee shall give prompt written notice thereof to each
Noteholder.

                                       42
<PAGE>

     Section 6.06. Reports by Indenture Trustee to Holders. The Administrator on
behalf of the Indenture Trustee shall comply with the provisions of Section
4.5(b) of the Transfer and Servicing Agreement.

     Section 6.07. Compensation and Indemnity. The Indenture Trustee shall be
entitled, as compensation for its services, the Indenture Trustee Fee to be paid
by the Master Servicer as provided in the Transfer and Servicing Agreement. The
Indenture Trustee's compensation shall not be limited by any law on compensation
of a trustee of an express trust. The Indenture Trustee and any co-trustee shall
be reimbursed on behalf of the Issuer from funds in the Accounts, as provided in
the Transfer and Servicing Agreement, for all reasonable ordinary out-of-pocket
expenses incurred or made by it, including costs of collection, in addition to
the compensation for its services (as provided in the Transfer and Servicing
Agreement). Reimbursable expenses under this Section shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Issuer shall
indemnify the Indenture Trustee, any co-trustee and their respective employees,
directors and agents, as provided in the Transfer and Servicing Agreement and
from funds in the Accounts, against any and all claim, loss, liability or
expense (including attorneys' fees) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder or
under any Operative Document. The Indenture Trustee or co-trustee, as
applicable, shall notify the Issuer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee or the co-trustee, as applicable, to
so notify the Issuer shall not relieve the Issuer of its obligations hereunder.
The Issuer shall defend any such claim, and the Indenture Trustee and any
co-trustee may have separate counsel fees and expenses of such counsel shall be
payable on behalf of the Issuer from funds in the Accounts. The Issuer shall not
be required to reimburse any expense or indemnify against any loss, liability or
expense incurred by the Indenture Trustee or any co-trustee, as applicable,
through the Indenture Trustee's or co-trustee's, as the case may be, own willful
misconduct, negligence or bad faith.

     The Issuer's obligations to the Indenture Trustee and any co-trustee
pursuant to this Section shall survive the resignation or removal of the
Indenture Trustee and the termination of this Indenture. When the Indenture
Trustee or any co-trustee incurs expenses after the occurrence of a Default
specified in Section 5.01(iv) or (v) with respect to the Issuer, the expenses
are intended to constitute expenses of administration under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.

     Section 6.08. Replacement of Indenture Trustee. No resignation or removal
of the Indenture Trustee and no appointment of a successor Indenture Trustee
shall become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section. The Indenture Trustee may resign at
any time by giving 60 days' written notice thereof to the Depositor, the Issuer,
each Noteholder and each Rating Agency. The Issuer shall remove the Indenture
Trustee if:

          (i) the Indenture Trustee fails to comply with Section 6.11;

          (ii) the Indenture Trustee is adjudged bankrupt or insolvent;

                                       43
<PAGE>

          (iii) a receiver or other public officer takes charge of the Indenture
     Trustee or its property; or

          (iv) the Indenture Trustee otherwise becomes incapable of acting.

     If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee that satisfies the
eligibility requirements of Section 6.11.

     The resigning or removed Indenture Trustee agrees to cooperate with any
successor Indenture Trustee in effecting the termination of the resigning or
removed Indenture Trustee's responsibilities and rights hereunder and shall
promptly provide such successor Indenture Trustee all documents and records
reasonably requested by it to enable it to assume the Indenture Trustee's
functions hereunder.

     A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer. Thereupon the
resignation or removal of the retiring Indenture Trustee shall become effective,
and the successor Indenture Trustee shall have all the rights, powers and duties
of the Indenture Trustee under this Indenture. The successor Indenture Trustee
shall mail a notice of its succession to Noteholders. The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

     If a successor Indenture Trustee does not take office within 30 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Holders of a majority in Outstanding Balance of the
Notes may petition any court of competent jurisdiction for the appointment of a
successor Indenture Trustee.

     If the Indenture Trustee fails to comply with Section 6.11, any Noteholder
may petition any court of competent jurisdiction for the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee.

     Section 6.09. Successor Indenture Trustee or Administrator by Merger. (a)
If the Indenture Trustee or Administrator consolidates with, merges or converts
into, or transfers all or substantially all its corporate trust business or
assets to, another corporation or banking association, as applicable, the
resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee or successor Administrator, as the case may be;
provided that such corporation or banking association shall be otherwise
qualified and eligible hereunder and under any other Operative Document. The
Indenture Trustee shall provide each Rating Agency prior written notice of any
such transaction. As a condition to a succession to the Indenture Trustee under
this Indenture by any Person (i) into which the Indenture Trustee may be merged
or consolidated, or (ii) which may be appointed as a successor to the Indenture
Trustee, the Indenture Trustee shall notify AMC, the Master Servicer, the
Administrator and the Depositor, at least 15 calendar days prior to the
effective date of such succession or appointment, of such succession or
appointment and shall furnish to AMC, the Master Servicer, the Administrator and
the Depositor in writing and in form and substance reasonably satisfactory to
AMC, the Master Servicer, the Administrator and the Depositor, all information
reasonably

                                       44
<PAGE>

necessary for the Administrator to accurately and timely report on a Form 8-K
pursuant to the Exchange Act (if such reports under the Exchange Act are
required to be filed under the Exchange Act).

     At the time of such successor or successors by merger, conversion or
consolidation to the Administrator, if any of the Notes shall have been
authenticated by the Administrator but not delivered, any such successor to the
Administrator may adopt the certificate of authentication of any predecessor
administrator and deliver such Notes so authenticated; and in case at that time
any of the Notes shall not have been authenticated, any successor to the
Administrator may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Administrator; and in all such
cases such certificates shall have the full force which it is anywhere in the
Notes or in this Indenture provided that the certificate of the Administrator
shall have.

     Section 6.10. Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

     (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Collateral may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, or separate trustee or
separate trustees, of all or any part of the Trust, and to vest in such Person
or Persons, in such capacity and for the benefit of the Noteholders, such title
to the Collateral, or any part hereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Indenture Trustee may consider necessary or desirable. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11 and no notice to Noteholders of the
appointment of any co-trustee or separate trustee shall be required under
Section 6.08 hereof.

     (b) 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 Indenture Trustee shall be conferred or imposed upon and exercised
     or performed by the Indenture 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 Indenture
     Trustee joining in such act), except to the extent that under any law of
     any jurisdiction in which any particular act or acts are to be performed
     the Indenture 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 Collateral 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
     Indenture Trustee;

          (ii) no trustee hereunder shall be personally liable by reason of any
     act or omission of any other trustee hereunder; and

          (iii) the Indenture Trustee may at any time accept the resignation of
     or remove any separate trustee or co-trustee.

                                       45
<PAGE>

     (c) Any notice, request or other writing given to the Indenture 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 Indenture and
the conditions of this Article VI. 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
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with
the Indenture Trustee.

     (d) Any separate trustee or co-trustee may at any time constitute the
Indenture 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 Indenture 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 Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

     (e) Notwithstanding the foregoing, no such co-trustee or separate trustee
shall be vested with any powers, rights or remedies under this Indenture unless
such party has agreed to comply with Section 6.14 of this Indenture.

     Section 6.11. Eligibility; Disqualification. The Indenture Trustee shall at
all times (i) satisfy the requirements of TIA Section 310(a), (ii) have a
combined capital and surplus of at least $100,000,000 as set forth in its most
recently published annual report of condition, (iii) have a long-term debt
rating equivalent to "A" or better by the Rating Agencies or be otherwise
acceptable to the Rating Agencies and (iv) not be an Affiliate of the Issuer or
the Owner Trustee. The Indenture Trustee shall comply with TIA Section 310(b),
including the optional provision permitted by the second sentence of TIA Section
310(b)(9); provided, however, that there shall be excluded from the operation of
TIA Section 310(b)(1) any indenture or indentures under which other securities
of the Issuer are outstanding if the requirements for such exclusion set forth
in TIA Section 310(b)(1) are met.

     Section 6.12. Representations and Warranties. The Indenture Trustee hereby
represents that:

     (a) the Indenture Trustee is duly organized and validly existing as a
national banking association in good standing under the laws of the United
States with power and authority to own its properties and to conduct its
business as such properties are currently owned and such business is presently
conducted;

     (b) the Indenture Trustee has the power and authority to execute and
deliver this Indenture and to carry out its terms; and the execution, delivery
and performance of this Indenture have been duly authorized by the Indenture
Trustee by all necessary corporate action;

     (c) the consummation of the transactions contemplated by this Indenture and
the fulfillment of the terms hereof do not conflict with, result in any breach
of any of the terms and

                                       46
<PAGE>

provisions of, or constitute (with or without notice or lapse of time) a default
under the articles of organization or bylaws of the Indenture Trustee or any
agreement or other instrument to which the Indenture Trustee is a party or by
which it is bound which would have a material adverse effect on the Indenture
Trustee's performance hereunder; and

     (d) to the Indenture Trustee's knowledge, there are no proceedings or
investigations pending or threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Indenture Trustee or its properties: (i) asserting the invalidity of
this Indenture, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Indenture or (iii) seeking any determination
or ruling that might materially and adversely affect the performance by the
Indenture Trustee of its obligations under, or the validity or enforceability
of, this Indenture.

     Section 6.13. Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee which has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

     Section 7.01. Issuer To Furnish Names and Addresses of Noteholders. The
Note Registrar will furnish or cause to be furnished to the Indenture Trustee or
at the Indenture Trustee's direction (a) not more than five days after each
Record Date, a list, in such form as the Indenture Trustee may reasonably
require, of the names and addresses of the Holders of Notes as of such Record
Date, and (b) at such other times as the Indenture Trustee may request in
writing, within 30 days after receipt by the Note Registrar of any such request,
a list of similar form and content as of a date not more than 10 days prior to
the time such list is furnished; provided, however, that so long as the
Indenture Trustee is the Note Registrar, no such list shall be required to be
furnished.

     Section 7.02. Preservation of Information; Communications to Noteholders.
(a) The Note Registrar shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Holders of Notes contained in the
most recent list furnished to the Administrator as provided in Section 7.01 and
the names and addresses of Holders of Notes received by the Administrator in its
capacity as Note Registrar. The Administrator may destroy any list furnished to
it as provided in such Section 7.01 upon receipt of a new list so furnished. If
three or more Noteholders, or one or more Holders of a Class of Notes evidencing
not less than 25% of the Outstanding Balance thereof (hereinafter referred to as
"Applicants"), apply in writing to the Administrator or the Indenture Trustee,
and such application states that the Applicants desire to communicate with other
holders with respect to their rights under this Indenture or under the Notes,
then the Administrator shall, within five Business Days after the receipt of
such application, afford such Applicants access, during normal business hours,
to the current list of Holders. Every Holder, by receiving and holding a Note,
agrees with the Issuer, the Indenture Trustee and the Administrator that none of
the Issuer, the Indenture Trustee or the Administrator shall be held accountable
by reason of the disclosure of any such information as to the names and

                                       47
<PAGE>

addresses of the Holders under this Indenture, regardless of the source from
which such information was derived.

     (b) Noteholders may communicate pursuant to TIA Section 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.

     (c) The Issuer, the Indenture Trustee and the Administrator shall have the
protection of TIA Section 3l2(c).

     Section 7.03. Reports by Issuer. (a) The Issuer shall:

          (i) file with the Commission in accordance with the rules and
     regulations prescribed from time to time by the Commission such additional
     information, documents and reports with respect to compliance by the Issuer
     with the conditions and covenants of this Indenture as may be required from
     time to time by such rules and regulations; and

          (ii) supply to the Administrator (and the Administrator shall transmit
     by mail to all Noteholders described in TIA Section 313(c)) such summaries
     of any information, documents and reports required to be filed by the
     Issuer pursuant to clause (i) of this Section 7.03(a) and by rules and
     regulations prescribed from time to time by the Commission.

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

     Section 7.04. Reports by Indenture Trustee. If required by TIA Section
313(a) and such requirement is not otherwise satisfied, within 60 days after
each January 30, beginning with March 31, 2007, the Indenture Trustee shall
prepare, based on information provided to it, and furnish to the Administrator
and the Administrator shall mail to each Noteholder as required by TIA Section
313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee shall also comply with TIA Section 313(b).

     A copy of each report at the time of its mailing to Noteholders shall be
filed by the Administrator with the Commission.

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

     Section 8.01. Collection of Money. Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect (or direct such funds to the Administrator), directly and
without intervention or assistance of any fiscal agent or other intermediary,
all money and other property payable to or receivable by the Indenture Trustee
or the Administrator pursuant to this Indenture. The Administrator shall apply
all such money received by it as provided in this Indenture. Except as otherwise
expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the
Collateral, the Indenture Trustee may take such action as may be appropriate to
enforce such payment or performance, including the

                                       48
<PAGE>

institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

     Section 8.02. Note Payment Account and Certificate Distribution Account.
(a) On or prior to the Closing Date, the Administrator on behalf of the
Indenture Trustee shall establish and maintain in its name the Note Payment
Account and the Certificate Distribution Account, each as provided in Article
III of the Transfer and Servicing Agreement.

     (b) On each Payment Date and Redemption Date, the Paying Agent shall
distribute all amounts on deposit in the Note Payment Account as provided in
Section 4.1 of the Transfer and Servicing Agreement.

     (c) On each Payment Date and each Redemption Date, the Owner Trustee or the
Certificate Paying Agent, as applicable, is hereby authorized to make the
distributions from the Certificate Distribution Account as required pursuant to
Section 4.1 of the Transfer and Servicing Agreement.

     Section 8.03. General Provisions Regarding Accounts. Funds in the Note
Payment Account maintained by the Administrator on behalf of the Indenture
Trustee shall be invested as provided in the Transfer and Servicing Agreement.

     Section 8.04. Release of Collateral. (a) Subject to the payment of its fees
and expenses pursuant to Section 6.07, the Indenture Trustee may, and when
required by the provisions of this Indenture and the Transfer and Servicing
Agreement shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in this Article VIII shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent
or see to the application of any monies.

     (b) The Indenture Trustee shall, at such time as the Administrator notifies
the Indenture Trustee in writing that there are no Notes outstanding and all
sums due to the Noteholders pursuant to the Transfer and Servicing Agreement and
any fees and expenses of the Indenture Trustee, the Master Servicer, the
Administrator, the Custodian, the Owner Trustee and the Servicer pursuant to
this Indenture or any other Operative Document have been paid, release any
remaining portion of the Collateral that secured the Notes from the lien of this
Indenture, the Administrator shall release to the Issuer or any other Person
entitled thereto any funds then on deposit in the Note Payment Account and the
Indenture Trustee shall assign or transfer any outstanding Swap Agreements or
Cap Agreements. The Indenture Trustee shall release property from the lien of
this Indenture pursuant to this subsection (b) only upon receipt of an Issuer
Request accompanied by an Officer's Certificate, an Opinion of Counsel and (if
required by the TIA) Independent Certificates in accordance with TIA Sections
314(c) and 314(d)(1) meeting the applicable requirements of Section 11.01
hereof.

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<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

     Section 9.01. Supplemental Indentures Without Consent of Noteholders. (a)
Without the consent of the Holders of any Notes but with prior notice to each
Rating Agency, the Issuer, the Administrator and the Indenture Trustee, when
authorized by an Issuer Order, at any time and from time to time, may enter into
one or more indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as in force at the date of the execution
thereof), for any of the following purposes:

          (i) to correct or amplify the description of any property at any time
     subject to the lien of this Indenture, or better to assure, convey and
     confirm unto the Indenture Trustee any property subject or required to be
     subjected to the lien of this Indenture, or to subject to the lien of this
     Indenture additional property;

          (ii) to evidence the succession, in compliance with the applicable
     provisions hereof, of another person to the Issuer, and the assumption by
     any such successor of the covenants of the Issuer herein and in the Notes
     contained;

          (iii) to add to the covenants of the Issuer, for the benefit of the
     Holders of the Notes, or to surrender any right or power herein conferred
     upon the Issuer;

          (iv) to convey, transfer, assign, mortgage or pledge any property to
     or with the Indenture Trustee;

          (v) (A) to cure any ambiguity, (B) to correct or supplement any
     provision herein or in any supplemental indenture that may be inconsistent
     with any other provisions herein or in any supplemental indenture or to
     conform the provisions hereof to those of the Offering Document, (C) to
     obtain or maintain a rating for a Class of Notes from a nationally
     recognized statistical rating organization, (D) to make any other
     provisions with respect to matters or questions arising under this
     Indenture; provided, however, that no such supplemental indenture entered
     into pursuant to clause (D) of this subparagraph (v) shall adversely affect
     in any material respect the interests of any Holder not consenting thereto;

          (vi) to evidence and provide for the acceptance of the appointment
     hereunder by a successor trustee with respect to the Notes and to add to or
     change any of the provisions of this Indenture as shall be necessary to
     facilitate the administration of the trusts hereunder by more than one
     trustee, pursuant to the requirements of Article VI; or

          (vii) to modify, eliminate or add to the provisions of this Indenture
     to such extent as shall be necessary to effect the qualification of this
     Indenture under the TIA or under any similar federal statute hereafter
     enacted and to add to this Indenture such other provisions as may be
     expressly required by the TIA.

provided, however, that no such supplemental indenture shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel stating
that as a result of such

                                       50
<PAGE>

supplemental indenture, the Trust will not be subject to federal income tax as
long as an entity that qualifies as a REIT under the Code holds directly, or
indirectly through one or more Qualified REIT Subsidiaries or a Disregarded
Entity, a 100% ownership interest in the Ownership Certificates, and the
Indenture Trustee receives an Officer's Certificate from the Holder of the
Ownership Certificates that the Holder of the Ownership Certificates either
qualifies as a REIT, a Qualified REIT Subsidiary or a Disregarded Entity under
the Code and the Holder of the Ownership Certificates holds a 100% ownership
Interest in the Ownership Certificates.

     The Indenture Trustee is hereby authorized to join in the execution of any
such supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

     (b) A letter from each Rating Agency addressed and delivered to the
Indenture Trustee to the effect that any supplemental indenture entered into
pursuant to this Section 9.01 will not cause the then-current ratings on the
Notes to be qualified, reduced or withdrawn shall constitute conclusive evidence
that such amendment does not adversely affect in any material respect the
interests of the Noteholders, and such letter shall be delivered to the
Indenture Trustee prior to its execution of any supplemental indenture.

     Section 9.02. Supplemental Indentures with Consent of Noteholders. The
Issuer, the Administrator and the Indenture Trustee, when authorized by an
Issuer Order, also may, with prior notice to each Rating Agency and with the
consent of the Holders of not less than 66-2/3% of the Voting Interests of the
Notes, by Act of such Holders delivered to the Issuer and the Indenture Trustee,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however, that no such
supplemental indenture shall, adversely affect the interests of the Noteholders
without the consent of the Holder of each Outstanding Note affected thereby (i)
reduce in any manner the amount of, or delay the timing of, payments in respect
of any Note, (ii) alter the obligations of the Servicer to make an Advance or
alter the servicing standards set forth in the Transfer and Servicing Agreement
or the Servicing Agreement, (iii) reduce the aforesaid percentages of Notes the
Holders of which are required to consent to any such supplemental indenture,
without the consent of the Holders of all Notes affected thereby, or (iv) permit
the creation of any lien ranking prior to or on a parity with the lien of this
Indenture with respect to any part of the Collateral or, except as otherwise
permitted or contemplated herein, terminate the lien of this Indenture on any
property at any time subject hereto or deprive the Holder of any Note of the
security provided by the lien of this Indenture and provided, further, that such
action shall not, as evidenced by an Opinion of Counsel, subject the Trust to
federal income tax as long as an entity that qualifies as a REIT under the Code
holds directly, or indirectly through one or more Qualified REIT Subsidiaries or
Disregarded Entities, a 100% ownership interest in the Ownership Certificates,
and provided, further, that the Indenture Trustee receives an Officer's
Certificate from the Holder of the Ownership Certificates that the Holder of the
Ownership Certificates either qualifies as a REIT, a Qualified REIT Subsidiary
or a Disregarded Entity under the Code and the Holder of the Ownership
Certificates holds a 100% ownership Interest in the Ownership Certificates.

                                       51
<PAGE>

     The Indenture Trustee shall be entitled to conclusively rely on an Opinion
of Counsel to determine whether or not any Notes would be affected by any
supplemental indenture and any such determination shall be conclusive upon the
Holders of all Notes, whether theretofore or thereafter authenticated and
delivered hereunder.

     Not later than thirty (30) Business Days prior to the execution of any
proposed supplemental indenture pursuant to this Section 9.02, the Indenture
Trustee, at the expense of the Trust, shall mail to each of the Holders a copy
of such proposed supplemental indenture.

     It shall not be necessary for any Act of Noteholders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

     Promptly after the execution by the Issuer and the Indenture Trustee of any
supplemental indenture pursuant to this Section, the Indenture Trustee or the
Administrator on its behalf shall mail or shall cause to be mailed to the
Holders of the Notes to which such amendment or supplemental indenture relates
and each Rating Agency a notice setting forth in general terms the substance of
such supplemental indenture. Any failure of the Indenture Trustee or the
Administrator on its behalf to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental
indenture.

     Section 9.03. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Section 6.02, shall be fully protected in relying upon, an Opinion of
Counsel to the effect provided in Section 9.07. The Indenture Trustee may, but
shall not be obligated to, enter into any such supplemental indenture that
affects the Indenture Trustee's own rights, duties, liabilities or immunities
under this Indenture or otherwise.

     Section 9.04. Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and shall be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

     Section 9.05. Conformity with Trust Indenture Act. Every amendment of this
Indenture and every supplemental indenture executed pursuant to this Article IX
shall conform to the requirements of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture Act.

     Section 9.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Administrator shall,
bear a notation in a form approved by the Administrator as

                                       52
<PAGE>

to any matter provided for in such supplemental indenture. If the Issuer or the
Administrator shall so determine, new Notes so modified as to conform, in the
opinion of the Administrator and the Issuer, to any such supplemental indenture
may be prepared and executed by the Issuer and authenticated and delivered by
the Administrator in exchange for Outstanding Notes.

     Section 9.07. Opinion of Counsel. In connection with any supplemental
indenture pursuant to this Article IX, the Indenture Trustee shall be entitled
to receive an Opinion of Counsel to the effect that such supplemental indenture
is authorized or permitted by this Indenture and that all conditions precedent
to the execution of such supplemental indenture in accordance with the relevant
provisions of this Article IX have been met.

     Nothing in this Section shall be construed to require that any Person
obtain the consent of the Indenture Trustee to any amendment or waiver or any
provision of any document where the making of such amendment or the giving of
such waiver without obtaining the consent of the Indenture Trustee is not
prohibited by this Indenture or by the terms of the document that is the subject
of the proposed amendment or waiver.

                                    ARTICLE X

                               REDEMPTION OF NOTES

     Section 10.01. Redemption. The Notes are subject to redemption pursuant to
Section 9.1 of the Transfer and Servicing Agreement. The Issuer shall furnish
each Rating Agency, the Indenture Trustee and the Administrator notice of such
redemption. If any Notes are to be redeemed pursuant to Section 9.1 of the
Transfer and Servicing Agreement, the holder of the Ownership Certificates or
the Servicer, as applicable, shall furnish notice of its exercise of its option
to redeem the applicable Notes to the Indenture Trustee and the Administrator
not later than 10 days prior to the applicable Redemption Date and the party
exercising its option to redeem such Notes shall deposit by 10:00 A.M. New York
City time on the applicable Redemption Date with the Administrator in the Note
Payment Account the Redemption Price of the Notes to be redeemed, whereupon all
such applicable Notes shall be due and payable on the applicable Redemption Date
upon the furnishing of a notice complying with Section 10.02 hereof to each
Holder of the Notes.

     Section 10.02. Form of Redemption Notice. Notice of redemption under
Section 10.01 shall be given by the Administrator on behalf of the Indenture
Trustee by first-class mail, postage prepaid, or by facsimile mailed or
transmitted not later than 5 days prior to the applicable Redemption Date to
each Holder of Notes, as of the close of business on the Record Date preceding
the applicable Redemption Date, at such Holder's address or facsimile number
appearing in the Note Register.

     All notices of redemption shall state:

          (i) the Redemption Date;

          (ii) the Redemption Price; and

                                       53
<PAGE>

          (iii) the place where such Notes are to be surrendered for payment of
     the Redemption Price (which shall be the office or agency of the Issuer to
     be maintained as provided in Section 3.02).

     Notice of redemption of the Notes shall be given by the Administrator on
behalf of the Indenture Trustee in the name and at the expense of the Issuer.
Failure to give notice of redemption, or any defect therein, to any Holder of
any Note shall not impair or affect the validity of the redemption of any other
Note.

     Section 10.03. Notes Payable on Redemption Date. The applicable Notes or
portions thereof to be redeemed shall, following notice of redemption as
required under Section 10.02 (in the case of redemption pursuant to Section
10.01) and remittance to the Administrator of the Redemption Price as required
under Section 10.01, on the applicable Redemption Date become due and payable at
the Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

                                   ARTICLE XI

                                  MISCELLANEOUS

     Section 11.01. Compliance Certificates and Opinions, etc. Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee: (i) an Officer's Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, and
(iii) (if required by the TIA) an Independent Certificate from a firm of
certified public accountants meeting the applicable requirements of this
Section, except that, in the case of any such application or request as to which
the furnishing of such documents is specifically required by any provision of
this Indenture, no additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

          (i) a statement that each signatory of such certificate or opinion has
     read or has caused to be read such covenant or condition and the
     definitions herein relating thereto;

          (ii) a brief statement as to the nature and scope of the examination
     or investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

          (iii) a statement that, in the opinion of each such signatory, such
     signatory has made such examination or investigation as is necessary to
     enable such signatory to express an informed opinion as to whether or not
     such covenant or condition has been complied with; and

                                       54
<PAGE>

          (iv) a statement as to whether, in the opinion of each such signatory,
     such condition or covenant has been complied with.

     Section 11.02. Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

     Any certificate of an Authorized Officer or Opinion of Counsel may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such officer's certificate or opinion is
based are erroneous. Any such certificate of an Authorized Officer or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Seller, the Master Servicer, the Servicer, the Depositor, the Issuer or the
Administrator, stating that the information with respect to such factual matters
is in the possession of the Seller, the Master Servicer, the Servicer, the
Depositor, the Issuer or the Administrator, unless such counsel knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

     Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

     Section 11.03. Acts of Noteholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Noteholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Noteholders in person
or by agents duly appointed in writing; and except as herein otherwise expressly
provided such action shall become effective when such instrument or instruments
are delivered to the Indenture Trustee and, where it is hereby expressly
required, to the Issuer. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the "Act" of
the Noteholders signing such instrument or instruments. Proof of execution of
any such instrument or of a writing appointing

                                       55
<PAGE>

any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 6.01) conclusive in favor of the Indenture Trustee and the
Issuer, if made in the manner provided in this Section.

     (b) The fact and date of the execution by any person of any such instrument
or writing may be proved in any manner that the Indenture Trustee deems
sufficient.

     (c) The ownership of Notes shall be proved by the Note Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Notes shall bind the Holder of every Note
issued upon the registration thereof or in exchange therefor or in lieu thereof,
in respect of anything done, omitted or suffered to be done by the Indenture
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

     Section 11.04. Notices, etc., to Indenture Trustee, Administrator, Issuer
and Rating Agencies. Any request, demand, authorization, direction, notice,
consent, waiver or Act of Noteholders or other documents provided or permitted
by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or act of Noteholders is to be
made upon, given or furnished to or filed with:

          (i) the Indenture Trustee by any Noteholder or by the Issuer shall be
     sufficient for every purpose hereunder if made, given, furnished or filed
     in writing to or with the Indenture Trustee at its Corporate Trust Office,
     or

          (ii) the Administrator by the Indenture Trustee, any Noteholder or by
     the Issuer shall be sufficient for every purpose hereunder if made, given,
     furnished or filed in writing to or with the Administrator at its Corporate
     Trust Office, or

          (ii) the Issuer by the Indenture Trustee, the Administrator, or any
     Noteholder shall be sufficient for every purpose hereunder if in writing
     and mailed first-class, postage prepaid to the Issuer addressed to the
     address provided in the Transfer and Servicing Agreement, or at any other
     address previously furnished in writing to the Indenture Trustee by the
     Issuer or the Administrator. The Issuer shall promptly transmit any notice
     received by it from the Noteholders to the Indenture Trustee.

     Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee, the Administrator or the Owner Trustee shall be in writing,
personally delivered or mailed by certified mail, return receipt requested, to
the address provided in the Transfer and Servicing Agreement or such other
address as shall be designated by written notice to the other parties.

     Section 11.05. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at such Holder's address as it appears on the Note Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of

                                       56
<PAGE>

such notice with respect to other Noteholders, and any notice that is mailed in
the manner herein provided shall conclusively be presumed to have been duly
given.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Noteholders shall be filed with the Indenture Trustee but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

     In case, by reason of the suspension of regular mail service as a result of
a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.

     Where this Indenture provides for notice to the Rating Agencies, failure to
give such notice shall not affect any other rights or obligations created
hereunder, and shall not under any circumstance constitute a Default or Event of
Default.

     Section 11.06. Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this Indenture by any of the provisions of the Trust Indenture
Act, such required provision shall control.

     The provisions of TIA Sections 310 through 317 that impose duties on any
person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

     Section 11.07. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     Section 11.08. Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture shall bind its successors, co-trustees and agents.

     Section 11.09. Severability. In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

     Section 11.10. Benefits of Indenture and Consents of Noteholders. Nothing
in this Indenture or in the Notes, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, the Owner Trustee
and the Noteholders, any benefit or any legal or equitable right, remedy or
claim under this Indenture. Each Noteholder and Note Owner, by acceptance of a
Note or, in the case of a Note Owner, a beneficial interest in a Note, consents
to and agrees to be bound by the terms and conditions of this Indenture.

                                       57
<PAGE>

     Section 11.11. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

     Section 11.12. Governing Law. THIS INDENTURE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 11.13. Counterparts. This Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

     Section 11.14. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
reasonably acceptable to the Issuer to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

     Section 11.15. Trust Obligations. (a) No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in their respective individual
capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Indenture Trustee or the Owner Trustee in its respective individual capacity,
any holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee have no such obligations in their respective individual capacities) and
except that any such partner, owner or beneficiary shall be fully liable, to the
extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity. For all purposes of this Indenture, in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

     (b) In addition, (i) this Indenture is executed and delivered by Wilmington
Trust Company, not individually or personally but solely as Owner Trustee, in
the exercise of the powers and authority conferred and vested in it, (ii) each
of the representations, undertakings and agreements herein made on the part of
the Issuer or the Owner Trustee is made and intended not as personal
representations, undertakings and agreements by Wilmington Trust Company but is
made and intended for the purpose for binding only the Trust, (iii) nothing
herein contained shall

                                       58
<PAGE>

be construed as creating any liability on Wilmington Trust Company, individually
or personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the Indenture
Trustee and by any Person claiming by, through or under the Indenture Trustee,
and (iv) under no circumstances shall Wilmington Trust Company be personally
liable for the payment of any indebtedness or expenses of the Issuer or be
liable for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Issuer under this Indenture or the Operative
Documents.

     Section 11.16. No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note or interest therein, hereby
covenant and agree that they will not at any time institute against the
Depositor or the Issuer, or join in any institution against the Depositor or the
Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the Operative Documents.

     Section 11.17. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer's normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by Independent Public Accountants, and to
discuss the Issuer's affairs, finances and accounts with the Issuer's officers,
employees and Independent certified public accountants, all at such reasonable
times and as often as may be reasonably requested. The Indenture Trustee shall,
and shall cause its representatives to, hold in confidence all such information
except to the extent disclosure may be required by law (and all reasonable
applications for confidential treatment are unavailing) and except to the extent
that the Indenture Trustee may reasonably determine that such disclosure is
consistent with its obligations hereunder.

     Section 11.18. Agreements of Noteholders. Each Noteholder, by accepting a
Note, hereby acknowledges and agrees that, to the extent that the Noteholders
are deemed to have any interest in any assets of the Depositor that constitute
the assets of the trust for any other series of securities with respect to which
the Depositor acts as depositor:

     (a) the interest of the Noteholders in such assets is subordinate to claims
or rights of the holders of such other series of securities to such assets; and

     (b) this Indenture constitutes a subordination agreement for purposes of
Section 510(a) of the Bankruptcy Code.

                                       59
<PAGE>

     IN WITNESS WHEREOF, the Issuer, the Administrator and the Indenture Trustee
have caused this Indenture to be duly executed by their respective officers,
thereunto duly authorized and duly attested, all as of the day and year first
above written.

                                   AEGIS ASSET BACKED SECURITIES TRUST 2006-1,
                                      as Issuer

                                   By: WILMINGTON TRUST COMPANY, not in its
                                       individual capacity but solely as Owner
                                       Trustee

                                      By:  /s/ Robert J. Perkins
                                          --------------------------------------
                                      Name:  Robert J. Perkins
                                      Title: Sr. Financial Services Officer

                                   WELLS FARGO BANK, N.A., not in its individual
                                      capacity but solely as Administrator

                                      By:  /s/ Stacey M. Taylor
                                          --------------------------------------
                                      Name:  Stacey M. Taylor
                                      Title: Vice President

                                   DEUTSCHE BANK NATIONAL TRUST COMPANY, not in
                                      its individual capacity but solely as
                                      Indenture Trustee

                                      By:  /s/ Karlene Benvenuto
                                          --------------------------------------
                                      Name:  Karlene Benvenuto
                                      Title: Authorized Signer

<PAGE>

                                    EXHIBIT A

                                 FORMS OF NOTES

                                       A-1
<PAGE>

                                   EXHIBIT B-1

                       FORM OF RULE 144A INVESTMENT LETTER

                                                                ________________
                                                                      date
Wells Fargo Bank, N.A.
   as Note Registrar
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

     Re: Aegis Asset Backed Securities Trust 2006-1 Mortgage Backed Notes,
         Class N_

Ladies and Gentlemen:

     In connection with our acquisition of the above-referenced Notes (the
"Notes") we certify that (a) we understand that the Notes have not been
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 Notes, (c) we
have had the opportunity to ask questions of and receive answers from Aegis
Asset Backed Securities Corporation (the "Depositor") concerning the purchase of
the Notes and all matters relating thereto or any additional information deemed
necessary to our decision to purchase the Notes, (d) we have not, nor has anyone
acting on our behalf, offered, transferred, pledged, sold or otherwise disposed
of the Notes or any interest in the Notes, or solicited any offer to buy,
transfer, pledge or otherwise dispose of the Notes or any interest in the Notes
from any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action that would
constitute a payment of the Notes under the Act or that would render the
disposition of the Notes a violation of Section 5 of the Act or any state
securities laws or require registration pursuant thereto, and we will not act,
or authorize any person to act, in such manner with respect to the Notes, (e) we
are a "qualified institutional buyer" as that term is defined in Rule 144A under
the Act ("Rule 144A"). We are aware that the sale to us is being made in
reliance on Rule 144A.

     We are acquiring the Notes for our own account or for resale pursuant to
Rule 144A and understand that such Notes may be resold, pledged or transferred
only (1) to a person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A or (2) pursuant to another exemption from
registration under the Act.

     We hereby acknowledge that under the terms of the Indenture among Aegis
Asset Backed Securities Trust 2006-1, as Issuer, Wells Fargo Bank, N.A., as
Administrator, and

                                      B-1-1
<PAGE>

Deutsche Bank National Trust Company, as Indenture Trustee, dated as of October
1, 2006, no transfer of the Notes shall be permitted to be made to any person
unless the Note Registrar has received a certificate from such transferee in the
form hereof.

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

                                   Very truly yours,

                                   ---------------------------------------------
                                              Print Name of Purchaser

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

                                      B-1-2
<PAGE>

                                   EXHIBIT B-2

                     FORM OF NON-RULE 144A INVESTMENT LETTER

                                                                ________________
                                                                      date
Wells Fargo Bank, N.A.
   as Note Registrar
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

          Re:  Aegis Asset Backed Securities Trust 2006-1 Mortgage Backed Notes,
               Class N_

Ladies and Gentlemen:

     In connection with our acquisition of the above-referenced Notes (the
"Notes") we certify that (a) we understand that the Notes have not been
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 had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Notes and all matters relating thereto
or any additional information deemed necessary to our decision to purchase the
Notes, (c) we are acquiring the Notes for investment for our own account and not
with a view to any payment of such Notes (but without prejudice to our right at
all times to sell or otherwise dispose of the Notes in accordance with clause
(e) below), (d) we have not offered or sold any Notes to, or solicited offers to
buy any Notes from, any person, or otherwise approached or negotiated with any
person with respect thereto, or taken any other action that would result in a
violation of Section 5 of the Act or any state securities laws and (e) we will
not sell, transfer or otherwise dispose of any Notes unless (1) such sale,
transfer or other disposition is made pursuant to an effective registration
statement under the Act and in compliance with any relevant state securities
laws or is exempt from such registration requirements and, if requested, we will
at our expense provide an opinion of counsel satisfactory to the addressees of
this certificate that such sale, transfer or other disposition may be made
pursuant to an exemption from the Act, (2) the purchaser or transferee of such
Note has executed and delivered to you a certificate to substantially the same
effect as this certificate and (3) the purchaser or transferee has otherwise
complied with any conditions for transfer set forth in the Indenture dated as of
October 1, 2006 (the "Indenture"), among Aegis Asset Backed Securities Trust
2006-1, as issuer, Wells Fargo Bank, N.A., as administrator, and Deutsche Bank
National Trust Company, as indenture trustee.

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

     We hereby indemnify the Depositor, Indenture Trustee, the Note Registrar
and the Trust against any liability that may result to either of them if our
transfer or other disposition of any

                                      B-2-1
<PAGE>

Notes (or any interest therein) is not exempt from the registration requirements
of the Act and any applicable state securities laws or is not made in accordance
with such federal and state laws, the provisions of this certificate or the
applicable provisions of the Indenture.

                                   Very truly yours,

                                   ---------------------------------------------
                                              Print Name of Purchaser

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

                                      B-2-2
<PAGE>

                                    EXHIBIT C

                        FORM OF ERISA TRANSFER AFFIDAVIT

                                                                ________________
                                                                      date

STATE OF NEW YORK  )
                   ) ss.:
COUNTY OF NEW YORK )

     Re:  Aegis Asset Backed Securities Trust 2006-1 Mortgage Backed Notes

     1. The undersigned is the ______________________ of (the "Investor"), a
[corporation duly organized] and existing under the laws of __________, on
behalf of which he makes this affidavit.

     2. Either (i) the Investor is not, and on ___________ [date of transfer]
will not be, acquiring the Notes for, or on behalf of, an employee benefit plan
or other retirement arrangement that is subject to Section 406 of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or to Section 4975
of the Internal Revenue Code of 1986, as amended (or to any substantially
similar law ("Similar Law")) or any entity deemed to hold the plan assets of the
foregoing (a "Benefit Plan") or (ii) the Investor's acquisition and holding of
the Notes for, or on behalf of, a Benefit Plan will not result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
which is not covered under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, the non-fiduciary service
provider exemption under Section 408(b)(17) of ERISA or some other applicable
exemption, and will not result in a non-exempt violation of any Similar Law.

     3. The Investor hereby acknowledges that under the terms of the Indenture
among Aegis Asset Backed Securities Trust 2006-1, as Issuer, Wells Fargo Bank,
N.A., as Administrator, and Deutsche Bank National Trust Company, as Indenture
Trustee, dated as of October 1, 2006, no transfer of any Note shall be permitted
to be made to any person unless the Administrator has received a certificate
from such transferee in the form hereof.

                                       C-1
<PAGE>

     IN WITNESS WHEREOF, the Investor has caused this instrument to be executed
on its behalf, pursuant to proper authority, by its duly authorized officer,
duly attested, this ____ day of _______________, 20__.

                                   ---------------------------------------------
                                       [Investor]

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

ATTEST:

_________________________________

STATE OF      )
              ) ss.:
COUNTY OF     )

          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
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 ___________ 20___.

                                   ---------------------------------------------
                                   NOTARY PUBLIC

                                   My commission expires the
                                   ____ day of __________, 20__.

                                       C-2

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