Document:

<PAGE>

                                                                  EXECUTION COPY

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                    Depositor

                          WILSHIRE CREDIT CORPORATION,
                                    Servicer

                                       and

                       LASALLE BANK NATIONAL ASSOCIATION,
                                     Trustee

                                   ----------

                         POOLING AND SERVICING AGREEMENT
                          Dated as of February 1, 2007

                                   ----------

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST,
            MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2007-HE1

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE I DEFINITIONS....................................................     11

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES..     61
   SECTION 2.01.  Conveyance of Mortgage Loans...........................     61
   SECTION 2.02.  Acceptance by the Trustee of the Mortgage Loans........     63
   SECTION 2.03.  Representations, Warranties and Covenants of the
                  Depositor..............................................     65
   SECTION 2.04.  Representations and Warranties of the Servicer.........     68
   SECTION 2.05.  Substitutions and Repurchases of Mortgage Loans that
                  are not "Qualified Mortgages"..........................     69
   SECTION 2.06.  Authentication and Delivery of Certificates............     70
   SECTION 2.07.  REMIC Elections........................................     70
   SECTION 2.08.  Covenants of the Servicer..............................     75
   SECTION 2.09.  Permitted Activities of the Trust......................     75
   SECTION 2.10.  Qualifying Special Purpose Entity......................     75
   SECTION 2.11.  Depositor Notification of NIM Notes....................     76

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS...............     76
   SECTION 3.01.  Servicer to Service Mortgage Loans.....................     76
   SECTION 3.02.  Servicing and Subservicing; Enforcement of the
                  Obligations of Servicer................................     78
   SECTION 3.03.  Rights of the Depositor and the Trustee in Respect of
                  the Servicer...........................................     78
   SECTION 3.04.  Trustee to Act as Servicer.............................     79
   SECTION 3.05.  Collection of Mortgage Loan Payments; Collection
                  Account; Certificate Account...........................     79
   SECTION 3.06.  Collection of Taxes, Assessments and Similar Items;
                  Escrow Accounts........................................     83
   SECTION 3.07.  Access to Certain Documentation and Information
                  Regarding the Mortgage Loans...........................     83
   SECTION 3.08.  Permitted Withdrawals from the Collection Account and
                  Certificate Account....................................     83
   SECTION 3.09.  [RESERVED].............................................     86
   SECTION 3.10.  Maintenance of Hazard Insurance........................     86
   SECTION 3.11.  Enforcement of Due-On-Sale Clauses; Assumption
                  Agreements.............................................     86
   SECTION 3.12.  Realization Upon Defaulted Mortgage Loans;
                  Determination of Excess Proceeds; Special Loss
                  Mitigation.............................................     87
   SECTION 3.13.  Trustee to Cooperate; Release of Mortgage Files........     91
</TABLE>

                                       -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
   SECTION 3.14.  Documents, Records and Funds in Possession of Servicer
                  to be Held for the Trustee.............................     93
   SECTION 3.15.  Servicing Compensation.................................     93
   SECTION 3.16.  Access to Certain Documentation........................     93
   SECTION 3.17.  Annual Statement as to Compliance......................     94
   SECTION 3.18.  Annual Independent Public Accountants' Servicing
                  Statement; Financial Statements........................     94
   SECTION 3.19.  Rights of the NIMs Insurer.............................     96
   SECTION 3.20.  Periodic Filings.......................................     97
   SECTION 3.21.  Indemnification by Trustee.............................    100
   SECTION 3.22.  Indemnification by Servicer............................    100
   SECTION 3.23.  Prepayment Charge Reporting Requirements...............    101
   SECTION 3.24.  Information to the Trustee.............................    101
   SECTION 3.25.  Indemnification........................................    101
   SECTION 3.26.  Solicitation...........................................    102
   SECTION 3.27.  High Cost Mortgage Loans...............................    102
   SECTION 3.28.  Special Servicing Agreements...........................    102
   SECTION 3.29.  Subordination of Liens.................................    102

ARTICLE IV DISTRIBUTIONS.................................................    103
   SECTION 4.01.  Advances...............................................    103
   SECTION 4.02.  Reduction of Servicing Compensation in Connection with
                  Prepayment Interest Shortfalls.........................    104
   SECTION 4.03.  Distributions on the REMIC Interests...................    104
   SECTION 4.04.  Distributions..........................................    105
   SECTION 4.05.  Monthly Statements to Certificateholders...............    115

ARTICLE V THE CERTIFICATES...............................................    119
   SECTION 5.01.  The Certificates.......................................    119
   SECTION 5.02.  Certificate Register; Registration of Transfer and
                  Exchange of Certificates...............................    121
   SECTION 5.03.  Mutilated, Destroyed, Lost or Stolen Certificates......    125
   SECTION 5.04.  Persons Deemed Owners..................................    125
   SECTION 5.05.  Access to List of Certificateholders' Names and
                  Addresses..............................................    125
   SECTION 5.06.  Book-Entry Certificates................................    126
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
   SECTION 5.07.  Notices to Depository..................................    126
   SECTION 5.08.  Definitive Certificates................................    127
   SECTION 5.09.  Maintenance of Office or Agency........................    127
   SECTION 5.10.  Authenticating Agents..................................    127

ARTICLE VI THE DEPOSITOR AND THE SERVICER................................    128
   SECTION 6.01.  Respective Liabilities of the Depositor and the
                  Servicer...............................................    128
   SECTION 6.02.  Merger or Consolidation of the Depositor or the
                  Servicer...............................................    128
   SECTION 6.03.  Limitation on Liability of the Depositor, the Servicer
                  and Others.............................................    129
   SECTION 6.04.  Limitation on Resignation of Servicer..................    129
   SECTION 6.05.  Errors and Omissions Insurance; Fidelity Bonds.........    130

ARTICLE VII DEFAULT; TERMINATION OF SERVICER.............................    130
   SECTION 7.01.  Events of Default......................................    130
   SECTION 7.02.  Trustee to Act; Appointment of Successor...............    132
   SECTION 7.03.  Notification to Certificateholders.....................    133

ARTICLE VIII CONCERNING THE TRUSTEE......................................    133
   SECTION 8.01.  Duties of the Trustee..................................    133
   SECTION 8.02.  Certain Matters Affecting the Trustee..................    134
   SECTION 8.03.  Trustee Not Liable for Certificates or Mortgage Loans..    136
   SECTION 8.04.  Trustee May Own Certificates...........................    136
   SECTION 8.05.  Trustee's Fees and Expenses............................    136
   SECTION 8.06.  Indemnification and Expenses of Trustee................    136
   SECTION 8.07.  Eligibility Requirements for Trustee...................    138
   SECTION 8.08.  Resignation and Removal of Trustee.....................    138
   SECTION 8.09.  Successor Trustee......................................    139
   SECTION 8.10.  Merger or Consolidation of Trustee.....................    139
   SECTION 8.11.  Appointment of Co-Trustee or Separate Trustee..........    139
   SECTION 8.12.  Tax Matters............................................    140

ARTICLE IX TERMINATION...................................................    143
   SECTION 9.01.  Termination upon Liquidation or Repurchase of all
                  Mortgage Loans.........................................    143
   SECTION 9.02.  Final Distribution on the Certificates.................    144
   SECTION 9.03.  Additional Termination Requirements....................    145

ARTICLE X MISCELLANEOUS PROVISIONS.......................................    147
</TABLE>

                                      -iii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
   SECTION 10.01. Amendment..............................................    147
   SECTION 10.02. Counterparts...........................................    148
   SECTION 10.03. Governing Law..........................................    148
   SECTION 10.04. Intention of Parties...................................    149
   SECTION 10.05. Notices................................................    149
   SECTION 10.06. Severability of Provisions.............................    150
   SECTION 10.07. Assignment.............................................    150
   SECTION 10.08. Limitation on Rights of Certificateholders.............    151
   SECTION 10.09. Inspection and Audit Rights............................    152
   SECTION 10.10. Certificates Nonassessable and Fully Paid..............    152
   SECTION 10.11. Compliance with Regulation AB..........................    152
   SECTION 10.12. Third Party Rights.....................................    153
   SECTION 10.13. Additional Rights of the NIMs Insurer..................    153
   SECTION 10.14. [RESERVED].............................................    153
</TABLE>

                                      -iv-

<PAGE>

EXHIBIT A     FORMS OF CERTIFICATES
EXHIBIT B     MORTGAGE LOAN SCHEDULE - MORTGAGE POOL
EXHIBIT C     [RESERVED]
EXHIBIT D     FORM OF TRUSTEE CERTIFICATION
EXHIBIT E-1   FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT
EXHIBIT E-2   FORM OF TRANSFEROR'S AFFIDAVIT
EXHIBIT F     FORM OF TRANSFEROR CERTIFICATE
EXHIBIT G     FORM OF INVESTMENT LETTER (ACCREDITED INVESTOR)
EXHIBIT H     FORM OF RULE 144A INVESTMENT LETTER
              (QUALIFIED INSTITUTIONAL BUYER)
EXHIBIT I     FORM OF REQUEST FOR RELEASE
EXHIBIT J     [RESERVED]
EXHIBIT K     FORM OF BACK-UP CERTIFICATION OF TRUSTEE
EXHIBIT L     FORM OF OFFICER'S CERTIFICATE OF SERVICER
EXHIBIT M-1   FORM OF CLASS A-1 CAP CORRIDOR CONTRACT
EXHIBIT M-2   FORM OF CLASS A-2 CAP CORRIDOR CONTRACT
EXHIBIT M-3   FORM OF SUBORDINATE CERTIFICATES CAP CONTRACT
EXHIBIT M-4   FORM OF CREDIT SUPPORT FOR CAP CORRIDOR CONTRACTS
EXHIBIT M-5   FORM OF ISDA MASTER AGREEMENT AND SCHEDULE RELATING TO CORRIDOR
              CONTRACTS
EXHIBIT N     [RESERVED]
EXHIBIT O     FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER TO
              REGULATION S BOOK-ENTRY CERTIFICATE FROM A HOLDER OF A RULE
              144A BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE
EXHIBIT P     FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER PURSUANT TO
              RULE 144A FROM A HOLDER OF A REGULATION S BOOK-ENTRY
              CERTIFICATE OR DEFINITIVE CERTIFICATE
EXHIBIT Q-1   FORM OF CAP CONTRACT
EXHIBIT Q-2   FORM OF SWAP AGREEMENT
EXHIBIT Q-3   FORM OF CREDIT SUPPORT ANNEX FOR CAP CONTRACT AND
              SWAP AGREEMENT
EXHIBIT Q-4   FORM OF ISDA MASTER AGREEMENT AND SCHEDULE RELATING TO CAP AND
              SWAP
EXHIBIT R     FORM OF ASSESSMENT OF COMPLIANCE
EXHIBIT S     SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
EXHIBIT T     FORM OF SARBANES-OXLEY CERTIFICATIONS
EXHIBIT U     FORM OF ITEM 1123 CERTIFICATION OF SERVICER
EXHIBIT V     FORM OF DELINQUENCY REPORT
SCHEDULE X
SCHEDULE Y
SCHEDULE Z

                                       -i-
<PAGE>

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

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

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

THE SWAP REMIC

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

<TABLE>
<CAPTION>
         Initial Principal   Interest
Class         Balance          Rate
-----    -----------------   --------
<S>      <C>                 <C>
1-SW1    $ 83,064,990.377       (1)
1-SW1A   $  6,947,879.387       (2)
1-SW1B   $  6,947,879.387       (3)
1-SW2A   $  7,799,475.084       (2)
1-SW2B   $  7,799,475.084       (3)
1-SW3A   $  7,901,939.752       (2)
1-SW3B   $  7,901,939.752       (3)
1-SW4A   $  7,339,518.902       (2)
1-SW4B   $  7,339,518.902       (3)
1-SW5A   $  6,658,249.666       (2)
1-SW5B   $  6,658,249.666       (3)
1-SW6A   $  6,102,453.910       (2)
</TABLE>

<PAGE>

<TABLE>
<S>       <C>                 <C>
1-SW6B    $  6,102,453.910       (3)
1-SW7A    $  5,700,766.431       (2)
1-SW7B    $  5,700,766.431       (3)
1-SW8A    $  5,387,017.778       (2)
1-SW8B    $  5,387,017.778       (3)
1-SW9A    $  5,021,264.727       (2)
1-SW9B    $  5,021,264.727       (3)
1-SW10A   $  4,729,241.753       (2)
1-SW10B   $  4,729,241.753       (3)
1-SW11A   $  4,437,835.052       (2)
1-SW11B   $  4,437,835.052       (3)
1-SW12A   $  4,276,723.571       (2)
1-SW12B   $  4,276,723.571       (3)
1-SW13A   $  6,129,973.667       (2)
1-SW13B   $  6,129,973.667       (3)
1-SW14A   $ 10,967,505.855       (2)
1-SW14B   $ 10,967,505.855       (3)
1-SW15A   $ 11,348,754.529       (2)
1-SW15B   $ 11,348,754.529       (3)
1-SW16A   $  8,551,259.182       (2)
1-SW16B   $  8,551,259.182       (3)
1-SW17A   $  6,329,986.391       (2)
1-SW17B   $  6,329,986.391       (3)
1-SW18A   $  5,050,135.524       (2)
1-SW18B   $  5,050,135.524       (3)
1-SW19A   $  4,150,201.776       (2)
1-SW19B   $  4,150,201.776       (3)
1-SW20A   $  3,664,407.747       (2)
1-SW20B   $  3,664,407.747       (3)
1-SW21A   $  3,417,142.489       (2)
1-SW21B   $  3,417,142.489       (3)
1-SW22A   $  3,139,625.280       (2)
1-SW22B   $  3,139,625.280       (3)
1-SW23A   $  2,880,030.407       (2)
1-SW23B   $  2,880,030.407       (3)
1-SW24A   $  2,661,599.139       (2)
1-SW24B   $  2,661,599.139       (3)
1-SW25A   $    235,199.001       (2)
1-SW25B   $    235,199.001       (3)
1-SW26A   $  1,757,586.685       (2)
1-SW26B   $  1,757,586.685       (3)
1-SW27A   $  4,651,068.243       (2)
1-SW27B   $  4,651,068.243       (3)
1-SW28A   $  3,866,179.342       (2)
1-SW28B   $  3,866,179.342       (3)
1-SW29A   $  2,993,270.915       (2)
1-SW29B   $  2,993,270.915       (3)
1-SW30A   $  2,480,815.701       (2)
</TABLE>

                                       -2-

<PAGE>

<TABLE>
<S>       <C>                 <C>
1-SW30B   $  2,480,815.701       (3)
1-SW31A   $  2,120,471.729       (2)
1-SW31B   $  2,120,471.729       (3)
1-SW32A   $  1,948,523.193       (2)
1-SW32B   $  1,948,523.193       (3)
1-SW33A   $  1,793,459.701       (2)
1-SW33B   $  1,793,459.701       (3)
1-SW34A   $  1,608,072.218       (2)
1-SW34B   $  1,608,072.218       (3)
1-SW35A   $  1,450,735.735       (2)
1-SW35B   $  1,450,735.735       (3)
1-SW36A   $  1,335,963.301       (2)
1-SW36B   $  1,335,963.301       (3)
1-SW37A   $  1,254,329.523       (2)
1-SW37B   $  1,254,329.523       (3)
1-SW38A   $  1,205,704.889       (2)
1-SW38B   $  1,205,704.889       (3)
1-SW39A   $  1,159,113.506       (2)
1-SW39B   $  1,159,113.506       (3)
1-SW40A   $  1,081,730.071       (2)
1-SW40B   $  1,081,730.071       (3)
1-SW41A   $  1,015,861.376       (2)
1-SW41B   $  1,015,861.376       (3)
1-SW42A   $ 18,964,918.093       (2)
1-SW42B   $ 18,964,918.093       (3)
2-SW2     $127,942,171.163       (4)
2-SW1A    $ 10,701,581.613       (5)
2-SW1B    $ 10,701,581.613       (6)
2-SW2A    $ 12,013,265.416       (5)
2-SW2B    $ 12,013,265.416       (6)
2-SW3A    $ 12,171,088.248       (5)
2-SW3B    $ 12,171,088.248       (6)
2-SW4A    $ 11,304,810.598       (5)
2-SW4B    $ 11,304,810.598       (6)
2-SW5A    $ 10,255,474.834       (5)
2-SW5B    $ 10,255,474.834       (6)
2-SW6A    $  9,399,401.590       (5)
2-SW6B    $  9,399,401.590       (6)
2-SW7A    $  8,780,696.069       (5)
2-SW7B    $  8,780,696.069       (6)
2-SW8A    $  8,297,439.722       (5)
2-SW8B    $  8,297,439.722       (6)
2-SW9A    $  7,734,082.773       (5)
2-SW9B    $  7,734,082.773       (6)
2-SW10A   $  7,284,289.747       (5)
2-SW10B   $  7,284,289.747       (6)
2-SW11A   $  6,835,445.948       (5)
2-SW11B   $  6,835,445.948       (6)
</TABLE>

                                       -3-

<PAGE>

<TABLE>
<S>       <C>                 <C>
2-SW12A   $  6,587,291.429       (5)
2-SW12B   $  6,587,291.429       (6)
2-SW13A   $  9,441,789.333       (5)
2-SW13B   $  9,441,789.333       (6)
2-SW14A   $ 16,892,875.145       (5)
2-SW14B   $ 16,892,875.145       (6)
2-SW15A   $ 17,480,099.471       (5)
2-SW15B   $ 17,480,099.471       (6)
2-SW16A   $ 13,171,212.818       (5)
2-SW16B   $ 13,171,212.818       (6)
2-SW17A   $  9,749,862.109       (5)
2-SW17B   $  9,749,862.109       (6)
2-SW18A   $  7,778,551.476       (5)
2-SW18B   $  7,778,551.476       (6)
2-SW19A   $  6,392,414.224       (5)
2-SW19B   $  6,392,414.224       (6)
2-SW20A   $  5,644,162.253       (5)
2-SW20B   $  5,644,162.253       (6)
2-SW21A   $  5,263,308.011       (5)
2-SW21B   $  5,263,308.011       (6)
2-SW22A   $  4,835,857.720       (5)
2-SW22B   $  4,835,857.720       (6)
2-SW23A   $  4,436,012.593       (5)
2-SW23B   $  4,436,012.593       (6)
2-SW24A   $  4,099,570.361       (5)
2-SW24B   $  4,099,570.361       (6)
2-SW25A   $    362,268.999       (5)
2-SW25B   $    362,268.999       (6)
2-SW26A   $  2,707,150.815       (5)
2-SW26B   $  2,707,150.815       (6)
2-SW27A   $  7,163,881.757       (5)
2-SW27B   $  7,163,881.757       (6)
2-SW28A   $  5,954,944.158       (5)
2-SW28B   $  5,954,944.158       (6)
2-SW29A   $  4,610,433.085       (5)
2-SW29B   $  4,610,433.085       (6)
2-SW30A   $  3,821,115.799       (5)
2-SW30B   $  3,821,115.799       (6)
2-SW31A   $  3,266,090.271       (5)
2-SW31B   $  3,266,090.271       (6)
2-SW32A   $  3,001,243.807       (5)
2-SW32B   $  3,001,243.807       (6)
2-SW33A   $  2,762,404.799       (5)
2-SW33B   $  2,762,404.799       (6)
2-SW34A   $  2,476,858.782       (5)
2-SW34B   $  2,476,858.782       (6)
2-SW35A   $  2,234,518.765       (5)
2-SW35B   $  2,234,518.765       (6)
</TABLE>

                                       -4-

<PAGE>

<TABLE>
<S>       <C>                 <C>
2-SW36A   $  2,057,738.699       (5)
2-SW36B   $  2,057,738.699       (6)
2-SW37A   $  1,932,000.977       (5)
2-SW37B   $  1,932,000.977       (6)
2-SW38A   $  1,857,106.111       (5)
2-SW38B   $  1,857,106.111       (6)
2-SW39A   $  1,785,342.994       (5)
2-SW39B   $  1,785,342.994       (6)
2-SW40A   $  1,666,151.929       (5)
2-SW40B   $  1,666,151.929       (6)
2-SW41A   $  1,564,696.624       (5)
2-SW41B   $  1,564,696.624       (6)
2-SW42A   $ 29,211,016.407       (5)
2-SW42B   $ 29,211,016.407       (6)
SWR              (7)             (7)
</TABLE>

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

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

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

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

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

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

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

THE LOWER TIER REMIC

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

                                       -5-

<PAGE>

<TABLE>
<CAPTION>
                                       Class(es) of
           Initial                    Corresponding
          Principal   Interest   Certificates or Related
Class      Balance      Rate          Mortgage Group
-----     ---------   --------   -----------------------
<S>       <C>         <C>        <C>
LTA-1         (1)        (8)              A-1, R
LTA-2A        (1)        (8)              A-2A
LTA-2B        (1)        (8)              A-2B
LTA-2C        (1)        (8)              A-2C
LTA-2D        (1)        (8)              A-2D
LTM-1         (1)        (8)               M-1
LTM-2         (1)        (8)               M-2
LTM-3         (1)        (8)               M-3
LTM-4         (1)        (8)               M-4
LTM-5         (1)        (8)               M-5
LTM-6         (1)        (8)               M-6
LTB-1         (1)        (8)               B-1
LTB-2         (1)        (8)               B-2
LTB-3         (1)        (8)               B-3
LTIX          (2)        (8)               N/A
LTII1A        (3)        (8)            Group One
LTII1B        (4)        (9)            Group One
LTII2A        (5)        (8)            Group Two
LTII2B        (6)       (10)            Group Two
LTIIX         (7)        (8)               N/A
LT-IO        (11)       (11)               N/A
LTR          (12)       (12)               N/A
</TABLE>

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

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

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

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

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

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

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

(8)  For each Distribution Date, the interest rate for each of the Lower Tier
     REMIC Regular Interests (other than the Class LTII1B, the Class LTII2B and
     the Class LT-IO Interests) shall be a per annum rate (but not less than
     zero) equal to the product of (i) the weighted average of the interest
     rates on the SWAP REMIC Regular Interests for such Distribution Date and
     (ii) a fraction the numerator of which is 30 and the denominator of which
     is the actual

                                       -6-
<PAGE>

     number of days in the Accrual Period for the LIBOR Certificates, provided
     however, that for any Distribution Date on which the Class LT-IO Interest
     is entitled to a portion of interest accruals on a SWAP REMIC Regular
     Interest ending with a designation "A" as described in footnote 11 below,
     such weighted average shall be computed by first subjecting the rate on
     such SWAP REMIC Regular Interest to a cap equal to Swap LIBOR for such
     Distribution Date.

(9)  For each Distribution Date, the interest rate for the Class LTII1B Interest
     shall be a per annum rate equal to the product of (i) the weighted average
     of the interest rates on the SWAP REMIC Regular Interests beginning with
     the designation "1" for such Distribution Date and (ii) a fraction the
     numerator of which is 30 and the denominator of which is the actual number
     of days in the Accrual Period for the LIBOR Certificates, provided,
     however, that for any Distribution Date on which the Class LT-IO Interest
     is entitled to a portion of interest accruals on a SWAP REMIC Regular
     Interest ending with a designation "A" as described in footnote 11 below,
     such weighted average shall be computed by first subjecting the rate on
     such SWAP REMIC Regular Interest to a cap equal to Swap LIBOR for such
     Distribution Date.

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

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

<TABLE>
<CAPTION>
                       SWAP REMIC
Distribution Date   Regular Interest
-----------------   ----------------
<S>                 <C>
7                   Class 1-SW1A
                    Class 2-SW1A
7-8                 Class 1-SW2A
                    Class 2-SW2A
7-9                 Class 1-SW3A
                    Class 2-SW3A
7-10                Class 1-SW4A
                    Class 2-SW4A
7-11                Class 1-SW5A
                    Class 2-SW5A
7-12                Class 1-SW6A
                    Class 2-SW6A
7-13                Class 1-SW7A
                    Class 2-SW7A
7-14                Class 1-SW8A
                    Class 2-SW8A
7-15                Class 1-SW9A
                    Class 2-SW9A
7-16                Class 1-SW10A
                    Class 2-SW10A
7-17                Class 1-SW11A
                    Class 2-SW11A
7-18                Class 1-SW12A
</TABLE>

                                       -7-

<PAGE>

<TABLE>
<S>                 <C>
                    Class 2-SW12A
7-19                Class 1-SW13A
                    Class 2-SW13A
7-20                Class 1-SW14A
                    Class 2-SW14A
7-21                Class 1-SW15A
                    Class 2-SW15A
7-22                Class 1-SW16A
                    Class 2-SW16A
7-23                Class 1-SW17A
                    Class 2-SW17A
7-24                Class 1-SW18A
                    Class 2-SW18A
7-25                Class 1-SW19A
                    Class 2-SW19A
7-26                Class 1-SW20A
                    Class 2-SW20A
7-27                Class 1-SW21A
                    Class 2-SW21A
7-28                Class 1-SW22A
                    Class 2-SW22A
7-29                Class 1-SW23A
                    Class 2-SW23A
7-30                Class 1-SW24A
                    Class 2-SW24A
7-31                Class 1-SW25A
                    Class 2-SW25A
7-32                Class 1-SW26A
                    Class 2-SW26A
7-33                Class 1-SW27A
                    Class 2-SW27A
7-34                Class 1-SW28A
                    Class 2-SW28A
7-35                Class 1-SW29A
                    Class 2-SW29A
7-36                Class 1-SW30A
                    Class 2-SW30A
7-37                Class 1-SW31A
                    Class 2-SW31A
7-38                Class 1-SW32A
                    Class 2-SW32A
7-39                Class 1-SW33A
                    Class 2-SW33A
7-40                Class 1-SW34A
                    Class 2-SW34A
7-41                Class 1-SW35A
                    Class 2-SW35A
7-42                Class 1-SW36A
                    Class 2-SW36A
7-43                Class 1-SW37A
                    Class 2-SW37A
7-44                Class 1-SW38A
                    Class 2-SW38A
7-45                Class 1-SW39A
                    Class 2-SW39A
</TABLE>

                                       -8-

<PAGE>

<TABLE>
<S>                 <C>
7-46                Class 1-SW40A
                    Class 2-SW40A
7-47                Class 1-SW41A
                    Class 2-SW41A
7-48                Class 1-SW42A
                    Class 2-SW42A
</TABLE>

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

UPPER TIER REMIC

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

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

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

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

(3)  The Uncertificated Class C Interest shall have an initial principal balance
     equal to the initial Overcollateralization Amount. The Uncertificated Class
     C Interest shall accrue interest on a notional balance set forth in the
     definition of Class C Current Interest at a rate equal to the Class C
     Distributable Interest Rate. The Uncertificated Class C Interest shall be
     represented by the Class C Certificates.

                                       -9-

<PAGE>

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

THE CERTIFICATES

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

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

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

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

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

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

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

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

                                    ARTICLE I

                                   DEFINITIONS

                                      -10-
<PAGE>

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

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

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

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

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

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

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

     Advance: The aggregate of the advances required to be made by the Servicer
with respect to any Distribution Date pursuant to Section 4.01, the amount of
any such advances being equal to the sum of the aggregate amount of all payments
of principal and interest (or, with respect to the interest-only Mortgage Loans,
payments of scheduled interest) (net of the Servicing Fee) on the related
Mortgage Loans that were due during the applicable Due Period and not received
as of the close of business on the related Determination Date, except as
provided in Section 4.01 hereof, less the aggregate amount of any such
Delinquent payments that the Servicer has determined would constitute a
Non-Recoverable Advance were an advance to be made with respect thereto;
provided, however, that with respect to (i) any Mortgage Loan that is 150 days
delinquent or more (whether or not the Mortgage Loan has been converted to an
REO Property), (ii) shortfalls in principal and interest due to bankruptcy
proceedings or the application of the Relief Act or similar laws and (iii) the
principal portion of any amount paid on a Balloon Loan, there will be no
obligation to make advances and, provided further, however, that with respect to
any Mortgage Loan that has been converted to an REO Property which is less than
150 days delinquent, the obligation to make Advances shall only be to payments
of interest (subject to the exceptions described above and net of the related
Servicing Fees), to be calculated after taking into account rental income.

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

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

                                      -11-

<PAGE>

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

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

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

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

     Appraised Value: With respect to a Mortgage Loan the proceeds of which were
used to purchase the related Mortgaged Property, the "Appraised Value" of a
Mortgaged Property is the lesser of (1) the appraised value based on an
appraisal made for the Sponsor by an independent fee appraiser at the time of
the origination of the related Mortgage Loan, and (2) the sales price of such
Mortgaged Property at such time of origination. With respect to a Mortgage Loan
the proceeds of which were used to refinance an existing mortgage loan, the
"Appraised Value" is the appraised value of the Mortgaged Property based upon
the appraisal obtained at the time of refinancing.

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

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

     Auction: The one-time auction conducted by the Trustee, as described in
Section 9.01(b) hereof.

     Auction Date: The date on which the Auction occurs.

     Authenticating Agent: As defined in Section 5.10.

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

     Balloon Loan: A Mortgage Loan having an original term to stated maturity of
approximately 15 or 30 years which provides for level monthly payments of
principal and interest based on a 30-, 40- or 50-

                                      -12-

<PAGE>

year amortization schedule, with a balloon payment of the remaining outstanding
principal balance due on such Mortgage Loan at its stated maturity.

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

     Business Day: Any day other than (1) a Saturday or a Sunday, or (2) a day
on which banking institutions in the State of Oregon, State of Illinois or in
the City of New York, New York are authorized or obligated by law or executive
order to be closed.

     Cap Contract: The schedule and master agreement (attached hereto as Exhibit
Q-4 hereto), including the confirmation thereto (attached as Exhibit Q-1 hereto)
and the related credit support annex (attached as Exhibit Q-3 hereto), between
the Cap Contract Counterparty and the Supplemental Interest Trust Trustee for
the benefit of the Certificateholders or any other cap or swap agreement
(including any related schedules) held by the Supplemental Interest Trust
pursuant to Section 4.04(l) hereof.

     Cap Contract Account: The separate Eligible Account created and maintained
by the Supplemental Interest Trust Trustee pursuant to Section 4.04(l) in the
name of the Supplemental Interest Trust Trustee for the benefit of the Trust
Fund and designated "LaSalle Bank National Association, as trustee, in trust for
registered holders of Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-HE1." Funds in the Cap Contract Account
shall be held in trust for the Issuing Entity for the uses and purposes set
forth in this Agreement.

     Cap Contract Counterparty: The Royal Bank of Scotland plc, and its
successors.

     Cap Contract Notional Balance: With respect to any Distribution Date, the
cap contract notional balance for such Distribution Date set forth in Schedule I
of the Cap Contract.

     Cap Payments: For each Distribution Date, the cap payment that the Cap
Counterparty is obligated to pay to the Supplemental Interest Trust if LIBOR (as
defined in the Cap Contract) is greater than 5.320%. The Cap Payment is based on
the lesser of (a) the Cap Contract Notional Balance for the Distribution Date
and (b) the excess if any, of (A) the beginning aggregate Certificate Principal
Balance over (B) the Swap Agreement Notional Balance for such Distribution Date,
if LIBOR exceeds 5.320%.

     Cap Posted Collateral Account: The segregated Eligible Account created and
maintained by the Trustee pursuant to Section 4.04(l) in the name of the Trustee
for the benefit of the Issuing Entity and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Merrill Lynch
Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-HE1." Funds in the Cap Posted Collateral Account shall be held in trust for
the Issuing Entity for the uses and purposes set forth in the Cap Contract.

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

     Certificate Account: The separate Eligible Account created and maintained
by the Trustee pursuant to Section 3.05(e) in the name of the Trustee for the
benefit of the Certificateholders and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Merrill Lynch

                                      -13-

<PAGE>

Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-HE1." Funds in the Certificate Account shall be held in trust for the
Certificateholders for the uses and purposes set forth in this Agreement.

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

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

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

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

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

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

     Certificateholder or Holder: The Person in whose name a Certificate is
registered in the Certificate Register (initially, Cede & Co., as nominee for
the Depository) in the case of any Class of Regular Certificates or the Class R
Certificate, except that solely for the purpose of giving any consent pursuant
to this Agreement, any Certificate registered in the name of the Depositor or
any Affiliate of the Depositor shall be deemed not to be Outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Percentage Interests necessary to
effect such consent has been obtained; provided, however, that if any such
Person (including the Depositor) owns 100% of the Percentage Interests evidenced
by a Class of Certificates, such Certificates shall be deemed to be Outstanding
for purposes of any provision hereof that requires the consent of the Holders of
Certificates of a particular Class as a condition to the taking of any action
hereunder. The

                                      -14-

<PAGE>

Trustee is entitled to rely conclusively on a certification of the Depositor or
any Affiliate of the Depositor in determining which Certificates are registered
in the name of an Affiliate of the Depositor.

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

     Class A Certificate Principal Balance: As of any date of determination, the
sum of the Class A-1 Certificate Principal Balance, the Class A-2A Certificate
Principal Balance, the Class A-2B Certificate Principal Balance, the Class A-2C
Certificate Principal Balance, Class A-2D Certificate Principal Balance and the
Class R Certificate Principal Balance.

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

     Class A Principal Distribution Amount: With respect to any Distribution
Date (1) prior to the related Stepdown Date or any Distribution Date on which a
Stepdown Trigger Event exists, 100% of the Principal Distribution Amount for
such Distribution Date and (2) on or after the Stepdown Date where a Stepdown
Trigger Event does not exist, the excess of (A) the Class A Certificate
Principal Balance immediately prior to such Distribution Date over (B) the
lesser of (i) 52.30% of the aggregate Stated Principal Balance of the Mortgage
Loans as of such Distribution Date and (ii) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of such Distribution Date over the
Minimum Required Overcollateralization Amount; provided, however, that in no
event will the Class A Principal Distribution Amount with respect to any
Distribution Date exceed the aggregate Certificate Principal Balance of the
Class A Certificates.

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

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

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

     Class A-1 Corridor Contract: The schedule and the master agreement
(attached as Exhibit M-5 hereto), including the confirmation thereto (attached
as Exhibit M-1 hereto) and the related credit support annex (attached as Exhibit
M-4 hereto), between the Trustee on behalf of the Issuing Entity and the Cap
Contract Counterparty, with respect to the Class A-1 Certificates.

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

                                      -15-

<PAGE>

     Class A-1 Corridor Contract Termination Date: The Distribution Date in
August 2007.

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

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

     Class A-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.1700% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.3400% per annum.

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

     Class A-1 Pass-Through Rate: For the first Distribution Date, 5.4900% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-1 Margin, (2) the Class A-1 Available Funds Cap for such
Distribution Date and (3) the Class A-1 Maximum Rate Cap for such Distribution
Date.

     Class A-1 Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Class A-1 Corridor Contract, a rate equal
to the lesser of One-Month LIBOR and 10.830% per annum.

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

                                      -16-

<PAGE>

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

     Class A-2 Certificates: Any of the Class A-2A, Class A-2B, Class A-2C and
Class A-2D Certificates.

     Class A-2 Corridor Contract: The schedule and master agreement (attached as
Exhibit M-5 hereto), including the confirmation thereto (attached as Exhibit M-2
hereto) and the related credit support annex (attached as Exhibit M-4 hereto),
between the Trustee on behalf of the Issuing Entity and the Cap Contract
Counterparty, with respect to the Class A-2 Certificates.

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

     Class A-2 Corridor Contract Termination Date: The Distribution Date in
August 2007.

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

     Class A-2 Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Class A-2 Corridor Contract, a rate equal
to the lesser of One-Month LIBOR and 10.360% per annum.

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

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

     Class A-2A Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2A Pass-Through Rate on
the Class A-2A Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2A Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2A Certificates.
For purposes of calculating interest, principal distributions on a Distribution
Date will be deemed to have been made on the first day of the Accrual Period in
which such Distribution Date occurs.

                                      -17-

<PAGE>

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

     Class A-2A Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.1300% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.2600% per annum.

     Class A-2A Pass-Through Rate: For the first Distribution Date, 5.4500% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2A Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

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

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

     Class A-2B Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2B Pass-Through Rate on
the Class A-2B Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2B Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2B Certificates.
For purposes of calculating interest, principal distributions on a Distribution
Date will be deemed to have been made on the first day of the Accrual Period in
which such Distribution Date occurs.

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

     Class A-2B Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.1700% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.3400% per annum.

     Class A-2B Pass-Through Rate: For the first Distribution Date, 5.4900% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2B Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

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

                                      -18-

<PAGE>

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

     Class A-2C Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2C Pass-Through Rate on
the Class A-2C Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2C Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2C Certificates.
For purposes of calculating interest, principal distributions on a Distribution
Date will be deemed to have been made on the first day of the Accrual Period in
which such Distribution Date occurs.

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

     Class A-2C Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.2300% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.4600% per annum.

     Class A-2C Pass-Through Rate: For the first Distribution Date, 5.5500% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2C Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

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

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

     Class A-2D Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2D Pass-Through Rate on
the Class A-2D Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2D Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2D Certificates.
For purposes of calculating interest, principal distributions on a Distribution
Date will be deemed to have been made on the first day of the Accrual Period in
which such Distribution Date occurs.

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

                                      -19-

<PAGE>

     Class A-2D Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.3300% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.6600% per annum.

     Class A-2D Pass-Through Rate: For the first Distribution Date, 5.6500% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2D Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

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

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

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

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

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

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

     Class B-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.4500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.6750% per annum.

     Class B-1 Pass-Through Rate: For the first Distribution Date, 7.7700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-1 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

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

                                      -20-

<PAGE>

taking into account distributions of the Class M-1/M-2/M-3 Principal
Distribution Amount on such Distribution Date), (C) the Class M-4 Certificate
Principal Balance (after taking into account distributions of the Class M-4
Principal Distribution Amount on such Distribution Date), (D) the Class M-5
Certificate Principal Balance (after taking into account distributions of the
Class M-5 Principal Distribution Amount on such Distribution Date), (E) the
Class M-6 Certificate Principal Balance (after taking into account distributions
of the Class M-6 Principal Distribution Amount on such Distribution Date) and
(F) the Class B-1 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 85.40% of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date and (B) the excess of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A Certificates and Class M
Certificates has been reduced to zero, the Class B-1 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-1 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A and Class M
Certificates and (II) in no event will the Class B-1 Principal Distribution
Amount with respect to any Distribution Date exceed the Class B-1 Certificate
Principal Balance.

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

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

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

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

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

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

     Class B-2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.4500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.6750% per annum.

                                      -21-

<PAGE>

     Class B-2 Pass-Through Rate: For the first Distribution Date, 7.7700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-2 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance and the Class B-1 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance, Class M-2 Certificate
Principal Balance, and Class M-3 Certificate Principal Balance (after taking
into account distributions of the Class M-1/M-2/M-3 Principal Distribution
Amount on such Distribution Date), (C) the Class M-4 Certificate Principal
Balance (after taking into account distributions of the Class M-4 Principal
Distribution Amount on such Distribution Date), (D) the Class M-5 Certificate
Principal Balance (after taking into account distributions of the Class M-5
Principal Distribution Amount on such Distribution Date), (E) the Class M-6
Certificate Principal Balance (after taking into account distributions of the
Class M-6 Principal Distribution Amount on such Distribution Date), (F) the
Class B-1 Certificate Principal Balance (after taking into account distributions
of the Class B-1 Principal Distribution Amount on such Distribution Date) and
(G) the Class B-2 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 87.80% of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date and (B) the excess of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A, Class M and Class B-1
Certificates has been reduced to zero, the Class B-2 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-2 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M and Class B-1
Certificates and (II) in no event will the Class B-2 Principal Distribution
Amount with respect to any Distribution Date exceed the Class B-2 Certificate
Principal Balance.

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

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

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

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

                                      -22-

<PAGE>

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

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

     Class B-3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.4500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.6750% per annum.

     Class B-3 Pass-Through Rate: For the first Distribution Date, 7.7700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-3 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class B-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance, the Class B-1 Certificate Principal
Balance and the Class B-2 Certificate Principal Balance have been reduced to
zero and a Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event
does not exist, the excess of (1) the sum of (A) the Class A Certificate
Principal Balance (after taking into account distributions of the Class A
Principal Distribution Amount on such Distribution Date), (B) the Class M-1
Certificate Principal Balance, Class M-2 Certificate Principal Balance, and
Class M-3 Certificate Principal Balance (after taking into account distributions
of the Class M-1/M-2/M-3 Principal Distribution Amount on such Distribution
Date), (C) the Class M-4 Certificate Principal Balance (after taking into
account distributions of the Class M-4 Principal Distribution Amount on such
Distribution Date), (D) the Class M-5 Certificate Principal Balance (after
taking into account distributions of the Class M-5 Principal Distribution Amount
on such Distribution Date), (E) the Class M-6 Certificate Principal Balance
(after taking into account distributions of the Class M-6 Principal Distribution
Amount on such Distribution Date), (F) the Class B-1 Certificate Principal
Balance (after taking into account distributions of the Class B-1 Principal
Distribution Amount on such Distribution Date), (G) the Class B-2 Certificate
Principal Balance (after taking into account distributions of the Class B-2
Principal Distribution Amount on such Distribution Date) and (H) the Class B-3
Certificate Principal Balance immediately prior to such Distribution Date over
(2) the lesser of (A) 90.90% of the Stated Principal Balance of the Mortgage
Loans as of such Distribution Date and (B) the excess of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date over the Minimum
Required Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A, Class M, Class B-1 and Class B-2 Certificates
has been reduced to zero, the Class B-3 Principal Distribution Amount will equal
the lesser of (x) the outstanding Certificate Principal Balance of the Class B-3
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A, Class M, Class B-1 and Class B-2 Certificates
and (II) in no event will the Class B-3 Principal Distribution Amount with
respect to any Distribution Date exceed the Class B-3 Certificate Principal
Balance.

                                      -23-

<PAGE>

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

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

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

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

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

     Class C Distributable Interest Rate: The excess, if any, of (a) the
weighted average of the interest rates on the Lower Tier REMIC Regular Interests
(other than the Class LT-IO Interest) over (b) two times the weighted average of
the interest rates on the Lower Tier REMIC I Marker Interests and the Class LTIX
Interest (treating for purposes of this clause (b) the interest rate on each of
the Lower Tier REMIC I Marker Interests as being subject to a cap and a floor
equal to the interest rate of the Corresponding REMIC Regular Interest of the
Corresponding Certificates (as adjusted, if necessary, to reflect the length of
the Accrual Period for the LIBOR Certificates) and treating the Class LTIX
Interest as being capped at zero). The averages described in the preceding
sentence shall be weighted on the basis of the respective principal balances of
the Lower Tier REMIC Regular Interests immediately prior to any date of
determination.

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

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

                                      -24-

<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

                                      -25-

<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

                                      -26-

<PAGE>

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

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

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

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

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

     Class M-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.4000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.6000% per annum.

     Class M-1 Pass-Through Rate: For the first Distribution Date, 5.7200% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-1 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

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

     Class M-1/M-2/M-3 Principal Distribution Amount: With respect to any
Distribution Date on or after the Stepdown Date, 100% of the Principal
Distribution Amount for such Distribution Date if the Class A Certificate
Principal Balance has been reduced to zero and a Stepdown Trigger Event exists,
or as long as a Stepdown Trigger Event does not exist, the excess of (1) the sum
of (A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date) and (B) the Class M-1 Certificate Principal Balance, the Class M-2
Certificate Principal Balance and the Class M-3 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 71.70% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates has been reduced to zero, the Class M-1/M-2/M-3 Principal

                                      -27-

<PAGE>

Distribution Amount will equal the lesser of (x) the outstanding Certificate
Principal Balance of the Class M-1, Class M-2 and Class M-3 Certificates and (y)
100% of the Principal Distribution Amount remaining after any distributions on
such Class A Certificates and (II) in no event will the Class M-1/M-2/M-3
Principal Distribution Amount with respect to any Distribution Date exceed the
Class M-1 Certificate Principal Balance, the Class M-2 Certificate Principal
Balance and the Class M-3 Certificate Principal Balance.

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

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

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

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

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

     Class M-2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.5500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.8250% per annum.

     Class M-2 Pass-Through Rate: For the first Distribution Date, 5.8700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-2 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

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

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

                                      -28-

<PAGE>

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

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

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

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

     Class M-3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.7000% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 1.0500% per annum.

     Class M-3 Pass-Through Rate: For the first Distribution Date, 6.0200% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-3 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

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

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

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

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

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

                                      -29-

<PAGE>

trustee in bankruptcy, less any Non-Supported Interest Shortfall allocated on
such Distribution Date to the Class M-4 Certificates.

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

     Class M-4 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.8500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 1.2750% per annum.

     Class M-4 Pass-Through Rate: For the first Distribution Date, 6.1700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-4 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-4 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance and
Class M-3 Certificate Principal Balance have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance,
Class M-2 Certificate Principal Balance, and Class M-3 Certificate Principal
Balance (after taking into account distributions of the Class M-1/M-2/M-3
Principal Distribution Amount on such Distribution Date) and (C) the Class M-4
Certificate Principal Balance immediately prior to such Distribution Date over
(2) the lesser of (A) 75.40% of the Stated Principal Balances of the Mortgage
Loans as of such Distribution Date and (B) the excess of the Stated Principal
Balances for the Mortgage Loans as of such Distribution Date over the Minimum
Required Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates, the Class M-1 Certificates, the
Class M-2 Certificates and the Class M-3 Certificates has been reduced to zero,
the Class M-4 Principal Distribution Amount will equal the lesser of (x) the
outstanding Certificate Principal Balance of the Class M-4 Certificates and (y)
100% of the Principal Distribution Amount remaining after any distributions on
such Class A, Class M-1, Class M-2 and Class M-3 Certificates and (II) in no
event will the Class M-4 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-4 Certificate Principal Balance.

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

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

                                      -30-

<PAGE>

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

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

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

     Class M-5 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-5 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-5 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-5 Pass-Through Rate for the
related Accrual Period.

     Class M-5 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 1.1500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 1.7250% per annum.

     Class M-5 Pass-Through Rate: For the first Distribution Date, 6.4700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-5 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-5 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance and Class M-4 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance, Class M-2 Certificate
Principal Balance, and Class M-3 Certificate Principal Balance (after taking
into account distributions of the Class M-1/M-2/M-3 Principal Distribution
Amount on such Distribution Date), (C) the Class M-4 Certificate Principal
Balance (after taking into account distributions of the Class M-4 Principal
Distribution Amount on such Distribution Date) and (D) the Class M-5 Certificate
Principal Balance immediately prior to such Distribution Date over (2) the
lesser of (A) 78.90% of the Stated Principal Balances of the Mortgage Loans as
of such Distribution Date and (B) the excess of the Stated Principal Balances
for the Mortgage Loans as of such Distribution Date over the Minimum Required
Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates, the Class M-1 Certificates, the
Class M-2 Certificates, the Class M-3 Certificates and the Class M-4
Certificates has been reduced to zero, the Class M-5 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class M-5 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M-1, Class M-2,
Class M-3 and Class M-4 Certificates and (II) in no event will the

                                      -31-
<PAGE>

Class M-5 Principal Distribution Amount with respect to any Distribution Date
exceed the Class M-5 Certificate Principal Balance.

     Class M-5 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-5 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-5 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-5 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-6 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-6 Certificates.

     Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, executed by the Trustee and authenticated by
the Authenticating Agent in substantially the form set forth as Exhibit A
hereto, representing the right to distributions as set forth herein.

     Class M-6 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-6 Certificates.

     Class M-6 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-6 Pass-Through Rate on
the Class M-6 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class M-6 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class M-6 Certificates.

     Class M-6 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-6 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-6 Certificates with respect to Current Interest or Interest Carry Forward
Amounts on such prior Distribution Dates and (2) interest on such excess (to the
extent permitted by applicable law) at the Class M-6 Pass-Through Rate for the
related Accrual Period.

     Class M-6 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 1.2500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 1.8750% per annum.

     Class M-6 Pass-Through Rate: For the first Distribution Date, 6.5700% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-6 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-6 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance, Class M-4 Certificate Principal Balance
and Class M-5 Certificate Principal Balance have been reduced to zero and a
Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event does not
exist, the excess of (1) the sum of (A) the Class A Certificate Principal
Balance (after taking into account distributions of the Class A Principal
Distribution Amount on such Distribution Date), (B) the Class M-1 Certificate
Principal Balance, Class M-2 Certificate Principal Balance, and Class M-3
Certificate Principal Balance (after taking into account distributions of the
Class

                                      -32-

<PAGE>

M-1/M-2/M-3 Principal Distribution Amount on such Distribution Date), (C) the
Class M-4 Certificate Principal Balance (after taking into account distributions
of the Class M-4 Principal Distribution Amount on such Distribution Date), (D)
the Class M-5 Certificate Principal Balance (after taking into account
distributions of the Class M-5 Principal Distribution Amount on such
Distribution Date), and (E) the Class M-6 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 82.20% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates, the Class M-2 Certificates, the
Class M-3 Certificates, the Class M-4 Certificates and the Class M-5
Certificates has been reduced to zero, the Class M-6 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class M-6 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M-1, Class M-2,
Class M-3, Class M-4 and Class M-5 Certificates and (II) in no event will the
Class M-6 Principal Distribution Amount with respect to any Distribution Date
exceed the Class M-6 Certificate Principal Balance.

     Class M-6 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-6 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-6 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-6 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

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

     Class Payment Shortfall: As defined in Section 2.07(d)(ii) herein.

     Class R Certificate: The Class R Certificate executed by the Trustee and
authenticated by the Authenticating Agent in substantially the form set forth in
Exhibit A.

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

     Class R Current Interest: As of any Distribution Date, the interest accrued
during the related Accrual Period at the Class R Pass-Through Rate on the Class
R Certificate Principal Balance as of such Distribution Date plus the portion of
any previous distributions on such Class in respect of Current Interest or a
Class R Interest Carry Forward Amount that is recovered as a voidable preference
by a trustee in bankruptcy, less any Non-Supported Interest Shortfall allocated
on such Distribution Date to the Class R Certificate. For purposes of
calculating interest, principal distributions on a Distribution Date will be
deemed to have been made on the first day of the Accrual Period in which such
Distribution Date occurs.

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

                                      -33-

<PAGE>

     Class R Margin: As of any Distribution Date up to and including the Initial
Optional Termination Date for the Certificates, 0.1700% per annum and, as of any
Distribution Date after the Initial Optional Termination Date, 0.3400% per
annum.

     Class R Pass-Through Rate: For the first Distribution Date, 5.4900% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class R Margin, (2) the Class A-1 Available Funds Cap for such
Distribution Date and (3) the Class A-1 Maximum Rate Cap for such Distribution
Date.

     Class SWR Interest: The sole class of "residual interest" in the SWAP
REMIC.

     Closing Date: March 8, 2007.

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

     Collection Account: The separate Eligible Accounts created and initially
maintained by the Servicer pursuant to Section 3.05(d) in the name of the
Trustee for the benefit of the Certificateholders and designated, "Wilshire
Credit Corporation, as servicer for LaSalle Bank National Association, as
trustee, in trust for registered holders of Merrill Lynch Mortgage Investors
Trust, Mortgage Loan Asset-Backed Certificates, Series 2007-HE1". Funds in the
Collection Account shall be held in trust for the Certificateholders for the
uses and purposes set forth in this Agreement.

     Combined Loan-to-Value Ratio: The fraction, expressed as a percentage, the
numerator of which is the sum of (1) the original principal balance of the
related Mortgage Loan and (2) any outstanding principal balances of Mortgage
Loans the liens on which are senior to the lien on such related Mortgage Loan
(such sum calculated at the date of origination of such related Mortgage Loan)
and the denominator of which is the lesser of (A) the Appraised Value of the
related Mortgaged Property and (B) the sales price of the related Mortgaged
Property at time of origination.

     Commission: The Securities and Exchange Commission.

     Compensating Interest: For any Distribution Date and all Principal
Prepayments in full in respect of a Mortgage Loan that are received during the
period from the first day of the related Prepayment Period through the last day
of the calendar month preceding such Distribution Date, a payment made by the
Servicer in an amount not to exceed the product of (a) one-twelfth of 0.25% and
(b) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date, equal to the amount of interest at the Net Mortgage Rate for
that Mortgage Loan from the date of prepayment through the 30th day of such
preceding calendar month; provided that any month consisting of less than 30
days shall be deemed to consist of 30 days.

     Corresponding Certificates: With respect to the Class LTA-1 Interest, the
Class A-1 and Class R Certificates. With respect to the Class LTA-2A Interest,
the Class A-2A Certificates. With respect to the Class LTA-2B Interest, the
Class A-2B Certificates. With respect to the Class LTA-2C Interest, the Class
A-2C Certificates. With respect to the Class LTA-2D Interest, the Class A-2D
Certificates. With respect to the Class LTM-1 Interest, the Class M-1
Certificates. With respect to the Class LTM-2 Interest, the Class M-2
Certificates. With respect to the Class LTM-3 Interest, the Class M-3
Certificates. With respect to the Class LTM-4 Interest, the Class M-4
Certificates. With respect to the Class LTM-5 Interest, the Class M-5
Certificates. With respect to the Class LTM-6 Interest, the Class M-6
Certificates. With respect to the Class LTB-1 Interest, the Class B-1
Certificates. With respect to the Class LTB-2 Interest, the Class B-2
Certificates. With respect to the Class LTB-3 Interest, the Class B-3
Certificates.

                                      -34-

<PAGE>

     Corresponding REMIC Regular Interest: For each Class of Certificates, the
interest in the Upper Tier REMIC listed on the same row in the table entitled
"Upper Tier REMIC" in the Preliminary Statement.

     Corridor Contract: Any of the Class A-1 Corridor Contract, the Class A-2
Corridor Contract or the Subordinate Certificate Corridor Contract.

     Corridor Contract Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 4.04(k)(i) in the name of the
Trustee for the benefit of the Issuing Entity and designated "LaSalle Bank
National Association, as trustee, in trust for registered holders of Merrill
Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-HE1." Funds in the Corridor Contract Account shall be held in trust for the
Issuing Entity for the uses and purposes set forth in this Agreement.

     Corridor Contract Notional Balance: Any of the Class A-1 Corridor Contract
Notional Balance, the Class A-2 Corridor Contract Notional Balance or the
Subordinate Certificate Corridor Contract Notional Balance.

     Corridor Contract Termination Date: Any of the Class A-1 Corridor Contract
Termination Date, the Class A-2 Corridor Contract Termination Date or the
Subordinate Certificate Corridor Contract Termination Date.

     Corridor Posted Collateral Account: The segregated Eligible Account created
and maintained by the Trustee pursuant to Section 4.04(k)(iv) in the name of the
Trustee for the benefit of the Issuing Entity and designated "LaSalle Bank
National Association, as trustee, in trust for registered holders of Merrill
Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-HE1." Funds in the Corridor Posted Collateral Account shall be held in
trust for the Issuing Entity for the uses and purposes set forth in the Corridor
Contracts.

     Current Interest: Any of the Class A-1 Current Interest, the Class A-2A
Current Interest, the Class A-2B Current Interest, the Class A-2C Current
Interest, the Class A-2D Current Interest, the Class R Current Interest, the
Class M-1 Current Interest, the Class M-2 Current Interest, the Class M-3
Current Interest, the Class M-4 Current Interest, the Class M-5 Current
Interest, the Class M-6 Current Interest, the Class B-1 Current Interest, the
Class B-2 Current Interest, the Class B-3 Current Interest and the Class C
Current Interest.

     Cut-off Date: February 1, 2007.

     Cut-off Date Principal Balance: As to any Mortgage Loan, the unpaid
principal balance thereof as of the close of business on the calendar day
immediately preceding the Cut-off Date after application of all payments of
principal due on or prior to the Cut-off Date, whether or not received, and all
Principal Prepayments received prior to the Cut-off Date, but without giving
effect to any installments of principal received in respect of Due Dates after
the Cut-off Date.

     Defaulted Swap Termination Payment: Any payment required to be made by the
Supplemental Interest Trust to the Swap Counterparty pursuant to the Swap
Agreement as a result of an event of default under the Swap Agreement with
respect to which the Swap Counterparty is the defaulting party or a termination
event under that agreement (other than illegality or a tax event) with respect
to which the Swap Counterparty is the sole Affected Party (as defined in the
Swap Agreement).

     Definitive Certificates: As defined in Section 5.06.

                                      -35-

<PAGE>

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a
Replacement Mortgage Loan.

     Delinquent: A Mortgage Loan is "delinquent" if any payment due thereon is
not made pursuant to the terms of such Mortgage Loan by the close of business on
the day such payment is scheduled to be due. A Mortgage Loan is "30 days
delinquent" if such payment has not been received by the close of business on
the corresponding day of the month immediately succeeding the month in which
such payment was due, or, if there is no such corresponding day (e.g., as when a
30-day month follows a 31-day month in which a payment was due on the 31st day
of such month), then on the last day of such immediately succeeding month. With
respect to any Mortgage Loan due on any day other than the first day of the
month, such Mortgage Loan shall be deemed to be due on the first day of the
immediately succeeding month. Similarly for "60 days delinquent," "90 days
delinquent" and so on.

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

     Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware corporation,
or any successor in interest.

     Depository: The initial Depository shall be The Depository Trust Company
("DTC"), the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended. The Depository shall initially be the
registered Holder of the Book-Entry Certificates. The Depository shall at all
times be a "clearing corporation" as defined in Section 8-102(3) of the Uniform
Commercial Code of the State of New York.

     Depository Agreement: With respect to Classes of Book-Entry Certificates,
the agreement between the Trustee and the initial Depository.

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

     Designated Transaction: A transaction in which the assets underlying the
Certificates consist of single-family residential, multi-family residential,
home equity, manufactured housing and/or commercial mortgage obligations that
are secured by single-family residential, multi-family residential, commercial
real property or leasehold interests therein.

     Determination Date: With respect to any Distribution Date, the 15th day of
the month of such Distribution Date or, if such 15th day is not a Business Day,
the immediately preceding Business Day.

     Disqualified Organization: (1) the United States, any state or political
subdivision thereof, any foreign government, any international organization, or
any agency or instrumentality of any of the foregoing, (2) any organization
(other than a cooperative described in Section 521 of the Code) which is exempt
from tax under Chapter 1 of Subtitle A of the Code unless such organization is
subject to the tax imposed by Section 511 of the Code and (3) any organization
described in Section 1381(a)(2)(C) of the Code.

     Distribution Date: The 25th day of each calendar month, or if such 25th day
is not a Business Day, the next succeeding Business Day, commencing in March
2007.

                                      -36-

<PAGE>

     Due Date: With respect to any Distribution Date and any Mortgage Loan, the
day during the related Due Period on which a Scheduled Payment is due.

     Due Period: With respect to any Distribution Date, the period beginning on
the second day of the calendar month preceding the calendar month in which such
Distribution Date occurs and ending on the first day of the month in which such
Distribution Date occurs.

     Eligible Account: An account that is (1) maintained with a depository
institution the long-term unsecured debt obligations of which are rated by each
Rating Agency in one of its two highest rating categories, or (2) maintained
with the corporate trust department of a bank which (A) has a rating of at least
Baa3 or P-3 by Moody's and (B) is either the Depositor or the corporate trust
department of a national banking association or banking corporation which has a
rating of at least A-1 by S&P or F1 by Fitch, or (iii) an account or accounts
the deposits in which are fully insured by the FDIC, or (iv) an account or
accounts, acceptable to each Rating Agency without reduction or withdrawal of
the rating of any Class of Certificates, as evidenced in writing, by a
depository institution in which such accounts are insured by the FDIC (to the
limit established by the FDIC), the uninsured deposits in which accounts are
otherwise secured such that, as evidenced by an Opinion of Counsel delivered to
and acceptable to the Trustee and each Rating Agency, the Certificateholders
have a claim with respect to the funds in such account and a perfected first
security interest against any collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution with which such account is
maintained, or (v) maintained at an eligible institution whose commercial paper,
short-term debt or other short-term deposits are rated at least A-1+ by S&P and
F-1+ by Fitch, or (vi) maintained with a federal or state chartered depository
institution the deposits in which are insured by the FDIC to the applicable
limits and the short-term unsecured debt obligations of which (or, in the case
of a depository institution that is a subsidiary of a holding company, the
short-term unsecured debt obligations of such holding company) are rated A-1 by
S&P, F-1 by Fitch or Prime-1 by Moody's at the time any deposits are held on
deposit therein, or (vii) a segregated trust account or accounts maintained with
the corporate trust department of a federal or state chartered depository
institution or trust company having capital and surplus of not less than
$50,000,000 or (viii) otherwise acceptable to each Rating Agency, as evidenced
by a letter from each Rating Agency to the Trustee.

     ERISA: The Employee Retirement Income Security Act of 1974, including any
successor or amendatory provisions.

     ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that would satisfy the requirements would
satisfy the requirements of Prohibited Transaction Exemption 90-29, Exemption
Application No. D-8012, 55 Fed. Reg. 21459 (1990), as amended, granted by the
United States Department of Labor (or any other applicable underwriter's
exemption granted to the Underwriter by the United States Department of Labor),
except, in relevant part, for the requirement that the certificates have
received a rating at the time of acquisition that is in one of the three (or
four, in the case of a "designated transaction") highest generic rating
categories by at least one of S&P, Moody's or Fitch.

     ERISA Restricted Certificates: The Class C Certificates and Class P
Certificates and any other Certificate, as long as the acquisition and holding
of such other Certificate is not covered by and exempt under any underwriter's
exemption granted by the United States Department of Labor.

     Escrow Account: As defined in Section 3.06 hereof.

     Event of Default: As defined in Section 7.01 hereof.

                                      -37-

<PAGE>

     Exception Report: As defined in Section 2.02 hereof.

     Excess Interest: On any Distribution Date, for each Class of the Class A,
Class M and Class B Certificates, the excess, if any, of (1) the amount of
interest such Class of Certificates is entitled to receive on such Distribution
Date over (2) the amount of interest such Class of Certificates would have been
entitled to receive on such Distribution Date at an interest rate equal to the
REMIC Pass-Through Rate.

     Excess Proceeds: With respect to any Liquidated Loan, any Liquidation
Proceeds that are in excess of the sum of (1) the unpaid principal balance of
such Liquidated Loan as of the date of such liquidation plus (2) interest at the
Mortgage Rate from the Due Date as to which interest was last paid or advanced
to Certificateholders (and not reimbursed to the Servicer) up to the Due Date in
the month in which such Liquidation Proceeds are required to be distributed on
the unpaid principal balance of such Liquidated Loan outstanding during each Due
Period as to which such interest was not paid or advanced.

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

     Extra Principal Distribution Amount: With respect to any Distribution Date,
(1) prior to the Stepdown Date, the excess of (A) the sum of (i) the Aggregate
Certificate Principal Balance immediately preceding such Distribution Date
reduced by the Principal Funds with respect to such Distribution Date and (ii)
$53,872,466 over (B) the Pool Stated Principal Balance of the Mortgage Loans as
of such Distribution Date and (2) on and after the Stepdown Date, (A) the sum of
(x) the Aggregate Certificate Principal Balance immediately preceding such
Distribution Date, reduced by the Principal Funds with respect to such
Distribution Date and (y) the greater of (a) 9.10% of the Pool Stated Principal
Balance of the Mortgage Loans and (b) the Minimum Required Overcollateralization
Amount less (B) the Pool Stated Principal Balance of the Mortgage Loans as of
such Distribution Date; provided, however, that if on any Distribution Date a
Stepdown Trigger Event is in effect, the Extra Principal Distribution Amount
will not be reduced to the applicable percentage of the then-current aggregate
Stated Principal Balance of the Mortgage Loans (and will remain fixed at the
applicable percentage of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Due Date immediately prior to the Stepdown Trigger Event) until
the next Distribution Date on which the Stepdown Trigger Event is not in effect.

     Fannie Mae: A federally chartered and privately owned corporation organized
and existing under the Federal National Mortgage Association Charter Act, or any
successor thereto.

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

     Fitch: Fitch, Inc., or any successor in interest.

     Fixed Rate Mortgage Loan: A Mortgage Loan identified in the Mortgage Loan
Schedule as having a Mortgage Rate that is fixed.

     Floating Rate Certificate Carryover: With respect to a Distribution Date,
in the event that the Pass-Through Rate for a Class of LIBOR Certificates is
based upon the related Available Funds Cap or the related Maximum Rate Cap, the
sum of (A) the excess of (1) the amount of interest that such Class would have
been entitled to receive on such Distribution Date had the Pass-Through Rate for
that Class not been calculated based on the related Available Funds Cap or the
related Maximum Rate Cap, up to but not exceeding the greater of (a) the related
Maximum Rate Cap or (b) the sum of (i) the related Available Funds Cap and (ii)
the product of (AA) a fraction, the numerator of which is 360 and the
denominator of which is the actual number of days in the related Accrual Period
and (BB) the sum of (x) the quotient obtained by dividing (I) an amount equal to
the proceeds, if any, payable under the related Corridor Contract with respect
to such Distribution Date by (II) the aggregate Certificate Principal

                                      -38-

<PAGE>

Balance of each of the Classes of Certificates to which such Corridor Contract
relates for such Distribution Date and (y) the quotient obtained by dividing (I)
an amount equal to the sum of (xx) any Net Swap Payments owed by the Swap
Counterparty for such Distribution Date and (yy) any Cap Payment owed by the Cap
Contract Counterparty for such Distribution Date by (II) the aggregate Stated
Principal Balance of the Mortgage Loans as of the immediately preceding
Distribution Date over (2) the amount of interest such Class was entitled to
receive on such Distribution Date based on the related Available Funds Cap;
together with (B) the unpaid portion of any such excess from prior Distribution
Dates (and interest accrued thereon at the then applicable Pass-Through Rate,
without giving effect to the related Available Funds Cap or the related Maximum
Rate Cap) and (C) any amount previously distributed with respect to Floating
Rate Certificate Carryover for such Class that is recovered as a voidable
preference by a trustee in bankruptcy.

     Freddie Mac: A corporate instrumentality of the United States created and
existing under Title III of the Emergency Home Finance Act of 1970, as amended,
or any successor thereto.

     Grantor Trusts: The grantor trusts described in Section 2.07 hereof.

     Gross Margin: The percentage set forth in the related Mortgage Note for
each of the Adjustable Rate Mortgage Loans which is to be added to the
applicable index for use in determining the Mortgage Rate on each Adjustment
Date, and which is set forth in the Mortgage Loan Schedule for each Adjustable
Rate Mortgage Loan.

     Group One: The portion of the Mortgage Pool identified as "Group One" in
the Prospectus Supplement.

     Group One Mortgage Loan: Any Mortgage Loan at any time identified in the
Mortgage Loan Schedule attached hereto as Exhibit B as a Group One Mortgage
Loan.

     Group One Net WAC: The Net WAC of Group One.

     Group One Principal Distribution Amount: As of any Distribution Date, the
amount equal to the lesser of (i) the aggregate Certificate Principal Balance of
the Class A-1 and Class R Certificates and (ii) the product of (x) the Group One
Principal Distribution Percentage and (y) the Class A Principal Distribution
Amount; provided, however, that with respect to any Distribution Date on which
the Class A-1 and Class R Certificates are outstanding and the Certificate
Principal Balance of the Class A-2 Certificates has been reduced to zero, the
Group One Principal Distribution Amount will equal the Class A Principal
Distribution Amount.

     Group One Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group One and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Group Two: The portion of the Mortgage Pool identified as "Group Two" in
the Prospectus Supplement.

     Group Two Mortgage Loan: Any Mortgage Loan at any time identified in the
Mortgage Loan Schedule attached hereto as Exhibit B as a Group Two Mortgage
Loan.

     Group Two Net WAC: The Net WAC of Group Two.

                                      -39-

<PAGE>

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

     Group Two Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group Two and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Indenture: An indenture relating to the issuance of the NIM Notes
guaranteed by the NIMs Insurer.

     Initial Adjustment Date: As to any Adjustable Rate Mortgage Loan, the first
Adjustment Date following the origination of such Mortgage Loan.

     Initial Certificate Principal Balance: With respect to any Certificate, the
Certificate Principal Balance of such Certificate or any predecessor Certificate
on the Closing Date as set forth in Section 5.01 hereof.

     Initial Mortgage Rate: As to each Mortgage Loan, the Mortgage Rate in
effect prior to the Initial Adjustment Date.

     Initial Optional Termination Date: The first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (or if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) is equal to
or less than 10% of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

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

     Insurance Proceeds: Proceeds paid in respect of a Mortgage Loan or the
related Mortgaged Property pursuant to any Insurance Policy or any other
insurance policy covering such Mortgage Loan or Mortgaged Property, to the
extent such proceeds are payable to the mortgagee under the Mortgage, the
Servicer or the Trustee under the deed of trust and are not applied to the
restoration of the related Mortgaged Property or released either to the
Mortgagor or to the holder of a senior lien on the related Mortgaged Property in
accordance with the procedures that the Servicer would follow in servicing
mortgage loans held for its own account, in each case other than any amount
included in such Insurance Proceeds in respect of Insured Expenses.

     Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to a Mortgage Loan or the related Mortgaged
Property.

                                      -40-

<PAGE>

     Interest Carry Forward Amount: Any of the Class A-1 Interest Carry Forward
Amount, the Class A-2A Interest Carry Forward Amount, the Class A-2B Interest
Carry Forward Amount, the Class A-2C Interest Carry Forward Amount, the Class
A-2D Interest Carry Forward Amount, the Class R Interest Carry Forward Amount,
the Class M-1 Interest Carry Forward Amount, the Class M-2 Interest Carry
Forward Amount, the Class M-3 Interest Carry Forward Amount, the Class M-4
Interest Carry Forward Amount, the Class M-5 Interest Carry Forward Amount, the
Class M-6 Interest Carry Forward Amount, the Class B-1 Interest Carry Forward
Amount, the Class B-2 Interest Carry Forward Amount, the Class B-3 Interest
Carry Forward Amount or the Class C Interest Carry Forward Amount, as the case
may be.

     Interest Determination Date: With respect to the LIBOR Certificates, (i)
for any Accrual Period other than the first Accrual Period, the second LIBOR
Business Day preceding the commencement of such Accrual Period and (ii) for the
first Accrual Period, March 6, 2007.

     Interest Funds: With respect to any Distribution Date, the sum, without
duplication, of (1) all scheduled interest due during the related Due Period and
received before the related Servicer Remittance Date or advanced on or before
the related Servicer Remittance Date less the Servicing Fee, (2) all Advances
relating to interest with respect to the Mortgage Loans, (3) all Compensating
Interest with respect to the Mortgage Loans, (4) Liquidation Proceeds with
respect to the Mortgage Loans (to the extent such Liquidation Proceeds relate to
interest) collected during the related Prepayment Period, (5) all proceeds of
any purchase pursuant to Section 2.02 or 2.03 during the related Prepayment
Period or pursuant to Section 9.01 not later than the related Determination Date
(to the extent that such proceeds relate to interest) less the Servicing Fee and
(6) all Prepayment Charges received with respect to the Mortgage Loans during
the related Prepayment Period, less (A) all Non-Recoverable Advances relating to
interest and (B) other amounts reimbursable (including without limitation
indemnity payments) to the Servicer and the Trustee pursuant to this Agreement
allocable to interest.

     Issuing Entity: Merrill Lynch Mortgage Investors Trust, Series 2007-HE1.

     Latest Possible Maturity Date: The latest maturity date for any Mortgage
Loan in the Trust Fund plus one month.

     LIBOR Business Day: Any day on which banks in the City of London, England,
Chicago, Illinois and New York City, U.S.A. are open and conducting transactions
in foreign currency and exchange.

     LIBOR Certificates: The Class A, Class M and Class B Certificates.

     Liquidated Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that either (a) has been realized upon or liquidated through
deed-in-lieu of foreclosure, foreclosure sale, trustee's sale or other
realization as provided by applicable law governing the real property subject to
the related Mortgage and any security agreements and as to which the Servicer
has certified (in accordance with Section 3.12) in the related Prepayment Period
that it has received all amounts it expects to receive in connection with such
liquidation or (b) as to which is not a first lien Mortgage Loan and is
delinquent 180 days or longer, the Servicer has certified in a certificate of an
officer of the Servicer delivered to the Depositor and the Trustee that it does
not believe that there is a reasonable likelihood that any further net proceeds
will be received or recovered with respect to such Mortgage Loan.

     Liquidation Proceeds: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of Mortgage Loans, whether
through trustee's sale, foreclosure sale, sale by the Servicer pursuant to this
Agreement or otherwise or amounts received in connection with any condemnation
or partial release of a Mortgaged Property and any other proceeds received in
connection

                                      -41-

<PAGE>

with an REO Property, less the sum of related unreimbursed Advances, Servicing
Fees, Servicing Advances and any other expenses related to such Mortgage Loan.

     Loan-to-Value Ratio: With respect to any Mortgage Loan, the fraction,
expressed as a percentage, the numerator of which is the original principal
balance of the related Mortgage Loan and the denominator of which is the lesser
of (X) the Appraised Value of the related Mortgaged Property and (Y) the sales
price of the related Mortgaged Property at the time of origination.

     Losses: Any losses, claims, damages, liabilities or expenses collectively.

     Lower Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Lower Tier REMIC Interests: Each of the Class LTA-1 Interest, the Class
LTA-2A Interest, the Class LTA-2B Interest, the Class LTA-2C Interest, the Class
LTA-2D Interest, the Class LTM-1 Interest, the Class LTM-2 Interest, the Class
LTM-3 Interest, the Class LTM-4 Interest, the Class LTM-5 Interest, the Class
LTM-6 Interest, the Class LTB-1 Interest, the Class LTB-2 Interest, the Class
LTB-3 Interest, the Class LTIX Interest, the Class LTIIX Interest, the Class
LTII1A Interest, the Class LTII1B Interest, the Class LTII2A Interest, the Class
LTII2B Interest, the Class LT-IO Interest and the Class LTR Interest.

     Lower Tier REMIC I Marker Interests: Each of the classes of Lower Tier
REMIC Regular Interests other than the Class LTIX Interest, the Class LTIIX
Interest, the Class LTII1A Interest, the Class LTII1B Interest, the Class LTII2A
Interest, the Class LTII2B Interest and the Class LT-IO Interest.

     Lower Tier REMIC II Marker Interests: Each of the Class LTII1A Interest,
the Class LTII1B Interest, the Class LTII2A Interest and the Class LTII2B
Interest.

     Lower Tier REMIC Regular Interests: Each of the Lower Tier REMIC Interests
other than the Class LTR Interest.

     Lower Tier REMIC Subordinated Balance Ratio: The ratio of (i) the principal
balance of the Class LTII1A Interest to (ii) the principal balance of the Class
LTII2A Interest that is equal to the ratio of (i) the excess of (A) the
aggregate Stated Principal Balance of Group One over (B) the current Certificate
Principal Balance of the Class A-1 and Class R Certificates to (ii) the excess
of (A) the aggregate Stated Principal Balance of Group Two over (B) the current
Certificate Principal Balance of the Class A-2 Certificates.

     Maximum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the maximum rate of interest set forth as such in the related Mortgage Note and
with respect to each Fixed Rate Mortgage Loan, the rate of interest set forth in
the related Mortgage Note.

     Maximum Rate Cap: Any of the Class A-1 Maximum Rate Cap, the Class A-2
Maximum Rate Cap or the Weighted Average Maximum Rate Cap.

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

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

     MERS System: The system of recording transfers of mortgage electronically
maintained by MERS.

                                      -42-

<PAGE>

     MIN: The loan number for any MERS Loan.

     Minimum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the minimum rate of interest set forth as such in the related Mortgage Note.

     Minimum Required Overcollateralization Amount: With respect to any
Distribution Date prior to the Distribution Date in March 2027, 0.50% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-Off Date
and, with respect to any Distribution Date on or after the Distribution Date in
March 2027, the greater of (1) 0.50% of the aggregate Stated Principal Balance
of the Mortgage Loans as of the Cut-Off Date and (2) the outstanding balance of
the Mortgage Loans that have maturities of 40 and 50 years in the mortgage pool
plus 0.10% of the aggregate Stated Principal Balance of the Mortgage Loans as of
the Cut-Off Date.

     MLML: Merrill Lynch Mortgage Lending, Inc., a Delaware corporation, or its
successors in interest.

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

     Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.05.

     Moody's: Moody's Investors Service, Inc. or any successor in interest.

     Mortgage: With respect to a Mortgage Loan, the mortgage, deed of trust or
other instrument with all riders thereto creating a first or second lien or a
first or second priority ownership interest in an estate in fee simple in real
property securing a Mortgage Note.

     Mortgage File: The mortgage documents listed in Section 2.01 hereof
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Trustee to be added to the Mortgage File pursuant to this Agreement.

     Mortgage Group: Either of Group One or Group Two.

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

          (i)  the loan number;

          (ii) the borrower name and address;

          (iii) the unpaid principal balance of the Mortgage Loans;

          (iv) the Initial Mortgage Rate;

          (v)  the original maturity date and the months remaining before
               maturity date;

          (vi) the original principal balance;

                                      -43-

<PAGE>

          (vii) the Cut-off Date Principal Balance;

          (viii) the first payment due date of the Mortgage Loan;

          (ix) the Loan-to-Value Ratio at origination with respect to a first
               lien Mortgage Loan, or the Combined Loan-to-Value Ratio with
               respect to a second lien Mortgage Loan;

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

          (xi) a code indicating the property type;

          (xii) with respect to each Adjustable Rate Mortgage Loan;

               (A)  the frequency of each Adjustment Date;

               (B)  the next Adjustment Date;

               (C)  the Maximum Mortgage Rate;

               (D)  the Minimum Mortgage Rate;

               (E)  the Mortgage Rate as of the Cut-off Date;

               (F)  the related Periodic Rate Cap;

               (G)  the Gross Margin; and

               (H)  the lifetime rate cap;

          (xiii) the location of the related Mortgaged Property;

          (xiv) a code indicating whether a Prepayment Charge is applicable;

               (A)  the period during which such Prepayment Charge is in effect;

               (B)  the amount of such Prepayment Charge;

               (C)  any limitations or other conditions on the enforceability of
                    such Prepayment Charge; and

               (D)  any other information pertaining to the Prepayment Charge
                    specified in the related Mortgage Note;

          (xv) the Credit Score and date obtained; and

          (xvi) the MIN.

     Mortgage Loans: Such of the mortgage loans transferred and assigned to the
Trustee pursuant to the provisions hereof as from time to time are held as a
part of the Trust Fund (including any REO

                                      -44-

<PAGE>

Property), the mortgage loans so held being identified in the Mortgage Loan
Schedule, notwithstanding foreclosure or other acquisition of title of the
related Mortgaged Property. Any mortgage loan that was intended by the parties
hereto to be transferred to the Trust Fund as indicated by such Mortgage Loan
Schedule which is in fact not so transferred for any reason shall continue to be
a Mortgage Loan hereunder until the Purchase Price with respect thereto has been
paid to the Issuing Entity.

     Mortgage Note: The original executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan and all
amendments, modifications and attachments thereto with all riders attached
thereto.

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

     Mortgage Rate: The annual rate of interest borne by a Mortgage Note from
time to time.

     Mortgaged Property: The underlying property securing a Mortgage Loan.

     Mortgagor: The obligor on a Mortgage Note.

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

     Net Rate: The per annum rate set forth in footnote 8 to the description of
the Lower Tier REMIC in the Preliminary Statement hereto (such rate being based
on the weighted average of the interest rates on the SWAP REMIC Regular
Interests as adjusted and as set forth in such footnote).

     Net Swap Payment: With respect to any Distribution Date, any net payment
(other than a Swap Termination Payment or Defaulted Swap Termination Payment)
made by the Supplemental Interest Trust to the Swap Counterparty on the related
Fixed Rate Payer Payment Date (as defined in the Swap Agreement) or made by the
Swap Counterparty to the Supplemental Interest Trust on the related Floating
Rate Payer Payment Date (as defined in the Swap Agreement). In each case, the
Net Swap Payment shall not be less than zero.

     Net WAC: With respect to any Distribution Date and for any Mortgage Group,
the weighted average Net Mortgage Rate for the Mortgage Loans in such Mortgage
Group calculated based on the respective Net Mortgage Rates and the Stated
Principal Balances of such Mortgage Loans as of the preceding Distribution Date
(or, in the case of the first Distribution Date, as of the Cut-off Date).

     NIM Notes: The net interest margin or excess cashflow securities to be
issued pursuant to the Indenture.

     NIMs Insurer: Any of the one or more insurers, if any, that is guaranteeing
certain payments under any NIM Notes; provided, that upon the payment in full of
the NIM Notes, all rights of the NIMs Insurer hereunder shall terminate.

     NIMs Insurer Default: As defined in Section 10.13.

     Non-Recoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Servicer that, in the good faith judgment of the
Servicer, will not or, in the case of a current delinquency, would not, be
ultimately recoverable by the Servicer from the related Mortgagor, related
Liquidation Proceeds or otherwise related to the Mortgage Loans.

                                      -45-

<PAGE>

     Non-Recoverable Servicing Advance: Any portion of a Servicing Advance
previously made or proposed to be made by the Servicer that, in the good faith
judgment of the Servicer, will not or, in the case of a current Servicing
Advance, would not, be ultimately recoverable by the Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise related to the Mortgage
Loans.

     Non-Supported Interest Shortfall: As defined in Section 4.02.

     Offered Certificates: The Class A, Class M and Class B Certificates.

     Officer's Certificate: A certificate (1) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a vice president (however
denominated), an Assistant Vice President, the Treasurer, the Secretary, or one
of the assistant treasurers or assistant secretaries of the Depositor, or
Trustee, the Servicer (or any other officer customarily performing functions
similar to those performed by any of the above designated officers and to whom,
with respect to a particular matter, such matter is referred because of such
officer's knowledge of and familiarity with a particular subject) or (2), if
provided for in this Agreement, signed by a Servicing Officer, as the case may
be, and delivered to the Depositor, the Servicer or the Trustee, as the case may
be, as required by this Agreement.

     One-Month LIBOR: With respect to any Accrual Period, the rate determined by
the Trustee on the related Interest Determination Date on the basis of (a) the
offered rates for one-month United States dollar deposits, as such rates appear
on Telerate page 3750, as of 11:00 a.m. (London time) on such Interest
Determination Date or (b) if such rate does not appear on Telerate Page 3750 as
of 11:00 a.m. (London time), the offered rates of the Reference Banks for
one-month United States dollar deposits, as such rates appear on the Reuters
Screen LIBO Page, as of 11:00 a.m. (London time) on such Interest Determination
Date. If One-Month LIBOR is determined pursuant to clause (b) above, on each
Interest Determination Date, One-Month LIBOR for the related Accrual Period will
be established by the Trustee as follows:

          (i)  If on such Interest Determination Date two or more Reference
               Banks provide such offered quotations, One-Month LIBOR for the
               related Accrual Period shall be the arithmetic mean of such
               offered quotations (rounded upwards if necessary to the nearest
               whole multiple of 0.03125%).

          (ii) If on such Interest Determination Date fewer than two Reference
               Banks provide such offered quotations, One-Month LIBOR for the
               related Accrual Period shall be the higher of (i) One-Month LIBOR
               as determined on the previous Interest Determination Date and
               (ii) the Reserve Interest Rate.

     Opinion of Counsel: A written opinion of counsel, who may be counsel for
the Depositor, the Trustee or the Servicer reasonably acceptable to each
addressee of such opinion; provided, however, that with respect to Section 6.04
or 10.01, or the interpretation or application of the REMIC Provisions, such
counsel must (1) in fact be independent of the Depositor, the Trustee or the
Servicer, (2) not have any direct financial interest in the Depositor, the
Trustee or the Servicer or in any Affiliate of any such party, and (3) not be
connected with the Depositor, Trustee or the Servicer as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions.

     Optional Termination: The termination of the Trust Fund hereunder pursuant
to clause (a) of Section 9.01 hereof.

     Optional Termination Amount: The repurchase price received by the Trustee
in connection with any repurchase of all of the Mortgage Loans pursuant to
Section 9.01.

                                      -46-

<PAGE>

     Optional Termination Price: On any date after the Initial Optional
Termination Date an amount equal to the sum of (i) the then aggregate
outstanding Stated Principal Balance of the Mortgage Loans (or, if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) plus
accrued interest thereon at the applicable Mortgage Rate through the Due Date in
the month in which the proceeds of the Auction will be distributed on the
Certificates; (ii) any unreimbursed indemnity amounts, fees or out-of-pocket
costs and expenses owed to the Trustee (including any amounts incurred by the
Trustee in connection with conducting such Auction) or the Servicer and all
unreimbursed Advances and Servicing Advances, in each case incurred by such
party in the performance of its obligations; (iii) any unreimbursed costs,
penalties and/or damages incurred by the Trust Fund in connection with any
violation relating to any of the Mortgage Loans of any predatory or abusive
lending law; and (iv) any unpaid Net Swap Payments and any Swap Termination
Payment owed to the Swap Counterparty; such Swap Termination Payment shall
include any payment to the Swap Counterparty resulting from the optional
termination of the Swap Agreement.

     OTS: The Office of Thrift Supervision.

     Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except: (1) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and (2) Certificates in exchange for
which or in lieu of which other Certificates have been executed by the Trustee
and delivered by the Trustee pursuant to this Agreement.

     Outstanding Mortgage Loan: As of any Distribution Date, a Mortgage Loan
with a Stated Principal Balance greater than zero that was not the subject of a
Principal Prepayment in full, and that did not become a Liquidated Loan, prior
to the end of the related Due Period.

     Overcollateralization Amount: As of any date of determination, the excess
of (1) the Stated Principal Balance of the Mortgage Loans over (2) the
Certificate Principal Balance of the Certificates (other than the Class P
Certificates and the Class C Certificates).

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

     Pass-Through Rate: With respect to any Class of Certificates, the
corresponding Pass-Through Rate for such Class of Certificates.

     Percentage Interest: With respect to:

          (i)  any Class, the percentage interest in the undivided beneficial
               ownership interest evidenced by such Class which shall be equal
               to the Certificate Principal Balance of such Class divided by the
               aggregate Certificate Principal Balance of all Classes; and

          (ii) any Certificate, the Percentage Interest evidenced thereby of the
               related Class shall equal the percentage obtained by dividing the
               Denomination of such Certificate by the aggregate of the
               Denominations of all Certificates of such Class; except that in
               the case of any Class P Certificates, the Percentage Interest
               with respect to such Certificate shown on the face of such
               Certificate.

                                      -47-

<PAGE>

     Periodic Rate Cap: As to each Adjustable Rate Mortgage Loan and the related
Mortgage Note, the provision therein that limits permissible increases and
decreases in the Mortgage Rate on any Adjustment Date.

     Permitted Activities: The primary activities of the Issuing Entity created
pursuant to this Agreement which shall be:

          (i)  holding Mortgage Loans transferred from the Depositor and other
               assets of the Issuing Entity, including the Corridor Contracts,
               Corridor Contract Account and the Supplemental Interest Trust
               subtrust, which in turn holds the Swap Agreement and the Cap
               Contract, and any credit enhancement and passive derivative
               financial instruments that pertain to beneficial interests issued
               or sold to parties other than the Depositor, its Affiliates, or
               its agents;

          (ii) issuing Certificates and other interests in the assets of the
               Issuing Entity;

          (iii) through the appropriate subtrust, as applicable, receiving
               collections on the Mortgage Loans, the Swap Agreement and the Cap
               Contract and making payments on such Certificates and interests
               in accordance with the terms of this Agreement; and

          (iv) engaging in other activities that are necessary or incidental to
               accomplish these limited purposes, which activities cannot be
               contrary to the status of the Issuing Entity as a qualified
               special purpose entity under existing accounting literature.

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

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

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

          (iii) commercial or finance company paper, other than commercial or
               finance company paper issued by the Depositor, the Trustee or any
               of their Affiliates, which is then receiving the highest
               commercial or finance company paper rating of each such Rating
               Agency;

          (iv) certificates of deposit, demand or time deposits, or bankers'
               acceptances (other than banker's acceptances issued by the
               Trustee or any of its Affiliates) issued by any depository
               institution or trust company incorporated under the laws of the
               United States or of any state thereof and subject to supervision
               and examination by federal and/or state banking authorities,
               provided that the commercial paper and/or long term unsecured
               debt obligations of such depository institution or trust company
               are then rated one of the two highest long-term and the highest
               short-term ratings of each such Rating Agency for such
               securities;

                                      -48-

<PAGE>

          (v)  demand or time deposits or certificates of deposit issued by any
               bank or trust company or savings institution to the extent that
               such deposits are fully insured by the FDIC;

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

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

          (viii) securities (other than stripped bonds, stripped coupons or
               instruments sold at a purchase price in excess of 115% of the
               face amount thereof) bearing interest or sold at a discount
               issued by any corporation, other than the Trustee or any of its
               Affiliates, incorporated under the laws of the United States or
               any state thereof which, at the time of such investment, have one
               of the two highest long term ratings of each Rating Agency;

          (ix) interests in any money market fund (including those managed or
               advised by the Trustee or its Affiliates), which at the date of
               acquisition of the interests in such fund and throughout the time
               such interests are held in such fund has the highest applicable
               long term rating by each Rating Agency rating such fund; and

          (x)  short term investment funds sponsored by any trust company or
               national banking association incorporated under the laws of the
               United States or any state thereof, other than the Trustee or any
               of its Affiliates, which on the date of acquisition has been
               rated by each such Rating Agency in their respective highest
               applicable rating category;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or above par or (iii) is purchased at a deep discount; provided,
further, that no such instrument shall be a Permitted Investment (A) if such
instrument evidences principal and interest payments derived from obligations
underlying such instrument and the interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations, or (B) if it may be redeemed at
a price below the purchase price (the foregoing clause (B) not to apply to
investments in units of money market funds pursuant to clause (ix) above); and
provided, further, (I) that no amount beneficially owned by any REMIC
(including, without limitation, any amounts collected by the Servicer but not
yet deposited in the Collection Account) may be invested in investments (other
than money market funds) treated as equity interests for Federal income tax
purposes, unless the Servicer shall receive an Opinion of Counsel, at the
expense of the party requesting that such investment be made, to the effect that
such investment will not adversely affect the status of the any REMIC provided
for herein as a REMIC under the Code or result in imposition of a tax on the
Issuing Entity or any REMIC provided for herein and (II) each such investment
must be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code. Permitted Investments that are subject to prepayment or call may not be
purchased at a price in excess of par.

                                      -49-

<PAGE>

     Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by Section 511 of the Code on unrelated business taxable income) on any excess
inclusions (as defined in Section 860E(c)(1) of the Code) with respect to the
Class R Certificate, (iv) rural electric and telephone cooperatives described in
Section 1381(a)(2)(C) of the Code, and (v) a Person that is not a citizen or
resident of the United States, a corporation or partnership (or other entity
treated as a corporation or partnership for United States federal income tax
purposes) created or organized in or under the laws of the United States or any
State thereof or the District of Columbia or an estate whose income from sources
without the United States is includable in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States, or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have authority to control all
substantial decisions of the trust, unless, in the case of this clause (v), such
Person has furnished the transferor and the Trustee with a duly completed
Internal Revenue Service Form W-8ECI or applicable successor form. The terms
"United States," "State" and "International Organization" shall have the
meanings set forth in Section 7701 of the Code. A corporation will not be
treated as an instrumentality of the United States or of any State thereof for
these purposes if all of its activities are subject to tax and, with the
exception of the Federal Home Loan Mortgage Corporation, a majority of its board
of directors is not selected by such government unit.

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

     Pool Stated Principal Balance: As to any Distribution Date, the aggregate
of the Stated Principal Balances, as of such Distribution Date, of the Mortgage
Loans that were Outstanding Mortgage Loans as of such date.

     Posted Collateral: As defined in the Swap Agreement, the Cap Contract or
the Corridor Contracts, as applicable.

     Preference Claim: The meaning set forth in Section 4.04(j) hereof.

     Preliminary Statement: The paragraphs in the preamble to this Agreement
that precede Article I.

     Prepayment Assumption: A rate of prepayment, as described in the Prospectus
Supplement in the definition of "Modeling Assumptions," relating to the Offered
Certificates.

     Prepayment Charges: Any prepayment premium or charge payable by a Mortgagor
in connection with any Principal Prepayment on a Mortgage Loan pursuant to the
terms of the related Mortgage Note or Mortgage, as applicable.

     Prepayment Interest Excess: With respect to any Servicer Remittance Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day of the calendar month in which such Servicer Remittance Date occurs and the
last day of the related Prepayment Period, an amount equal to interest (to the
extent received) at the applicable Net Mortgage Rate on the amount of such
Principal Prepayment for the number of days commencing on the first day of the
calendar month in which such Servicer Remittance Date occurs and ending on the
date on which such Principal Prepayment is so applied.

                                      -50-

<PAGE>

     Prepayment Interest Shortfall: With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment in full (other
than a Principal Prepayment in full resulting from the purchase of a Mortgage
Loan pursuant to Section 2.02, 2.03 or 9.01 hereof and other than a Principal
Prepayment in full on a Mortgage Loan received during the period from and
including the first day to and including the 14th day of the month of such
Distribution Date), the amount, if any, by which (i) one month's interest at the
applicable Net Mortgage Rate on the Stated Principal Balance of such Mortgage
Loan as of the preceding Distribution Date exceeds (ii) the amount of interest
paid or collected in connection with such Principal Prepayment.

     Prepayment Period: With respect to any Distribution Date, the period
beginning with the opening of business on the 15th day of the calendar month
preceding the month in which such Distribution Date occurs (or in the case of
the first Distribution Date, beginning with the opening of business on the
Cut-off Date) and ending on the close of business on the 14th day of the month
in which such Distribution Date occurs.

     Principal Distribution Amount: With respect to each Distribution Date, the
sum of (i) the Principal Funds for such Distribution Date and (ii) any Extra
Principal Distribution Amount for such Distribution Date.

     Principal Funds: With respect to the Mortgage Loans and any Distribution
Date, the sum, without duplication, of (1) the scheduled principal due during
the related Due Period and received before the related Servicer Remittance Date
or advanced on or before the related Servicer Remittance Date, (2) prepayments
in full collected in the related Prepayment Period, (3) the Stated Principal
Balance of each Mortgage Loan that was purchased by the Depositor or the
Servicer during the related Prepayment Period or, in the case of a purchase
pursuant to Section 9.01, on the Business Day prior to such Distribution Date,
(4) the amount, if any, by which the aggregate unpaid principal balance of any
Replacement Mortgage Loan is less than the aggregate unpaid principal of the
related Deleted Mortgage Loans delivered by the Sponsor in connection with a
substitution of a Mortgage Loan pursuant to Section 2.03(c), (5) all Liquidation
Proceeds collected during the related Prepayment Period (to the extent such
Liquidation Proceeds relate to principal and represent payment in full), (6) all
Subsequent Recoveries received during the related Due Period and (7) all other
collections and recoveries in respect of principal, including any partial
prepayments of principal, during the related Due Period, less (A) all
Non-Recoverable Advances relating to principal with respect to the Mortgage
Loans and (B) other amounts reimbursable (including without limitation indemnity
payments) to the Servicer and the Trustee pursuant to this Agreement allocable
to principal.

     Principal Prepayment: Any Mortgagor payment or other recovery of (or
proceeds with respect to) principal on a Mortgage Loan (including Mortgage Loans
purchased or repurchased under Sections 2.02, 2.03, 3.12 and 9.01 hereof) that
is received or recovered in advance of its scheduled Due Date and is not
accompanied by an amount as to interest representing scheduled interest due on
any date or dates in any month or months subsequent to the month of prepayment.
Partial Principal Prepayments shall be applied by the Servicer in accordance
with the terms of the related Mortgage Note.

     Prospectus Supplement: The Prospectus Supplement dated March 7, 2007,
relating to the public offering of the Offered Certificates.

     PUD: A Planned Unit Development.

     Purchase Price: With respect to any Mortgage Loan required to be
repurchased by the Sponsor or the Transferor pursuant to Section 2.02 or 2.03
hereof, an amount equal to the sum of (i) 100% of the unpaid principal balance
of the Mortgage Loan as of the date of such purchase together with any

                                      -51-

<PAGE>

unreimbursed Servicing Advances, (ii) accrued interest thereon at the applicable
Mortgage Rate from (a) the date through which interest was last paid by the
Mortgagor to (b) the Due Date in the month in which the Purchase Price is to be
distributed to Certificateholders and (iii) any unreimbursed costs, penalties
and/or damages incurred by the Issuing Entity in connection with any violation
relating to such Mortgage Loan of any predatory or abusive lending law. With
respect to any REO Property purchased by the Servicer pursuant to Section
3.12(c) hereof, an amount equal to the fair market value of such REO Property,
as determined in good faith by the Servicer.

     QIB: A "qualified institutional buyer" within the meaning of Rule 144A.

     Rating Agency: Either of S&P or Moody's. If any such organization or its
successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization, or other comparable Person,
designated by the Depositor, notice of which designation shall be given to the
Trustee. References herein to a given rating category of a Rating Agency shall
mean such rating category without giving effect to any modifiers.

     Rating Agency Condition: As defined in the Swap Agreement.

     Realized Loss: With respect to (1) a Liquidated Loan, the amount, if any,
by which the Stated Principal Balance and accrued interest thereon at the Net
Mortgage Rate exceeds the amount actually recovered by the Servicer with respect
thereto (net of reimbursement of Advances and Servicing Advances) at the time
such Mortgage Loan became a Liquidated Loan or (2) with respect to a Mortgage
Loan which is not a Liquidated Loan, any amount of principal that the Mortgagor
is no longer legally required to pay (except for the extinguishment of debt that
results from the exercise of remedies due to default by the Mortgagor).

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

     Reference Banks: Barclays Bank PLC, JPMorgan Chase Bank, N.A., Citibank,
N.A., Wells Fargo Bank, N.A. and NatWest, N.A.; provided that if any of the
foregoing banks are not suitable to serve as a Reference Bank, then any leading
banks selected by the Trustee which are engaged in transactions in Eurodollar
deposits in the international Eurocurrency market (i) with an established place
of business in London, England, (ii) whose quotations appear on the Reuters
Screen LIBO Page on the relevant Interest Determination Date and (iii) which
have been designated as such by the Servicer.

     Regular Certificate: Any one of the Class A, Class M and Class B
Certificates.

     Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 229.1100-229.1123, as such may be amended from time to time,
and subject to such clarification and interpretation as have been provided by
the Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed Reg. 1,506, 1.531 (Jan. 7, 2005)) or by the staff of
the Commission, or as may be provided by the Commission or its staff from time
to time.

     Regulation S: Regulation S promulgated under the Securities Act or any
successor provision thereto, in each case as the same may be amended from time
to time; and all references to any rule, section or subsection of, or definition
or term contained in, Regulation S means such rule, section, subsection,
definition or term, as the case may be, or any successor thereto, in each case
as the same may be amended from time to time.

                                      -52-

<PAGE>

     Regulation S Book-Entry Certificates: Certificates sold in offshore
transactions in reliance on Regulation S in the form of one or more permanent
global Certificates in definitive, fully registered form without interest
coupons, which shall be deposited on behalf of the subscribers for such
Certificates represented thereby with the Trustee, as custodian for DTC and
registered in the name of a nominee of DTC.

     Related Certificates: For each interest in the Upper Tier REMIC, the Class
of Certificates listed on the same row in the table entitled "Upper Tier REMIC"
in the Preliminary Statement.

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

     Relief Act Shortfall: With respect to any Distribution Date and any
Mortgage Loan, any reduction in the amount of interest or principal collectible
on such Mortgage Loan for the most recently ended calendar month as a result of
the application of the Relief Act.

     REMIC: A "real estate mortgage investment conduit" within the meaning of
section 860D of the Code. References herein to "the REMICs" or "a REMIC" shall
mean any of (or, as the context requires, all of) the SWAP REMIC, the Lower Tier
REMIC and the Upper Tier REMIC.

     REMIC Pass-Through Rate: In the case of a Class of the Class A, Class M and
Class B Certificates, the Upper Tier REMIC Net WAC Cap for the Corresponding
REMIC Regular Interest.

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

     REMIC Regular Interests: Each of the interests in the Upper Tier REMIC as
set forth in the Preliminary Statement other than the Residual Interest.

     REMIC SWAP Rate: For each Distribution Date (and the related Accrual
Period), a per annum rate equal to the Fixed Rate under the Swap Agreement for
such Distribution Date, as set forth in the Prospectus Supplement.

     Remittance Report: As defined in Section 4.04(j) hereof.

     REO Property: A Mortgaged Property acquired by the Servicer, on behalf of
the Trustee for the benefit of the Certificateholders, through foreclosure or
deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

     Replacement Mortgage Loan: One or more Mortgage Loans substituted by the
Depositor for a Deleted Mortgage Loan, which must, on the date of such
substitution, as confirmed in a Request for Release substantially in the form of
Exhibit I, (1) have a Stated Principal Balance (or in the case of a substitution
of more than one Mortgage Loan for a Deleted Mortgage Loan, an aggregate Stated
Principal Balance), after deduction of the principal portion of the Scheduled
Payment due in the month of substitution, not in excess of, and not less than
90% of the Stated Principal Balance of the Deleted Mortgage Loan; (2) with
respect to any Fixed Rate Mortgage Loan, have a Mortgage Rate not less than or
no more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage
Loan and, with respect to any Adjustable Rate Mortgage Loan: (A) have a Maximum
Mortgage Rate no more than 1% per annum higher or lower than the Maximum
Mortgage Rate of the Deleted Mortgage Loan; (B) have a

                                      -53-

<PAGE>

Minimum Mortgage Rate no more than 1% per annum higher or lower than the Minimum
Mortgage Rate of the Deleted Mortgage Loan; (C) have the same index and Periodic
Rate Cap as that of the Deleted Mortgage Loan and a Gross Margin not more than
1% per annum higher or lower than that of the Deleted Mortgage Loan; (D) not
permit conversion of the related Mortgage Rate to a fixed Mortgage Rate and (F)
currently be accruing interest at a rate not more than 1% per annum higher or
lower than that of the Deleted Mortgage Loan; (3) have a similar or higher FICO
score or credit grade than that of the Deleted Mortgage Loan; (4) have a
Loan-to-Value Ratio (or Combined Loan-to-Value Ratio, in the case of the
Mortgage Loans in a second lien position) no higher than that of the Deleted
Mortgage Loan; (5) have a remaining term to maturity no greater than (and not
more than one year less than) that of the Deleted Mortgage Loan; (6) provide for
a Prepayment Charge on terms substantially similar to those of the Prepayment
Charge, if any, of the Deleted Mortgage Loan; (7) have the same lien priority as
the Deleted Mortgage Loan; (8) constitute the same occupancy type as the Deleted
Mortgage Loan; and (9) comply with each representation and warranty set forth in
Section 2.03 hereof.

     Request for Release: The Request for Release of Documents submitted by the
Servicer to the Trustee, substantially in the form of Exhibit I hereto.

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

     Required Percentage: As of any Distribution Date following the Stepdown
Date, the quotient of (1) the excess of (A) the aggregate Stated Principal
Balance of the Mortgage Loans as of such Distribution Date, over (B) the
Certificate Principal Balance of the most senior Class of Certificates
outstanding as of such Distribution Date, prior to giving effect to
distributions to be made on such Distribution Date and (2) the aggregate Stated
Principal Balance of the Mortgage Loans as of such Distribution Date.

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

     Reserve Interest Rate: With respect to any Interest Determination Date, the
rate per annum that the Trustee determines to be (1) the arithmetic mean
(rounded upwards if necessary to the nearest whole multiple of 0.03125%) of the
one-month United States dollar lending rates which New York City banks selected
by the Trustee are quoting on the relevant Interest Determination Date to the
principal London offices of leading banks in the London interbank market or (2)
in the event that the Trustee can determine no such arithmetic mean, the lowest
one-month United States dollar lending rate which New York City banks selected
by the Trustee are quoting on such Interest Determination Date to leading
European banks.

     Residual Interest: An interest in the Upper Tier REMIC that is entitled to
all distributions of principal and interest on the Class R Certificate other
than distributions in respect of the Class SWR Interest and Class LTR Interest
and distributions on the Class R Certificate in respect of Excess Interest.

     Responsible Officer: When used with respect to the Trustee or the Servicer,
any officer of the Trustee or the Servicer with direct responsibility for the
administration of this Agreement and any other officer to whom, with respect to
a particular matter, such matter is referred because of such officer's knowledge
of and familiarity with the particular subject.

     Reuters Screen LIBO Page: The display designated as page "LIBO" on the
Reuters Monitor Money Rates Service (or such other page as may replace such LIBO
page on that service) for the purpose of displaying London interbank offered
rates of major banks.

                                      -54-

<PAGE>

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

     Sale Agreement: The Mortgage Loan Purchase Agreement, dated as of February
1, 2007, between the Depositor and the Sponsor.

     Sarbanes-Oxley Certification: Has the meaning set forth in Section 3.20.

     Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on
any Due Date allocable to principal and/or interest on such Mortgage Loan.

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

     Servicer: Wilshire Credit Corporation, a Nevada corporation, or its
successor in interest.

     Servicer Remittance Date: With respect to any Distribution Date, the later
of two Business Days after the 15th day of the month in which such Distribution
Date occurs and the 18th day (or if such day is not a Business Day, the
immediately preceding Business Day) of the month in which such Distribution Date
occurs.

     Servicing Advances: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in the performance by the Servicer of its servicing
obligations hereunder, including, but not limited to, the cost of (1) the
preservation, inspection, restoration and protection of a Mortgaged Property,
including without limitation advances in respect of prior liens, real estate
taxes and assessments, (2) any collection, enforcement or judicial proceedings,
including without limitation foreclosures, collections and liquidations, (3) the
conservation, management, sale and liquidation of any REO Property, (4)
executing and recording instruments of satisfaction, deeds of reconveyance,
substitutions of trustees on deeds of trust or Assignments of Mortgage to the
extent not otherwise recovered from the related Mortgagors or payable under this
Agreement, (5) correcting errors of prior servicers; costs and expenses charged
to the Servicer by the Trustee; tax tracking; title research; flood
certifications; and lender paid mortgage insurance, (6) obtaining or correcting
any legal documentation required to be included in the Mortgage Files and
reasonably necessary for the Servicer to perform its obligations under this
Agreement and (7) compliance with the obligations under Sections 3.01 and 3.10.

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

     Servicing Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to the product of (x) the Servicing Fee Rate and (y) the Stated
Principal Balance of such Mortgage Loan as of the preceding Distribution Date
or, in the event of any payment of interest that accompanies a Principal
Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate on
the Stated Principal Balance of such Mortgage Loan as of the preceding
Distribution Date for the period covered by such payment of interest.

     Servicing Fee Rate: 0.50% per annum for each Mortgage Loan.

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

                                      -55-

<PAGE>

     Servicing Rights Pledgee: One or more lenders, selected by the Servicer, to
which the Servicer may pledge and assign all of its right, title and interest
in, to and under this Agreement.

     Servicing Transfer Costs: In the event that the Servicer does not reimburse
the Trustee under this Agreement, all costs associated with the transfer of
servicing from the predecessor Servicer, including, without limitation, any
costs or expenses associated with the termination of the predecessor Servicer,
the appointment of a successor servicer, the complete transfer of all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the Trustee or any successor servicer to correct any errors
or insufficiencies in the servicing data or otherwise to enable the Trustee or
successor servicer to service the Mortgage Loans properly and effectively.

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

     Significance Estimate: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be an amount determined based
on the reasonable good-faith estimate by the Depositor or its Affiliate (and
reported to the Trustee) of the aggregate maximum probable exposure of the
outstanding Certificates to the Swap Agreement, the Cap Contract and the
Corridor Contracts, as applicable.

     Significance Percentage: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be a percentage equal to the
Significance Estimate divided by the aggregate outstanding Stated Principal
Balance of the Mortgage Loans, prior to the distribution of the Principal
Distribution Amount on such Distribution Date.

     Sponsor: Merrill Lynch Mortgage Lending, Inc., a Delaware corporation, or
its successor in interest.

     Startup Day: As defined in Section 2.07 hereof.

     Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property (1) as of the Cut-off Date, the Cut-off Date Principal Balance thereof,
and (2) as of any Distribution Date, such Cut-off Date Principal Balance, minus
the sum of (A) the principal portion of the Scheduled Payments (x) due with
respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date and (y) that were received by the Servicer as of the close of
business on the Determination Date related to such Distribution Date or with
respect to which Advances were made on the Servicer Remittance Date prior to
such Distribution Date and (B) all Principal Prepayments with respect to such
Mortgage Loan received on or prior to the last day of the related Prepayment
Period, and all Liquidation Proceeds to the extent applied by the Servicer as
recoveries of principal in accordance with Section 3.12 with respect to such
Mortgage Loan, that were received by the Servicer as of the close of business on
the last day of the related Due Period. Notwithstanding the foregoing, the
Stated Principal Balance of a Liquidated Loan shall be deemed to be zero.

     Stepdown Date: The earlier to occur of: (A) the first Distribution Date on
which the aggregate Certificate Principal Balance of the Class A-1 Certificates
and Class A-2 Certificates has been reduced to zero; and (B) the later to occur
of (1) the Distribution Date in March 2010 or (2) the first Distribution Date on
which (A) the Class A Certificate Principal Balance (reduced by the Principal
Funds with respect to such Distribution Date) is less than or equal to (B)
52.30% of the aggregate Stated Principal Balance of the Mortgage Loans.

                                      -56-

<PAGE>

     Stepdown Required Loss Percentage: For any Distribution Date, the
applicable percentage for such Distribution Date set forth in the following
table:

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN   STEPDOWN REQUIRED LOSS PERCENTAGE
------------------------------   ---------------------------------
<S>                              <C>
March 2009 -- February 2010      1.85% with respect to March 2009, plus an
                                 additional 1/12th of 2.30% for each month
                                 thereafter
March 2010 -- February 2011      4.15% with respect to March 2010, plus an
                                 additional 1/12th of 2.25% for each month
                                 thereafter
March 2011 -- February 2012      6.40% with respect to March 2011, plus an
                                 additional 1/12th of 1.85% for each month
                                 thereafter
March 2012 -- February 2013      8.25% with respect to March 2012, plus an
                                 additional 1/12th of 1.00% for each month
                                 thereafter
March 2013 and thereafter        9.25%
</TABLE>

     Stepdown Trigger Event: With respect to the Certificates on or after the
Stepdown Date, a Distribution Date on which (1) the quotient of (A) the
aggregate Stated Principal Balance of all Mortgage Loans that are 60 or more
days Delinquent measured on a rolling three month basis (including, for the
purposes of this calculation, Mortgage Loans in foreclosure and REO Properties
and Mortgage Loans with respect to which the applicable Mortgagor is in
bankruptcy) and (B) the Stated Principal Balance of the Mortgage Loans as of the
preceding Servicer Remittance Date, equals or exceeds the product of (i) 33.55%
and (ii) the Required Percentage or (2) the quotient (expressed as a percentage)
of (A) the aggregate Realized Losses incurred from the Cut-off Date through the
last day of the calendar month preceding such Distribution Date and (B) the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date exceeds
the Stepdown Required Loss Percentage.

     Subcontractor: Any outsourcer that performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to 5% or more of the
Mortgage Loans under the direction or authority of a Servicer (measured by
aggregate Stated Principal Balance of the Mortgage Loans, annually at the
commencement of the calendar year prior to the year in which an Assessment of
Compliance is required to be delivered, multiplied by a fraction, the numerator
of which is the number of months during which such Subcontractor performs such
discrete functions and the denominator of which is 12, or, in the case of the
year in which the Closing Date occurs, the number of months elapsed in such
calendar year).

     Subordinate Certificate Corridor Contract: The schedule and master
agreement (attached as Exhibit M-5 hereto), including the confirmation thereto
(attached as Exhibit M-3 hereto) and the related credit support annex (attached
as Exhibit M-4 hereto), between the Trustee on behalf of the Issuing Entity and
the Cap Contract Counterparty, with respect to the Subordinate Certificates.

     Subordinate Certificate Corridor Contract Notional Balance: With respect to
any Distribution Date, the Subordinate Certificate Corridor Contract Notional
Balance set forth for such Distribution Date in the Subordinate Certificate
LIBOR Cap Table (attached as Schedule A to Exhibit M-3 hereto).

     Subordinate Certificate Corridor Contract Termination Date: The
Distribution Date in August 2007.

                                      -57-

<PAGE>

     Subordinate Certificate Upper Collar: With respect to each Distribution
Date with respect to which payments are received on the Subordinate Certificate
Corridor Contract, a rate equal to the lesser of One-Month LIBOR and 8.760% per
annum.

     Subordinate Certificates: Each of the Class M and Class B Certificates.

     Subsequent Recovery: Any amount received on a Mortgage Loan (net of amounts
reimbursed to the Servicer related to Liquidated Mortgage Loans) subsequent to
such Mortgage Loan being determined to be a Liquidated Mortgage Loan.

     Sub-Servicer: Any Person that services Mortgage Loans on behalf of the
Servicer pursuant to a Subservicing Agreement and is responsible for the
performance of the material servicing functions required to be performed by the
Servicer under this Agreement that are identified in Item 1122(d) of Regulation
AB with respect to 10% or more of the Mortgage Loans under the direction or
authority of the Servicer (measured by aggregate Stated Principal Balance of the
Mortgage Loans, annually at the commencement of the calendar year prior to the
year in which an Assessment of Compliance is required to be delivered,
multiplied by a fraction, the numerator of which is the number of months during
which such Subservicer services the related Mortgage Loans and the denominator
of which is 12, or, in the case of the year in which the Closing Date occurs,
the number of months elapsed in such calendar year). Any subservicer shall meet
the qualifications set forth in Section 3.02.

     Subservicing Agreement: As defined in Section 3.02(a).

     Substitution Adjustment Amount: As defined in Section 2.03(c).

     Supplemental Interest Trust: The separate trust, established pursuant to
Section 4.04(l) of this Agreement and held by the Trustee for the benefit of the
holders of the Certificates as a segregated subtrust of the Trust Fund, (i) in
which the Cap Contract and the Swap Agreement will be held, certain
distributions to Certificateholders will be made, any Swap Termination Payments
or Net Swap Payments received from the Swap Counterparty will be deposited and
any Cap Payments received from the Cap Contract Counterparty will be deposited
as set forth in Section 4.04 hereof and (ii) out of which any Swap Termination
Payments or Net Swap Payments owed to the Swap Counterparty will be paid.

     Supplemental Interest Trust Trustee: LaSalle Bank National Association, a
national banking association, not in its individual capacity, but solely in its
capacity as trustee of the Supplemental Interest Trust for the benefit of the
Certificateholders under this Agreement, and any successor thereto, and any
corporation or national banking association resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee as may from time to time be serving as successor trustee
hereunder.

     Swap Account: The separate Eligible Account created and maintained by the
Supplemental Interest Trust Trustee pursuant to Section 4.04(l) in the name of
the Supplemental Interest Trust Trustee for the benefit of the Supplemental
Interest Trust and designated "LaSalle Bank National Association, as trustee, in
trust for registered holders of Merrill Lynch Mortgage Investors Trust, Mortgage
Loan Asset-Backed Certificates, Series 2007-HE1." Funds in the Swap Account
shall be held in trust for the Supplemental Interest Trust for the uses and
purposes set forth in this Agreement.

     Swap Agreement: The schedule and master agreement (attached as Exhibit Q-4
hereto), including the confirmation thereto (attached as Exhibit Q-2 hereto) and
the related credit support annex (attached as Exhibit Q-3 hereto), between the
Swap Counterparty and the trustee of the Supplemental

                                      -58-

<PAGE>

Interest Trust for the benefit of the Certificateholders or any other swap
agreement (including any related schedules) held by the Supplemental Interest
Trust pursuant to Section 4.04(l) hereof.

     Swap Counterparty: The Royal Bank of Scotland plc, or any successor
counterparty who meets the requirements set forth in the Swap Agreement.

     Swap LIBOR: With respect to any Distribution Date (and the related Accrual
Period) the product of (i) the Floating Rate Option (as defined in the Swap
Agreement for the related Swap Payment Date), (ii) two and (iii) the quotient of
(a) the actual number of days in the Accrual Period for the Lower Tier REMIC
Interests divided by (b) 30.

     Swap Optional Termination Payment: As described in Section 9.01(b).

     Swap Payment Date: For so long as the Swap Agreement is in effect or
amounts remain unpaid thereunder, the second Business Day (as defined in the
Swap Agreement) immediately preceding each Distribution Date.

     Swap Posted Collateral Account: The segregated Eligible Account created and
maintained by the Supplemental Interest Trust Trustee pursuant to Section
4.04(l) in the name of the Supplemental Interest Trust Trustee for the benefit
of the Supplemental Interest Trust and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Merrill Lynch
Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates, Series
2007-HE1." Funds in the Swap Posted Collateral Account shall be held in trust
for the Supplemental Interest Trust for the uses and purposes set forth in the
Swap Agreement

     SWAP REMIC: As described in the Preliminary Statement and Section 2.07.

     SWAP REMIC Interests: Each of the interests in the SWAP REMIC as set forth
in the Preliminary Statement.

     SWAP REMIC Regular Interests: Each of the SWAP REMIC Interests other than
the Class SWR Interest.

     Swap Termination Payment: Any payment payable by the Supplemental Interest
Trust or the Swap Counterparty upon termination of the Swap Agreement pursuant
to the Swap Agreement.

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

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

     Trust Fund: The corpus of the Issuing Entity created hereunder consisting
of (i) the Mortgage Loans and all interest and principal received on or with
respect thereto on and after the Cut-off Date to the extent not applied in
computing the Cut-off Date Principal Balance thereof, exclusive of interest not
required to be deposited in the Collection Account; (ii) the Collection Account
and the Certificate Account and all amounts deposited therein pursuant to the
applicable provisions of this Agreement; (iii) property that secured a Mortgage
Loan and has been acquired by foreclosure, deed in lieu of foreclosure or
otherwise; (iv) the mortgagee's rights under the Insurance Policies with respect
to the Mortgage Loans and/or the related Mortgaged Properties; (v) all proceeds
of the conversion, voluntary or involuntary, of any of the foregoing into cash
or other liquid property; (vi) the Corridor Contracts and the Corridor

                                      -59-

<PAGE>

Contract Account; and (vii) the Supplemental Interest Trust, which in turn holds
the Swap Agreement and the Cap Contract.

     Trustee: LaSalle Bank National Association, a national banking association,
not in its individual capacity, but solely in its capacity as trustee for the
benefit of the Certificateholders under this Agreement, and any successor
thereto, and any corporation or national banking association resulting from or
surviving any consolidation or merger to which it or its successors may be a
party and any successor trustee as may from time to time be serving as successor
trustee hereunder; it being understood that certain duties of the Trustee under
Sections 2.01, 2.02 and 3.13 with respect to the possession and administration
of the Mortgage Files generally may be carried out by a custodian engaged by the
Trustee.

     Uncertificated Class C Interest: An uncertificated REMIC Regular Interest
having the characteristics described in the Preliminary Statement.

     Unpaid Realized Loss Amount: The Class M-1 Unpaid Realized Loss Amount,
Class M-2 Unpaid Realized Loss Amount, Class M-3 Unpaid Realized Loss Amount,
Class M-4 Unpaid Realized Loss Amount, Class M-5 Unpaid Realized Loss Amount,
Class M-6 Unpaid Realized Loss Amount, Class B-1 Unpaid Realized Loss Amount,
Class B-2 Unpaid Realized Loss Amount, Class B-3 Unpaid Realized Loss Amount and
Class C Unpaid Realized Loss Amount, collectively.

     Upper Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Upper Tier REMIC Net WAC Cap: In the case of the Class UTA-1 Interest and
the Residual Interest, a per annum rate equal to the weighted average of the
interest rate of the Class LTII1B Interest for such Distribution Date. In the
case of the Class UTA-2A, Class UTA-2B, Class UTA-2C and Class UTA-2D Interests,
a per annum rate equal to the weighted average of the interest rate for the
Class LTII2B for such Distribution Date. In the case of the Class UTM-1, Class
UTM-2, Class UTM-3, Class UTM-4, Class UTM-5, Class UTM-6, Class UTB-1, Class
UTB-2 and Class UTB-3 Interests, a per annum rate equal to the weighted average
of the interest rates of Class LTII1B and Class LTII2B Interests for such
Distribution weighted, respectively, on the basis of the uncertificated
principal balances of the Class LTII1A and the Class LTII2A Interests.

     Voting Rights: The portion of the voting rights of all the Certificates
that is allocated to any of the Certificates for purposes of the voting
provisions hereunder. Voting Rights allocated to each Class of Certificates
shall be allocated as follows: (1) 98% to the Class A, Class M and Class B
Certificates, with the allocation among such Certificates to be in proportion to
the Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other Classes and (2) each Class of the Class C and
Class P will be allocated 1% of the Voting Rights. Voting Rights will be
allocated among the Certificates of each such Class in accordance with their
respective Percentage Interests.

     Weighted Average Available Funds Cap: With respect to a Distribution Date,
the per annum rate equal to the weighted average (weighted in proportion to the
results of subtracting from the aggregate Stated Principal Balance of each
Mortgage Group, the current Certificate Principal Balance of the Class A-1 and
Class R Certificates, in the case of Group One, or the Class A-2A, Class A-2B,
Class A-2C and Class A-2D Certificates, in the case of Group Two) of the Class
A-1 Available Funds Cap and the Class A-2 Available Funds Cap.

     Weighted Average Maximum Rate Cap: With respect to a Distribution Date, the
per annum rate equal to the weighted average (weighted in proportion to the
results of subtracting from the aggregate Stated Principal Balance of each
Mortgage Group, the current Certificate Principal Balance of the Class A-1 and
Class R Certificates, in the case of Group One, or the Class A-2A, Class A-2B,
Class A-2C and

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Class A-2D Certificates, in the case of Group Two) of the Class A-1 Maximum Rate
Cap and the Class A-2 Maximum Rate Cap.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

     SECTION 2.01. Conveyance of Mortgage Loans

     The Depositor, concurrently with the execution and delivery hereof, does
hereby sell, transfer, assign, set over and convey to the Trustee without
recourse all the right, title and interest of the Depositor in and to the assets
of the Trust Fund. Such assignment includes all interest and principal received
on or with respect to the Mortgage Loans on or after the Cut-off Date (other
than Scheduled Payments due on the Mortgage Loans on or before the Cut-off
Date).

     It is agreed and understood by the Depositor, the Servicer and the Trustee
that it is not intended that any Mortgage Loan be included in the Trust that is,
without limitation, either (i) a "High-Cost Home Loan" as defined in the New
Jersey Home Ownership Act effective November 27, 2003; (ii) a "High-Cost Home
Loan" as defined in the New Mexico Home Loan Protection Act effective January 1,
2004; (iii) a "High-Cost Home Mortgage Loan" as defined in the Massachusetts
Predatory Home Loan Practices Act effective November 7, 2004; (iv) a "High-Cost
Home Loan" as defined by the Indiana High Cost Home Loan Law effective January
1, 2005 or (v) a "High-Cost Home Loan" as defined by the Illinois High Risk Home
Loan Act effective January 1, 2004.

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

          (A) The original Mortgage Note endorsed in blank or, "Pay to the order
     of LaSalle Bank National Association, as trustee for the Merrill Lynch
     Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates, Series
     2007-HE1, without recourse" together with all riders thereto. The Mortgage
     Note shall include all intervening endorsements showing a complete chain of
     the title from the Transferor to [_____________________].

          (B) Except as provided below and for each Mortgage Loan that is not a
     MERS Loan, the original recorded Mortgage together with all riders thereto,
     with evidence of recording thereon, or, if the original Mortgage has not
     yet been returned from the recording office, a copy of the original
     Mortgage together with all riders thereto certified to be a true copy of
     the original of the Mortgage that has been delivered for recording in the
     appropriate recording office of the jurisdiction in which the Mortgaged
     Property is located and in the case of each MERS Loan, the original
     Mortgage together with all riders thereto, noting the presence of the MIN
     of the Loan and either language indicating that the Mortgage Loan is a MOM
     Loan or if the Mortgage Loan was not a MOM Loan at origination, the
     original Mortgage and the assignment thereof to MERS, with evidence of
     recording indicated thereon, or a copy of the Mortgage certified by the
     public recording office in which such Mortgage has been recorded.

          (C) In the case of each Mortgage Loan that is not a MERS Loan, the
     original Assignment of each Mortgage in blank or, to "LaSalle Bank National
     Association, as trustee for the Merrill Lynch Mortgage Investors Trust,
     Mortgage Loan Asset-Backed Certificates, Series 2007-HE1."

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<PAGE>

          (D) The original policy of title insurance (or a preliminary title
     report, commitment or binder if the original title insurance policy has not
     been received from the title insurance company).

          (E) Originals of any intervening assignments of the Mortgage, with
     evidence of recording thereon or, if the original intervening assignment
     has not yet been returned from the recording office, a copy of such
     assignment certified to be a true copy of the original of the assignment
     which has been sent for recording in the appropriate jurisdiction in which
     the Mortgaged Property is located.

          (F) Originals of all assumption and modification agreements, if any.

          (G) If in connection with any Mortgage Loan, the Depositor cannot
     deliver the Mortgage, Assignments of Mortgage or assumption, consolidation
     or modification, as the case may be, with evidence of recording thereon, if
     applicable, concurrently with the execution and delivery of this Agreement
     solely because of a delay caused by the public recording office where such
     Mortgage, Assignments of Mortgage or assumption, consolidation or
     modification, as the case may be, has been delivered for recordation, the
     Depositor shall deliver or cause to be delivered to the Trustee written
     notice stating that such Mortgage or assumption, consolidation or
     modification, as the case may be, has been delivered to the appropriate
     public recording office for recordation. Thereafter, the Depositor shall
     deliver or cause to be delivered to the Trustee such Mortgage, Assignments
     of Mortgage or assumption, consolidation or modification, as the case may
     be, with evidence of recording indicated thereon, if applicable, upon
     receipt thereof from the public recording office. To the extent any
     required endorsement is not contained on a Mortgage Note or an Assignment
     of Mortgage, the Depositor shall make or cause to be made such endorsement.

          (H) With respect to any Mortgage Loan, none of the Depositor, the
     Servicer or the Trustee shall be obligated to cause to be recorded the
     Assignment of Mortgage referred to in this Section 2.01. In the event an
     Assignment of Mortgage is not recorded, the Servicer and the Trustee shall
     have no liability for their failure to receive and act on notices related
     to such Assignment of Mortgage.

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

     It is the intention of this Agreement that the conveyance of the
Depositor's right, title and interest in and to the Trust Fund pursuant to this
Agreement shall constitute a purchase and sale and not a loan. If a conveyance
of Mortgage Loans from the Sponsor to the Depositor is characterized as a pledge
and not a sale, then the Depositor shall be deemed to have transferred to the
Trustee all of the Depositor's right, title

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<PAGE>

and interest in, to and under the obligations of the Sponsor deemed to be
secured by said pledge; and it is the intention of this Agreement that the
Depositor shall also be deemed to have granted to the Trustee a first priority
security interest in all of the Depositor's right, title, and interest in, to
and under the obligations of the Sponsor to the Depositor deemed to be secured
by said pledge and that the Trustee shall be deemed to be an independent
custodian for purposes of perfection of the security interest granted to the
Depositor. If the conveyance of the Mortgage Loans from the Depositor to the
Trustee is characterized as a pledge, it is the intention of this Agreement that
this Agreement shall constitute a security agreement under applicable law, and
that the Depositor shall be deemed to have granted to the Trustee a first
priority security interest in all of the Depositor's right, title and interest
in, to and under the Mortgage Loans, all payments of principal of or interest on
such Mortgage Loans, all other rights relating to and payments made in respect
of the Trust Fund, and all proceeds of any thereof. If the trust created by this
Agreement terminates prior to the satisfaction of the claims of any Person in
any Certificates, the security interest created hereby shall continue in full
force and effect and the Trustee shall be deemed to be the collateral agent for
the benefit of such Person.

     In addition to the conveyance made in the first paragraph of this Section
2.01, the Depositor does hereby convey, assign and set over to the Trustee for
the benefit of the Certificateholders its rights and interests under the Sale
Agreement, including the Depositor's right, title and interest in the
representations and warranties contained in the Sale Agreement, and the benefit
of the repurchase obligations and the obligation of the Sponsor contained in the
Sale Agreement to take, at the request of the Depositor or the Trustee, all
action on its part which is reasonably necessary to ensure the enforceability of
a Mortgage Loan. The Trustee hereby accepts such assignment, and shall be
entitled to exercise all rights of the Depositor under the Sale Agreement as if,
for such purpose, it were the Depositor. The foregoing sale, transfer,
assignment, set-over, deposit and conveyance does not and is not intended to
result in creation or assumption by the Trustee of any obligation of the
Depositor, the Sponsor, or any other Person in connection with the Mortgage
Loans or any other agreement or instrument relating thereto.

     SECTION 2.02. Acceptance by the Trustee of the Mortgage Loans

     Except as set forth in the exception report delivered contemporaneously
herewith (the "Exception Report"), the Trustee acknowledges receipt of the
Mortgage Note for each Mortgage Loan and delivery of a Mortgage File (but does
not acknowledge receipt of all documents required to be included in such
Mortgage File) with respect to each Mortgage Loan and declares that it holds and
will hold such documents and any other documents constituting a part of the
Mortgage Files delivered to it in trust for the use and benefit of all present
and future Certificateholders. The Depositor will cause the Sponsor to
repurchase any Mortgage Loan to which a material exception was taken in the
Exception Report unless such exception is cured to the satisfaction of the
Depositor and the Trustee within 45 Business Days of the Closing Date.

     The Trustee acknowledges receipt of the three Corridor Contracts (forms of
which are attached hereto as Exhibits M-1, M-2 and M-3) and is hereby authorized
and instructed to enter into such contracts not in its individual capacity but
solely as Trustee for the Issuing Entity, and is further directed to execute and
deliver the Transfer Agreements, the Bring Down Letters and the Sale Agreement.

     The Trustee acknowledges receipt of the Swap Agreement and the Cap Contract
that will be held in the Supplemental Interest Trust and is hereby instructed to
enter into the Swap Agreement and the Cap Contract, not in its individual
capacity, but solely as the Supplemental Interest Trust Trustee.

     The Trustee agrees, for the benefit of Certificateholders, and the NIMs
insurer, to review each Mortgage File delivered to it within sixty (60) days
after the Closing Date. The Trustee will ascertain and

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<PAGE>

certify, within seventy (70) days of the Closing Date, to the NIMs Insurer, the
Depositor and the Servicer that all documents required by Section 2.01 (A)-(B),
(C) (if applicable), and (D)-(E), and the documents if actually received by it,
under Section 2.01(F), have been executed and received, and that such documents
relate to the Mortgage Loans identified in Exhibit B that have been conveyed to
it. It is herein acknowledged that, in conducting such review, the Trustee shall
not be under any duty or obligation to inspect, review or examine any such
documents, instruments, certificates or other papers to determine that they are
genuine, enforceable or appropriate for the represented purpose, that they have
actually been recorded or that they are other than what they purport to be on
their face. If the Trustee finds any document or documents constituting a part
of a Mortgage File to be missing or defective (that is, mutilated, damaged,
defaced or unexecuted) in any material respect, the Trustee shall promptly (and
in any event within no more than five Business Days) after such finding so
notify the NIMs Insurer, the Servicer, the Sponsor and the Depositor. In
addition, the Trustee shall also notify the NIMs Insurer, the Servicer, the
Sponsor and the Depositor if the original Mortgage with evidence of recording
thereon with respect to a Mortgage Loan is not received within seventy (70) days
of the Closing Date; if it has not been received because of a delay caused by
the public recording office where such Mortgage has been delivered for
recordation, the Depositor shall deliver or cause to be delivered to the Trustee
written notice stating that such Mortgage has been delivered to the appropriate
public recording office for recordation and thereafter the Depositor shall
deliver or cause to be delivered such Mortgage with evidence of recording
thereon upon receipt thereof from the public recording office. The Trustee shall
request that the Sponsor correct or cure such omission, defect or other
irregularity, or substitute a Mortgage Loan pursuant to the provisions of
Section 2.03(c), within ninety (90) days from the date the Sponsor was notified
of such omission or defect and, if the Sponsor does not correct or cure such
omission or defect within such period, that the Sponsor purchase such Mortgage
Loan from the Issuing Entity within ninety (90) days from the date the Trustee
notified the Sponsor of such omission, defect or other irregularity at the
Purchase Price of such Mortgage Loan. The Purchase Price for any Mortgage Loan
purchased pursuant to this Section 2.02 shall be paid to the Servicer and
deposited by the Servicer in the Certificate Account or Collection Account, as
appropriate, promptly upon receipt, and upon receipt by the Trustee of written
notification of such deposit signed by a Servicing Officer or receipt of such
deposit by the Trustee, the Trustee, upon receipt of a Request for Release and
certification of the Servicer of such required deposit, shall promptly release
to the Sponsor the related Mortgage File and the Trustee shall execute and
deliver such instruments of transfer or assignment, without recourse, as shall
be requested by the Sponsor and necessary to vest in the Sponsor or its
designee, as the case may be, any Mortgage Loan released pursuant hereto, and
the Trustee shall have no further responsibility with regard to such Mortgage
Loan. It is understood and agreed that the obligation of the Sponsor to
purchase, cure or substitute any Mortgage Loan as to which a material defect in
or omission of a constituent document exists shall constitute the sole remedy
respecting such defect or omission available to the Trustee on behalf of
Certificateholders and the NIMs Insurer. The preceding sentence shall not,
however, limit any remedies available to the Certificateholders, the NIMs
Insurer, the Depositor or the Trustee pursuant to the Sale Agreement.

     The Trustee shall be under no duty or obligation to inspect, review and
examine such documents, instruments, certificates or other papers to determine
that they are genuine, enforceable, recordable, duly authorized, sufficient,
legal, valid or appropriate to the represented purpose, or that they have
actually been recorded, or that they are other than what they purport to be on
their face. The Servicer and the Trustee shall keep confidential the name of
each Mortgagor except as required for the performance of this Agreement and the
Servicer and the Trustee shall not solicit any such Mortgagor for the purpose of
refinancing the related Mortgage Loan; notwithstanding anything herein to the
contrary, the foregoing shall not be construed to prohibit (i) disclosure of any
and all information that is or becomes publicly known, or information obtained
by the Trustee or the Servicer from sources other than the other parties hereto,
(ii) disclosure of any and all information (A) if required to do so by any
applicable law, rule or

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<PAGE>

regulation, (B) to any government agency or regulatory body having or claiming
authority to regulate or oversee any aspects of the business of the Trustee, the
Servicer or that of any Affiliate, (C) pursuant to any subpoena, civil
investigation demand or similar demand or request of any court, regulatory
authority, arbitrator or arbitration to which the Trustee, the Servicer or any
Affiliate or an officer, director, employer or shareholder thereof is a party or
(D) to any Affiliate, independent or internal auditor, agent, employee or
attorney of the Trustee, or the Servicer having a need to know the same,
provided that the Trustee or the Servicer, as applicable, advises such recipient
of the confidential nature of the information being disclosed, or (iii) any
other disclosure authorized by the Depositor.

     Within seventy (70) days of the Closing Date, the Trustee shall deliver to
the NIMs Insurer, the Depositor and the Servicer the Trustee's Certification,
substantially in the form of Exhibit D attached hereto, evidencing the
completeness of the Mortgage Files, with any exceptions noted thereto.

     SECTION 2.03. Representations, Warranties and Covenants of the Depositor

          (a) The Depositor hereby represents and warrants to the NIMs Insurer,
the Servicer and the Trustee as follows, as of the date hereof:

          (i) The Depositor is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Delaware and
     has full power and authority (corporate and other) necessary to own or hold
     its properties and to conduct its business as now conducted by it and to
     enter into and perform its obligations under this Agreement and the Sale
     Agreement.

          (ii) The Depositor has the full corporate power and authority to
     execute, deliver and perform, and to enter into and consummate the
     transactions contemplated by, this Agreement and the Sale Agreement and has
     duly authorized, by all necessary corporate action on its part, the
     execution, delivery and performance of this Agreement and the Sale
     Agreement; and this Agreement and the Sale Agreement, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     constitutes a legal, valid and binding obligation of the Depositor,
     enforceable against the Depositor in accordance with its terms, subject, as
     to enforceability, to (i) bankruptcy, insolvency, reorganization,
     moratorium and other similar laws affecting creditors' rights generally and
     (ii) general principles of equity, regardless of whether enforcement is
     sought in a proceeding in equity or at law.

          (iii) The execution and delivery of this Agreement and the Sale
     Agreement by the Depositor, the consummation of the transactions
     contemplated by this Agreement and the Sale Agreement, and the fulfillment
     of or compliance with the terms hereof are in the ordinary course of
     business of the Depositor and will not (A) result in a material breach of
     any term or provision of the charter or by-laws of the Depositor or (B)
     materially conflict with, result in a violation or acceleration of, or
     result in a material default under, the terms of any other material
     agreement or instrument to which the Depositor is a party or by which it
     may be bound or (C) constitute a material violation of any statute, order
     or regulation applicable to the Depositor of any court, regulatory body,
     administrative agency or governmental body having jurisdiction over the
     Depositor; and the Depositor is not in breach or violation of any material
     indenture or other material agreement or instrument, or in violation of any
     statute, order or regulation of any court, regulatory body, administrative
     agency or governmental body having jurisdiction over it which breach or
     violation may materially impair the Depositor's ability to perform or meet
     any of its obligations under this Agreement.

          (iv) No litigation is pending, or, to the best of the Depositor's
     knowledge, threatened, against the Depositor that would materially and
     adversely affect the execution, delivery or

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<PAGE>

     enforceability of this Agreement and the Sale Agreement or the ability of
     the Depositor to perform its obligations under this Agreement and the Sale
     Agreement in accordance with the terms hereof.

          (v) No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by the Depositor of, or compliance by the Depositor with, this
     Agreement and the Sale Agreement or the consummation of the transactions
     contemplated hereby, or if any such consent, approval, authorization or
     order is required, the Depositor has obtained the same. The Depositor
     hereby represents and warrants to the Trustee with respect to each Mortgage
     Loan as of the Closing Date, and following the transfer of the Mortgage
     Loans to it by the Sponsor, the Depositor had good title to the Mortgage
     Loans and the Mortgage Notes were subject to no offsets, claims, liens,
     mortgage, pledge, charge, security interest, defenses or counterclaims.

          (b) The representations and warranties of the Sponsor with respect to
the Mortgage Loans contained in the Sale Agreement were made as of the Closing
Date. To the extent that any fact, condition or event with respect to a Mortgage
Loan constitutes a breach of a representation or warranty of the Sponsor under
the Sale Agreement, the obligations of the Sponsor under the Sale Agreement
shall be enforced by the Depositor against the Sponsor as set forth in the Sale
Agreement. The Trustee acknowledges that the Depositor shall have no obligation
or liability with respect to any breach of any representation or warranty with
respect to the Mortgage Loans (except as set forth in Section 2.03(a)(v)) under
any circumstances.

          (c) Upon discovery by any of the NIMs Insurer, the Depositor, the
Servicer or the Trustee of a breach of any of such representations and
warranties that adversely and materially affects the value of the related
Mortgage Loan, Prepayment Charges or the interests of the Certificateholders,
the party discovering such breach shall give prompt written notice to the other
parties. Within ninety (90) days of the discovery of such breach of any
representation or warranty, the Sponsor shall either (a) cure such breach in all
material respects, (b) repurchase such Mortgage Loan or any property acquired in
respect thereof from the Trustee at the Purchase Price or (c) within the two
year period following the Closing Date, substitute a Replacement Mortgage Loan
for the affected Mortgage Loan. In the event of discovery of a breach of any
representation and warranty of the Sponsor, the Trustee's rights shall be
enforced under the Sale Agreement for the benefit of Certificateholders and the
NIMs Insurer. If a breach of the representations and warranties set forth in the
Sale Agreement exists solely due to the unenforceability of a Prepayment Charge,
the Trustee (if it has had actual notice thereof) or the other party having
notice thereof shall notify the Servicer thereof and not seek to enforce the
repurchase remedy provided for herein unless such Mortgage Loan is not current.
In the event that such breach relates solely to the unenforceability of a
Prepayment Charge, amounts received in respect of such indemnity up to the
amount of such Prepayment Charge shall be distributed pursuant to Section
4.04(b)(i). As provided in the Sale Agreement, if the Sponsor substitutes for a
Mortgage Loan for which there is a breach of any representations and warranties
which adversely and materially affects the value of such Mortgage Loan and such
substitute mortgage loan is not a Replacement Mortgage Loan, under the terms of
the Sale Agreement, the Sponsor will, in exchange for such substitute Mortgage
Loan, (i) provide the applicable Purchase Price for the affected Mortgage Loan
or (ii) within two years of the Closing Date, substitute such affected Mortgage
Loan with a Replacement Mortgage Loan. Any such substitution shall not be
effected prior to the additional delivery to the Trustee of a Request for
Release substantially in the form of Exhibit I and shall not be effected unless
it is within two years of the Startup Day. The Sponsor indemnifies and holds the
Issuing Entity, the Trustee, the Depositor, the Servicer, the NIMs Insurer and
each Certificateholder harmless against any and all taxes, claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the Issuing

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Entity, the Trustee, the Depositor, the Servicer, the NIMs Insurer and any
Certificateholder may sustain in connection with any actions of the Sponsor
relating to a repurchase of a Mortgage Loan other than in compliance with the
terms of this Section 2.03 and the Sale Agreement, to the extent that any such
action causes (i) any federal or state tax to be imposed on the Issuing Entity
or any REMIC provided for herein, including without limitation, any federal tax
imposed on "prohibited transactions" under Section 860F(a)(1) of the Code or on
"contributions after the startup day" under Section 860G(d)(1) of the Code, or
(ii) any REMIC created hereunder to fail to qualify as a REMIC at any time that
any Certificate is outstanding. In furtherance of the foregoing, if the Sponsor
is not a member of MERS and repurchases a Mortgage Loan which is registered on
the MERS System, the Sponsor, at its own expense and without any right of
reimbursement, shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form to transfer the Mortgage from MERS to the Sponsor
and shall cause such Mortgage to be removed from registration on the MERS System
in accordance with MERS' rules and regulations.

     With respect to any Mortgage Loan repurchased by the Sponsor pursuant to
the Sale Agreement, the principal portion of the funds received by the Servicer
in respect of such repurchase of a Mortgage Loan will be considered a Principal
Prepayment and shall be deposited in the Collection Account pursuant to Section
3.05. Upon receipt by the Trustee of notice from the Servicer of receipt by the
Servicer of the full amount of the Purchase Price for a Deleted Mortgage Loan,
and upon receipt by the Trustee of the Mortgage File for a Replacement Mortgage
Loan substituted for a Deleted Mortgage Loan and a Request for Release, the
Trustee shall release and reassign to the Sponsor the related Mortgage File for
the Deleted Mortgage Loan and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, representation or
warranty, as shall be necessary to vest in such party or its designee or
assignee title to any Deleted Mortgage Loan released pursuant hereto, free and
clear of all security interests, liens and other encumbrances created by this
Agreement, which instruments shall be prepared by the Depositor or the Sponsor
and the Trustee shall have no further responsibility with respect to the
Mortgage File relating to such Deleted Mortgage Loan.

     With respect to each Replacement Mortgage Loan to be delivered to the
Trustee pursuant to the terms of this Article II in exchange for a Deleted
Mortgage Loan: (i) the Sponsor must deliver to the Trustee the Mortgage File for
the Replacement Mortgage Loan containing the documents set forth in Section 2.01
along with a written certification certifying as to the Mortgage Loan satisfying
all requirements under the definition of Replacement Mortgage Loan and the
delivery of such Mortgage File and containing the granting language set forth in
Section 2.01; and (ii) the Depositor will be deemed to have made, with respect
to such Replacement Mortgage Loan, each of the representations and warranties
made by it with respect to the related Deleted Mortgage Loan. The Trustee shall
review the Mortgage File with respect to each Replacement Mortgage Loan and
certify to the Depositor that all documents required by Section 2.01(A)-(B), (C)
(if applicable), and (D)-(E) have been executed and received.

     For any month in which the Sponsor substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Sponsor will
determine the amount (if any) by which the aggregate principal balance of all
such Replacement Mortgage Loans as of the date of substitution and the aggregate
Prepayment Charges with respect to such Replacement Mortgage Loans is less than
the aggregate Stated Principal Balance (after application of the principal
portion of the Scheduled Payment due in the month of substitution) and aggregate
Prepayment Charges of all such Deleted Mortgage Loans. An amount equal to the
aggregate of the deficiencies described in the preceding sentence (such amount,
the "Substitution Adjustment Amount") plus an amount equal to any unreimbursed
costs, penalties and/or damages incurred by the Issuing Entity in connection
with any violation relating to such Deleted Mortgage Loan of any predatory or
abusive lending law shall be remitted by the Sponsor to the Trustee for deposit
into the Certificate Account by the Sponsor on the Determination Date for the
Distribution

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<PAGE>

Date relating to the Prepayment Period during which the related Mortgage Loan
became required to be purchased or replaced hereunder.

     Notwithstanding any other provision of this Agreement, the right to
substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Replacement Mortgage Loan for a
Deleted Mortgage Loan shall be made unless the Trustee and the NIMs Insurer
shall each have received an Opinion of Counsel (at the expense of the party
seeking to make the substitution) that, under current law, such substitution
will not (A) affect adversely the status of any REMIC established hereunder as a
REMIC, or of the related "regular interests" as "regular interests" in any such
REMIC, or (B) cause any such REMIC to engage in a "prohibited transaction" or
prohibited contribution pursuant to the REMIC Provisions.

     The Depositor shall amend the Mortgage Loan Schedule to reflect the removal
of such Deleted Mortgage Loan from the terms of this Agreement and the
substitution of the Replacement Mortgage Loan or Replacement Mortgage Loans and
shall deliver a copy of such amended Mortgage Loan Schedule to the NIMs Insurer,
the Servicer and the Trustee. Upon such substitution by the Sponsor, such
Replacement Mortgage Loan or Replacement Mortgage Loans shall constitute part of
the Mortgage Pool and shall be subject in all respects to the terms of this
Agreement and the Sale Agreement, including all applicable representations and
warranties thereof included in the Sale Agreement as of the date of
substitution.

          (d) It is understood and agreed that the representations, warranties
and indemnification (i) set forth in this Section 2.03 and (ii) of the Sponsor
and the Depositor set forth in the Sale Agreement and assigned to the Trustee by
the Depositor hereunder shall each survive delivery of the Mortgage Files and
the Assignment of Mortgage of each Mortgage Loan to the Trustee and shall
continue throughout the term of this Agreement.

          (e) The Depositor shall deliver a copy of the Mortgage Loan Schedule
to the Servicer on the Closing Date.

          (f) The Depositor shall notify the Servicer and the Trustee when any
NIM Notes are issued and when such NIM Notes are no longer outstanding.

     SECTION 2.04. Representations and Warranties of the Servicer

     The Servicer hereby represents and warrants to the Depositor and the
Trustee as follows, as of the date hereof:

          (i) The Servicer is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Nevada and is
     duly authorized and qualified to transact any and all business contemplated
     by this Agreement to be conducted by the Servicer in any state in which a
     Mortgaged Property is located or is otherwise not required under applicable
     law to effect such qualification and, in any event, is in compliance with
     the doing business laws of any such state, to the extent necessary to
     ensure its ability to enforce each Mortgage Loan, to service the Mortgage
     Loans in accordance with the terms of this Agreement and to perform any of
     its other obligations under this Agreement in accordance with the terms
     hereof.

          (ii) The Servicer has the corporate power and authority to service
     each Mortgage Loan, and to execute, deliver and perform, and to enter into
     and consummate the transactions contemplated by this Agreement and has duly
     authorized by all necessary corporate action on the part of the Servicer
     the execution, delivery and performance of this Agreement; and this

                                      -68-

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     Agreement, assuming the due authorization, execution and delivery hereof by
     the other parties hereto, constitutes a legal, valid and binding obligation
     of the Servicer, enforceable against the Servicer in accordance with its
     terms, except that (a) the enforceability hereof may be limited by
     bankruptcy, insolvency, moratorium, receivership and other similar laws
     relating to creditors' rights generally and (b) the remedy of specific
     performance and injunctive and other forms of equitable relief may be
     subject to equitable defenses and to the discretion of the court before
     which any proceeding therefor may be brought.

          (iii) The execution and delivery of this Agreement by the Servicer,
     the servicing of the Mortgage Loans under this Agreement, the consummation
     of any other of the transactions contemplated by this Agreement, and the
     fulfillment of or compliance with the terms hereof are in the ordinary
     course of business of the Servicer and will not (A) result in a material
     breach of any term or provision of the charter or by-laws of the Servicer
     or (B) materially conflict with, result in a material breach, violation or
     acceleration of, or result in a material default under, the terms of any
     other material agreement or instrument to which the Servicer is a party or
     by which it may be bound, or (C) constitute a material violation of any
     statute, order or regulation applicable to the Servicer of any court,
     regulatory body, administrative agency or governmental body having
     jurisdiction over the Servicer; and the Servicer is not in breach or
     violation of any material indenture or other material agreement or
     instrument, or in violation of any statute, order or regulation of any
     court, regulatory body, administrative agency or governmental body having
     jurisdiction over it which breach or violation may materially impair the
     Servicer's ability to perform or meet any of its obligations under this
     Agreement.

          (iv) The Servicer is an approved servicer of mortgage loans for Fannie
     Mae and is an approved servicer of mortgage loans for Freddie Mac.

          (v) No litigation is pending or, to the best of the Servicer's
     knowledge, threatened, against the Servicer that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement or the ability of the Servicer to service the Mortgage Loans or
     to perform any of its other obligations under this Agreement in accordance
     with the terms hereof.

          (vi) No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by the Servicer of, or compliance by the Servicer with, this
     Agreement or the consummation of the transactions contemplated hereby, or
     if any such consent, approval, authorization or order is required, the
     Servicer has obtained the same.

          (vii) The Servicer will fully furnish (for the period it services the
     Mortgage Loans), in accordance with the Fair Credit Reporting Act and its
     implementing regulations, accurate and complete information (e.g.,
     favorable and unfavorable) on its borrower credit files to Equifax,
     Experian and Trans Union Credit Information Company on a monthly basis.

     SECTION 2.05. Substitutions and Repurchases of Mortgage Loans that are not
"Qualified Mortgages"

     Upon discovery by the Depositor, the Servicer or the Trustee that any
Mortgage Loan does not constitute a "qualified mortgage" within the meaning of
section 860G(a)(3) of the Code, the party discovering such fact shall promptly
(and in any event within five (5) Business Days of discovery) give written
notice thereof to the other parties. In connection therewith, the Depositor
shall, at the Depositor's option, either (i) substitute, if the conditions in
Section 2.03(c) with respect to substitutions are satisfied, a Replacement
Mortgage Loan for the affected Mortgage Loan, or (ii) repurchase the affected
Mortgage

                                      -69-

<PAGE>

Loan within ninety (90) days of such discovery in the same manner as it would a
Mortgage Loan for a breach of representation or warranty contained in Section
2.03. The Trustee, upon the written direction of the Depositor, shall reconvey
to the Depositor the Mortgage Loan to be released pursuant hereto in the same
manner, and on the same terms and conditions, as it would a Mortgage Loan
repurchased for breach of a representation or warranty contained in Section
2.03.

     SECTION 2.06. Authentication and Delivery of Certificates

     The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, the Trustee has caused
to be authenticated and delivered to or upon the order of the Depositor, in
exchange for the Mortgage Loans, Certificates duly authenticated by the
Authenticating Agent in authorized denominations evidencing ownership of the
entire Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the
rights referred to above for the benefit of all present and future Holders of
the Certificates and to perform its duties set forth in this Agreement in
accordance with the provisions hereof.

     SECTION 2.07. REMIC Elections

          (a) The Depositor hereby instructs and authorizes the Trustee to make
an appropriate election to treat each of the Upper Tier REMIC, the Lower Tier
REMIC and the SWAP REMIC as a REMIC. The Trustee shall sign the returns
providing for such elections and such other tax or information returns that are
required to be signed by the Trustee under applicable law. This Agreement shall
be construed so as to carry out the intention of the parties that each of the
Upper Tier REMIC, the Lower Tier REMIC and the SWAP REMIC be treated as a REMIC
at all times prior to the date on which the Trust Fund is terminated.

          (b) The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby. The "Startup Day" for purposes of the REMIC Provisions shall be the
Closing Date. Each REMIC's fiscal year shall be the calendar year.

     The SWAP REMIC shall consist of all of the assets of the Trust Fund, other
than (i) amounts distributable to the Class P Certificates pursuant to Section
4.04(b)(i) hereof, (ii) the interests issued by the SWAP REMIC and the interests
issued by the Lower Tier REMIC, (iii) the Grantor Trusts described in Section
2.07 hereof, (iv) each Corridor Contract and the Corridor Contract Account, (v)
the Swap Agreement, the Cap Contract and the Supplemental Interest Trust. The
SWAP REMIC shall issue the SWAP REMIC Regular Interests, which shall be
designated as regular interests of such REMIC, and shall issue the Class SWR
Interest, which shall be designated as the sole class of residual interest in
the SWAP REMIC. Each of the SWAP REMIC Regular Interests shall have the
characteristics set forth in the Preliminary Statement and this Section 2.07.

     The Lower Tier REMIC shall consist of the SWAP REMIC Regular Interests. The
Lower Tier REMIC shall issue the Lower Tier REMIC Regular Interests, which shall
be designated as regular interests of such REMIC and shall issue the Class LTR
Interest, which shall be designated as the sole class of residual interest in
the Lower Tier REMIC. Each of the Lower Tier REMIC Regular Interests shall have
the characteristics set forth in its definition and the Preliminary Statement.

     The assets of the Upper Tier REMIC shall be the Lower Tier REMIC Regular
Interests. The REMIC Regular Interests shall be designated as the regular
interests in the Upper Tier REMIC and the Residual Interest shall be designated
as the sole class of residual interest in the Upper Tier REMIC. For federal
income tax purposes, the pass-through rate on each REMIC Regular Interest (other
than the

                                      -70-

<PAGE>

Uncertificated Class C Interest and the Class UT-IO Interest) and on the sole
class of residual interest in the Upper Tier REMIC shall be subject to a cap
equal to the Upper Tier REMIC Net WAC Cap.

     The beneficial ownership of the Class SWR Interest, the Class LTR Interest
and the Residual Interest shall be represented by the Class R Certificate. The
Class SWR Interest and the Class LTR Interest shall not have a principal balance
or bear interest.

          (c) The "tax matters person" with respect to each REMIC for purposes
of the REMIC Provisions shall be the beneficial owner of the Class R
Certificate; provided, however, that the Holder of the Class R Certificate, by
its acceptance thereof, irrevocably appoints the Trustee as its agent and
attorney-in-fact to act as "tax matters person" with respect to each such REMIC
for purposes of the REMIC Provisions. If there is more than one beneficial owner
of the Class R Certificate, the "tax matters person" shall be the Person with
the greatest percentage interest in the Class R Certificate and, if there is
more than one such Person, shall be determined under Treasury regulation Section
1.860F-4(d) and Treasury regulation Section 301.6231(a)(7)-1.

          (d) (i) It is intended that the rights of each Class of the Class A,
Class M and Class B Certificates to receive payments in respect of Excess
Interest shall be treated as a right in interest rate cap contracts written by
the Class C Certificateholders in favor of the holders of each Class of the
Class A, Class M and Class B Certificates and such shall be accounted for as
property held separate and apart from the regular interests in the Upper Tier
REMIC held by the holders of the Class A Certificates (other than the Class R
Certificate), Class M Certificates, Class B Certificates and the residual
interest in the Upper Tier REMIC held by the holder of the Class R Certificate.
For information reporting requirements, the rights of the Class A, Class M and
Class B Certificates to receive payments in respect of Excess Interest shall be
assumed to have zero or a de minimis value. This provision is intended to
satisfy the requirements of Treasury Regulations Section 1.860G-2(i) for the
treatment of property rights coupled with REMIC interests to be separately
respected and shall be interpreted consistently with such regulation. On each
Distribution Date, to the extent that any of the Class A, Class M and Class B
Certificates receive payments in respect of Excess Interest, such amounts, to
the extent not derived from payments on the Corridor Contracts, the Cap Contract
or the Swap Agreement, will be treated as distributed by the Upper Tier REMIC to
the Class C Certificates pro rata in payment of the amounts specified in Section
4.04(g) and then paid to the relevant Class of Certificates pursuant to the
related interest rate cap agreement.

          (ii) It is intended that the beneficial owners of the Certificates
(other than the Class P and Class C Certificates) shall be treated as having
entered into a notional principal contract with respect to the beneficial owners
of the Class C Certificates. Pursuant to each such notional principal contract,
all beneficial owners of each Class of Certificates (other than the Class P and
Class C Certificates) shall be treated as having agreed to pay, on each
Distribution Date, to the beneficial owners of the Class C Certificates an
aggregate amount equal to the excess, if any, of (i) the amount payable on such
Distribution Date on the Corresponding REMIC Regular Interest of such Class of
Certificates over (ii) the amount payable on such Class of Certificates on such
Distribution Date (such excess, a "Class Payment Shortfall"). A Class Payment
Shortfall shall be allocated to each Class of Certificates to the extent that
interest accrued on such Class for the related Accrual Period at the
Pass-Through Rate for a Class, computed by substituting "Upper Tier REMIC Net
WAC Cap" for the Available Funds Cap set forth in the definition thereof,
exceeds the amount of interest accrued on such Certificate at the Pass-Through
Rate (without such substitution) for the related Accrual Period, and a Class
Payment Shortfall payable from principal collections shall be allocated to the
most subordinate Class of Certificates with an outstanding principal balance to
the extent of such balance.

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<PAGE>

          (e) The parties intend that the portion of the Trust Fund consisting
of the Uncertificated Class C Interest, the uncertificated Class UT-IO Interest,
the rights to receive payments deemed made by the Class A, Class M and Class B
Certificates in respect of notional principal contracts described in Section
2.07(d)(ii), the Corridor Contract Account, the Corridor Contracts, the
Supplemental Interest Trust which holds the Swap Agreement and the Cap Contract,
and the obligation of the holders of the Class C Certificates to pay amounts in
respect of Excess Interest to the holders of the Class A, Class M and Class B
Certificates shall be treated as a "grantor trust" under the Code, for the
benefit of the holders of the Class C Certificates, and the provisions hereof
shall be interpreted consistently with this intention. In furtherance of such
intention, the Trustee shall (i) furnish or cause to be furnished to the holders
of the Class C Certificates information regarding their allocable share, if any,
of the income with respect to such grantor trust, (ii) file or cause to be filed
with the Internal Revenue Service Form 1041 (together with any necessary
attachments) and such other forms as may be applicable, (iii) comply with such
information reporting obligations with respect to payments from such grantor
trust to the holders of Class A, Class M, Class B and Class C Certificates as
may be applicable under the Code and (iv) provide, upon applying for and
receiving the tax identification number for the grantor trust from the IRS, a
properly completed Form W-9 on behalf of such grantor trust to the Swap
Counterparty and Cap Contract Counterparty.

          (f) The parties intend that the portion of the Trust Fund consisting
of the right to receive amounts distributable to the Class P Certificates
pursuant to Section 4.04(b)(i) hereof shall be treated as a "grantor trust"
under the Code, for the benefit of the holders of the Class P Certificates, and
the provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish or cause to be
furnished to the holders of the Class P Certificates information regarding their
allocable share of the income with respect to such grantor trust and (ii) file
or cause to be filed with the Internal Revenue Service Form 1041 (together with
any necessary attachments) and such other forms as may be applicable.

          (g) The parties intend that amounts paid to the Swap Counterparty
under the Swap Agreement shall be deemed for federal income tax purposes to be
paid by the Class C Certificates first, out of funds deemed received in respect
of the Class UT-IO Interest, second, out of funds deemed received in respect of
the Uncertificated Class C Interest and third, out of funds deemed received in
respect of notional principal contracts described in Section 2.07(d)(ii), and
the provisions hereof shall be interpreted consistently with this intention. On
each Distribution Date, to the extent that amounts paid to the Swap Counterparty
are deemed paid out of funds received in respect of the Uncertificated Class C
Interest, such amounts will be treated as distributed by the Upper Tier REMIC to
the Class C Certificates pro rata in payment of the amounts specified in Section
4.04(g) and then paid to the Swap Counterparty pursuant to the Swap Agreement.

     The Supplemental Interest Trust shall be an "outside reserve fund" for
federal income tax purposes and not an asset of any REMIC. Furthermore, the
Holders of the Class C Certificates shall be the beneficial owners of the
Supplemental Interest Trust for all federal income tax purposes, and shall be
taxable on all income earned thereon.

          (h) All payments of principal and interest at the Net Mortgage Rate on
each of the Mortgage Loans (other than amounts distributable to the Class P
Certificates pursuant to Section 4.04(b)(i) hereof) received by the SWAP REMIC
with respect to the Mortgage Loans shall be paid to the SWAP REMIC Regular
Interests until the principal balance of all such interests have been reduced to
zero and any losses allocated to such interests have been reimbursed. Any
available funds remaining in the SWAP REMIC on a Distribution Date after
distributions to the SWAP REMIC Regular Interests shall be distributed to the
Class R Certificates on account of the Class SWR Interest. On each Distribution

                                      -72-

<PAGE>

Date, the Trustee shall distribute the aggregate Interest Funds (net of expenses
(other than any Net Swap Payment or Swap Termination Payment made to the Swap
Counterparty) and payments to the Class P Certificates) with respect to each of
the SWAP REMIC Regular Interests based on the interest rates for each such SWAP
REMIC Regular Interest. On each Distribution Date, the Trustee shall distribute
the aggregate Principal Funds with respect to the Group One Mortgage Loans first
to the Class 1-SW1 Interest until its principal balance is reduced to zero and
then sequentially to each of the other SWAP REMIC Regular Interests beginning
with designation "1" in ascending order of their numerical class designation, in
equal amounts to each such class in such numerical designation, until the
principal balance of each such class is reduced to zero. All losses with respect
to the Group One Mortgage Loans shall be allocated among the SWAP REMIC Regular
Interests beginning with the designation "1" in the same manner that principal
distributions are allocated. On each Distribution Date, the Trustee shall
distribute the aggregate Principal Funds with respect to the Group Two Mortgage
Loans first to the Class 2-SW2 Interest until its principal balance is reduced
to zero and then sequentially to each of the other SWAP REMIC Regular Interests
beginning with designation "2" in ascending order of their numerical class
designation, in equal amounts to each such class in such numerical designation,
until the principal balance of each such class is reduced to zero. All losses
with respect to the Group Two Mortgage Loans shall be allocated among the SWAP
REMIC Regular Interests beginning with the designation "2" in the same manner
that principal distributions are allocated. Subsequent Recoveries with respect
to the Group One and Group Two Mortgage Loans shall be allocated in the reverse
fashion from the manner in which losses are allocated.

     All payments received by the Lower Tier REMIC with respect to the SWAP
REMIC Regular Interests shall be paid to the Lower Tier REMIC Regular Interests
until the principal balance of all such interests have been reduced to zero and
any losses allocated to such interests have been reimbursed. Any excess amounts
shall be distributed to the Class LTR Interest. On each Distribution Date,
payments and losses shall be allocated among the Lower Tier REMIC Regular
Interests so that (i) each of the Lower Tier REMIC I Marker Interests shall have
a principal balance equal to 25% of the principal balance of the Corresponding
Certificates, (ii) the Class LTIX Interest has a principal balance equal to the
excess of (x) 50% of the remaining principal balance of the Mortgage Loans over
(y) the aggregate principal balance of the Lower Tier REMIC I Marker Interests
(if necessary to reflect an increase in overcollateralization, accrued and
unpaid interest on the Class LTIX interest may be added to its principal amount
to achieve this result) and (iii) the aggregate principal amount of the Class
LTII1A Interest, Class LTII1B Interest, Class LTII2A Interest, Class LTII2B
Interest and the Class LTIIX Interest shall equal 50% of the remaining principal
balance of the Mortgage Loans. Distributions and losses allocated to the Lower
Tier REMIC Regular Interests described in clause (iii) of the preceding sentence
will be allocated among such Lower Tier REMIC Regular Interests in the following
manner: (x) such distributions shall be deemed made to such Lower Tier REMIC
Regular Interests first, so as to keep the principal balance of the each such
Lower Tier REMIC Regular Interest with "B" at the end of its designation equal
to 0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group and second, to such Lower Tier REMIC Regular
Interests with "A" at the end of its designation so that the uncertificated
principal balance of each such Lower Tier REMIC Regular Interest is equal to
0.05% of the excess of (I) the aggregate scheduled principal balance of the
Mortgage Loans in the related Mortgage Group over (II) the aggregate principal
balance of Certificate Group One, in the case of the Class LTII1A Interest, or
Certificate Group Two, in the case of the Class LTII2A Interest (except that if
0.05% of any such excess is greater than the principal amount of the related
Lower Tier REMIC II Marker Interest with "A" at the end of its designation, the
least amount of principal shall be distributed to each Lower Tier REMIC II
Marker Interest with "A" at the end of its designation such that the Lower Tier
REMIC Subordinated Balance Ratio is maintained) and finally, any remaining
distributions of principal to the Class LTIIX Interest and (y) such losses shall
be allocated among the Lower Tier REMIC Regular Interests described in clause
(iii) of the preceding sentence first, so as to keep the principal balance of
the

                                      -73-

<PAGE>

each such Lower Tier REMIC Regular Interest with "B" at the end of its
designation equal to 0.05% of the aggregate scheduled principal balance of the
Mortgage Loans in the related Mortgage Group; second, to such Lower Tier REMIC
Regular Interests with "A" at the end of its designation so that the
uncertificated principal balance of each such Lower Tier REMIC Regular Interest
is equal to 0.05% of the excess of (I) the aggregate scheduled principal balance
of the Mortgage Loans in the related Mortgage Group over (II) the aggregate
principal balance of Certificate Group One, in the case of the Class LTII1A
Interest, or Certificate Group Two, in the case of the Class LTII2A Interest
(except that if 0.05% of any such excess is greater than the principal amount of
the related Lower Tier REMIC II Marker Interest with "A" at the end of its
designation, the least amount of losses shall be allocated to each Lower REMIC
II Marker Interest with "A" at the end of its designation such that the Lower
Tier REMIC Subordinated Balance Ratio is maintained) and finally, any remaining
losses to the Class LTIIX Interest. Notwithstanding the preceding two sentences,
however, losses not allocated to any Class of Certificates will not be allocated
to any Lower Tier REMIC Regular Interests. All computations with respect to the
Lower Tier REMIC Regular Interests shall be taken out to ten decimal places.

     Any available funds remaining in the Lower Tier REMIC on a Distribution
Date after distributions to the Lower Tier REMIC Regular Interests shall be
distributed to the Class R Certificates in respect of the Class LTR Interest.

     If on any Distribution Date the Certificate Principal Balance of any Class
of Certificates is increased pursuant to the last sentence of the definition of
"Certificate Principal Balance", then there shall be an equivalent increase in
the principal amounts of the Lower Tier REMIC Regular Interests, with such
increase allocated (before the making of distributions and the allocation of
losses on the Lower Tier REMIC Regular Interests on such Distribution Date)
among the Lower Tier REMIC Regular Interests so that, to the greatest extent
possible, (i) each of the Lower Tier REMIC I Marker Interests has a principal
balance equal to 25% of the principal balance of the Corresponding Certificates,
(ii) the Class LTIX Interest has a principal balance equal to the excess of (x)
50% of the remaining principal balance of the Mortgage Loans over (y) the
aggregate principal balance of the Lower Tier REMIC I Marker Interests and (iii)
the aggregate principal amount of the Lower Tier REMIC II Marker Interests and
the Class LTIIX Interest shall equal 50% of the remaining principal balance of
the Mortgage Loans. Allocations in connection with clause (iii) shall be made so
that, to the greatest extent possible, (a) the principal balance of each Lower
Tier REMIC II Marker Interest with "B" at the end of its designation equals
0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
related Mortgage Group, (b) the principal balance of each Lower Tier REMIC II
Marker Interest with "A" at the end of its designation equals 0.05% of the
excess of (x) the aggregate scheduled principal balance of the Mortgage Loans in
related Mortgage Group over (y) the aggregate principal balance of Certificate
Group One in the case of the Class LTII1A Interest, or Certificate Group Two in
the case of the Class LTII2A Interest and (c) any remaining allocations are made
to the Class LTIIX Interest.

          (i) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Servicer of its duties
and obligations set forth herein, the Servicer shall indemnify the NIMs Insurer,
the Trustee and the Issuing Entity against any and all Losses resulting from
such negligence; provided, however, that the Servicer shall not be liable for
any such Losses attributable to the action or inaction of the Trustee, the
Depositor or the Holder of the residual interest in such REMIC, as applicable,
nor for any such Losses resulting from misinformation provided by the Holder of
the residual interest in such REMIC on which the Servicer has relied. The
foregoing shall not be deemed to limit or restrict the rights and remedies of
the Holder of the residual interest in such REMIC now or hereafter existing at
law or in equity. Notwithstanding the foregoing, however, in no event shall the
Servicer have any liability (1) for any

                                      -74-

<PAGE>

action or omission that is taken in accordance with and in compliance with the
express terms of, or which is expressly permitted by the terms of, this
Agreement, (2) for any Losses other than those arising out of a negligent
performance by the Servicer of its duties and obligations set forth herein, and
(3) for any special or consequential damages to Certificateholders (in addition
to payment of principal and interest on the Certificates).

          (j) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC, or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Trustee of its duties
and obligations set forth herein, the Trustee shall indemnify the NIMs Insurer
and the Issuing Entity against any and all Losses resulting from such
negligence; provided, however, that the Trustee shall not be liable for any such
Losses attributable to the action or inaction of the Servicer, the Depositor or
the Holder of the residual interest in such REMIC, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of the residual
interest in such REMIC on which the Trustee has relied. The foregoing shall not
be deemed to limit or restrict the rights and remedies of the Holder of the
residual interest in such REMIC now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Trustee have any
liability (1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than those arising out of a
negligent performance by the Trustee of its duties and obligations set forth
herein, and (3) for any special or consequential damages to Certificateholders
(in addition to payment of principal and interest on the Certificates).

     SECTION 2.08. Covenants of the Servicer

     The Servicer hereby covenants to each of the other parties to this
Agreement that the Servicer shall comply in the performance of its obligations
under this Agreement with all reasonable rules and requirements of the insurer
under each Required Insurance Policy.

     SECTION 2.09. Permitted Activities of the Issuing Entity

     The Issuing Entity is created for the object and purpose of engaging in the
Permitted Activities. In furtherance of the foregoing, the Trustee is hereby
authorized and directed to execute and deliver on behalf of the Issuing Entity,
and to perform the duties and obligations of the Issuing Entity under, the
Corridor Contracts, an insurance and indemnity agreement with a NIMs Insurer and
any other agreement or instrument related thereto, in each case in such form as
the Depositor shall direct or shall approve, the execution and delivery of any
such agreement by the Depositor to be conclusive evidence of its approval
thereof. In addition, the Supplemental Interest Trust Trustee is hereby
authorized and directed to execute and deliver, on behalf of the Supplemental
Interest Trust, the Cap Contract and the Swap Agreement, and to execute and
deliver on behalf of the Issuing Entity, and to perform the duties and
obligations of the Supplemental Interest Trust under any agreement or instrument
related to the Cap Contract and the Swap Agreement, in each case in such form as
the Depositor shall direct or shall approve in writing, the execution and
delivery of any such agreement by the Depositor to be conclusive evidence of its
approval thereof.

     SECTION 2.10. Qualifying Special Purpose Entity

     For purposes of SFAS 140, the parties hereto intend that the Issuing Entity
shall be treated as a "qualifying special purpose entity" as such term is used
in SFAS 140 and any successor rule thereto and its power and authority as stated
in Section 2.09 of this Agreement shall be limited in accordance with paragraph
35 or SFAS 140.

                                      -75-
<PAGE>

     SECTION 2.11. Depositor Notification of NIM Notes

     The Depositor shall notify the Servicer and the Trustee in writing when NIM
Notes are issued and of the identity of the NIMs Insurer, if applicable, and
when all previously issued NIM Notes are no longer outstanding.

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

     SECTION 3.01. Servicer to Service Mortgage Loans

     For and on behalf of the Certificateholders, the Servicer shall service and
administer the Mortgage Loans in accordance with the Accepted Servicing
Practices. In connection with such servicing and administration, the Servicer
shall have full power and authority, acting alone and/or through subservicers as
provided in Section 3.02 hereof, to do or cause to be done any and all things
that it may deem necessary or desirable in connection with such servicing and
administration, including but not limited to, the power and authority, subject
to the terms hereof (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages (but only
in the manner provided in this Agreement), (iii) to collect any Insurance
Proceeds and other Liquidation Proceeds and (iv) subject to Section 3.12(a), to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that, subject to Section 6.03, the
Servicer shall not take any action that is inconsistent with or prejudices the
interests of the Issuing Entity or the Certificateholders in any Mortgage Loan
serviced by it under this Agreement or the rights and interests of the other
parties to this Agreement except as otherwise required by this Agreement or by
law. Notwithstanding anything in this Agreement to the contrary, the Servicer
shall not make or permit any modification, waiver or amendment of any term of
any Mortgage Loan which would cause any of the REMICs provided for herein to
fail to qualify as a REMIC or result in the imposition of any tax under Section
860G(a) or 860G(d) of the Code. The Servicer shall represent and protect the
interest of the Trust Fund in the same manner as it currently protects its own
interest in mortgage loans in its own portfolio in any claim, proceeding or
litigation regarding a Mortgage Loan, but in any case not in any manner that is
a lesser standard than that provided in the first sentence of this Section 3.01.
Without limiting the generality of the foregoing, the Servicer, in its own name
or in the name of the Depositor and the Trustee, is hereby authorized and
empowered by the Depositor and the Trustee, when the Servicer believes it
appropriate in its reasonable judgment, to execute and deliver, on behalf of the
Trustee, the Depositor, the Certificateholders or any of them, any and all
instruments of satisfaction or cancellation, or of partial or full release or
discharge, subordinations and all other comparable instruments, with respect to
the Mortgage Loans, and with respect to the Mortgaged Properties held for the
benefit of the Certificateholders. The Servicer shall prepare and deliver to the
Depositor and/or the Trustee such documents requiring execution and delivery by
any or all of them as are necessary or appropriate to enable the Servicer to
service and administer the Mortgage Loans, to the extent that the Servicer is
not permitted to execute and deliver such documents pursuant to the preceding
sentence. Upon receipt of such documents, the Depositor and/or the Trustee shall
execute such documents and deliver them to the Servicer. For purposes of this
Section 3.01, the Trustee hereby grants to the Servicer a limited power of
attorney in such form as shall be agreed to by the Trustee and the

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Servicer to execute and file any and all documents necessary to fulfill the
obligations of the Servicer under this Section 3.01.

     Upon request of the Servicer, the Trustee shall furnish the Servicer with
any powers of attorney and other documents in form as provided to it necessary
or appropriate to enable the Servicer to service and administer the Mortgage
Loans. The Trustee shall not be responsible for and the Servicer shall indemnify
the Trustee for any action taken by the Servicer pursuant to the application of
any power of attorney to the extent indemnification by the Servicer is required
by Section 3.25 and provided that the Servicer shall have no obligation to
indemnify the Trustee for such action to the extent such action was taken
pursuant to and in accordance with specific written instructions from the
Trustee, which instructions are not based on Servicer's recommendations or
proposals. Notwithstanding anything contained herein to the contrary, the
Servicer shall not without the Trustee's written consent, hire or procure
counsel to represent the Trustee without indicating its representative capacity.

     The Servicer shall not be required to make any Advance or Servicing Advance
with respect to a Mortgage Loan that is 150 days or more delinquent.

     The Servicer and the Trustee shall have at least 30 days' notice of the
appointment of a NIMs Insurer prior to being required to deliver any notices
pursuant to this Agreement to such NIMs Insurer.

     The Servicer and the Trustee shall have at least 10 days' notice of the
issuance of any NIM Notes.

     The Servicer shall deliver a list of Servicing Officers and specimen
signatures to the Trustee by the Closing Date.

     The Servicer will transmit full-file credit reporting data for each
Mortgage Loan pursuant to Fannie Mae Guide Announcement 97-02 and for each
Mortgage Loan, the Servicer agrees that it shall report one of the following
statuses each month as follows: current, delinquent (30-, 60-, 90-days, etc.),
foreclosed or charged-off.

     The Servicer further is authorized and empowered by the Trustee, on behalf
of the Certificateholders and the Trustee, in its own name or in the name of the
Sub-Servicer, when the Servicer or the Sub-Servicer, as the case may be,
believes it is appropriate in its best judgment to register any Mortgage Loan on
the MERS System, or cause the removal from the registration of any Mortgage Loan
on the MERS System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any reasonable expenses incurred in connection with the
actions described in the preceding sentence or as a result of MERS discontinuing
or becoming unable to continue operations in connection with the MERS System,
shall be subject to withdrawal by the Servicer from the Collection Account
(provided that such expenses constitute "unanticipated expenses" within the
meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii)).

     With respect to any Mortgage Loan, the Servicer may consent to the
refinancing of the prior senior lien relating to such Mortgage Loan, provided
that the following requirements are met:

          (a) the resulting Combined Loan-to-Value Ratio of such Mortgage Loan
is no higher than the Combined Loan-to-Value Ratio prior to such refinancing;

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<PAGE>

          (b) the interest rate for the loan evidencing the refinanced senior
lien is no more than 2.0% higher than the interest rate on the loan evidencing
the existing senior lien immediately prior to the date of such refinancing; and

          (c) the loan evidencing the refinanced senior lien is not subject to
negative amortization.

     SECTION 3.02. Servicing and Subservicing; Enforcement of the Obligations of
Servicer

          (a) The Servicer may arrange for the subservicing of any Mortgage Loan
by a subservicer, which may be an Affiliate, pursuant to a subservicing
agreement (each, a "Subservicing Agreement"); provided, however, that (i) such
subservicing arrangement and the terms of the related Subservicing Agreement
must provide for the servicing of such Mortgage Loans in a manner consistent
with the servicing arrangements contemplated hereunder, (ii) that such agreement
would not result in a withdrawal or downgrading by any Rating Agency of the
ratings of any Certificates or any of the NIM Notes evidenced by a letter to
that effect delivered by each Rating Agency to the Depositor and the NIMs
Insurer and (iii) the NIMs Insurer shall have consented to such Subservicing
Agreement, which consent shall not be unreasonably withheld. Notwithstanding the
provisions of any Subservicing Agreement, any of the provisions of this
Agreement relating to agreements or arrangements between the Servicer and a
subservicer or reference to actions taken through a subservicer or otherwise,
the Servicer shall remain obligated and liable to the Depositor, the Trustee and
the Certificateholders for the servicing and administration of the Mortgage
Loans in accordance with the provisions of this Agreement without diminution of
such obligation or liability by virtue of such Subservicing Agreements or
arrangements or by virtue of indemnification from the subservicer and to the
same extent and under the same terms and conditions as if the Servicer alone
were servicing and administering the Mortgage Loans. Every Subservicing
Agreement entered into by the Servicer shall contain a provision giving any
successor servicer the option to terminate such agreement, with the consent of
the NIMs Insurer (which consent shall not be unreasonably withheld), in the
event a successor servicer is appointed. All actions of the each subservicer
performed pursuant to the related Subservicing Agreement shall be performed as
an agent of the Servicer with the same force and effect as if performed directly
by the Servicer. The Servicer shall deliver to the NIMs Insurer and the Trustee
copies of all Subservicing Agreements. The Trustee shall have no obligations,
duties or liabilities with respect to a subservicer, including, without
limitation, any obligation, duty or liability to monitor such subservicer or to
pay a Subservicer's fees and expenses.

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

          (c) The Servicer shall not permit a Subservicer to perform any
servicing responsibilities hereunder with respect to the Mortgage Loans unless
that Subservicer first agrees in writing with the Servicer to deliver an
Assessment of Compliance and an Accountant's Attestation in such manner and at
such times that permits that Servicer to comply with Section 3.17 of this
Agreement.

     SECTION 3.03. Rights of the Depositor and the Trustee in Respect of the
Servicer

     Neither the Trustee nor the Depositor shall have any responsibility or
liability for any action or failure to act by the Servicer, and neither of them
is obligated to supervise the performance of the Servicer hereunder or
otherwise.

     SECTION 3.04. Trustee to Act as Servicer

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     Subject to Sections 6.04 and 7.02, in the event that the Servicer shall for
any reason no longer be the servicer hereunder (including by reason of an Event
of Default), the Trustee or its designee shall, within a period of time not to
exceed ninety (90) days from the date of notice of termination or resignation,
thereupon assume all of the rights and obligations of the Servicer hereunder
arising thereafter (except that the Trustee shall not be (i) liable for losses
arising out of any acts or omissions of the predecessor servicer hereunder, (ii)
obligated to make Advances or Servicing Advances if it is prohibited from doing
so by applicable law, (iii) obligated to effectuate repurchases or substitutions
of Mortgage Loans hereunder, including pursuant to Section 2.02 or 2.03 hereof,
(iv) responsible for any expenses of the Servicer pursuant to Section 2.03 or
(v) deemed to have made any representations and warranties hereunder, including
pursuant to Section 2.04 or the first paragraph of Section 6.02 hereof;
provided, however that the Trustee (subject to clause (ii) above) or its
designee, in its capacity as the successor servicer, shall immediately assume
the terminated or resigning Servicer's obligation to make Advances and Servicing
Advances). No such termination or resignation shall affect any obligation of the
Servicer to pay amounts owed under this Agreement and to perform its duties
under this Agreement until its successor assumes all of its rights and
obligations hereunder. If the Servicer shall for any reason no longer be a
servicer (including by reason of any Event of Default), the Trustee (or any
other successor servicer) may, at its option, succeed to any rights and
obligations of the Servicer under any subservicing agreement in accordance with
the terms thereof; provided, however, that the Trustee (or any other successor
servicer) shall not incur any liability or have any obligations in its capacity
as servicer under a subservicing agreement arising prior to the date of such
succession unless it expressly elects to succeed to the rights and obligations
of the Servicer thereunder; and the Servicer shall not thereby be relieved of
any liability or obligations under the subservicing agreement arising prior to
the date of such succession. To the extent any costs or expenses, including
without limitation, Servicing Transfer Costs incurred by the Trustee in
connection with this Section 3.04 or Section 7.02, are not paid by the Servicer
pursuant to this Agreement within thirty (30) days of the date of the Trustee's
invoice thereof, such amounts shall be payable out of the Certificate Account;
provided that if the Servicer has been terminated by reason of an Event of
Default, the terminated servicer shall reimburse the Issuing Entity for any such
expense incurred by the Issuing Entity upon receipt of a reasonably detailed
invoice evidencing such expenses. If the Trustee is unwilling or unable to act
as servicer, the Trustee shall seek to appoint a successor servicer that is
eligible in accordance with the criteria specified in this Agreement and
reasonably acceptable to the NIMs Insurer.

     The Servicer shall, upon request of the Trustee, but at the expense of the
Servicer if the Servicer has been terminated by reason of an Event of Default,
deliver to the assuming party all documents and records relating to each
subservicing agreement and the Mortgage Loans then being serviced and otherwise
use its best efforts to effect the orderly and efficient transfer of the
subservicing agreement to the assuming party.

     SECTION 3.05. Collection of Mortgage Loan Payments; Collection Account;
Certificate Account

          (a) The Servicer shall make reasonable efforts in accordance with
Accepted Servicing Practices to collect all payments called for under the terms
and provisions of the Mortgage Loans to the extent such procedures shall be
consistent with this Agreement and the terms and provisions of any related
Required Insurance Policy. Consistent with the foregoing, the Servicer may in
its discretion (i) waive any late payment charge or, if applicable, any default
interest charge, or (ii) subject to Section 3.01, extend the due dates for
payments due on a Mortgage Note for a period not greater than 180 days;
provided, however, that any extension pursuant to clause (ii) above shall not
affect the amortization schedule of any Mortgage Loan for purposes of any
computation hereunder, except as provided below; provided, further, that the
NIMs Insurer's prior written consent shall be required for any modification,
waiver or amendment after the Cut-off Date if the aggregate number of
outstanding Mortgage Loans

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<PAGE>

which have been modified, waived or amended exceeds 5% of the number of Mortgage
Loans as of the Cut-Off Date. In the event of any such arrangement pursuant to
clause (ii) above, subject to Section 4.01, the Servicer shall make any Advances
on the related Mortgage Loan during the scheduled period in accordance with the
amortization schedule of such Mortgage Loan without modification thereof by
reason of such arrangements. Notwithstanding the foregoing, in the event that
any Mortgage Loan is in default or, in the judgment of the Servicer, such
default is reasonably foreseeable, the Servicer, consistent with the standards
set forth in Section 3.01, may also waive, modify or vary any term of such
Mortgage Loan (including modifications that would change the Mortgage Rate,
forgive the payment of principal or interest or extend the final maturity date
of such Mortgage Loan), accept payment from the related Mortgagor of an amount
less than the Stated Principal Balance in final satisfaction of such Mortgage
Loan, or consent to the postponement of strict compliance with any such term or
otherwise grant indulgence to any Mortgagor (any and all such waivers,
modifications, variances, forgiveness of principal or interest, postponements,
or indulgences collectively referred to herein as "forbearance"), provided,
however, that in determining which course of action permitted by this sentence
it shall pursue, the Servicer shall adhere to the standards of Section 3.01. The
Servicer's analysis supporting any forbearance and the conclusion that any
forbearance meets the standards of Section 3.01 shall be reflected in writing in
the Mortgage File.

          (b) The Servicer will not waive any Prepayment Charge or portion
thereof unless, (i) the enforceability thereof shall have been limited by
bankruptcy, insolvency, moratorium, receivership or other similar laws relating
to creditors' rights generally or is otherwise prohibited by law, or (ii) the
collectability thereof shall have been limited due to acceleration in connection
with a foreclosure or other involuntary payment, or (iii) the Servicer has not
been provided with information sufficient to enable it to collect the Prepayment
Charge, or (iv) in the Servicer's reasonable judgment as described in Section
3.01 hereof, (x) such waiver relates to a default or a reasonably foreseeable
default, (y) such waiver would maximize recovery of total proceeds taking into
account the value of such Prepayment Charge and related Mortgage Loan and (z)
doing so is standard and customary in servicing similar Mortgage Loans
(including any waiver of a Prepayment Charge in connection with a refinancing of
a Mortgage Loan that is related to a default or a reasonably foreseeable
default), or (v) the collection of the Prepayment Charge or of a similar type of
prepayment premium would be considered "predatory" or "illegal" pursuant to
written guidance published by any applicable federal, state or local regulatory
authority having jurisdiction over such matters or has been challenged by any
such authority, or (vi) only to the extent that the Depositor has notified the
Servicer that there are no NIM Notes outstanding, there is a certified class
action in which a similar type of prepayment premium is being challenged. Except
as provided in the preceding sentence, in no event will the Servicer waive a
Prepayment Charge in connection with a refinancing of a Mortgage Loan that is
not related to a default or a reasonably foreseeable default. If the Servicer
waives or does not collect all or a portion of a Prepayment Charge relating to a
Principal Prepayment in full or in part due to any action or omission of the
Servicer, other than as provided above, the Servicer shall deposit the amount of
such Prepayment Charge (or such portion thereof as had been waived for deposit)
into the Collection Account for distribution in accordance with the terms of
this Agreement.

          (c) The Servicer shall not be required to institute or join in
litigation with respect to collection of any payment (whether under a Mortgage,
Mortgage Note or otherwise or against any public or governmental authority with
respect to a taking or condemnation) if it reasonably believes that enforcing
the provision of the Mortgage or other instrument pursuant to which such payment
is required is prohibited by applicable law.

          (d) The Servicer shall establish and initially maintain, on behalf of
the Trustee for the benefit of the Certificateholders, a Collection Account. The
Servicer shall deposit into such

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Collection Account daily, within two (2) Business Days of receipt thereof, in
immediately available funds, the following payments and collections received or
made by it on and after the Cut-off Date with respect to the Mortgage Loans:

          (i) all payments on account of principal, including Principal
     Prepayments, on the Mortgage Loans, other than principal due on the
     Mortgage Loans on or prior to the Cut-off Date;

          (ii) all payments on account of interest on the Mortgage Loans net of
     the Servicing Fee permitted under Section 3.15, other than (x) interest due
     on the Mortgage Loans on or prior to the Cut-off Date and (y) Prepayment
     Interest Excess;

          (iii) all Liquidation Proceeds, other than proceeds to be applied to
     the restoration or repair of the Mortgaged Property or released to either
     the Mortgagor or the holder of a senior lien on the Mortgaged Property in
     accordance with the Servicer's normal servicing procedures;

          (iv) all Subsequent Recoveries;

          (v) all Compensating Interest;

          (vi) any amount required to be deposited by the Servicer pursuant to
     Section 3.05(g) in connection with any losses on Permitted Investments;

          (vii) any amounts required to be deposited by the Servicer pursuant to
     Section 3.10 hereof;

          (viii) all Advances made by the Servicer pursuant to Section 4.01;

          (ix) all Prepayment Charges; and

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

     The foregoing requirements for remittance by the Servicer into the
Collection Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, late payment charges,
insufficient funds charges and payments in the nature of assumption fees (i.e.
fees related to the assumption of a Mortgage Loan upon the purchase of the
related Mortgaged Property and other similar ancillary fees (other than
Prepayment Charges) if collected, and any Prepayment Interest Excess) need not
be remitted by the Servicer. Rather, such fees and charges may be retained by
the Servicer as additional servicing compensation. In the event that the
Servicer shall remit any amount not required to be remitted and not otherwise
subject to withdrawal pursuant to Section 3.08 hereof, it may at any time
withdraw or direct the Trustee, or such other institution maintaining the
Collection Account, to withdraw such amount from the Collection Account, any
provision herein to the contrary notwithstanding. The Servicer shall maintain
adequate records with respect to all withdrawals made pursuant to this Section.
All funds deposited in the Collection Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.08. In no event
shall the Trustee incur liability for withdrawals from the Collection Account at
the direction of the Servicer.

     The Servicer shall give notice to the NIMs Insurer and the Trustee of the
location of the Collection Account maintained by it when established and prior
to any change thereof. Not later than twenty days after each Distribution Date,
the Servicer shall forward to the NIMs Insurer, the Trustee and the Depositor
the most current available bank statement for the Collection Account. Copies of
such statement shall be provided by the Trustee to any Certificateholder and to
any Person identified to the

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Trustee as a prospective transferee of a Certificate, upon request at the
expense of the requesting party, provided such statement is delivered by the
Servicer to the Trustee.

          (e) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Certificate Account. The Trustee shall, promptly upon
receipt, deposit or cause to be deposited in the Certificate Account and retain
therein the following:

          (i) the aggregate amount withdrawn by the Servicer from the Collection
     Account for deposit in the Certificate Account;

          (ii) the Purchase Price and any Substitution Adjustment Amount;

          (iii) any amount required to be deposited by the Trustee pursuant to
     Section 3.05(g) in connection with any losses on Permitted Investments; and

          (iv) the Optional Termination Amount paid by the winning bidder at the
     Auction or by the Servicer or one of its Affiliates pursuant to Section
     9.01.

     Any amounts received by the Trustee prior to 4:00 p.m. New York City time
(or such earlier deadline for investment in the Permitted Investments designated
by the Trustee) which are required to be deposited in the Certificate Account by
the Servicer may be invested for the benefit of the Trustee in Permitted
Investments on the Business Day on which they were received. The foregoing
requirements for remittance by the Servicer and deposit by the Servicer into the
Certificate Account shall be exclusive. If the Servicer fails to remit any funds
due by the time designated herein, the Servicer shall pay to the Trustee, for
its own account, interest accrued on such funds at the prime rate as set forth
in The Wall Street Journal from and including the applicable due date, to but
excluding the day such funds are paid to the Trustee. In the event that the
Servicer shall remit any amount not required to be remitted and not otherwise
subject to withdrawal pursuant to Section 3.08 hereof, it may at any time
withdraw such amount from the Certificate Account, any provision herein to the
contrary notwithstanding. All funds deposited in the Certificate Account shall
be held by the Trustee in trust for the Certificateholders until disbursed in
accordance with this Agreement or withdrawn in accordance with Section 3.08. In
no event shall the Trustee incur liability for withdrawals from the Certificate
Account at the direction of the Servicer. The Trustee shall give notice to the
NIMs Insurer and the Servicer of the location of the Certificate Account
maintained by it when established and prior to any change thereof.

          (f) Each institution that maintains the Collection Account shall, and
each institution that maintains the Certificate Account may but shall not be
required to, invest the funds in each such account, as directed by the Servicer
or the Trustee, as applicable, in writing, in Permitted Investments, which shall
mature not later than (i) in the case of the Collection Account, the Business
Day preceding the Servicer Remittance Date (except that if such Permitted
Investment is an obligation of the institution that maintains such Collection
Account or is otherwise immediately available, then such Permitted Investment
shall mature not later than the Servicer Remittance Date) and (ii) in the case
of the Certificate Account, the Business Day immediately preceding the first
Distribution Date that follows the date of such investment (except that if such
Permitted Investment is an obligation of the institution that maintains such
Certificate Account or is otherwise immediately available, then such Permitted
Investment shall mature not later than such Distribution Date) and, in each
case, shall not be sold or disposed of prior to its maturity. All such Permitted
Investments shall be made in the name of the Trustee for the benefit of the
Certificateholders. All income and gain net of any losses realized from amounts
on deposit in the Collection Account shall be for the benefit of the Servicer as
servicing compensation and shall be remitted to it monthly as provided herein.
The amount of any losses incurred in the Collection Account in respect of any
such investments shall be deposited by the Servicer in the Collection Account
out of the

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<PAGE>

Servicer's own funds immediately as realized. All income and gain net of any
losses realized from amounts on deposit in the Certificate Account shall be for
the benefit of the Trustee and shall be remitted to or withdrawn by it monthly
as provided herein. The amount of any losses incurred in the Certificate Account
in respect of any such investments shall be deposited by the Trustee in the
Certificate Account out of the Trustee's own funds immediately as realized.

     SECTION 3.06. Collection of Taxes, Assessments and Similar Items; Escrow
Accounts

     To the extent required by the related Mortgage Note, the Servicer shall
establish and maintain one or more accounts (each, an "Escrow Account") and
deposit and retain therein all collections from the Mortgagors (or advances by
the Servicer) for the payment of taxes, assessments, hazard insurance premiums
or comparable items for the account of the Mortgagors. Nothing herein shall
require the Servicer to compel a Mortgagor to establish an Escrow Account in
violation of applicable law.

     Withdrawals of amounts so collected from the Escrow Accounts may be made
only to effect timely payment of taxes, assessments, hazard insurance premiums,
condominium or PUD association dues, or comparable items, to reimburse the
Servicer out of related collections for any payments made pursuant to Sections
3.01 hereof (with respect to taxes and assessments and insurance premiums) and
3.10 hereof (with respect to hazard insurance), to refund to any Mortgagors any
sums as may be determined to be overages, to pay interest, if required by law or
the terms of the related Mortgage or Mortgage Note, to Mortgagors on balances in
the Escrow Account or to clear and terminate the Escrow Account at the
termination of this Agreement in accordance with Section 9.01 hereof. The Escrow
Accounts shall not be a part of the Trust Fund.

     SECTION 3.07. Access to Certain Documentation and Information Regarding the
Mortgage Loans

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

     The Servicer may from time to time provide the Depositor, and any Person
designated by the Depositor, with reports and information regarding the Mortgage
Loans, including without limitation, information requested by the Depositor or
an originator of the Mortgage Loans for required institutional risk control. In
addition, subject to limitations of applicable privacy laws, the Servicer may
make public information regarding performance of the Mortgage Loans.

     SECTION 3.08. Permitted Withdrawals from the Collection Account and
Certificate Account

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

          (i) to pay to the Servicer (to the extent not previously paid to or
     withheld by the Servicer), as servicing compensation in accordance with
     Section 3.15, that portion of any payment of interest that equals the
     Servicing Fee for the period with respect to which such interest payment
     was made, and, as additional servicing compensation, those other amounts
     set forth in Section 3.15;

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<PAGE>

          (ii) to reimburse the Servicer (or the Trustee as successor servicer)
     for Advances made by it (or to reimburse the Advancing Person for Advances
     made by it) with respect to the Mortgage Loans, such right of reimbursement
     pursuant to this subclause (ii) being limited to amounts received on
     particular Mortgage Loan(s) (including, for this purpose, Liquidation
     Proceeds) that represent late recoveries of payments of principal and/or
     interest on such particular Mortgage Loan(s) in respect of which any such
     Advance was made;

          (iii) to reimburse the Servicer for any Non-Recoverable Advance
     previously made and any Non-Recoverable Servicing Advances previously made
     to the extent that, in the case of Non-Recoverable Servicing Advances,
     reimbursement therefor constitutes "unanticipated expenses" within the
     meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii);

          (iv) to pay to the Servicer earnings on or investment income with
     respect to funds in or credited to the Collection Account;

          (v) to reimburse the Servicer from Insurance Proceeds for Insured
     Expenses covered by the related Insurance Policy;

          (vi) [reserved];

          (vii) to pay the Servicer (or the Trustee as successor servicer) any
     unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing
     Advances (to the extent that reimbursement for Servicing Advances would
     constitute an "unanticipated expense" within the meaning of Treasury
     Regulation Section 1.860G-1(b)(3)(ii)), the Servicer's right to
     reimbursement of Servicing Advances pursuant to this subclause (vii) with
     respect to any Mortgage Loan being limited to amounts received on
     particular Mortgage Loan(s)(including, for this purpose, Liquidation
     Proceeds and purchase and repurchase proceeds and including any Subsequent
     Recoveries related to any Liquidated Loan) that represent late recoveries
     of the payments for which such advances were made pursuant to Section 3.01
     or Section 3.06;

          (viii) to pay to the Depositor or the Servicer, as applicable, with
     respect to each Mortgage Loan or property acquired in respect thereof that
     has been purchased pursuant to Section 2.02, 2.03 or 3.12, all amounts
     received thereon and not taken into account in determining the related
     Stated Principal Balance of such repurchased Mortgage Loan;

          (ix) to reimburse the Servicer, the Trustee or the Depositor for
     expenses incurred by any of them in connection with the Mortgage Loans or
     the Certificates and reimbursable pursuant to Section 3.04, Section 3.25 or
     Section 6.03 hereof provided that reimbursement therefor would constitute
     "unanticipated" expenses within the meaning of Treasury Regulation Section
     1.860G-1(b)(3)(ii);

          (x) to reimburse the Trustee for enforcement expenses reasonably
     incurred in respect of a breach or defect giving rise to the purchase
     obligation in Section 2.03 that were incurred in the Purchase Price of the
     Mortgage Loans including any expenses arising out of the enforcement of the
     purchase obligation; provided that any such expenses will be reimbursable
     under this subclause (x) only to the extent that such expenses would
     constitute "unanticipated expenses" within the meaning of Treasury
     Regulation Section 1.860G-1(b)(3)(ii) if paid by one of the REMICs provided
     for herein;

          (xi) to pay the Servicer any unpaid Servicing Fees for any Mortgage
     Loan upon such Mortgage Loan being charged off and upon termination of the
     obligations of the Servicer;

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          (xii) to withdraw pursuant to Section 3.05 any amount deposited in the
     Collection Account and not required to be deposited therein; and

          (xiii) to clear and terminate the Collection Account upon termination
     of this Agreement pursuant to Section 9.01 hereof.

     In addition, the Servicer will use commercially reasonable efforts to cause
to be withdrawn from the Collection Account no later than 12:00 p.m. New York
City time, but in any case no later than 2:00 p.m. New York City time on the
Servicer Remittance Date, the Interest Funds and the Principal Funds (for this
purpose only, neither Interest Funds nor Principal Funds shall include a
deduction for any amount reimbursable to the Trustee unless such amounts have
actually been reimbursed from such funds at the discretion of the Servicer), to
the extent on deposit, and such amount shall be deposited in the Certificate
Account; provided, however, if the Trustee does not receive such Interest Funds
and Principal Funds by 2:00 p.m. on the Servicer Remittance Date, the Servicer
shall pay, out of its own funds, interest on such amount at a rate equal to the
"prime rate" as published by The Wall Street Journal at such time for each date
or part thereof.

     The Servicer shall keep and maintain separate accounting, on a Mortgage
Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from
the Collection Account.

     The Servicer shall provide written notification to the Trustee on or prior
to the next succeeding Servicer Remittance Date upon making any withdrawals from
the Collection Account pursuant to subclauses (iii) and (vii) above.

     Unless otherwise specified, any amounts reimbursable to the Servicer or the
Trustee from amounts on deposit in the Collection Account or the Certificate
Accounts shall be deemed to come from first, Interest Funds, and thereafter,
Principal Funds for the related Distribution Date.

          (b) The Trustee shall withdraw funds from the Certificate Account for
distribution to the Certificateholders in the manner specified in this Agreement
(and shall withhold from the amounts so withdrawn, the amount of any taxes that
it is authorized to retain pursuant to this Agreement). In addition, prior to
making such distributions to the Certificateholders, the Trustee may from time
to time make withdrawals from the Certificate Account for the following
purposes:

          (i) to withdraw pursuant to Section 3.05 any amount deposited in the
     Certificate Account and not required to be deposited therein;

          (ii) to clear and terminate the Certificate Account upon termination
     of the Agreement pursuant to Section 9.01 hereof (after paying all amounts
     necessary to the Trustee or the Servicer in connection with any such
     termination);

          (iii) to pay to the Trustee for any fees, expenses and indemnification
     reimbursable pursuant to this Agreement, including without limitation
     Sections 3.04, 6.03, 8.05 and 8.06 hereof; and

          (iv) to pay to the Trustee earnings on or investment income with
     respect to funds in or credited to the Certificate Account.

     SECTION 3.09. [RESERVED]

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     SECTION 3.10. Maintenance of Hazard Insurance

     The Servicer shall cause to be maintained, for each first lien Mortgage
Loan, hazard insurance with extended coverage in an amount, to the extent
permitted by applicable law, that is at least equal to the lesser of (i) the
estimated replacement value of the improvements that are part of such Mortgaged
Property which may be the last known coverage or (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan and (b) an amount such that
the proceeds of such policy shall be sufficient to prevent the related Mortgagor
and/or mortgagee from becoming a co-insurer. Each such policy of standard hazard
insurance shall contain, or have an accompanying endorsement that contains, a
standard mortgagee clause. The Servicer shall also cause flood insurance to be
maintained on property acquired upon foreclosure or deed in lieu of foreclosure
of any Mortgage Loan, to the extent required under the standards described
below. Pursuant to Section 3.05 hereof, any amounts collected by the Servicer
under any such policies (other than the amounts to be applied to the restoration
or repair of the related Mortgaged Property or property thus acquired or amounts
released to the Mortgagor in accordance with the Servicer's normal servicing
procedures) shall be deposited in the Collection Account. Any cost incurred by
the Servicer in maintaining any such insurance shall not, for the purpose of
calculating monthly distributions to the Certificateholders or remittances to
the Trustee for their benefit, be added to the principal balance of the Mortgage
Loan, notwithstanding that the terms of the Mortgage Loan so permit. Such costs
shall be recoverable by the Servicer out of late payments by the related
Mortgagor or out of Liquidation Proceeds to the extent and as otherwise
permitted by Section 3.08 hereof. It is understood and agreed that no earthquake
or other additional insurance is to be required of any Mortgagor or maintained
on property acquired in respect of a Mortgage other than pursuant to such
applicable laws and regulations as shall at any time be in force and as shall
require such additional insurance. If a first lien Mortgaged Property is located
at the time of origination of the Mortgage Loan in a federally designated
special flood hazard area and such area is participating in the national flood
insurance program, the Servicer shall cause flood insurance to be maintained
with respect to such Mortgage Loan. Such flood insurance shall be in an amount
equal to the lesser of (i) the outstanding principal balance of the related
Mortgage Loan, (ii) the estimated replacement value of the improvements that are
part of such Mortgaged Property which may be the last known coverage, or (iii)
the maximum amount of such insurance available for the related Mortgaged
Property under the Flood Disaster Protection Act of 1973, as amended.

     In the event that the Servicer shall obtain and maintain a blanket policy
insuring against hazard losses on all of the Mortgage Loans, it shall
conclusively be deemed to have satisfied its obligations as set forth in the
first sentence of this Section 3.10, it being understood and agreed that such
policy may contain a deductible clause on terms substantially equivalent to
those commercially available and maintained by comparable servicers. If such
policy contains a deductible clause, the Servicer shall, in the event that there
shall not have been maintained on the related Mortgaged Property a policy
complying with the first sentence of this Section 3.10, and there shall have
been a loss that would have been covered by such policy, deposit in the
Collection Account the amount not otherwise payable under the blanket policy
because of such deductible clause. In connection with its activities as servicer
of the Mortgage Loans, the Servicer agrees to present, on behalf of itself, the
Depositor and the Trustee for the benefit of the Certificateholders, claims
under any such blanket policy.

     SECTION 3.11. Enforcement of Due-On-Sale Clauses; Assumption Agreements

     When a Mortgaged Property has been or is about to be conveyed by the
Mortgagor, the Servicer shall, except as set forth below, to the extent it has
knowledge of such conveyance or prospective conveyance, exercise its rights to
accelerate the maturity of the related Mortgage Loan under any "due-on-sale"
clause contained in the related Mortgage or Mortgage Note; provided, however,
that the Servicer

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<PAGE>

shall not exercise any such right if the "due-on-sale" clause, in the reasonable
belief of the Servicer, is not enforceable under applicable law or, if
consistent with Accepted Servicing Practices, the Servicer reasonably believes
that collections and other recoveries in respect of such Mortgage Loans would be
maximized if the Mortgage Loans were not accelerated; provided, further, that
the Servicer shall not take any action in relation to the enforcement of any
"due-on-sale" clause that would adversely affect or jeopardize coverage under
any Required Insurance Policy. An Opinion of Counsel at the expense of the
Servicer (which expense shall constitute a Servicing Advance) delivered to the
Trustee and the Depositor shall conclusively establish the reasonableness of the
Servicer's belief that any "due-on-sale" clause is not enforceable under
applicable law. In such event, the Servicer shall make reasonable efforts to
enter into an assumption and modification agreement with the Person to whom such
property has been or is about to be conveyed, pursuant to which such Person
becomes liable under the Mortgage Note and, unless prohibited by applicable law
or the Mortgage, the Mortgagor remains liable thereon. If the foregoing is not
permitted under applicable law, the Servicer is authorized to enter into a
substitution of liability agreement with such Person, pursuant to which the
original Mortgagor is released from liability and such Person is substituted as
Mortgagor and becomes liable under the Note. In addition to the foregoing, the
Servicer shall not be required to enforce any "due-on-sale" clause if in the
reasonable judgment of the Servicer, entering into an assumption and
modification agreement with a Person to whom such property shall be conveyed and
releasing the original Mortgagor from liability would be in the best interests
of the Certificateholders. The Mortgage Loan, as assumed, shall conform in all
respects to the requirements, representations and warranties of this Agreement.
The Servicer shall notify the Trustee that any such assumption or substitution
agreement has been completed by forwarding to the Trustee the original copy of
such assumption or substitution agreement (indicating the Mortgage File to which
it relates), which copy shall be added by the Trustee to the related Mortgage
File and which shall, for all purposes, be considered a part of such Mortgage
File to the same extent as all other documents and instruments constituting a
part thereof. The Servicer shall be responsible for recording any such
assumption or substitution agreements. In connection with any such assumption or
substitution agreement, the Monthly Payment on the related Mortgage Loan shall
not be changed but shall remain as in effect immediately prior to the assumption
or substitution, the stated maturity or outstanding principal amount of such
Mortgage Loan shall not be changed nor shall any required monthly payments of
principal or interest be deferred or forgiven. Any fee collected by the Servicer
for consenting to any such conveyance or entering into an assumption or
substitution agreement shall be retained by or paid to the Servicer as
additional servicing compensation.

     Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Mortgage Loan by operation of law or any assumption which the Servicer may be
restricted by law from preventing, for any reason whatsoever.

     SECTION 3.12. Realization Upon Defaulted Mortgage Loans; Determination of
Excess Proceeds; Special Loss Mitigation

          (a) The Servicer shall use reasonable efforts consistent with the
servicing standard set forth in Section 3.01 to foreclose upon or otherwise
comparably convert the ownership of properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of Delinquent payments. In connection
with such foreclosure or other conversion, the Servicer shall follow such
practices and procedures as it shall deem necessary or advisable and as shall be
normal and usual in its general mortgage servicing activities and the
requirements of the insurer under any Required Insurance Policy; provided,
however, that the Servicer shall not be required to expend its own funds in
connection with the restoration of any property that shall have suffered damage
due to an uninsured cause unless it shall determine (i) that such restoration
will

                                      -87-

<PAGE>

increase the proceeds of liquidation of the Mortgage Loan after reimbursement to
itself of such expenses and (ii) that such expenses will be recoverable to it
through Liquidation Proceeds (respecting which it shall have priority for
purposes of withdrawals from the Collection Account pursuant to Section 3.08
hereof). The Servicer shall be responsible for all other costs and expenses
incurred by it in any such proceedings; provided, however, that it shall be
entitled to reimbursement thereof from the proceeds of liquidation of the
related Mortgaged Property, as contemplated in Section 3.08 hereof.

     With respect to any REO Property, the deed or certificate of sale shall be
taken in the name of the Trustee, on behalf of the Certificateholders, or its
nominee. Pursuant to its efforts to sell such REO Property, the Servicer shall
either itself or through an agent selected by the Servicer protect and conserve
such REO Property in the same manner and to such extent as is customary in the
locality where such REO Property is located and may, incident to its
conservation and protection of the interests of the Certificateholders, rent the
same, or any part thereof, as the Servicer deems to be in the best interest of
itself and the Certificateholders for the period prior to the sale of such REO
Property. The Servicer or an Affiliate thereof may receive usual and customary
real estate referral fees for real estate brokers in connection with the listing
and disposition of REO Property. The Servicer shall prepare a statement with
respect to each REO Property that has been rented showing the aggregate rental
income received and all expenses incurred in connection with the management and
maintenance of such REO Property at such times as is necessary to enable the
Servicer to comply with the reporting requirements of the REMIC Provisions. The
net monthly rental income, if any, from such REO Property shall be deposited in
the Collection Account no later than the close of business on each Determination
Date. The Servicer shall perform the tax reporting and withholding related to
foreclosures, abandonments and cancellation of indebtedness income as specified
by Sections 1445, 6050J and 6050P of the Code by preparing and filing such tax
and information returns, as may be required.

     In the event that the Issuing Entity acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such Mortgaged Property prior to
the expiration of three years from the end of the year of its acquisition by the
Issuing Entity or, at the expense of the Issuing Entity, obtain, in accordance
with applicable procedures for obtaining an automatic extension of the grace
period, more than sixty (60) days prior to the day on which such three-year
period would otherwise expire, an extension of the three-year grace period, in
which case such property must be disposed of prior to the end of such extension,
unless the Trustee and the NIMs Insurer shall have been supplied with an Opinion
of Counsel addressed to the Trustee (such Opinion of Counsel not to be an
expense of the Trustee or the NIMs Insurer), to the effect that the holding by
the Issuing Entity of such Mortgaged Property subsequent to such three-year
period or extension will not result in the imposition of taxes on "prohibited
transactions" of the Issuing Entity or any of the REMICs provided for herein as
defined in section 860F of the Code or cause any of the REMICs provided for
herein to fail to qualify as a REMIC at any time that any Certificates are
outstanding, in which case the Issuing Entity may continue to hold such
Mortgaged Property (subject to any conditions contained in such Opinion of
Counsel). Notwithstanding any other provision of this Agreement, no Mortgaged
Property acquired by the Issuing Entity shall be held, rented (or allowed to
continue to be rented) or otherwise used for the production of income by or on
behalf of the Issuing Entity in such a manner or pursuant to any terms that
would (i) cause such Mortgaged Property to fail to qualify as "foreclosure
property" within the meaning of section 860G(a)(8) of the Code or (ii) subject
the Issuing Entity or any REMIC provided for herein to the imposition of any
federal, state or local income taxes on the income earned from such Mortgaged
Property under section 860G(c) of the Code or otherwise, unless the Servicer or
the Depositor has agreed to indemnify and hold harmless the Trustee and the
Issuing Entity with respect to the imposition of any such taxes. The Servicer
shall have no liability for any losses resulting from a foreclosure on a second
lien Mortgage Loan in connection with the foreclosure of the

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<PAGE>

related first lien mortgage loan that is not a Mortgage Loan if the Servicer
does not receive notice of such foreclosure action.

     The decision of the Servicer to foreclose on a defaulted Mortgage Loan
shall be subject to a determination by the Servicer that the proceeds of such
foreclosure would exceed the costs and expenses of bringing such a proceeding.
The income earned from the management of any Mortgaged Properties acquired
through foreclosure or other judicial proceeding, net of reimbursement to the
Servicer for expenses incurred (including any property or other taxes) in
connection with such management and net of unreimbursed Servicing Fees,
Advances, Servicing Advances and any management fee paid or to be paid with
respect to the management of such Mortgaged Property, shall be applied to the
payment of principal of, and interest on, the related defaulted Mortgage Loans
(with interest accruing as though such Mortgage Loans were still current) and
all such income shall be deemed, for all purposes in this Agreement, to be
payments on account of principal and interest on the related Mortgage Notes and
shall be deposited into the Collection Account. To the extent the income
received during a Prepayment Period is in excess of the amount attributable to
amortizing principal and accrued interest at the related Mortgage Rate on the
related Mortgage Loan, such excess shall be considered to be a partial Principal
Prepayment for all purposes hereof.

     Notwithstanding the foregoing provisions of this Section 3.12 or any other
provision of this Agreement, with respect to any Mortgage Loan as to which the
assistant vice president for foreclosures or the vice president of default
management of the Servicer has actual knowledge (which shall not be presumed due
to any documents received by the Servicer) of, the presence of any toxic or
hazardous substance on the related Mortgaged Property, the Servicer shall not,
on behalf of the Trustee, either (i) obtain title to such Mortgaged Property as
a result of or in lieu of foreclosure or otherwise, or (ii) otherwise acquire
possession of, or take any other action with respect to, such Mortgaged
Property, if, as a result of any such action, the Trustee, the Issuing Entity or
the Certificateholders would be considered to hold title to, to be a
"mortgagee-in-possession" of, or to be an "owner" or "operator" of such
Mortgaged Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time,
or any comparable law, unless the Servicer believes, based on its reasonable
judgment and a report prepared by a Person who regularly conducts environmental
audits using customary industry standards, that:

     (1) such Mortgaged Property is in material compliance with applicable
environmental laws or, if not, that it would be in the best economic interest of
the Issuing Entity to take such actions as are necessary to bring the Mortgaged
Property into compliance therewith; and

     (2) it is probable that there are no circumstances present at such
Mortgaged Property relating to the use, management or disposal of any hazardous
substances, hazardous materials, hazardous wastes, or petroleum-based materials
for which additional investigation, testing, monitoring, containment, clean-up
or remediation could be required under any federal, state or local law or
regulation, or that if any such materials are present for which such action
could be required, that it would be in the best economic interest of the Issuing
Entity to take such actions with respect to the affected Mortgaged Property.

     The Servicer shall forward a copy of the environmental audit report to the
Depositor and the Trustee. The cost of the environmental audit report
contemplated by this Section 3.12 shall be advanced by the Servicer, subject to
the Servicer's right to be reimbursed therefor from the Collection Account, such
right of reimbursement being prior to the rights of Certificateholders to
receive any amount in the Collection Account received in respect of the affected
Mortgage Loan or other Mortgage Loans.

                                      -89-

<PAGE>

     If the Servicer determines, as described above, that it is in the best
economic interest of the Issuing Entity to take such actions as are necessary to
bring any such Mortgaged Property into compliance with applicable environmental
laws, or to take such action with respect to the containment, clean-up or
remediation of hazardous substances, hazardous materials, hazardous wastes or
petroleum-based materials affecting any such Mortgaged Property, then the
Servicer may take such action as it deems to be in the best economic interest of
the Issuing Entity; provided that any amounts disbursed by the Servicer pursuant
to this Section 3.12 shall constitute Advances. The cost of any such compliance,
containment, clean-up or remediation shall be advanced by the Servicer, subject
to the Servicer's right to be reimbursed therefor from the Collection Account,
such right of reimbursement being prior to the rights of Certificateholders to
receive any amount in the Collection Account received in respect of the affected
Mortgage Loan or other Mortgage Loans. If the Servicer decides not to take such
action, it may not obtain title to such Mortgaged Property.

     The Liquidation Proceeds from any liquidation of a Mortgage Loan, net of
any payment to the Servicer as provided above, shall be deposited in the
Collection Account on the next succeeding Determination Date following receipt
thereof for distribution on the related Distribution Date.

     The proceeds of any Liquidated Loan, as well as any recovery resulting from
a partial collection of Liquidation Proceeds, will be applied as between the
parties in the following order of priority: first, to reimburse the Servicer for
any related unreimbursed Servicing Advances and unpaid Servicing Fees, pursuant
to Section 3.08(a)(vii) or this Section 3.12; second, to reimburse the Servicer
for any unreimbursed Advances, pursuant to Section 3.08(a)(ii) or this Section
3.12; third, to accrued and unpaid interest (to the extent no Advance has been
made for such amount) on the Mortgage Loan, at the applicable Net Mortgage Rate
to the Due Date occurring in the month in which such amounts are required to be
distributed; fourth, as a recovery of principal of the Mortgage Loan; and fifth,
to any prepayment charges.

     The proceeds of any net income from an REO Property will be applied as
between the parties in the following order of priority: first, to reimburse the
Servicer for any related unreimbursed Servicing Advances and unpaid Servicing
Fees, pursuant to Section 3.08(a)(vii) or this Section 3.12; second, to
reimburse the Servicer for any unreimbursed Advances, pursuant to Section
3.08(a)(ii) or this Section 3.12; third, as a recovery of principal; and fourth,
to accrued and unpaid interest (to the extent no Advance has been made for such
amount) on the related REO Property, at the applicable Net Mortgage Rate to the
Due Date occurring in the month in which such amounts are required to be
distributed.

          (b) On each Determination Date, the Servicer shall determine the
respective aggregate amounts of Excess Proceeds, if any, that occurred in the
related Prepayment Period.

          (c) [Reserved].

          (d) With respect to such of the Mortgage Loans as come into and
continue in default, the Servicer will decide, in its reasonable business
judgment, whether to (i) foreclose upon the Mortgaged Properties securing those
Mortgage Loans pursuant to Section 3.12(a), (ii) write off the unpaid principal
balance of the Mortgage Loans as bad debt (provided that the Servicer has
determined that no net recovery is possible through foreclosure proceedings or
other liquidation of the related Mortgaged Property), (iii) take a deed in lieu
of foreclosure, (iv) accept a short sale or short refinance; (v) arrange for a
repayment plan or refinancing, or (vi) agree to a modification of such Mortgage
Loan. As to any Mortgage Loan that becomes 120 days delinquent, the Servicer
shall have obtained or shall obtain a broker's price opinion, the cost of which
will be reimbursable as a Servicing Advance. After obtaining the broker's price
opinion, the Servicer will determine, in its reasonable business judgment,
whether a net

                                      -90-

<PAGE>

recovery is possible through foreclosure proceedings or other liquidation of the
related Mortgage Property. If the Servicer determines that no such recovery is
possible, it must charge off the related Mortgage Loan at the time it becomes
180 days delinquent. Once a Mortgage Loan has been charged off, the Servicer
will discontinue making Advances, the Servicer will not be entitled to future
Servicing Fees (except as provided below) with respect to such Mortgage Loan,
and the Mortgage Loan will be treated as a Liquidated Mortgage Loan. If the
Servicer determines that such net recovery is possible through foreclosure
proceedings or other liquidation of the related Mortgaged Property on a Mortgage
Loan that becomes 180 days delinquent, the Servicer will continue to be entitled
to Servicing Fees, the Servicer need not charge off such Mortgage Loan and may
continue making Advances, and the Servicer will be required to notify the
Trustee of such decision.

          (e) Any Mortgage Loan that is charged off, pursuant to (d) above, may
continue to be serviced by the Servicer for the Certificateholders using
specialized collection procedures (including foreclosure, if appropriate). The
Servicer will be entitled to Servicing Fees and reimbursement of expenses in
connection with such Mortgage Loans after the date of charge off, only to the
extent of funds available from any recoveries on any such Mortgage Loans. Any
such Mortgage Loans serviced in accordance with the specialized collection
procedures shall be serviced for approximately six months. Any net recoveries
received on such Mortgage Loans during such six month period will be treated as
Subsequent Recoveries. On the date which is six months after the date on which
the Servicer begins servicing such Mortgage Loans using the specialized
collection procedures, unless specific additional net recoveries are anticipated
by the Servicer on a particular Mortgage Loan, such charged off loan will be
released to the majority holder of the Class C Certificates and thereafter, (i)
the majority holder of the Class C Certificates, as identified with contact
information in writing to the Servicer by the Depositor, will be entitled to any
amounts subsequently received in respect of any such released loans, subject to
the Servicer's fees described below, (ii) the majority holder of the Class C
Certificates may designate any servicer to service any such released loan, (iii)
the majority holder of the Class C Certificates may sell any such released loan
to a third party and (iv) to the extent the servicing of such charged off loan
is not transferred from the Servicer, the servicing of such charged off loan and
the fees therefor shall be governed by the most current servicing agreement
between the Servicer and the Sponsor.

     SECTION 3.13. Trustee to Cooperate; Release of Mortgage Files

     Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will promptly notify the Trustee or
its custodian by delivering a Request for Release substantially in the form of
Exhibit I. Upon receipt of a copy of such request, the Trustee or its custodian
shall promptly release the related Mortgage File to the Servicer, the cost of
which may be charged to the Servicer by the Trustee, and the Servicer is
authorized to cause the removal from the registration on the MERS System of any
such Mortgage if applicable, and the Servicer, on behalf of the Trustee shall
execute and deliver the request for reconveyance, deed of reconveyance or
release or satisfaction of mortgage or such instrument releasing the lien of the
Mortgage together with the Mortgage Note with written evidence of cancellation
thereon. Expenses incurred in connection with any instrument of satisfaction or
deed of reconveyance shall be chargeable to the Mortgagor to the extent
permitted by law, and otherwise to the Trust Fund to the extent such expenses
constitute "unanticipated expenses" within the meaning of Treasury Regulations
Section 1.860G-(1)(b)(3)(ii). From time to time and as shall be appropriate for
the servicing or foreclosure of any Mortgage Loan, including for collection
under any policy of flood insurance, any fidelity bond or errors or omissions
policy, or for the purposes of effecting a partial release of any Mortgaged
Property from the lien of the Mortgage or the making of any corrections to the
Mortgage Note or the Mortgage or any of the other documents included in the
Mortgage File, the Trustee or its custodian shall, upon delivery to the Trustee
or its custodian of a Request for Release in the form of Exhibit I signed

                                      -91-

<PAGE>

by a Servicing Officer, release the Mortgage File to the Servicer, and the cost
of delivery of the Mortgage File may be charged to the Servicer by the Trustee.
Subject to the further limitations set forth below, the Servicer shall cause the
Mortgage File or documents so released to be returned to the Trustee or its
custodian when the need therefor by the Servicer no longer exists, unless the
Mortgage Loan is liquidated and the proceeds thereof are deposited in the
Collection Account.

     Each Request for Release may be delivered to the Trustee or its custodian
(i) via mail or courier, (ii) via facsimile or (iii) by such other means,
including, without limitation, electronic or computer readable medium, as the
Servicer and the Trustee or its custodian shall mutually agree. The Trustee or
its custodian shall release the related Mortgage File(s) within four Business
Days of receipt of a properly completed Request for Release pursuant to clauses
(i), (ii) or (iii) above. Receipt of a properly completed Request for Release
shall be authorization to the Trustee or its custodian to release such Mortgage
Files, provided the Trustee or its custodian has determined that such Request
for Release has been executed, with respect to clauses (i) or (ii) above, or
approved, with respect to clause (iii) above, by an authorized Servicing Officer
of the Servicer, and so long as the Trustee or its custodian complies with its
duties and obligations under this Agreement. If the Trustee or its custodian is
unable to release the Mortgage Files within the period previously specified, the
Trustee or its custodian shall immediately notify the Servicer indicating the
reason for such delay. The Servicer shall not pay penalties or damages due to
the Trustee's or its designee's negligent failure to release the related
Mortgage File or the Trustee's or its designee's negligent failure to execute
and release documents in a timely manner, and such amounts shall be Servicer
Advances.

     On each day that the Servicer remits to the Trustee or its custodian
Requests for Releases pursuant to clauses (ii) or (iii) above, the Servicer
shall also submit to the Trustee or its custodian a summary of the total number
of such Requests for Releases requested on such day by the same method as
described in such clauses (ii) and (iii) above.

     If the Servicer at any time seeks to initiate a foreclosure proceeding in
respect of any Mortgaged Property as authorized by this Agreement, the Servicer
may deliver or cause to be delivered to the Trustee for signature, or on behalf
of the Trustee execute, any court pleadings, requests for trustee's sale or
other documents necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity. Notwithstanding the foregoing, the Servicer shall cause
possession of any Mortgage File or of the documents therein that shall have been
released by the Trustee or the custodian on its behalf to be returned to the
Trustee or the custodian on its behalf promptly after possession thereof shall
have been released by the Trustee or the custodian on its behalf unless (i) the
Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Collection Account, and the Servicer
shall have delivered to the Trustee or the custodian on its behalf a Request for
Release in the form of Exhibit I or (ii) the Mortgage File or document shall
have been delivered to an attorney or to a public trustee or other public
official as required by law for purposes of initiating or pursuing legal action
or other proceedings for the foreclosure of the Mortgaged Property and the
Servicer shall have delivered to the Trustee or the custodian on its behalf an
Officer's Certificate of a Servicing Officer certifying as to the name and
address of the Person to which the Mortgage File or the documents therein were
delivered and the purpose or purposes of such delivery.

     SECTION 3.14. Documents, Records and Funds in Possession of Servicer to be
Held for the Trustee.

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<PAGE>

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

     SECTION 3.15. Servicing Compensation

     As compensation for its activities hereunder, the Servicer shall be
entitled to retain or withdraw from the Collection Account out of each payment
of interest on a Mortgage Loan included in the Trust Fund an amount equal to
interest at the applicable Servicing Fee Rate on the Stated Principal Balance of
the related Mortgage Loan as of the immediately preceding Distribution Date.

     Additional servicing compensation in the form of any Excess Proceeds, late
payment fees, assumption fees (i.e. fees related to the assumption of a Mortgage
Loan upon the purchase of the related Mortgaged Property) and similar fees
payable by the Mortgagor, Prepayment Interest Excess, all income and gain net of
any losses realized from Permitted Investments in the Collection Account, and
any other benefits arising from the Collection Account and the Escrow Account
shall be retained by the Servicer to the extent not required to be deposited in
the Collection Account and the Escrow Account pursuant to Sections 3.05, 3.06 or
3.12(a) hereof. The Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder and shall not be
entitled to reimbursement therefor except as specifically provided in this
Agreement. In no event shall the Trustee be liable for any Servicing Fee or for
any differential between the Servicing Fee and the amount necessary to induce a
successor servicer to act as successor servicer under this Agreement.

     SECTION 3.16. Access to Certain Documentation

     The Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of the Certificates and the examiners
and supervisory agents of the OTS, the FDIC and such other authorities, as
applicable, access to the documentation regarding the Mortgage Loans required by
applicable regulations of the OTS and the FDIC. Such access shall be afforded
without charge, but only upon reasonable and prior written request and during
normal business hours at the offices of the Servicer designated by it provided,
that the Servicer shall be entitled to be reimbursed by each such
Certificateholder for actual expenses incurred by the Servicer in providing such
reports and access. Nothing in this Section shall limit the obligation of the
Servicer to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of the Servicer to provide access as
provided in this Section as a result of such obligation shall not constitute a
breach of this Section. Upon reasonable advance notice to the Servicer and
during regular business hours, the Trustee shall have the right to inspect and
examine the books and records of the Servicer with respect to the Mortgage
Loans.

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     SECTION 3.17. Annual Statement as to Compliance

     Not later than (a) March 12 of each calendar year (other than the calendar
year during which the Closing Date occurs) or (b) with respect to any calendar
year during which an annual report on Form 10-K is not required to be filed
pursuant to Section 3.20 on behalf of the Issuing Entity, by April 15 of each
calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer shall deliver to the Trustee and the Depositor, an
Officer's Certificate in the form attached hereto as Exhibit U stating, as to
each signatory thereof, that (i) a review of the activities of the Servicer
during the preceding calendar year and of the performance of the Servicer under
this Agreement has been made under such officer's supervision, and (ii) to the
best of such officer's knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement in all material respects
throughout such year or a portion thereof, or, if there has been a failure to
fulfill any such obligation in any material respect, specifying each such
failure known to such officer and the nature and status thereof. With respect to
any Subservicer that meets the criteria of Item 1108(a)(2)(i) through (iii) of
Regulation AB, the Servicer shall deliver, on behalf of that Subservicer, the
Officer's Certificate set forth in this Section 3.17 as and when required with
respect to such Subservicer. Copies of such statement shall be provided by the
Trustee to any Certificateholder upon written request at the Certificateholder's
expense, provided such statement has been delivered by the Servicer to the
Trustee.

     SECTION 3.18. Annual Independent Public Accountants' Servicing Statement;
Financial Statements

          (a) Not later than (i) March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 3.20 on behalf of the Issuing Entity, by April 15 of
each calendar year (or if such day is not a Business Day, the immediately
succeeding Business Day), the Servicer, at its own expense, shall deliver to the
Trustee and the Depositor an officer's assessment of its compliance with the
Servicing Criteria during the preceding calendar year as required by Rules
13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB (the
"Assessment of Compliance"), which assessment shall be substantially in the form
of Exhibit R hereto.

          (b) Not later than (i) March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) or (ii) with respect to any
calendar year during which an annual report on Form 10-K is not required to be
filed pursuant to Section 3.20 on behalf of the Issuing Entity, April 15 of each
calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer, at its own expense, shall cause a nationally or
regionally recognized firm of independent registered public accountants (who may
also render other services to any Servicer, the Sponsor or any Affiliate
thereof) which is a member of the American Institute of Certified Public
Accountants to furnish a statement to be provided to the Trustee and the
Depositor that attests to and reports on the Assessment of Compliance provided
by such Servicer pursuant to Section 3.18(a) (the "Accountant's Attestation").
Such Accountant's Attestation shall be in accordance with Rules 1-02(a)(3) and
2-02(g) of Regulation S-X under the Securities Act and the Exchange Act.

          (c) The Servicer shall deliver on behalf of any Subservicer and each
Subcontractor (unless, in the case of any Subcontractor, the Depositor has
notified the Servicer and the Trustee in writing that such compliance statement
is not required by Regulation AB) not later than March 12 of each calendar year
(other than the calendar year during which the Closing Date occurs) with respect
to any calendar year during which the Issuing Entity's annual report on Form
10-K is required to be filed in accordance with the Exchange Act and the rules
and regulations of the Commission, to the Trustee and the Depositor an
Assessment of Compliance, which assessment shall be substantially in the form of

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<PAGE>

Exhibit R hereto. The Servicer shall deliver on behalf of any Subservicer (other
than the calendar year during which the Closing Date occurs) with respect to any
calendar year during which the Issuing Entity's annual report on Form 10-K is
not required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, by April 15 of each calendar year (or, in each
case, if such day is not a Business Day, the immediately succeeding Business
Day) to the Trustee and the Depositor an Assessment of Compliance, which
assessment shall be substantially in the form of Exhibit R hereto.

          (d) Not later than March 12 of each calendar year (other than the
calendar year during which the Closing Date occurs) with respect to any calendar
year during which the Issuing Entity's annual report on Form 10-K is required to
be filed in accordance with the Exchange Act and the rules and regulations of
the Commission, the Servicer shall cause each Subservicer and each Subcontractor
(unless, in the case of any Subcontractor, the Depositor has notified the
Trustee and Servicer in writing that such compliance statement is not required
by Regulation AB) to provide for delivery to the Trustee and the Depositor an
Accountant's Attestation by a registered public accounting firm that attests to,
and reports on, the Assessment of Compliance pursuant to Section 3.18(c) above.
Other than the calendar year during which the Closing Date occurs, with respect
to any calendar year during which the Issuing Entity's annual report on Form
10-K is not required to be filed in accordance with the Exchange Act and the
rules and regulations of the Commission, not later than April 15 of each
calendar year (or, in each case, if such day is not a Business Day, the
immediately succeeding Business Day), the Servicer shall cause each Subservicer
to provide for delivery to the Trustee and the Depositor an Accountant's
Attestation by a registered public accounting firm that attests to, and reports
on, the Assessment of Compliance pursuant to Section 3.18(c) above.

          (e) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission, 15
calendar days before the date on which the Issuing Entity's annual report on
Form 10-K with respect to the transactions contemplated by this Agreement is
required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission (or, in each case, if such day is not a Business
Day, the immediately preceding Business Day), the Trustee shall deliver to the
Depositor and the Servicer an Assessment of Compliance with regard to the
Servicing Criteria applicable to the Trustee during the preceding calendar year,
which assessment shall be substantially in the form of Exhibit R hereto.

          (f) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission, 15
calendar days before the date on which the Issuing Entity's annual report on
Form 10-K with respect to the transactions contemplated by this Agreement is
required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission (or, in each case, if such day is not a Business
Day, the immediately preceding Business Day), the Trustee shall deliver to the
Depositor and the Servicer an Accountant's Attestation by a registered public
accounting firm that attests to, and reports on, the Assessment of Compliance
pursuant to Section 3.18(e) above.

          (g) Not later than, with respect to any calendar year during which the
Issuing Entity's annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the
Commission, fifteen (15) calendar days before the date on which the Issuing
Entity's annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations of the Commission (or, in each
case, if such day is not a Business Day, the immediately preceding Business
Day), the Depositor shall cause each custodian, if any, to deliver to the
Depositor, the Servicer and the Trustee an Assessment of Compliance with regard
to the Servicing

                                      -95-

<PAGE>

Criteria applicable to such custodian during the preceding calendar year, which
assessment shall be substantially in the form of Exhibit R hereto.

          (h) Not later than March 12 (or, in each case, if such day is not a
Business Day, the immediately succeeding Business Day), of any calendar year
(other than the calendar year during which the Closing Date occurs) during which
the Issuing Entity's annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the
Commission, the Depositor shall cause each custodian, if any, to deliver to the
Depositor, the Servicer and the Trustee an Accountant's Attestation by a
registered public accounting firm that attests to, and reports on, the
Assessment of Compliance pursuant to Section 3.18(g) above.

          (i) [Reserved].

          (j) [Reserved].

          (k) The Trustee agrees to require any custodian appointed by it to
indemnify and hold harmless the Trustee, the Depositor and the Servicer and each
Person, if any, who "controls" the Trustee, the Depositor or the Servicer within
the meaning of the Securities Act and its officers, directors and Affiliates
from and against any losses, damages, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments and other costs and
expenses that such Person may sustain arising out of third party claims based on
(i) the failure of the custodian, if any, to deliver when required any
information required of it pursuant to Section 3.18 or 3.20 or (ii) any material
misstatement or omission contained in any information provided on its behalf
pursuant to Section 3.18 or 3.20.

          (l) Copies of such Assessments of Compliance and Accountant's
Attestations shall be available on the Trustee's website www.etrustee.net to any
Certificateholder, provided such statement is delivered to the Trustee. The
initial Assessments of Compliance and Accountant's Attestations required
pursuant to this Section 3.18 shall be delivered to the Trustee, and the
Depositor, as applicable, by each party no later than March 12, 2008.

          (m) Each of the parties hereto acknowledges and agrees that the
purpose of this Section 3.18 is to facilitate compliance by the Sponsor and the
Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that the
parties' obligations hereunder will be supplemented and modified as necessary to
be consistent with any such amendments, interpretive advice or guidance,
convention or consensus among active participants in the asset-backed securities
markets, advice of counsel, or otherwise in respect of the requirements of
Regulation AB and the parties shall comply with requests made by the Sponsor or
the Depositor for delivery of additional or different information as the Sponsor
or the Depositor may determine in good faith is necessary to comply with the
provisions of Regulation AB, provided that such information is available to such
party without unreasonable effort or expense and within such timeframe as may be
reasonably requested. Any such supplementation or modification shall be made in
accordance with Section 10.01 without the consent of the Certificateholders, and
may result in a change in the reports filed by the Trustee on behalf of the
Issuing Entity under the Exchange Act.

     SECTION 3.19. Rights of the NIMs Insurer

     Each of the rights of the NIMs Insurer set forth in this agreement shall
exist so long as the NIM Notes issued pursuant to the Indenture remain
outstanding or the NIMs Insurer is owed amounts in respect of its guarantee of
payment on such NIM notes.

                                      -96-

<PAGE>

     SECTION 3.20. Periodic Filings

     As set forth on Schedule X hereto, for so long as the Issuing Entity is
subject to the Exchange Act reporting requirements, no later than the end of
business on the 2nd Business Day after the occurrence of an event requiring
disclosure on Form 8K (a "reportable event") (i) the Depositor, the Sponsor or
the Servicer shall have timely notified the Trustee of an item reportable on a
Form 8-K (unless such item is specific to the Trustee, in which case the Trustee
will be deemed to have notice), (ii) shall have delivered to the Trustee, all
information, data, and exhibits required to be provided or filed with such Form
8-K in a word format agreed upon by the Trustee and Depositor, Seller or
Servicer and (iii) the Depositor or the Trustee, to the extent the reportable
item pertains to such party, shall notify the Servicer thereof by telephone. The
Trustee shall not be responsible for determining what information is required to
be filed on a Form 8-K in connection with the transactions contemplated by this
Agreement (unless such information is specific to the Trustee, in which case the
Trustee will be responsible for consulting with the Depositor or Servicer in
making such a determination) or what events shall cause a Form 8-K to be
required to be filed (unless such event is specific to the Trustee, in which
case the Trustee will be responsible for consulting with the Depositor or
Servicer before causing such Form 8-K to be filed) and shall not be liable for
any late filing of a Form 8-K in the event that it does not receive all
information, data and exhibits required to be provided or filed on or prior to
the second Business Day prior to the applicable filing deadline and with respect
to signatures, by noon, New York City time, on the fourth Business Day after the
reportable event. After preparing the Form 8-K on behalf of the Depositor, the
Trustee shall, if required, forward electronically a draft copy of the Form 8-K
to the Depositor and the Servicer for review. No later than one and one-half
Business Days after receiving a final copy of the Form 8-K from the Trustee,
unless the Servicer has received from the Depositor a notice to the contrary, a
duly authorized representative of the Servicer shall sign the Form 8-K and
return an electronic or fax copy of such signed Form 8-K (with an original
executed hard copy to follow by overnight mail) to the Trustee and the Trustee
shall file such Form 8-K; provided that the Depositor has notified the Trustee
that it approves of the form and substance of such Form 8-K. If a Form 8-K
cannot be filed on time or if a previously filed Form 8-K needs to be amended,
the Trustee will follow the procedures set forth in this Agreement. After filing
with the Commission, the Trustee will, pursuant to this Agreement, make
available on its internet website a final executed copy of each Form 8-K. The
Trustee will have no obligation to prepare, execute or file such Form 8-K or any
liability with respect to any failure to properly prepare, execute or file such
Form 8-K resulting from the Trustee's inability or failure to obtain or receive
any information needed to prepare, arrange for execution or file such Form 8-K
within the time frames required by this paragraph, not resulting from its own
negligence, bad faith or willful misconduct.

     Within fifteen (15) days after each Distribution Date, the Trustee shall,
on behalf of the Issuing Entity and in accordance with industry standards, file
with the Commission via the Electronic Data Gathering and Retrieval System
(EDGAR), a Form 10-D with a copy of the report to the Certificateholders for
such Distribution Date as an exhibit thereto. Any other information provided to
the Trustee by the Servicer or Depositor to be included in Form 10-D shall be
determined and prepared by and at the direction of the Depositor pursuant to the
following paragraph and the Trustee will have no duty or liability for any
failure hereunder to determine or prepare any additional information on Form
10-D ("Additional Form 10-D Disclosure") as set forth in the next paragraph.

     As set forth in Schedule Y hereto, within five (5) calendar days after the
related Distribution Date (i) the parties hereto, as applicable, will be
required to provide to the Depositor and the Servicer, to the extent known to
such party, any Additional Form 10-D Disclosure (including any breaches of pool
asset representations and warranties or transaction covenants of which the party
has written notice and which has not been included on the monthly distribution
report for the period), if applicable, and (ii) the Depositor, to the extent it
deems necessary, forward to the Trustee in EDGAR-compatible form (with a

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<PAGE>

copy to the Servicer), or in such other form as otherwise agreed upon by the
Trustee and the Depositor, the form and substance of the Additional Form 10-D
Disclosure by the eighth (8th) calendar day after the related Distribution Date.
The Depositor will be responsible for any reasonable fees and expenses incurred
by the Trustee in connection with including any Additional Form 10-D Disclosure
on Form 10-D pursuant to this paragraph.

     After preparing the Form 10-D at the direction of the Depositor, the
Trustee will forward electronically a draft copy of the Form 10-D to the
Depositor and the Servicer for review by the 9th calendar day after the
Distribution Date. No later than two (2) Business Days after receipt of a final
copy after the related Distribution Date, unless the Servicer receives a notice
from the Trustee as described below or a notice from the Depositor that it has
discovered a material deficiency or irregularity with respect to such Form 10-D,
a duly authorized representative of the Servicer shall sign the Form 10-D and
return an electronic or fax copy of such Form 10-D (with an original executed
hard copy to follow by overnight mail) to the Trustee and the Trustee shall file
such Form 10-D within two business days. Unless the Servicer shall have received
notice from the Trustee to the contrary, the Trustee will be deemed to have
represented to the Servicer that the Monthly Statement has been properly
prepared by the Trustee and the Servicer may rely upon the accuracy thereof in
it execution of the Form 10-D. If a Form 10-D cannot be filed on time (because
of notice from the Trustee per the previous sentence or otherwise) or if a
previously filed Form 10-D needs to be amended, the Trustee will follow the
procedures set forth in this Agreement. After filing with the Commission, the
Trustee will make available on its internet website a final executed copy of
each Form 10-D. The Trustee will have no liability with respect to any failure
to properly prepare, execute or file such Form 10-D resulting from the Trustee's
inability or failure to obtain or receive any information needed to prepare,
arrange for execution or file such Form 10-D on a timely basis.

     Prior to March 30, 2008 (and, if applicable, prior to the ninetieth (90th)
calendar day after the end of the fiscal year for the Issuing Entity), the
Trustee shall, on behalf of the Issuing Entity and in accordance with industry
standards, prepare and file with the Commission via EDGAR a Form 10 -K with
respect to the Issuing Entity. Such Form 10-K shall include the following items,
in each case to the extent they have been delivered to the Trustee within the
applicable time frames set forth in this Agreement, (i) an annual compliance
statement for the Servicer and each Subservicer, as described in Section 3.17 of
the Agreement, (ii)(A) the annual reports on Assessment of Compliance with
Servicing Criteria for each Servicer, Subservicer and Subcontractor (unless the
Depositor has determined that such compliance statement is not required by
Regulation AB), as described in Section 3.18 of the Agreement, and (B) if any
Reporting Servicer's report on Assessment of Compliance with Servicing Criteria
described in Section 3.18 identifies any material instance of noncompliance,
disclosure identifying such instance of noncompliance, or if any report on
Assessment of Compliance with Servicing Criteria described in Section 3.18 of
the Agreement is not included as an exhibit to such Form 10-K, disclosure that
such report is not included and an explanation why such report is not included,
(iii)(A) the registered public accounting firm attestation report for the
Servicer and each Subservicer, as described in Section 3.18 of the Agreement,
and (B) if any registered public accounting firm attestation report described in
the Section 3.18 of the Agreement identifies any material instance of
noncompliance, disclosure identifying such instance of noncompliance, or if any
such registered public accounting firm attestation report is not included as an
exhibit to such Form 10-K, disclosure that such report is not included and an
explanation why such report is not included, and (iv) a Sarbanes-Oxley
Certification in the form attached hereto as Exhibit T, executed by the senior
officer in charge of securitizations of the Servicer. Any disclosure or
information in addition to (i) through (iv) above that is required to be
included on Form 10-K ("Additional Form 10-K Disclosure") shall be determined
and prepared by and at the direction of the Depositor pursuant to the following
paragraph and the Trustee will have no duty or liability for any

                                      -98-

<PAGE>

failure hereunder to determine or prepare any Additional Form 10-K Disclosure,
except as set forth in the next paragraph.

     As set forth in Schedule Z hereto, no later than March 12 of each year that
the Issuing Entity is subject to the Exchange Act reporting requirements,
commencing in 2008, (i) certain parties to the transaction shall be required to
provide to the Depositor and the Servicer, to the extent known, any Additional
Form 10-K Disclosure, if applicable, and (ii) the Depositor shall, to the extent
it deems necessary, forward to the Trustee in EDGAR-compatible form, or in such
other form as otherwise agreed upon by the Trustee and the Depositor, the form
and substance of the Additional Form 10-K Disclosure by March 15. The Depositor
will be responsible for any reasonable fees and expenses incurred by the Trustee
in connection with including any Additional Form 10-K Disclosure on Form 10-K
pursuant to this paragraph.

     After preparing the Form 10-K, the Trustee shall forward electronically a
draft copy of the Form 10-K to the Depositor and the Servicer for review. Upon
the request of the Servicer, the Depositor shall confirm that it has reviewed
the Form 10-K, that it has been properly prepared and that the Servicer may rely
on the accuracy thereof (other than with respect to any portion of the Form 10-K
or any exhibit thereto provided by the Servicer (other than any portion thereof
with respect to which the Servicer has relied on the Trustee)). No later than
5:00 p.m. EST on the 3rd Business Day following receipt of a final copy of the
Form 10-K and if requested, the above-described confirmation from the Depositor,
a senior officer of the Servicer shall sign the Form 10-K and return an
electronic or fax copy of such signed Form 10-K (with an original executed hard
copy to follow by overnight mail) to the Trustee and the Trustee shall file such
Form 10-K by March 30th. If a Form 10-K cannot be filed on time or if a
previously filed Form 10-K needs to be amended, the Trustee will follow the
procedures set forth in the Agreement. After filing with the Commission, the
Trustee will, pursuant to the Agreement, make available on its internet website
a final executed copy of each Form 10-K. The Trustee shall have no liability
with respect to any failure to properly prepare, execute or file such Form 10-K
resulting from the Trustee's inability or failure to obtain or receive any
information needed to prepare, arrange for execution or file such Form 10-K on a
timely basis.

     Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") which shall be in the form attached hereto as Exhibit T. The
Servicer will cause its senior officer in charge of securitization to execute
the Sarbanes-Oxley Certification required pursuant to Rule 13a -14 under the
Securities Exchange Act of 1934, as amended, and to deliver the original
executed Sarbanes-Oxley Certification to the Trustee by March 20 of each year in
which the Issuing Entity is subject to the reporting requirements of the
Exchange Act. In connection therewith, each of the Trustee, the Servicer and
each Subservicer and Subcontractor engaged by such party shall sign a
certification (in the form attached hereto as Exhibit K and Exhibit L,
respectively) for the benefit of the Servicer and its officers, directors and
Affiliates regarding certain aspects of the Sarbanes-Oxley Certification. To the
extent any information or exhibits required to be included in the Form 10-K are
not timely received by the Trustee prior to March 30, the Trustee shall, on
behalf of the Issuing Entity, file a Form 12B-25 and one or more amended Form
10-Ks, to the extent such amendments are accepted pursuant to the Exchange Act,
to include such missing information or exhibits promptly after receipt thereof
by the Trustee.

     On or before January 30, 2008, the Trustee shall, if legally permissible
under applicable regulations and interpretations of the Commission, on behalf of
the Issuing Entity and in accordance with industry standards, file with the
Commission via EDGAR a Form 15 Suspension Notification with respect to the
Issuing Entity, if applicable.

                                      -99-

<PAGE>

     The Servicer agrees to furnish to the Trustee promptly, from time to time
upon request, such further information, reports, and financial statements within
its control related to this Agreement and the Mortgage Loans as is reasonably
necessary to prepare and file all necessary reports with the Commission. The
Trustee shall have no responsibility to file any items with the Commission other
than those specified in this section and the Servicer shall execute any and all
Form 8-Ks, Form 10-Ds and Form 10-Ks required hereunder.

     If the Commission issues additional interpretative guidance or promulgates
additional rules or regulations with respect to Regulation AB or otherwise, or
if other changes in applicable law occur, that would require the reporting
arrangements, or the allocation of responsibilities with respect thereto,
described in this Section 3.20, to be conducted differently than as described,
the Depositor, the Servicer, and the Trustee will reasonably cooperate to amend
the provisions of this Section 3.20 in order to comply with such amended
reporting requirements and such amendment of this Section 3.20. Any such
amendment shall be made in accordance with Section 10.01 without the consent of
the Certificateholders and may result in a change in the reports filed by the
Trustee on behalf of the Issuing Entity under the Exchange Act. Notwithstanding
the foregoing, the Depositor, the Servicer and the Trustee shall not be
obligated to enter into any amendment pursuant to this Section 3.20 that
adversely affects its obligations and immunities under this Agreement.

     The Depositor, the Servicer and the Trustee agree to use their good faith
efforts to cooperate in complying with the requirements of this Section 3.20.

     SECTION 3.21. Indemnification by Trustee

     The Trustee shall indemnify and hold harmless the Depositor, the Servicer
and their respective officers, directors, agents and Affiliates from and against
any losses, damages, penalties, fines, forfeitures, reasonable legal fees and
related costs, judgments and other costs and expenses arising out of or based
upon a breach by the Trustee or any of its officers, directors, agents or
Affiliates of its obligations under Sections 3.18 and 3.20, any material
misstatement or omission in any documents prepared thereunder (to the extent the
Trustee is responsible for providing information or calculating amounts included
in such information), the failure of the Trustee to deliver when required any
Assessment of Compliance or Accountant's Attestation required of it pursuant to
Section 3.18, or any material misstatement or omission contained in any
Assessment of Compliance or Accountant's Attestation provided on its behalf
pursuant to Section 3.18, or the negligence, bad faith or willful misconduct of
the Trustee in connection therewith. If the indemnification provided for herein
is unavailable or insufficient to hold harmless the indemnified parties, then
the Trustee agrees that it shall contribute to the amount paid or payable by the
indemnified parties as a result of the losses, claims, damages or liabilities of
the indemnified parties in such proportion as is appropriate to reflect the
relative fault of the Trustee on the one hand and of the indemnified parties on
the other.

     SECTION 3.22. Indemnification by Servicer

     The Servicer shall indemnify and hold harmless the Trustee and the
Depositor and their respective officers, directors, agents and Affiliates from
and against any losses, damages, penalties, fines, forfeitures, reasonable legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach by the Servicer or any of its officers, directors, agents or
Affiliates of its obligations under Sections 3.17, 3.18 and 3.20, any material
misstatement or omission in any documents prepared thereunder (to the extent the
Servicer is responsible for providing information or calculating amounts
included in such information), the failure of such Servicer or any related
Sub-Servicer or Subcontractor to deliver or cause to be delivered when required
any Assessment of Compliance or

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<PAGE>

Accountant's Attestation required of it pursuant to Section 3.18 or Annual
Statement of Compliance required pursuant to Section 3.17, as applicable, or any
material misstatement or omission contained in any Assessment of Compliance,
Accountant's Attestation or Annual Statement as to Compliance provided on its
behalf pursuant to Section 3.18 or 3.17, as applicable, or the negligence, bad
faith or willful misconduct of the Servicer in connection therewith. If the
indemnification provided for herein is unavailable or insufficient to hold
harmless the indemnified parties, then the Servicer agrees that it shall
contribute to the amount paid or payable by the indemnified parties as a result
of the losses, claims, damages or liabilities of the indemnified parties in such
proportion as is appropriate to reflect the relative fault of the Servicer on
the one hand and the indemnified parties on the other.

     Notwithstanding the foregoing, the Servicer shall be entitled to rely
conclusively on the accuracy of the information or data provided to the Servicer
in the respective Assessment of Compliance regarding the Servicing Criteria
applicable to the Trustee under Sections 3.18(e) and 3.18(f) or the Depositor
under Sections 3.18(g) and 3.18(h) in connection with the Servicer's document
preparation under Sections 3.17, 3.18 and 3.20, and the Servicer shall be
entitled to rely conclusively upon and shall have no liability for any errors in
such information.

     SECTION 3.23. Prepayment Charge Reporting Requirements

     Promptly after each Distribution Date, the Servicer shall provide to the
Depositor and the Trustee the following information with regard to each Mortgage
Loan that has prepaid during the related Prepayment Period:

          (i)  loan number;

          (ii) current Mortgage Rate;

          (iii) current principal balance;

          (iv) original principal balance;

          (v)  Prepayment Charge amount due; and

          (vi) Prepayment Charge amount collected.

     SECTION 3.24. Information to the Trustee

     Two Business Days after the 15th day of each month, but not later than the
18th day of each month, the Servicer shall furnish to the Trustee in electronic
format (1) the Remittance Report pursuant to Section 4.04(j) and (ii) a
delinquency report in the form attached hereto as Exhibit V or in such other
form or forms as the Trustee and the Servicer may from time to time agree for
the period ending on the last Business Day of the preceding month (and with
respect to prepayments in full, for the period ending on the 14th day of the
month in which such report is to be furnished); provided, however, that in the
event the 18th day is not a Business Day, the aforementioned reports shall be
furnished by the Servicer to the Trustee on the next Business Day.

     SECTION 3.25. Indemnification

     The Servicer shall indemnify the Sponsor, the Issuing Entity, the Trustee
(in its individual capacity and in its capacity as trustee), the Depositor and
their officers, directors, employees and agents and hold each of them harmless
against any and all claims, losses, damages, penalties, fines, forfeitures,

                                     -101-

<PAGE>

reasonable and necessary legal fees and related costs, judgments, and any other
costs, fees and expenses that any of such parties may sustain in any way related
to the failure of the Servicer to perform its duties and service the Mortgage
Loans in compliance with the terms of this Agreement by reason of negligence,
willful misfeasance or bad faith in the performance of its duties or by reason
of reckless disregard of obligations and duties hereunder. The Servicer
immediately shall notify the Sponsor, the Trustee and the Depositor or any other
relevant party if a claim is made by a third party with respect to such party
and this Agreement or the Mortgage Loans and, if subject to this indemnification
obligation, assume (with the prior written consent of the indemnified party,
which consent shall not be unreasonably withheld or delayed) the defense of any
such claim and pay all expenses in connection therewith, including counsel fees,
and promptly pay, discharge and satisfy any judgment or decree which may be
entered against it or any of such parties in respect of such claim. The Servicer
shall follow any reasonable written instructions received from the Trustee in
connection with such claim, it being understood that the Trustee shall have no
duty to monitor or give instructions with respect to such claims, and the
Servicer will not have any liability for following such instructions. The
Servicer shall provide the Depositor and the Trustee with a written report of
all expenses and advances incurred by the Servicer pursuant to this Section
3.25, and the Servicer shall promptly reimburse itself from the assets of the
Trust Fund in the Collection Account for all amounts advanced by it pursuant to
the preceding sentence except when the claim in any way relates to the gross
negligence, bad faith or willful misconduct of the Servicer. The provisions of
this paragraph shall survive the termination of this Agreement and the payment
of the outstanding Certificates.

     SECTION 3.26. Solicitation

     The Servicer may solicit or refer to a mortgage originator, who may or may
not be an Affiliate of the Depositor or the Servicer, any Mortgagor for
refinancing or otherwise take action to encourage refinancing.

     SECTION 3.27. High Cost Mortgage Loans

     In the event that the Servicer reasonably determines that a Mortgage Loan
may be a "high cost mortgage loan", "high cost home", "covered", "high cost",
"high risk home", "predatory" or similarly classified loan under any applicable
state, federal or local law, the Servicer may notify the Depositor, the Sponsor
and the Trustee thereof; the Servicer may terminate its servicing thereof; and
such determination shall be deemed to materially and adversely affect the
interests of the Certificateholders in such Mortgage Loan and the Sponsor will
repurchase the Mortgage Loan within a 30 day period from the date of the notice
in the manner described in Section 2.05.

     SECTION 3.28. Special Servicing Agreements

     The Servicer may enter into a special servicing advisory agreement with (i)
a holder of (a) the Class R Certificate, (b) the Class C Certificate, (c) one or
more other Class of subordinated certificates issued by the Issuing Entity
and/or (d) a NIM Note and/or (ii) an advisor designated by any of the foregoing.
Pursuant to such agreement, the Servicer may provide such holder or advisor, in
its capacity as special servicing advisor, with loan-level information with
respect to the Mortgage Loans, and such person may advise the Servicer with
respect to efforts to maximize recoveries with regard to the Mortgage Loans,
including, without limitation, the commencement of foreclosure proceedings or
other actions.

     SECTION 3.29. Subordination of Liens

     In connection with any governmental program under which a Mortgagor may
obtain a benefit in the event the related Mortgaged Property is subject to a
disaster provided that the Mortgagor files a

                                     -102-

<PAGE>

covenant or other lien against the Mortgaged Property and is required to obtain
the subordination thereto of the Mortgage, the Servicer may cause such
subordination to be executed and filed provided that either (i) the related
Mortgage Loan is in default or default with respect to such Mortgage Loan is
imminent or (ii) such subordination and participation in such governmental
program will not result in a change in payment expectations with respect to such
Mortgage Loan. For purposes of the preceding sentence, a change in payment
expectations occurs if, as a result of such subordination and participation in
such governmental program, (1) there is a substantial enhancement of the
Mortgagor's capacity to meet the payment obligations under the Mortgage Loan and
that capacity was primarily speculative prior to such subordination and
participation in such governmental program and is adequate after such
subordination and participation in such governmental program or (2) there is a
substantial impairment of the Mortgagor's capacity to meet the payment
obligations under the Mortgage Loan and that capacity was adequate prior to such
subordination and participation in such governmental program and is primarily
speculative after such subordination and participation in such governmental
program. The preceding sentence and clause (ii) of the second preceding sentence
are intended to comply with Treasury Regulations Section 1.1001-3(e)(4) and
shall be interpreted in accordance therewith.

                                   ARTICLE IV

                                  DISTRIBUTIONS

     SECTION 4.01. Advances

          (a) Subject to the conditions of this Article IV, the Servicer, as
required below, shall make an Advance and deposit such Advance in the Collection
Account. The Servicer shall use commercially reasonable efforts to remit each
such Advance no later than 2:30 p.m. Eastern Standard Time, but in any case no
later than 4:00 p.m. Eastern Standard Time, on the Servicer Remittance Date in
immediately available funds. The Servicer shall be obligated to make any such
Advance only to the extent that such advance would not be a Non-Recoverable
Advance. If the Servicer shall have determined that it has made a
Non-Recoverable Advance or that a proposed Advance or a lesser portion of such
Advance would constitute a Non-Recoverable Advance, the Servicer shall deliver
(i) to the Trustee for the benefit of the Certificateholders, funds constituting
the remaining portion of such Advance, if applicable, and (ii) to the Depositor,
each Rating Agency, the NIMs Insurer and the Trustee an Officer's Certificate
setting forth the basis for such determination. The Servicer may, in its sole
discretion, make an Advance with respect to the principal portion of the final
Scheduled Payment on a Balloon Loan, but the Servicer is under no obligation to
do so; provided, however, that nothing in this sentence shall affect the
Servicer's obligation under this Section 4.01 to Advance the interest portion of
the final Scheduled Payment with respect to a Balloon Loan as if such Balloon
Loan were a fully amortizing Mortgage Loan. If a Mortgagor does not pay its
final Scheduled Payment on a Balloon Loan when due, the Servicer shall Advance
(unless it determines in its good faith judgment that such amounts would
constitute a Non-Recoverable Advance) a full month of interest (net of the
Servicing Fee) on the Stated Principal Balance thereof each month until its
Stated Principal Balance is reduced to zero.

     In lieu of making all or a portion of such Advance from its own funds, the
Servicer may (i) cause to be made an appropriate entry in its records relating
to the Collection Account that any amount held for future distribution has been
used by the Servicer in discharge of its obligation to make any such Advance and
(ii) transfer such funds from the Collection Account to the Certificate Account.
In addition, the Servicer shall have the right to reimburse itself for any such
Advance from amounts held from time to time in the Collection Account to the
extent such amounts are not then required to be distributed. Any funds so
applied and transferred pursuant to the previous two sentences shall be replaced
by the Servicer

                                     -103-

<PAGE>

by deposit in the Collection Account no later than the close of business on the
Servicer Remittance Date on which such funds are required to be distributed
pursuant to this Agreement. The Servicer shall be entitled to be reimbursed from
the Collection Account for all Advances of its own funds made pursuant to this
Section as provided in Section 3.08. The obligation to make Advances with
respect to any Mortgage Loan shall continue until the earlier of (i) such
Mortgage Loan is paid in full, (ii) the related Mortgaged Property or related
REO Property has been liquidated or until the purchase or repurchase thereof (or
substitution therefor) from the Issuing Entity pursuant to any applicable
provision of this Agreement, except as otherwise provided in this Section 4.01,
(iii) the Servicer determines in its good faith judgment that such amounts would
constitute a Non-Recoverable Advance as provided in the preceding paragraph or
(iv) the date on which such Mortgage Loan becomes 150 days delinquent as set
forth below.

          (b) Notwithstanding anything in this Agreement to the contrary
(including, but not limited to, Sections 3.01 and 4.01(a) hereof), no Advance or
Servicing Advance shall be required to be made hereunder by the Servicer
(including for the avoidance of doubt, the Trustee as successor servicer) if
such Advance or Servicing Advance would, if made, constitute a Non-Recoverable
Advance or a Non-Recoverable Servicing Advance. The determination by the
Servicer that it has made a Non-Recoverable Advance or a Non-Recoverable
Servicing Advance or that any proposed Advance or Servicing Advance, if made,
would constitute a Non-Recoverable Advance or a Non-Recoverable Servicing
Advance, respectively, shall be evidenced by an Officer's Certificate of the
Servicer delivered to the Depositor and the Trustee. In addition, the Servicer
shall not be required to advance any Relief Act Shortfalls.

          (c) Notwithstanding the foregoing, the Servicer shall not be required
to make any Advances for any Mortgage Loan after such Mortgage Loan becomes 150
days delinquent. The Servicer shall identify such delinquent Mortgage Loans in
the Servicer Statement referenced in Section 3.24. In addition, the Servicer
shall provide the Trustee with an Officer's Certificate listing such delinquent
Mortgage Loans and certifying that such loans are 150 days or more delinquent.

     SECTION 4.02. Reduction of Servicing Compensation in Connection with
Prepayment Interest Shortfalls

     In the event that any Mortgage Loan is the subject of a Prepayment Interest
Shortfall, the Servicer shall, from amounts in respect of the Servicing Fee for
such Distribution Date, deposit into the Collection Account, as a reduction of
the Servicing Fee for such Distribution Date, no later than the Servicer
Remittance Date immediately preceding such Distribution Date, an amount up to
the Prepayment Interest Shortfall; provided that the amount so deposited shall
not exceed the Compensating Interest for such Distribution Date. In case of such
deposit, the Servicer shall not be entitled to any recovery or reimbursement
from the Depositor, the Trustee, the Issuing Entity or the Certificateholders.
With respect to any Distribution Date, to the extent that the Prepayment
Interest Shortfall exceeds Compensating Interest (such excess, a "Non-Supported
Interest Shortfall"), such Non-Supported Interest Shortfall shall reduce the
Current Interest with respect to each Class of Certificates, pro rata based upon
the amount of interest each such Class would otherwise be entitled to receive on
such Distribution Date. Notwithstanding the foregoing, there shall be no
reduction of the Servicing Fee in connection with Prepayment Interest Shortfalls
related to the Relief Act and the Servicer shall not be obligated to pay
Compensating Interest with respect to Prepayment Interest Shortfalls related to
the Relief Act.

     SECTION 4.03. Distributions on the REMIC Interests

     On each Distribution Date, amounts on deposit in the Certificate Account
shall be treated for federal income tax purposes as applied to distributions on
the interests in each of the SWAP REMIC and

                                     -104-

<PAGE>

the Lower Tier REMIC in an amount sufficient to make the distributions on the
respective Certificates on such Distribution Date in accordance with the
provisions of Section 4.04.

     SECTION 4.04. Distributions

          (a) [Reserved].

          (b) On each Distribution Date (or on the related Swap Payment Date,
with respect to payments to the Supplemental Interest Trust), the Trustee shall,
to the extent of funds then available, make the following distributions from
funds then available in the Certificate Account, of an amount equal to the
Interest Funds, in the following order of priority:

          (i) to the Class P Certificates, an amount equal to any Prepayment
     Charges received with respect to the Mortgage Loans and all amounts paid by
     the Servicer, the Sponsor in respect of Prepayment Charges pursuant to this
     Agreement and all amounts received in respect of any indemnification paid
     as a result of a Prepayment Charge being unenforceable in breach of the
     representations and warranties set forth in the Sale Agreement for the
     related Prepayment Period;

          (ii) to the Supplemental Interest Trust, any Net Swap Payments owed to
     the Swap Counterparty;

          (iii) to the Supplemental Interest Trust, any Swap Termination Payment
     owed by the Supplemental Interest Trust to the Swap Counterparty (other
     than any Defaulted Swap Termination Payment);

          (iv) concurrently, to each Class of the Class A Certificates, the
     Current Interest and any Interest Carry Forward Amount with respect to each
     such Class; provided, however, that if Interest Funds are insufficient to
     make a full distribution of the aggregate Current Interest and the
     aggregate Interest Carry Forward Amount to the Class A Certificates,
     Interest Funds will be distributed pro rata among each Class of the Class A
     Certificates based upon the ratio of (x) the Current Interest and Interest
     Carry Forward Amount for each Class of the Class A Certificates to (y) the
     total amount of Current Interest and any Interest Carry Forward Amount for
     the Class A Certificates in the aggregate;

          (v) to the Class M-1 Certificates, the Current Interest for such Class
     and any Interest Carry Forward Amount with respect to such Class;

          (vi) to the Class M-2 Certificates, the Current Interest for such
     Class and any Interest Carry Forward Amount with respect to such Class;

          (vii) to the Class M-3 Certificates, the Current Interest for such
     Class and any Interest Carry Forward Amount with respect to such Class;

          (viii) to the Class M-4 Certificates, the Current Interest for such
     Class and any Interest Carry Forward Amount with respect to such Class;

          (ix) to the Class M-5 Certificates, the Current Interest for such
     Class and any Interest Carry Forward Amount with respect to such Class;

          (x) to the Class M-6 Certificates, the Current Interest for such Class
     and any Interest Carry Forward Amount with respect to such Class;

                                     -105-

<PAGE>

          (xi) to the Class B-1 Certificates, the Current Interest for each such
     Class and any Interest Carry Forward Amount with respect to each such
     Class;

          (xii) to the Class B-2 Certificates, the Current Interest for each
     such Class and any Interest Carry Forward Amount with respect to each such
     Class;

          (xiii) to the Class B-3 Certificates, the Current Interest for each
     such Class and any Interest Carry Forward Amount with respect to each such
     Class; and

          (xiv) any remainder pursuant to Section 4.04(f) hereof.

     On each Distribution Date, subject to the proviso in (iv) above, Interest
Funds received on the Group One Mortgage Loans will be deemed to be distributed
to the Class R and Class A-1 Certificates and Interest Funds received on the
Group Two Mortgage Loans will be deemed to be distributed to the Class A-2
Certificates, in each case, until the related Current Interest and Interest
Carry Forward Amount of each such Class of Certificates for such Distribution
Date has been paid in full. Thereafter, Interest Funds not required for such
distributions are available to be applied to if necessary, to the Class or
Classes of Certificates that are not related to such group of Mortgage Loans.

          (c) [Reserved].

          (d) On each Distribution Date (or on the related Swap Payment Date,
with respect to payments to the Supplemental Interest Trust), the Trustee shall,
to the extent of funds then available, make the following distributions from the
Certificate Account of an amount equal to the Principal Distribution Amount in
the following order of priority, and each such distribution shall be made only
after all distributions pursuant to Section 4.04(b) above shall have been made
until such amount shall have been fully distributed for such Distribution Date:

          (i) to the Supplemental Interest Trust, any Net Swap Payments owed to
     the Swap Counterparty, to the extent not paid pursuant to Section
     4.04(b)(ii);

          (ii) to the Supplemental Interest Trust, any Swap Termination Payment
     owed by the Supplemental Interest Trust to the Swap Counterparty (other
     than any Defaulted Swap Termination Payment), to the extent not paid
     pursuant to Section 4.04(b)(iii);

          (iii) to the Class A Certificates, the Class A Principal Distribution
     Amount shall be distributed as follows:

               (A) the Group One Principal Distribution Amount will be
          distributed as follows: (A) first, to the Class R Certificate, until
          the Certificate Principal Balance of such Class has been reduced to
          zero and (B) second, to the Class A-1 Certificates, until the
          Certificate Principal Balance of such Class has been reduced to zero;

               (B) the Group Two Principal Distribution Amount will be
          distributed as follows: sequentially, to the Class A-2A Certificates
          until the Certificate Principal Balance thereof has been reduced to
          zero, then to the Class A-2B Certificates until the Certificate
          Principal Balance thereof has been reduced to zero; then to the Class
          A-2C Certificates until the Certificate Principal Balance thereof has
          been reduced to zero and then to the Class A-2D Certificates until the
          Certificate Principal Balance thereof has been reduced to zero;
          provided, however, that on and after the Distribution Date on which
          the aggregate Certificate Principal Balance of the Class M, Class B
          and Class C

                                     -106-

<PAGE>

          Certificates has been reduced to zero, any principal distributions
          allocated to the Class A-2A, Class A-2B, Class A-2C and Class A-2D
          Certificates are required to be allocated pro rata, among such
          Classes, based on their respective Certificate Principal Balances,
          until their Certificate Principal Balances have been reduced to zero;

          (iv) sequentially, to the Class M-1 Certificates, the Class M-2
     Certificates and the Class M-3 Certificates, in that order, until the
     Certificate Principal Balance of each such Class has been reduced to zero,
     an amount equal to the Class M-1/M-2/M-3 Principal Distribution Amount;

          (v) to the Class M-4 Certificates, the Class M-4 Principal
     Distribution Amount;

          (vi) to the Class M-5 Certificates, the Class M-5 Principal
     Distribution Amount;

          (vii) to the Class M-6 Certificates, the Class M-6 Principal
     Distribution Amount;

          (viii) to the Class B-1 Certificates, the Class B-1 Principal
     Distribution Amount;

          (ix) to the Class B-2 Certificates, the Class B-2 Principal
     Distribution Amount;

          (x) to the Class B-3 Certificates, the Class B-3 Principal
     Distribution Amount; and

          (xi) any remainder pursuant to Section 4.04(f) hereof.

          (e) [Reserved].

          (f) On each Distribution Date, the Trustee shall, to the extent of
funds then available, make the following distributions up to the following
amounts from the Certificate Account of the remainders pursuant to Section
4.04(b)(xiv) and (d)(xi) hereof and each such distribution shall be made only
after all distributions pursuant to Sections 4.04(b) and (d) above shall have
been made until such remainders shall have been fully distributed for such
Distribution Date:

          (i) to the Class A Certificates, any funds owed, in the same manner
     and in the same order of priority, as set forth in accordance with Section
     4.04(b)(iv), to the extent not paid pursuant to Section 4.04(b)(iv);

          (ii) to the Subordinate Certificates, any amounts due as described in
     the same order of priority as set forth in Section 4.04(b)(v) through
     4.04(b)(xiii) to the extent unpaid from Interest Funds;

          (iii) for distribution as part of the Principal Distribution Amount,
     the Extra Principal Distribution Amount;

          (iv) to the Class M-1 Certificates, any Unpaid Realized Loss Amount
     for such Class;

          (v) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for
     such Class;

          (vi) to the Class M-3 Certificates, any Unpaid Realized Loss Amount
     for such Class;

          (vii) to the Class M-4 Certificates, any Unpaid Realized Loss Amount
     for such Class;

          (viii) to the Class M-5 Certificates, any Unpaid Realized Loss Amount
     for such Class;

                                     -107-

<PAGE>

          (ix) to the Class M-6 Certificates, any Unpaid Realized Loss Amount
     for such Class;

          (x) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for
     such Class;

          (xi) to the Class B-2 Certificates, any Unpaid Realized Loss Amount
     for such Class;

          (xii) to the Class B-3 Certificates, any Unpaid Realized Loss Amount
     for such Class;

          (xiii) to the Class A, Class M and Class B Certificates, on a pro rata
     basis, based upon outstanding Floating Rate Certificate Carryover for each
     such Class, the Floating Rate Certificate Carryover for each such Class;
     and

          (xiv) the remainder pursuant to Section 4.04(g) hereof.

          (g) on each Distribution Date (or on the related Swap Payment Date,
with respect to payments to the Supplemental Interest Trust), the Trustee shall
allocate the remainders pursuant to Section 4.04(f)(xiv) as follows:

          (i) to the Supplemental Interest Trust, any Defaulted Swap Termination
     Payment;

          (ii) to the Class C Certificates in the following order of priority,
     (I) the Class C Current Interest, (II) the Class C Interest Carry Forward
     Amount, (III) as principal on the Class C Certificate until the Certificate
     Principal Balance of the Class C Certificates has been reduced to zero and
     (IV) the Class C Unpaid Realized Loss Amount; and

          (iii) the remainder pursuant to Section 4.04(h) hereof.

          (h) On each Distribution Date, the Trustee shall allocate the
remainder pursuant to Section 4.04(g)(iii) hereof (i) to the Trustee to
reimburse amounts or pay indemnification amounts owing to the Trustee from the
Issuing Entity pursuant to Section 8.06 and (ii) to the Class R Certificate and
such distributions shall be made only after all preceding distributions shall
have been made until such remainder shall have been fully distributed.

          (i) On each Distribution Date, after giving effect to distributions on
such Distribution Date, the Trustee shall allocate the Applied Realized Loss
Amount for the Certificates to reduce the Certificate Principal Balances of the
Class C Certificates and the Subordinate Certificates in the following order of
priority:

          (i) to the Class C Certificates, until the Class C Certificate
     Principal Balance is reduced to zero;

          (ii) to the Class B-3 Certificates until the Class B-3 Certificate
     Principal Balance is reduced to zero;

          (iii) to the Class B-2 Certificates until the Class B-2 Certificate
     Principal Balance is reduced to zero;

                                     -108-

<PAGE>

          (iv) to the Class B-1 Certificates until the Class B-1 Certificate
     Principal Balance is reduced to zero;

          (v) to the Class M-6 Certificates until the Class M-6 Certificate
     Principal Balance is reduced to zero;

          (vi) to the Class M-5 Certificates until the Class M-5 Certificate
     Principal Balance is reduced to zero;

          (vii) to the Class M-4 Certificates until the Class M-4 Certificate
     Principal Balance is reduced to zero;

          (viii) to the Class M-3 Certificates until the Class M-3 Certificate
     Principal Balance is reduced to zero;

          (ix) to the Class M-2 Certificates until the Class M-2 Certificate
     Principal Balance is reduced to zero; and

          (x) to the Class M-1 Certificates until the Class M-1 Certificate
     Principal Balance is reduced to zero.

          (j) Subject to Section 9.02 hereof respecting the final distribution,
on each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the preceding Record Date either by wire transfer
in immediately available funds to the account of such Holder at a bank or other
entity having appropriate facilities therefor, or if such Holder has so notified
the Trustee at least five (5) Business Days prior to the related Record Date or
has not provided wiring instructions to the Trustee, by check mailed by first
class mail to such Certificateholder at the address of such holder appearing in
the Certificate Register. Notwithstanding the foregoing, but subject to Section
9.02 hereof respecting the final distribution, distributions with respect to
Certificates registered in the name of a Depository shall be made to such
Depository in immediately available funds.

     In accordance with this Agreement, the Servicer shall prepare and deliver
an electronic report (the "Remittance Report") to the Trustee (or by such other
means as the Servicer and the Trustee may agree from time to time) containing
such data and information as to permit the Trustee to prepare the Monthly
Statement to Certificateholders and make the required distributions for the
related Distribution Date. The Trustee will prepare the Monthly Report based
solely upon the information received from the Servicer.

     The Trustee shall promptly notify the NIMs Insurer of any proceeding or the
institution of any action, of which a Responsible Officer of the Trustee has
actual knowledge, seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership or similar law (a "Preference
Claim") of any distribution made with respect to the Class C Certificates or the
Class P Certificates. Each Holder of the Class C Certificates or the Class P
Certificates, by its purchase of such Certificates and the Trustee hereby agree
that the NIMs Insurer may at any time during the continuation of any proceeding
relating to a Preference Claim direct all matters relating to such Preference
Claim, including, without limitation, (i) the direction of any appeal of any
order relating to such Preference Claim and (ii) the posting of any surety,
supersedes or performance bond pending any such appeal. In addition and without
limitation of the foregoing, the NIMs Insurer shall be subrogated to the rights
of the Trustee and each Holder of the Class C Certificates and the Class P
Certificates in the conduct of any such Preference Claim, including, without
limitation, all rights of any party to an adversary proceeding action with
respect to any court order issued in connection with any such Preference Claim;
provided, however, that the NIMs Insurer will not have any rights with respect
to any Preference Claim set forth in this paragraph

                                     -109-

<PAGE>

unless the indenture trustee with respect to the NIM Notes or the holder of any
NIMs Notes has been required to relinquish a distribution made on the Class C
Certificates, the Class P Certificates or the NIM Notes, as applicable, and the
NIMs Insurer made a payment in respect of such relinquished amount.

          (k) The Trustee is hereby directed by the Depositor to execute the
Corridor Contracts on behalf of the Issuing Entity in the form presented to it
by the Depositor and shall have no responsibility for the contents of such
Corridor Contracts, including, without limitation, the representations and
warranties contained therein. Any funds payable by the Trustee under the
Corridor Contracts at closing shall be paid by the Depositor. Notwithstanding
anything to the contrary contained herein or in any Corridor Contract, except as
set forth in Section 2 of each Corridor Contract, the Trust shall not be
required to make any payments to the counterparty under any Corridor Contract.
Any payments received under the terms of the related Corridor Contract will be
available to pay the holders of the related Class A-1, Class A-2, Class M and
Class B Certificates up to the amount of any Floating Rate Certificate
Carryovers remaining after all other distributions required under this Section
4.04 are made on such Distribution Date, other than Floating Rate Certificate
Carryovers attributable to the fact that Applied Realized Loss Amounts are not
allocated to the Class A Certificates. Any amounts (excluding collateral posted
pursuant to a credit support annex) received under the terms of any Corridor
Contract on a Distribution Date that are not used to pay such Floating Rate
Certificate Carryovers will be distributed to the holders of the Class C
Certificates. Payments in respect of such Floating Rate Certificate Carryovers
from proceeds of a Corridor Contract shall be paid to the related Classes of
Class A-1, Class A-2, Class M and Class B Certificates, pro rata based upon such
Floating Rate Certificate Carryovers for each such Class of Class A-1, Class
A-2, Class M and Class B Certificates. Amounts received on the Class A-1
Corridor Contract will only be available to make payments on the Class A-1
Certificates, amounts received on the Class A-2 Corridor Contract will only be
available to make payments on the Class A-2 Certificates, amounts received on
the Subordinate Certificate Corridor Contract will only be available to make
payments on the Subordinate Certificates.

          (i) The Trustee shall establish and maintain, for the benefit of the
     Issuing Entity and the Certificateholders, the Corridor Contract Account.
     On or prior to the related Corridor Contract Termination Date, amounts, if
     any, received by the Trustee for the benefit of the Issuing Entity in
     respect of the related Corridor Contract shall be deposited by the Trustee
     into the Corridor Contract Account and will be used to pay Floating Rate
     Certificate Carryovers on the related Class A-1, Class A-2, Class M and
     Class B Certificates to the extent provided in the immediately preceding
     paragraph. With respect to any Distribution Date on or prior to the related
     Corridor Contract Termination Date, the amount, if any, payable by the Cap
     Contract Counterparty under the related Corridor Contract will equal the
     product of (i) the excess of (x) One-Month LIBOR (as determined by the Cap
     Contract Counterparty and subject to a cap equal to the rate with respect
     to such Distribution Date as shown under the heading "1ML Upper Collar" in
     the schedule to the related Corridor Contract), over (y) the rate with
     respect to such Distribution Date as shown under the heading "1ML Strike
     Lower Collar" in the schedule to the related Corridor Contract, (ii) an
     amount equal to the lesser of (x) the related Corridor Contract Notional
     Balance for such Distribution Date and (y) the outstanding Certificate
     Principal Balance of the related Classes of Certificates and (iii) the
     number of days in such Accrual Period, divided by 360. If a payment is made
     to the Issuing Entity under a Corridor Contract and the Trustee is required
     to distribute excess amounts to the holders of the Class C Certificates as
     described above, information regarding such distribution will be included
     in the monthly statement made available on the Trustee's website pursuant
     to Section 4.05(b) hereof.

          (ii) Amounts on deposit in the Corridor Contract Account will remain
     uninvested pending distribution to Certificateholders.

                                     -110-

<PAGE>

          (iii) Each Corridor Contract is scheduled to remain in effect until
     the related Corridor Contract Termination Date and will be subject to early
     termination only in limited circumstances. Such circumstances include
     certain insolvency or bankruptcy events in relation to the Cap Contract
     Counterparty to make a payment due under the related Corridor Contract, the
     termination of the Trust Fund and the related Corridor Contract becoming
     illegal or subject to certain kinds of taxation and certain other Events of
     Default and Termination Events (as further detailed in the related Corridor
     Contract).

          (iv) On the Closing Date, the Cap Contract Counterparty and the
     Trustee (which is hereby authorized and directed to enter into such credit
     support annex) will enter into a credit support annex in relation to the
     Corridor Contracts, which annex is intended to protect the Issuing Entity
     from certain ratings downgrades that might hinder the ability of the Cap
     Contract Counterparty to continue its obligations under the Corridor
     Contracts.

          Pursuant to and in accordance with the terms and provisions of the
     Corridor Contracts, the Cap Contract Counterparty may be required to post
     additional collateral in connection with its obligations under the Corridor
     Contracts. In connection with the foregoing, the Trustee shall establish a
     Corridor Posted Collateral Account on the Closing Date.

          To the extent that the Cap Contract Counterparty remits any Posted
     Collateral to the Trustee under the Corridor Contracts, the Trustee shall,
     upon receipt of the Posted Collateral, deposit the Posted Collateral into
     the Corridor Posted Collateral Account and shall hold, release and disburse
     such collateral in accordance with the terms and provisions of the Corridor
     Contracts. Where a termination event occurs with respect to the Cap
     Contract Counterparty under the Corridor Contracts, or where the Cap
     Contract Counterparty fulfills certain obligations to the Issuing Entity
     such as finding a replacement cap contract counterparty or a guarantor that
     meets the criteria described in the Corridor Contracts, the Trustee shall
     make payments from the Corridor Posted Collateral Account in accordance
     with the provisions of the Corridor Contract. Amounts held in the Corridor
     Posted Collateral Account will not be part of the Trust Fund and will not
     be available for distribution to any Certificateholders, except to the
     extent distributed to the Corridor Contract Account pursuant to the
     Corridor Contracts. Any funds held in the Corridor Posted Collateral
     Account shall be invested by the Trustee in Permitted Investments in
     accordance with the instructions of the Cap Contract Counterparty. Absent
     receipt by the Trustee of written instructions from the Cap Contract
     Counterparty, such funds shall remain uninvested. Any earnings shall be
     remitted to the Cap Contract Counterparty in accordance with the Corridor
     Contracts.

          (l) On the Closing Date, the Supplemental Interest Trust shall be
established and maintained pursuant to this Agreement, as a separate trust, the
corpus of which shall be held by the Supplemental Interest Trust Trustee for the
benefit of the holders of the Certificates as a segregated subtrust of the Trust
Fund. The Supplemental Interest Trust shall be an Eligible Account, and funds
deposited therein shall be held separate and apart from, and shall not be
commingled with, any other moneys, including, without limitation, other moneys
of the Trustee or the Supplemental Interest Trust Trustee held pursuant to this
Agreement. In no event shall any funds deposited in the Supplemental Interest
Trust be credited to or made available to any other account of the Trust Fund.
The records of the Trustee shall at all times reflect that the Supplemental
Interest Trust is a subtrust of the Trust Fund, the assets of which are
segregated from other assets of the Trust Fund.

                                     -111-

<PAGE>

     The Supplemental Interest Trust Trustee is hereby directed by the Depositor
to execute the Swap Agreement and the Cap Contract on behalf of the Supplemental
Interest Trust in the forms presented to it by the Depositor and shall have no
responsibility for the contents of such Swap Agreement and Cap Contract,
including, without limitation, the representations and warranties contained
therein. The Supplemental Interest Trust Trustee shall have all of the rights
and protections of the Trustee hereunder.

     The Supplemental Interest Trust Trustee shall use reasonable efforts to
enforce all of the rights of the Supplemental Interest Trust and exercise any
remedies under the Swap Agreement or Cap Contract and, in the event the Swap
Agreement is terminated as a result of the designation by either party thereto
of an Early Termination Date (as defined in the Swap Agreement), find a
replacement counterparty to enter into a replacement swap agreement utilizing
the amounts of the net Swap Termination Payments received.

     For each Distribution Date, through and including the Distribution Date in
February 2011, the Supplemental Interest Trust Trustee shall, based on the
Significance Estimate (which shall be provided to the Trustee by the Depositor
within five (5) Business Days prior to the Distribution Date), calculate the
Significance Percentage of each of the Swap Agreement and the Cap Contract. If
on any such Distribution Date, the Significance Percentage is equal to or
greater than 9%, the Supplemental Interest Trust Trustee shall promptly notify
the Depositor and the Depositor, on behalf of the Supplemental Interest Trust
Trustee, shall obtain the financial information required to be delivered by the
Swap Counterparty or the Cap Contract Counterparty, as applicable, pursuant to
the terms of the Swap Agreement or the Cap Contract, respectively. If, on any
succeeding Distribution Date through and including the Distribution Date in
February 2011, the Significance Percentage is equal to or greater than 10%, the
Supplemental Interest Trust Trustee shall promptly notify the Depositor and the
Depositor shall, within five (5) Business Days of such Distribution Date,
deliver to the Supplemental Interest Trust Trustee the financial information
provided to it by the Swap Counterparty or Cap Contract Counterparty, as
applicable, in Edgar-compatible format for inclusion in the Form 10-D relating
to such Distribution Date.

     Any Swap Termination Payment received by the Supplemental Interest Trust
Trustee from the Swap Counterparty shall be deposited in the Swap Account and
shall be used to make any upfront payment required under a replacement swap
agreement and any upfront payment received from the counterparty to a
replacement swap agreement shall be used to pay any Swap Termination Payment
owed to the Swap Counterparty.

     Notwithstanding anything contained herein, in the event that a replacement
swap agreement cannot be obtained within thirty (30) days after receipt by the
Supplemental Interest Trust Trustee of the Swap Termination Payment paid by the
terminated Swap Counterparty, the Supplemental Interest Trust Trustee shall
deposit such Swap Termination Payment into a separate, segregated non-interest
bearing subtrust established by the Supplemental Interest Trust Trustee and the
Supplemental Interest Trust Trustee shall, on each Distribution Date following
receipt of such Swap Termination Payment, withdraw from such subtrust, an amount
equal to the Net Swap Payment, if any, that would have been paid to the
Supplemental Interest Trust by the original Swap Counterparty (computed in
accordance with the original Swap Agreement) and distribute such amount in
accordance with Section 4.04(l)(i)-(viii) of this Agreement. Any such subtrust
shall not be an asset of any REMIC. Any amounts remaining in such subtrust shall
be distributed to the holders of the Class C Certificates on the Distribution
Date following the earlier of (i) the termination of the Trust Fund pursuant to
Section 9.01 and (ii) February 25, 2011.

     On any Distribution Date (or in the case of any Net Swap Payments, on the
related Swap Payment Date), any Swap Termination Payments or Net Swap Payments
owed to the Swap Counterparty will be paid out of and any Net Swap Payments or
Swap Termination Payments received from the Swap

                                     -112-

<PAGE>

Counterparty will be deposited into the Swap Account and any Cap Payments
received from the Cap Contract Counterparty will be deposited into the Cap
Contract Account (each account within the Supplemental Interest Trust). The
Supplemental Interest Trust will not be an asset of any REMIC. Funds in the Swap
Account and the Cap Contract Account within the Supplemental Interest Trust
shall be distributed in the following order of priority by the Trustee
(provided, however, amounts relarting to Cap Payments on deposit in the Cap
Contract Account will not be used to make any portion of the payments in
paragraphs (i), (ii) and (ix) below):

          (i) to the Swap Counterparty, all Net Swap Payments, if any, owed to
     the Swap Counterparty for such Distribution Date;

          (ii) to the Swap Counterparty, any Swap Termination Payment, other
     than a Defaulted Swap Termination Payment, if any, owed to the Swap
     Counterparty;

          (iii) to each Class of the Class A Certificates, on a pro rata basis,
     any Current Interest and any Interest Carry Forward Amount with respect to
     such Class to the extent unpaid from Interest Funds and Principal Funds;

          (iv) sequentially, to the Class M-1 Certificates, the Class M-2
     Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the
     Class M-5 Certificates, the Class M-6 Certificates, the Class B-1
     Certificates, the Class B-2 Certificates and the Class B-3 Certificates, in
     that order, any Current Interest for such Class to the extent unpaid from
     Interest Funds and Principal Funds;

          (v) sequentially, to the Class M-1 Certificates, the Class M-2
     Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the
     Class M-5 Certificates, the Class M-6 Certificates, the Class B-1
     Certificates, the Class B-2 Certificates and the Class B-3 Certificates, in
     that order, any Interest Carry Forward with respect to such Class to the
     extent unpaid from Interest Funds and Principal Funds;

          (vi) to the Class A, Class R, Class M and Class B Certificates, to pay
     principal as described and in the same manner and order of priority as set
     forth in Sections 4.04(d)(iii) through 4.04(d)(x) in order to restore
     levels of the Overcollateralization Amount, and after giving effect to
     distributions from the Principal Distribution Amount for each such Class;

          (vii) sequentially, to the Class M-1 Certificates, the Class M-2
     Certificates, the Class M-3 Certificates, the Class M-4 Certificates, the
     Class M-5 Certificates, the Class M-6 Certificates, the Class B-1
     Certificates, the Class B-2 Certificates, the Class B-3 Certificates, in
     that order, any Unpaid Realized Loss Amount for such Class to the extent
     unpaid from Interest Funds and Principal Funds;

          (viii) to the Class A, Class R, Class M and Class B Certificates, on a
     pro rata basis, any Floating Rate Certificate Carryover to the extent not
     paid based on the amount of such unpaid Floating Rate Certificate
     Carryover;

          (ix) to the Swap Counterparty, any Defaulted Swap Termination Payment
     owed to the Swap Counterparty to the extent not already paid; and

          (x) to the Class C Certificates any remaining amount.

                                     -113-

<PAGE>

     Notwithstanding the foregoing, however, after giving effect to proposed
distributions on any Distribution Date, the sum of the cumulative amounts
distributed pursuant to clause (vi) above and the cumulative amounts distributed
pursuant to clause (vii) above shall be limited to the aggregate amount of
cumulative Realized Losses incurred from the Cut-off Date through the last day
of the related Prepayment Period.

     Upon termination of the Trust Fund, any amounts remaining in the Swap
Account within the Supplemental Interest Trust shall be distributed pursuant to
the priorities set forth in this Section 4.04(l).

     With respect to the failure of the Swap Counterparty to perform any of its
obligations under the Swap Agreement, the breach by the Swap Counterparty of any
of its representations and warranties made pursuant to the Swap Agreement, or
the termination of the Swap Agreement, the Supplemental Interest Trust Trustee
shall send any notices and make any demands required hereunder (to the extent
that a Responsible Officer of the Trustee has actual knowledge or written notice
of any such failure, breach or termination).

     On the Closing Date, the Swap Counterparty and the Supplemental Interest
Trust Trustee (which is hereby authorized and directed to enter into such credit
support annex) will enter into a credit support annex in relation to the Swap
Agreement, which annex is intended to protect the Supplemental Interest Trust
from certain ratings downgrades that might hinder the ability of the Swap
Counterparty to continue its obligations under the Swap Agreement.

     Pursuant to and in accordance with the terms and provisions of the Swap
Agreement, the Swap Counterparty may be required to post additional collateral
in connection with its obligations under the Swap Agreement. In connection with
the foregoing, on the Closing Date, the Supplemental Interest Trust Trustee
shall establish and maintain a Swap Posted Collateral Account.

     To the extent that the Swap Counterparty remits any Posted Collateral to
the Supplemental Interest Trust Trustee under the Swap Agreement, the
Supplemental Interest Trust Trustee shall, upon receipt of the Posted
Collateral, deposit the Posted Collateral into the Swap Posted Collateral
Account and shall hold, release and disburse such collateral in accordance with
the terms and provisions of the Swap Agreement. Where a termination event occurs
with respect to the Swap Counterparty under the Swap Agreement, or where the
Swap Counterparty fulfills certain obligations to the Supplemental Interest
Trust such as finding a replacement swap counterparty or a guarantor that meets
established criteria of the Rating Agencies, the Supplemental Interest Trust
Trustee shall make payments from the Swap Posted Collateral Account in
accordance with the provisions of the Swap Agreement. Amounts held in the Swap
Posted Collateral Account will not be part of the Trust Fund and will not be
available for distribution to any Certificateholders, except to the extent
distributed to the Swap Account pursuant to the Swap Agreement. Any funds held
in the Swap Posted Collateral Account shall be invested by the Trustee in
Permitted Investments in accordance with the instructions of the Swap
Counterparty. Absent receipt by the Trustee of written instructions from the
Swap Counterparty, such funds shall remain uninvested. Any earnings shall be
remitted to the Swap Counterparty in accordance with the Swap Agreement.

     On the Closing Date, the Cap Contract Counterparty and the Supplemental
Interest Trust Trustee (which is hereby authorized and directed to enter into
such credit support annex) will enter into a credit support annex in relation to
the Cap Contract, which annex is intended to protect the Supplemental Interest
Trust from certain ratings downgrades that might hinder the ability of the Cap
Contract Counterparty to continue its obligations under the Cap Contract.

                                     -114-

<PAGE>

     Pursuant to and in accordance with the terms and provisions of the Cap
Contract, the Cap Contract Counterparty may be required to post additional
collateral in connection with its obligations under the Swap Agreement. In
connection with the foregoing, the Supplemental Interest Trust Trustee shall
establish a Cap Posted Collateral Account on the Closing Date.

     To the extent that the Cap Contract Counterparty remits any Posted
Collateral to the Supplemental Interest Trust Trustee under the Cap Contract,
the Supplemental Interest Trust Trustee shall, upon receipt of the Posted
Collateral, deposit the Posted Collateral into the Cap Posted Collateral Account
and shall hold, release and disburse such collateral in accordance with the
terms and provisions of the Cap Contract. Where a termination event occurs with
respect to the Cap Contract Counterparty under the Cap Contract, or where the
Cap Contract Counterparty fulfills certain obligations to the Supplemental
Interest Trust such as finding a replacement cap contract counterparty or a
guarantor that meets established criteria of the Rating Agencies, the
Supplemental Interest Trust Trustee shall make payments from the Cap Posted
Collateral Account to the Cap Contract Counterparty in accordance with the
provisions of the Cap Contract. Amounts held in the Cap Posted Collateral
Account will not be part of the Trust Fund and will not be available for
distribution to any Certificateholders, except to the extent distributed to the
Cap Contract Account pursuant to the Cap Contract. Any funds held in the Cap
Posted Collateral Account shall be invested by the Trustee in Permitted
Investments in accordance with the instructions of the Cap Contract
Counterparty. Absent receipt by the Trustee of written instructions from the Cap
Contract Counterparty, such funds shall remain uninvested. Any earnings shall be
remitted to the Cap Contract Counterparty in accordance with the Cap Contract.

     SECTION 4.05. Monthly Statements to Certificateholders

          (a) Not later than each Distribution Date, the Trustee shall prepare
and make available on its website located at www.etrustee.net to each Holder of
a Class of Certificates of the Issuing Entity, the Servicer, the Rating
Agencies, the Depositor, the Cap Contract Counterparty and the Swap Counterparty
a statement setting forth for the Certificates the following information;
provided, however, that with respect to any calendar year during which an annual
report on Form 10-K is not required to be filed with the Commission on behalf of
the Issuing Entity, the information set forth in Items (xxiv) through (xxxiii)
below are not required to be included in such statement during any calendar
year:

          (i) the amount of the related distribution to Holders of each Class
     allocable to principal, separately identifying (A) the aggregate amount of
     any Principal Prepayments included therein, (B) the aggregate of all
     scheduled payments of principal included therein, (C) the Extra Principal
     Distribution Amount, if any, and (D) the aggregate amount of Prepayment
     Charges, if any;

          (ii) the amount of such distribution to Holders of each Class
     allocable to interest, together with any Non-Supported Interest Shortfalls
     allocated to each Class;

          (iii) any interest Carryforward Amount for each Class of the Class A,
     Class M and Class B Certificates;

          (iv) the Class Certificate Principal Balance of each Class after
     giving effect (i) to all distributions allocable to principal on such
     Distribution Date and (ii) the allocation of any Applied Realized Loss
     Amounts for such Distribution Date;

          (v) the Pool Stated Principal Balance for such Distribution Date;

                                     -115-

<PAGE>

          (vi) the amount of the Servicing Fee paid to or retained by the
     Servicer and any amounts constituting reimbursement or indemnification of
     the Servicer or Trustee;

          (vii) the Pass-Through Rate for each Class of Certificates for such
     Distribution Date;

          (viii) the amount of Advances included in the distribution on such
     Distribution Date;

          (ix) the cumulative amount of (A) Realized Losses and (B) Applied
     Realized Loss Amounts to date, in the aggregate and with respect to the
     Group One Mortgage Loans and Group Two Mortgage Loans;

          (x) the amount of (A) Realized Losses and (B) Applied Realized Loss
     Amounts with respect to such Distribution Date, in the aggregate and with
     respect to the Group One Mortgage Loans and Group Two Mortgage Loans;

          (xi) the number and aggregate principal amounts of Mortgage Loans (A)
     Delinquent (exclusive of Mortgage Loans in foreclosure) (1) 31 to 60 days,
     (2) 61 to 90 days and (3) 91 or more days, and (B) in foreclosure and
     Delinquent (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 or more days, in
     each case as of the close of business on the last day of the calendar month
     preceding such Distribution Date, in the aggregate and with respect to the
     Group One Mortgage Loans and Group Two Mortgage Loans in accordance with
     the OTS methodology for reporting delinquencies;

          (xii) with respect to any Mortgage Loan that became an REO Property
     during the preceding calendar month, the loan number and Stated Principal
     Balance of such Mortgage Loan as of the close of business on the last day
     of the calendar month preceding such Distribution Date and the date of
     acquisition thereof, in the aggregate and with respect to the Group One
     Mortgage Loans and Group Two Mortgage Loans;

          (xiii) the total number and principal balance of any REO Properties as
     of the close of business on the last day of the calendar month preceding
     such Distribution Date, in the aggregate and with respect to the Group One
     Mortgage Loans and Group Two Mortgage Loans;

          (xiv) the aggregate Stated Principal Balance of all loans that became
     Liquidated Loans as of such Distribution Date calculated as of the
     preceding Distribution Date, in the aggregate and with respect to the Group
     One Mortgage Loans and Group Two Mortgage Loans;

          (xv) whether a Stepdown Trigger Event has occurred and is in effect;

          (xvi) with respect to each Class of Certificates, any Interest Carry
     Forward Amount with respect to such Distribution Date for each such Class,
     any Interest Carry Forward Amount paid for each such Class and any
     remaining Interest Carry Forward Amount for each such Class;

          (xvii) the number and Stated Principal Balance (as of the preceding
     Distribution Date) of any Mortgage Loans which were purchased or
     repurchased during the preceding Due Period and since the Cut-off Date;

          (xviii) the number of Mortgage Loans for which Prepayment Charges were
     received during the related Prepayment Period and, for each such Mortgage
     Loan, the amount of Prepayment Charges received during the related
     Prepayment Period and in the aggregate of such amounts for all such
     Mortgage Loans since the Cut-off Date;

                                     -116-

<PAGE>

          (xix) the amount and purpose of any withdrawal from the Collection
     Account pursuant to Section 3.08(a)(viii);

          (xx) the amount of any payments to each Class of Certificates that are
     treated as payments received in respect of a REMIC "regular interest" or
     REMIC "residual interest" and the amount of any payments to each Class of
     Certificates that are not treated as payments received in respect of a
     REMIC "regular interest" or REMIC "residual interest";

          (xxi) as of each Distribution Date, the amount, if any, to be
     deposited in the Issuing Entity pursuant to the related Corridor Contract
     as described in Section 4.04(k) and the amount thereof to be paid to the
     Class A-1 Certificates, the Class A-2 Certificates, the Subordinate
     Certificates and the Class C Certificates described in Section 4.04(k)
     hereof;

          (xxii) as of each Distribution Date, the amount, if any, to be
     deposited in the Supplemental Interest Trust pursuant to the Cap Contract
     as described in Section 4.04(l) and the amount thereof to be paid to the
     Certificates;

          (xxiii) as of each Distribution Date, the amount, if any, to be
     deposited in the Supplemental Interest Trust pursuant to the Swap Agreement
     as described in Section 4.04(l) and the amount thereof to be paid to the
     Certificates;

          (xxiv) any Floating Rate Certificate Carryover paid and all Floating
     Rate Certificate Carryover remaining on each Class of the Class A, Class M
     and Class B Certificates on such Distribution Date;

          (xxv) the number of Mortgage Loans with respect to which (i) a
     reduction in the Mortgage Rate has occurred or (ii) the related borrower's
     obligation to repay interest on a monthly basis has been suspended or
     reduced pursuant to the Relief Act or the California Military and Veterans
     Code, as amended; and the amount of interest not required to be paid with
     respect to any such Mortgage Loans during the related Due Period as a
     result of such reductions in the aggregate and with respect to the Group
     One Mortgage Loans and the Group Two Mortgage Loans;

          (xxvi) with respect to each Class of Certificates, the amount of any
     Non-Supported Interest Shortfalls on such Distribution Date;

          (xxvii) the number and amount of pool assets at the beginning and
     ending of each period, and updated pool composition information;

          (xxviii) any material changes to methodology regarding calculations of
     delinquencies and charge-offs;

          (xxix) information on the amount of any Servicing Advances made or
     reimbursed during the period;

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

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

                                     -117-

<PAGE>

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

          (xxxiii) information regarding any pool asset changes (other than in
     connection with a pool asset converting into cash in accordance with its
     terms), such as pool asset substitutions and repurchases (and purchase
     rates, if applicable), and cash flows available for future purchases, such
     as the balances of any prefunding or revolving accounts, if applicable.

          (b) The Trustee will make the Monthly Statement (and, at its option,
any additional files containing the same information in an alternative format)
available each month to Certificateholders, other parties to this Agreement and
any other interested parties via the Trustee's Internet website. The Trustee's
Internet website shall initially be located at "www.etrustee.net". Assistance in
using the website can be obtained by calling the Trustee, who may be reached
directly at (312) 904-6561. Parties that are unable to use the website are
entitled to have a paper copy mailed to them via first class mail by calling the
customer service desk and indicating such. The Trustee shall have the right to
change the way the monthly statements to Certificateholders are distributed in
order to make such distribution more convenient and/or more accessible to the
above parties and the Trustee shall provide timely and adequate notification to
all above parties regarding any such changes.

     The foregoing information and reports shall be prepared and determined by
the Trustee based on Mortgage Loan data and other information provided to the
Trustee by the Servicer, the Swap Counterparty, the Cap Contract Counterparty or
any other third party required to deliver information hereunder. In preparing or
furnishing the foregoing information, the Trustee shall be entitled to rely
conclusively on the accuracy and completeness of the information or data
provided to the Trustee by the Servicer, the Swap Counterparty, the Cap Contract
Counterparty or any other third party required to deliver information and shall
have no liability for any errors in any such information.

     As a condition to access the Trustee's internet website, the Trustee may
require registration and the acceptance of a disclaimer. The Trustee will not be
liable for the dissemination of information in accordance with this Agreement.

          (c) If so requested in writing within a reasonable period of time
after the end of each calendar year, the Trustee shall make available on its
website or cause to be furnished to each Person who at any time during the
calendar year was a Certificateholder of record, a statement containing the
information set forth in clauses (a)(i) and (a)(ii) of this Section 4.05
aggregated for such calendar year or applicable portion thereof during which
such Person was a Certificateholder. Such obligation of the Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code as are from time to time in effect.

          (d) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class R Certificate each Form 1066Q and shall
respond promptly to written requests made not more frequently than quarterly by
any Holder of Class R Certificate with respect to the following matters:

          (i) The original projected principal and interest cash flows on the
     Closing Date on each Class of regular and residual interests created
     hereunder and on the Mortgage Loans, based on the Prepayment Assumption;

                                     -118-

<PAGE>

          (ii) The projected remaining principal and interest cash flows as of
     the end of any calendar quarter with respect to each Class of regular and
     residual interests created hereunder and the Mortgage Loans, based on the
     Prepayment Assumption;

          (iii) The Prepayment Assumption and any interest rate assumptions used
     in determining the projected principal and interest cash flows described
     above;

          (iv) The original issue discount (or, in the case of the Mortgage
     Loans, market discount) or premium accrued or amortized through the end of
     such calendar quarter with respect to each Class of regular or residual
     interests created hereunder and to the Mortgage Loans, together with each
     constant yield to maturity used in computing the same;

          (v) The treatment of losses realized with respect to the Mortgage
     Loans or the regular interests created hereunder, including the timing and
     amount of any cancellation of indebtedness income of the REMICs with
     respect to such regular interests or bad debt deductions claimed with
     respect to the Mortgage Loans;

          (vi) The amount and timing of any non-interest expenses of the REMICs;
     and

          (vii) Any taxes (including penalties and interest) imposed on the
     REMICs, including, without limitation, taxes on "prohibited transactions,"
     "contributions" or "net income from foreclosure property" or state or local
     income or franchise taxes.

     The information pursuant to clauses (i), (ii), (iii) and (iv) above shall
be provided by the Depositor pursuant to Section 8.12.

                                   ARTICLE V

                                THE CERTIFICATES

     SECTION 5.01. The Certificates

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

<TABLE>
<CAPTION>
           Minimum     Integral Multiples in   Original Certificate
Class   Denomination     Excess of Minimum       Principal Balance
-----   ------------   ---------------------   --------------------
<S>     <C>            <C>                     <C>
A-1      $25,000.00            $1.00               $354,933,000
A-2A     $25,000.00            $1.00               $321,031,000
A-2B     $25,000.00            $1.00               $ 66,099,000
A-2C     $25,000.00            $1.00               $114,163,000
A-2D     $25,000.00            $1.00               $ 45,397,000
M-1      $25,000.00            $1.00               $ 46,176,000
M-2      $25,000.00            $1.00               $ 43,216,000
M-3      $25,000.00            $1.00               $ 25,456,000
M-4      $25,000.00            $1.00               $ 21,904,000
M-5      $25,000.00            $1.00               $ 20,720,000
M-6      $25,000.00            $1.00               $ 19,536,000
</TABLE>

                                     -119-

<PAGE>

<TABLE>
<CAPTION>
           Minimum     Integral Multiples in   Original Certificate
Class   Denomination     Excess of Minimum       Principal Balance
-----   ------------   ---------------------   --------------------
<S>     <C>            <C>                     <C>
B-1      $25,000.00            $1.00               $18,944,000
B-2      $25,000.00            $1.00               $14,208,000
B-3      $25,000.00            $1.00               $18,352,000
R        $   100.00              N/A               $    100.00
C                (1)              (1)                      100%
P                (2)              (2)                       (2)
</TABLE>

----------
(1)  The Class C Certificates shall not have minimum dollar denominations as the
     Certificate Principal Balance thereof shall vary over time as described
     herein and shall be issued in a minimum percentage interest of 25% and an
     aggregate percentage interest of 100%.

(2)  The Class P Certificates shall not have minimum dollar denominations or
     Certificate Principal Balances and shall be issued in a minimum percentage
     interest of 100%.

     The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Issuing Entity, notwithstanding that such individuals or any of them have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such authentication and
delivery. No Certificate shall be entitled to any benefit under this Agreement,
or be valid for any purpose, unless there appears on such Certificate a
certificate of authentication substantially in the form set forth as attached
hereto executed by the Authenticating Agent by manual signature, and such
certificate of authentication upon any Certificate shall be conclusive evidence,
and the only evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their
authentication. On the Closing Date, the Authenticating Agent shall authenticate
the Certificates to be issued at the written direction of the Depositor, or any
Affiliate thereof.

     The Certificates sold in offshore transactions in reliance on Regulation S
shall be issued initially in the form of one or more permanent global
certificates in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibit A hereto added to the form of each
such Certificate (each, a "Regulation S Book-Entry Certificate"), which shall be
deposited on behalf of the Holders of such Certificates represented thereby with
the Trustee, as custodian for DTC and registered in the name of a nominee of
DTC, duly executed and authenticated by the Trustee and the Authenticating Agent
as hereinafter provided. The aggregate principal amounts of the Regulation S
Book-Entry Certificates may from time to time be increased or decreased by
adjustments made on the records of the Trustee or DTC or its nominee, as the
case may be, as hereinafter provided.

     The Certificates sold in reliance on Rule 144A shall be issued initially in
the form of one or more permanent global certificates in definitive, fully
registered form without interest coupons with the applicable legends set forth
in Exhibit A hereto added to the form of each such Certificate (each, a "Rule
144A Book-Entry Certificate"), which shall be deposited on behalf of the Holders
of such Certificates represented thereby with the Trustee, as custodian for DTC
and registered in the name of a nominee of DTC, duly executed and authenticated
by the Trustee and the Authenticating Agent as hereinafter provided. The
aggregate principal amounts of the Rule 144A Book-Entry Certificates may from
time to time be increased or decreased by adjustments made on the records of the
Trustee or DTC or its nominee, as the case may be, as hereinafter provided.

                                     -120-

<PAGE>

     SECTION 5.02. Certificate Register; Registration of Transfer and Exchange
of Certificates

          (a) The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.09 hereof, a Certificate Register
for the Issuing Entity in which, subject to the provisions of subsections (b)
and (c) below and to such reasonable regulations as it may prescribe, the
Trustee shall provide for the registration of Certificates and of Transfers and
exchanges of Certificates as herein provided. Upon surrender for registration of
Transfer of any Certificate, the Authenticating Agent shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Certificates of the same Class and of like aggregate Percentage Interest.

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

     No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required. All
Certificates surrendered for registration of Transfer or exchange shall be
canceled and subsequently destroyed by a Trustee in accordance with such
Trustee's customary procedures.

     No Transfer of a Class C or Class P Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a Transfer is to be made in reliance upon an exemption
from the Securities Act and such laws, in order to assure compliance with the
Securities Act and such laws, the Certificateholder desiring to effect such
Transfer and such Certificateholder's prospective transferee shall (except with
respect to the initial transfer of a Class C or Class P Certificate by Merrill
Lynch & Co. or, in connection with a transfer of a Class C or Class P
Certificate to the indenture trustee under an Indenture pursuant to which NIM
Notes are issued, whether or not such notes are guaranteed by the NIMs Insurer)
each certify to the Trustee in writing the facts surrounding the Transfer in
substantially the form set forth in Exhibit F (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either Exhibit G (the
"Investment Letter") or Exhibit H (the "Rule 144A Letter") or (ii) there shall
be delivered to the Trustee an Opinion of Counsel that such Transfer may be made
pursuant to an exemption from the Securities Act, which Opinion of Counsel shall
not be an expense of the Depositor or the Trustee. The Depositor shall provide
to any Holder of a Class C or Class P Certificate and any prospective transferee
designated by any such Holder, information regarding the related Certificates
and the Mortgage Loans and such other information as shall be necessary to
satisfy the condition to eligibility set forth in Rule 144A(d)(4) for Transfer
of any such Certificate without registration thereof under the Securities Act
pursuant to the registration exemption provided by Rule 144A. The Trustee shall
cooperate with the Depositor in providing the Rule 144A information referenced
in the preceding sentence, including providing to the Depositor such information
in the possession of the Trustee regarding the Certificates, the Mortgage Loans
and other matters regarding the Trust Fund as the Depositor shall reasonably
request to meet its obligation under the preceding sentence. Each Holder of a
Class C or Class P Certificate desiring to effect such Transfer shall, and does
hereby agree to, indemnify the Depositor and the Trustee against any

                                     -121-

<PAGE>

liability that may result if the Transfer is not so exempt or is not made in
accordance with such federal and state laws.

     By acceptance of a Regulation S Global Security, whether upon original
issuance or subsequent transfer, each Holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth thereon and
agrees that it will only transfer such a Certificate as provided herein. In
addition, each Holder of a Regulation S Global Security shall be deemed to have
represented and warranted to the Depositor, the Trustee and any of their
respective successors that: (i) such Person is not a "U.S. person" within the
meaning of Regulation S and was, at the time the buy order was originated,
outside the United States and (ii) such Person understands that such
Certificates have not been registered under the Securities Act and that (x)
until the expiration of the 40-day distribution compliance period (within the
meaning of Regulation S), no offer, sale, pledge or other transfer of such
Certificates or any interest therein shall be made in the United States or to or
for the account or benefit of a U.S. person (each as defined in Regulation S),
(y) if in the future it decides to offer, resell, pledge or otherwise transfer
such Certificates, such Certificates may be offered, resold, pledged or
otherwise transferred only (A) to a person which the seller reasonably believes
is a "qualified institutional buyer" as defined in Rule 144A under the
Securities Act, that is purchasing such Certificates for its own account or for
the account of a qualified institutional buyer to which notice is given that the
transfer is being made in reliance on Rule 144A or (B) in an offshore
transaction (as defined in Regulation S) in compliance with the provisions of
Regulation S, in each case in compliance with the requirements of this
Agreement; and it will notify such transferee of the transfer restrictions
specified in this Section.

     No transfer of a Certificate that is neither an ERISA Restricted
Certificate nor a Class R Certificate shall be registered unless the transferee
provides the Trustee with a representation that either (i) such transferee is
not, and is not acting for, on behalf of or with any assets of, an employee
benefit plan or other arrangement subject to Title I of ERISA or plan subject to
Section 4975 of the Code, or (ii) until the termination of the Swap Agreement
and the Cap Contract, the acquisition and holding of the Certificate will not
constitute or result in a non-exempt prohibited transaction under Title I of
ERISA or Section 4975 of the Code.

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

                                     -122-

<PAGE>

     Except in the case of a Definitive Certificate, the representations set
forth in the two immediately preceding paragraphs of this Subsection 5.02(a),
other than clause (B)(II) in the immediately preceding paragraph, shall be
deemed to have been made to the Trustee by the transferee's acceptance of a
Certificate (or the acceptance by a Certificate Owner of the beneficial interest
in any Class of Certificate).

     Notwithstanding any other provision herein to the contrary, any purported
transfer of a Certificate to or on behalf of a Plan without the delivery to the
Trustee of a representation or an Opinion of Counsel satisfactory to the Trustee
as described above shall be void and of no effect. The Trustee shall not be
under any liability to any Person for any registration or transfer of any
Certificate that is in fact not permitted by this Section 5.02(a), nor shall the
Trustee be under any liability for making any payments due on such Certificate
to the Holder thereof or taking any other action with respect to such Holder
under the provisions of this Agreement so long as the transfer was registered by
the Trustee in accordance with the foregoing requirements. The Trustee shall be
entitled, but not obligated, to recover from any Holder of any Certificate that
was in fact a Plan and that held such Certificate in violation of this Section
5.02(a) all payments made on such Certificate at and after the time it commenced
such holding. Any such payments so recovered shall be paid and delivered to the
last preceding Holder of such Certificate that is not a Plan.

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

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

          (ii) No Ownership Interest in a Class R Certificate may be purchased,
     transferred or sold, directly or indirectly, except in accordance with the
     provisions hereof. No Ownership Interest in a Class R Certificate may be
     registered on the Closing Date or thereafter transferred, and the Trustee
     shall not register the Transfer of any Class R Certificate unless, in
     addition to the certificates required to be delivered to the Trustee under
     subparagraph (a) above, the Trustee shall have been furnished with an
     affidavit (a "Transfer Affidavit") of the initial owner or the proposed
     transferee in the form attached hereto as Exhibit E-1 and an affidavit of
     the proposed transferor in the form attached hereto as Exhibit E-2. In the
     absence of a contrary instruction from the transferor of a Class R
     Certificate, declaration (11) in Appendix A of the Transfer Affidavit may
     be left blank. If the transferor requests by written notice to the Trustee
     prior to the date of the proposed transfer that one of the two other forms
     of declaration (11) in Appendix A of the Transfer Affidavit be used, then
     the requirements of this Section 5.02(b)(ii) shall not have been satisfied
     unless the Transfer Affidavit includes such other form of declaration.

          (iii) Each Person holding or acquiring any Ownership Interest in a
     Class R Certificate shall agree (A) to obtain a Transfer Affidavit from any
     other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Class R Certificate, (B) to obtain a Transfer Affidavit from
     any Person for whom such Person is acting as nominee, trustee or agent in
     connection with any Transfer of a Class R Certificate and (C) not to
     Transfer its Ownership Interest in a Class R Certificate or to cause the
     Transfer of an Ownership Interest in a Class R Certificate to any other
     Person if it has actual knowledge that such Person is not a Permitted
     Transferee. Further, no transfer, sale or other disposition of any
     Ownership Interest in a Class R Certificate may be made to a person who is
     not a U.S. Person (within the meaning of section 7701

                                     -123-

<PAGE>

     of the Code) unless such person furnishes the transferor and the Trustee
     with a duly completed and effective Internal Revenue Service Form W-8ECI
     (or any successor thereto) and the Trustee consents to such transfer, sale
     or other disposition in writing.

          (iv) Any attempted or purported Transfer of any Ownership Interest in
     a Class R Certificate in violation of the provisions of this Section
     5.02(b) shall be absolutely null and void and shall vest no rights in the
     purported transferee. If any purported transferee shall become a Holder of
     a Class R Certificate in violation of the provisions of this Section
     5.02(b), then the last preceding Permitted Transferee shall be restored to
     all rights as Holder thereof retroactive to the date of registration of
     Transfer of such Class R Certificate. The Trustee shall be under no
     liability to any Person for any registration of Transfer of a Class R
     Certificate that is in fact not permitted by Section 5.02(a) and this
     Section 5.02(b) or for making any payments due on such Certificate to the
     Holder thereof or taking any other action with respect to such Holder under
     the provisions of this Agreement so long as the Transfer was registered
     after receipt of the related Transfer Affidavit. The Trustee shall be
     entitled but not obligated to recover from any Holder of a Class R
     Certificate that was in fact not a Permitted Transferee at the time it
     became a Holder or, at such subsequent time as it became other than a
     Permitted Transferee, all payments made on such Class R Certificate at and
     after either such time. Any such payments so recovered by the Trustee shall
     be paid and delivered by the Trustee to the last preceding Permitted
     Transferee of such Certificate.

          (v) At the option of the Holder of the Class R Certificate, the Class
     SWR Interest, the Class LTR Interest and the residual interest in the Upper
     Tier REMIC may be severed and represented by separate certificates (with
     the separate certificate that represents the Residual Interest also
     representing all rights of the Class R Certificate to distributions
     attributable to an interest rate on the Class R Certificate in excess of
     the REMIC Pass-Through Rate); provided, however, that such separate
     certification may not occur until the Trustee receives an Opinion of
     Counsel to the effect that separate certification in the form and manner
     proposed would not result in the imposition of federal tax upon the Issuing
     Entity or any of the REMICs provided for herein or cause any of the REMICs
     provided for herein to fail to qualify as a REMIC; and provided further,
     that the provisions of Sections 5.02(a) and (b) will apply to each such
     separate certificate as if the separate certificate were a Class R
     Certificate. If, as evidenced by an Opinion of Counsel, it is necessary to
     preserve the REMIC status of any of the REMICs provided for herein, the
     Class SWR Interest, the Class LTR Interest and the residual interest in the
     Upper Tier REMIC shall be severed and represented by separate certificates
     (with the separate certificate that represents the Residual Interest also
     representing all rights of the Class R Certificate to distributions
     attributable to an interest rate on the Class R Certificate in excess of
     the REMIC Pass-Through Rate).

     The restrictions on Transfers of a Class R Certificate set forth in this
Section 5.02(b) shall cease to apply (and the applicable portions of the legend
on a Class R Certificate may be deleted) with respect to Transfers occurring
after delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel
shall not be an expense of the Issuing Entity, the Trustee or the Depositor, to
the effect that the elimination of such restrictions will not cause any of the
REMICs provided for herein to fail to qualify as a REMIC at any time that the
Certificates are outstanding or result in the imposition of any tax on the
Issuing Entity, any REMIC provided for herein, a Certificateholder or another
Person. Each Person holding or acquiring any Ownership Interest in a Class R
Certificate hereby consents to any amendment of this Agreement that, based on an
Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to
ensure that the record ownership of, or any beneficial interest in, a Class R
Certificate is not transferred, directly or indirectly, to a Person that is not
a Permitted Transferee and (b) to provide for a

                                     -124-

<PAGE>

means to compel the Transfer of a Class R Certificate that is held by a Person
that is not a Permitted Transferee to a Holder that is a Permitted Transferee.

          (c) The transferor of the Class R Certificate shall notify the Trustee
in writing upon the transfer of the Class R Certificate.

          (d) [Reserved].

          (e) The preparation and delivery of all certificates, opinions and
other writings referred to above in this Section 5.02 shall not be an expense of
the Issuing Entity, the Depositor or the Trustee.

     SECTION 5.03. Mutilated, Destroyed, Lost or Stolen Certificates

     If (a) any mutilated Certificate is surrendered to the Trustee or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and of the ownership thereof and (b) there is delivered to
the Trustee such security or indemnity as may be required by them to save each
of them harmless, then, in the absence of notice to the Trustee that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with the issuance of any new
Certificate under this Section 5.03, the Trustee may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of
the Trustee and its counsel) connected therewith. Any replacement Certificate
issued pursuant to this Section 5.03 shall constitute complete and indefeasible
evidence of ownership in the Trust Fund, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time. All
Certificates surrendered to the Trustee under the terms of this Section 5.03
shall be canceled and destroyed by the Trustee in accordance with its standard
procedures without liability on its part.

     SECTION 5.04. Persons Deemed Owners

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

     SECTION 5.05. Access to List of Certificateholders' Names and Addresses

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

     SECTION 5.06. Book-Entry Certificates

                                     -125-

<PAGE>

     The Regular Certificates, upon original issuance, shall be issued in the
form of one or more typewritten Certificates representing the Book-Entry
Certificates, to be delivered to the Depository by or on behalf of the
Depositor. The Class C, Class P and Class R Certificates shall be definitive
certificates. The Book-Entry Certificates shall initially be registered on the
Certificate Register in the name of the Depository or its nominee, and no
Certificate Owner of a Book-Entry Certificate will receive a definitive
certificate representing such Certificate Owner's interest in such Certificates,
except as provided in Section 5.08. Unless and until definitive, fully
registered Certificates ("Definitive Certificates") have been issued to the
Certificate Owners of the Book-Entry Certificates pursuant to Section 5.08:

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

          (b) the Depositor, the NIMs Insurer and the Trustee may deal with the
Depository and the Depository Participants for all purposes (including the
making of distributions) as the authorized representative of the respective
Certificate Owners of the Book-Entry Certificates;

          (c) registration of the Book-Entry Certificates may not be transferred
by the Trustee except to another Depository;

          (d) the rights of the respective Certificate Owners of the Book-Entry
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to those established by law and agreements
between the Owners of the Book-Entry Certificates and the Depository and/or the
Depository Participants. Pursuant to the Depository Agreement, unless and until
Definitive Certificates are issued pursuant to Section 5.08, the Depository will
make book-entry transfers among the Depository Participants and receive and
transmit distributions of principal and interest on the related Certificates to
such Depository Participants;

          (e) the Depository may collect its usual and customary fees, charges
and expenses from its Depository Participants;

          (f) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants; and

          (g) to the extent that the provisions of this Section conflict with
any other provisions of this Agreement, the provisions of this Section shall
control.

     For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Certificateholders
evidencing a specified percentage of the aggregate unpaid principal amount of
any Class of Certificates, such direction or consent may be given by Certificate
Owners (acting through the Depository and the Depository Participants) owning
Book-Entry Certificates evidencing the requisite percentage of principal amount
of such Class of Certificates.

     In the event that Definitive Certificates are issued pursuant to Section
5.08, clauses (a) through (g) of this Section 5.06 shall continue to be
applicable with respect to all remaining Book-Entry Certificates.

     SECTION 5.07. Notices to Depository

     Whenever any notice or other communication is required to be given to
Certificateholders of the Class with respect to which Book-Entry Certificates
have been issued, unless and until Definitive Certificates shall have been
issued to the related Certificate Owners, the Trustee shall give all such
notices and communications to the Depository.

                                     -126-

<PAGE>

     SECTION 5.08. Definitive Certificates

     If, after Book-Entry Certificates have been issued with respect to any
Certificates, (a) the Depository or the Depositor advises the Trustee that the
Depository is no longer willing, qualified or able to discharge properly its
responsibilities under the Depository Agreement with respect to such
Certificates and the Trustee or the Depositor is unable to locate a qualified
successor, (b) the Depositor notifies the Trustee and the Depository of its
intent to terminate the book-entry system through the Depository and, upon
receipt of notice of such intent from the Depository, the Certificate Owners of
the Book-Entry Certificates agree to initiate such termination or (c) after the
occurrence and continuation of an Event of Default, Certificate Owners of such
Book-Entry Certificates having not less than 51% of the Voting Rights evidenced
by any Class of Book-Entry Certificates advise the Trustee and the Depository in
writing through the Depository Participants that the continuation of a
book-entry system with respect to Certificates of such Class through the
Depository (or its successor) is no longer in the best interests of the
Certificate Owners of such Class, then the Trustee shall notify all Certificate
Owners of such Book-Entry Certificates and the NIMs Insurer, through the
Depository, of the occurrence of any such event and of the availability of
Definitive Certificates to Certificate Owners of such Class requesting the same.
The Depositor shall provide the Trustee with an adequate inventory of
certificates to facilitate the issuance and transfer of Definitive Certificates.
Upon surrender to the Trustee of any such Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Authenticating Agent shall authenticate and the Trustee shall deliver such
Definitive Certificates. Neither the Depositor nor the Trustee shall be liable
for any delay in delivery of such instructions and each may conclusively rely
on, and shall be protected in relying on, such instructions. Upon the issuance
of such Definitive Certificates, all references herein to obligations imposed
upon or to be performed by the Depository shall be deemed to be imposed upon and
performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates and the Trustee shall recognize the Holders of such
Definitive Certificates as Certificateholders hereunder.

     SECTION 5.09. Maintenance of Office or Agency

     The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies where Certificates may be surrendered
for registration of transfer or exchange. The Trustee initially designates its
offices at 135 South LaSalle Street, Suite 1511, Chicago, Illinois 60603,
Attention: Global Securities and Trust Services MLMI 2007-HE1 as offices for
such purposes. The Trustee will give prompt written notice to the
Certificateholders of any change in such location of any such office or agency.

     SECTION 5.10. Authenticating Agents

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

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initial Authenticating Agent. The Trustee shall be the Authenticating Agent
during any such time as no other Authenticating Agent has been appointed and has
not resigned.

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

     (c) Any Authenticating Agent may at any time resign by giving at least 30
days' advance written notice of resignation to the Trustee and the Depositor.
Except with respect to the initial Authenticating Agent, LaSalle Bank National
Association, which shall be the Authenticating Agent for so long as it is the
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Depositor. Upon receiving a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance within the provisions of this Section 5.10, the Trustee may appoint a
successor Authenticating Agent, shall give written notice of such appointment to
the Depositor and shall mail notice of such appointment to all Holders of
Certificates. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section 5.10. No
Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee.

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

     SECTION 6.01. Respective Liabilities of the Depositor and the Servicer

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

     SECTION 6.02. Merger or Consolidation of the Depositor or the Servicer

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

     Any Person into which the Depositor or the Servicer may be merged or
consolidated, or any Person resulting from any merger or consolidation to which
the Depositor or the Servicer shall be a party, or any Person succeeding to the
business of the Depositor or the Servicer, shall be the successor of the
Depositor or the Servicer, as the case may be, hereunder, without the execution
or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding (except for the
execution of an assumption agreement where such succession is not effected by
operation of law); provided, however, that the successor or surviving Person to
the Servicer shall be qualified to sell mortgage loans to, and to service
mortgage loans on behalf of, Fannie Mae or Freddie Mac.

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     SECTION 6.03. Limitation on Liability of the Depositor, the Servicer and
Others

     None of the Depositor, the Servicer or any of the directors, officers,
employees or agents of the Depositor or the Servicer shall be under any
liability to the Issuing Entity or the Certificateholders for any action taken
or for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor, the Servicer or any such Person against any
breach of representations or warranties made by it herein or protect the
Depositor, the Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
in the performance of duties or by reason of reckless disregard of obligations
and duties hereunder. The Depositor or the Servicer and any director, officer,
employee or agent of the Depositor or the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Depositor or the Servicer and any
director, officer, employee or agent of the Depositor or the Servicer shall be
indemnified by the Issuing Entity and held harmless against any loss, liability
or expense, incurred in connection with the performance of their duties under
this Agreement or incurred in connection with any audit, controversy or judicial
proceeding relating to a governmental taxing authority or any legal action
relating to this Agreement or the Certificates, other than any loss, liability
or expense (i) incurred by reason of willful misfeasance, bad faith or
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder or (ii) which does not constitute
an "unanticipated expense" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii). Neither the Depositor nor the Servicer shall be under any
obligation to appear in, prosecute or defend any legal action that is not
incidental to its respective duties hereunder and that in its opinion may
involve it in any expense or liability; provided, however, that either of the
Depositor or the Servicer in its discretion may undertake any such action that
it may deem necessary or desirable in respect of this Agreement and the rights
and duties of the parties hereto and the interests of the Trustee and the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be, expenses, costs and
liabilities of the Issuing Entity, and the Depositor and the Servicer shall be
entitled to be reimbursed therefor out of the Collection Account as provided by
Section 3.08 hereof.

     The provisions of this Section 6.03 shall survive any termination of this
Agreement and the resignation or removal of the Depositor or the Servicer and
shall be construed to include, but not be limited to any loss, liability or
expense under any environmental law.

     Notwithstanding anything herein to the contrary, in preparing or furnishing
any reports or certifications pursuant to this Agreement, the Servicer shall be
entitled to rely conclusively on the accuracy of the information or data
provided to it by any other party to the Agreement and shall have no liability
for any errors therein.

     SECTION 6.04. Limitation on Resignation of Servicer

     Subject to the provisions of Section 7.01, the second paragraph of Section
7.02, the second paragraph of Section 6.02 and the following paragraph of this
Section 6.04, the Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee and the NIMs Insurer. No such resignation shall
become effective until the Trustee or a successor servicer reasonably acceptable
to the NIMs Insurer and the Trustee is appointed and has assumed the Servicer's
responsibilities, duties, liabilities and obligations hereunder. Any such
resignation shall not relieve the

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<PAGE>

Servicer of any of the obligations specified in Section 7.01 and 7.02 as
obligations that survive the resignation or termination of the Servicer.

     Notwithstanding anything to the contrary in the previous paragraph of this
Section 6.04, the Trustee, the Depositor and the NIMs Insurer hereby
specifically (i) consent to the pledge and assignment by the Servicer of all the
Servicer's right, title and interest in, to and under this Agreement to the
Servicing Rights Pledgee, if any, for the benefit of certain lenders, and (ii)
agree that upon delivery to the Trustee by the Servicing Rights Pledgee of a
letter signed by the Servicer whereby the Servicer shall resign as Servicer
under this Agreement, notwithstanding anything to the contrary which may be set
forth in Section 3.04 above, the Trustee shall appoint the Servicing Rights
Pledgee or its designee as successor servicer, provided that the Servicer's
resignation will not be effective unless, at the time of such appointment, the
Servicing Rights Pledgee or its designee (i) meets the requirements of a
successor servicer under Section 7.03 of this Agreement (including being
acceptable to the Rating Agencies), provided, that the consent and approval of
the Trustee, the Depositor and the NIMS Insurer shall be deemed to have been
given to the Servicing Rights Pledgee or its designee, and the Servicing Rights
Pledgee and its designee are hereby agreed to be acceptable to the Trustee, the
Depositor and the NIMS Insurer and (ii) agrees to be subject to the terms of
this Agreement. If, pursuant to any provision hereof, the duties of the Servicer
are transferred to a successor servicer, the entire amount of the Servicing Fee
and other compensation payable to the Servicer pursuant hereto shall thereafter
be payable to such successor servicer.

     SECTION 6.05. Errors and Omissions Insurance; Fidelity Bonds

     The Servicer shall, for so long as it acts as servicer under this
Agreement, obtain and maintain in force (a) a policy or policies of insurance
covering errors and omissions in the performance of its obligations as servicer
hereunder, and (b) a fidelity bond in respect of its officers, employees and
agents. Each such policy or policies and bond shall, together, comply with the
requirements from time to time of Fannie Mae or Freddie Mac for Persons
performing servicing for mortgage loans purchased by Fannie Mae or Freddie Mac.
The Servicer shall provide the Trustee and the NIMs Insurer, upon request and
reasonable notice, with copies of such policies and fidelity bond or a
certification from the insurance provider evidencing such policies and fidelity
bond. The Servicer may be deemed to have complied with this provision if an
Affiliate of the Servicer has such errors and omissions and fidelity bond
coverage and, by the terms of such insurance policy or fidelity bond, the
coverage afforded thereunder extends to the Servicer. In the event that any such
policy or bond ceases to be in effect, the Servicer shall use its reasonable
best efforts to obtain a comparable replacement policy or bond from an insurer
or issuer meeting the requirements set forth above as of the date of such
replacement. Any such policy or fidelity bond shall by its terms not be
cancelable without thirty days' prior written notice to the Trustee.

                                  ARTICLE VII

                        DEFAULT; TERMINATION OF SERVICER

     SECTION 7.01. Events of Default

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

          (i) any failure by the Servicer to make any Advance, to deposit in the
     Collection Account or the Certificate Account or remit to the Trustee any
     payment (excluding a payment required to be made under Section 4.01 hereof)
     required to be made under the terms of this Agreement, which failure shall
     continue unremedied for three Business Days and, with respect to a payment
     required to be made under Section 4.01 hereof, for one Business Day, after
     the date on

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<PAGE>

     which written notice of such failure shall have been given to the Servicer
     by the Trustee or the Depositor, or to the Trustee, the Depositor and the
     Servicer by the NIMs Insurer or the Holders of Certificates evidencing
     greater than 50% of the Voting Rights evidenced by the Certificates; or

          (ii) any failure by the Servicer to observe or perform in any material
     respect any other of the covenants or agreements on the part of the
     Servicer contained in this Agreement or any representation or warranty
     shall prove to be untrue, which failure or breach shall continue unremedied
     for a period of sixty (60) days after the date on which written notice of
     such failure shall have been given to the Servicer, the Trustee and the
     Depositor by the Trustee or the Depositor, or to the Servicer, the Trustee
     and the Depositor by the Holders of Certificates evidencing greater than
     50% of the Voting Rights evidenced by the Certificates; or

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

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

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

          (vi) any failure by the Servicer to duly perform, within the required
     time period, its obligations under Sections 3.17, 3.18 and 3.22 of this
     Agreement, which failure continues unremedied for a period of ten (10) days
     after the date on which written notice of such failure, requiring the same
     to be remedied, shall have been given to the Servicer by the Trustee or any
     other party to this Agreement.

     If an Event of Default shall occur with respect to the Servicer, then, and
in each and every such case, so long as such Event of Default shall not have
been remedied within the applicable grace period, the Trustee may, or at the
direction of the NIMs Insurer or the Holders of Certificates evidencing greater
than 50% of the Voting Rights evidenced by the Certificates (with the written
consent of the NIMs Insurer, except after a NIMs Insurer Default), shall, by
notice in writing to the Servicer (with a copy to each Rating Agency), terminate
all of the rights and obligations of the Servicer under this Agreement and in
and to the related Mortgage Loans and the proceeds thereof, other than its
rights as a Certificateholder hereunder. On or after the receipt by the Servicer
of such written notice, all authority and power of the Servicer hereunder,
whether with respect to the related Mortgage Loans or otherwise, shall pass to
and be vested in the Trustee. To the extent the Event of Default resulted from
the failure of the Servicer to make a required Advance, the Trustee shall
thereupon make any Advance described in Section 4.01 hereof subject to Section
3.04 hereof. The Trustee is hereby authorized and empowered to execute and
deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise. Unless expressly
provided in such written notice, no such termination shall affect any obligation
of the Servicer to pay amounts owed pursuant to Article VIII. The

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<PAGE>

Servicer agrees to cooperate with the Trustee in effecting the termination of
the Servicer's responsibilities and rights hereunder, including, without
limitation, the transfer to the Trustee of all cash amounts which shall at the
time be credited to the Collection Account, or thereafter be received with
respect to the Mortgage Loans. The Servicer and the Trustee shall promptly
notify the Rating Agencies of the occurrence of an Event of Default, such notice
to be provided in any event within two Business Days of such occurrence.

     Notwithstanding any termination of the activities of the Servicer
hereunder, the Servicer shall be entitled to receive, out of any late collection
of a Scheduled Payment on a Mortgage Loan that was due prior to the notice
terminating the Servicer's rights and obligations as Servicer hereunder and
received after such notice, that portion thereof to which the Servicer would
have been entitled pursuant to Section 3.08(a), and any other amounts payable to
the Servicer hereunder the entitlement to which arose prior to the termination
of its activities hereunder. Notwithstanding anything herein to the contrary,
upon termination of the Servicer hereunder, any liabilities of the Servicer
which accrued prior to such termination shall survive such termination.

     SECTION 7.02. Trustee to Act; Appointment of Successor

     On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 hereof, the Trustee shall, to the extent provided in
Section 3.04, be the successor to the Servicer in its capacity as servicer under
this Agreement and the transactions set forth or provided for herein and shall
be subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof and applicable law
including the obligation to make advances pursuant to Section 4.01. As
compensation therefor, subject to the last paragraph of Section 7.01, the
Trustee shall be entitled to all fees, compensation and reimbursement for costs
and expenses that the Servicer would have been entitled to hereunder if the
Servicer had continued to act hereunder. Notwithstanding the foregoing, if the
Trustee has become the successor to the Servicer in accordance with Section 7.01
hereof, the Trustee may, if it shall be unwilling to so act, or shall, if it is
prohibited by applicable law from making Advances pursuant to Section 4.01
hereof or if it is otherwise unable to so act, appoint, or petition a court of
competent jurisdiction to appoint, any established mortgage loan servicing
institution provided the appointment of such successor shall be approved by the
NIMs Insurer and does not adversely affect the then current rating of the
Certificates by each Rating Agency as the successor to the Servicer hereunder in
the assumption of all or any part of the responsibilities, duties or liabilities
of the Servicer hereunder. Any successor Servicer shall be an institution that
is acceptable to the NIMs Insurer and is a Fannie Mae and Freddie Mac approved
seller/servicer in good standing, that has a net worth of at least $15,000,000,
and that is willing to service the Mortgage Loans and executes and delivers to
the Depositor and the Trustee an agreement accepting such delegation and
assignment, that contains an assumption by such Person of the rights, powers,
duties, responsibilities, obligations and liabilities of the Servicer (other
than liabilities of the Servicer under Section 6.03 hereof incurred prior to
termination of the Servicer under Section 7.01), with like effect as if
originally named as a party to this Agreement; and provided further that each
Rating Agency acknowledges that its rating of the Certificates in effect
immediately prior to such assignment and delegation will not be qualified or
reduced as a result of such assignment and delegation. No appointment of a
successor to the Servicer hereunder shall be effective until the Trustee shall
have consented thereto, prior written consent of the NIMs Insurer is obtained
(provided, that such prior written consent shall not be required in the event
that the Servicing Rights Pledgee or its designee is so appointed as successor
servicer) and written notice of such proposed appointment shall have been
provided by the Trustee to each Certificateholder. The Trustee shall not resign
as servicer until a successor servicer has been appointed and has accepted such
appointment. Pending appointment of a successor to the Servicer hereunder, the
Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
to Section 3.04 hereof, act in such capacity as hereinabove provided. In
connection with

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<PAGE>

such appointment and assumption, the Trustee may make such arrangements for the
compensation of such successor out of payments on Mortgage Loans as it and such
successor shall agree; provided, however, that no such compensation shall be in
excess of that permitted the Servicer hereunder. The Trustee and such successor
shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. Neither the Trustee nor any other successor
servicer shall be deemed to be in default hereunder by reason of any failure to
make, or any delay in making, any distribution hereunder or any portion thereof
or any failure to perform, or any delay in performing, any duties or
responsibilities hereunder, in either case caused by the failure of the Servicer
to deliver or provide, or any delay in delivering or providing, any cash,
information, documents or records to it.

     Any successor to the Servicer as servicer shall give notice to the
Mortgagors of such change of servicer and shall, during the term of its service
as servicer maintain in force the policy or policies that the Servicer is
required to maintain pursuant to Section 6.05.

     SECTION 7.03. Notification to Certificateholders

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

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

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

     SECTION 8.01. Duties of the Trustee

     For purposes of this Article VIII, references to "Trustee" shall be deemed
to include LaSalle Bank National Association in its capacity as Supplemental
Interest Trust Trustee. In the performance of its obligations under this
Agreement, the Cap Contracts and the Swap Agreement, the Supplemental Interest
Trust Trustee shall have all of the rights, protections, immunities and benefits
of the Trustee.

     The Trustee, prior to the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement and use the same degree of care and skill in its exercise as a prudent
person would exercise or use under the circumstances in the conduct of such
person's own affairs. In case an Event of Default or other default by the
Servicer or the Depositor hereunder shall occur and be continuing, the Trustee
shall, at the written direction of the majority of the Certificateholders or the
NIMs Insurer, or may, proceed to protect and enforce its rights and the rights
of the Certificateholders or the NIMs Insurer under this Agreement by a suit,
action or proceeding in equity or at law or otherwise, whether for the specific
performance of any covenant or agreement contained in this agreement or in aid
of the execution of any power granted in this Agreement or for the enforcement
of any other legal, equitable or other remedy, as the Trustee, being advised by
counsel and subject to the foregoing, shall deem most effectual to protect and
enforce any of the rights of the Trustee, the NIMs Insurer and the
Certificateholders.

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<PAGE>

     The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they conform on their
face to the requirements of this Agreement. If any such instrument is found not
to conform on its face to the requirements of this Agreement in a material
manner, the Trustee shall notify the person providing such Agreement of such
non-conformance, and if the instrument is not corrected to the its satisfaction,
the Trustee will provide notice thereof to the Certificateholders and the NIMs
Insurer and take such further action as directed by the Certificateholders and
the NIMs Insurer.

     No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own misconduct, its negligent failure to perform its obligations in
compliance with this Agreement, or any liability that would be imposed by reason
of its willful misfeasance or bad faith; provided, however, that:

          (i) prior to the occurrence of an Event of Default, and after the
     curing of all such Events of Default that may have occurred, the duties and
     obligations of the Trustee shall be determined solely by the express
     provisions of this Agreement, the Trustee shall not be liable, individually
     or as Trustee, except for the performance of such duties and obligations as
     are specifically set forth in this Agreement, no implied covenants or
     obligations shall be read into this Agreement against the Trustee and, the
     Trustee may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon any certificates or
     opinions furnished to the Trustee and conforming to the requirements of
     this Agreement that it reasonably believed in good faith to be genuine and
     to have been duly executed by the proper authorities respecting any matters
     arising hereunder;

          (ii) the Trustee shall not, individually or as Trustee, be liable for
     an error of judgment made in good faith by a Responsible Officer or
     Responsible Officers of the Trustee unless the Trustee was negligent or
     acted in bad faith or with willful misfeasance;

          (iii) the Trustee shall not be liable, individually or as Trustee,
     with respect to any action taken, suffered or omitted to be taken by it in
     good faith in accordance with the direction of the NIMs Insurer or the
     Holders in accordance with this Agreement relating to the time, method and
     place of conducting any proceeding for any remedy available to the Trustee,
     or exercising any trust or power conferred upon the Trustee under this
     Agreement; and

          (iv) the Trustee shall not be responsible for the acts or omissions of
     the Servicer or any Subservicer, it being understood that this Agreement
     shall not be construed to render any of them agents of one another.

     SECTION 8.02. Certain Matters Affecting the Trustee

          (a) Except as otherwise provided in Section 8.01:

          (i) the Trustee may request and conclusively rely upon and shall be
     fully protected in acting or refraining from acting upon any resolution,
     Officer's Certificate, certificate of auditors or any other certificate,
     statement, instrument, opinion, report, notice, request, consent, order,
     appraisal, bond or other paper or document believed by it to be genuine and
     to have been signed or presented by the proper party or parties;

          (ii) the Trustee may consult with counsel of its choice and any advice
     or Opinion of Counsel shall be full and complete authorization and
     protection in respect of any action taken or

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<PAGE>

     suffered or omitted by it hereunder in good faith and in accordance with
     such Opinion of Counsel;

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

          (iv) prior to the occurrence of an Event of Default hereunder and
     after the curing of all Events of Default that may have occurred, the
     Trustee shall not be bound to make any investigation into the facts or
     matters stated in any resolution, certificate, statement, instrument,
     opinion, report, notice, request, consent, order, approval, bond or other
     paper or document, unless requested in writing so to do by the NIMs Insurer
     or the Holders of each Class of Certificates evidencing not less than 25%
     of the Voting Rights of such Class;

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

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

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

          (viii) the Trustee shall not be deemed to have knowledge of an Event
     of Default until a Responsible Officer of the Trustee shall have received
     written notice thereof;

          (ix) the Trustee shall be under no obligation to exercise any of the
     trusts or powers vested in it by this Agreement or to make any
     investigation of matters arising hereunder or to institute, conduct or
     defend any litigation hereunder or in relation hereto at the request, order
     or direction of any of the NIMs Insurer or the Certificateholders, pursuant
     to the provisions of this Agreement, unless the NIMs Insurer or such
     Certificateholders shall have offered to the Trustee reasonable security or
     indemnity satisfactory to it against the costs, expenses and liabilities
     that may be incurred therein or thereby;

          (x) if requested by the Servicer, the Trustee may appoint the Servicer
     as the Trustee's attorney-in-fact in order to carry out and perform certain
     activities that are necessary or appropriate for the servicing and
     administration of the Mortgage Loans pursuant to this Agreement. Such
     appointment shall be evidenced by a power of attorney in such form as may
     be agreed to by the Trustee and the Servicer. The Trustee shall have no
     liability for any action or inaction of the Servicer in connection with
     such power of attorney and the Trustee shall be indemnified by the Servicer
     for all liabilities, costs and expenses incurred by the Trustee in
     connection with the Servicer's use or misuse of such powers of attorney;
     and

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<PAGE>

          (xi) in order to comply with its duties under the U.S.A. Patriot Act,
     the Trustee shall obtain and verify certain information and documentation
     from the other parties hereto, including but not limited to, such party's
     name, address and other identifying information.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee without
the possession of any of the Certificates, or the production thereof at the
trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates or in its capacity as Trustee,
subject to the provisions of this Agreement. Any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
benefit of the Holders in respect of which such judgment has been recovered. The
Trustee shall have no duty (A) to see to any recording, filing, or depositing of
this Agreement or any agreement referred to herein or any financing statement or
continuation statement evidencing a security interest, or to see to the
maintenance of any rerecording, refiling or redepositing, as applicable,
thereof, (B) to see to any insurance or (C) to see to the payment or discharge
of any tax, assessment, or other governmental charge or any lien or encumbrance
of any kind owing with respect to, assessed or levied against, any part of the
Trust Fund.

     SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans

     The recitals contained herein shall be taken as the statements of the
Depositor or the Servicer, as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representation as to
the validity or sufficiency of this Agreement, of any Mortgage Loan, or any
related document other than with respect to the execution and authentication of
the Certificates, if it so executed or authorized the Certificates. The Trustee
shall not be accountable for the use or application by the Depositor or the
Servicer of any funds paid to the Depositor or the Servicer in respect of the
Mortgage Loans or deposited in or withdrawn from the Collection Account or the
Certificate Account by the Depositor or the Servicer.

     SECTION 8.04. Trustee May Own Certificates

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

     SECTION 8.05. Trustee's Fees and Expenses

     The Trustee and any custodian shall be entitled to, such compensation as
shall be agreed to in writing by the Trustee and the Depositor (which shall not
be limited by any provision of law in regard to the compensation of a trustee of
an express trust) for all services rendered by it in the execution of the trusts
hereby created and in the exercise and performance of any of the powers and
duties hereunder of the Trustee.

     SECTION 8.06. Indemnification and Expenses of Trustee

          (a) LaSalle Bank National Association (as Trustee and in its
individual corporate capacity) and its directors, officers, employees and agents
shall be entitled to indemnification from the Issuing Entity for any loss,
liability or expense incurred in connection with (i) any audit, controversy or
judicial proceeding relating to a governmental authority or any legal proceeding
incurred without negligence or willful misconduct on their part, arising out of,
or in connection with the acceptance or administration of the trusts created
hereunder and (ii) the performance of their duties hereunder, including any
applicable fees and expenses payable hereunder, and the costs and expenses of
defending themselves

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against any claim in connection with the exercise or performance of any of their
powers or duties hereunder, provided that:

          (i) with respect to any such claim, the Trustee shall have given the
     Depositor written notice thereof promptly after the Trustee shall have
     knowledge thereof; provided that failure to so notify shall not relieve the
     Issuing Entity of the obligation to indemnify the Trustee; however, any
     reasonable delay by the Trustee to provide written notice to the Depositor
     and the Holders promptly after the Trustee shall have obtained knowledge of
     a claim shall not relieve the Issuing Entity of the obligation to indemnify
     the Trustee under this Section 8.06;

          (ii) while maintaining control over its own defense, the Trustee shall
     reasonably cooperate and consult with the Depositor in preparing such
     defense;

          (iii) notwithstanding anything to the contrary in this Section 8.06,
     the Issuing Entity shall not be liable for settlement of any such claim by
     the Trustee entered into without the prior consent of the Depositor, which
     consent shall not be unreasonably withheld or delayed; and

          (iv) indemnification therefor would constitute "unanticipated
     expenses" within the meaning of Treasury Regulation Section
     1.860G-1(b)(3)(ii).

     Any indemnification payments to the Trustee (or a custodian) pursuant to
this Section 8.06(a) shall be allocated first to principal and then, to the
extent remaining, to interest.

          (b) The Trustee shall be entitled to reimbursement by the Issuing
Entity of all reasonable expenses, disbursements and advances incurred or made
by the Trustee in accordance with this Agreement (including fees and expenses of
its counsel and all persons not regularly in its employment), except any such
expenses, disbursements and advances that either (i) arise from its negligence,
bad faith or willful misconduct or (ii) do not constitute "unanticipated
expenses" within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

          (c) The Trustee's right to indemnification and reimbursement shall be
subject to a cap of $400,000 in the aggregate in any calendar year, excluding
(i) any Servicing Transfer Costs and (ii) any costs, damages or expenses
incurred by the Trustee in connection with any "high cost" home loans or any
predatory or abusive lending laws, which amounts shall in no case be subject to
any such limitation; provided, however, that such cap shall apply only if NIM
Notes have been issued and there is a NIMs Insurer and shall cease to apply
after the date on which any NIM Notes are paid in full or if there is no NIMs
Insurer; provided further, however, that amounts incurred by the Trustee in
excess of such annual limit in any calendar year shall be payable to the Trustee
in succeeding calendar years, subject to such annual limit for each applicable
calendar year. Any amounts reimbursable hereunder not in excess of this cap may
be withdrawn by the Trustee from the Certificate Account at any time.

          (d) Any custodian appointed by the Trustee as herein provided shall be
entitled to indemnification and reimbursement of expenses to the same extent as
the Trustee is entitled to such amounts pursuant to subsection (a) and (b) of
this Section 8.06, without regard to subsection (c) of this Section 8.06.

          (e) The provisions of this Section 8.06 shall survive any termination
of this Agreement and the resignation or removal of the Trustee or the custodian
and shall be construed to include, but not be limited to any loss, liability or
expense under any environmental law.

     SECTION 8.07. Eligibility Requirements for Trustee

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     The Trustee hereunder shall, at all times, be a corporation or association
organized and doing business under the laws of a state or the United States of
America, authorized under such laws to exercise corporate trust powers having a
combined capital and surplus of at least $50,000,000, subject to supervision or
examination by federal or state authority and with a minimum rating of at least
(i) a long term deposit rating of at least "A2" by Moody's and "A" by S&P or
(ii) credit rating that would not cause any of the Rating Agencies to reduce
their respective ratings of any Class of Certificates below the ratings issued
on the Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.07 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.07, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.08 hereof. The corporation or
national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the NIMs Insurer and their respective
Affiliates; provided, however, that such corporation cannot be an Affiliate of
the Servicer.

     SECTION 8.08. Resignation and Removal of Trustee

     The Trustee may at any time resign and be discharged from the trusts hereby
created by (1) giving written notice of resignation to the Depositor and by
mailing notice of resignation by first class mail, postage prepaid, to the
Certificateholders at their addresses appearing on the Certificate Register and
each Rating Agency, not less than sixty (60) days before the date specified in
such notice when, subject to Section 8.09, such resignation is to take effect,
and (2) acceptance of appointment by a successor trustee acceptable to the NIMs
Insurer in accordance with Section 8.09 and meeting the qualifications set forth
in Section 8.07. If no successor trustee shall have been so appointed and have
accepted appointment within thirty (30) days after the giving of such notice or
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee.

     If at any time (i) the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.07 hereof and shall fail to resign after
written request thereto by the Depositor or the NIMs Insurer or (ii) the Trustee
shall become incapable of acting, or shall be adjudged as bankrupt or insolvent,
or a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may remove the Trustee and shall promptly appoint a successor trustee
by written instrument, in triplicate, one copy of which instrument shall be
delivered to the Trustee and one copy of which shall be delivered to the
successor trustee.

     The Holders evidencing at least 51% of the Voting Rights of all Classes of
Certificates, with the consent of the NIMs Insurer, or the NIMs Insurer upon
failure of the Trustee to perform its obligations hereunder, may at any time
remove the Trustee and the Depositor shall appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized (or by the NIMs Insurer), one complete
set of which instruments shall be delivered by the successor trustee to the
Servicer, one complete set to the Trustee so removed and one complete set to the
successor so appointed. Notice of any removal of the Trustee shall be given to
the NIMs Insurer and each Rating Agency by the successor trustee.

     Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.08 shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.09 hereof.

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     SECTION 8.09. Successor Trustee

     Any successor trustee appointed as provided in Section 8.08 hereof shall
execute, acknowledge and deliver to the Depositor and to its predecessor
trustee, the NIMs Insurer and the Servicer an instrument accepting such
appointment hereunder and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if originally named as trustee herein.

     No successor trustee shall accept appointment as provided in this Section
8.09 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.07 hereof and its appointment shall
not adversely affect the then current rating of the Certificates.

     Upon acceptance of appointment by a successor trustee as provided in this
Section 8.09, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates. If the Depositor fails to mail such
notice within ten (10) days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Depositor.

     SECTION 8.10. Merger or Consolidation of Trustee

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be eligible under the provisions of Section
8.07 hereof without the execution or filing of any paper or further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding (except for the execution of an assumption agreement where such
succession is not effected by operation of law).

     SECTION 8.11. Appointment of Co-Trustee or Separate Trustee

     Notwithstanding any other provisions of this Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Servicer and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee and the NIMs Insurer to act as co-trustee or co-trustees
jointly with the Trustee, or separate trustee or separate trustees, of all or
any part of the Trust Fund, and to vest in such Person or Persons, in such
capacity and for the benefit of the Certificateholders, such title to the Trust
Fund or any part thereof, whichever is applicable, and, subject to the other
provisions of this Section 8.11, such powers, duties, obligations, rights and
trusts as the Servicer and the Trustee may consider necessary or desirable. Any
such co-trustee or separate trustee shall be compensated by the Trust Fund and
subject to the written approval of the Servicer and the NIMs Insurer. The
Trustee shall not be liable for the actions of any co-trustee appointed with due
care; provided that the appointment of a co-trustee shall not relieve the
Trustee of its obligations hereunder. If the Servicer and the NIMs Insurer shall
not have joined in such appointment within fifteen (15) days after the receipt
by it of a request to do so, or in the case an Event of Default shall have
occurred and be continuing, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.07 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.09.

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<PAGE>

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

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

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

          (iii) The Trustee, with the consent of the NIMs Insurer, may at any
     time accept the resignation of or remove any separate trustee or
     co-trustee.

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

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

     SECTION 8.12. Tax Matters

     (a) It is intended that each of the REMICs provided for herein shall
constitute, and that the affairs of the Trust Fund shall be conducted so as to
allow each such REMIC to qualify as, a "real estate mortgage investment conduit"
as defined in and in accordance with the REMIC Provisions. It is also intended
that each of the Grantor Trusts provided for in Section 2.07 hereof shall
constitute, and that the affairs of the Trust Fund shall be conducted so as to
allow each such Grantor Trust to qualify as, a grantor trust under the
provisions of Subpart E, Part I of Subchapter J of the Code. In furtherance of
such intention, the Trustee covenants and agrees that it shall act as agent (and
the Trustee is hereby appointed to act as agent) on behalf of each of the REMICs
provided for herein and that in such capacity it shall: (a) prepare and file, or
cause to be prepared and filed, in a timely manner, a U.S. Real Estate Mortgage
Investment Conduit Income Tax Return (Form 1066 or any successor form adopted by
the Internal Revenue Service) and prepare and file or cause to be prepared and
filed with the Internal Revenue Service and applicable state or local tax
authorities income tax or information returns for each taxable year with

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respect to each of the REMICs and Grantor Trusts provided for herein, containing
such information and at the times and in the manner as may be required by the
Code or state or local tax laws, regulations, or rules, and furnish or cause to
be furnished to Certificateholders the schedules, statements or information at
such times and in such manner as may be required thereby; (b) within thirty (30)
days of the Closing Date, furnish or cause to be furnished to the Internal
Revenue Service, on Forms 8811 or as otherwise may be required by the Code, the
name, title, address, and telephone number of the person that the holders of the
Certificates may contact for tax information relating thereto, together with
such additional information as may be required by such Form, and update such
information at the time or times in the manner required by the Code for each of
the REMICs provided for herein; (c) make or cause to be made elections, on
behalf of each of the REMICs provided for herein to be treated as a REMIC on the
federal tax return of such REMICs for their first taxable years (and, if
necessary, under applicable state law); (d) prepare and forward, or cause to be
prepared and forwarded, to the Certificateholders and to the Internal Revenue
Service and, if necessary, state tax authorities, all information returns and
reports as and when required to be provided to them in accordance with the REMIC
Provisions or other applicable law, including without limitation, the
calculation of any original issue discount using the Prepayment Assumption; (e)
provide information necessary for the computation of tax imposed on the transfer
of a Class R Certificate to a Person that is not a Permitted Transferee, or an
agent (including a broker, nominee or other middleman) of a Person that is not a
Permitted Transferee, or a pass through entity in which a Person that is not a
Permitted Transferee is the record holder of an interest (the reasonable cost of
computing and furnishing such information may be charged to the Person liable
for such tax); (f) to the extent that they are under its control conduct the
affairs of each of the REMICs and Grantor Trusts provided for herein at all
times that any Certificates are outstanding so as to maintain the status of each
of the REMICs provided for herein as a REMIC under the REMIC Provisions and the
status of each of the Grantor Trusts provided for herein as a grantor trust
under Subpart E, Part I of Subchapter J of the Code; (g) not knowingly or
intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of any of the REMICs provided for herein or
result in the imposition of tax upon any such REMIC; (h) not knowingly or
intentionally take any action or omit to take any action that would cause the
termination of the grantor trust status under Subpart E, Part I of Subchapter J
of the Code of any of the Grantor Trusts provided for herein or result in the
imposition of tax upon any such Grantor Trust; (i) pay, from the sources
specified in the last paragraph of this Section 8.12(a), the amount of any
federal, state and local taxes, including prohibited transaction taxes as
described below, imposed on each of the REMICs provided for herein prior to the
termination of the Trust Fund when and as the same shall be due and payable (but
such obligation shall not prevent the Trustee or any other appropriate Person
from contesting any such tax in appropriate proceedings and shall not prevent
the Trustee from withholding payment of such tax, if permitted by law, pending
the outcome of such proceedings); (j) sign or cause to be signed federal, state
or local income tax or information returns; (k) maintain records relating to
each of the REMICs provided for herein, including but not limited to the income,
expenses, assets and liabilities of each of the REMICs and Grantor Trusts
provided for herein; and (l) as and when necessary and appropriate, represent
each of the REMICs provided for herein in any administrative or judicial
proceedings relating to an examination or audit by any governmental taxing
authority, request an administrative adjustment as to any taxable year of any of
the REMICs provided for herein, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of any of the REMICs provided for herein, and otherwise act on behalf
of each of the REMICs provided for herein in relation to any tax matter
involving any of such REMICs or any controversy involving the Trust Fund.

     In order to enable the Trustee to perform its duties as set forth herein,
the Depositor shall provide, or cause to be provided, to the Trustee within ten
(10) days after the Closing Date all information or data that the Trustee
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption

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<PAGE>

and projected cash flows of the Certificates and the Mortgage Loans. Thereafter,
the Depositor shall provide to the Trustee promptly upon written request
therefor, any such additional information or data that the Trustee may, from
time to time, request in order to enable the Trustee to perform its duties as
set forth herein. The Depositor hereby agrees to indemnify the Trustee for any
losses, liabilities, damages, claims or expenses of the Trustee arising from any
errors or miscalculations of the Trustee that result from any failure of the
Depositor to provide, or to cause to be provided, accurate information or data
to the Trustee on a timely basis.

     In the event that any tax is imposed on "prohibited transactions" of any of
the REMICs provided for herein as defined in Section 860F(a)(2) of the Code, on
the "net income from foreclosure property" of any of such REMICs as defined in
Section 860G(c) of the Code, on any contribution to the Trust Fund after the
Startup Day pursuant to Section 860G(d) of the Code, or any other tax is
imposed, if not paid as otherwise provided for herein, such tax shall be paid by
(i) the Trustee, if any such other tax arises out of or results from a breach by
the Trustee of any of its obligations under this Agreement or as a result of the
location of the Trustee, (ii) any party hereto (other than the Trustee) to the
extent any such other tax arises out of or results from a breach by such other
party of any of its obligations under this Agreement or as a result of the
location of such other party or (iii) in all other cases, or in the event that
any liable party here fails to honor its obligations under the preceding clauses
(i) or (ii), any such tax will be paid first with amounts (other than amounts
derived by the Issuing Entity from a payment on any Corridor Contract or amounts
received by the Supplemental Interest Trust as payments on the Swap Agreement or
Cap Contract) otherwise to be distributed to the Class R Certificateholders (pro
rata) pursuant to Section 4.04, and second with amounts (other than amounts
derived by the Issuing Entity from a payment on any Corridor Contract or amounts
received by the Supplemental Interest Trust as payments on the Swap Agreement or
Cap Contract) otherwise to be distributed to all other Certificateholders in the
following order of priority: first, to the Class C Certificates (pro rata),
second to the Class B-3 Certificates (pro rata), third to the Class B-2
Certificates (pro rata), fourth to the Class B-1 Certificates (pro rata), fifth
to the Class M-6 Certificates (pro rata), sixth to the Class M-5 Certificates
(pro rata), seventh to the Class M-4 Certificates (pro rata), eighth to the
Class M-3 Certificates (pro rata), ninth to the Class M-2 Certificates (pro
rata), tenth to the Class M-1 Certificates (pro rata) and eleventh to the Class
A Certificates (pro rata). Notwithstanding anything to the contrary contained
herein, to the extent that such tax is payable by the Class R Certificate, the
Trustee is hereby authorized pursuant to such instruction to retain on any
Distribution Date, from the Holders of the Class R Certificate (and, if
necessary, from the Holders of all other Certificates in the priority specified
in the preceding sentence), funds otherwise distributable to such Holders in an
amount sufficient to pay such tax. The Trustee agrees to promptly notify in
writing the party liable for any such tax of the amount thereof and the due date
for the payment thereof.

          (b) Each of the Depositor, the Servicer and the Trustee agrees not to
knowingly or intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of any of the REMICs provided for
herein or result in the imposition of a tax upon any of the REMICs provided for
herein.

                                   ARTICLE IX

                                   TERMINATION

     SECTION 9.01. Termination upon Liquidation or Repurchase of all Mortgage
Loans

          (a) Subject to Section 9.03, the obligations and responsibilities of
the Depositor, the Servicer and the Trustee created hereby with respect to the
Trust Fund shall terminate upon the earlier of

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(a) an Optional Termination and (b) the later of (i) the maturity or other
liquidation (or any Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property and (ii) the
distribution to Certificateholders of all amounts required to be distributed to
them pursuant to this Agreement, as applicable. In no event shall the trusts
created hereby continue beyond the earlier of (i) the expiration of 21 years
from the death of the last survivor of the descendants of Joseph P. Kennedy, the
late Ambassador of the United States to the Court of St. James's, living on the
date hereof and (ii) the Latest Possible Maturity Date.

          Notwithstanding the foregoing, in the event that the Trust Fund has
not been terminated prior to February 2037 and there are still Mortgage Loans
outstanding, then the Depositor will cause the Sponsor to purchase such Mortgage
Loans from the Trust Fund through a qualified liquidation under Section 860F of
the Code in compliance with Section 9.03.

          (b) On or before the Determination Date following the Initial Optional
Termination Date, the Trustee shall attempt to terminate the Trust Fund by
conducting an auction of all of the Mortgage Loans and REO Properties via a
solicitation of bids from at least three (3) bidders, each of which shall be a
nationally recognized participant in mortgage finance (the "Auction"). The
Depositor and the Trustee agree to work in good faith to develop bid procedures
in advance of the Initial Optional Termination Date to govern the operation of
the Auction. The Trustee shall be entitled to retain an investment banking firm
and/or other agents in connection with the Auction, the cost of which shall be
included in the Optional Termination Price (unless an Optional Termination does
not occur in which case such costs shall be an expense of the Trust Fund). The
Trustee shall accept the highest bid received at the Auction; provided that the
amount of such bid equals or exceeds the Optional Termination Price. The Trustee
shall determine the Optional Termination Price based upon information provided
by (a) the Servicer with respect to the amounts described in clauses (i) and
(ii) of the definition of "Optional Termination Price" and (b) the Depositor
with respect to the information described in clauses (iii) and (iv) of the
definition of "Optional Termination Price". The Trustee may conclusively rely
upon the information provided to it in accordance with the immediately preceding
sentence and shall not have any liability for the failure of any party to
provide such information. The Trustee shall notify the bidders of the estimated
Swap Termination Payment received by the Trustee from the Swap Counterparty and
that the winning bidder will be responsible for the final Swap Termination
Payment which may be higher than such estimated Swap Termination Payment. If the
Auction results in a winning bid, the Trustee shall immediately notify the Swap
Counterparty that an Optional Termination has occurred, the identity, location
and contact information with respect to the winning bidder and that final
distributions on the Certificates will be made on the immediately following
Distribution Date. Upon such notice, the Swap Counterparty shall inform the
Trustee in writing of the final Swap Termination Payment amount owed to the Swap
Counterparty and the Trustee shall communicate the final Swap Termination
Payment amount to the winning bidder.

     If an Optional Termination does not occur as a result of the Auction's
failure to achieve the Optional Termination Price or otherwise, the NIMS
Insurer, if any, may, on any Distribution Date following such Auction, at its
option, terminate the Trust Fund by purchasing all of the Mortgage Loans and REO
Properties at a price equal to the Optional Termination Price. If an Optional
Termination does not occur as a result of the Auction's failure to achieve the
Optional Termination Price and the NIMS Insurer fails to exercise its option to
purchase all of the Mortgage Loans, the Servicer may, on any Distribution Date
following such Auction, at its option, terminate the Trust Fund by purchasing
all of the Mortgage Loans and REO Properties at a price equal to the Optional
Termination Price. Upon the exercise of such option by the NIMs Insurer or the
Servicer, as the case may be, the Trustee shall immediately notify the Swap
Counterparty that an Optional Termination has occurred and that final
distributions on the Certificates will be made on the immediately following
Distribution Date. Upon such notice, the Swap Counterparty shall inform the
Trustee of the final Swap Termination Payment amount owed to the Swap
Counterparty. In connection with any such optional termination, the Optional
Termination Price shall be delivered to the Trustee no later than two Business
Days immediately preceding the related Distribution Date. Notwithstanding
anything to the contrary herein, the Optional Termination Amount paid to the
Trustee by the winning bidder at the Auction or by the Servicer (or an

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<PAGE>

Affiliate of the Servicer) shall be deposited by the Trustee directly into the
Certificate Account immediately upon receipt. Upon any termination as a result
of an Auction, the Trustee shall, out of the Optional Termination Amount
deposited into the Certificate Account, (x) reimburse the Trustee for its costs
and expenses necessary to conduct the Auction and any other unreimbursed amounts
owing to it and (y) pay to the Servicer, the aggregate amount of any
unreimbursed out-of-pocket costs and expenses owed to the Servicer and any
unpaid or unreimbursed Servicing Fees, Advances and Servicing Advances.
Notwithstanding anything herein to the contrary, only an amount equal to the
Optional Termination Price, reduced by the portion thereof consisting of the sum
of (x) any Swap Termination Payments and (y) the amount of any unpaid Net Swap
Payments that would not otherwise be funded by the Optional Termination Price
but for clause (iv) of the definition of "Optional Termination Price" (such
portion, the "Swap Optional Termination Payment"), shall be made available for
distribution to the Certificates. The Swap Optional Termination Payment shall be
withdrawn by the Trustee from the Certificate Account and remitted to the
Supplemental Interest Trust for payment to the Swap Counterparty, it being
understood that the Swap Termination Payment portion of such Swap Optional
Termination Payment shall be an amount equal to the actual Swap Termination
Payment amount determined by the Swap Counterparty upon its receipt of notice
from the Trustee of the Optional Termination of the Trust as described above in
this Section 9.01(b). The Swap Optional Termination Payment shall not be part of
any REMIC and shall not be paid into any account which is part of any REMIC.

          (c) Notwithstanding anything to the contrary in clause (b) above, in
the event that the Trustee receives the written opinion of a nationally
recognized participant in mortgage finance acceptable to the Sponsor that the
Mortgage Loans and REO Properties to be included in the Auction will not be
saleable at a price sufficient to achieve the Optional Termination Price, the
Trustee need not conduct the Auction. In such event, the Servicer shall have the
option to purchase the Mortgage Loans and REO Properties at the Optional
Termination Price as of the Initial Optional Termination Date; provided that the
Swap Optional Termination Payment portion of the Optional Termination Price
received pursuant to this clause (c) shall be paid in full in a manner
consistent with the requirements of clause (b) above.

     SECTION 9.02. Final Distribution on the Certificates

     If on any Determination Date, (i) the Trustee determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in the Collection Account, the Trustee shall send a final
distribution notice promptly to each Certificateholder and the NIMs Insurer or
(ii) the Trustee determines that a Class of Certificates shall be retired after
a final distribution on such Class, the Trustee shall notify the
Certificateholders as soon as practicable after such Determination Date that the
final distribution in retirement of such Class of Certificates is scheduled to
be made on the immediately following Distribution Date. Any final distribution
made pursuant to the immediately preceding sentence will be made only upon
presentation and surrender of the Certificates at the office of the Trustee
specified in such notice.

     Notice of any termination of the Trust Fund, specifying the Distribution
Date on which Certificateholders may surrender their Certificates for payment of
the final distribution and cancellation, shall be given promptly by the Trustee
by letter to Certificateholders mailed as soon as practicable after a
determination is made pursuant to the preceding paragraph (or with respect to an
Auction, mailed no later than one Business Day following completion of such
Auction). Any such notice shall specify (a) the Distribution Date upon which
final distribution on the Certificates will be made upon presentation and
surrender of Certificates at the office therein designated, (b) the location of
the office or agency at which such presentation and surrender must be made, and
(c) that the Record Date otherwise applicable to such Distribution Date is not
applicable, distributions being made only upon presentation and surrender of the
Certificates at the office therein specified. The Trustee will give such notice
the NIMs Insurer, the Swap

                                      -144-

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Counterparty, Cap Contract Counterparty and to each Rating Agency at the time
such notice is given to Certificateholders.

     In the event such notice is given, the Servicer shall remit all funds in
the Collection Account to the Trustee for deposit in the Certificate Account on
the Servicer Remittance Date in an amount equal to the final distribution in
respect of the Certificates. Upon such final deposit and the receipt by the
Trustee or the custodian of a Request for Release therefor, the Trustee or the
custodian shall promptly release to the Mortgage Files for the Mortgage Loans.

     Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to Certificateholders of each Class the amounts
allocable to such Certificates held in the Certificate Account in the order and
priority set forth in Section 4.04 hereof on the final Distribution Date and in
proportion to their respective Percentage Interests.

     In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all the applicable Certificates shall not
have been surrendered for cancellation, the Trustee may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets that remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Class R Certificateholders
shall be entitled to all unclaimed funds and other assets of the Trust Fund that
remain subject hereto. Upon payment to the Class R Certificateholders of such
funds and assets, the Trustee shall not have any further duties or obligations
with respect thereto.

     SECTION 9.03. Additional Termination Requirements

          (a) In the event the Trustee or the Servicer completes an Optional
Termination as provided in Section 9.01 or the Sponsor purchases Mortgage Loans
pursuant to the last paragraph of Section 9.01(a), the Trust Fund shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been supplied with an Opinion of Counsel, at the expense of the NIMs
Insurer or Servicer, as applicable, to the effect that the failure of the
Issuing Entity to comply with the requirements of this Section 9.03 will not (i)
result in the imposition of taxes on "prohibited transactions" of any of the
REMICs provided for herein as defined in Section 860F of the Code, or (ii) cause
any of the REMICs provided for herein to fail to qualify as a REMIC at any time
that any Certificates are outstanding:

          (i) The Depositor shall establish a 90-day liquidation period and
     notify the Trustee thereof, and the Trustee shall in turn specify the first
     day of such period in a statement attached to the final tax returns of each
     of the REMICs provided for herein pursuant to Treasury Regulation Section
     1.860F-1. The Depositor shall satisfy all the requirements of a qualified
     liquidation under Section 860F of the Code and any regulations thereunder,
     as evidenced by an Opinion of Counsel obtained at the expense of the
     Servicer;

          (ii) During such 90-day liquidation period, and at or prior to the
     time of making the final payment on the Certificates, the Depositor as
     agent of the Trustee shall sell all of the assets of the Trust Fund for
     cash; and

          (iii) At the time of the making of the final payment on the
     Certificates, the Trustee shall distribute or credit, or cause to be
     distributed or credited, to the Class R Certificateholders

                                      -145-

<PAGE>

     all cash on hand (other than cash retained to meet outstanding claims), and
     the Trust Fund shall terminate at that time, whereupon the Trustee shall
     have no further duties or obligations with respect to sums distributed or
     credited to the Class R Certificateholders.

          (b) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to specify the 90-day liquidation period for the
Trust Fund, which authorization shall be binding upon all successor
Certificateholders.

          (c) The Trustee as agent for each REMIC hereby agrees to adopt and
sign such a plan of complete liquidation prepared and delivered to it by the
Depositor upon the written request of the Depositor, and the receipt of the
Opinion of Counsel referred to in Section 9.03(a) and to take such other action
in connection therewith as may be reasonably requested by the Depositor.

          (d) Notwithstanding any other terms of this Agreement, prior to any
termination of the Trust Fund, the Servicer may prepare a reconciliation of all
Advances and Servicing Advances made by it for which it has not been reimbursed
and a reasonable estimate of all additional Servicing Advances and other costs
for which it would be entitled to be reimbursed if the Trust Fund were not being
terminated, including without limitation, any Servicing Advances and other costs
arising under Section 6.03 (Limitation on Liability of the Depositor, the
Servicer and Others), and the Servicer may recover these Advances, Servicing
Advances and estimated Servicing Advances and other costs from the Collection
Account (to the extent that such recovery of Servicing Advances, estimated
Servicing Advances and other costs constitutes "unanticipated expenses" within
the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii)).

          (e) Notwithstanding any other terms of this Agreement, unless the
Servicer previously has notified the Trustee that it has entered into a
servicing agreement for the servicing after the termination date of the Trust
Fund assets, at least twenty (20) days prior to any termination of the Trust
Fund, the Trustee or the Depositor shall notify the Servicer in writing to
transfer the assets of the Trust Fund as of the termination date to the person
specified in the notice, or if such person is not then known, to continue
servicing the assets until the date that is twenty (20) days after the
termination date and on the termination date, the Trustee or the Depositor shall
notify the Servicer of the person to whom the assets should be transferred on
that date. In the latter event the Servicer shall be entitled to recover its
servicing fee and any advances made for the interim servicing period from the
collections on the assets which have been purchased from the Trust Fund and the
new owner of the assets, and the agreements for the new owner to obtain
ownership of the assets of the Trust Fund shall so provide.

                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

     SECTION 10.01. Amendment

     This Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer and without the
consent of any of the Certificateholders,

          (i) to cure any ambiguity or correct any mistake,

          (ii) to correct, modify or supplement any provision herein which may
     be inconsistent with the Prospectus Supplement or any other provision
     herein,

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<PAGE>

          (iii) to add any other provisions with respect to matters or questions
     arising under this Agreement, or

          (iv) to modify, alter, amend, add to or rescind any of the terms or
     provisions contained in this Agreement, provided, however, that, in the
     case of clauses (iii) and (iv), such amendment will not, as evidenced by an
     Opinion of Counsel addressed to the Trustee to such effect, adversely
     affect in any material respect the interests of any Holder; provided,
     further, however, that such amendment will be deemed to not adversely
     affect in any material respect the interest of any Holder if the Person
     requesting such amendment obtains a letter from each Rating Agency stating
     that such amendment will not result in a reduction or withdrawal of its
     rating of any Class of the Certificates, it being understood and agreed
     that any such letter in and of itself will not represent a determination as
     to the materiality of any such amendment and will represent a determination
     only as to the credit issues affecting any such rating. In addition, this
     Agreement may be amended from time to time by the Depositor, the Servicer
     and the Trustee without the consent of any of the Certificateholders and
     without delivery of an opinion of counsel to comply with the provisions of
     Regulation AB.

     Notwithstanding the foregoing, without the consent of the
Certificateholders, the Depositor, the Servicer and the Trustee may at any time
and from time to time amend this Agreement to modify, eliminate or add to any of
its provisions to such extent as shall be necessary or appropriate to maintain
the qualification of any of the REMICs provided for herein as REMICs under the
Code or to avoid or minimize the risk of the imposition of any tax on the Trust
Fund or any of the REMICs provided for herein pursuant to the Code that would be
a claim against the Trust Fund at any time prior to the final redemption of the
Certificates, provided that the Trustee and the NIMs Insurer shall have been
provided an Opinion of Counsel, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the Trustee
or the NIMs Insurer, to the effect that such action is necessary or appropriate
to maintain such qualification or to avoid or minimize the risk of the
imposition of such a tax.

     This Agreement may also be amended from time to time by the Depositor, the
Trustee, the Servicer, the Trustee and the Holders of the Certificates affected
thereby evidencing not less than 66 2/3% of the Voting Rights, with the consent
of the NIMs Insurer, for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Holders of Certificates; provided,
however, that no such amendment shall (i) reduce in any manner the amount of, or
delay the timing of, payments required to be distributed on any Certificate
without the consent of the Holder of such Certificate, (ii) adversely affect in
any material respect the interests of the Holders of any Class of Certificates
in a manner other than as described in (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% or more of the Voting Rights of
such Class or (iii) reduce the aforesaid percentages of Certificates the Holders
of which are required to consent to any such amendment without the consent of
the Holders of all such Certificates then outstanding. A copy of such Opinion of
Counsel shall be provided to the NIMs Insurer.

     Notwithstanding any contrary provision of this Agreement, the Trustee shall
not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the
Trustee, to the effect that such amendment will not cause the imposition of any
tax on the Trust Fund, any of the REMICs provided for herein or the
Certificateholders or cause any of the REMICs provided for herein to fail to
qualify as a REMIC at any time that any Certificates are outstanding.

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<PAGE>

     Promptly after the execution of any amendment to this Agreement requiring
the consent of Certificateholders, the Trustee shall furnish written
notification of the substance of such amendment to each Certificateholder, the
Swap Counterparty and each Rating Agency.

     It shall not be necessary for the consent of Certificateholders under this
Section to approve the particular form of any proposed amendment, but it shall
be sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents and of evidencing the authorization of the execution
thereof by Certificateholders shall be subject to such reasonable regulations as
the Trustee may prescribe.

     Nothing in this Agreement shall require the Trustee or the Servicer to
enter into an amendment without receiving an Opinion of Counsel, satisfactory to
the Trustee or the Servicer that (i) such amendment is permitted and is not
prohibited by this Agreement and that all requirements for amending this
Agreement have been complied with; and (ii) either (A) the amendment does not
adversely affect in any material respect the interests of any Certificateholder
or (B) the conclusion set forth in the immediately preceding clause (A) is not
required to be reached pursuant to this Section 10.01.

     The Trustee may, but shall not be obligated to, enter into any supplement,
modification or waiver which affects its rights, duties or obligations
hereunder.

     The Trustee shall not enter into any amendment to this Agreement that could
have a materially adverse effect on the Swap Counterparty or the Cap Contract
Counterparty without first obtaining the prior written consent of the Swap
Counterparty or the Cap Contract Counterparty, as applicable.

     Notwithstanding anything to the contrary in this Section 10.01, the Trustee
and the Servicer shall reasonably cooperate with the Depositor and its counsel
to enter into such amendments or modifications to this Agreement as may be
necessary to comply with Regulation AB and any interpretation thereof by the
Commission.

     SECTION 10.02. Counterparts

     This Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
such counterparts shall constitute but one and the same instrument.

     SECTION 10.03. Governing Law

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO
BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

     SECTION 10.04. Intention of Parties

     It is the express intent of the parties hereto that the conveyance of the
Mortgage Notes, Mortgages, assignments of Mortgages, title insurance policies
and any modifications, extensions and/or assumption agreements and private
mortgage insurance policies relating to the Mortgage Loans by the Depositor to
the Trustee be, and be construed as, an absolute sale thereof to the Trustee. It
is, further, not the intention of the parties that such conveyance be deemed a
pledge thereof by the Depositor to the

                                      -148-

<PAGE>

Trustee. However, in the event that, notwithstanding the intent of the parties,
such assets are held to be the property of the Depositor, or if for any other
reason this Agreement is held or deemed to create a security interest in such
assets, then (i) this Agreement shall be deemed to be a security agreement
within the meaning of the Uniform Commercial Code of the State of New York and
(ii) the conveyance provided for in this Agreement shall be deemed to be an
assignment and a grant by the Depositor to the Trustee, for the benefit of the
Certificateholders, of a security interest in all of the assets that constitute
the Trust Fund, whether now owned or hereafter acquired.

     The Depositor for the benefit of the Certificateholders shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
assets of the Trust Fund, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of the Agreement. The Depositor shall
arrange for filing any Uniform Commercial Code continuation statements in
connection with any security interest granted or assigned to the Trustee for the
benefit of the Certificateholders.

     SECTION 10.05. Notices

          (a) The Trustee shall use its best efforts to promptly provide notice
to the NIMs Insurer, the Swap Counterparty, the Cap Contract Counterparty and
each Rating Agency with respect to each of the following of which it has actual
knowledge:

          (i) Any material change or amendment to this Agreement;

          (ii) The occurrence of any Event of Default that has not been cured;

          (iii) The resignation or termination of the Trustee or the Servicer
     and the appointment of any successor;

          (iv) The repurchase or substitution of Mortgage Loans pursuant to
     Sections 2.02, 2.03 and 3.12;

          (v) The final payment to Certificateholders; and

          (vi) Any change in the location of the Certificate Account.

          (b) The Trustee shall promptly furnish or make available to each
Rating Agency copies of the following:

          (i) Each report to Certificateholders described in Section 4.05;

          (ii) Each annual statement as to compliance described in Section 3.17;
     and

          (iii) Each annual independent public accountants' servicing report
     described in Section 3.18.

All directions, demands and notices hereunder shall be in writing and shall be
deemed to have been duly given when delivered to (a) in the case of the
Depositor, Merrill Lynch Mortgage Investors, Inc. 250 Vesey Street, 4 World
Financial Center, 10th Floor, New York, New York 10080, Attention: Asset-Backed
Finance; (b) in the case of the Rating Agencies, (i) Standard & Poor's Ratings
Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New
York, New York 10041and (ii) Moody's

                                      -149-

<PAGE>

Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007;
(c) in the case of the Servicer, Wilshire Credit Corporation, 14523 S.W.
Millikan Way, Suite 200, Beaverton, Oregon 97005, Attention: V.P. Client
Services; (d) in the case of the Trustee, LaSalle Bank National Association, 135
South LaSalle Street, Suite 1511, Chicago, Illinois 60603 Attention: Global
Securities and Trust Services--MLMI 2007-HE1; (e) in the case of the Swap
Counterparty or the Cap Contract Counterparty: The Royal Bank of Scotland, c/o
Greenwich Capital Markets, Inc., 600 Steamboat Road, Greenwich, CT 06830, Attn:
Legal Department; and in the case of any of the foregoing persons, such other
addresses as may hereafter be furnished by any such persons to the other parties
to this Agreement. Notices to Certificateholders shall be deemed given when
mailed, first class postage prepaid, to their respective addresses appearing in
the Certificate Register.

     SECTION 10.06. Severability of Provisions

     If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

     SECTION 10.07. Assignment

     Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Servicer without the prior written consent of the Trustee and Depositor;
provided, however, the Servicer is hereby authorized to enter into an Advance
Facility under which (l) the Servicer sells, assigns or pledges to an Advancing
Person the Servicer's rights under this Agreement to be reimbursed for any
Advances or Servicing Advances and/or (2) an Advancing Person agrees to fund
some or all Advances or Servicing Advances required to be made by the Servicer
pursuant to this Agreement. No consent of the Trustee, Certificateholders or any
other party is required before the Servicer may enter into an Advance Facility.
Notwithstanding the existence of any Advance Facility under which an Advancing
Person agrees to fund Advances and/or Servicing Advances on the Servicer's
behalf, the Servicer shall remain obligated pursuant to this Agreement to make
Advances and Servicing Advances pursuant to and as required by this Agreement,
and shall not be relieved of such obligations by virtue of such Advance
Facility.

     Reimbursement amounts shall consist solely of amounts in respect of
Advances and/or Servicing Advances made with respect to the Mortgage Loans for
which the Servicer would be permitted to reimburse itself in accordance with
this Agreement, assuming the Servicer had made the related Advance(s) and/or
Servicing Advance(s).

     The Servicer shall maintain and provide to any successor Servicer a
detailed accounting on a loan by loan basis as to amounts advanced by, pledged
or assigned to, and reimbursed to any Advancing Person. The successor Servicer
shall be entitled to rely on any such information provided by the predecessor
Servicer, and the successor Servicer shall not be liable for any errors in such
information.

     An Advancing Person who purchases or receives an assignment or pledge of
the rights to be reimbursed for Advances and/or Servicing Advances, and/or whose
obligations hereunder are limited to the funding of Advances and/or Servicing
Advances shall not be required to meet the criteria for qualification of a
Subservicer set forth in this Agreement.

     The documentation establishing any Advance Facility shall require that such
reimbursement amounts distributed with respect to each Mortgage Loan be
allocated to outstanding unreimbursed

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<PAGE>

Advances or Servicing Advances (as the case may be) made with respect to that
Mortgage Loan on a "first in, first out" (FIFO) basis. Such documentation shall
also require the Servicer to provide to the related Advancing Person or its
designee loan by loan information with respect to each such reimbursement amount
distributed to such Advancing Person or Advance Facility trustee on each
Distribution Date, to enable the Advancing Person or Advance Facility trustee to
make the FIFO allocation of each such reimbursement amount with respect to each
Mortgage Loan. The Servicer shall remain entitled to be reimbursed by the
Advancing Person or Advance Facility trustee for all Advances and Servicing
Advances funded by the Servicer to the extent the related rights to be
reimbursed therefor have not been sold, assigned or pledged to an Advancing
Person.

     Any amendment to this Section 10.07 or to any other provision of this
Agreement that may be necessary or appropriate to effect the terms of an Advance
Facility as described generally in this Section 10.07, including amendments to
add provisions relating to a successor Servicer, may be entered into by the
Trustee and the Servicer, without the consent of any Certificateholder
notwithstanding anything to the contrary in this Agreement, upon receipt by the
Trustee of an Opinion of Counsel that such amendment has no material adverse
effect on the Certificateholders or written confirmation from the Rating
Agencies that such amendment will not adversely affect the ratings on the
Certificates. Prior to entering into an Advance Facility, the Servicer shall
notify the lender under such facility in writing that: (a) the Advances financed
by and/or pledged to the lender are obligations owed to the Servicer on a non
recourse basis payable only from the cash flows and proceeds received under this
Agreement for reimbursement of Advances only to the extent provided herein, and
the Trustee and the Trust Fund are not otherwise obligated or liable to repay
any Advances financed by the lender; (b) the Servicer will be responsible for
remitting to the lender the applicable amounts collected by it as reimbursement
for Advances funded by the lender, subject to the restrictions and priorities
created in this Agreement; and (c) the Trustee shall not have any responsibility
to track or monitor the administration of the financing arrangement between the
Servicer and the lender.

     SECTION 10.08. Limitation on Rights of Certificateholders

     The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representative or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a petition or winding up of the Trust
Fund, or otherwise affect the rights, obligations and liabilities of the parties
hereto or any of them.

     No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

     No Certificateholder shall have any right by virtue or by availing itself
of any provisions of this Agreement to institute any suit, action or proceeding
in equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, the Holders
of Certificates evidencing not less than 25% of the Voting Rights evidenced by
the Certificates shall also have made written request to the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
and shall have offered to the Trustee (individually and as trustee) such
indemnity satisfactory to it as it may require against the costs, expenses, and
liabilities to be incurred therein or thereby, and the Trustee, for sixty (60)
days after its receipt of such notice, request and offer of indemnity shall have

                                      -151-

<PAGE>

neglected or refused to institute any such action, suit or proceeding; it being
understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more Holders of Certificates shall have any right in any manner whatever
by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the Certificates and/or the NIMs Insurer, or to obtain or seek to obtain
priority over or preference to any other such Holder and/or the NIMs Insurer or
to enforce any right under this Agreement, except in the manner herein provided
and for the common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section 10.08, each and every
Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

     SECTION 10.09. Inspection and Audit Rights

     The Servicer agrees that, on reasonable prior notice, it will permit any
representative of the Depositor or the Trustee during the Servicer's normal
business hours, to examine all the books of account, records, reports and other
papers of the Servicer relating to the Mortgage Loans to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants selected by the Depositor or the Trustee and to discuss its
affairs, finances and accounts relating to the Mortgage Loans with its officers,
employees, agents, counsel and independent public accountants (and by this
provision the Servicer hereby authorizes such accountants to discuss with such
representative such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested. Any out-of-pocket expense
incident to the exercise by the Depositor or the Trustee of any right under this
Section 10.09 shall be borne by the party requesting such inspection (except in
the case of the Trustee in which case such expenses shall be borne by the
requesting Certificateholder(s)); all other such expenses shall be borne by the
Servicer.

     SECTION 10.10. Certificates Nonassessable and Fully Paid

     It is the intention of the Depositor that Certificateholders shall not be
personally liable for obligations of the Issuing Entity, that the interests in
the Issuing Entity represented by the Certificates shall be nonassessable for
any reason whatsoever, and that the Certificates, upon due authentication
thereof by the Authenticating Agent pursuant to this Agreement, are and shall be
deemed fully paid.

     SECTION 10.11. Compliance with Regulation AB

     Each of the parties hereto acknowledges and agrees that the purpose of
Sections 3.17, 3.18 and 3.20 of this Agreement is to facilitate compliance by
the Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that (a) the
obligations of the parties hereunder shall be interpreted in such a manner as to
accomplish compliance with Regulation AB, (b) the parties' obligations hereunder
will be supplemented and modified as necessary to be consistent with any such
amendments, interpretive advice or guidance, or convention or consensus among
active participants in the asset-backed securities markets in respect of the
requirements of Regulation AB and (c) the parties shall comply with reasonable
requests made by the Depositor for delivery of additional or different
information as the Depositor may determine in good faith is necessary to comply
with the provisions of Regulation AB, provided that such information is
available to such party without unreasonable effort or expense and within such
timeframe as may be reasonably requested.

     SECTION 10.12. Third Party Rights

     The Cap Contract Counterparty and Swap Counterparty shall be deemed third
party beneficiaries of this Agreement regarding provisions related to or
affecting payments owed to the Cap Contract

                                      -152-

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Counterparty or Swap Counterparty, respectively, so long as any of the Corridor
Contracts, the Cap Contract or the Swap Agreement, as applicable, remains in
effect.

     SECTION 10.13. Additional Rights of the NIMs Insurer

     Each party to this Agreement, any agent thereof and any successor thereto
shall furnish to the NIMs Insurer a copy of any notice, direction, demand,
opinion, schedule, list, certificate, report, statement, filing, information,
data or other communication provided by it or on its behalf to any other Person
pursuant to this Agreement at the same time, in the same form and in the same
manner as such communication is so provided and shall address or cause such
communication to be addressed to the NIMs Insurer in addition to any other
addressee thereof. The Servicer shall cause the NIMs Insurer to be an addressee
of any report furnished pursuant to this Agreement. With respect to the Trustee,
such obligation shall be satisfied with the provision of access to the NIMs
Insurer to the Trustee's website.

     Wherever in this Agreement there shall be a requirement that there be no
downgrade, reduction, withdrawal or qualification of or other effect on the
rating of any Class of Certificates by any Rating Agency as of any date, there
also shall be deemed to be a requirement that there be no such effect on any
Class of notes issued pursuant to the Indenture and guaranteed by the NIMs
Insurer as of such date. In addition, unless there exists a continuance of any
failure by the NIMs Insurer to make a required payment under the policy insuring
the NIM Notes (such event, a "NIMs Insurer Default"), wherever in this Agreement
there shall be a requirement that any Person or any communication, object or
other matter be acceptable or satisfactory to or otherwise receive the consent
or other approval of any other Person (whether as a condition to the eligibility
of such Person to act in any capacity, as a condition to any circumstance or
state of affairs related to such matter, or otherwise), there also shall be
deemed to be a requirement that such Person or matter be approved in writing by
the NIMs Insurer, which approval shall not be unreasonably withheld or delayed.

     SECTION 10.14. [RESERVED]

                                      -153-

<PAGE>

     IN WITNESS WHEREOF, the Depositor, the Trustee and the Servicer have caused
their names to be signed hereto by their respective officers thereunto duly
authorized as of the day and year first above written.

                                        MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                        as Depositor

                                        By:
                                            ------------------------------------
                                        Name: Paul Park
                                        Title: Authorized Signatory

                                        LASALLE BANK NATIONAL ASSOCIATION
                                        as Trustee

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

                                        WILSHIRE CREDIT CORPORATION,
                                        as Servicer

                                        By::
                                             -----------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                                       A-1

<PAGE>

                          FORM OF CLASS A CERTIFICATES

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NONE OF THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT AND THE CAP CONTRACT, EACH
TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A
DEFINITIVE CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE
IS NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE
BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR
(B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS CERTIFICATE IS COVERED BY
AND EXEMPT UNDER ANY OF SECTION 408(B)(17) OF ERISA OR SECTION 4975(D)(20) OF
THE CODE, PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE
91-38, PTCE 95-60, OR PTCE 96-23, EACH AS AMENDED.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                             CLASS A-[_____] CERTIFICATE

<TABLE>
<S>                               <C>
Number: 07-HE1-A-[_____]-1        Original Denomination:
                                  $[__________]

Cut-off Date: February 1, 2007    Last Scheduled
                                  Distribution Date: February 25, 2037

First Distribution Date:          Aggregate Initial Certificate
March 26, 2007                    Balance of all Class A-[_____]
                                  Certificates:  $[__________]

Pass-Through Rate: Variable(1)   CUSIP: [_____]
</TABLE>

----------
(1)  Subject to a cap as described in the Agreement.

                                       A-2

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

evidencing an ownership interest in distributions allocable to the
Class A-[_____] Certificates with respect to a pool of conventional, sub-prime
mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class A-[_____] Certificates) in certain
distributions with respect to a pool of conventional, sub-prime mortgage loans
(the "Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Wilshire Credit Corporation (the "Servicer") and
are secured by first-lien or second-lien mortgages on the Mortgaged Properties.
The Trust Fund was created pursuant to a pooling and servicing agreement (the
"Agreement"), dated as of February 1, 2007, among the Depositor, the Servicer
and LaSalle Bank National Association, as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, Class A-[_____] (the "Class A-[_____]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in March 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date (as defined in the Pooling and Servicing
Agreement).

     Distributions on this Certificate will be made either by check mailed to
the address of the person entitled to distributions as it appears on the
Certificate Register or, in the case of any certificateholder that has so
notified the Trustee in writing in accordance with the Agreement, by wire
transfer in immediately available funds to the account of such certificateholder
at a bank or other depository institution having appropriate wire transfer
facilities; provided, however, that the final distribution in retirement of the
certificates will be made only upon presentation and surrender of this
Certificate at the office of the Trustee or such other address designated in
writing by the Trustee. On each Distribution Date, a Holder

                                       A-3

<PAGE>

of this Certificate will receive such holder's Percentage Interest of the
amounts required to be distributed with respect to the applicable Class of
Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

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

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       A-4

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: March 8, 2007                    LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the  within- mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

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

                                       A-5

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, issued in one or more Classes of Class A
Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner other than as described in clause (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% or more of the Voting Rights of
such Class or

                                       A-6

<PAGE>

(iii) change the percentage specified in clause (ii) of the third paragraph of
Section 10.01 of the Agreement, without the consent of the Holders of all
Certificates of such Class then outstanding.

     The Class A-[_____] Certificates are issuable only in registerable form, in
minimum denominations of $25,000 in initial Certificate Principal Amount and in
integral multiples of $1 in excess thereof, registered in the name of the
nominee of the Clearing Agency, which shall maintain such Certificates through
its book-entry facilities.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC") in a tiered REMIC
structure. The REMIC Regular Interests will represent "regular interests" in one
of the REMICs included in the Trust Fund. The Class R Certificate will represent
the sole class of "residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                       A-7

<PAGE>

                              [FORM OF ASSIGNMENT]
  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:
       ------------------------------   ----------------------------------------
(Signature guaranty)                    NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                       A-8

<PAGE>

                          FORM OF CLASS M CERTIFICATES

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NONE OF THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT AND THE CAP CONTRACT, EACH
TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A
DEFINITIVE CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE
IS NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE
BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR
(B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS CERTIFICATE IS COVERED BY
AND EXEMPT UNDER ANY OF SECTION 408(B)(17) OF ERISA OR SECTION 4975(D)(20) OF
THE CODE, PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE
91-38, PTCE 95-60, OR PTCE 96-23, EACH AS AMENDED.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                             CLASS M-[_____] CERTIFICATE

<TABLE>
<S>                               <C>
Number: 07-HE1-M-[_____]-1        Original Denomination:
                                  $[__________]

Cut-off Date: February 1, 2007    Last Scheduled
                                  Distribution Date: February 25, 2037

First Distribution Date:          Aggregate Initial Certificate
March 26, 2007                    Balance of all Class M-[_____]
                                  Certificates: $[__________]

Pass-Through Rate: Variable(2)    CUSIP: [_____]
</TABLE>

----------
(2)  Subject to a cap as described in the Agreement.

                                       A-9

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

evidencing an ownership interest in distributions allocable to the
Class M-[_____] Certificates with respect to a pool of conventional, sub-prime
mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class M-[_____] Certificates) in certain
distributions with respect to a pool of conventional, sub-prime mortgage loans
(the "Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Wilshire Credit Corporation (the "Servicer") and
are secured by first-lien or second-lien mortgages on the Mortgaged Properties.
The Trust Fund was created pursuant to a pooling and servicing agreement (the
"Agreement"), dated as of February 1, 2007, among the Depositor, the Servicer
and LaSalle Bank National Association, as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, Class M-[_____] (the "Class M-[_____]
Certificates") and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which Agreement such Holder is
bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in March 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date (as defined in the Pooling and Servicing
Agreement).

     Distributions on this Certificate will be made either by check mailed to
the address of the person entitled to distributions as it appears on the
Certificate Register or, in the case of any certificateholder that has so
notified the Trustee in writing in accordance with the Agreement, by wire
transfer in immediately available funds to the account of such certificateholder
at a bank or other depository institution having appropriate wire transfer
facilities; provided, however, that the final distribution in retirement of the
certificates will be made only upon presentation and surrender of this
Certificate at the office of the Trustee or such other address designated in
writing by the Trustee. On each Distribution Date, a Holder

                                      A-10

<PAGE>

of this Certificate will receive such holder's Percentage Interest of the
amounts required to be distributed with respect to the applicable Class of
Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

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

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-11

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: March 8, 2007                    LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

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

                                      A-12

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, issued in one or more Classes of Class A
Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner other than as described in clause (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% or more of the Voting Rights of
such Class or

                                      A-13

<PAGE>

(iii) change the percentage specified in clause (ii) of the third paragraph of
Section 10.01 of the Agreement, without the consent of the Holders of all
Certificates of such Class then outstanding.

     The Class M-[___] Certificates are issuable only in registerable form, in
minimum denominations of $25,000 in initial Certificate Principal Amount and in
integral multiples of $1 in excess thereof, registered in the name of the
nominee of the Clearing Agency, which shall maintain such Certificates through
its book-entry facilities.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC") in a tiered REMIC
structure. The REMIC Regular Interests will represent "regular interests" in one
of the REMICs included in the Trust Fund. The Class R Certificate will represent
the sole class of "residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-14

<PAGE>

                              [FORM OF ASSIGNMENT]
  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:
       ------------------------------   ----------------------------------------
(Signature guaranty)                    NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-15

<PAGE>

                          FORM OF CLASS B CERTIFICATES

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED AND (II) AN INTEREST IN NOTIONAL PRINCIPAL
CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE, OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NONE OF THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY MLMI, THE
TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

UNTIL THE TERMINATION OF THE SWAP AGREEMENT AND THE CAP CONTRACT, EACH
TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A
DEFINITIVE CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE
IS NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE
BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR
(B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS CERTIFICATE IS COVERED BY
AND EXEMPT UNDER ANY OF SECTION 408(B)(17) OF ERISA OR SECTION 4975(D)(20) OF
THE CODE, PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE
91-38, PTCE 95-60, OR PTCE 96-23, EACH AS AMENDED.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                             CLASS B-[_____] CERTIFICATE

<TABLE>
<S>                               <C>
Number: 07-HE1-B-[_____]-1        Original Denomination:
                                  $[__________]

Cut-off Date: February 1, 2007    Last Scheduled
                                  Distribution Date: February 25, 2037

First Distribution Date:          Aggregate Initial Certificate
March 26, 2007                    Balance of all Class B-[_____]
                                  Certificates: $[__________]

Pass-Through Rate: Variable(3)    CUSIP: [______]
</TABLE>

----------
(3)  Subject to a cap as described in the Agreement.

                                      A-16

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

evidencing an ownership interest in distributions allocable to the Class B-[ ]
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     Unless this Certificate is presented by an authorized representative of the
Depository Trust Company, a New York corporation ("DTC"), to the Trustee for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest
herein.

     This certifies that CEDE & CO. is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class A Certificates) in certain distributions with
respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Wilshire Credit Corporation (the "Servicer") and are
secured by first-lien or second-lien mortgages on Mortgaged Properties. The
Trust Fund was created pursuant to a pooling and servicing agreement (the
"Agreement"), dated as of February 1, 2007, between the Depositor, the Servicer
and LaSalle Bank National Association, as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, Class B-[__] (the "Class B-[__] Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in March 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date (as defined in the Pooling and Servicing
Agreement).

     Distributions on this Certificate will be made either by check mailed to
the address of the person entitled to distributions as it appears on the
Certificate Register or, in the case of any Certificateholder that has so
notified the Trustee in writing in accordance with the Agreement, by wire
transfer in immediately available funds to the account of such Certificateholder
at a bank or other depository institution having appropriate wire transfer
facilities; provided, however, that the final distribution in retirement of the
certificates will be made only upon presentation and surrender of this
Certificate at the office of the Trustee or such other address designated in
writing by the Trustee. On each Distribution

                                      A-17

<PAGE>

Date, a Holder of this Certificate will receive such Holder's Percentage
Interest of the amounts required to be distributed with respect to the
applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates and of transfers and
exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Trustee, or, if an Authenticating
Agent has been appointed under the Agreement, the Authenticating Agent,
maintained for such purpose, the Trustee, will, subject to the limitations set
forth in the Agreement, authenticate and deliver, in the name of the designated
transferee or transferees, a Certificate of a like class and dated the date of
authentication by the Authenticating Agent. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee,
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Trustee, for that
purpose and specified in such notice of final distribution.

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

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-18

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: March 8, 2007                    LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

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

                                      A-19

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 SERIES 2007-HE1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, issued in one or more Classes of Class A
Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner other than as described in clause (i), without the consent of the

                                      A-20

<PAGE>

Holders of Certificates of such Class evidencing 66 2/3% or more of the Voting
Rights of such Class or (iii) change the percentage specified in clause (ii) of
the third paragraph of Section 10.01 of the Agreement, without the consent of
the Holders of all Certificates of such Class then outstanding.

     The Class B-[__] Certificates are issuable only in registerable form, in
minimum denominations of $25,000 in initial Certificate Principal Amount and in
integral multiples of $1 in excess thereof, registered in the name of the
nominee of the Clearing Agency, which shall maintain such Certificates through
its book-entry facilities.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC") in a tiered REMIC
structure. The REMIC Regular Interests will represent "regular interests" in one
of the REMICs included in the Trust Fund. The Class R Certificate will represent
the sole class of "residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-21

<PAGE>

                              [FORM OF ASSIGNMENT]

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________________________________  Attorney to
transfer the within Certificate on the books kept for the registration thereof,
with full power of substitution in the premises.

Dated:
       ------------------------------   ---------------------------------------
(Signature guaranty)                    NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

     (*This information, which is voluntary, is being requested to ensure that
the assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-22

<PAGE>

                           FORM OF CLASS C CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
IN A GRANTOR TRUST THAT HOLDS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND IS
TREATED AS HAVING ENTERED INTO CERTAIN NOTIONAL PRINCIPAL CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NONE OF THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED
HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CLASS C CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN TRANSACTIONS
WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER APPLICABLE STATE LAW
AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY STATE, LOCAL,
FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS
OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT
IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL
ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED
AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A
DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND
UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE
ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL
NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE NIMS INSURER,
THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE NIMS INSURER, THE TRUSTEE, THE
SERVICER OR THE DEPOSITOR.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE.

                                      A-23

<PAGE>

                               CLASS C CERTIFICATE

<TABLE>
<S>                                       <C>
Number: 07-HE1-C-1                        Percentage Interest:
                                          100%

Cut-off Date: February 1, 2007

First Distribution Date: March 26, 2007

Pass-Through Rate: Variable                CUSIP: 59024E AQ 0
</TABLE>

                                      A-24

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 SERIES 2007-HE1

evidencing an ownership interest in distributions allocable to the Class C
Certificates with respect a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
nominee for Merrill Lynch Funding Corp, is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class C Certificates) in certain distributions with
respect a pool of conventional, sub-prime mortgage loans (the "Mortgage Loans")
formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter called
the "Depositor"), and certain other property held in trust for the benefit of
Certificateholders (collectively, the "Trust Fund"). The Mortgage Loans are
serviced by Wilshire Credit Corporation (the "Servicer") and are secured by
first or second-lien mortgages on the Mortgaged Properties. The Trust Fund was
created pursuant to a pooling and servicing agreement (the "Agreement"), dated
as of February 1, 2007, among the Depositor, the Servicer and LaSalle Bank
National Association, as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

This Certificate is one of a duly authorized issue of Certificates, designated
as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, Class C (the "Class C Certificates") and is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which Agreement such Holder is bound.

The Class A Certificates, the Class M Certificates, the Class B Certificates,
the Class P Certificates and the Class C Certificates are collectively referred
to herein as the "Certificates."

Pursuant to the terms of the Agreement, the Trustee will distribute from funds
in the Certificate Account the amounts described in the Agreement on the 25th
day of each month or, if such 25th day is not a Business Day, the Business Day
immediately following (the "Distribution Date"), commencing in March 2007. Such
distributions will be made to the Person in whose name this Certificate is
registered on the Record Date (as defined in the Pooling and Servicing
Agreement).

Distributions on this Certificate will be made either by check mailed to the
address of the person entitled to distributions as it appears on the Certificate
Register or, in the case of any certificateholder that has so notified the
Trustee in writing in accordance with the Agreement, by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities;
provided, however, that the final distribution in retirement of the certificates
will be made only upon presentation and surrender of this Certificate at the
office of the Trustee or such other address designated in writing by the
Trustee. On each Distribution Date, a holder of this Certificate will receive
such holder's Percentage Interest of the amounts required to be distributed with
respect to the applicable Class of Certificates.

The Trustee will maintain or cause to be maintained a Certificate Register in
which, subject to such reasonable regulations as it may prescribe, the Trustee
will provide for the registration of Certificates and of transfers and exchanges
of Certificates. Upon surrender for registration of transfer of any Certificate
at any office or agency of the Trustee, or, if an Authenticating Agent has been
appointed under the Agreement, the Authenticating Agent, maintained for such
purpose, the Trustee, will, subject to the

                                      A-25

<PAGE>

limitations set forth in the Agreement, authenticate and deliver, in the name of
the designated transferee or transferees, a Certificate of a like class and
dated the date of authentication by the Authenticating Agent. Notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Trustee, of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee, for that purpose and specified in such notice of final
distribution.

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

Unless the certificate of authentication has been executed by the Authenticating
Agent, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.

                                      A-26

<PAGE>

IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

Dated: March 8, 2007                    LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

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

                                      A-27
<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

This Certificate is one of a duly authorized issue of Certificates, designated
as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, issued in one or more Classes of Class A
Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to a pool of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

Following the initial issuance of the Certificates, the principal balance of
this Certificate will be different from the Original Denomination shown above.
Anyone acquiring this Certificate may ascertain its current principal balance by
inquiry of the Trustee.

The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is
made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

No service charge will be made to the Holder for any transfer or exchange of the
Certificate, but the Trustee may require payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

The Agreement may be amended from time to time by the Depositor, the Servicer
and the Trustee, without the consent of any of the Certificateholders, to cure
any ambiguity, to correct or supplement any provisions therein which may be
inconsistent with the other provisions therein, to ensure continuing treatment
of each REMIC included in the Trust Fund as a REMIC, or to make any other
provisions with respect to matters or questions arising under the Agreement
which are not materially inconsistent with the provisions of the Agreement,
provided that such action does not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Certificateholder.

The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner other than as described in clause (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% or more of the Voting Rights of
such Class or (iii) change the percentage specified in clause (ii) of the third
paragraph of Section 10.01 of the Agreement, without the consent of the Holders
of all Certificates of such Class then outstanding.

                                      A-28

<PAGE>

For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC") in a tiered REMIC
structure. The REMIC Regular Interests will represent "regular interests" in one
of the REMICs included in the Trust Fund. The Class R Certificate will represent
the sole class of "residual interest" in each of the REMICs.

The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-29

<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

_________________________________________________________  Attorney to transfer
the within Certificate on the books kept for the registration thereof, with full
power of substitution in the premises.

Dated:
       ------------------------------   ----------------------------------------
(Signature guaranty)                    NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-30

<PAGE>

                           FORM OF CLASS P CERTIFICATE

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF
THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CLASS P CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN TRANSACTIONS
WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER APPLICABLE STATE LAW
AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY STATE, LOCAL,
FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS
OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT
IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL
ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED
AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A
DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND
UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE
ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL
NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE NIMS INSURER,
THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE NIMS INSURER, THE TRUSTEE, THE
SERVICER OR THE DEPOSITOR.

                                      A-31

<PAGE>

                               CLASS P CERTIFICATE

<TABLE>
<S>                                       <C>
Number: 07-HE1-P-1                        Percentage Interest: 100%

Cut-off Date: February 1, 2007

First Distribution Date: March 26, 2007   CUSIP: 59024E AR 8
</TABLE>

                                      A-32

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 SERIES 2007-HE1

evidencing an ownership interest in distributions allocable to the Class P
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
nominee for Merrill Lynch Funding Corp, is the registered owner of the ownership
interest (the "Ownership Interest") evidenced by this Certificate (obtained by
dividing the Original Denomination of this Certificate by the aggregate Initial
Certificate Balance of all Class P Certificates) in certain distributions with
respect to a pool of conventional, sub-prime mortgage loans (the "Mortgage
Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc. (hereinafter
called the "Depositor"), and certain other property held in trust for the
benefit of Certificateholders (collectively, the "Trust Fund"). The Mortgage
Loans are serviced by Wilshire Credit Corporation (the "Servicer") and are
secured by first or second-lien mortgages on the Mortgaged Properties. The Trust
Fund was created pursuant to a pooling and servicing agreement (the
"Agreement"), dated as of February 1, 2007, among the Depositor, the Servicer
and LaSalle Bank National Association, as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement.

This Certificate is one of a duly authorized issue of Certificates, designated
as Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, Class P (the "Class P Certificates") and is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which Agreement such Holder is bound.

The Class A Certificates, the Class M Certificates, the Class B Certificates,
the Class P Certificates, the Class C Certificates and the Class R Certificate
are collectively referred to herein as the "Certificates."

Pursuant to the terms of the Agreement, the Trustee will distribute from funds
in the Certificate Account the amounts described in the Agreement on the 25th
day of each month or, if such 25th day is not a Business Day, the Business Day
immediately following (the "Distribution Date"), commencing in March 2007. Such
distributions will be made to the Person in whose name this Certificate is
registered on the Record Date (as defined in the Pooling and Servicing
Agreement).

Distributions on this Certificate will be made either by check mailed to the
address of the person entitled to distributions as it appears on the Certificate
Register or, in the case of any certificateholder that has so notified the
Trustee in writing in accordance with the Agreement, by wire transfer in
immediately available funds to the account of such certificateholder at a bank
or other depository institution having appropriate wire transfer facilities;
provided, however, that the final distribution in retirement of the certificates
will be made only upon presentation and surrender of this Certificate at the
office of the Trustee or such other address designated in writing by the
Trustee. On each Distribution Date, a holder of this Certificate will receive
such holder's Percentage Interest of the amounts required to be distributed with
respect to the applicable Class of Certificates.

The Trustee will maintain or cause to be maintained a Certificate Register in
which, subject to such reasonable regulations as it may prescribe, the Trustee
will provide for the registration of Certificates and of transfers and exchanges
of Certificates. Upon surrender for registration of transfer of any Certificate
at any office or agency of the Trustee, or, if an Authenticating Agent has been
appointed under the Agreement, the Authenticating Agent, maintained for such
purpose, the Trustee, will, subject to the

                                      A-33

<PAGE>

limitations set forth in the Agreement, authenticate and deliver, in the name of
the designated transferee or transferees, a Certificate of a like class and
dated the date of authentication by the Authenticating Agent. Notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Trustee, of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee, for that purpose and specified in such notice of final
distribution.

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

Unless the certificate of authentication has been executed by the Authenticating
Agent, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.

                                      A-34

<PAGE>

IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

Dated: March 8, 2007                    LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

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

                                      A-35

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

This Certificate is one of a duly authorized issue of Certificates, designated
as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, issued in one or more Classes of Class A
Certificates, Class M Certificates, Class B Certificates, Class P Certificates,
Class C Certificates and Class R Certificate, each evidencing an interest in
certain distributions with respect to a pool of conventional, sub-prime Mortgage
Loans formed and sold by the Depositor and certain other property conveyed by
the Depositor to the Trustee.

The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is
made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

No service charge will be made to the Holder for any transfer or exchange of the
Certificate, but the Trustee may require payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

The Agreement may be amended from time to time by the Depositor, the Servicer
and the Trustee, without the consent of any of the Certificateholders, to cure
any ambiguity, to correct or supplement any provisions therein which may be
inconsistent with the other provisions therein, to ensure continuing treatment
of each REMIC included in the Trust Fund as a REMIC, or to make any other
provisions with respect to matters or questions arising under the Agreement
which are not materially inconsistent with the provisions of the Agreement,
provided that such action does not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Certificateholder.

The Agreement may also be amended from time to time by the Depositor, the
Servicer the Trustee, with the consent of the Holders of Certificates evidencing
in the aggregate not less than 66 2/3% of the Percentage Interests of each Class
of Certificates affected thereby, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Agreement or
of modifying in any manner the rights of the Holders of Certificates of such
Class; provided, however, that no such amendment may (i) reduce in any manner
the amount of, or delay the timing of, payments received on Mortgage Loans which
are required to be distributed on any Certificate without the consent of the
Holder of such Certificate, (ii) adversely affect in any material respect the
interests of the Holders of any Class of Certificates in a manner other than as
described in clause (i), without the consent of the Holders of Certificates of
such Class evidencing 66 2/3% or more of the Voting Rights of such Class or
(iii) change the percentage specified in clause (ii) of the third paragraph of
Section 10.01 of the Agreement, without the consent of the Holders of all
Certificates of such Class then outstanding.

For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC"). The REMIC Regular
Interests will represent "regular interests" in one of

                                      A-36

<PAGE>

the REMICs included in the Trust Fund. The Class R Certificate will represent
the sole class of "residual interest" in each of the REMICs.

The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created hereby continue beyond the earlier of (i) the expiration of
21 years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late Ambassador of the United States to the Court of St. James's,
living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-37

<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

____________________________________, Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:
       ------------------------------   ----------------------------------------
(Signature guaranty)                    NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-38

<PAGE>

                           FORM OF CLASS R CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS (I) A
"RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS",
AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND (II) AN INTEREST IN
NOTIONAL PRINCIPAL CONTRACTS.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NONE OF THIS CERTIFICATE, THE REMIC RESIDUAL INTERESTS REPRESENTED
HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE
DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY FEDERAL, STATE,
LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE, AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH
PLAN.

                               CLASS R CERTIFICATE

<TABLE>
<S>                                       <C>
Number: 07-HE1-R                          Principal Balance: $100.00

Cut-off Date: February 1, 2007            Pass-Through Rate: Variable(4)

First Distribution Date: March 26, 2007   CUSIP: 59024E AS 6
</TABLE>

----------
(4)  Subject to a cap as described in the Agreement.

                                      A-39

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

evidencing an ownership interest in distributions allocable to the Class R
Certificates with respect to a pool of conventional, sub-prime mortgage loans
formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as
nominee for Merrill Lynch Funding Corporation, is the registered owner of the
ownership interest (the "Ownership Interest") evidenced by this Certificate
(obtained by dividing the Original Denomination of this Certificate by the
aggregate Initial Certificate Balance of all Class R Certificates) in certain
distributions with respect to a pool of conventional, sub-prime mortgage loans
(the "Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Certificateholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Wilshire Credit Corporation (the "Servicer") and
are secured by first or second-lien mortgages on the Mortgaged Properties. The
Trust Fund was created pursuant to a pooling and servicing agreement (the
"Agreement"), dated as of February 1, 2007, among the Depositor, the Servicer
and LaSalle Bank National Association, as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement.

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, Class R (the "Class R Certificate") and is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which Agreement such Holder is bound.

     The Class A Certificates, the Class M Certificates, the Class B
Certificates, the Class P Certificates and the Class C Certificates are
collectively referred to herein as the "Certificates."

     Pursuant to the terms of the Agreement, the Trustee will distribute from
funds in the Certificate Account the amounts described in the Agreement on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing in March 2007.
Such distributions will be made to the Person in whose name this Certificate is
registered on the Record Date (as defined in the Pooling and Servicing
Agreement).

     Distributions on this Certificate will be made either by check mailed to
the address of the person entitled to distributions as it appears on the
Certificate Register or, in the case of any certificateholder that has so
notified the Trustee in writing in accordance with the Agreement, by wire
transfer in immediately available funds to the account of such certificateholder
at a bank or other depository institution having appropriate wire transfer
facilities; provided, however, that the final distribution in retirement of the
certificates will be made only upon presentation and surrender of this
Certificate at the office of the Trustee or such other address designated in
writing by the Trustee. On each Distribution Date, a holder of this Certificate
will receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Certificates.

     The Trustee will maintain or cause to be maintained a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Trustee will provide for the registration of Certificates

                                      A-40

<PAGE>

and of transfers and exchanges of Certificates. Upon surrender for registration
of transfer of any Certificate at any office or agency of the Trustee, or, if an
Authenticating Agent has been appointed under the Agreement, the Authenticating
Agent, maintained for such purpose, the Trustee, will, subject to the
limitations set forth in the Agreement, authenticate and deliver, in the name of
the designated transferee or transferees, a Certificate of a like class and
dated the date of authentication by the Authenticating Agent. Notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Trustee, of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee, for that purpose and specified in such notice of final
distribution.

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

     Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-41

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: March 8, 2007                    LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Authenticating Agent

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

                                      A-42

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2007-HE1

     This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Certificates, Series 2007-HE1, issued in one or more Classes of Class A
Certificates, Class M Certificates, Class B Certificates, Class P Certificates
and Class C Certificates, each evidencing an interest in certain distributions
with respect to pools of conventional, sub-prime Mortgage Loans formed and sold
by the Depositor and certain other property conveyed by the Depositor to the
Trustee.

     Following the initial issuance of the Certificates, the principal balance
of this Certificate will be different from the Original Denomination shown
above. Anyone acquiring this Certificate may ascertain its current principal
balance by inquiry of the Trustee.

     The Holder, by its acceptance of this Certificate, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that the Trustee is not liable to the Holders for any
amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     No service charge will be made to the Holder for any transfer or exchange
of the Certificate, but the Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of the Certificate. Prior to due presentation of a
Certificate for registration of transfer, the Depositor and the Trustee may
treat the person in whose name any Certificate is registered as the owner of
such Certificate and the Percentage Interest in the Trust Fund evidenced thereby
for the purpose of receiving distributions pursuant to the Agreement and for all
other purposes whatsoever, and neither the Depositor nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders,
to cure any ambiguity, to correct or supplement any provisions therein which may
be inconsistent with the other provisions therein, to ensure continuing
treatment of each REMIC included in the Trust Fund as a REMIC, or to make any
other provisions with respect to matters or questions arising under the
Agreement which are not materially inconsistent with the provisions of the
Agreement, provided that such action does not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder.

     The Agreement may also be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner other than as described in clause (i), without the consent of the

                                      A-43

<PAGE>

Holders of Certificates of such Class evidencing 66 2/3% or more of the Voting
Rights of such Class or (iii) change the percentage specified in clause (ii) of
the third paragraph of Section 10.01 of the Agreement, without the consent of
the Holders of all Certificates of such Class then outstanding.

     For federal income tax purposes, the Trust Fund will include multiple "real
estate mortgage investment conduits" (each, a "REMIC") in a tiered REMIC
structure. The REMIC Regular Interests will represent "regular interests" in one
of the REMICs included in the Trust Fund. The Class R Certificate will represent
the sole class of "residual interest" in each of the REMICs.

     The obligations and responsibilities of the Depositor, the Servicer and the
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Trustee of an Optional Termination; and (b) the later of (i) the maturity
or other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created under the Agreement continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-44

<PAGE>

                              [FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________

(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:
       ------------------------------   ----------------------------------------
(Signature guaranty)                    NOTICE: The signature to this assignment
                                        must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
                                        alteration or enlargement or any change
                                        whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                      A-45
<PAGE>

                                    EXHIBIT B

                     MORTGAGE LOAN SCHEDULE - MORTGAGE POOL

                             [INTENTIONALLY OMITTED]

                                      B-1

<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                      C-1

<PAGE>

                                    EXHIBIT D

                          FORM OF TRUSTEE CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wilshire Credit Corporation
14523 S.W. Millikan Way, Suite 200
Beaverton, Oregon 97005

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603

Re: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-HE1

Ladies and Gentlemen:

In accordance with Section 2.02 of the Pooling and Servicing Agreement dated as
of February 1, 2007 among Merrill Lynch Mortgage Investors, Inc., as depositor,
LaSalle Bank National Association, as trustee, Wilshire Credit Corporation, as
servicer (the "Pooling and Servicing Agreement"), the undersigned, as Trustee,
hereby certifies that [, except as set forth in Schedule A hereto,] as to each
Mortgage Loan listed in the Mortgage Loan Schedule attached hereto (other than
any Mortgage Loan paid in full or listed on the attachment hereto) it has
reviewed the Mortgage File and the Mortgage Loan Schedule and has determined
that:

          (i) All documents in the Mortgage File required to be delivered to the
     Trustee pursuant to Section 2.01 (A)-(B), (C) (if applicable), (D) and (E)
     and the documents if actually received by it under Section 2.01(F) of the
     Pooling and Servicing Agreement are in its possession;

          (ii) In connection with each Mortgage Loan or Assignment thereof as to
     which documentary evidence of recording was not received on the Closing
     Date, it has received evidence of such recording; and

          (iii) Such documents have been reviewed by it and appear regular on
     their face and relate to such Mortgage Loan.

The Trustee has made no independent examination of any documents contained in
each Mortgage File beyond confirming (i) that the Mortgage Loan number, the name
of the Mortgagor, the street address (excluding zip code), the mortgage interest
rate at origination, the Gross Margin (if applicable), the

                                       D-1

<PAGE>

lifetime rate cap (if applicable), the periodic rate cap (if applicable), the
original principal balance, the first payment due date and the original maturity
date in each Mortgage File conform to the respective Mortgage Loan number and
name listed on the Mortgage Loan Schedule and (ii) the existence in each
Mortgage File of each of the documents listed in subparagraphs (i)(A) through
(E), as applicable, inclusive, of Section 2.01 in the Agreement. The Trustee
makes no representations or warranties as to the validity, legality,
recordability, sufficiency, enforceability, due authorization or genuineness of
any of the documents contained in each Mortgage Loan or the collectability,
insurability, effectiveness, priority, perfection or suitability of any such
Mortgage Loan.

Capitalized words and phrases used herein shall have the respective meanings
assigned to them in the above-referenced Pooling and Servicing Agreement.

                                        LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

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

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

                                       D-2

<PAGE>

                                   EXHIBIT E-1

                    FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603

Attention: Merrill Lynch Mortgage Investors Trust, Series 2007-HE1

Ladies and Gentlemen:

We propose to purchase Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-HE1, Class R, described in the Prospectus
Supplement, dated March 7, 2007, and the Prospectus, dated February 20, 2007.

     1. We certify that (a) we are not a disqualified organization and (b) we
are not purchasing such Class R Certificate on behalf of a disqualified
organization; for this purpose the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

     2. We certify that (a) we have historically paid our debts as they became
due, (b) we intend, and believe that we will be able, to continue to pay our
debts as they become due in the future, (c) we understand that, as beneficial
owner of the Class R Certificate, we may incur tax liabilities in excess of any
cash flows generated by the Class R Certificate, and (d) we intend to pay any
taxes associated with holding the Class R Certificate as they become due and (e)
we will not cause income from the Class R Certificate to be attributable to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of ours or another U.S. taxpayer.

                                      E-1-1

<PAGE>

     3. We acknowledge that we will be the beneficial owner of the Class R
Certificate and:(5)

     ___________ The Class R Certificate will be registered in our name.

     ___________ The Class R Certificate will be held in the name of our
nominee, _________________, which is not a disqualified organization.

     4. We certify that we are not an employee benefit plan subject to Title I
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a
plan subject to Section 4975 of the Code or a plan subject to federal, state,
local, non-U.S. or other law substantively similar to the foregoing provisions
of ERISA or the Code (each, a "Plan"), and are not directly or indirectly
acquiring the Class R Certificate on behalf of or with any assets of a Plan.

     5. We certify that (i) we are a U.S. person or (ii) we will hold the Class
R Certificate in connection with the conduct of a trade or business within the
United States and have furnished the transferor and the Trustee with a duly
completed and effective Internal Revenue Service Form W-8ECI or successor form
at the time and in the manner required by the Code; for this purpose the term
"U.S. person" means a citizen or resident of the United States, a corporation,
or partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any State thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to United States federal income tax regardless
of the source of its income, or a trust if a court within the United States is
able to exercise primary supervision over the administration of the trust and
one or more such U.S. persons have the authority to control all substantial
decisions of the trust (or, to the extent provided in applicable Treasury
regulations, certain trusts in existence on August 20, 1996 which are eligible
to elect to be treated as U.S. Persons). We agree that any breach by us of this
certification shall render the transfer of any interest in the Class R
Certificate to us absolutely null and void and shall cause no rights in the
Class R Certificate to vest in us.

     6. We agree that in the event that at some future time we wish to transfer
any interest in the Class R Certificate, we will transfer such interest in the
Class R Certificate only (a) to a transferee that (i) is not a disqualified
organization and is not purchasing such interest in the Class R Certificate on
behalf of a disqualified organization, (ii) is a U.S. person or will hold the
Class R Certificate in connection with the conduct of a trade or business within
the United States and will furnish us and the Trustee with a duly completed and
effective Internal Revenue Service Form W-8ECI or successor form at the time and
in the manner required by the Code and (iii) has delivered to the Trustee a
letter in the form of this letter (including the affidavit appended hereto) and,
we will provide the Trustee a written statement substantially in the form of
Exhibit E-2 to the Pooling and Servicing Agreement.

----------
(5)  Check appropriate box and if necessary fill in the name of the Transferee's
     nominee.

                                      E-1-2

<PAGE>

     7. We hereby designate _______________________ as our fiduciary to act as
the tax matters person for each of the REMICs provided for in the Pooling and
Servicing Agreement.

                                        Very truly yours,

                                        [PURCHASER]

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

Accepted as of __________ __, 200__

MERRILL LYNCH MORTGAGE INVESTORS, INC.

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

                                      E-1-3

<PAGE>

                                   APPENDIX A

                                        Affidavit pursuant to (i) Section
                                        860E(e)(4) of the Internal Revenue Code
                                        of 1986, as amended, and (ii) certain
                                        provisions of the Pooling and Servicing
                                        Agreement

Under penalties of perjury, the undersigned declares that the following is true:

     1. He or she is an officer of _________________________ (the "Transferee"),

     2. the Transferee's Employer Identification number is __________,

     3. the Transferee is not a "disqualified organization" (as defined below),
has no plan or intention of becoming a disqualified organization, and is not
acquiring any of its interest in the Merrill Lynch Mortgage Investors Trust,
Mortgage Loan Asset-Backed Certificates, Series 2007-HE1, Class R Certificate on
behalf of a disqualified organization or any other entity,

     4. unless Merrill Lynch Mortgage Investors, Inc.("MLMI") has consented to
the transfer to the Transferee by executing the form of Consent affixed as
Appendix B to the Transferee's Letter to which this Certificate is affixed as
Appendix A, the Transferee is a "U.S. person" (as defined below),

     5. that no purpose of the transfer is to avoid or impede the assessment or
collection of tax,

     6. the Transferee has historically paid its debts as they became due,

     7. the Transferee intends, and believes that it will be able, to continue
to pay its debts as they become due in the future,

     8. the Transferee understands that, as beneficial owner of the Class R
Certificate, it may incur tax liabilities in excess of any cash flows generated
by the Class R Certificate,

     9. the Transferee intends to pay any taxes associated with holding the
Class R Certificate as they become due,

     10. the Transferee consents to any amendment of the Pooling and Servicing
Agreement that shall be deemed necessary by MLMI (upon advice of counsel) to
constitute a reasonable arrangement to ensure that the Class R Certificate will
not be owned directly or indirectly by a disqualified organization, and

     11. IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
transfer is not a direct or indirect transfer of the Class R Certificate to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Transferee, and as to each of the residual
interests represented by the Class R Certificate, the present value of the
anticipated tax liabilities associated with holding such residual interest does
not exceed the sum of:

     A. the present value of any consideration given to the Transferee to
acquire such residual interest;

                                      E-1-4

<PAGE>

     B. the present value of the expected future distributions on such residual
interest; and

     C. the present value of the anticipated tax savings associated with holding
such residual interest as the related REMIC generates losses.

For purposes of this declaration, (i) the Transferee is assumed to pay tax at a
rate equal to the highest rate of tax specified in Section 11(b)(1) of the Code,
but the tax rate specified in Section 55(b)(1)(B) of the Code may be used in
lieu of the highest rate specified in Section 11(b)(1) of the Code if the
Transferee has been subject to the alternative minimum tax under Section 55 of
the Code in the preceding two years and will compute its taxable income in the
current taxable year using the alternative minimum tax rate, and (ii) present
values are computed using a discount rate equal to the Federal short-term rate
prescribed by Section 1274(d) of the Code for the month of the transfer and the
compounding period used by the Transferee;]

[(11) (A) at the time of the transfer, and at the close of each of the
     Transferee's two fiscal years preceding the Transferee's fiscal year of
     transfer, the Transferee's gross assets for financial reporting purposes
     exceed $100 million and its net assets for financial reporting purposes
     exceed $10 million; and

     (B)  the Transferee is an eligible corporation as defined in Treasury
          regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class R Certificate will be to another
          eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

For purposes of this declaration, the gross and net assets of the Transferee do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Transferee to make
this declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

(12) The Transferee will not cause income from the Class R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Transferee or another U.S.
taxpayer.

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code and the term
"U.S. Person" means a citizen or resident of the United States, a corporation or
partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to Unites States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary

                                      E-1-5

<PAGE>

supervision over the administration of such trust, and one or
more such U.S. Persons have the authority to control all substantial decisions
of such trust, (or, to the extent provided in applicable Treasury regulations,
certain trusts in existence on August 20, 1996 which are eligible to elect to be
treated as U.S. Persons).

By:
    ---------------------------------

___________________________________________________
Address of Investor for receipt of distribution:

___________________________________________________
Address of Investor for receipt of tax information:

(Corporate Seal)

Attest:

                                        ----------------------------------------
                                        , Secretary

                                      E-1-6

<PAGE>

Personally appeared before me the above-named ______________, known or proved to
me to be the same person who executed the foregoing instrument and to be the
_______ of the Investor, and acknowledged to me that he executed the same as his
free act and deed and the free act and deed of the Investor.

Subscribed and sworn before me this
day of _____, 200_.

-------------------------------------
Notary Public

County of
          ---------------------------
State of
         ----------------------------
My commission expires the          day of
                          --------        --------------

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

                                      E-1-7

<PAGE>

                                   EXHIBIT E-2

                         FORM OF TRANSFEROR'S AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch Mortgage
           Investors Trust, Series 2007-HE1

Re: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-HE1

_______________________ (the "Transferor") has reviewed the attached affidavit
of _____________________________ (the "Transferee"), and has no actual knowledge
that such affidavit is not true, and has no reason to believe that the
Transferee has the intention to impede the assessment or collection of any
federal, state or local taxes legally required to be paid with respect to the
Class R Certificate referred to in the attached affidavit. In addition, the
Transferor has conducted a reasonable investigation at the time of the transfer
and found that the Transferee had historically paid its debts as they came due
and found no significant evidence to indicate that the Transferee will not
continue to pay its debts as they become due.

                                        Very truly yours,

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

                                      E-2-1

<PAGE>

                                    EXHIBIT F

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch Mortgage
           Investors Trust, Series 2007-HE1

RE: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-HE1

Ladies and Gentlemen:

In connection with our disposition of the Class [____] Certificate, we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act and
(b) we have not offered or sold any Certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or negotiated with
any person with respect thereto, in a manner that would be deemed, or taken any
other action that would result in, a violation of Section 5 of the Act. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement dated as of February 1,
2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle Bank
National Association, as trustee, and Wilshire Credit Corporation, as servicer.

                                        Very truly yours,

                                        ----------------------------------------
                                        Name of Transferor

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

                                       F-1

<PAGE>

                                    EXHIBIT G

                            FORM OF INVESTMENT LETTER
                              (ACCREDITED INVESTOR)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch Mortgage
           Investors Trust, Series 2007-HE1

Re: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-HE1

Ladies and Gentlemen:

______________ (the "Purchaser") intends to purchase from ________________ (the
"Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-HE1, Class [____] (the "Certificates"),
issued pursuant to a Pooling and Servicing Agreement, dated as of February 1,
2007 (the "Pooling and Servicing Agreement"), among Merrill Lynch Mortgage
Investors, Inc., as depositor (the "Depositor"), LaSalle Bank National
Association, as trustee (the "Trustee"), Wilshire Credit Corporation, as
servicer (the "Servicer"). [The Purchaser intends to register the Transferred
Certificate in the name of ____________________, as nominee for
_________________.] All terms used and not otherwise defined herein shall have
the meanings set forth in the Pooling and Servicing Agreement.

For good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

     1. The Purchaser understands that (a) the Certificates have not been
registered or qualified under the Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state, (b) neither the
Depositor nor the Trustee is required, and neither of them intends, to so
register or qualify the Certificates, (c) the Certificates cannot be resold
unless (i) they are registered and qualified under the Securities Act and the
applicable state securities laws or (ii) an exemption from registration and
qualification is available and (d) the Pooling and Servicing Agreement contains
restrictions regarding the transfer of the Certificates.

     2. All Certificates other than ERISA Restricted Certificates and Class R
Certificates will bear a legend to the following effect:

UNTIL THE TERMINATION OF THE SWAP AGREEMENT AND THE CAP CONTRACT, EACH
TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A
DEFINITIVE CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE
IS NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE
BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR ANY PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS

                                       G-1

<PAGE>

AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF THIS
CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION
UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

     3. The Certificates (other than the Class R Certificate) will bear a legend
to the following effect:

     THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE
     "1940 ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT,
     DIRECTLY OR INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR
     SALE, UNLESS SUCH TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT,
     THE 1940 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER
     ALSO COMPLIES WITH THE OTHER PROVISIONS OF SECTION 5.02 OF THE POOLING AND
     SERVICING AGREEMENT. IF THE CERTIFICATE IS A DEFINITIVE CERTIFICATE, NO
     TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE
     RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (A) AN
     INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
     FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

     4. The ERISA Restricted Certificates will bear a legend to the following
effect:

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE HAS RECEIVED
(A) A REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE "CODE") OR A PLAN SUBJECT TO ANY STATE, LOCAL, FEDERAL,
NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE ("SIMILAR LAW") (COLLECTIVELY, A "PLAN"), AND IS NOT DIRECTLY OR
INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR WITH ANY ASSETS OF
ANY SUCH PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN
ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN
INSURANCE COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE
COMPANY GENERAL ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION
CLASS EXEMPTION ("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE
CERTIFICATE ARE COVERED AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60, OR
(C) SOLELY IN THE CASE OF A DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL
SATISFACTORY TO THE TRUSTEE, AND UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO
RELY, TO THE EFFECT THAT THE ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE
PROSPECTIVE TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED
TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF
SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO
ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING
AND SERVICING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUSTEE, THE SERVICER OR THE DEPOSITOR. IF THE CERTIFICATE IS NOT A DEFINITIVE
CERTIFICATE, THE TRANSFEREE IS DEEMED TO HAVE MADE THE REPRESENTATION IN (A) OR
(B) ABOVE.

                                       G-2

<PAGE>

     5. The Class R Certificate will bear a legend to the following effect:

THIS CLASS R CERTIFICATE MAY NOT BE TRANSFERRED, EXCEPT IN ACCORDANCE WITH
SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT AND THE HOLDER OF THIS
CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH CERTIFICATE ONLY IN ACCORDANCE WITH SECTION 5.02 OF THE POOLING AND
SERVICING AGREEMENT. NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE
TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE
(A) A TRANSFER AFFIDAVIT FROM THE PROSPECTIVE INVESTOR; AND (B) AN AFFIDAVIT
FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATE.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE TRUSTEE WITH A REPRESENTATION THAT SUCH TRANSFEREE IS
NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION
4975 OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL, FEDERAL, NON-U.S. OR OTHER
LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE
BY, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH PLAN.

     6. The Purchaser is acquiring the Transferred Certificates for its own
account [FOR INVESTMENT ONLY] * and not with a view to or for sale or other
transfer in connection with any distribution of the Transferred Certificates in
any manner that would violate the Securities Act or any applicable state
securities laws, subject, nevertheless, to the understanding that disposition of
the Purchaser's property shall at all times be and remain within its control.

     7. The Purchaser (a) is a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters, and in
particular in such matters related to securities similar to the Certificates,
such that it is capable of evaluating the merits and risks of investment in the
Certificates, (b) is able to bear the economic risks of such an investment and
(c) is an "accredited investor" within the meaning of Rule 501(a) promulgated
pursuant to the Securities Act.

     8. The Purchaser will not nor has it authorized nor will it authorize any
person to (a) offer, pledge, sell, dispose of or otherwise transfer any
Certificate, any interest in any Certificate or any other similar security to
any person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c)
otherwise approach or negotiate with respect to any Certificate, any interest in
any Certificate or any other similar security with any person in any manner, (d)
make any general solicitation by means of general advertising or in any other
manner, or (e) take any other action, that would constitute a distribution of
any Certificate under the Securities Act or the Investment Company Act of 1940,
as amended (the "1940 Act"), that would render the disposition of any
Certificate a violation of Section 5 of the Securities Act or any state
securities law, or that would require registration or qualification pursuant
thereto. Neither the Purchaser nor anyone acting on its behalf has offered the
Certificates for sale or made any general solicitation by means of general
advertising or in any other

----------
*    No required of a broker/dealer purchaser.

                                       G-3

<PAGE>

manner with respect to the Certificates. The Purchaser will not sell or
otherwise transfer any of the Certificates, except in compliance with the
provisions of the Pooling and Servicing Agreement.

     9. Either (i) the Purchaser of a Certificate that is neither an ERISA
Restricted Certificate nor a Class R Certificate is not, and is not acting for,
on behalf of or with any assets of, an employee benefit plan or other
arrangement subject to Title I of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") or plan subject to Section 4975 of the Code, or (ii)
until the termination of the Swap Agreement and the Cap Contract, such
Purchaser's acquisition and holding of such Certificates will not constitute or
result in a non-exempt prohibited transaction under Title I of ERISA or Section
4975 of the Code.

     10. The Purchaser of an ERISA Restricted Certificate (A) is not an employee
benefit plan subject to Title I of ERISA, a plan subject to Section 4975 of the
Code, a plan subject to any state, local, federal, non-U.S. or other law
substantively similar to the foregoing provisions of ERISA or the Code ("Similar
Law") and is not directly or indirectly acquiring such Certificates by, on
behalf of, or with any assets of any such plan, or (B) if the Certificate has
been the subject of an ERISA-Qualifying Underwriting, is an insurance company
that is acquiring the Certificate with assets of an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60, or (C) solely in the event
the Certificate is a Definitive Certificate, herewith delivers an Opinion of
Counsel satisfactory to the Trustee, and upon which the Trustee shall be
entitled to rely, to the effect that the acquisition and holding of the
Certificate will not constitute or result in a nonexempt prohibited transaction
under Title I of ERISA or Section 4975 of the Code, or a violation of Similar
Law, and will not subject the Trustee, the Servicer or the Depositor to any
obligation in addition to those expressly undertaken in the Pooling and
Servicing Agreement, which Opinion of Counsel shall not be an expense of the
Trustee, the Servicer or the Depositor.

     11. The Purchaser of a Class R Certificate is not an employee benefit plan
subject to Title I of ERISA, a plan subject to Section 4975 of the Code, a plan
subject to any state, local, federal, non-U.S. or other law substantively
similar to the foregoing provisions of ERISA or the Code ("Similar Law"), or a
Person directly or indirectly acquiring such Certificate by, on behalf of, or
with any assets of any such plan.

     12. Prior to the sale or transfer by the Purchaser of any of the
Certificates, the Purchaser will obtain from any subsequent purchaser
substantially the same certifications, representations, warranties and covenants
contained in the foregoing paragraphs and in this letter or a letter
substantially in the form of Exhibit H to the Pooling and Servicing Agreement.

                                       G-4

<PAGE>

     13. The Purchaser agrees to indemnify the Trustee, the Servicer and the
Depositor against any liability that may result from any misrepresentation made
herein.

                                        Very truly yours,

                                        [PURCHASER]

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

                                      G-5

<PAGE>

                                    EXHIBIT H

                       FORM OF RULE 144A INVESTMENT LETTER
                         (Qualified Institutional Buyer)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Merrill Lynch Mortgage
           Investors Trust, Series 2007-HE1

Re: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-HE1

Ladies and Gentlemen:

______________ (the "Purchaser") intends to purchase from ________________ (the
"Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Certificates, Series 2007-HE1, Class [____] (the "Certificates"),
issued pursuant to a Pooling and Servicing Agreement, dated as of February 1,
2007 (the "Pooling and Servicing Agreement"), among Merrill Lynch Mortgage
Investors, Inc., as depositor (the "Depositor"), LaSalle Bank National
Association, as trustee (the "Trustee"), Wilshire Credit Corporation, as
servicer (the "Servicer"). [THE PURCHASER INTENDS TO REGISTER THE TRANSFERRED
CERTIFICATE IN THE NAME OF ____________________, AS NOMINEE FOR
_________________.] All terms used and not otherwise defined herein shall have
the meanings set forth in the Pooling and Servicing Agreement.

For good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

In connection with our acquisition of the above Transferred Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Transferred Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Transferred Certificates, (d) solely in the case of a
Certificate other than an ERISA Restricted Certificate or Class R Certificate,
either (i) we are not, and are not acquiring the Certificate for, on behalf of
or with any assets of, any employee benefit plan or other arrangement subject to
Title I of ERISA or any plan subject to Section 4975 of the Code, or (ii) until
the termination of the Swap Agreement and the Cap Contract, our acquisition and
holding of the Certificate will not constitute or result in a non-exempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code,
(e)solely with respect to ERISA Restricted Certificates, (A) we are not an
employee benefit plan subject to Title I of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), a plan subject to Section 4975 of
the Internal Revenue Code of 1986, as amended

                                       H-1

<PAGE>

(the "Code"), a plan subject to any state, local, federal, non-U.S. or other law
substantively similar to the foregoing provisions of ERISA or the Code ("Similar
Law"), or Persons directly or indirectly acting on behalf of or using any assets
of any such plan, or (B), if the Certificate has been the subject of an
ERISA-Qualifying Underwriting, we are an insurance company that is acquiring the
Certificate with assets of an "insurance company general account," as defined in
Section V(e) of Prohibited Transaction Class Exemption ("PTCE") 95-60, and the
acquisition and holding of the Certificate are covered and exempt under Sections
I and III of PTCE 95-60, or (C) solely in the event the Certificate is a
Definitive Certificate, we will herewith deliver an Opinion of Counsel
satisfactory to the Trustee, and upon which the Trustee shall be entitled to
rely, to the effect that the acquisition and holding of the Certificate will not
constitute or result in a nonexempt prohibited transaction under Title I of
ERISA or Section 4975 of the Code, or a violation of Similar Law, and will not
subject the Trustee, the Servicer or the Depositor to any obligation in addition
to those expressly undertaken in the Pooling and Servicing Agreement, which
Opinion of Counsel shall not be an expense of the Trustee, the Servicer or the
Depositor, (f) we have not, nor has anyone acting on our behalf offered,
transferred, pledged, sold or otherwise disposed of the Certificates, any
interest in the Certificates or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with respect to the Certificates,
any interest in the Certificates or any other similar security with, any person
in any manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the Securities Act or that would render
the disposition of the Certificates a violation of Section 5 of the Securities
Act or require registration pursuant thereto, nor will act, nor has authorized
or will authorize any person to act, in such manner with respect to the
Certificates, and (g) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Securities Act and have completed one of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2. We
are aware that the sale of the Transferred Certificates to us is being made in
reliance on Rule 144A. We are acquiring the Transferred Certificates for our own
account or for resale pursuant to Rule 144A and further understand that such
Certificates may be resold, pledged or transferred only (i) to a person
reasonably believed by us, based upon certifications of such purchaser or
information we have in our possession, to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A, or (ii) pursuant to another exemption
from registration under the Securities Act.

                                       H-2

<PAGE>

We agree to indemnify the Trustee, the Servicer and the Depositor against any
liability that may result from any misrepresentation made herein.

                                        Very truly yours,

                                        [PURCHASER]

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

                                       H-3

<PAGE>

                                                                         ANNEX 1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [FOR TRANSFEREES OTHER THAN REGISTERED INVESTMENT COMPANIES]

The undersigned (the "Buyer") hereby certifies as follows to the parties listed
in the Rule 144A Transferee Certificate to which this certification relates with
respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

     2. In connection with the purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $____________ * in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

          _______ Corporation, etc. The Buyer is a corporation (other than a
                  bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust, partnership, or
                  charitable organization described in Section 501(c)(3) of the
                  Internal Revenue Code of 1986, as amended.

          _______ Bank. The Buyer (a) is a national bank or banking institution
                  organized under the laws of any State, territory or the
                  District of Columbia, the business of which is substantially
                  confined to banking and is supervised by Federal, State or
                  territorial banking commission or similar official or is a
                  foreign bank or equivalent institution, and (b) has an audited
                  net worth of at least $25,000,000 as demonstrated in its
                  latest annual financial statements, a copy of which is
                  attached hereto.

          _______ Savings and Loan. The Buyer (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over such institution or is a foreign savings and
                  loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

          _______ Broker-dealer. The Buyer is a dealer registered pursuant to
                  Section 15 of the Securities Exchange Act of 1934, as amended.

          _______ Insurance Company. The Buyer is an insurance company whose
                  primary

----------
*    Buyer must own and/or invest on a discretionary basis at least $100,000,000
     in securities unless Buyer is a dealer, and, in that case, Buyer must own
     and/or invest on a discretionary basis at least $10,000,000 in securities.

                                       H-4

<PAGE>

                  and predominant business activity is the writing of insurance
                  or the reinsuring of risks underwritten by insurance companies
                  and which is subject to supervision by the insurance
                  commissioner or a similar official or agency of the State,
                  territory or the District of Columbia.

          _______ State or Local Plan. The Buyer is a plan established and
                  maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

          _______ ERISA Plan. The Buyer is an employee benefit plan subject to
                  Title I of the Employee Retirement Income Security Act of
                  1974, as amended.

          _______ Investment Advisor. The Buyer is an investment advisor
                  registered under the Investment Advisors Act of 1940, as
                  amended.

          _______ Small Business Investment Company. Buyer is a small business
                  investment company licensed by the U.S. Small Business
                  Administration under Section 301(c) or (d) of the Small
                  Business Investment Act of 1958, as amended.

          _______ Business Development Company. Buyer is a business development
                  company as defined in Section 202(a)(22) of the Investment
                  Advisors Act of 1940, as amended.

     3. The term "securities" as used for purposes of the calculation of the
dollar amount in paragraph 2 excludes: (i) securities of issuers that are
affiliated with the Buyer, (ii) securities that are part of an unsold allotment
to or subscription by the Buyer, if the Buyer is a dealer, (iii) securities
issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi)
repurchase agreements, (vii) securities owned but subject to a repurchase
agreement and (viii) currency, interest rate and commodity swaps.

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

     5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

                                       H-5

<PAGE>

     6. Until the date of purchase of the Rule 144A Securities, the Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

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

                                       H-6

<PAGE>

                                                                         ANNEX 2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [FOR TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]

The undersigned (the "Buyer") hereby certifies as follows to the parties listed
in the Rule 144A Transferee Certificate to which this certification relates with
respect to the Certificates described therein:

     1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A"), because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

     2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

          _______ The Buyer owned $___________ in securities (other than the
                  excluded securities referred to below) as of the end of the
                  Buyer's most recent fiscal year (such amount being calculated
                  in accordance with Rule 144A).

          _______ The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $__________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

     3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

     4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

     5. The Buyer is familiar with Rule 144A and understands that the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates are relying and will continue to rely on the

                                       H-7

<PAGE>

statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

     6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

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

                                        IF AN ADVISER:

                                        ----------------------------------------
                                        Print Name of Buyer

                                        Date:
                                              ----------------------------------

                                       H-8

<PAGE>

                                    EXHIBIT I

                           FORM OF REQUEST FOR RELEASE

                                     [DATE]

To: LaSalle Bank National Association
    135 South LaSalle Street, Suite 1625
    Chicago, Illinois 60603
    Attention: Account Manager--MLMI 2007-HE1

Re: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-HE1

In connection with the administration of the Mortgage Loans held by you, as
Trustee, pursuant to the Pooling and Servicing Agreement dated as of February 1,
2007 among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle Bank
National Association, as Trustee, Wilshire Credit Corporation, as servicer (the
"Pooling and Servicing Agreement"), we request the release, and hereby
acknowledge receipt, of the Mortgage File for the Mortgage Loan described below,
for the reason indicated.

Mortgage Loan Number: _______________

Mortgagor Name, Address & Zip Code: ____________________________________________

Reason for Requesting Documents (check one):

[ ] 1. Mortgage Paid in Full

[ ] 2. Foreclosure

[ ] 3. Substitution

[ ] 4. Other Liquidation (Repurchases, etc.)

[ ] 5. Nonliquidation

Address to which the Trustee should deliver the Mortgage File: _________________

                                        By:
                                            ------------------------------------
                                            (authorized signer)
                                        Address:
                                                 -------------------------------
                                        Date:
                                              ----------------------------------

                                       I-1

<PAGE>

If box 1 or 2 above is checked, and if all or part of the Mortgage File was
previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the
above specified Mortgage Loan.

If box 3, 4, 5 or 6 above is checked, upon our return of all of the above
documents to you as Trustee, please acknowledge your receipt by signing in the
space indicated below, and returning this form.

Please acknowledge the execution of the above request by your signature and date
below:

[LASALLE BANK NATIONAL ASSOCIATION,
as Trustee]

By:
    ---------------------------------   ----------------------------------------
    Signature                           Date

Documents returned to Trustee:

By:
    ---------------------------------   ----------------------------------------
    Signature                           Date

                                       I-2

<PAGE>

                                    EXHIBIT J

                                   [RESERVED]

                                       J-1
<PAGE>

                                    EXHIBIT K

                    FORM OF BACK-UP CERTIFICATION OF TRUSTEE

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wilshire Credit Corporation
14523 SW Millikan Way
Suite 200
Beaverton, Oregon 97005

Re: Pooling and Servicing Agreement (the "Agreement"), dated as of February 1,
    2007, among Merrill Lynch Mortgage Investors, Inc., as depositor, Wilshire
    Credit Corporation, as servicer, and LaSalle Bank National Association, as
    trustee, relating to Merrill Lynch Mortgage Investors Trust, Mortgage Loan
    Asset-Backed Certificates, Series 2007-HE1

The Trustee hereby certifies to the Depositor, the Servicer and their officers,
directors and affiliates, and with the knowledge and intent that they will rely
upon this certification, that:

(1) I have reviewed the annual report on Form 10-K for the fiscal year [2007]
(the "Annual Report"), and all reports on Form 8-K (if any) and on Form 10-D
required to be filed in respect of the period covered by the Annual Report
(collectively with the Annual Report, the "Reports"), of the Issuing Entity;

(2) To the best of my knowledge, and assuming the accuracy of the statements
required to be made or data required to be delivered by the Servicer and
Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the information in the Reports relating to the trustee, taken as
a whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by the Annual Report;

(3) To the best of my knowledge, and assuming the accuracy of the statements
required to be made or data required to be delivered by the Servicer and
Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the distribution and any other information required to be
provided by the Trustee (other than information provided by or on behalf of the
Servicer, the Depositor or other third party) to the Depositor and each Servicer
under the Pooling and Servicing Agreement for inclusion in the Reports is
included in the Reports; and

(4) The report on assessment of compliance with servicing criteria for
asset-backed securities of the Trustee and its related attestation report on
assessment of compliance with servicing criteria required to be included in the
Annual Report in accordance with Item 1122 of Regulation AB and Exchange Act

                                       K-1

<PAGE>

Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
Any material instances of non-compliance are described in such report and have
been disclosed in the Annual Report.

                                        LaSalle Bank National Association,
                                        as Trustee

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

                                       K-2

<PAGE>

                                    EXHIBIT L

                    FORM OF OFFICER'S CERTIFICATE OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Re: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2007-HE1

Wilshire Credit Corporation (the "Servicer") certifies to the Depositor and the
Trustee, and their officers, directors and affiliates, and with the knowledge
and intent that they will rely upon this certification, that:

(1) I am responsible for reviewing the activities performed by the Servicer
under the Pooling and Servicing Agreement and I have reviewed, or persons under
my supervision have reviewed, the servicer compliance statement of the Servicer
and the compliance statements of each Sub-Servicer, if any, engaged by the
Servicer provided to the Depositor and the Trustee for the Issuing Entity's
fiscal year [___] in accordance with Item 1123 of Regulation AB (each a
"Compliance Statement"), the report on assessment of the Servicer's compliance
with the servicing criteria set forth in Item 1122(d) of Regulation AB (the
"Servicing Criteria") and reports on assessment of compliance with servicing
criteria for asset-backed securities of the Servicer and of each Sub-Servicer
[or Subcontractor], if any, engaged or utilized by the Servicer provided to the
Depositor and the Trustee for the Issuing Entity's fiscal year [___] in
accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934,
as amended (the "Exchange Act") and Item 1122 of Regulation AB (each a
"Servicing Assessment"), the registered public accounting firm's attestation
report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
Act and Section 1122(b) of Regulation AB related to each Servicing Assessment
(each a "Attestation Report"), and all servicing reports, officer's certificates
and other information relating to the servicing of the Mortgage Loans by the
Servicer during 200[ ] that were delivered or caused to be delivered by the
Servicer pursuant to the Agreement (collectively, the "Servicing Information");

(2) Based on my knowledge, and assuming the accuracy of the information provided
to the Servicer in connection with the transfer of servicing of the Mortgage
Loans to the Servicer and in connection with the performance of the Servicer's
duties under the Pooling and Servicing Agreement, the Servicing Information,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in the
light of the circumstances under which such statements were made, not misleading
with respect to the period of time covered by the Servicing Information;

(3) Based on my knowledge, the servicing information required to be provided to
the Trustee by the Servicer pursuant to the Pooling and Servicing Agreement has
been provided to the Trustee;

(4) Based on my knowledge and the compliance review conducted in preparing each
Compliance Statement of the Servicer and, if applicable, reviewing each
Compliance Statement of each Sub-Servicer, if any, engaged by the Servicer, and
except as disclosed in such Compliance Statement[(s)], the Servicer [(directly
and through its Sub-Servicers, if any)] has fulfilled its obligations under the
Pooling and Servicing Agreement in all material respects.

(5) Each Servicing Assessment of the Servicer and of each Sub-Servicer [or
Subcontractor], if any, engaged or utilized by the Servicer and its related
Attestation Report required to be included in the

                                       L-1

<PAGE>

Annual Report in accordance with Item 1122 of Regulation AB and Exchange Act
Rules 13a-18 and 15d-18 has been provided to the Depositor and the Trustee. Any
material instances of non-compliance are described in any such Servicing
Assessment or Attestation Report.

Date:
      ------------------------------

                                        Wilshire Credit Corporation,
                                        as Servicer

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

                                       L-2

<PAGE>

                                   EXHIBIT M-1

                     FORM OF CLASS A-1 CAP CORRIDOR CONTRACT

<TABLE>
<S>                  <C>
Date:                March 8, 2007

To:                  La Salle Bank, National Association, not individually, but
                     solely as trustee for the Issuing Entity with respect to
                     Merrill Lynch Mortgage Investors Trust, Series 2007-HE1

                     135 S. LaSalle St. // Suite 1625
                     Chicago, IL 60603
                     Attn.: Kathryn Hawkinson, MLMI 2007 HE1
                     Tel: 312-904-6561
                     Fax: 312-904-2084

                     Merrill Lynch Mortgage Lending, Inc.
                     Attn: John O'Grady
                     Tel: 212-449-1441
                     Fax: 212-738-1110

From:                The Royal Bank of Scotland plc
                     c/o RBS Financial Markets
                     Level 7, 135 Bishopsgate
                     London EC2M 3UR
                     Attn: Head of Legal, Financial Markets
                     Tel: 44 207 085 5000
                     Fax: 44 207 085 8411

Copy To:             600 Steamboat Road
                     Greenwich, CT 06830
                     Attn: Legal Department - Derivatives Documentation
                     Tel.: 203-618-2531/32
                     Fax: 203-618-2533/34

Our Reference No.:   IRG16222783.2A/.2B

Re:                  Interest Rate Cap Corridor Transaction
</TABLE>

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the Transaction entered into between The Royal Bank of Scotland plc ("Party A")
and La Salle Bank, National Association, not individually, but solely as trustee
(the "Trustee") for the Issuing Entity (the "Issuing Entity") created under the
Pooling and Servicing Agreement (as defined herein) ("Party B") on the Trade
Date specified below (the "Transaction"). This letter agreement constitutes a
"Confirmation" as referred to in the Agreement specified below.

                                      M-1-1

<PAGE>

The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions") as published by the International Swaps and Derivatives
Association, Inc. are incorporated by reference herein. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.

For the purpose of this Confirmation, all references in the Definitions or the
Agreement to a "Swap Transaction" shall be deemed to be references to this
Transaction.

1.   This Confirmation supplements, forms part of, and is subject to, ISDA
     Master Agreement and Schedule dated as of March 8, 2007 (as the same may be
     amended or supplemented from time to time, the "Agreement"), between Party
     A and Party B. All provisions contained in the Agreement shall govern this
     Confirmation except as expressly modified below.

2.   The terms of the particular Transaction to which this Confirmation relates
     are as follows:

<TABLE>
<S>                                     <C>
Notional Amount:                        With respect to any Calculation Period,
                                        the lesser of (i) the "Notional Amount"
                                        set forth on Schedule A attached hereto
                                        and (ii) the aggregate Certificate
                                        Principal Balance of the Class A-1
                                        Certificates (the "Certificates") as of
                                        the first day of such Calculation Period
                                        (the "Relevant Balance").

                                        The Trustee shall make available each
                                        month on its website a statement
                                        containing the Relevant Balance at least
                                        five (5) Business Days prior to the
                                        related Floating Rate Payer Payment
                                        Date, and Party A shall be entitled to
                                        rely conclusively upon such statement.
                                        The Trustee's internet website is
                                        located at http://www.etrustee.net and
                                        assistance in using the website can be
                                        obtained by calling 312-992-2835.

                                        Any payment by Party A to to Party B in
                                        excess of the amount due under this
                                        Transaction on any Floating Rate Payer
                                        Payment Date (as a result of the
                                        Notional Amount for the related
                                        Calculation Period being other than the
                                        amount set forth in Schedule A hereto
                                        for such Calculation Period) shall be
                                        returned by Party B to Party A as soon
                                        as Party B becomes aware of such
                                        overpayment. Other than the return of
                                        such overpayment, neither Party B nor
                                        Party A shall incur any penalty or
                                        liability hereunder with respect to such
                                        overpayment.

Trade Date:                             March 6, 2007

Effective Date:                         March 8, 2007

Termination Date:                       August 25, 2007, subject to adjustment
                                        in accordance with the Business Day
                                        Convention.

Fixed Amounts:
</TABLE>

                                      M-1-2

<PAGE>

<TABLE>
<S>                                     <C>
Fixed Rate Payer:                       Party B

Fixed Rate Payer Payment Date:          March 8, 2007

Fixed Amount:                           USD 2,000

Floating Amounts:                       ______________

Floating Rate Payer:                    Party A

Cap Rate:                               For each Floating Payer Period End Date
                                        the percentage set forth in Schedule A
                                        as the Cap Rate for such Floating Rate
                                        Payer Period End Date.

Floating Rate Payer Period End Dates:   The 25th day of each month, commencing
                                        March 25, 2007, through and including
                                        the Termination Date, subject to
                                        adjustment in accordance with the
                                        Business Day Convention.

Floating Rate Payer Payment Dates:      Early Payment shall be applicable. The
                                        Floating Rate Payer Payment Dates shall
                                        be two (2) Business Days prior to each
                                        Floating Rate Payer Period End Date.

Floating Rate Option:                   USD-LIBOR-BBA, provided, however, that
                                        if the Floating Rate Option for any
                                        Calculation Period is greater than
                                        10.830%, then the Floating Rate for such
                                        Calculation Period shall be deemed to be
                                        10.830%

Designated Maturity:                    1 month

Spread:                                 None

Floating Rate Day Count Fraction:       Actual/360

Reset Dates:                            The first day of each Calculation Period
</TABLE>

                                      M-1-3

<PAGE>

<TABLE>
<S>                                     <C>
Compounding:                            Inapplicable:

Calculation Agent:                      Party A

Business Days:                          New York

Business Day Convention                 Modified Following
</TABLE>

3.   Account Details:

          Account Details for Party A:

               For the account of The Royal Bank of Scotland
               Financial Markets Fixed Income and Interest Rate
               Derivative Operations, London SWIFT RBOSGB2RTCM
               with JPMorgan Chase Bank, New York CHASUS33
               ABA # 021000021
               Account Number 400930153

          Account Details for Party B:

               LaSalle Bank
               ABA #071 000 505
               LaSalle CHGO/CTR/BNF:/LASALLE TRUST
               Ref Trust A/C# 724545.2

4.   Offices:

          The Office of Party A for this Transaction is London, England

5.   It is expressly understood and agreed by the parties hereto that (a) this
     Confirmation is executed and delivered by La Salle Bank, National
     Association, as the Trustee of the Issuing Entity, in the exercise of the
     powers and authority conferred upon and vested in it under the Pooling and
     Servicing Agreement dated as of February 1, 2007, by and among LaSalle Bank
     National Association, as trustee, Merrill Lynch Mortgage Investors, Inc.,
     as depositor, and Wilshire Credit Corporation., as servicer (the "Pooling
     and Servicing Agreement") and pursuant to instructions set forth therein,
     and that the Trustee shall perform its duties and obligations hereunder in
     accordance with the standard of care set forth in the Pooling and Servicing
     Agreement, (b) each of the representations, undertakings and agreements
     herein is made and intended not as a personal representation, undertaking
     or agreement of the Trustee but is made and intended for the purpose of
     binding only the Issuing Entity, and (c) under no circumstances shall the
     Trustee be personally liable for the payment of any indebtedness or
     expenses of the Issuing Entity or be liable for the breach or failure of
     any obligation, representation, warranty or covenant made or undertaken by
     the Issuing Entity herein; provided that nothing in this paragraph shall
     relieve the Trustee from

                                      M-1-4

<PAGE>

     performing its duties and obligations hereunder in accordance with the
     standard of care set forth in the Pooling and Servicing Agreement.

6.   Agency Role of Greenwich Capital Markets, Inc. This Transaction has been
     entered into by Greenwich Capital Markets, Inc., as agent for The Royal
     Bank of Scotland plc. Greenwich Capital Markets, Inc. has not guaranteed
     and is not otherwise responsible for the obligations of Party A under this
     Transaction.

7.   MLML Shall Not Benefit. The parties hereto agree and acknowledge that
     amounts paid hereunder are not intended to benefit the holder of any class
     of certificates rated by any rating agency if such holder is Merrill Lynch
     Mortgage Lending, Inc. ("MLML") or any of its affiliates. If MLML or any of
     its affiliates receives any such amounts, it will promptly remit (or, if
     such amounts are received by an affiliate of MLML, MLML hereby agrees that
     it will cause such affiliate to promptly remit) such amounts to the
     Securities Administrator, whereupon the Securities Administrator will
     promptly remit such amounts to the Cap Provider.

8.   In the event that the transaction to which the Pooling and Servicing
     Agreement relates does not occur, and the Merrill Lynch Mortgage Investors
     Trust, Series 2007-HE1 is not formed, Party A and MLML agree that MLML
     shall become Party B under this Agreement

                      [Signature Page Immediately Follows]

                                      M-1-5

<PAGE>

Please promptly confirm that the foregoing correctly sets forth the terms of the
Transaction entered into between us by executing this Confirmation and returning
it to us by facsimile to:

The Royal Bank of Scotland plc
Attention: Derivatives Documentation
Fax: 0207 375 6724 / 6486 Phone: 0207 375 4225

For and on behalf of                    For and on behalf of

THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION, NOT
                                        INDIVIDUALLY, BUT SOLELY AS TRUSTEE FOR
BY: GREENWICH CAPITAL MARKETS, INC.,    THE ISSUING ENTITY  WITH RESPECT TO
    ITS AGENT                           MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2007-HE1

-------------------------------------   ----------------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Title:                                  Title:
       ------------------------------          ---------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------

For and on behalf of

MERRILL LYNCH MORTGAGE LENDING INC.

-------------------------------------
Name:
      -------------------------------
Title:
      -------------------------------
Date:
      -------------------------------

                                      M-1-6

<PAGE>

                                   SCHEDULE A

     All dates subject to adjustment in accordance with the Modified Following
Business Day Convention.

<TABLE>
<CAPTION>
From and including:   To but excluding:   Notional Amount (USD):   Cap Rate:
-------------------   -----------------   ----------------------   ---------
<S>                   <C>                 <C>                      <C>
      3/8/2007            3/25/2007             355,399,000          10.83
     3/25/2007            4/25/2007             351,041,750          7.605
     4/25/2007            5/25/2007             345,676,069          7.864
     5/25/2007            6/25/2007             339,314,433          7.605
     6/25/2007            7/25/2007             331,970,945          7.864
     7/25/2007            8/25/2007             323,666,653          7.605
</TABLE>

                                      M-1-7

<PAGE>

                                   EXHIBIT M-2

                     FORM OF CLASS A-2 CAP CORRIDOR CONTRACT

<TABLE>
<S>                  <C>
Date:                March 8, 2007

To:                  La Salle Bank, National Association, not individually, but
                     solely as trustee for the Issuing Entity with respect to
                     Merrill Lynch Mortgage Investors Trust, Series 2007-HE1

                     135 S. LaSalle St. // Suite 1625
                     Chicago, IL 60603
                     Attn.: Kathryn Hawkinson, MLMI 2007 HE1
                     Tel: 312-904-6561
                     Fax: 312-904-2084

                     Merrill Lynch Mortgage Lending, Inc.
                     Attn: John O'Grady
                     Tel: 212-449-1441
                     Fax: 212-738-1110

From:                The Royal Bank of Scotland plc
                     c/o RBS Financial Markets
                     Level 7, 135 Bishopsgate
                     London EC2M 3UR
                     Attn: Head of Legal, Financial Markets
                     Tel: 44 207 085 5000
                     Fax: 44 207 085 8411

Copy To:             600 Steamboat Road
                     Greenwich, CT 06830
                     Attn: Legal Department - Derivatives Documentation
                     Tel.: 203-618-2531/32
                     Fax: 203-618-2533/34

Our Reference No.:   IRG16222804.2A/2B

Re:                  Interest Rate Cap Corridor Transaction
</TABLE>

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the Transaction entered into between The Royal Bank of Scotland plc ("Party A")
and La Salle Bank, National Association, not individually, but solely as trustee
(the "Trustee") for the Issuing Entity (the "Issuing Entity") created under the
Pooling and Servicing Agreement (as defined herein) ("Party B") on the Trade
Date specified below (the "Transaction"). This letter agreement constitutes a
"Confirmation" as referred to in the Agreement specified below.

                                      M-2-1

<PAGE>

The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions") as published by the International Swaps and Derivatives
Association, Inc. are incorporated by reference herein. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.

For the purpose of this Confirmation, all references in the Definitions or the
Agreement to a "Swap Transaction" shall be deemed to be references to this
Transaction.

1.   This Confirmation supplements, forms part of, and is subject to, ISDA
     Master Agreement and Schedule dated as of March 8, 2007 (as the same may be
     amended or supplemented from time to time, the "Agreement"), between Party
     A and Party B. All provisions contained in the Agreement shall govern this
     Confirmation except as expressly modified below.

2.   The terms of the particular Transaction to which this Confirmation relates
     are as follows:

<TABLE>
<S>                                     <C>
Notional Amount:                        With respect to any Calculation
                                        Period, the lesser of (i) the "Notional
                                        Amount" set forth on Schedule A attached
                                        hereto and (ii) the aggregate
                                        Certificate Principal Balance of the
                                        Class A-2 Certificates (the
                                        "Certificates") as of the first day of
                                        such Calculation Period (the "Relevant
                                        Balance").

                                        The Trustee shall make available each
                                        month on its website a statement
                                        containing the Relevant Balance at least
                                        five (5) Business Days prior to the
                                        related Floating Rate Payer Payment
                                        Date, and Party A shall be entitled to
                                        rely conclusively upon such statement.
                                        The Trustee's internet website is
                                        located at http://www.etrustee.net and
                                        assistance in using the website can be
                                        obtained by calling 312-992-2835.

                                        Any payment by Party A to to Party B in
                                        excess of the amount due under this
                                        Transaction on any Floating Rate Payer
                                        Payment Date (as a result of the
                                        Notional Amount for the related
                                        Calculation Period being other than the
                                        amount set forth in Schedule A hereto
                                        for such Calculation Period) shall be
                                        returned by Party B to Party A as soon
                                        as Party B becomes aware of such
                                        overpayment. Other than the return of
                                        such overpayment, neither Party B nor
                                        Party A shall incur any penalty or
                                        liability hereunder with respect to such
                                        overpayment.

   Trade Date:                          March 6, 2007

   Effective Date:                      March 8, 2007

   Termination Date:                    August 25, 2007, subject to adjustment
                                        in accordance with the Business Day
                                        Convention.

   Fixed Amounts:
</TABLE>

                                      M-2-2

<PAGE>

<TABLE>
<S>                                     <C>
   Fixed Rate Payer:                    Party B

   Fixed Rate Payer Payment Date:       March 8, 2007

   Fixed Amount:                        USD 2,000

Floating Amounts:

   Floating Rate Payer:                 Party A

   Cap Rate:                            For each Floating Payer Period End Date
                                        the percentage set forth in Schedule A
                                        as the Cap Rate for such Floating Rate
                                        Payer Period End Date.

   Floating Rate Payer Period End       The 25th day of each month, commencing
   Dates:                               March 25, 2007, through and including
                                        the Termination Date, subject to
                                        adjustment in accordance with the
                                        Business Day Convention.

   Floating Rate Payer Payment          Early Payment shall be applicable. The
   Dates:                               Floating Rate Payer Payment Dates shall
                                        be two (2) Business Days prior to each
                                        Floating Rate Payer Period End Date.

   Floating Rate Option:                USD-LIBOR-BBA, provided, however, that
                                        if the Floating Rate Option for any
                                        Calculation Period is greater than
                                        10.360%, then the Floating Rate for such
                                        Calculation Period shall be deemed to be
                                        10.360%

   Designated Maturity:                 1 month

   Spread:                              None

   Floating Rate Day Count Fraction:    Actual/360

   Reset Dates:                         The first day of each Calculation Period
</TABLE>

                                      M-2-3

<PAGE>

<TABLE>
<S>                                     <C>
Compounding:                            Inapplicable:

Calculation Agent:                      Party A

Business Days:                          New York

Business Day Convention                 Modified Following
</TABLE>

3.   Account Details:

          Account Details for Party A:

               For the account of The Royal Bank of Scotland
               Financial Markets Fixed Income and Interest Rate
               Derivative Operations, London SWIFT RBOSGB2RTCM
               with JPMorgan Chase Bank, New York CHASUS33
               ABA # 021000021
               Account Number 400930153

          Account Details for Party B:

               LaSalle Bank
               ABA #071 000 505
               LaSalle CHGO/CTR/BNF:/LASALLE TRUST
               Ref Trust A/C# 724545.2

4.   Offices:

     The Office of Party A for this Transaction is London, England

5.   It is expressly understood and agreed by the parties hereto that (a) this
     Confirmation is executed and delivered by La Salle Bank, National
     Association, as the Trustee of the Issuing Entity, in the exercise of the
     powers and authority conferred upon and vested in it under the Pooling and
     Servicing Agreement dated as of February 1, 2007, by and among LaSalle Bank
     National Association, as trustee, Merrill Lynch Mortgage Investors, Inc.,
     as depositor, and Wilshire Credit Corporation., as servicer (the "Pooling
     and Servicing Agreement") and pursuant to instructions set forth therein,
     and that the Trustee shall perform its duties and obligations hereunder in
     accordance with the standard of care set forth in the Pooling and Servicing
     Agreement, (b) each of the representations, undertakings and agreements
     herein is made and intended not as a personal representation, undertaking
     or agreement of the Trustee but is made and intended for the purpose of
     binding only the Issuing Entity, and (c) under no circumstances shall the
     Trustee be personally liable for the payment of any indebtedness or
     expenses of the Issuing Entity or be liable for the breach or failure of
     any obligation, representation, warranty or covenant made or undertaken by
     the Issuing Entity herein; provided that nothing in this paragraph shall
     relieve the Trustee from performing its duties and obligations hereunder in
     accordance with the standard of care set forth in the Pooling and Servicing
     Agreement.

                                      M-2-4

<PAGE>

6.   Agency Role of Greenwich Capital Markets, Inc. This Transaction has been
     entered into by Greenwich Capital Markets, Inc., as agent for The Royal
     Bank of Scotland plc. Greenwich Capital Markets, Inc. has not guaranteed
     and is not otherwise responsible for the obligations of Party A under this
     Transaction.

7.   MLML Shall Not Benefit. The parties hereto agree and acknowledge that
     amounts paid hereunder are not intended to benefit the holder of any class
     of certificates rated by any rating agency if such holder is Merrill Lynch
     Mortgage Lending, Inc. ("MLML") or any of its affiliates. If MLML or any of
     its affiliates receives any such amounts, it will promptly remit (or, if
     such amounts are received by an affiliate of MLML, MLML hereby agrees that
     it will cause such affiliate to promptly remit) such amounts to the
     Securities Administrator, whereupon the Securities Administrator will
     promptly remit such amounts to the Cap Provider.

8.   In the event that the transaction to which the Pooling and Servicing
     Agreement relates does not occur, and the Merrill Lynch Mortgage Investors
     Trust, Series 2007-HE1 is not formed, Party A and MLML agree that MLML
     shall become Party B under this Agreement

                      [Signature Page Immediately Follows]

                                      M-2-5

<PAGE>

Please promptly confirm that the foregoing correctly sets forth the terms of the
Transaction entered into between us by executing this Confirmation and returning
it to us by facsimile to:

The Royal Bank of Scotland plc
Attention: Derivatives Documentation
Fax: 0207 375 6724 / 6486 Phone: 0207 375 4225

For and on behalf of                    For and on behalf of
THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION, NOT
                                        INDIVIDUALLY, BUT SOLELY AS
BY: GREENWICH CAPITAL MARKETS, INC.,    TRUSTEE FOR THE ISSUING ENTITY WITH
    ITS AGENT                           RESPECT TO MERRILL LYNCH MORTGAGE
                                        INVESTORS TRUST, SERIES 2007-HE1

-------------------------------------   ----------------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Title:                                  Title:
       ------------------------------          ---------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------

For and on behalf of
MERRILL LYNCH MORTGAGE LENDING INC.

-------------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
Date:
      -------------------------------

                                      M-2-6

<PAGE>

                                   SCHEDULE A

     All dates subject to adjustment in accordance with the Modified Following
Business Day Convention.

<TABLE>
<CAPTION>
From and including:   To but excluding:   Notional Amount (USD):   Cap Rate:
-------------------   -----------------   ----------------------   ---------
<S>                   <C>                 <C>                      <C>
      3/8/2007            3/25/2007             547,408,000          10.36
     3/25/2007            4/25/2007             540,325,478          7.679
     4/25/2007            5/25/2007             531,694,179          7.941
     5/25/2007            6/25/2007             521,533,897           7.68
     6/25/2007            7/25/2007             509,868,365          7.943
     7/25/2007            8/25/2007             496,738,886          7.683
</TABLE>

                                     M-2-7
<PAGE>

                                   EXHIBIT M-3

             FORM OF SUBORDINATE CERTIFICATES CAP CORRIDOR CONTRACT

<TABLE>
<S>                <C>
Date:              March 8, 2007

To:                La Salle Bank, National Association, not individually, but
                   solely as trustee for the Issuing Entity with respect to
                   Merrill Lynch Mortgage Investors Trust, Series 2007-HE1

                   135 S. LaSalle St.//Suite 1625
                   Chicago, IL 60603
                   Attn.: Kathryn Hawkinson, MLMI 2007 HE1
                   Tel: 312-904-6561
                   Fax: 312-904-2084

                   Merrill Lynch Mortgage Lending, Inc.
                   Attn: John O'Grady
                   Tel: 212-449-1441
                   Fax: 212-738-1110

From:              The Royal Bank of Scotland plc
                   c/o RBS Financial Markets
                   Level 7, 135 Bishopsgate
                   London EC2M 3UR
                   Attn: Head of Legal, Financial Markets
                   Tel: 44 207 085 5000
                   Fax: 44 207 085 8411

Copy To:           600 Steamboat Road
                   Greenwich, CT 06830
                   Attn: Legal Department - Derivatives Documentation
                   Tel.: 203-618-2531/32
                   Fax: 203-618-2533/34

Our Reference No.: IRG16222808.2A/2B

Re:                Interest Rate Cap Corridor Transaction
</TABLE>

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the Transaction entered into between The Royal Bank of Scotland plc ("Party A")
and La Salle Bank, National Association, not individually, but solely as trustee
(the "Trustee") for the Issuing Entity (the "Issuing Entity") created under the
Pooling and Servicing Agreement (as defined herein) ("Party B") on the Trade
Date specified below (the "Transaction"). This letter agreement constitutes a
"Confirmation" as referred to in the Agreement specified below.

                                      M-3-1

<PAGE>

The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions") as published by the International Swaps and Derivatives
Association, Inc. are incorporated by reference herein. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.

For the purpose of this Confirmation, all references in the Definitions or the
Agreement to a "Swap Transaction" shall be deemed to be references to this
Transaction.

1.   This Confirmation supplements, forms part of, and is subject to, ISDA
     Master Agreement and Schedule dated as of March 8, 2007 (as the same may be
     amended or supplemented from time to time, the "Agreement"), between Party
     A and Party B. All provisions contained in the Agreement shall govern this
     Confirmation except as expressly modified below.

2.   The terms of the particular Transaction to which this Confirmation relates
     are as follows:

<TABLE>
<S>                              <C>
Notional Amount:                 With respect to any Calculation Period, the
                                 lesser of (i) the "Notional Amount" set forth
                                 on Schedule A attached hereto and (ii) the
                                 aggregate Certificate Principal Balance of the
                                 Class M and Class B Certificates (together the
                                 "Certificates") as of the first day of such
                                 Calculation Period (the "Relevant Balance").

                                 The Trustee shall make available each month on
                                 its website a statement containing the Relevant
                                 Balance at least five (5) Business Days prior
                                 to the related Floating Rate Payer Payment
                                 Date, and Party A shall be entitled to rely
                                 conclusively upon such statement. The Trustee's
                                 internet website is located at
                                 http://www.etrustee.net and assistance in using
                                 the website can be obtained by calling
                                 312-992-2835.

                                 Any payment by Party A to to Party B in excess
                                 of the amount due under this Transaction on any
                                 Floating Rate Payer Payment Date (as a result
                                 of the Notional Amount for the related
                                 Calculation Period being other than the amount
                                 set forth in Schedule A hereto for such
                                 Calculation Period) shall be returned by Party
                                 B to Party A as soon as Party B becomes aware
                                 of such overpayment. Other than the return of
                                 such overpayment, neither Party B nor Party A
                                 shall incur any penalty or liability hereunder
                                 with respect to such overpayment.

   Trade Date:                   March 6, 2007

   Effective Date:               March 8, 2007

   Termination Date:             August 25, 2007, subject to adjustment in
                                 accordance with the Business Day Convention.

   Fixed Amounts:
</TABLE>

                                      M-3-2

<PAGE>

<TABLE>
<S>                              <C>
   Fixed Rate Payer:             Party B

   Fixed Rate Payer Payment
      Date:                      March 8, 2007

   Fixed Amount:                 USD 2,000

Floating Amounts:

   Floating Rate Payer:          Party A

   Cap Rate:                     For each Floating Payer Period End Date the
                                 percentage set forth in Schedule A as the Cap
                                 Rate for such Floating Rate Payer Period End
                                 Date.

   Floating Rate Payer Period    The 25th day of each month, commencing March
      End Dates:                 25, 2007, through and including the Termination
                                 Date, subject to adjustment in accordance with
                                 the Business Day Convention.

   Floating Rate Payer Payment   Early Payment shall be applicable. The Floating
      Dates:                     Rate Payer Payment Dates shall be two (2)
                                 Business Days prior to each Floating Rate Payer
                                 Period End Date.

   Floating Rate Option:         USD-LIBOR-BBA, provided, however, that if the
                                 Floating Rate Option for any Calculation Period
                                 is greater than 8.760%, then the Floating Rate
                                 for such Calculation Period shall be deemed to
                                 be 8.760%

   Designated Maturity:          1 month

   Spread:                       None

   Floating Rate Day Count
      Fraction:                  Actual/360

   Reset Dates:                  The first day of each Calculation Period
</TABLE>

                                      M-3-3

<PAGE>

<TABLE>
<S>                              <C>
   Compounding:                  Inapplicable:

Calculation Agent:               Party A

Business Days:                   New York

Business Day Convention          Modified Following
</TABLE>

3.   Account Details:

          Account Details for Party A:

               For the account of The Royal Bank of Scotland
               Financial Markets Fixed Income and Interest Rate
               Derivative Operations, London SWIFT RBOSGB2RTCM
               with JPMorgan Chase Bank, New York CHASUS33
               ABA # 021000021
               Account Number 400930153

          Account Details for Party B:

               LaSalle Bank
               ABA #071 000 505
               LaSalle CHGO/CTR/BNF:/LASALLE TRUST
               Ref Trust A/C# 724545.2

4.   Offices:

     The Office of Party A for this Transaction is London, England

5.   It is expressly understood and agreed by the parties hereto that (a) this
     Confirmation is executed and delivered by La Salle Bank, National
     Association, as the Trustee of the Issuing Entity, in the exercise of the
     powers and authority conferred upon and vested in it under the Pooling and
     Servicing Agreement dated as of February 1, 2007, by and among LaSalle Bank
     National Association, as trustee, Merrill Lynch Mortgage Investors, Inc.,
     as depositor, and Wilshire Credit Corporation., as servicer (the "Pooling
     and Servicing Agreement") and pursuant to instructions set forth therein,
     and that the Trustee shall perform its duties and obligations hereunder in
     accordance with the standard of care set forth in the Pooling and Servicing
     Agreement, (b) each of the representations, undertakings and agreements
     herein is made and intended not as a personal representation, undertaking
     or agreement of the Trustee but is made and intended for the purpose of
     binding only the Issuing Entity, and (c) under no circumstances shall the
     Trustee be personally liable for the payment of any indebtedness or
     expenses of the Issuing Entity or be liable for the breach or failure of
     any obligation, representation, warranty or covenant made or undertaken by
     the Issuing Entity herein; provided that nothing in this paragraph shall
     relieve the Trustee from performing its duties and obligations hereunder in
     accordance with the standard of care set forth in the Pooling and Servicing
     Agreement.

                                      M-3-4

<PAGE>

6.   Agency Role of Greenwich Capital Markets, Inc. This Transaction has been
     entered into by Greenwich Capital Markets, Inc., as agent for The Royal
     Bank of Scotland plc. Greenwich Capital Markets, Inc. has not guaranteed
     and is not otherwise responsible for the obligations of Party A under this
     Transaction.

7.   MLML Shall Not Benefit. The parties hereto agree and acknowledge that
     amounts paid hereunder are not intended to benefit the holder of any class
     of certificates rated by any rating agency if such holder is Merrill Lynch
     Mortgage Lending, Inc. ("MLML") or any of its affiliates. If MLML or any of
     its affiliates receives any such amounts, it will promptly remit (or, if
     such amounts are received by an affiliate of MLML, MLML hereby agrees that
     it will cause such affiliate to promptly remit) such amounts to the
     Securities Administrator, whereupon the Securities Administrator will
     promptly remit such amounts to the Cap Provider.

8.   In the event that the transaction to which the Pooling and Servicing
     Agreement relates does not occur, and the Merrill Lynch Mortgage Investors
     Trust, Series 2007-HE1 is not formed, Party A and MLML agree that MLML
     shall become Party B under this Agreement

                      [Signature Page Immediately Follows]

                                      M-3-5

<PAGE>

Please promptly confirm that the foregoing correctly sets forth the terms of the
Transaction entered into between us by executing this Confirmation and returning
it to us by facsimile to:

The Royal Bank of Scotland plc
Attention: Derivatives Documentation
Fax: 0207 375 6724 / 6486 Phone: 0207 375 4225

For and on behalf of                    For and on behalf of
THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION, NOT
                                        INDIVIDUALLY, BUT SOLELY AS TRUSTEE FOR
BY: GREENWICH CAPITAL MARKETS, INC.,    THE ISSUING ENTITY WITH RESPECT TO
ITS AGENT                               MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2007-HE1

-------------------------------------   ----------------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Title:                                  Title:
       ------------------------------          ---------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------

For and on behalf of
MERRILL LYNCH MORTGAGE LENDING INC.

-------------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
Date:
      -------------------------------

                                      M-3-6

<PAGE>

                                   SCHEDULE A

     All dates subject to adjustment in accordance with the Modified Following
Business Day Convention.

<TABLE>
<CAPTION>
From and including:   To but excluding:   Notional Amount (USD):   Cap Rate:
-------------------   -----------------   ----------------------   ---------
<S>                   <C>                 <C>                      <C>
      3/8/2007            3/25/2007             230,289,000           8.76
     3/25/2007            4/25/2007             230,289,000          7.062
     4/25/2007            5/25/2007             230,289,000          7.322
     5/25/2007            6/25/2007             230,289,000          7.063
     6/25/2007            7/25/2007             230,289,000          7.324
     7/25/2007            8/25/2007             230,289,000          7.064
</TABLE>

                                      M-3-7

<PAGE>

                                   EXHIBIT M-4

             FORM OF CREDIT SUPPORT ANNEX FOR CAP CORRIDOR CONTRACTS

Party A - The Royal Bank of Scotland plc
Party B - La Salle Bank, National Association, not individually, but solely as
trustee for the Issuing Entity with respect to Merrill Lynch Mortgage Investors
Trust, Series 2007-HE1

PARAGRAPH 13. ELECTIONS AND VARIABLES

(a)  SECURITY INTEREST FOR "OBLIGATIONS". The term "Obligations" as used in this
     Annex includes the following additional obligations:

     With respect to Party A: Not applicable.
     With respect to Party B: Not applicable.

(b)  CREDIT SUPPORT OBLIGATIONS.

     (i)  DELIVERY AMOUNT, RETURN AMOUNT AND CREDIT SUPPORT AMOUNT.

          (A)  "DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a),
               except that (I) the words "upon a demand made by the Secured
               Party on or promptly following a Valuation Date" shall be deleted
               and replaced by the words "not later than the close of business
               on each Valuation Date" and (II) the sentence beginning "Unless
               otherwise specified in Paragraph 13" and ending "(ii) the Value
               as of that Valuation Date of all Posted Credit Support held by
               the Secured Party." shall be deleted and replaced by the
               following:

          "THE "DELIVERY AMOUNT" APPLICABLE TO THE PLEDGOR FOR ANY VALUATION
          DATE WILL EQUAL THE GREATEST OF

          (1) THE AMOUNT BY WHICH (A) THE S&P COLLATERAL AMOUNT FOR SUCH
          VALUATION DATE EXCEEDS (B) THE S&P VALUE AS OF SUCH VALUATION DATE OF
          ALL POSTED CREDIT SUPPORT HELD BY THE SECURED PARTY,

          (2) THE AMOUNT BY WHICH (A) THE MOODY'S FIRST COLLATERAL AMOUNT FOR
          SUCH VALUATION DATE EXCEEDS (B) THE MOODY'S FIRST TRIGGER VALUE AS OF
          SUCH VALUATION DATE OF ALL POSTED CREDIT SUPPORT HELD BY THE SECURED
          PARTY, AND

          (3) THE AMOUNT BY WHICH (A) THE MOODY'S SECOND COLLATERAL AMOUNT FOR
          SUCH VALUATION DATE EXCEEDS (B) THE MOODY'S SECOND TRIGGER VALUE AS OF
          SUCH VALUATION DATE OF ALL POSTED CREDIT SUPPORT HELD BY THE SECURED
          PARTY."

          (B)  "RETURN AMOUNT" has the meaning specified in Paragraph 3(b),
               except that the sentence beginning "Unless otherwise specified in
               Paragraph 13" and ending "(ii) the Credit Support Amount." shall
               be deleted and replaced by the following:

          "The "Return Amount" applicable to the Secured Party for any Valuation
          Date will equal the least of

                                      M-4-1

<PAGE>

          (1) the amount by which (a) the S&P Value as of such Valuation Date of
          all Posted Credit Support held by the Secured Party exceeds (b) the
          S&P Collateral Amount for such Valuation Date,

          (2) the amount by which (a) the Moody's First Trigger Value as of such
          Valuation Date of all Posted Credit Support held by the Secured Party
          exceeds (b) the Moody's First Collateral Amount for such Valuation
          Date, and

          (3) the amount by which (a) the Moody's Second Trigger Value as of
          such Valuation Date of all Posted Credit Support held by the Secured
          Party exceeds (b) the Moody's Second Collateral Amount for such
          Valuation Date."

     (C)  "CREDIT SUPPORT AMOUNT" shall not apply. For purposes of calculating
          any Delivery Amount or Return Amount for any Valuation Date, reference
          shall be made to the S&P Collateral Amount, the Moody's First
          Collateral Amount, or the Moody's Second Collateral Amount, in each
          case for such Valuation Date, as provided in Paragraphs 13(b)(i)(A)
          and 13(b)(i)(B), above.

          The "S&P COLLATERAL AMOUNT" means, for any Valuation Date, zero,
          provided that for so long as a First Rating Trigger Event with respect
          to S&P has occurred and is continuing for at least 30 days or a Second
          Rating Trigger Event with respect to S&P has occurred and is
          continuing, the S&P Collateral Amount shall equal the sum of (I) Party
          B's Exposure and (II) the sum, for each transaction to which this
          Annex relates, of the product

               S&P VOLATILITY BUFFER*HEDGE NOTIONAL, WHERE

          "Hedge Notional" MEANS THE NOTIONAL AMOUNT OF THE RELEVANT TRANSACTION
          FOR THE RELEVANT CALCULATION PERIOD.

          "S&P Volatility Buffer" MEANS, FOR ANY TRANSACTION, THE RELATED
          PERCENTAGE SET FORTH IN THE FOLLOWING TABLE.

<TABLE>
<CAPTION>
                              REMAINING   REMAINING   REMAINING   REMAINING
THE HIGHER OF THE S&P          WEIGHTED    WEIGHTED    WEIGHTED    WEIGHTED
SHORT-TERM CREDIT RATING OF    AVERAGE     AVERAGE     AVERAGE     AVERAGE
(I) PARTY A AND (II) THE       MATURITY    MATURITY    MATURITY    MATURITY
CREDIT SUPPORT PROVIDER OF      UP TO       UP TO       UP TO       UP TO
PARTY A, IF APPLICABLE         3 YEARS     5 YEARS     10 YEARS    30 YEARS
---------------------------   ---------   ---------   ---------   ---------
<S>                           <C>         <C>         <C>         <C>
AT LEAST "A-2"                  2.75%       3.25%       4.00%       4.75%
"A-3"                           3.25%       4.00%       5.00%       6.25%
"BB+" OR LOWER                  3.50%       4.50%       6.75%       7.50%
</TABLE>

          The "MOODY'S FIRST COLLATERAL AMOUNT" means zero, provided that for so
          long as (A) a First Rating Trigger Event with respect to Moody's has
          occurred and is continuing and either (i) such event existed at the
          time this Annex was executed or assigned by Party A to another party
          or (ii) at least 30 Local Business Days have elapsed since such event

                                      M-4-2

<PAGE>

          occurred and (B)(i) no Second Rating Trigger Event with respect to
          Moody's has occurred and is continuing or (ii) less than 30 Local
          Business Days have elapsed since the occurrence of a Second Rating
          Trigger Event with respect to Moody's, then the Moody's First
          Collateral Amount shall equal the sum of (I) Party B's Exposure and
          (ii) the sum, over all Transactions, of

               Min [15*DV01, 2%*Hedge Notional]; and

          The "MOODY'S SECOND COLLATERAL AMOUNT" means zero, provided that, for
          so long as a Second Rating Trigger Event WITH RESPECT TO MOODY'S has
          occurred and has been continuing for 30 or more Local Business Days,
          then the Moody's Second Collateral Amount shall equal

               Max [0, Next Payment, Party B's Exposure + Additional Amount],
               where

          Next Payment = the sum of the net payments due from Party A to Party B
          (if any) on the next payment date for all Transactions.

          Additional Amount = the sum, over all Transactions of

               (a)  with respect to each Transaction that is a single currency
                    swap with a fixed notional amount for each Calculation
                    Period, Min [50*DV01, 8%* Aggregate Hedge Notional], and

               (b)  with respect to each Transaction that is not a
                    single-currency swap with a fixed notional amount for each
                    Calculation Period, Min [65*DV01, 10%* Aggregate Hedge
                    Notional], where

          DV01 = Party A's estimate of the change in the mid-market value of
          Party B's Exposure resulting from a one basis point change in the swap
          curve, and

          Aggregate Hedge Notional = the aggregate of the applicable notional
          amounts of all Transactions for the relevant Calculation Period.

                                      M-4-3
<PAGE>

          (ii) ELIGIBLE COLLATERAL. The following items will qualify as
          "Eligible Collateral" for the party specified (for the avoidance of
          doubt, all Eligible Collateral to be denominated in USD):

<TABLE>
<CAPTION>
                                                                                             Moody's Valuation
                                                                        Moody's Valuation      Percentage at
                                                      S&P Valuation    Percentage at First     Second Trigger
Collateral Type                                         Percentage    Trigger Rating Event      Rating Event
---------------                                       -------------   --------------------   -----------------
<S>                                                   <C>             <C>                    <C>
(A) Cash, in the form of USD                               100%               100%                  100%

(B) Negotiable Debt Obligations (as defined below)        98.9%               100%                  100%
issued by the Government of the United States of
America having a remaining maturity of not more
than one year.

(C) Negotiable Debt Obligations issued by the             98.0%               100%                   99%
Government of the United States of America having a
remaining maturity of more than one but not more
than two years.

(D) Negotiable Debt Obligations issued by the             97.4%               100%                   98%
Government of the United States of America having a
remaining maturity of more than two but not more
than three years.

(E) Negotiable Debt Obligations issued by the             95.5%               100%                   97%
Government of the United States of America having a
remaining maturity of more than three but not more
than five years.

(F) Negotiable Debt Obligations issued by the             93.7%               100%                   96%
Government of the United States of America having a
remaining maturity of more than five but not more
than seven years.

(G) Negotiable Debt Obligations issued by the             92.5%               100%                   94%
Government of the United States of America having a
remaining maturity of more than seven but not more
than ten years.

(H) Negotiable Debt Obligations issued by the             91.1%               100%                   90%
Government of the United States of America having a
remaining maturity of more than ten but not more
than twenty years.

(I) Negotiable Debt Obligations issued by the             88.6%               100%                   88%
Government of the United States of America having a
remaining maturity of more than twenty years.
</TABLE>

                                      M-4-4

<PAGE>

     As used above, the following terms have the indicated meanings:

          "NEGOTIABLE DEBT OBLIGATION" means a debt obligation in a stated
          principal amount with a non-variable fixed maturity, which cannot be
          redeemed by its issuer before its maturity nor put to the issuer for
          redemption before its maturity. It must bear interest on its stated
          principal amount at a non-variable fixed rate until maturity.

     (iii) OTHER ELIGIBLE SUPPORT. The following items will qualify as "Other
           Eligible Support" for the party specified: Not Applicable.

     (iv) THRESHOLDS.

          (A)  "INDEPENDENT AMOUNT" means with respect to Party A: Not
               Applicable.

               "INDEPENDENT AMOUNT" means with respect to Party B: Not
               Applicable.

          (B)  "THRESHOLD" means with respect to Party A, infinity, provided
               that for so long as (1) a First Rating Trigger Event with respect
               to Moody's has occurred and is continuing and either (i) such
               First Rating Trigger Event existed at the time this Annex was
               executed or (ii) at least 30 Local Business days have elapsed
               since such First Rating Trigger Event occurred, or (2) a First
               Rating Trigger Event with respect to S&P has occurred and is
               continuing for at least 30 days or a Second Rating Trigger Event
               with respect to S&P has occurred and is continuing, the Threshold
               with respect to Party A shall be zero.

               "THRESHOLD" means with respect to Party B, infinity.

          (C)  "MINIMUM TRANSFER AMOUNT" means with respect to Party A: USD
               100,000, and with respect to Party B: USD 100,000, provided, that
               if the aggregate principal balance of the Certificates rated by
               S&P ceases to be more than USD 50,000,000, the "MINIMUM TRANSFER
               AMOUNT" shall be USD 50,000 and provided further that if a Party
               is a Defaulting Party, or the Affected Party under an Additional
               Termination Event, the Minimum Transfer Amount for such party
               shall be zero.

          (D)  ROUNDING. The Delivery Amount and the Return Amount will be
               rounded up and down, respectively, to the nearest integral
               multiple of $10,000.

(c)  (i) EXTERNAL VERIFICATION. Notwithstanding anything to the contrary in the
     definitions of Valuation Agent or Valuation Date, at any time at which
     Party A (or, to the extent applicable, its Credit Support Provider) does
     not have a long-term unsubordinated and unsecured debt rating of at least
     "BBB+" from S&P, the Valuation Agent shall (A) calculate the Secured
     Party's Exposure and the S&P Value (as defined below) of Posted Credit
     Support on each Valuation Date based on internal marks and (B) verify such
     calculations with external marks monthly by obtaining on the last Local
     Business Day of each calendar month two external marks for each Transaction
     to which this Annex relates and for all Posted Credit Support; such
     verification of the Secured Party's Exposure shall be based on the higher
     of the two external marks. Each external mark in respect of a Transaction
     shall be obtained from an independent Reference Market-maker that would be
     eligible and willing to enter into such Transaction in the absence of the
     current

                                      M-4-5

<PAGE>

     derivative provider, provided that an external mark may not be obtained
     from the same Reference Market-maker more than four times in any 12-month
     period. The Valuation Agent shall obtain these external marks directly or
     through an independent third party, in either case at no cost to Party B.
     The Valuation Agent shall calculate on each Valuation Date (for purposes of
     this paragraph, the last Local Business Day in each calendar month referred
     to above shall be considered a Valuation Date) the Secured Party's Exposure
     based on the greater of the Valuation Agent's internal marks and the
     external marks received. If the S&P Value on any such Valuation Date of all
     Posted Credit Support then held by the Secured Party is less than the S&P
     Collateral Amount on such Valuation Date (in each case as determined
     pursuant to this paragraph), Party A shall, within three Local Business
     Days of such Valuation Date, Transfer to the Secured Party Eligible Credit
     Support having an S&P Value as of the date of Transfer at least equal to
     such deficiency.

     (ii) NOTICE TO S&P. At any time at which Party A (or, to the extent
     applicable, its Credit Support Provider) does not have a long-term
     unsubordinated and unsecured debt rating of at least "BBB+" from S&P, the
     Valuation Agent shall provide to S&P not later than the Notification Time
     on the Local Business Day following each Valuation Date its calculations of
     the Secured Party's Exposure and the S&P Value of any Eligible Credit
     Support or Posted Credit Support for that Valuation Date. The Valuation
     Agent shall also provide to S&P any external marks received pursuant to the
     preceding paragraph.

(D)  VALUATION AND TIMING.

     (i) "VALUATION AGENT" means Party A.

     (ii) "VALUATION DATE" means: each Local Business Day.

     (iii) "VALUATION TIME" means the close of business on the Local Business
     Day before the Valuation Date or date of calculation, as applicable;
     provided, however, that the calculations of Value and Exposure will be made
     as of approximately the same time on the same date.

     (iv) "NOTIFICATION TIME" means 9:00 a.m., New York time, on a Local
     Business Day.

(D)  CONDITIONS PRECEDENT AND SECURED PARTY'S RIGHTS AND REMEDIES. For purposes
     of Paragraph 8(a), each Termination Event will be a "Specified Condition"
     for the Pledgor, if the Secured Party has designated an Early Termination
     Date in connection with the Termination Event. For all other purposes of
     this Annex, each Termination Event specified below with respect to a party
     will be a "Specified Condition" for that party (that party being the
     Affected Party if the Termination Event occurs with respect to that party):

<TABLE>
<CAPTION>
Termination Event                 Party A   Party B
-----------------                 -------   -------
<S>                               <C>       <C>
Illegality                         [N/A]     [N/A]
Tax Event                          [N/A]     [N/A]
Tax Event Upon Merger              [N/A]     [N/A]
Credit Event Upon Merger           [N/A]     [N/A]
Additional Termination Event(s)     [X]       [X]
</TABLE>

                                      M-4-6

<PAGE>

(e)  SUBSTITUTION.

     (i) "SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

     (ii) CONSENT. The Pledgor shall obtain the Secured Party's consent for any
     substitution pursuant to Paragraph 4(d). Such consent shall not be
     unreasonably withheld.

(f)  DISPUTE RESOLUTION.

     (i) "RESOLUTION TIME" means 9:00 a.m., New York time, on the Local Business
     Day following the date on which the notice of the dispute is given by the
     Disputing Party to the other party.

     (ii) VALUE. For the purposes of Paragraphs 5(i)(c) and 5(ii), the Value of
     the outstanding Credit Support Amount or of any transfer of Eligible Credit
     Support or Posted Credit Support other than Cash (the "Non-Cash Credit
     Support") will be calculated as follows: the product of (A) appropriate
     Valuation Percentage and (B) the sum of (I) the mean of the bid prices
     quoted on such date by any three principal market makers for such Non-Cash
     Credit Support chosen by the Disputing Party, or if three such quotations
     are not available from principal market makers for such date, using two
     such quotations, or if only one such quotation is obtained using such
     quotation, or if no quotations are available using the mean of such bid
     prices as of the day, next preceding such date, on which one or more of
     such quotations were available, plus (II) the accrued interest on such
     Non-Cash Credit Support (except to the extent Transferred to a party
     pursuant to this Agreement or included in the applicable price referred to
     in subparagraph (A) of this Clause) as of such date.

     (iii) ALTERNATIVE. The provisions of Paragraph 5 will apply.

(g)  HOLDING AND USING POSTED COLLATERAL.

     (i) ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS.
     Party B or its Custodian will be entitled to hold Posted Collateral
     pursuant to Paragraph 6(b); provided that the following conditions
     applicable to it are satisfied:

          (A)  In the event that Party B holds Posted Collateral, Party B is not
               a Defaulting Party or an Affected Party under an Additional
               Termination Event.

          (B)  Posted Collateral may be held only in the following jurisdiction:
               New York.

          (C)  In the event that the Custodian holds Posted Collateral, the
               long-term unsubordinated unsecured debt of the Custodian is rated
               at least "A+" and "A-1" by Standard & Poors, a division of The
               McGraw-Hill Companies, Inc. (or any successor thereto) and at
               least "A1" by Moody's Investors Service, Inc. (or any successor
               thereto).

          Initially, the Custodian for Party B is La Salle Bank, National
          Association.

     (ii) USE OF POSTED COLLATERAL. The provisions of Paragraph 6(c)(i) shall
     not apply.

                                      M-4-7

<PAGE>

(h)  DISTRIBUTIONS AND INTEREST AMOUNT.

     (i) INTEREST RATE. The "Interest Rate" will be the weighted average rate of
     interest earned by the Secured Party in respect of Posted Collateral in the
     form of Cash. Party A directs the Custodian to deposit any Posted
     Collateral that is in the form of Cash into an account that earns interest
     at prevailing rates

     (ii) TRANSFER OF INTEREST AMOUNT. The transfer of the Interest Amount will
     be made on the second Local Business Day of each calendar month in respect
     of the Interest Amount for the preceding calendar month, provided, however,
     that the obligation of Party B to Transfer any Interest Amount to Party A
     shall be limited to the extent that Party B has earned and received such
     funds and such funds are available to Party B.

     (iii) ALTERNATIVE TO INTEREST AMOUNT. Not applicable.

(i)  ADDITIONAL REPRESENTATION(S). Not applicable.

(j)  OTHER ELIGIBLE SUPPORT AND OTHER POSTED SUPPORT.

     (i) "VALUE" with respect to Other Eligible Support and Other Posted Support
     means: Not applicable.

     (ii) "TRANSFER" with respect to Other Eligible Support and Other Posted
     Support means: Not applicable.

(k)  DEMANDS AND NOTICES.

     All demands, specifications and notices under this Annex will be made
     pursuant to the Notices Section of this Agreement, unless otherwise
     specified here:

     Party A:

          Global Collateral Support Unit
          The Royal Bank of Scotland plc, Financial Markets
          280 Bishopsgate
          London EC2M 4RB
          Facsimile: 44.207 085 4793
          Telephone: 44.207 085 5209

          With a copy to:

          600 Steamboat Road
          Greenwich CT 06830
          Attn: Derivatives Settlements
          Telephone: 203-618-2781 (Rob Bache)
                     203-618-2440 (Operations main number)
          Facsimile: 203-618-2579

                                      M-4-8

<PAGE>

     Party B:

          135 S. LaSalle St. // Suite 1625
          Chicago, IL 60603
          Attn.: Kathryn Hawkinson, MLMI 2007 HE1
          Tel: 312-904-6561
          Fax: 312-904-2084

(l)  ADDRESS FOR TRANSFERS. All transfers hereunder will be made to the account
     or accounts most recently notified by each party to the other.

(m)  OTHER PROVISIONS.

     (i) SINGLE TRANSFEROR AND SINGLE TRANSFEREE. Party A and Party B hereby
     agree that, notwithstanding anything to the contrary in this Annex, (a) the
     term "Secured Party" as used in this Annex means only Party B, (b) the term
     "Pledgor" as used in this Annex means only Party A, (c) only Party A makes
     the pledge and grant in Paragraph 2, the acknowledgement in the final
     sentence of Paragraph 8(a) and the representations in Paragraph 9.

     (ii) EVENTS OF DEFAULT. Paragraph 7 will not apply to cause any Event of
     Default to exist with respect to Party B except that Paragraph 7(i) will
     apply to Party B solely in respect of Party B's obligations under Paragraph
     3(b) of the Credit Support Annex. Notwithstanding anything to the contrary
     in Paragraph 7, any failure by Party A to comply with or perform any
     obligation to be complied with or performed by Party A under the Credit
     Support Annex shall only be an Event of Default if (A) Second Rating
     Trigger Event with respect to S&P has occurred and been continuing or (B) a
     Second Rating Trigger Event with respect to Moody's has occurred and been
     continuing for 30 or more Local Business Days and such failure is not
     remedied on or before the third Local Business Day after notice of such
     failure is given to Party A.

     (iii) FORM OF ANNEX. Party A and Party B hereby agree that the text of
     Paragraphs 1 through 12, inclusive, of this Annex is intended to be the
     printed form of ISDA Credit Support Annex (Bilateral Form - ISDA Agreements
     Subject to New York Law Only version) as published and copyrighted in 1994
     by the International Swaps and Derivatives Association, Inc.

     (iv) EXPENSES. Notwithstanding anything to the contrary in Paragraph 10,
     the Pledgor will be responsible for, and will reimburse the Secured Party
     for, all transfer and other taxes and other costs involved in any Transfer
     of Eligible Collateral.

     (v) WITHHOLDING. Paragraph 6(d)(ii) is hereby amended by inserting
     immediately after "the Interest Amount" in the fourth line thereof the
     words "less any applicable withholding taxes."

     (vi) "LOCAL BUSINESS DAY" means, for purposes of the Credit Support Annex,
     any day on which (A) commercial banks are open for business (including
     dealings in foreign exchange and foreign currency deposits) in New York and
     the location of Party A, Party B and any Custodian, and (B) in relation to
     a Transfer of Eligible Collateral, any day on which the clearance system
     agreed between the parties for the delivery of Eligible Collateral is open
     for acceptance and execution of settlement instructions (or in the case of
     a Transfer of Cash or other Eligible Collateral for which delivery is
     contemplated by other means a day on which commercial banks are open for
     business (including dealings in foreign exchange and foreign deposits) in
     New York and the location of Party A, Party B and any Custodian.

                                      M-4-9

<PAGE>

     (vii) CALCULATION OF VALUE. Paragraph 4(c) is hereby amended by deleting
     the word "Value" and inserting in lieu thereof "S&P Value, Moody's First
     Trigger Value, Moody's Second Trigger Value". Paragraph 4(d)(ii) is hereby
     amended by (A) deleting the words "a Value" and inserting in lieu thereof
     "an S&P Value, Moody's First Trigger Value, and Moody's Second Trigger
     Value" and (B) deleting the words "the Value" and inserting in lieu thereof
     "S&P Value, Moody's First Trigger Value, and Moody's Second Trigger Value".
     Paragraph 5 (flush language) is hereby amended by deleting the word "Value"
     and inserting in lieu thereof "S&P Value, Moody's First Trigger Value, or
     Moody's Second Trigger Value". Paragraph 5(i) (flush language) is hereby
     amended by deleting the word "Value" and inserting in lieu thereof "S&P
     Value, Moody's First Trigger Value, and Moody's Second Trigger Value".
     Paragraph 5(i)(C) is hereby amended by deleting the word "the Value, if"
     and inserting in lieu thereof "any one or more of the S&P Value, Moody's
     First Trigger Value, or Moody's Second Trigger Value, as may be". Paragraph
     5(ii) is hereby amended by (1) deleting the first instance of the words
     "the Value" and inserting in lieu thereof "any one or more of the S&P
     Value, Moody's First Trigger Value, or Moody's Second Trigger Value" and
     (2) deleting the second instance of the words "the Value" and inserting in
     lieu thereof "such disputed S&P Value, Moody's First Trigger Value, or
     Moody's Second Trigger Value". Each of Paragraph 8(b)(iv)(B) and Paragraph
     11(a) is hereby amended by deleting the word "Value" and inserting in lieu
     thereof "least of the S&P Value, Moody's First Trigger Value, and Moody's
     Second Trigger Value".

     (viii) "MOODY'S FIRST TRIGGER VALUE" means, on any date and with respect to
     any Eligible Collateral other than Cash, the bid price obtained by the
     Valuation Agent multiplied by the Moody's First Trigger Valuation
     Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

     (ix) "MOODY'S SECOND TRIGGER VALUE" means, on any date and with respect to
     any Eligible Collateral other than Cash, the bid price obtained by the
     Valuation Agent multiplied by the Moody's Second Trigger Valuation
     Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

     (x) "S&P VALUE" means, on any date and with respect to any Eligible
     Collateral other than Cash, the product of (A) the bid price obtained by
     the Valuation Agent for such Eligible Collateral and (B) the S&P Valuation
     Percentage for such Eligible Collateral set forth in paragraph 13(b)(ii).

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

                                     M-4-10

<PAGE>

THE ROYAL BANK OF SCOTLAND PLC          La Salle Bank, National Association, not
                                        individually, but solely as trustee for
By: Greenwich Capital Markets, Inc.,    the Issuing Entity with respect to
its agent                               Merrill Lynch Mortgage Investors Trust,
                                        Series 2007-HE1

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

                                     M-4-11
<PAGE>

                                   EXHIBIT M-5

    FORM OF ISDA MASTER AGREEMENT AND SCHEDULE RELATING TO CORRIDOR CONTRACTS

(MULTICURRENCY--CROSS BORDER)

                                     ISDA(R)

              International Swap and Derivatives Association, Inc.

                                MASTER AGREEMENT

                            dated as of March 8, 2007

THE ROYAL BANK OF SCOTLAND PLC       and   LA SALLE BANK, NATIONAL ASSOCIATION.,
                                           NOT INDIVIDUALLY, BUT SOLELY AS
                                           TRUSTEE FOR THE ISSUING ENTITY WITH
                                           RESPECT TO MERRILL LYNCH MORTGAGE
                                           INVESTORS TRUST, SERIES 2007-HE1

----------------------------------         -------------------------------------
("PARTY A")                                ("PARTY B")

have entered and/or anticipate entering into one or more transactions (each a
"Transaction") that are or will be governed by this Master Agreement, which
includes the schedule (the "Schedule"), and the documents and other confirming
evidence (each a "Confirmation") exchanged between the parties confirming those
Transactions.

Accordingly, the parties agree as follows:--

1.   INTERPRETATION

(a) DEFINITIONS. The terms defined in Section 14 and in the Schedule will have
the meanings therein specified for the purpose of this Master Agreement.

(b) INCONSISTENCY. In the event of any inconsistency between the provisions of
the Schedule and the other provisions of this Master Agreement, the Schedule
will prevail. In the event of any inconsistency between the provisions of any
Confirmation and this Master Agreement (including the Schedule), such
Confirmation will prevail for the purpose of the relevant Transaction.

(c) SINGLE AGREEMENT. All Transactions are entered into in reliance on the fact
that this Master Agreement and all Confirmations form a single agreement between
the parties (collectively referred to as this "Agreement"), and the parties
would not otherwise enter into any Transactions.

2.   OBLIGATIONS

(a) GENERAL CONDITIONS.

     (i) Each party will make each payment or delivery specified in each
     Confirmation to be made by it, subject to the other provisions of this
     Agreement.

     (ii) Payments under this Agreement will be made on the due date for value
     on that date in the place of the account specified in the relevant
     Confirmation or otherwise pursuant to this Agreement, in freely
     transferable funds and in the manner customary for payments in the required
     currency. Where

                                      M-5-1

<PAGE>

     settlement is by delivery (that is, other than by payment), such delivery
     will be made for receipt on the due date in the manner customary for the
     relevant obligation unless otherwise specified in the relevant Confirmation
     or elsewhere in this Agreement.

     (iii) Each obligation of each party under Section 2(a)(i) is subject to (1)
     the condition precedent that no Event of Default or Potential Event of
     Default with respect to the other party has occurred and is continuing, (2)
     the condition precedent that no Early Termination Date in respect of the
     relevant Transaction has occurred or been effectively designated and (3)
     each other applicable condition precedent specified in this Agreement.

   Copyright (C) 1992 by International Swap and Derivatives Association, Inc.

(b) CHANGE OF ACCOUNT. Either party may change its account for receiving a
payment or delivery by giving notice to the other party at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a reasonable
objection to such change.

(c) NETTING. If on any date amounts would otherwise be payable:--

     (i) in the same currency; and

     (ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party's obligation to make
payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by one party
exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate
amount would have been payable to pay to the other party the excess of the
larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount
will be determined in respect of all amounts payable on the same date in the
same currency in respect of such Transactions, regardless of whether such
amounts are payable in respect of the same Transaction. The election may be made
in the Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election,
together with the starting date (in which case subparagraph (ii) above will not,
or will cease to, apply to such Transactions from such date). This election may
be made separately for different groups of Transactions and will apply
separately to each pairing of Offices through which the parties make and receive
payments or deliveries.

(d) DEDUCTION OR WITHHOLDING FOR TAX.

     (i) GROSS-UP. All payments under this Agreement will be made without any
     deduction or withholding for or on account of any Tax unless such deduction
     or withholding is required by any applicable law, as modified by the
     practice of any relevant governmental revenue authority, then in effect. If
     a party is so required to deduct or withhold, then that party ("X") will:--

          (1) promptly notify the other party ("Y") of such requirement;

          (2) pay to the relevant authorities the full amount required to be
          deducted or withheld (including the full amount required to be
          deducted or withheld from any additional amount paid by X to Y under
          this Section 2(d)) promptly upon the earlier of determining that such
          deduction or withholding is required or receiving notice that such
          amount has been assessed against Y;

          (3) promptly forward to Y an official receipt (or a certified copy),
          or other documentation reasonably acceptable to Y, evidencing such
          payment to such authorities; and

          (4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the
          payment to which Y is otherwise entitled under this Agreement, such
          additional amount as is necessary to ensure that the net amount
          actually received by Y (free and clear of Indemnifiable Taxes, whether
          assessed against

                                      M-5-2

<PAGE>

          X or Y) will equal the full amount Y would have received had no such
          deduction or withholding been required. However, X will not be
          required to pay any additional amount to Y to the extent that it would
          not be required to be paid but for:--

               (A) the failure by Y to comply with or perform any agreement
               contained in Section 4(a)(i), 4(a)(iii) or 4(d); or

               (B) the failure of a representation made by Y pursuant to Section
               3(f) to be accurate and true unless such failure would not have
               occurred but for (I) any action taken by a taxing authority, or
               brought in a court of competent jurisdiction, on or after the
               date on which a Transaction is entered into (regardless of
               whether such action is taken or brought with respect to a party
               to this Agreement) or (II) a Change in Tax Law.

     (ii) LIABILITY. If:--

          (1) X is required by any applicable law, as modified by the practice
          of any relevant governmental revenue authority, to make any deduction
          or withholding in respect of which X would not be required to pay an
          additional amount to Y under Section 2(d)(i)(4);

          (2) X does not so deduct or withhold; and

          (3) a liability resulting from such Tax is assessed directly against
          X,

     then, except to the extent Y has satisfied or then satisfies the liability
     resulting from such Tax, Y will promptly pay to X the amount of such
     liability (including any related liability for interest, but including any
     related liability for penalties only if Y has failed to comply with or
     perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

(e) DEFAULT INTEREST; OTHER AMOUNTS. Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant Transaction,
a party that defaults in the performance of any payment obligation will, to the
extent permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on
demand in the same currency as such overdue amount, for the period from (and
including) the original due date for payment to (but excluding) the date of
actual payment, at the Default Rate. Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed. If, prior to
the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party defaults in the performance of any
obligation required to be settled by delivery, it will compensate the other
party on demand if and to the extent provided for in the relevant Confirmation
or elsewhere in this Agreement.

3.   REPRESENTATIONS

Each party represents to the other party (which representations will be deemed
to be repeated by each party on each date on which a Transaction is entered into
and, in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that:--

(a) BASIC REPRESENTATIONS.

     (i) STATUS. It is duly organised and validly existing under the laws of the
     jurisdiction of its organisation or incorporation and, if relevant under
     such laws, in good standing;

     (ii) POWERS. It has the power to execute this Agreement and any other
     documentation relating to this Agreement to which it is a party, to deliver
     this Agreement and any other documentation relating to this Agreement that
     it is required by this Agreement to deliver and to perform its obligations
     under this Agreement and any obligations it has under any Credit Support
     Document to which it is a party and has taken all necessary action to
     authorise such execution, delivery and performance;

     (iii) NO VIOLATION OR CONFLICT. Such execution, delivery and performance do
     not violate or conflict with any law applicable to it, any provision of its
     constitutional documents, any order or judgment of any court or other
     agency of government applicable to it or any of its assets or any
     contractual restriction binding on or affecting it or any of its assets;

                                      M-5-3

<PAGE>

     (iv) CONSENTS. All governmental and other consents that are required to
     have been obtained by it with respect to this Agreement or any Credit
     Support Document to which it is a party have been obtained and are in full
     force and effect and all conditions of any such consents have been complied
     with; and

     (v) OBLIGATIONS BINDING. Its obligations under this Agreement and any
     Credit Support Document to which it is a party constitute its legal, valid
     and binding obligations, enforceable in accordance with their respective
     terms (subject to applicable bankruptcy, reorganisation, insolvency,
     moratorium or similar laws affecting creditors' rights generally and
     subject, as to enforceability, to equitable principles of general
     application (regardless of whether enforcement is sought in a proceeding in
     equity or at law)).

(b) ABSENCE OF CERTAIN EVENTS. No Event of Default or Potential Event of Default
or, to its knowledge, Termination Event with respect to it has occurred and is
continuing and no such event or circumstance would occur as a result of its
entering into or performing its obligations under this Agreement or any Credit
Support Document to which it is a party.

(c) ABSENCE OF LITIGATION. There is not pending or, to its knowledge, threatened
against it or any of its Affiliates any action, suit or proceeding at law or in
equity or before any court, tribunal, governmental body, agency or official or
any arbitrator that is likely to affect the legality, validity or enforceability
against it of this Agreement or any Credit Support Document to which it is a
party or its ability to perform its obligations under this Agreement or such
Credit Support Document.

(d) ACCURACY OF SPECIFIED INFORMATION. All applicable information that is
furnished in writing by or on behalf of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

(e) PAYER TAX REPRESENTATION. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(e) is accurate and true.

(f) PAYEE TAX REPRESENTATIONS. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(f) is accurate and true.

4.   AGREEMENTS

Each party agrees with the other that, so long as either party has or may have
any obligation under this Agreement or under any Credit Support Document to
which it is a party:--

(a) FURNISH SPECIFIED INFORMATION. It will deliver to the other party or, in
certain cases under subparagraph (iii) below, to such government or taxing
authority as the other party reasonably directs:--

     (i) any forms, documents or certificates relating to taxation specified in
     the Schedule or any Confirmation;

     (ii) any other documents specified in the Schedule or any Confirmation; and

     (iii) upon reasonable demand by such other party, any form or document that
     may be required or reasonably requested in writing in order to allow such
     other party or its Credit Support Provider to make a payment under this
     Agreement or any applicable Credit Support Document without any deduction
     or withholding for or on account of any Tax or with such deduction or
     withholding at a reduced rate (so long as the completion, execution or
     submission of such form or document would not materially prejudice the
     legal or commercial position of the party in receipt of such demand), with
     any such form or document to be accurate and completed in a manner
     reasonably satisfactory to such other party and to be executed and to be
     delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if
none is specified, as soon as reasonably practicable.

(b) MAINTAIN AUTHORISATIONS. It will use all reasonable efforts to maintain in
full force and effect all consents of any governmental or other authority that
are required to be obtained by it with respect to this

                                      M-5-4

<PAGE>

Agreement or any Credit Support Document to which it is a party and will use all
reasonable efforts to obtain any that may become necessary in the future.

(c) COMPLY WITH LAWS. It will comply in all material respects with all
applicable laws and orders to which it may be subject if failure so to comply
would materially impair its ability to perform its obligations under this
Agreement or any Credit Support Document to which it is a party.

(d) TAX AGREEMENT. It will give notice of any failure of a representation made
by it under Section 3(f) to be accurate and true promptly upon learning of such
failure.

(e) PAYMENT OF STAMP TAX. Subject to Section 11, it will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or performance of this
Agreement by a jurisdiction in which it is incorporated,

organised, managed and controlled, or considered to have its seat, or in which a
branch or office through which it is acting for the purpose of this Agreement is
located ("Stamp Tax Jurisdiction") and will indemnify the other party against
any Stamp Tax levied or imposed upon the other party or in respect of the other
party's execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the
other party.

5.   EVENTS OF DEFAULT AND TERMINATION EVENTS

(a) EVENTS OF DEFAULT. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of
such party of any of the following events constitutes an event of default (an
"Event of Default") with respect to such party:--

     (i) FAILURE TO PAY OR DELIVER. Failure by the party to make, when due, any
     payment under this Agreement or delivery under Section 2(a)(i) or 2(e)
     required to be made by it if such failure is not remedied on or before the
     third Local Business Day after notice of such failure is given to the
     party;

     (ii) BREACH OF AGREEMENT. Failure by the party to comply with or perform
     any agreement or obligation (other than an obligation to make any payment
     under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give
     notice of a Termination Event or any agreement or obligation under Section
     4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party
     in accordance with this Agreement if such failure is not remedied on or
     before the thirtieth day after notice of such failure is given to the
     party;

     (iii) CREDIT SUPPORT DEFAULT.

          (1) Failure by the party or any Credit Support Provider of such party
          to comply with or perform any agreement or obligation to be complied
          with or performed by it in accordance with any Credit Support Document
          if such failure is continuing after any applicable grace period has
          elapsed;

          (2) the expiration or termination of such Credit Support Document or
          the failing or ceasing of such Credit Support Document to be in full
          force and effect for the purpose of this Agreement (in either case
          other than in accordance with its terms) prior to the satisfaction of
          all obligations of such party under each Transaction to which such
          Credit Support Document relates without the written consent of the
          other party; or

          (3) the party or such Credit Support Provider disaffirms, disclaims,
          repudiates or rejects, in whole or in part, or challenges the validity
          of, such Credit Support Document;

     (iv) MISREPRESENTATION. A representation (other than a representation under
     Section 3(e) or (f)) made or repeated or deemed to have been made or
     repeated by the party or any Credit Support Provider of such party in this
     Agreement or any Credit Support Document proves to have been incorrect or
     misleading in any material respect when made or repeated or deemed to have
     been made or repeated;

     (v) DEFAULT UNDER SPECIFIED TRANSACTION. The party, any Credit Support
     Provider of such party or any applicable Specified Entity of such party (1)
     defaults under a Specified Transaction and, after

                                      M-5-5

<PAGE>

     giving effect to any applicable notice requirement or grace period, there
     occurs a liquidation of, an acceleration of obligations under, or an early
     termination of, that Specified Transaction, (2) defaults, after giving
     effect to any applicable notice requirement or grace period, in making any
     payment or delivery due on the last payment, delivery or exchange date of,
     or any payment on early termination of, a Specified Transaction (or such
     default continues for at least three Local Business Days if there is no
     applicable notice requirement or grace period) or (3) disaffirms,
     disclaims, repudiates or rejects, in whole or in part, a Specified
     Transaction (or such action is taken by any person or entity appointed or
     empowered to operate it or act on its behalf);

     (vi) CROSS DEFAULT. If "Cross Default" is specified in the Schedule as
     applying to the party, the occurrence or existence of (1) a default, event
     of default or other similar condition or event (however

     described) in respect of such party, any Credit Support Provider of such
     party or any applicable Specified Entity of such party under one or more
     agreements or instruments relating to Specified Indebtedness of any of them
     (individually or collectively) in an aggregate amount of not less than the
     applicable Threshold Amount (as specified in the Schedule) which has
     resulted in such Specified Indebtedness becoming, or becoming capable at
     such time of being declared, due and payable under such agreements or
     instruments, before it would otherwise have been due and payable or (2) a
     default by such party, such Credit Support Provider or such Specified
     Entity (individually or collectively) in making one or more payments on the
     due date thereof in an aggregate amount of not less than the applicable
     Threshold Amount under such agreements or instruments (after giving effect
     to any applicable notice requirement or grace period);

     (vii) BANKRUPTCY. The party, any Credit Support Provider of such party or
     any applicable Specified Entity of such party:--

          (1) is dissolved (other than pursuant to a consolidation, amalgamation
          or merger); (2) becomes insolvent or is unable to pay its debts or
          fails or admits in writing its inability generally to pay its debts as
          they become due; (3) makes a general assignment, arrangement or
          composition with or for the benefit of its creditors; (4) institutes
          or has instituted against it a proceeding seeking a judgment of
          insolvency or bankruptcy or any other relief under any bankruptcy or
          insolvency law or other similar law affecting creditors' rights, or a
          petition is presented for its winding-up or liquidation, and, in the
          case of any such proceeding or petition instituted or presented
          against it, such proceeding or petition (A) results in a judgment of
          insolvency or bankruptcy or the entry of an order for relief or the
          making of an order for its winding-up or liquidation or (B) is not
          dismissed, discharged, stayed or restrained in each case within 30
          days of the institution or presentation thereof; (5) has a resolution
          passed for its winding-up, official management or liquidation (other
          than pursuant to a consolidation, amalgamation or merger); (6) seeks
          or becomes subject to the appointment of an administrator, provisional
          liquidator, conservator, receiver, trustee, custodian or other similar
          official for it or for all or substantially all its assets; (7) has a
          secured party take possession of all or substantially all its assets
          or has a distress, execution, attachment, sequestration or other legal
          process levied, enforced or sued on or against all or substantially
          all its assets and such secured party maintains possession, or any
          such process is not dismissed, discharged, stayed or restrained, in
          each case within 30 days thereafter; (8) causes or is subject to any
          event with respect to it which, under the applicable laws of any
          jurisdiction, has an analogous effect to any of the events specified
          in clauses (1) to (7) (inclusive); or (9) takes any action in
          furtherance of, or indicating its consent to, approval of, or
          acquiescence in, any of the foregoing acts; or

     (viii) MERGER WITHOUT ASSUMPTION. The party or any Credit Support Provider
     of such party consolidates or amalgamates with, or merges with or into, or
     transfers all or substantially all its assets to, another entity and, at
     the time of such consolidation, amalgamation, merger or transfer:--

          (1) the resulting, surviving or transferee entity fails to assume all
          the obligations of such party or such Credit Support Provider under
          this Agreement or any Credit Support Document to which it or its
          predecessor was a party by operation of law or pursuant to an
          agreement reasonably satisfactory to the other party to this
          Agreement; or

                                      M-5-6

<PAGE>

          (2) the benefits of any Credit Support Document fail to extend
          (without the consent of the other party) to the performance by such
          resulting, surviving or transferee entity of its obligations under
          this Agreement.

(B) TERMINATION EVENTS. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any event specified below constitutes an Illegality if the
event is specified in (i) below, a Tax Event if the event is specified in (ii)
below or a Tax Event Upon Merger if the event is specified in (iii) below, and,
if specified to be applicable, a Credit Event

Upon Merger if the event is specified pursuant to (iv) below or an Additional
Termination Event if the event is specified pursuant to (v) below:--

     (i) ILLEGALITY. Due to the adoption of, or any change in, any applicable
     law after the date on which a Transaction is entered into, or due to the
     promulgation of, or any change in, the interpretation by any court,
     tribunal or regulatory authority with competent jurisdiction of any
     applicable law after such date, it becomes unlawful (other than as a result
     of a breach by the party of Section 4(b)) for such party (which will be the
     Affected Party):--

          (1) to perform any absolute or contingent obligation to make a payment
          or delivery or to receive a payment or delivery in respect of such
          Transaction or to comply with any other material provision of this
          Agreement relating to such Transaction; or

          (2) to perform, or for any Credit Support Provider of such party to
          perform, any contingent or other obligation which the party (or such
          Credit Support Provider) has under any Credit Support Document
          relating to such Transaction;

     (ii) TAX EVENT. Due to (x) any action taken by a taxing authority, or
     brought in a court of competent jurisdiction, on or after the date on which
     a Transaction is entered into (regardless of whether such action is taken
     or brought with respect to a party to this Agreement) or (y) a Change in
     Tax Law, the party (which will be the Affected Party) will, or there is a
     substantial likelihood that it will, on the next succeeding Scheduled
     Payment Date (1) be required to pay to the other party an additional amount
     in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in
     respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a
     payment from which an amount is required to be deducted or withheld for or
     on account of a Tax (except in respect of interest under Section 2(e),
     6(d)(ii) or 6(e)) and no additional amount is required to be paid in
     respect of such Tax under Section 2(d)(i)(4) (other than by reason of
     Section 2(d)(i)(4)(A) or (B));

     (iii) TAX EVENT UPON MERGER. The party (the "Burdened Party") on the next
     succeeding Scheduled Payment Date will either (1) be required to pay an
     additional amount in respect of an Indemnifiable Tax under Section
     2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or
     6(e)) or (2) receive a payment from which an amount has been deducted or
     withheld for or on account of any Indemnifiable Tax in respect of which the
     other party is not required to pay an additional amount (other than by
     reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a
     party consolidating or amalgamating with, or merging with or into, or
     transferring all or substantially all its assets to, another entity (which
     will be the Affected Party) where such action does not constitute an event
     described in Section 5(a)(viii);

     (iv) CREDIT EVENT UPON MERGER. If "Credit Event Upon Merger" is specified
     in the Schedule as applying to the party, such party ("X"), any Credit
     Support Provider of X or any applicable Specified Entity of X consolidates
     or amalgamates with, or merges with or into, or transfers all or
     substantially all its assets to, another entity and such action does not
     constitute an event described in Section 5(a)(viii) but the
     creditworthiness of the resulting, surviving or transferee entity is
     materially weaker than that of X, such Credit Support Provider or such
     Specified Entity, as the case may be, immediately prior to such action
     (and, in such event, X or its successor or transferee, as appropriate, will
     be the Affected Party); or

     (v) ADDITIONAL TERMINATION EVENT. If any "Additional Termination Event" is
     specified in the Schedule or any Confirmation as applying, the occurrence
     of such event (and, in such event, the

                                      M-5-7

<PAGE>

     Affected Party or Affected Parties shall be as specified for such
     Additional Termination Event in the Schedule or such Confirmation).

(c) EVENT OF DEFAULT AND ILLEGALITY. If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an Event
of Default.

6. EARLY TERMINATION

(a) RIGHT TO TERMINATE FOLLOWING EVENT OF DEFAULT. If at any time an Event of
Default with respect to a party (the "Defaulting Party") has occurred and is
then continuing, the other party (the "Non-defaulting Party") may, by not more
than 20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If, however,
"Automatic Early Termination" is specified in the Schedule as applying to a
party, then an Early Termination Date in respect of all outstanding Transactions
will occur immediately upon the occurrence with respect to such party of an
Event of Default specified in Section 5(a)(vii)(l), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

     (i) NOTICE. If a Termination Event occurs, an Affected Party will, promptly
     upon becoming aware of it, notify the other party, specifying the nature of
     that Termination Event and each Affected Transaction and will also give
     such other information about that Termination Event as the other party may
     reasonably require.

     (ii) TRANSFER TO AVOID TERMINATION EVENT. If either an Illegality under
     Section 5(b)(i)(l) or a Tax Event occurs and there is only one Affected
     Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the
     Affected Party, the Affected Party will, as a condition to its right to
     designate an Early Termination Date under Section 6(b)(iv), use all
     reasonable efforts (which will not require such party to incur a loss,
     excluding immaterial, incidental expenses) to transfer within 20 days after
     it gives notice under Section 6(b)(i) all its rights and obligations under
     this Agreement in respect of the Affected Transactions to another of its
     Offices or Affiliates so that such Termination Event ceases to exist.

     If the Affected Party is not able to make such a transfer it will give
     notice to the other party to that effect within such 20 day period,
     whereupon the other party may effect such a transfer within 30 days after
     the notice is given under Section 6(b)(i).

     Any such transfer by a party under this Section 6(b)(ii) will be subject to
     and conditional upon the prior written consent of the other party, which
     consent will not be withheld if such other party's policies in effect at
     such time would permit it to enter into transactions with the transferee on
     the terms proposed.

     (iii) TWO AFFECTED PARTIES. If an Illegality under Section 5(b)(i)( 1) or a
     Tax Event occurs and there are two Affected Parties, each party will use
     all reasonable efforts to reach agreement within 30 days after notice
     thereof is given under Section 6(b)(i) on action to avoid that Termination
     Event.

     (iv) RIGHT TO TERMINATE. If:--

          (1) a transfer under Section 6(b)(ii) or an agreement under Section
          6(b)(iii), as the case may be, has not been effected with respect to
          all Affected Transactions within 30 days after an Affected Party gives
          notice under Section 6(b)(i); or

          (2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger
          or an Additional Termination Event occurs, or a Tax Event Upon Merger
          occurs and the Burdened Party is not the

                                      M-5-8

<PAGE>

          Affected Party,

     either party in the case of an Illegality, the Burdened Party in the case
     of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event
     or an Additional Termination Event if there is more than one Affected
     Party, or the party which is not the Affected Party in the case of a Credit
     Event Upon Merger or an Additional Termination Event if there is only one
     Affected Party may, by not more than 20 days notice to the other party and
     provided that the relevant Termination Event is then

     continuing, designate a day not earlier than the day such notice is
     effective as an Early Termination Date in respect of all Affected
     Transactions.

(c) EFFECT OF DESIGNATION.

     (i) If notice designating an Early Termination Date is given under Section
     6(a) or (b), the Early Termination Date will occur on the date so
     designated, whether or not the relevant Event of Default or Termination
     Event is then continuing.

     (ii) Upon the occurrence or effective designation of an Early Termination
     Date, no further payments or deliveries under Section 2(a)(i) or 2(e) in
     respect of the Terminated Transactions will be required to be made, but
     without prejudice to the other provisions of this Agreement. The amount, if
     any, payable in respect of an Early Termination Date shall be determined
     pursuant to Section 6(e).

(d) CALCULATIONS.

     (i) STATEMENT. On or as soon as reasonably practicable following the
     occurrence of an Early Termination Date, each party will make the
     calculations on its part, if any, contemplated by Section 6(e) and will
     provide to the other party a statement (1) showing, in reasonable detail,
     such calculations (including all relevant quotations and specifying any
     amount payable under Section 6(e)) and (2) giving details of the relevant
     account to which any amount payable to it is to be paid. In the absence of
     written confirmation from the source of a quotation obtained in determining
     a Market Quotation, the records of the party obtaining such quotation will
     be conclusive evidence of the existence and accuracy of such quotation.

     (ii) PAYMENT DATE. An amount calculated as being due in respect of any
     Early Termination Date under Section 6(e) will be payable on the day that
     notice of the amount payable is effective (in the case of an Early
     Termination Date which is designated or occurs as a result of an Event of
     Default) and on the day which is two Local Business Days after the day on
     which notice of the amount payable is effective (in the case of an Early
     Termination Date which is designated as a result of a Termination Event).
     Such amount will be paid together with (to the extent permitted under
     applicable law) interest thereon (before as well as after judgment) in the
     Termination Currency, from (and including) the relevant Early Termination
     Date to (but excluding) the date such amount is paid, at the Applicable
     Rate. Such interest will be calculated on the basis of daily compounding
     and the actual number of days elapsed.

(e) PAYMENTS ON EARLY TERMINATION. If an Early Termination Date occurs, the
following provisions shall apply based on the parties' election in the Schedule
of a payment measure, either "Market Quotation" or "Loss", and a payment method,
either the "First Method" or the "Second Method". If the parties fail to
designate a payment measure or payment method in the Schedule, it will be deemed
that "Market Quotation" or the "Second Method", as the case may be, shall apply.
The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off.

     (i) EVENTS OF DEFAULT. If the Early Termination Date results from an Event
     of Default:--

          (1) First Method and Market Quotation. If the First Method and Market
          Quotation apply, the Defaulting Party will pay to the Non-defaulting
          Party the excess, if a positive number, of (A) the sum of the
          Settlement Amount (determined by the Non-defaulting Party) in respect
          of the Terminated Transactions and the Termination Currency Equivalent
          of the Unpaid Amounts owing to the Non-defaulting Party over (B) the
          Termination Currency Equivalent of the Unpaid Amounts owing to the
          Defaulting Party.

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<PAGE>

          (2) First Method and Loss. If the First Method and Loss apply, the
          Defaulting Party will pay to the Non-defaulting Party, if a positive
          number, the Non-defaulting Party's Loss in respect of this Agreement.

          (3) Second Method and Market Quotation. If the Second Method and
          Market Quotation apply, an amount will be payable equal to (A) the sum
          of the Settlement Amount (determined by the

          Non-defaulting Party) in respect of the Terminated Transactions and
          the Termination Currency Equivalent of the Unpaid Amounts owing to the
          Non-defaulting Party less (B) the Termination Currency Equivalent of
          the Unpaid Amounts owing to the Defaulting Party. If that amount is a
          positive number, the Defaulting Party will pay it to the
          Non-defaulting Party; if it is a negative number, the Non-defaulting
          Party will pay the absolute value of that amount to the Defaulting
          Party.

          (4) Second Method and Loss. If the Second Method and Loss apply, an
          amount will be payable equal to the Non-defaulting Party's Loss in
          respect of this Agreement. If that amount is a positive number, the
          Defaulting Party will pay it to the Non-defaulting Party; if it is a
          negative number, the Non-defaulting Party will pay the absolute value
          of that amount to the Defaulting Party.

     (ii) TERMINATION EVENTS. If the Early Termination Date results from a
     Termination Event:--

          (1) One Affected Party. If there is one Affected Party, the amount
          payable will be determined in accordance with Section 6(e)(i)(3), if
          Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
          except that, in either case, references to the Defaulting Party and to
          the Non-defaulting Party will be deemed to be references to the
          Affected Party and the party which is not the Affected Party,
          respectively, and, if Loss applies and fewer than all the Transactions
          are being terminated, Loss shall be calculated in respect of all
          Terminated Transactions.

          (2) Two Affected Parties. If there are two Affected Parties:--

               (A) if Market Quotation applies, each party will determine a
               Settlement Amount in respect of the Terminated Transactions, and
               an amount will be payable equal to (I) the sum of (a) one-half of
               the difference between the Settlement Amount of the party with
               the higher Settlement Amount ("X") and the Settlement Amount of
               the party with the lower Settlement Amount ("Y") and (b) the
               Termination Currency Equivalent of the Unpaid Amounts owing to X
               less (II) the Termination Currency Equivalent of the Unpaid
               Amounts owing to Y; and

               (B) if Loss applies, each party will determine its Loss in
               respect of this Agreement (or, if fewer than all the Transactions
               are being terminated, in respect of all Terminated Transactions)
               and an amount will be payable equal to one-half of the difference
               between the Loss of the party with the higher Loss ("X") and the
               Loss of the party with the lower Loss ("Y").

If the amount payable is a positive number, Y will pay it to X; if it is a
negative number, X will pay the absolute value of that amount to Y.

(iii) ADJUSTMENT FOR BANKRUPTCY. In circumstances where an Early Termination
Date occurs because "Automatic Early Termination" applies in respect of a party,
the amount determined under this Section 6(e) will be subject to such
adjustments as are appropriate and permitted by law to reflect any payments or
deliveries made by one party to the other under this Agreement (and retained by
such other party) during the period from the relevant Early Termination Date to
the date for payment determined under Section 6(d)(ii).

(iv) PRE-ESTIMATE. The parties agree that if Market Quotation applies an amount
recoverable under this Section 6(e) is a reasonable pre-estimate of loss and not
a penalty. Such amount is payable for the loss of bargain and the loss of
protection against future risks and except as otherwise provided in this
Agreement neither party will be entitled to recover any additional damages as a
consequence of such

                                     M-5-10

<PAGE>

     losses.

7.   TRANSFER

Subject to Section 6(b)(ii), neither this Agreement nor any interest or
obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party without the prior written consent of the
other party, except that: --

(a) a party may make such a transfer of this Agreement pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity (but without prejudice to any
other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any
amount payable to it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

8.   CONTRACTUAL CURRENCY

(a) PAYMENT IN THE CONTRACTUAL CURRENCY. Each payment under this Agreement will
be made in the relevant currency specified in this Agreement for that payment
(the "Contractual Currency"). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than the
Contractual Currency, except to the extent such tender results in the actual
receipt by the party to which payment is owed, acting in a reasonable manner and
in good faith in converting the currency so tendered into the Contractual
Currency, of the full amount in the Contractual Currency of all amounts payable
in respect of this Agreement. If for any reason the amount in the Contractual
Currency so received falls short of the amount in the Contractual Currency
payable in respect of this Agreement, the party required to make the payment
will, to the extent permitted by applicable law, immediately pay such additional
amount in the Contractual Currency as may be necessary to compensate for the
shortfall. If for any reason the amount in the Contractual Currency so received
exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of
such excess.

(b) JUDGMENTS. To the extent permitted by applicable law, if any judgment or
order expressed in a currency other than the Contractual Currency is rendered
(i) for the payment of any amount owing in respect of this Agreement, (ii) for
the payment of any amount relating to any early termination in respect of this
Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is
entitled pursuant to the judgment or order, will be entitled to receive
immediately from the other party the amount of any shortfall of the Contractual
Currency received by such party as a consequence of sums paid in such other
currency and will refund promptly to the other party any excess of the
Contractual Currency received by such party as a consequence of sums paid in
such other currency if such shortfall or such excess arises or results from any
variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such
judgment or order and the rate of exchange at which such party is able, acting
in a reasonable manner and in good faith in converting the currency received
into the Contractual Currency, to purchase the Contractual Currency with the
amount of the currency of the judgment or order actually received by such party.
The term "rate of exchange" includes, without limitation, any premiums and costs
of exchange payable in connection with the purchase of or conversion into the
Contractual Currency.

(c) SEPARATE INDEMNITIES. To the extent permitted by applicable law, these
indemnities constitute separate and independent obligations from the other
obligations in this Agreement, will be enforceable as separate and independent
causes of action, will apply notwithstanding any indulgence granted by the party
to which any payment is owed and will not be affected by judgment being obtained
or claim or proof being made for any other sums payable in respect of this
Agreement.

(d) EVIDENCE OF LOSS. For the purpose of this Section 8, it will be sufficient
for a party to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

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<PAGE>

9.   MISCELLANEOUS

(a) ENTIRE AGREEMENT. This Agreement constitutes the entire agreement and
understanding of the parties with respect to its subject matter and supersedes
all oral communication and prior writings with respect thereto.

(b) AMENDMENTS. No amendment, modification or waiver in respect of this
Agreement will be effective unless in writing (including a writing evidenced by
a facsimile transmission) and executed by each of the parties or confirmed by an
exchange of telexes or electronic messages on an electronic messaging system.

(c) SURVIVAL OF OBLIGATIONS. Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

(d) REMEDIES CUMULATIVE. Except as provided in this Agreement, the rights,
powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law.

(e) COUNTERPARTS AND CONFIRMATIONS.

     (i) This Agreement (and each amendment, modification and waiver in respect
     of it) may be executed and delivered in counterparts (including by
     facsimile transmission), each of which will be deemed an original.

     (ii) The parties intend that they are legally bound by the terms of each
     Transaction from the moment they agree to those terms (whether orally or
     otherwise). A Confirmation shall be entered into as soon as practicable and
     may be executed and delivered in counterparts (including by facsimile
     transmission) or be created by an exchange of telexes or by an exchange of
     electronic messages on an electronic messaging system, which in each case
     will be sufficient for all purposes to evidence a binding supplement to
     this Agreement. The parties will specify therein or through another
     effective means that any such counterpart, telex or electronic message
     constitutes a Confirmation.

(f) NO WAIVER OF RIGHTS. A failure or delay in exercising any right, power or
privilege in respect of this Agreement will not be presumed to operate as a
waiver, and a single or partial exercise of any right, power or privilege will
not be presumed to preclude any subsequent or further exercise, of that right,
power or privilege or the exercise of any other right, power or privilege.

(g) HEADINGS. The headings used in this Agreement are for convenience of
reference only and are not to affect the construction of or to be taken into
consideration in interpreting this Agreement.

10.  OFFICES; MULTIBRANCH PARTIES

(a) If Section 10(a) is specified in the Schedule as applying, each party that
enters into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office
or jurisdiction of incorporation or organisation of such party, the obligations
of such party are the same as if it had entered into the Transaction through its
head or home office. This representation will be deemed to be repeated by such
party on each date on which a Transaction is entered into.

(b) Neither party may change the Office through which it makes and receives
payments or deliveries for the purpose of a Transaction without the prior
written consent of the other party.

(c) If a party is specified as a Multibranch Party in the Schedule, such
Multibranch Party may make and receive payments or deliveries under any
Transaction through any Office listed in the Schedule, and the Office through
which it makes and receives payments or deliveries with respect to a Transaction
will be specified in the relevant Confirmation.

11.  EXPENSES

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees and
Stamp Tax, incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document

                                     M-5-12

<PAGE>

to which the Defaulting Party is a party or by reason of the early termination
of any Transaction, including, but not limited to, costs of collection.

12.  NOTICES

(a) EFFECTIVENESS. Any notice or other communication in respect of this
Agreement may be given in any manner set forth below (except that a notice or
other communication under Section 5 or 6 may not be given by facsimile
transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:--

     (i) if in writing and delivered in person or by courier, on the date it is
     delivered;

     (ii) if sent by telex, on the date the recipient's answerback is received;

     (iii) if sent by facsimile transmission, on the date that transmission is
     received by a responsible employee of the recipient in legible form (it
     being agreed that the burden of proving receipt will be on the sender and
     will not be met by a transmission report generated by the sender's
     facsimile machine);

     (iv) if sent by certified or registered mail (airmail, if overseas) or the
     equivalent (return receipt requested), on the date that mail is delivered
     or its delivery is attempted; or

     (v) if sent by electronic messaging system, on the date that electronic
     message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as
applicable, is not a Local Business Day or that communication is delivered (or
attempted) or received, as applicable, after the close of business on a Local
Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Local Business Day.

(b) CHANGE OF ADDRESSES. Either party may by notice to the other change the
address, telex or facsimile number or electronic messaging system details at
which notices or other communications are to be given to it.

13.  GOVERNING LAW AND JURISDICTION

(a) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the law specified in the Schedule.

(b) JURISDICTION. With respect to any suit, action or proceedings relating to
this Agreement ("Proceedings"), each party irrevocably:--

     (i) submits to the jurisdiction of the English courts, if this Agreement is
     expressed to be governed by English law, or to the non-exclusive
     jurisdiction of the courts of the State of New York and the United States
     District Court located in the Borough of Manhattan in New York City, if
     this Agreement is expressed to be governed by the laws of the State of New
     York; and

     (ii) waives any objection which it may have at any time to the laying of
     venue of any Proceedings brought in any such court, waives any claim that
     such Proceedings have been brought in an inconvenient forum and further
     waives the right to object, with respect to such Proceedings, that such
     court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in
any other jurisdiction (outside, if this Agreement is expressed to be governed
by English law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
reenactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

(c) SERVICE OF PROCESS. Each party irrevocably appoints the Process Agent (if
any) specified opposite its name in the Schedule to receive, for it and on its
behalf, service of process in any Proceedings. If for any

                                     M-5-13

<PAGE>

reason any party's Process Agent is unable to act as such, such party will
promptly notify the other party and within 30 days appoint a substitute process
agent acceptable to the other party. The parties irrevocably consent to service
of process given in the manner provided for notices in Section 12. Nothing in
this Agreement will affect the right of either party to serve process in any
other manner permitted by law.

(d) WAIVER OF IMMUNITIES. Each party irrevocably waives, to the fullest extent
permitted by applicable law, with respect to itself and its revenues and assets
(irrespective of their use or intended use), all immunity on the grounds of
sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any Proceedings.

14.  DEFINITIONS

As used in this Agreement:--

"ADDITIONAL TERMINATION EVENT" has the meaning specified in Section 5(b).

"AFFECTED PARTY" has the meaning specified in Section 5(b).

"AFFECTED TRANSACTIONS" means (a) with respect to any Termination Event
consisting of an Illegality, Tax Event or Tax Event Upon Merger, all
Transactions affected by the occurrence of such Termination Event and (b) with
respect to any other Termination Event, all Transactions.

"AFFILIATE" means, subject to the Schedule, in relation to any person, any
entity controlled, directly or indirectly, by the person, any entity that
controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, "control" of
any entity or person means ownership of a majority of the voting power of the
entity or person.

"APPLICABLE RATE" means:--

(a) in respect of obligations payable or deliverable (or which would have been
but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either
party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would
have been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

(d) in all other cases, the Termination Rate.

"BURDENED PARTY" has the meaning specified in Section 5(b).

"CHANGE IN TAX LAW" means the enactment, promulgation, execution or ratification
of, or any change in or amendment to, any law (or in the application or official
interpretation of any law) that occurs on or after the date on which the
relevant Transaction is entered into.

"CONSENT" includes a consent, approval, action, authorisation, exemption,
notice, filing, registration or exchange control consent.

"CREDIT EVENT UPON MERGER" has the meaning specified in Section 5(b).

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

"DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the relevant payee (as certified by it) if it
were to fund or of funding the relevant amount plus 1% per annum.

                                     M-5-14

<PAGE>

"DEFAULTING PARTY" has the meaning specified in Section 6(a).

"EARLY TERMINATION DATE" means the date determined in accordance with Section
6(a) or 6(b)(iv).

"EVENT OF DEFAULT" has the meaning specified in Section 5(a) and, if applicable,
in the Schedule.

"ILLEGALITY" has the meaning specified in Section 5(b).

"INDEMNIFIABLE TAX" means any Tax other than a Tax that would not be imposed in
respect of a payment under this Agreement but for a present or former connection
between the jurisdiction of the government or taxation authority imposing such
Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or
related person being or having been a citizen or resident of such jurisdiction,
or being or having been organised, present or engaged in a trade or business in
such jurisdiction, or having or having had a permanent establishment or fixed
place of business in such jurisdiction, but excluding a connection arising
solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this
Agreement or a Credit Support Document).

"LAW" includes any treaty, law, rule or regulation (as modified, in the case of
tax matters, by the practice of any relevant governmental revenue authority) and
"LAWFUL" and "UNLAWFUL" will be construed accordingly.

"LOCAL BUSINESS DAY" means, subject to the Schedule, a day on which commercial
banks are open for business (including dealings in foreign exchange and foreign
currency deposits) (a) in relation to any obligation under Section 2(a)(i), in
the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

"LOSS" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be its
total losses and costs (or gain, in which case expressed as a negative number)
in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost
of funding or, at the election of such party but without duplication, loss or
cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from
any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each
applicable condition precedent) on or before the relevant Early Termination Date
and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

"MARKET QUOTATION" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have

                                     M-5-15

<PAGE>

been required after that date. For this purpose, Unpaid Amounts in respect of
the Terminated Transaction or group of Terminated Transactions are to be
excluded but, without limitation, any payment or delivery that would, but for
the relevant Early Termination Date, have been required (assuming satisfaction
of each applicable condition precedent) after that Early Termination Date is to
be included. The Replacement Transaction would be subject to such documentation
as such party and the Reference Market-maker may, in good faith, agree. The
party making the determination (or its agent) will request each Reference Market
maker to provide its quotation to the extent reasonably practicable as of the
same day and time (without regard to different time zones) on or as soon as
reasonably practicable after the relevant Early Termination Date. The day and
time as of which those quotations are to be obtained will be selected in good
faith by the party obliged to make a determination under Section 6(e), and, if
each party is so obliged, after consultation with the other. If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of the
quotations, without regard to the quotations having the highest and lowest
values. If exactly three such quotations are provided, the Market Quotation will
be the quotation remaining after disregarding the highest and lowest quotations.
For this purpose, if more than one quotation has the same highest value or
lowest value, then one of such quotations shall be disregarded. If fewer than
three quotations are provided, it will be deemed that the Market Quotation in
respect of such Terminated Transaction or group of Terminated Transactions
cannot be determined.

"NON-DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the Non-defaulting Party (as certified by it) if
it were to fund the relevant amount.

"NON-DEFAULTING PARTY" has the meaning specified in Section 6(a).

"OFFICE" means a branch or office of a party, which may be such party's head or
home office.

"POTENTIAL EVENT OF DEFAULT" means any event which, with the giving of notice or
the lapse of time or both, would constitute an Event of Default.

"REFERENCE MARKET-MAKERS" means four leading dealers in the relevant market
selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to make
an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

"RELEVANT JURISDICTION" means, with respect to a party, the jurisdictions (a) in
which the party is incorporated, organised, managed and controlled or considered
to have its seat, (b) where an Office through which the party is acting for
purposes of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such payment
is made.

"SCHEDULED PAYMENT DATE" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

"SET-OFF" means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this Agreement,
another contract, applicable law or otherwise) that is exercised by, or imposed
on, such payer.

"SETTLEMENT AMOUNT" means, with respect to a party and any Early Termination
Date, the sum of:--

(a) the Termination Currency Equivalent of the Market Quotations (whether
positive or negative) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation is determined; and

(b) such party's Loss (whether positive or negative and without reference to any
Unpaid Amounts) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation cannot be determined or would not (in
the reasonable belief of the party making the determination) produce a
commercially reasonable result.

"SPECIFIED ENTITY" has the meaning specified in the Schedule.

                                     M-5-16

<PAGE>

"SPECIFIED INDEBTEDNESS" means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

"SPECIFIED TRANSACTION" means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

"STAMP TAX" means any stamp, registration, documentation or similar tax.

"TAX" means any present or future tax, levy, impost, duty, charge, assessment or
fee of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

"TAX EVENT" has the meaning specified in Section 5(b).

"TAX EVENT UPON MERGER" has the meaning specified in Section 5(b).

"TERMINATED TRANSACTIONS" means with respect to any Early Termination Date (a)
if resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if "Automatic Early Termination" applies, immediately
before that Early Termination Date).

"TERMINATION CURRENCY" has the meaning specified in the Schedule.

"TERMINATION CURRENCY EQUIVALENT" means, in respect of any amount denominated in
the Termination Currency, such Termination Currency amount and, in respect of
any amount denominated in a currency other than the Termination Currency (the
"Other Currency"), the amount in the Termination Currency determined by the
party making the relevant determination as being required to purchase such
amount of such Other Currency as at the relevant Early Termination Date, or, if
the relevant Market Quotation or Loss (as the case may be), is determined as of
a later date, that later date, with the Termination Currency at the rate equal
to the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a rate
for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be selected in
good faith by that party and otherwise will be agreed by the parties.

"TERMINATION EVENT" means an Illegality, a Tax Event or a Tax Event Upon Merger
or, if specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

"TERMINATION RATE" means a rate per annum equal to the arithmetic mean of the
cost (without proof or evidence of any actual cost) to each party (as certified
by such party) if it were to fund or of funding such amounts.

"UNPAID AMOUNTS" owing to any party means, with respect to an Early Termination
Date, the aggregate of (a) in respect of all Terminated Transactions, the
amounts that became payable (or that would have become payable but for Section
2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early
Termination Date and which remain unpaid as at such Early Termination Date and
(b) in respect of each Terminated Transaction, for each obligation under Section
2(a)(i) which was (or would have been but for Section 2(a) (iii)) required to be
settled by delivery to such party on or prior to such Early Termination Date and
which has not been so settled as at such Early Termination Date, an amount equal
to the fair market

                                     M-5-17

<PAGE>

value of that which was (or would have been) required to be delivered as of the
originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such
amounts, from (and including) the date such amounts or obligations were or would
have been required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above
shall be reasonably determined by the party obliged to make the determination
under Section 6(e) or, if each party is so obliged, it shall be the average of
the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.

IN WITNESS WHEREOF the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.

THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION.,
                                        NOT INDIVIDUALLY, BUT SOLELY AS TRUSTEE
BY: GREENWICH CAPITAL MARKETS, INC.,    FOR THE ISSUING ENTITY WITH RESPECT TO
ITS AGENT                               MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2007-HE1

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

                                     M-5-18

<PAGE>

                                    SCHEDULE
                                     TO THE
                                MASTER AGREEMENT
                                   DATED AS OF

                                  MARCH 8, 2007

                                     BETWEEN

                         THE ROYAL BANK OF SCOTLAND PLC
                ESTABLISHED AS A BANK UNDER THE LAWS OF SCOTLAND
                                   ("PARTY A")

                                       AND

LA SALLE BANK, NATIONAL ASSOCIATION, NOT INDIVIDUALLY, BUT SOLELY AS THE TRUSTEE
  (THE "TRUSTEE") WITH RESPECT TO THE ISSUING ENTITY (THE "ISSUING ENTITY") FOR
 MERRILL LYNCH MORTGAGE INVESTORS TRUST, SERIES 2007-HE1, A NEW YORK COMMON LAW
                                      TRUST
                                  ("PARTY B")

PART 1 TERMINATION PROVISIONS.

(a)  "SPECIFIED ENTITY" means (i) in relation to Party A for all purposes of the
     Agreement: None;

     and (ii) in relation to Party B for all purposes of the Agreement: None.

(b)  The "FAILURE TO PAY OR DELIVER" provisions of Section 5(a)(i) will apply to
     Party A and Party B; provided that the word "third" shall be deleted and
     replaced by the word "second".

(c)  The "BREACH OF AGREEMENT" provisions of Section 5(a)(ii) of the Agreement
     will be inapplicable to Party B.

(d)  The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) of the
     Agreement will apply to Party A and will not apply to Party B except that
     Section 5(a)(iii)(1) will apply to Party B solely in respect of Party B's
     obligations under Paragraph 3(b) of the Credit Support Annex specified as a
     Credit Support Document with respect to Party A. Notwithstanding Sections
     5(a)(i) and 5(a)(iii), any failure by Party A to comply with or perform any
     obligation to be complied with or performed by Party A under the Credit
     Support Annex to this Agreement shall not be an Event of Default unless (A)
     a Second Rating Trigger Event with respect to Moody's has occurred and at
     least 30 Local Business Days have elapsed since the Second Rating Trigger
     Event has occurred and (B) such failure is not remedied on or before the
     third Local Business Day after notice of such failure is given to Party A.

(e)  The "MISREPRESENTATION" provisions of Section 5(a)(iv) of the Agreement
     will be inapplicable to Party B.

(f)  The "DEFAULT UNDER SPECIFIED TRANSACTION" provisions of Section 5(a)(v) of
     the Agreement will be applicable to Party A and inapplicable to Party B.

                                     M-5-19

<PAGE>

(g)  The "CROSS DEFAULT" provisions of Section 5(a)(vi) of the Agreement will
     apply to Party A with a Threshold Amount of 3% of the shareholder's equity
     of Party A.

(h)  The "CROSS DEFAULT" provisions of Section 5(a)(vi) of the Agreement will be
     inapplicable to Party B.

(i)  The "BANKRUPTCY" provision of Section 5(a)(vii) of the Agreement will be
     applicable to Party A and to Party B, subject to the following
     modifications with respect to Party B:

     (i)  Section 5(a)(vii)(2), (7) and (9) shall not apply;

     (ii) Section 5(a)(vii)(4) shall not apply to the extent that it refers to
          proceedings or petitions instituted or presented by Party A or its
          affiliates;

     (iii) The phrase "seeks or" in Section 5(a)(vii)(6) shall be deemed
          deleted; and

     (iv) Section 5(a)(vii)(8) shall apply only to the extent that a relevant
          event has an effect that is analogous to an effect described in
          Section 5(a)(vii)(1) through (7) (as amended in this Part 1(h)) that
          applies to Party B.

(j)  The "Merger without Assumption" provisions of Section 5(a)(viii) will apply
     to Party A and will apply to Party B.

(k)  The "TAX EVENT UPON MERGER" provisions of Section 5(b)(iii) shall not apply
     to the extent that Party A is both the Burdened Party and the Affected
     Party.

(l)  The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv) of the
     Agreement will be inapplicable to Party A and Party B.

(m)  The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) of the
     Agreement will be inapplicable to Party A and Party B.

(n)  PAYMENTS ON EARLY TERMINATION.

     (i)  For the purpose of Section 6(e) of the Agreement:

          (A) Market Quotation will apply; and

          (B) The Second Method will apply.

     (ii) Notwithstanding Section 6 of this Agreement, so long as Party A is (A)
          the sole Affected Party in respect of an Additional Termination Event
          or a Tax Event Upon Merger or (B) the Defaulting Party in respect of
          any Event of Default, paragraphs (A) to (F) below shall apply:

          (A)  The definition of "Market Quotation" shall be deleted in its
               entirety and replaced with the following:

          ""MARKET QUOTATION" means, with respect to one or more Terminated
          Transactions, an offer which, when made, is capable of becoming
          legally binding upon acceptance (any such offer, a "FIRM OFFER") which
          is (1) made by a Reference Market-maker that is an Eligible
          Replacement, (2) for an amount that would be paid to Party B
          (expressed as a negative number) or by Party B (expressed as a
          positive number) in consideration of an agreement between Party B and
          such Reference Market-maker to enter into a transaction (the
          "REPLACEMENT TRANSACTION") that would have the effect of preserving
          for such party the economic equivalent of any payment or delivery
          (whether the underlying obligation was

                                     M-5-20

<PAGE>

          absolute or contingent and assuming the satisfaction of each
          applicable condition precedent) by the parties under Section 2(a)(i)
          in respect of such Terminated Transactions or group of Terminated
          Transactions that would, but for the occurrence of the relevant Early
          Termination Date, have been required after that date, (3) made on the
          basis that Unpaid Amounts in respect of the Terminated Transaction or
          group of Transactions are to be excluded but, without limitation, any
          payment or delivery that would, but for the relevant Early Termination
          Date, have been required (assuming satisfaction of each applicable
          condition precedent) after that Early Termination Date is to be
          included and (4) made in respect of a Replacement Transaction with
          commercial terms substantially the same as those of this Agreement
          (save for the exclusion of provisions relating to Transactions that
          are not Terminated Transactions)."

          (B) The definition of "Settlement Amount" shall be deleted in its
          entirety and replaced with the following:

          ""SETTLEMENT AMOUNT" means, with respect to any Early Termination
          Date, an amount (as determined by Party B) equal to:

               (1) If a Market Quotation for the relevant Terminated Transaction
               or group of Terminated Transactions is selected by Party A and
               accepted by Party B so as to become legally binding on or before
               the day falling ten Local Business Days after the day on which
               the Early Termination Date is designated (or such later day as
               Party B may specify in writing to Party A, which in any event
               will not be later than the Early Termination Date) (such day, the
               "LATEST SETTLEMENT AMOUNT DETERMINATION DAY"), the Termination
               Currency Equivalent of the amount (whether positive or negative)
               of such Market Quotation;

               (2) If, on the Latest Settlement Amount Determination Day, no
               Market Quotation for the relevant Terminated Transaction or group
               of Terminated Transactions has been accepted by Party B so as to
               become legally binding and one or more Market Quotations have
               been made and remain capable of becoming legally binding upon
               acceptance, the Settlement Amount shall equal the Termination
               Currency Equivalent of the amount (whether positive or negative)
               of the lowest of such Market Quotations (for the avoidance of
               doubt, the lowest of such Market Quotations shall be the lowest
               Market Quotation of such Market Quotations expressed as a
               positive number or, if any of such Market Quotations is expressed
               as a negative number, the Market Quotation expressed as a
               negative number with the largest absolute value); or

               (3) If no Market Quotation for the relevant Terminated
               Transaction or group of Terminated Transactions has been selected
               by Party A and accepted by Party B so as to become legally
               binding on or before the Latest Settlement Amount Determination
               Day, Party B's Loss (whether positive or negative and without
               reference to any Unpaid Amounts) for the relevant Terminated
               Transaction or group of Terminated Transactions."

          (C)  For the purpose of clause (4) of the definition of Market
               Quotation, Party B shall determine in its sole discretion, acting
               in a commercially reasonable manner, whether a Firm Offer is made
               in respect of a Replacement Transaction with commercial terms
               substantially the same as those of this Agreement (save for the
               exclusion of provisions relating to Transactions that are not
               Terminated Transactions).

          (D)  At any time on or before the Latest Settlement Amount
               Determination Day at which two or more Market Quotations remain
               capable of becoming legally binding upon acceptance,

                                     M-5-21

<PAGE>

               Party B shall be entitled to accept only the lowest of such
               Market Quotations (for the avoidance of doubt, the lowest of such
               Market Quotations shall be the lowest Market Quotation of such
               Market Quotations expressed as a positive number or, if any of
               such Market Quotations is expressed as a negative number, the
               Market Quotation expressed as a negative number with the largest
               absolute value).

          (E)  Party B undertakes to use its reasonable efforts to obtain at
               least one Market Quotation before the Latest Settlement Amount
               Determination Day. Party B will be deemed to have discharged its
               obligations under the preceding sentence if it requests Party A
               to obtain Market Quotations, where such request is made in
               writing within two Local Business Days after the day on which the
               Early Termination Date is designated. If Party B requests Party A
               in writing to obtain Market Quotations, Party A shall use its
               reasonable efforts to do so before the Latest Settlement Amount
               Determination Day.

          (F)  Any amount calculated as being due in respect of an Early
               Termination Date will be payable in accordance with Section
               6(d)(ii), provided that if such payment is owed to Party B, it
               will be payable on the day that notice of the amount payable is
               given to Party A.

          (G)  If the Settlement Amount is a negative number, Section 6(e)(i)(3)
               of this Agreement shall be deleted in its entirety and replaced
               with the following:

          SECOND METHOD AND MARKET QUOTATION. If Second Method and Market
          Quotation apply, (1) Party B shall pay to Party A an amount equal to
          the absolute value of the Settlement Amount in respect of the
          Terminated Transactions, (2) Party B shall pay to Party A the
          Termination Currency Equivalent of the Unpaid Amounts owing to Party A
          and (3) Party A shall pay to Party B the Termination Currency
          Equivalent of the Unpaid Amounts owing to Party B, provided that, (i)
          the amounts payable under (2) and (3) shall be subject to netting in
          accordance with Section 2(c) of this Agreement and (ii)
          notwithstanding any other provision of this Agreement, any amount
          payable by Party A under (3) shall not be netted-off against any
          amount payable by Party B under (1).

(o)  "TERMINATION CURRENCY" means United States Dollars.

(p)  ADDITIONAL TERMINATION EVENTS. Each of the following shall be an Additional
     Termination Event:

     (i)  FIRST RATING TRIGGER EVENT. A First Rating Trigger Event (as defined
          in Part 5(i)) has occurred, and Party A has not, within the period of
          time prescribed, complied with Part 5(i)(ii) below. For purposes of
          this Additional Termination Event, Party A shall be the sole Affected
          Party.

     (ii) S&P SECOND RATING TRIGGER EVENT. A Second Rating Trigger Event (as
          defined in Part 5(i)) with respect to S&P has occurred, and Party A
          has not, within 10 Business Days after such event, complied with the
          requirements of Part 5(i)(iii) below. For purposes of this Additional
          Termination Event, Party A shall be the sole Affected Party.

     (iii) MOODY'S SECOND RATING TRIGGER EVENT. (A) A Second Rating Trigger
          Event with respect to Moody's has occurred, and 30 or more Local
          Business Days have elapsed and (B) (i) at least one Eligible
          Replacement (as defined in Part 5(i)) has made a Firm Offer to be the
          transferee of a transfer to be made in accordance with Part 5(i)(iii)
          below and/or (ii) at least one entity with the Acceptable Ratings (as
          defined in Part 5(i)) has made a Firm

                                     M-5-22

<PAGE>

          Offer to provide an Eligible Guarantee in respect of all of Party A's
          present and future obligations under this Agreement. For purposes of
          this Additional Termination Event, Party A shall be the sole Affected
          Party.

     (iv) ACCELERATION OR REDEMPTION OF CERTIFICATES. The Certificates are
          accelerated (if applicable) or redeemed in whole, for any reason,
          pursuant to the Pooling and Servicing Agreement, provided, such
          acceleration or redemption is no longer capable of being revoked. For
          purposes of this Additional Termination Event, Party B shall be the
          sole Affected Party.

     (v)  MODIFICATION OF POOLING AND SERVICING AGREEMENT. The Pooling and
          Servicing Agreement is modified without the prior written consent of
          Party A, where such consent is required under the terms of the Pooling
          and Servicing Agreement and such modification has a material adverse
          effect on Party A's rights under this Agreement or the Pooling and
          Servicing Agreement. For purposes of this Additional Termination
          Event, Party B shall be the sole Affected Party.

     (vi) EXERCISE OF PURCHASE OPTION. La Salle Bank, National Association, as
          trustee, notifies the Holders of the Certificates of the intent to
          exercise an option to purchase the Mortgage Loans pursuant to Section
          9.01 of the Pooling and Servicing Agreement (including, for the
          avoidance of doubt, a notice of an Auction). For purposes of this
          Additional Termination Event, Party B shall be the sole Affected
          Party.

     (vii) REGULATION AB. (A) Merrill Lynch Mortgage Investors, Inc. ("MLMI"),
          as the Depositor still has a reporting obligation with respect to this
          Transaction pursuant to Regulation AB and (B) Party A has not, within
          30 days after receipt of a Hedge Disclosure Request complied with the
          provisions set forth in Part 5(k)(iv) below (provided that if the
          significance percentage reaches 10% or 20%, as applicable, after a
          Hedge Disclosure Request has been made to Party A, Party A must comply
          with the provisions set forth in Part 5(k)(iv) below within 10 days of
          Party A being informed of the significance percentage reaching 10% or
          20%, as applicable) or has not, thereafter, complied with the
          provisions set forth in Part 5(k)(v) below. For purposes of this
          Additional Termination Event, Party A shall be the sole Affected
          Party.

PART 2 TAX REPRESENTATIONS.

(A)  Payer Representations For the purpose of Section 3(e) of the Agreement,
     Party A will make the following representation and Party B will not make
     the following representation:

     It is not required by any applicable law, as modified by the practice of
     any relevant governmental revenue authority, of any Relevant Jurisdiction
     to make any deduction or withholding for or on account of any Tax from any
     payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of the
     Agreement) to be made by it to the other party under this Agreement. In
     making this representation, it may rely on (i) the accuracy of any
     representations made by the other party pursuant to Section 3(f) of the
     Agreement, (ii) the satisfaction of the agreement contained in Section
     4(a)(i) or 4(a)(iii) of the Agreement and the accuracy and effectiveness of
     any document provided by the other party pursuant to Section 4(a)(i) or
     4(a)(iii) of the Agreement and (iii) the satisfaction of the agreement of
     the other party contained in Section 4(d) of the Agreement, provided that
     it shall not be a breach of this representation where reliance is placed on
     clause (ii)

                                     M-5-23

<PAGE>

     and the other party does not deliver a form or document under Section
     4(a)(iii) of the Agreement by reason of material prejudice to its legal or
     commercial position.

(B)  PAYEE REPRESENTATIONS. For the purpose of Section 3(f) of the Agreement:

     (i)  Party A represents that:

          (A)  Party A is a tax resident of the United Kingdom;

          (B)  Party A is a "foreign person" within the meaning of the
               applicable U.S. Treasury Regulations concerning information
               reporting and backup withholding tax (as in effect on January 1,
               2001), unless Party A provides written notice to Party B that it
               is no longer a foreign person;

          (C)  in respect of each Transaction Party A enters into through an
               office or discretionary agent in the United States or which
               otherwise is allocated (in whole or part) for United States
               federal income tax purposes to such United States trade or
               business, each payment received or to be received by Party A
               under such Transaction (or portion thereof, if applicable) will
               be effectively connected with its conduct of a trade or business
               in the United States; and

          (D)  in respect of all other Transactions or portions thereof, no such
               payment received or to be received by Party A in connection with
               this Agreement is attributable to a trade or business carried on
               by it through a permanent establishment in the United States.

     (ii) Party B represents that:

          (A)  it is the Trustee for the Issuing Entity;

          (B)  it is a national banking association and not a foreign
               corporation for United States tax purposes; and

          (C)  the Issuing Entity is a New York common law trust and not a
               foreign trust for United States tax purposes.

(C)  DEFINITION OF "INDEMNIFIABLE TAX". Notwithstanding the definition of
     "Indemnifiable Tax" in Section 14 of the Agreement, in relation to payments
     by Party A, any Tax shall be an Indemnifiable Tax and, in relation to
     payments by Party B, no Tax shall be an Indemnifiable Tax.

(D)  NO GROSS-UP BY PARTY B. Section 2(d)(i)(4) shall not apply to Party B as X,
     and Section 2(d)(ii) shall not apply to Party B as Y.

PART 3 AGREEMENT TO DELIVER DOCUMENTS.

For the purpose of Sections 4(a)(i) and (ii) of the Agreement, Party A and Party
B agree to deliver the following documents, as applicable:

(A)  Tax forms, documents or certificates to be delivered are:

                                     M-5-24

<PAGE>

<TABLE>
<CAPTION>
PARTY REQUIRED TO
 DELIVER DOCUMENT           FORM/DOCUMENT/CERTIFICATE          DATE BY WHICH TO BE DELIVERED
-----------------   ----------------------------------------   -----------------------------
<S>                 <C>                                        <C>
Party A             Any form or document required or           Upon reasonable request.
                    reasonably requested to allow the other
                    party to make payments under the
                    Agreement without any deduction or
                    withholding for or on account of any
                    Tax, or with such deduction or
                    withholding at a reduced rate.

Party B             Any form or document required or           (i) Concurrently with the
                    reasonably requested to allow the other    execution and delivery of
                    party to make payments under the           this Confirmation, and (ii)
                    Agreement without any deduction or         anytime when the document
                    withholding for or on account of any       last delivered is incorrect
                    Tax, or with such deduction or             or out-of-date.
                    withholding at a reduced rate.
</TABLE>

     (q) (B) Other documents to be delivered and covered by the Section 3(d)
     representation are:

<TABLE>
<CAPTION>
                                                                                                 COVERED BY
   PARTY REQUIRED                                                                               SECTION 3(D)
     TO DELIVER             FORM/DOCUMENT/OR CERTIFICATE       DATE BY WHICH TO BE DELIVERED   REPRESENTATION
   --------------     --------------------------------------   -----------------------------   --------------
<S>                   <C>                                      <C>                             <C>
Party A and Party B   Incumbency Certificate (or, if           Concurrently with the           Yes
                      available the current authorized         execution and delivery of
                      signature book or equivalent             this Agreement unless
                      authorizing documentation) specifying    previously delivered and
                      the names, titles, authority and         still in full force and
                      specimen signatures of the persons       effect.
                      authorized to execute the Confirmation
                      which sets forth the specimen
                      signatures of each signatory to the
                      Confirmation signing on its behalf.

Party B               The Pooling and Servicing Agreement.     Within 20 days of the           No
                                                               execution and delivery of
                                                               this Agreement.

Party A and Party B   Legal opinion(s) with respect to such    Concurrently with the           No
                      party relating to the enforceability     execution and delivery of
                      of the party's obligations under this    this Agreement.
                      Agreement.
</TABLE>

PART 4 MISCELLANEOUS.

                                           M-5-25

<PAGE>

(A)  ADDRESSES FOR NOTICES. For the purposes of Section 12(a) of the Agreement:

     (i) Notices or communications shall, with respect to a particular
     Transaction, be sent to the address, telex number or facsimile number
     reflected in the Confirmation of that Transaction. In addition (or in the
     event the Confirmation for a Transaction does not provide relevant
     Addresses/information for notice), with respect to notices provided
     pursuant to Section 5 and 6 of this Agreement, notice shall be provided to:

     Address for notices or communications to Party A:-

          The Royal Bank of Scotland plc, Financial Markets
          Attention: Caps Administration
          135 Bishopsgate
          London EC2M 3UR

          Tel.: 020 7085 5000
          Fax.: 020 7085 5050

          With a copy to:

          Address:       Greenwich Capital Markets, Inc.
                         600 Steamboat Road
                         Greenwich, CT 06830
          Attention:     Legal Department - Derivatives Documentation
          Phone No.:     203-618-2531/6467
          Facsimile No.: 203-422-4531/4247

     Address for notices or communications to Party B:-

          LaSalle Bank N.A.
          135 S. LaSalle Street, Suite 1625
          Chicago, IL 60603
          Attn: Kathryn Hawkinson, MLMI 2007 HE1

(B)  NOTICE BY FACSIMILE TRANSMISSION.

     Section 12(a) of the Agreement is amended by adding in the third line
     thereof after the phrase "messaging system" and before the ")" the words ";
     provided, however, any such notice or other communication may be given by
     facsimile transmission (it being agreed that the burden of proving receipt
     will be on the sender and will not be met by a transmission report
     generated by the sender's facsimile machine)".

     Section 12(a)(ii) of the Agreement is deleted in its entirety.

(C)  PROCESS AGENT. For the purpose of Section 13(c) of the Agreement:

     Party A appoints as its Process Agent: none

     Party B appoints as its Process Agent: none

(D)  OFFICES. With respect to Party A, the provisions of Section 10(a) of the
     Agreement will apply.

                                     M-5-26
<PAGE>

(E)  MULTIBRANCH PARTY. For the purpose of Section 10(c) of the Agreement:

          Party A is a Multibranch Party and may act through its London and New
          York Offices only.

          Party B is not a Multibranch Party.

(F)  CALCULATION AGENT. The Calculation Agent is Party A.

(G)  CREDIT SUPPORT DOCUMENT. Details of any Credit Support Document for Party A
     and Party B: With respect to Party A, the ISDA Credit Support Annex (New
     York law), dated as of the date hereof, between Party A and Party B, and
     such other collateralization agreement or credit arrangement provided for
     under the terms of any Confirmation and Transaction evidenced thereby,
     together with any document or agreement that by its terms secures or
     otherwise supports the parties' obligations under a Transaction heretofore
     or hereafter entered into between the parties. With respect to Party B,
     such credit support document is solely in respect of Party B's obligations
     under Paragraph 3(b) of the Credit Support Annex.

(H)  CREDIT SUPPORT PROVIDER.

          Credit Support Provider means in relation to Party A: Initially, none,
          provided however that a party providing an Eligible Guarantee, if any,
          shall be the Credit Support Provider in relation to Party A.

          Credit Support Provider means in relation to Party B: none.

(I)  GOVERNING LAW. This Agreement will be governed by and construed in
     accordance with the laws of the State of New York (without reference to
     conflicts of law doctrine other than New York General Obligations Law
     Sections 5-1401 and 5-1402).

(J)  NETTING OF PAYMENTS. Subparagraph (ii) of Section 2(c) of the Agreement
     will apply to the Transaction evidenced by the Confirmation.

(K)  AFFILIATES. Party B shall be deemed to not have any Affiliates for purposes
     of this Transaction.

     (r)

PART 5 OTHER PROVISIONS.

(A)  ADDITIONAL REPRESENTATION. Section 3(a) of the Agreement shall be amended
     to include the following additional representations after paragraph
     3(a)(v):

     (vi) PRINCIPAL. It is acting as principal and not as agent when entering
     into the Transaction.

     (vii) NON-RELIANCE. It is acting for its own account and it has made its
     own independent decisions to enter into the Transaction and as to whether
     the Transaction is appropriate or proper for it based upon its own judgment
     and upon advice from such advisors as it has deemed necessary. It is not
     relying on any communication (written or oral) of the other party as
     investment advice or as a recommendation to enter into the Transaction; it
     being understood that information and explanations related to the terms and
     conditions of the Transaction shall not be considered investment advice or
     a recommendation to enter into the Transaction. No communication (written
     or oral) received from the other party shall be deemed to be an assurance
     or guarantee as to the expected results of the Transaction.

                                     M-5-27

<PAGE>

     (viii) EVALUATION AND UNDERSTANDING. It is capable of evaluating and
     understanding (on its own behalf or through independent professional
     advice), and understands and accepts, the terms, conditions and risks of
     the Agreement and that Transaction. It is also capable of assuming, and
     assumes, the financial and other risks of the Agreement and that
     Transaction.

     (ix) STATUS OF PARTIES. The other party is not acting as an agent,
     fiduciary or advisor for it in respect of that Transaction.

     (x) ELIGIBLE CONTRACT PARTICIPANT, ETC. It is an "eligible contract
     participant" as defined in Section 1a(12) of the U.S. Commodity Exchange
     Act (7 U.S.C. 1a), as amended by the Commodity Futures Modernization Act of
     2000 and the Transaction evidenced hereby has been the subject of
     individual negotiations and is intended to be exempt from, or otherwise not
     subject to regulation thereunder.

(B)  WAIVER OF RIGHT TO TRIAL BY JURY. Each party hereby irrevocably waives any
     and all rights to trial by jury in any legal proceeding arising out of or
     relating to this Agreement or any Transaction hereunder.

(C)  ABSENCE OF LITIGATION. In Section 3(c) of the Agreement the words "or any
     of its Affiliates" shall be deleted.

(D)  FULLY-PAID PARTY PROTECTED. Notwithstanding the terms of Sections 5 and 6
     of the Agreement, if Party B has satisfied its payment obligations under
     Section 2(a)(i) of the Agreement, then unless Party A is required pursuant
     to appropriate proceedings to return to Party B or otherwise returns to
     Party B upon demand of Party B any portion of such payment, (a) the
     occurrence of an event described in Section 5(a) of the Agreement with
     respect to Party B shall not constitute an Event of Default or Potential
     Event of Default with respect to Party B as the Defaulting Party and (b)
     Party A shall be entitled to designate an Early Termination Date pursuant
     to Section 6 of the Agreement only as a result of a Termination Event set
     forth in either Section 5(b)(i) or Section 5(b)(ii) of the Agreement with
     respect to Party A as the Affected Party or Section 5(b)(iii) of the
     Agreement with respect to Party A as the Burdened Party. For purposes of
     the Transaction to which this Confirmation relates, Party B's only
     obligation under Section 2(a)(i) of the Agreement is to pay the Fixed
     Amount on the Fixed Rate Payer Payment Date.

(E)  LIMITATION OF LIABILITY.

     It is expressly understood and agreed by the parties hereto that (a) this
     Agreement is executed and delivered by La Salle Bank, National Association,
     as the Trustee of the Issuing Entity, in the exercise of the powers and
     authority conferred upon and vested in it under the Pooling and Servicing
     Agreement dated as of February 1, 2007, by and among LaSalle Bank National
     Association, as trustee, Merrill Lynch Mortgage Investors, Inc., as
     depositor (the "DEPOSITOR"), and Wilshire Credit Corporation., as servicer
     (the "POOLING AND SERVICING AGREEMENT") and pursuant to instructions set
     forth therein, and that the Trustee shall perform its duties and
     obligations hereunder in accordance with the standard of care set forth in
     the Pooling and Servicing Agreement, (b) each of the representations,
     undertakings and agreements herein is made and intended not as a personal
     representation, undertaking or agreement of the Trustee but is made and
     intended for the purpose of binding only the Issuing Entity, and (c) under
     no circumstances shall the Trustee be personally liable for the payment of
     any indebtedness or expenses of the Issuing Entity or be liable for the
     breach or failure of any obligation,

                                     M-5-28

<PAGE>

     representation, warranty or covenant made or undertaken by the Issuing
     Entity herein; provided that nothing in this paragraph shall relieve the
     Trustee from performing its duties and obligations hereunder in accordance
     with the standard of care set forth in the Pooling and Servicing Agreement.

(F)  PROCEEDINGS. Party A shall not institute against or cause any other person
     to institute against, or join any other person in instituting against Party
     B any bankruptcy, reorganization, arrangement, insolvency or liquidation
     proceedings, or other proceedings under any federal or state bankruptcy,
     dissolution or similar law, for a period of one year and one day (or, if
     longer, the applicable preference period) following indefeasible payment in
     full of the Certificates, provided that nothing herein shall preclude, or
     be deemed to estop Party A from taking any action in any case or proceeding
     voluntarily filed or commenced by or on behalf of Party B or in any
     involuntary case or proceeding after it has been commenced. This provision
     will survive the termination of this Agreement.

(G)  RECORDING OF CONVERSATIONS. Each party (i) consents to the recording of the
     telephone conversations of trading and marketing personnel of the parties
     and (ii) agrees to obtain any necessary consent of, and give notice of such
     recording to, such personnel of it.

(H)  NO SET-OFF. Notwithstanding any provision of this Agreement or any other
     existing or future agreement, each party irrevocably waives any and all
     rights it may have to set-off, net recoup or otherwise withhold or suspend
     or condition payment or performance of any obligation between it and the
     other party hereunder against any obligation between it and the other party
     under any other agreements. The provisions for Set-off set forth in Section
     6(e) of the Agreement shall not apply for purposes of this Transaction.

(I)  RATING AGENCY DOWNGRADE.

          (i) For purposes of this Part 5(i), the following definitions apply:

     An entity has "ACCEPTABLE RATINGS" if (x) its short-term unsecured and
     unsubordinated debt is rated at least "A-1" by S&P (or, if Party A does not
     have a short-term unsecured and unsubordinated debt rating from S&P, its
     long-term unsecured and unsubordinated debt is rated at least "A+" by S&P),
     and (y) Party A's long-term unsecured and unsubordinated debt is rated at
     least "A3" and Party A's short-term unsecured and unsubordinated debt is
     rated at least "Prime-2" (or if Party A does not have a short-term
     unsecured and unsubordinated debt rating from Moody's, its long-term
     unsecured and unsubordinated debt is rated at least "A3").

     "ELIGIBLE GUARANTEE" means an unconditional and irrevocable guarantee that
     is provided by a guarantor with Acceptable Ratings as principal debtor
     rather than surety and is directly enforceable by Party B, where either (A)
     a law firm has given a legal opinion confirming that none of the
     guarantor's payments to Party B under such guarantee will be subject to
     withholding for tax or (B) such guarantee provides that, in the event that
     any of such guarantor's payments to Party B are subject to withholding for
     tax, such guarantor is required to pay such additional amount as is
     necessary to ensure that the net amount actually received by Party B (free
     and clear of any withholding tax) will equal the full amount Party B would
     have received had no such withholding been required.

     "ELIGIBLE REPLACEMENT" means an entity (A) with the Acceptable Ratings or
     (B) whose present and future obligations owing to Party B are guaranteed
     pursuant to an Eligible Guarantee.

                                     M-5-29

<PAGE>

     A "FIRST RATING TRIGGER EVENT" shall occur with respect to Party A (or any
     applicable Credit Support Provider), if (x) its short-term unsecured and
     unsubordinated debt ceases to be rated at least "A-1" by S&P (or, if Party
     A does not have a short-term unsecured and unsubordinated debt rating from
     S&P, its long-term unsecured and unsubordinated debt ceases to be rated at
     least "A+" by S&P), or (y)(a) its long-term unsecured and unsubordinated
     debt ceases to be rated at least "A2" by Moody's or its short-term
     unsecured and unsubordinated debt cease to be rated at least "Prime-1" by
     Moody's, or (b) if Party A does not have a short-term unsecured and
     unsubordinated debt rating from Moody's, its long-term unsecured and
     unsubordinated debt ceases to be rated at least "A1" by Moody's.

     "RATING AGENCY CONDITION" means, with respect to any particular proposed
     act or omission to act hereunder, that the party acting or failing to act
     must consult with each of the Rating Agencies then providing a rating of
     the Certificates and receive from each such Rating Agency a prior written
     confirmation that the proposed action or inaction would not cause a
     downgrade or withdrawal of the then-current rating of the Certificates.

     A "SECOND RATING TRIGGER EVENT" shall occur with respect to Party A (or any
     applicable credit support provider), if (A) Party A's long-term unsecured
     and unsubordinated debt ceases to be rated at least "BBB-" or Party A's
     short-term unsecured and unsubordinated debt ceases to be rated at least
     "A-3" or is withdrawn by S&P or (B) Party A's long-term unsecured and
     unsubordinated debt ceases to be rated at least "A3" or Party A's
     short-term unsecured and unsubordinated debt ceases to be rated at least
     "Prime-2" (or if Party A does not have a short-term unsecured and
     unsubordinated debt rating from Moody's, its long-term unsecured and
     unsubordinated debt ceases to be rated at least "A3").

     (ii) If a First Rating Trigger Event occurs with respect to Party A (or any
          applicable Credit Support Provider), then (unless, within 30 days of
          such First Rating Trigger Event, each of Standard and Poor's, a
          Division of McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors
          Service, Inc. ("MOODY'S") (each a "RATING AGENCY") has reconfirmed its
          rating of the Certificates which was in effect immediately prior to
          such First Rating Trigger Event) Party A shall, within (30) days of
          such First Rating Trigger Event, at its own expense, (A) obtain an
          Eligible Guarantee in respect of all of Party A's present and future
          obligations under this Agreement, subject to the Rating Agency
          Condition with respect to S&P only, (B) transfer all or substantially
          all of its rights and obligations with respect to this Agreement to an
          Eligible Replacement (provided that Party B shall determine in its
          sole discretion, acting in a commercially reasonable manner, whether
          or not a transfer relates to all or substantially all of Party A's
          rights and obligations under this Agreement), subject to the Rating
          Agency Condition with respect to S&P only or (C) post collateral in
          accordance with the Credit Support Annex to this Agreement, subject to
          the Rating Agency Condition in respect of S&P only.

     (iii) If a Second Rating Trigger Event occurs with respect to Party A (or
          any applicable Credit Support Provider), then, within 10 Business Days
          of such Second Rating Trigger Event with respect to S&P, Party A will
          at its own cost use commercially reasonable efforts to, as soon as
          reasonably practicable, either (A) obtain an Eligible Guarantee in
          respect of all of Party A's present and future obligations under this
          Agreement, subject to the Rating Agency Condition with respect to S&P
          only, or (B) transfer all or substantially all of its rights and
          obligations with respect to this Agreement to an Eligible Replacement

                                     M-5-30

<PAGE>

          (provided that Party B shall determine in its sole discretion, acting
          in a commercially reasonable manner, whether or not a transfer relates
          to all or substantially all of Party A's rights and obligations under
          this Agreement), subject to the Rating Agency Condition with respect
          to S&P only.

(J)  TRANSFERS.

     (i) Section 7 is hereby amended to read in its entirety as follows:

     "Subject to Section 6(b)(ii), Part 5(i) and Part 5(k), neither Party A nor
     Party B is permitted to assign, novate or transfer (whether by way of
     security or otherwise) as a whole or in part any of its rights, obligations
     or interests under the Agreement or any Transaction without (a) the prior
     written consent of the other party and (b) satisfaction of the Rating
     Agency Condition with respect to S&P."

     (ii) If an Eligible Replacement has made a Firm Offer (which remains an
     offer that will become legally binding upon acceptance by Party B) to be
     the transferee pursuant to a Permitted Transfer, Party B shall, at Party
     A's written request and at Party A's expense, take any reasonable steps
     required to be taken by Party B to effect such transfer.

     "PERMITTED TRANSFER" means a transfer by novation by Party A to a
     transferee (the "Transferee") of all, but not less than all, of Party A's
     rights, liabilities, duties and obligations under this Agreement, with
     respect to which transfer each of the following conditions is satisfied:
     (a) the Transferee is an Eligible Replacement that is a recognized dealer
     in interest rate swaps and caps organized under the laws of the United
     States of America or a jurisdiction located in the United States of America
     (or another jurisdiction reasonably acceptable to Party B), (b) as of the
     date of such transfer neither Party B nor the Transferee would be required
     to withhold or deduct on account of Tax from any payments under this
     Agreement or would be required to gross up for such Tax under Section
     2(d)(i)(4), (c) an Event of Default or Termination Event would not occur as
     a result of such transfer, (d) Party B has consented in writing to the
     transfer, such consent not to be unreasonably withheld, (e) pursuant to a
     written instrument (the "Transfer Agreement"), the Transferee acquires and
     assumes all rights and obligations of Party A under the Agreement and the
     relevant Transaction, (f) Party B shall have determined, in its sole
     discretion, acting in a commercially reasonable manner, that such Transfer
     Agreement is effective to transfer to the Transferee all, but not less than
     all, of Party A's rights and obligations under the Agreement and all
     relevant Transactions; (g) Party A will be responsible for any costs or
     expenses incurred in connection with such transfer (including any
     replacement cost of entering into a replacement transaction); (h) either
     (A) Moody's has been given prior written notice of such transfer and the
     Rating Agency Condition is satisfied with respect to S&P or (B) each Rating
     Agency has been given prior written notice of such transfer and such
     transfer is in connection with the assignment and assumption of this
     Agreement without modification of its terms, other than party names, dates
     relevant to the effective date of such transfer, tax representations
     (provided that the representations in Part 2(a)(i) are not modified) and
     any other representations regarding the status of the substitute
     counterparty, notice information and account details; and (i) such transfer
     otherwise complies with the terms of the Pooling and Servicing Agreement.

(K)  COMPLIANCE WITH REGULATION AB

                                     M-5-31

<PAGE>

     (i) Party A acknowledges that for so long as there are reporting
     obligations with respect to this Transaction under Regulation AB
     ("REGULATION AB") under the Securities Act of 1933, as amended, and the
     Securities Exchange Act of 1934, as amended (the "1934 ACT"), the Depositor
     is required under Regulation AB, to disclose certain information set forth
     in Regulation AB regarding Party A or its group of affiliated entities, if
     applicable, depending on the aggregate "significance percentage" of this
     Agreement and any other derivative contracts between Party A or its group
     of affiliated entities, if applicable, and Party B, as calculated from time
     to time in accordance with Item 1115 of Regulation AB.

     (ii) Subject to the provisions of clause (iii) below, and so long as there
     are reporting obligations with respect to this Transaction under Regulation
     AB, if the Depositor determines, reasonably and in good faith, that the
     aggregate significance percentage of this Agreement has increased to nine
     (9) percent, then the Depositor may request from Party A (such request, a
     "Hedge Disclosure Request") on a Business Day after the date of such
     determination the same information set forth in Item 1115(b) of Regulation
     AB (such requested information, subject to the last sentence of this
     paragraph, the "Hedge Financial Disclosure") that would have been required
     if the significance percentage had in fact increased to ten (10) percent.
     Party B, the Depositor or any of its agents shall provide Party A with the
     calculations and any other information reasonably requested by Party A with
     respect to the Depositor's determination that led to the Hedge Disclosure
     Request. The parties hereto further agree that the Hedge Financial
     Disclosure provided to meet the Hedge Disclosure Request may be, solely at
     Party A's option, either the information set forth in Item 1115(b)(1) or
     Item 1115(b)(2) of Regulation AB.

     (iii) So long as there are reporting obligations with respect to this
     Transaction under Regulation AB, if the Depositor determines, reasonably
     and in good faith, that the aggregate significance percentage of this
     Agreement has increased to nineteen (19) percent, then the Depositor may
     make a Hedge Disclosure Request to Party A on a Business Day after the date
     of such determination for Hedge Financial Disclosure that would have been
     required if the significance percentage had in fact increased to twenty
     (20) percent (and, accordingly, consists of the information set forth in
     Item 1115(b)(2) of Regulation AB). Party B, the Depositor or any of its
     agents shall provide Party A with the calculations and any other
     information reasonably requested by Party A with respect to the Depositor's
     determination that led to the Hedge Disclosure Request.

     (iv) Upon the occurrence of a Hedge Disclosure Request, Party A, at its own
     expense, shall (a) provide the Depositor with the Hedge Financial
     Disclosure, (b) subject to Rating Agency Condition, secure another entity
     to replace Party A as party to this Agreement on terms substantially
     similar to this Agreement which entity is able to provide the Hedge
     Financial Disclosure or (c) subject to Rating Agency Condition, obtain a
     guaranty of Party A's obligations under this Agreement from an affiliate of
     Party A that is able to provide the Hedge Financial Disclosure, such that
     disclosure provided in respect of the affiliate will satisfy any disclosure
     requirements applicable to Party A, and cause such affiliate to provide
     Hedge Financial Disclosure. For purposes of clause (b) above, the parties
     agree that National Westminster Bank Plc ("NATWEST") shall be an acceptable
     replacement for Party A, so long as NatWest satisfies the conditions
     specified in such clause (b). If permitted by Regulation AB, any required
     Hedge Financial Disclosure may be provided by incorporation by reference
     from reports filed pursuant to the 1934 Act.

                                     M-5-32

<PAGE>

     (v) Party A agrees that, if it responds to a Hedge Disclosure Request by
     providing Hedge Financial Disclosure, then, for so long as the Depositor
     has reporting obligations under the 1934 Act with respect to this
     Transaction, it will provide any updates to Hedge Financial Disclosure
     within 5 Business Days following the availability thereof. If permitted by
     Regulation AB, any such update may be provided by incorporation by
     reference from reports filed pursuant to the 1934 Act.

     (vi) All information provided pursuant to this Part 5(k) shall be in a form
     suitable for conversion to the format required for filing by the Depositor
     with the Commission via the Electronic Data Gathering and Retrieval System
     (EDGAR). The parties hereto acknowledge that electronic files in Adobe
     Acrobat format will be deemed to satisfy the requirements of this Part
     5(k)(vi).

(L)  AMENDMENT. Notwithstanding any provision to the contrary in this Agreement,
     no amendment, modification, or waiver of either this Agreement or any
     Transaction under this Agreement shall be permitted by either party unless
     each of the Rating Agencies has been provided prior written notice of the
     same and S&P confirms in writing (including by facsimile transmission) that
     it will not downgrade, withdraw or otherwise modify its then-current
     ratings of the Certificates.

(M)  SEVERABILITY. If any term, provision, covenant, or condition of the
     Agreement, or the application thereof to any other party or circumstance,
     shall be held invalid or unenforceable (in whole or in part) for any
     reason, the remaining terms, provisions, covenants, and conditions hereof
     shall continue in full force and effect as if the Agreement has been
     executed with the invalid or unenforceable provision portion eliminated, so
     long as the Agreement as so modified continues to express, without material
     change, the original intentions of the parties as to the subject matter of
     the Agreement and the deletion of such portion of the Agreement will not
     substantially impair the respective benefits or expectations of the
     parties. The parties shall endeavor to engage in good faith negotiations to
     replace any invalid or unenforceable term, provision, covenant or
     conditions with a valid or enforceable term, provision, covenant or
     condition, the economic effect of which comes as close as possible to that
     of the invalid or unenforceable term, provision, covenant or condition.

(N)  COUNTERPARTS. This Agreement may be executed in several counterparts, each
     of which shall be deemed an original but all of which together shall
     constitute one and the same instrument.

(O)  USA PATRIOT ACT NOTICE. Party A hereby notifies Party B that pursuant to
     the requirements of the USA PATRIOT ACT (Title III of Pub. L. 107-56
     (signed into law October 26, 2001)) (the "ACT"), it is required to obtain,
     verify and record information that identifies Party B, which information
     includes the name and address of Party B and other information that will
     allow Party A to identify Party B in accordance with the Act.

(P)  AGENCY ROLE OF GREENWICH CAPITAL MARKETS, INC. In connection with this
     Agreement, Greenwich Capital Markets, Inc. has acted as agent on behalf of
     Party A. Greenwich Capital Markets, Inc. has not guaranteed and is not
     otherwise responsible for the obligations of Party A under this Agreement.

(Q)  NON-RECOURSE. Party A acknowledges and agrees that, notwithstanding any
     provision in this Agreement to the contrary, the obligations of Party B
     hereunder are limited recourse obligations of Party B, payable solely from
     the Assets and the proceeds thereof, in accordance with the terms of the
     Pooling and Servicing Agreement. In the event that the Assets and the
     proceeds thereof, should be insufficient to satisfy all claims outstanding

                                     M-5-33

<PAGE>

     and following the realization of the Assets and the proceeds thereof, any
     claims against or obligations of Party B under this Agreement still
     outstanding shall be extinguished and thereafter not revive. This provision
     shall survive the termination of this Agreement.

(R)  THIRD PARTY BENEFICIARY. The Depositor shall be an express third party
     beneficiary of this Agreement with respect to Party A's undertakings under
     Part 5(k) only.

(S)  DEFINED TERMS. Terms capitalized but not defined herein or in the
     Definitions incorporated herein shall have the respective meanings
     attributed to them in the Pooling and Servicing Agreement.

(T)  MLML SHALL NOT BENEFIT. The parties hereto agree and acknowledge that
     amounts paid hereunder are not intended to benefit the holder of any class
     of certificates rated by any rating agency if such holder is Merrill Lynch
     Mortgage Lending, Inc. ("MLML") or any of its affiliates. If MLML or any of
     its affiliates receives any such amounts, it will promptly remit (or, if
     such amounts are received by an affiliate of MLML, MLML hereby agrees that
     it will cause such affiliate to promptly remit) such amounts to the
     Trustee, whereupon the Trustee will promptly remit such amounts to Party A.

(U)  In the event that the transaction to which the Pooling and Servicing
     Agreement relates does not occur, and the Merrill Lynch Mortgage Investors
     Trust, Series 2007-1 is not formed, Party A and MLML agree that MLML shall
     become Party B under this Agreement.

                      [Signature Page Immediately Follows]

                                     M-5-34

<PAGE>

IN WITNESS WHEREOF, Party A and Party B have caused this Schedule to be duly
executed as its act and deed as of the date first written above.

THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION,
                                        NOT INDIVIDUALLY, BUT SOLELY AS TRUSTEE
BY: GREENWICH CAPITAL MARKETS, INC.,    WITH RESPECT TO THE ISSUING ENTITY FOR
AS ITS AGENT                            MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2007-1

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

Solely with respect to Part 5(t) and Part 5(u)

MERRILL LYNCH MORTGAGE LENDING INC.

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

     (s)

                                     M-5-35

<PAGE>

                                    EXHIBIT N
                                   [RESERVED]

                                      N-1

<PAGE>

                                    EXHIBIT O

                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER TO REGULATION S BOOK-ENTRY CERTIFICATE
        FROM A HOLDER OF A RULE 144A BOOK-ENTRY CERTIFICATE OR DEFINITIVE
                                   CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch Mortgage
Investors Trust, Series 2007-HE1

RE:  Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
     Certificates, Series 2007-HE1

Ladies and Gentlemen:

          In connection with our disposition of the Class ___ Certificates which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Rule 144A Book-Entry Certificate and to effect the transfer
pursuant to Regulation S under the Securities Act of 1933, as amended
("Regulation S") of the above Certificates in exchange for an equivalent
beneficial interest in a Regulation S Book-Entry Certificate, we hereby certify
that such transfer has been effected in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of
February 1, 2007, among Merrill Lynch Mortgage Investors, Inc., as Depositor,
LaSalle Bank National Association, as Trustee, Wilshire Credit Corporation, as
Servicer, and in the Certificates and (ii) in accordance with Regulation S, and
that:

          a. the offer of the Certificates was not made to a person in the
United States;

          b. at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably
believed that the transferee was outside the United States;

          c. no directed selling efforts have been made in contravention of the
requirements of Rule 903 or 904 of Regulation S, as applicable;

          d. the transaction is not part of a plan or scheme to evade the
registration requirements of the United States Securities Act of 1933, as
amended; and

          e. the transferee is not a U.S. Person (as defined by Regulation S).

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

                                       O-1

<PAGE>
\
                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferor

                                        By
                                           -------------------------------------
                                           Authorized Officer

                                       O-2

<PAGE>

                                    EXHIBIT P

                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER PURSUANT TO RULE 144A FROM A HOLDER OF
         A REGULATION S BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1511
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Merrill Lynch Mortgage
Investors Trust, Series 2007-HE1

RE:  Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
     Certificates, Series 2007-HE1

Ladies and Gentlemen:

          In connection with our disposition of the Class __ Certificates which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Regulation S Book-Entry Certificate and to effect the transfer
pursuant to Rule 144A under the Securities Act of 1933, as amended ("Rule 144A")
of the above Certificates in exchange for an equivalent beneficial interest in a
Rule 144A Book-Entry Certificate or a Definitive Note, we hereby certify that
such Certificates are being transferred in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of
February 1, 2007, among Merrill Lynch Mortgage Investors, Inc., as Depositor, La
Salle Bank National Association, as Trustee, Wilshire Credit Corporation, as
Servicer, and in the Certificates and (ii) Rule 144A under the Securities Act of
1933, as amended, to a transferee that we reasonably believe is purchasing the
Certificates for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a "qualified institutional buyer" within the meaning of Rule 144A, in
a transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry with respect to the
matters covered hereby.

                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferor

                                        By:
                                            ------------------------------------
                                         Authorized Officer

                                       P-1

<PAGE>

                                   EXHIBIT Q-1

                              FORM OF CAP CONTRACT

<TABLE>
<S>                   <C>
Date:                March 8, 2007

To:                  La Salle Bank, National Association, not individually, but
                     solely as supplemental interest trust trustee for the
                     Supplemental Interest Trust (the "SUPPLEMENTAL INTERST
                     TRUST TRUSTEE") with respect to Merrill Lynch Mortgage
                     Investors Trust, Series 2007-HE1

                     135 S. LaSalle St. // Suite 1625
                     Chicago, IL 60603
                     Attn.: Kathryn Hawkinson, MLMI 2007 HE1
                     Tel:312-904-6561
                     Fax: 312-904-2084

                     Merrill Lynch Mortgage Lending, Inc.
                     Attn: John O'Grady
                     Tel: 212-449-1441
                     Fax: 212-738-1110

From:                The Royal Bank of Scotland plc
                     c/o RBS Financial Markets
                     Level 7, 135 Bishopsgate
                     London EC2M 3UR
                     Attn: Head of Legal, Financial Markets
                     Tel: 44 207 085 5000
                     Fax: 44 207 085 8411

Copy To:             600 Steamboat Road
                     Greenwich, CT 06830
                     Attn: Legal Department - Derivatives Documentation
                     Tel.: 203-618-2531/32
                     Fax: 203-618-2533/34

Our Reference No.:   IRG16222448

Re:                  Interest Rate Cap Transaction
</TABLE>

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the Transaction entered into between The Royal Bank of Scotland plc ("Party A")
and the Supplemental Interest Trust Trustee ("Party B") for the supplemental
interest trust (the "Supplemental Interest Trust") created under the Pooling and

                                      Q-1-1

<PAGE>

Servicing Agreement dated as of February 1, 2007, by and among LaSalle Bank
National Association, as trustee, Merrill Lynch Mortgage Investors, Inc., as
depositor, and Wilshire Credit Corporation., as servicer (the "Pooling and
Servicing Agreement") on the Trade Date specified below (the "Transaction").
This letter agreement constitutes a "Confirmation" as referred to in the
Agreement specified below.

The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions") as published by the International Swaps and Derivatives
Association, Inc. are incorporated by reference herein. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.

For the purpose of this Confirmation, all references in the Definitions or the
Agreement to a "Swap Transaction" shall be deemed to be references to this
Transaction.

1.   This Confirmation supplements, forms part of, and is subject to, ISDA
     Master Agreement and Schedule dated as of March 8, 2007 (as the same may be
     amended or supplemented from time to time, the "Agreement"), between Party
     A and Party B. All provisions contained in the Agreement shall govern this
     Confirmation except as expressly modified below.

2.   The terms of the particular Transaction to which this Confirmation relates
     are as follows:

<TABLE>
<S>                              <C>
Notional Amount:                 With respect to any Calculation Period, the
                                 lesser of (i) the "Cap Notional Amount" set
                                 forth on Schedule A attached hereto and (ii)
                                 the excess, if any, of (a) the aggregate
                                 Certificate Principal Balance of the Class A,
                                 Class B and Class M Certificates (together the
                                 "Certificates") as of the first day of such
                                 Calculation Period (the "Relevant Balance")
                                 over (b) the "Swap Notional Amount" set forth
                                 on Schedule A attached hereto.

                                 The Supplemental Interest Trust Trustee shall
                                 make available each month on its website a
                                 statement containing the Relevant Balance at
                                 least five (5) Business Days prior to the
                                 related Floating Rate Payer Payment Date, and
                                 Party A shall be entitled to rely conclusively
                                 upon such statement. The Supplemental Interest
                                 Trust Trustee's internet website is located at
                                 http://www.etrustee.net and assistance in using
                                 the website can be obtained by calling
                                 312-992-2835.

                                 Any payment by Party A to to Party B in excess
                                 of the amount due under this Transaction on any
                                 Floating Rate Payer Payment Date (as a result
                                 of the Notional Amount for the related
                                 Calculation Period being other than the amount
                                 set forth in Schedule A hereto for such
                                 Calculation Period) shall be returned by Party
                                 B to Party A as soon as Party B becomes aware
                                 of such overpayment. Other than the return of
                                 such
</TABLE>

                                      Q-1-2

<PAGE>

<TABLE>
<S>                              <C>
                                 overpayment, neither Party B nor Party A shall
                                 incur any penalty or liability hereunder with
                                 respect to such overpayment.

   Trade Date:                   March 6, 2007

   Effective Date:               August 25, 2007

   Termination Date:             February 25, 2011, subject to adjustment in
                                 accordance with the Business Day Convention.

Fixed Amounts:

   Fixed Rate Payer:             Party B

   Fixed Rate Payer Payment
      Date:                      March 8, 2007

   Fixed Amount:                 USD 354,000

Floating Amounts:

   Floating Rate Payer:          Party A

   Cap Rate:                     5.320%

   Floating Rate Payer Period
      End Dates:                 The 25th day of each month, commencing
                                 September 25, 2007, through and including the
                                 Termination Date, subject to adjustment in
                                 accordance with the Business Day Convention.

   Floating Rate Payer Payment
      Dates:                     Early Payment shall be applicable. The Floating
                                 Rate Payer Payment Dates shall be two (2)
                                 Business Days prior to each Floating Rate Payer
                                 Period End Date.

   Floating Rate Option:         USD-LIBOR-BBA.

   Designated Maturity:          1 month
</TABLE>

                                      Q-1-3

<PAGE>

<TABLE>
<S>                              <C>
   Spread:                       None

   Floating Rate Day Count
      Fraction:                  Actual/360

   Reset Dates:                  The first day of each Calculation Period

   Compounding:                  Inapplicable:

Calculation Agent:               Party A

Business Days:                   New York

Business Day Convention          Modified Following
</TABLE>

3.   Account Details:

     Account Details for Party A:

          For the account of The Royal Bank of Scotland
          Financial Markets Fixed Income and Interest Rate
          Derivative Operations, London SWIFT RBOSGB2RTCM
          with JPMorgan Chase Bank, New York CHASUS33
          ABA # 021000021
          Account Number 400930153

     Account Details for Party B:

          LaSalle Bank
          ABA #071 000 505
          LaSalle CHGO/CTR/BNF:/LASALLE TRUST
          Ref Trust A/C# 724545.4

4.   Offices:

     The Office of Party A for this Transaction is London, England

5.   It is expressly understood and agreed by the parties hereto that (a) this
     Confirmation is executed and delivered by La Salle Bank, National
     Association, as the Supplemental Interest Trust Trustee of the Supplemental
     Interest Trust, in the exercise of the powers and authority conferred upon
     and

                                      Q-1-4

<PAGE>

     vested in it under the Pooling and Servicing Agreement and pursuant to
     instructions set forth therein, and that the Supplemental Interest Trust
     Trustee shall perform its duties and obligations hereunder in accordance
     with the standard of care set forth in the Pooling and Servicing Agreement,
     (b) each of the representations, undertakings and agreements herein is made
     and intended not as a personal representation, undertaking or agreement of
     the Supplemental Interest Trust Trustee but is made and intended for the
     purpose of binding only the Supplemental Interest Trust, and (c) under no
     circumstances shall the Supplemental Interest Trust Trustee be personally
     liable for the payment of any indebtedness or expenses of the Supplemental
     Interest Trust or be liable for the breach or failure of any obligation,
     representation, warranty or covenant made or undertaken by the Supplemental
     Interest Trust herein; provided that nothing in this paragraph shall
     relieve the Supplemental Interest Trust Trustee from performing its duties
     and obligations hereunder in accordance with the standard of care set forth
     in the Pooling and Servicing Agreement.

6.   Agency Role of Greenwich Capital Markets, Inc. This Transaction has been
     entered into by Greenwich Capital Markets, Inc., as agent for The Royal
     Bank of Scotland plc. Greenwich Capital Markets, Inc. has not guaranteed
     and is not otherwise responsible for the obligations of Party A under this
     Transaction.

7.   MLML Shall Not Benefit. The parties hereto agree and acknowledge that
     amounts paid hereunder are not intended to benefit the holder of any class
     of certificates rated by any rating agency if such holder is Merrill Lynch
     Mortgage Lending, Inc. ("MLML") or any of its affiliates. If MLML or any of
     its affiliates receives any such amounts, it will promptly remit (or, if
     such amounts are received by an affiliate of MLML, MLML hereby agrees that
     it will cause such affiliate to promptly remit) such amounts to the
     Securities Administrator, whereupon the Securities Administrator will
     promptly remit such amounts to the Cap Provider.

8.   In the event that the transaction to which the Pooling and Servicing
     Agreement relates does not occur, and the Merrill Lynch Mortgage Investors
     Trust, Series 2007-HE1 is not formed, Party A and MLML agree that MLML
     shall become Party B under this Agreement

                      [Signature Page Immediately Follows]

                                      Q-1-5

<PAGE>

Please promptly confirm that the foregoing correctly sets forth the terms of the
Transaction entered into between us by executing this Confirmation and returning
it to us by facsimile to:

The Royal Bank of Scotland plc
Attention: Derivatives Documentation
Fax: 0207 375 6724 / 6486 Phone: 0207 375 4225

For and on behalf of                    For and on behalf of

THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION, NOT
                                        INDIVIDUALLY, BUT SOLELY AS SUPPLEMENTAL
BY: GREENWICH CAPITAL MARKETS, INC.,    INTEREST TRUST TRUSTEE FOR THE
ITS AGENT                               SUPPLEMENTAL INTEREST TRUST WITH RESPECT
                                        TO MERRILL LYNCH MORTGAGE INVESTORS
                                        TRUST, SERIES 2007-HE1

-------------------------------------   ----------------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Title:                                  Title:
       ------------------------------          ---------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------

For and on behalf of
MERRILL LYNCH MORTGAGE LENDING INC.

-------------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
Date:
      -------------------------------

                                      Q-1-6

<PAGE>

                                   SCHEDULE A

     All dates subject to adjustment in accordance with the Modified Following
Business Day Convention.

<TABLE>
<CAPTION>
From and including:   To but excluding:   Cap Notional Amount (USD):   Swap Notional Amount (USD):
-------------------   -----------------   --------------------------   ---------------------------
<S>                   <C>                 <C>                          <C>
     08/25/2007           09/25/2007              15,535,157                   973,003,079
     09/25/2007           10/25/2007              18,925,002                   937,704,157
     10/25/2007           11/25/2007              22,748,786                   898,078,676
     11/25/2007           12/25/2007              26,481,476                   857,932,620
     12/25/2007           01/25/2008              29,685,128                   820,643,961
     01/25/2008           02/25/2008              32,353,531                   786,816,512
     02/25/2008           03/25/2008              34,612,452                   755,812,801
     03/25/2008           04/25/2008              36,576,055                   726,849,876
     04/25/2008           05/25/2008              38,336,489                   699,480,961
     05/25/2008           06/25/2008              39,828,122                   673,970,266
     06/25/2008           07/25/2008              41,110,245                   649,943,203
     07/25/2008           08/25/2008              42,209,899                   627,396,641
     08/25/2008           09/25/2008              43,205,936                   605,668,611
     09/25/2008           10/25/2008              45,197,444                   574,525,085
     10/25/2008           11/25/2008              53,179,809                   518,804,323
     11/25/2008           12/25/2008              60,573,099                   461,146,615
     12/25/2008           01/25/2009              63,356,972                   417,701,671
     01/25/2009           02/25/2009              63,699,582                   385,541,974
     02/25/2009           03/25/2009              63,216,036                   359,884,600
     03/25/2009           04/25/2009              62,310,992                   338,799,368
     04/25/2009           05/25/2009              61,220,806                   320,182,228
     05/25/2009           06/25/2009              60,003,676                   302,821,327
     06/25/2009           07/25/2009              58,721,077                   286,870,361
     07/25/2009           08/25/2009              57,420,777                   272,238,275
     08/25/2009           09/25/2009              56,129,593                   258,715,936
     09/25/2009           10/25/2009              41,368,183                   257,521,000
     10/25/2009           11/25/2009              28,974,461                   248,591,525
     11/25/2009           12/25/2009              32,559,375                   224,961,625
     12/25/2009           01/25/2010              51,968,070                   205,319,378
     01/25/2010           02/25/2010              50,942,805                   190,111,970
     02/25/2010           03/25/2010              49,555,970                   177,508,107
     03/25/2010           04/25/2010              48,093,263                   166,734,983
     04/25/2010           05/25/2010              46,615,707                   156,835,449
     05/25/2010           06/25/2010              45,152,984                   147,723,720
     06/25/2010           07/25/2010              43,728,826                   139,553,858
     07/25/2010           08/25/2010              42,352,731                   132,183,349
     08/25/2010           09/25/2010              41,019,848                   125,395,945
     09/25/2010           10/25/2010              39,713,590                   119,023,284
</TABLE>

                                      Q-1-7

<PAGE>

<TABLE>
<S>                   <C>                 <C>                          <C>
     10/25/2010           11/25/2010              38,421,695                   112,897,662
     11/25/2010           12/25/2010              37,153,221                   107,008,749
     12/25/2010           01/25/2011              35,861,618                   101,512,985
     01/25/2011           02/25/2011              34,680,605                    96,351,869
</TABLE>

                                      Q-1-8

<PAGE>

                                   EXHIBIT Q-2

                             FORM OF SWAP AGREEMENT

<TABLE>
<S>                <C>
Date:              March 8, 2007

To:                La Salle Bank, National Association, not individually, but
                   solely as supplemental interest trust trustee for the
                   Supplemental Interest Trust (the "SUPPLEMENTAL INTERST TRUST
                   TRUSTEE") with respect to Merrill Lynch Mortgage Investors
                   Trust, Series 2007-HE1

                   135 S. LaSalle St. // Suite 1625
                   Chicago, IL 60603
                   Attn.: Kathryn Hawkinson, MLMI 2007 HE1
                   Tel:312-904-6561
                   Fax: 312-904-2084

                   Merrill Lynch Mortgage Lending, Inc.
                   Attn: John O'Grady
                   Tel: 212-449-1441
                   Fax: 212-738-1110

From:              The Royal Bank of Scotland plc
                   c/o RBS Financial Markets
                   Level 7, 135 Bishopsgate
                   London EC2M 3UR
                   Attn: Head of Legal, Financial Markets
                   Tel: 44 207 085 5000
                   Fax: 44 207 085 8411

Copy To:           600 Steamboat Road
                   Greenwich, CT 06830
                   Attn: Legal Department - Derivatives Documentation
                   Tel.: 203-618-2531/32
                   Fax: 203-618-2533/34

Our Reference No.: D16222443

Re:                Interest Rate Swap Transaction
</TABLE>

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of
the Transaction entered into between The Royal Bank of Scotland plc ("Party A")
and the Supplemental Interest Trust Trustee ("Party B") for the supplemental
interest trust (the "Supplemental Interest Trust") created under the Pooling and
Servicing Agreement dated as of February 1, 2007, by and among LaSalle Bank
National Association, as trustee, Merrill Lynch Mortgage Investors, Inc., as
depositor, and Wilshire Credit Corporation., as servicer (the "Pooling and
Servicing Agreement") on the Trade Date specified below (the "Transaction").
This letter agreement constitutes a "Confirmation" as referred to in the
Agreement specified below.

                                      Q-2-1

<PAGE>

The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions") as published by the International Swaps and Derivatives
Association, Inc. are incorporated by reference herein. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.

For the purpose of this Confirmation, all references in the Definitions or the
Agreement to a "Swap Transaction" shall be deemed to be references to this
Transaction.

1.   This Confirmation supplements, forms part of, and is subject to, ISDA
     Master Agreement and Schedule dated as of March 8, 2007 (as the same may be
     amended or supplemented from time to time, the "Agreement"), between Party
     A and Party B. All provisions contained in the Agreement shall govern this
     Confirmation except as expressly modified below.

2.   The terms of the particular Transaction to which this Confirmation relates
     are as follows:

<TABLE>
<S>                              <C>
Notional Amount:                 With respect to any Calculation Period, the the
                                 "Notional Amount" set forth on Schedule A
                                 attached hereto.

   Trade Date:                   March 6, 2007

   Effective Date:               August 25, 2007

   Termination Date:             February 25, 2011, subject to adjustment in
                                 accordance with the Business Day Convention.

Fixed Amounts:

   Fixed Rate Payer:             Party B

   Fixed Rate Payer Period End
      Dates:                     The 25th day of each month, commencing
                                 September 25, 2007, through and including the
                                 Termination Date, subject to no adjustment.

   Fixed Rate Payer Payment
      Dates:                     Early Payment shall be applicable. The Fixed
                                 Rate Payer Payment Dates shall be two (2)
                                 Business Days prior to each Fixed Rate Payer
                                 Period End Date.

   Fixed Rate:                   4.950%

   Fixed Rate Day Count
      Fraction:                  30/360

Floating Amounts:
</TABLE>

                                      Q-2-2

<PAGE>

<TABLE>
<S>                              <C>
   Floating Rate Payer:          Party A

   Floating Rate Payer Period
      End Dates:                 The 25th day of each month, commencing
                                 September 25, 2007, through and including the
                                 Termination Date, subject to adjustment in
                                 accordance with the Business Day Convention.

   Floating Rate Payer Payment
      Dates:                     Each Fixed Rate Payer Payment Date.

   Floating Rate Option:         USD-LIBOR-BBA.

   Designated Maturity:          1 month

   Additional Floating Amount    USD 1,810,000, to be paid on the Effective
                                 Date.

   Spread:                       None

   Floating Rate Day Count
      Fraction:                  Actual/360

   Reset Dates:                  The first day of each Calculation Period

   Compounding:                  Inapplicable:

Calculation Agent:               Party A

Business Days:                   New York

Business Day Convention          Modified Following
</TABLE>

3.   Account Details:

     Account Details for Party A:

        For the account of The Royal Bank of Scotland
        Financial Markets Fixed Income and Interest Rate
        Derivative Operations, London SWIFT RBOSGB2RTCM
        with JPMorgan Chase Bank, New York CHASUS33
        ABA # 021000021
        Account Number 400930153

                                      Q-2-3

<PAGE>

     Account Details for Party B:

        LaSalle Bank
        ABA #071 000 505
        LaSalle CHGO/CTR/BNF:/LASALLE TRUST
        Ref Trust A/C# 724545.3

4.   Offices:

     The Office of Party A for this Transaction is London, England

5.   It is expressly understood and agreed by the parties hereto that (a) this
     Confirmation is executed and delivered by La Salle Bank, National
     Association, as the Supplemental Interest Trust Trustee of the Supplemental
     Interest Trust, in the exercise of the powers and authority conferred upon
     and vested in it under the Pooling and Servicing Agreement and pursuant to
     instructions set forth therein, and that the Supplemental Interest Trust
     Trustee shall perform its duties and obligations hereunder in accordance
     with the standard of care set forth in the Pooling and Servicing Agreement,
     (b) each of the representations, undertakings and agreements herein is made
     and intended not as a personal representation, undertaking or agreement of
     the Supplemental Interest Trust Trustee but is made and intended for the
     purpose of binding only the Supplemental Interest Trust, and (c) under no
     circumstances shall the Supplemental Interest Trust Trustee be personally
     liable for the payment of any indebtedness or expenses of the Supplemental
     Interest Trust or be liable for the breach or failure of any obligation,
     representation, warranty or covenant made or undertaken by the Supplemental
     Interest Trust herein; provided that nothing in this paragraph shall
     relieve the Supplemental Interest Trust Trustee from performing its duties
     and obligations hereunder in accordance with the standard of care set forth
     in the Pooling and Servicing Agreement.

6.   Agency Role of Greenwich Capital Markets, Inc. This Transaction has been
     entered into by Greenwich Capital Markets, Inc., as agent for The Royal
     Bank of Scotland plc. Greenwich Capital Markets, Inc. has not guaranteed
     and is not otherwise responsible for the obligations of Party A under this
     Transaction.

7.   MLML Shall Not Benefit. The parties hereto agree and acknowledge that
     amounts paid hereunder are not intended to benefit the holder of any class
     of certificates rated by any rating agency if such holder is Merrill Lynch
     Mortgage Lending, Inc. ("MLML") or any of its affiliates. If MLML or any of
     its affiliates receives any such amounts, it will promptly remit (or, if
     such amounts are received by an affiliate of MLML, MLML hereby agrees that
     it will cause such affiliate to promptly remit) such amounts to the
     Securities Administrator, whereupon the Securities Administrator will
     promptly remit such amounts to the Cap Provider.

8.   In the event that the transaction to which the Pooling and Servicing
     Agreement relates does not occur, and the Merrill Lynch Mortgage Investors
     Trust, Series 2007-HE1 is not formed, Party A and MLML agree that MLML
     shall become Party B under this Agreement

                      [Signature Page Immediately Follows]

                                      Q-2-4

<PAGE>

Please promptly confirm that the foregoing correctly sets forth the terms of the
Transaction entered into between us by executing this Confirmation and returning
it to us by facsimile to:

The Royal Bank of Scotland plc
Attention: Derivatives Documentation
Fax: 0207 375 6724 / 6486 Phone: 0207 375 4225

For and on behalf of                    For and on behalf of

THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION, NOT
                                        INDIVIDUALLY, BUT SOLELY AS SUPPLEMENTAL
BY: GREENWICH CAPITAL MARKETS, INC.,    INTEREST TRUST TRUSTEE FOR THE
ITS AGENT                               SUPPLEMENTAL INTEREST TRUST WITH RESPECT
                                        TO MERRILL LYNCH MORTGAGE INVESTORS
                                        TRUST, SERIES 2007-HE1

-------------------------------------   ----------------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Title:                                  Title:
       ------------------------------          ---------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------

For and on behalf of
MERRILL LYNCH MORTGAGE LENDING INC.

-------------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
Date:
      -------------------------------

                                      Q-2-5

<PAGE>

                                   SCHEDULE A

     All dates subject to adjustment in accordance with the Modified Following
Business Day Convention.

<TABLE>
<CAPTION>
From and including:   To but excluding:   Swap Notional Amount (USD):
-------------------   -----------------   ---------------------------
<S>                   <C>                 <C>
     08/25/2007           09/25/2007              973,003,079
     09/25/2007           10/25/2007              937,704,157
     10/25/2007           11/25/2007              898,078,676
     11/25/2007           12/25/2007              857,932,620
     12/25/2007           01/25/2008              820,643,961
     01/25/2008           02/25/2008              786,816,512
     02/25/2008           03/25/2008              755,812,801
     03/25/2008           04/25/2008              726,849,876
     04/25/2008           05/25/2008              699,480,961
     05/25/2008           06/25/2008              673,970,266
     06/25/2008           07/25/2008              649,943,203
     07/25/2008           08/25/2008              627,396,641
     08/25/2008           09/25/2008              605,668,611
     09/25/2008           10/25/2008              574,525,085
     10/25/2008           11/25/2008              518,804,323
     11/25/2008           12/25/2008              461,146,615
     12/25/2008           01/25/2009              417,701,671
     01/25/2009           02/25/2009              385,541,974
     02/25/2009           03/25/2009              359,884,600
     03/25/2009           04/25/2009              338,799,368
     04/25/2009           05/25/2009              320,182,228
     05/25/2009           06/25/2009              302,821,327
     06/25/2009           07/25/2009              286,870,361
     07/25/2009           08/25/2009              272,238,275
     08/25/2009           09/25/2009              258,715,936
     09/25/2009           10/25/2009              257,521,000
     10/25/2009           11/25/2009              248,591,525
     11/25/2009           12/25/2009              224,961,625
     12/25/2009           01/25/2010              205,319,378
     01/25/2010           02/25/2010              190,111,970
     02/25/2010           03/25/2010              177,508,107
     03/25/2010           04/25/2010              166,734,983
     04/25/2010           05/25/2010              156,835,449
     05/25/2010           06/25/2010              147,723,720
     06/25/2010           07/25/2010              139,553,858
     07/25/2010           08/25/2010              132,183,349
     08/25/2010           09/25/2010              125,395,945
     09/25/2010           10/25/2010              119,023,284
     10/25/2010           11/25/2010              112,897,662
     11/25/2010           12/25/2010              107,008,749
     12/25/2010           01/25/2011              101,512,985
     01/25/2011           02/25/2011               96,351,869
</TABLE>

                                      Q-2-6
<PAGE>

                                   EXHIBIT Q-3

        FORM OF CREDIT SUPPORT ANNEX FOR CAP CONTRACT AND SWAP AGREEMENT

Party A - The Royal Bank of Scotland plc

Party B - La Salle Bank, National Association, not individually, but solely as
supplemental interest trust trustee for the Supplemental Interest Trust (the
"SUPPLEMENTAL INTEREST TRUST TRUSTEE") with respect to Merrill Lynch Mortgage
Investors Trust, Series 2007-HE1

PARAGRAPH 13. ELECTIONS AND VARIABLES

(a) SECURITY INTEREST FOR "OBLIGATIONS". The term "Obligations" as used in this
Annex includes the following additional obligations:

     With respect to Party A: Not applicable.

     With respect to Party B: Not applicable.

(b) CREDIT SUPPORT OBLIGATIONS.

     (i) DELIVERY AMOUNT, RETURN AMOUNT AND CREDIT SUPPORT AMOUNT.

          (D)  "DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a),
               except that (I) the words "upon a demand made by the Secured
               Party on or promptly following a Valuation Date" shall be deleted
               and replaced by the words "not later than the close of business
               on each Valuation Date" and (II) the sentence beginning "Unless
               otherwise specified in Paragraph 13" and ending "(ii) the Value
               as of that Valuation Date of all Posted Credit Support held by
               the Secured Party." shall be deleted and replaced by the
               following:

          "THE "DELIVERY AMOUNT" APPLICABLE TO THE PLEDGOR FOR ANY VALUATION
          DATE WILL EQUAL THE GREATEST OF

          (1) THE AMOUNT BY WHICH (A) THE S&P COLLATERAL AMOUNT FOR SUCH
          VALUATION DATE EXCEEDS (B) THE S&P VALUE AS OF SUCH VALUATION DATE OF
          ALL POSTED CREDIT SUPPORT HELD BY THE SECURED PARTY,

          (2) THE AMOUNT BY WHICH (A) THE MOODY'S FIRST COLLATERAL AMOUNT FOR
          SUCH VALUATION DATE EXCEEDS (B) THE MOODY'S FIRST TRIGGER VALUE AS OF
          SUCH VALUATION DATE OF ALL POSTED CREDIT SUPPORT HELD BY THE SECURED
          PARTY, AND

          (3) THE AMOUNT BY WHICH (A) THE MOODY'S SECOND COLLATERAL AMOUNT FOR
          SUCH VALUATION DATE EXCEEDS (B) THE MOODY'S SECOND TRIGGER VALUE AS OF
          SUCH VALUATION DATE OF ALL POSTED CREDIT SUPPORT HELD BY THE SECURED
          PARTY."

                                     Q-3-7

<PAGE>

          (E)  "RETURN AMOUNT" has the meaning specified in Paragraph 3(b),
               except that the sentence beginning "Unless otherwise specified in
               Paragraph 13" and ending "(ii) the Credit Support Amount." shall
               be deleted and replaced by the following:

          "The "Return Amount" applicable to the Secured Party for any Valuation
          Date will equal the least of

          (1) the amount by which (a) the S&P Value as of such Valuation Date of
          all Posted Credit Support held by the Secured Party exceeds (b) the
          S&P Collateral Amount for such Valuation Date,

          (2) the amount by which (a) the Moody's First Trigger Value as of such
          Valuation Date of all Posted Credit Support held by the Secured Party
          exceeds (b) the Moody's First Collateral Amount for such Valuation
          Date, and

          (3) the amount by which (a) the Moody's Second Trigger Value as of
          such Valuation Date of all Posted Credit Support held by the Secured
          Party exceeds (b) the Moody's Second Collateral Amount for such
          Valuation Date."

          (F)  "CREDIT SUPPORT AMOUNT" shall not apply. For purposes of
               calculating any Delivery Amount or Return Amount for any
               Valuation Date, reference shall be made to the S&P Collateral
               Amount, the Moody's First Collateral Amount, or the Moody's
               Second Collateral Amount, in each case for such Valuation Date,
               as provided in Paragraphs 13(b)(i)(A) and 13(b)(i)(B), above.

               The "S&P COLLATERAL AMOUNT" means, for any Valuation Date, zero,
               provided that for so long as a First Rating Trigger Event with
               respect to S&P has occurred and is continuing for at least 30
               days or a Second Rating Trigger Event with respect to S&P has
               occurred and is continuing, the S&P Collateral Amount shall equal
               the sum of (I) Party B's Exposure and (II) the sum, for each
               transaction to which this Annex relates, of the product

                    S&P VOLATILITY BUFFER*HEDGE NOTIONAL, WHERE

               "Hedge Notional" MEANS THE NOTIONAL AMOUNT OF THE RELEVANT
               TRANSACTION FOR THE RELEVANT CALCULATION PERIOD.

                                     Q-3-8

<PAGE>

               "S&P Volatility Buffer" MEANS, FOR ANY TRANSACTION, THE RELATED
               PERCENTAGE SET FORTH IN THE FOLLOWING TABLE.

<TABLE>
<CAPTION>
THE HIGHER OF THE S&P SHORT-TERM CREDIT      REMAINING WEIGHTED   REMAINING WEIGHTED   REMAINING WEIGHTED   REMAINING WEIGHTED
RATING OF (I) PARTY A AND (II) THE CREDIT     AVERAGE MATURITY     AVERAGE MATURITY     AVERAGE MATURITY     AVERAGE MATURITY
SUPPORT PROVIDER OF PARTY A, IF APPLICABLE      UP TO 3 YEARS        UP TO 5 YEARS       UP TO 10 YEARS       UP TO 30 YEARS
------------------------------------------   ------------------   ------------------   ------------------   ------------------
<S>                                          <C>                  <C>                  <C>                  <C>
AT LEAST "A-2"                                      2.75%                3.25%                4.00%               4.75%
"A-3"                                               3.25%                4.00%                5.00%               6.25%
"BB+" OR LOWER                                      3.50%                4.50%                6.75%               7.50%
</TABLE>

               The "MOODY'S FIRST COLLATERAL AMOUNT" means zero, provided that
               for so long as (A) a First Rating Trigger Event with respect to
               Moody's has occurred and is continuing and either (i) such event
               existed at the time this Annex was executed or assigned by Party
               A to another party or (ii) at least 30 Local Business Days have
               elapsed since such event occurred and (B)(i) no Second Rating
               Trigger Event with respect to Moody's has occurred and is
               continuing or (ii) less than 30 Local Business Days have elapsed
               since the occurrence of a Second Rating Trigger Event with
               respect to Moody's, then the Moody's First Collateral Amount
               shall equal the sum of (I) Party B's Exposure and (ii) the sum,
               over all Transactions, of

                    Min [15*DV01, 2%*Hedge Notional]; and

               The "MOODY'S SECOND COLLATERAL AMOUNT" means zero, provided that,
               for so long as a Second Rating Trigger Event WITH RESPECT TO
               MOODY'S has occurred and has been continuing for 30 or more Local
               Business Days, then the Moody's Second Collateral Amount shall
               equal

                    Max [0, Next Payment, Party B's Exposure + Additional
                    Amount], where

               Next Payment = the sum of the net payments due from Party A to
               Party B (if any) on the next payment date for all Transactions.

               Additional Amount = the sum, over all Transactions of

                    (e)  with respect to each Transaction that is a single
                         currency swap with a fixed notional amount for each
                         Calculation Period, Min [50*DV01, 8%* Aggregate Hedge
                         Notional], and

                    (f)  with respect to each Transaction that is not a
                         single-currency swap with a fixed notional amount for
                         each Calculation Period, Min [65*DV01, 10%* Aggregate
                         Hedge Notional], where

                                     Q-3-9

<PAGE>

                         DV01 = Party A's estimate of the change in the
                         mid-market value of Party B's Exposure resulting from a
                         one basis point change in the swap curve, and

                         Aggregate Hedge Notional = the aggregate of the
                         applicable notional amounts of all Transactions for the
                         relevant Calculation Period.

               (ii) ELIGIBLE COLLATERAL. The following items will qualify as
               "Eligible Collateral" for the party specified (for the avoidance
               of doubt, all Eligible Collateral to be denominated in USD):

<TABLE>
<CAPTION>
                                                     S&P Valuation    Moody's Valuation Percentage    Moody's Valuation Percentage
Collateral Type                                        Percentage    at First Trigger Rating Event   at Second Trigger Rating Event
--------------------------------------------------   -------------   -----------------------------   ------------------------------
<S>                                                  <C>             <C>                             <C>
(A) Cash, in the form of USD                              100%                   100%                             100%

(B) Negotiable Debt Obligations (as defined below)       98.9%                   100%                             100%
issued by the Government of the United States of
America having a remaining maturity of not more
than one year.

(C) Negotiable Debt Obligations issued by the            98.0%                   100%                              99%
Government of the United States of America having
a remaining maturity of more than one but not more
than two years.

(D) Negotiable Debt Obligations issued by the            97.4%                   100%                              98%
Government of the United States of America having
a remaining maturity of more than two but not more
than three years.

(E) Negotiable Debt Obligations issued by the            95.5%                   100%                              97%
Government of the United States of America having
a remaining maturity of more than three but not
more than five years.

(F) Negotiable Debt Obligations issued by the            93.7%                   100%                              96%
Government of the United States of America having
a remaining maturity of more than five but not
more than seven years.

(G) Negotiable Debt Obligations issued by the            92.5%                   100%                              94%
Government of the United States of America having
a remaining maturity of more than seven but not
more than ten years.
</TABLE>

                                     Q-3-10

<PAGE>

<TABLE>
<S>                                                  <C>             <C>                             <C>
(H) Negotiable Debt Obligations issued by the            91.1%                   100%                              90%
Government of the United States of America having
a remaining maturity of more than ten but not more
than twenty years.

(I) Negotiable Debt Obligations issued by the            88.6%                   100%                              88%
Government of the United States of America having
a remaining maturity of more than twenty years.
</TABLE>

               As used above, the following terms have the indicated meanings:

                    "NEGOTIABLE DEBT OBLIGATION" means a debt obligation in a
                    stated principal amount with a non-variable fixed maturity,
                    which cannot be redeemed by its issuer before its maturity
                    nor put to the issuer for redemption before its maturity. It
                    must bear interest on its stated principal amount at a
                    non-variable fixed rate until maturity.

               (iii) OTHER ELIGIBLE SUPPORT. The following items will qualify as
               "Other Eligible Support" for the party specified: Not Applicable.

               (iv) THRESHOLDS.

                    (C)  "INDEPENDENT AMOUNT" means with respect to Party A: Not
                         Applicable.

                         "INDEPENDENT AMOUNT" means with respect to Party B: Not
                         Applicable.

                    (D)  "THRESHOLD" means with respect to Party A, infinity,
                         provided that for so long as (1) a First Rating Trigger
                         Event with respect to Moody's has occurred and is
                         continuing and either (i) such First Rating Trigger
                         Event existed at the time this Annex was executed or
                         (ii) at least 30 Local Business days have elapsed since
                         such First Rating Trigger Event occurred, or (2) a
                         First Rating Trigger Event with respect to S&P has
                         occurred and is continuing for at least 30 days or a
                         Second Rating Trigger Event with respect to S&P has
                         occurred and is continuing, the Threshold with respect
                         to Party A shall be zero.

                         "THRESHOLD" means with respect to Party B, infinity.

                    (C)  "MINIMUM TRANSFER AMOUNT" means with respect to Party
                         A: USD 100,000, and with respect to Party B: USD
                         100,000, provided, that if the aggregate principal
                         balance of the Certificates rated by S&P ceases to be
                         more than USD 50,000,000, the "MINIMUM TRANSFER AMOUNT"
                         shall be USD 50,000 and provided further that if a
                         Party is a Defaulting Party, or the Affected Party
                         under an Additional Termination Event, the Minimum
                         Transfer Amount for such party shall be zero.

                                     Q-3-11

<PAGE>

                    (D)  ROUNDING. The Delivery Amount and the Return Amount
                         will be rounded up and down, respectively, to the
                         nearest integral multiple of $10,000.

(g)  (i) EXTERNAL VERIFICATION. Notwithstanding anything to the contrary in the
     definitions of Valuation Agent or Valuation Date, at any time at which
     Party A (or, to the extent applicable, its Credit Support Provider) does
     not have a long-term unsubordinated and unsecured debt rating of at least
     "BBB+" from S&P, the Valuation Agent shall (A) calculate the Secured
     Party's Exposure and the S&P Value (as defined below) of Posted Credit
     Support on each Valuation Date based on internal marks and (B) verify such
     calculations with external marks monthly by obtaining on the last Local
     Business Day of each calendar month two external marks for each Transaction
     to which this Annex relates and for all Posted Credit Support; such
     verification of the Secured Party's Exposure shall be based on the higher
     of the two external marks. Each external mark in respect of a Transaction
     shall be obtained from an independent Reference Market-maker that would be
     eligible and willing to enter into such Transaction in the absence of the
     current derivative provider, provided that an external mark may not be
     obtained from the same Reference Market-maker more than four times in any
     12-month period. The Valuation Agent shall obtain these external marks
     directly or through an independent third party, in either case at no cost
     to Party B. The Valuation Agent shall calculate on each Valuation Date (for
     purposes of this paragraph, the last Local Business Day in each calendar
     month referred to above shall be considered a Valuation Date) the Secured
     Party's Exposure based on the greater of the Valuation Agent's internal
     marks and the external marks received. If the S&P Value on any such
     Valuation Date of all Posted Credit Support then held by the Secured Party
     is less than the S&P Collateral Amount on such Valuation Date (in each case
     as determined pursuant to this paragraph), Party A shall, within three
     Local Business Days of such Valuation Date, Transfer to the Secured Party
     Eligible Credit Support having an S&P Value as of the date of Transfer at
     least equal to such deficiency.

     (ii) NOTICE TO S&P. At any time at which Party A (or, to the extent
     applicable, its Credit Support Provider) does not have a long-term
     unsubordinated and unsecured debt rating of at least "BBB+" from S&P, the
     Valuation Agent shall provide to S&P not later than the Notification Time
     on the Local Business Day following each Valuation Date its calculations of
     the Secured Party's Exposure and the S&P Value of any Eligible Credit
     Support or Posted Credit Support for that Valuation Date. The Valuation
     Agent shall also provide to S&P any external marks received pursuant to the
     preceding paragraph.

(h)  VALUATION AND TIMING.

     (i) "VALUATION AGENT" means Party A.

     (ii) "VALUATION DATE" means: each Local Business Day.

     (iii) "VALUATION TIME" means the close of business on the Local Business
     Day before the Valuation Date or date of calculation, as applicable;
     provided, however, that the calculations of Value and Exposure will be made
     as of approximately the same time on the same date.

     (iv) "NOTIFICATION TIME" means 9:00 a.m., New York time, on a Local
     Business Day.

                                     Q-3-12

<PAGE>

(e)  CONDITIONS PRECEDENT AND SECURED PARTY'S RIGHTS AND REMEDIES. For purposes
     of Paragraph 8(a), each Termination Event will be a "Specified Condition"
     for the Pledgor, if the Secured Party has designated an Early Termination
     Date in connection with the Termination Event. For all other purposes of
     this Annex, each Termination Event specified below with respect to a party
     will be a "Specified Condition" for that party (that party being the
     Affected Party if the Termination Event occurs with respect to that party):

<TABLE>
<CAPTION>
Termination Event                 Party A   Party B
-----------------                 -------   -------
<S>                               <C>       <C>
Illegality                         [N/A]     [N/A]
Tax Event                          [N/A]     [N/A]
Tax Event Upon Merger              [N/A]     [N/A]
Credit Event Upon Merger           [N/A]     [N/A]
Additional Termination Event(s)     [X]       [X]
</TABLE>

(e) SUBSTITUTION.

     (i) "SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

     (ii) CONSENT. The Pledgor shall obtain the Secured Party's consent for any
     substitution pursuant to Paragraph 4(d). Such consent shall not be
     unreasonably withheld.

(f) DISPUTE RESOLUTION.

     (i) "RESOLUTION TIME" means 9:00 a.m., New York time, on the Local Business
     Day following the date on which the notice of the dispute is given by the
     Disputing Party to the other party.

     (ii) VALUE. For the purposes of Paragraphs 5(i)(c) and 5(ii), the Value of
     the outstanding Credit Support Amount or of any transfer of Eligible Credit
     Support or Posted Credit Support other than Cash (the "Non-Cash Credit
     Support") will be calculated as follows: the product of (A) appropriate
     Valuation Percentage and (B) the sum of (I) the mean of the bid prices
     quoted on such date by any three principal market makers for such Non-Cash
     Credit Support chosen by the Disputing Party, or if three such quotations
     are not available from principal market makers for such date, using two
     such quotations, or if only one such quotation is obtained using such
     quotation, or if no quotations are available using the mean of such bid
     prices as of the day, next preceding such date, on which one or more of
     such quotations were available, plus (II) the accrued interest on such
     Non-Cash Credit Support (except to the extent Transferred to a party
     pursuant to this Agreement or included in the applicable price referred to
     in subparagraph (A) of this Clause) as of such date.

     (iii) ALTERNATIVE. The provisions of Paragraph 5 will apply.

(g) HOLDING AND USING POSTED COLLATERAL.

     (i) ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS.

                                     Q-3-13

<PAGE>

     Party B or its Custodian will be entitled to hold Posted Collateral
     pursuant to Paragraph 6(b); provided that the following conditions
     applicable to it are satisfied:

          (A)  In the event that Party B holds Posted Collateral, Party B is not
               a Defaulting Party or an Affected Party under an Additional
               Termination Event.

          (B)  Posted Collateral may be held only in the following jurisdiction:
               New York.

          (C)  In the event that the Custodian holds Posted Collateral, the
               long-term unsubordinated unsecured debt of the Custodian is rated
               at least "A+" and "A-1" by Standard & Poors, a division of The
               McGraw-Hill Companies, Inc. (or any successor thereto) and at
               least "A1" by Moody's Investors Service, Inc. (or any successor
               thereto).

          Initially, the Custodian for Party B is La Salle Bank, National
          Association.

     (ii) USE OF POSTED COLLATERAL. The provisions of Paragraph 6(c)(i) shall
     not apply.

(h) DISTRIBUTIONS AND INTEREST AMOUNT.

     (i) INTEREST RATE. The "Interest Rate" will be the weighted average rate of
     interest earned by the Secured Party in respect of Posted Collateral in the
     form of Cash. Party A directs the Custodian to deposit any Posted
     Collateral that is in the form of Cash into an account that earns interest
     at prevailing rates

     (ii) TRANSFER OF INTEREST AMOUNT. The transfer of the Interest Amount will
     be made on the second Local Business Day of each calendar month in respect
     of the Interest Amount for the preceding calendar month, provided, however,
     that the obligation of Party B to Transfer any Interest Amount to Party A
     shall be limited to the extent that Party B has earned and received such
     funds and such funds are available to Party B.

     (iii) ALTERNATIVE TO INTEREST AMOUNT. Not applicable.

(i) ADDITIONAL REPRESENTATION(S). Not applicable.

(j) OTHER ELIGIBLE SUPPORT AND OTHER POSTED SUPPORT.

     (i) "VALUE" with respect to Other Eligible Support and Other Posted Support
     means: Not applicable.

     (ii) "TRANSFER" with respect to Other Eligible Support and Other Posted
     Support means: Not applicable.

                                     Q-3-14

<PAGE>

(k) DEMANDS AND NOTICES.

     All demands, specifications and notices under this Annex will be made
     pursuant to the Notices Section of this Agreement, unless otherwise
     specified here:

     Party A:

          Global Collateral Support Unit
          The Royal Bank of Scotland plc, Financial Markets
          280 Bishopsgate
          London EC2M 4RB
          Facsimile: 44.207 085 4793
          Telephone: 44.207 085 5209

          With a copy to:

          600 Steamboat Road
          Greenwich CT 06830
          Attn: Derivatives Settlements
          Telephone: 203-618-2781 (Rob Bache)
                     203-618-2440 (Operations main number)
          Facsimile: 203-618-2579

     Party B:

          135 S. LaSalle St. // Suite 1625
          Chicago, IL 60603
          Attn.: Kathryn Hawkinson, MLMI 2007 HE1
          Tel: 312-904-6561
          Fax: 312-904-2084

(l) ADDRESS FOR TRANSFERS. All transfers hereunder will be made to the account
or accounts most recently notified by each party to the other.

(m) OTHER PROVISIONS.

     (i) SINGLE TRANSFEROR AND SINGLE TRANSFEREE. Party A and Party B hereby
     agree that, notwithstanding anything to the contrary in this Annex, (a) the
     term "Secured Party" as used in this Annex means only Party B, (b) the term
     "Pledgor" as used in this Annex means only Party A, (c) only Party A makes
     the pledge and grant in Paragraph 2, the acknowledgement in the final
     sentence of Paragraph 8(a) and the representations in Paragraph 9.

     (ii) EVENTS OF DEFAULT. Paragraph 7 will not apply to cause any Event of
     Default to exist with respect to Party B except that Paragraph 7(i) will
     apply to Party B solely in respect of Party B's obligations under Paragraph
     3(b) of the Credit Support Annex. Notwithstanding anything to the contrary
     in Paragraph 7, any failure by Party A to comply with or perform any
     obligation to be complied with or performed by Party A under the Credit
     Support Annex shall only be an Event of Default if (A) Second Rating
     Trigger Event with respect to S&P has occurred and been continuing or

                                     Q-3-15

<PAGE>

     (B) a Second Rating Trigger Event with respect to Moody's has occurred and
     been continuing for 30 or more Local Business Days and such failure is not
     remedied on or before the third Local Business Day after notice of such
     failure is given to Party A.

     (iii) FORM OF ANNEX. Party A and Party B hereby agree that the text of
     Paragraphs 1 through 12, inclusive, of this Annex is intended to be the
     printed form of ISDA Credit Support Annex (Bilateral Form - ISDA Agreements
     Subject to New York Law Only version) as published and copyrighted in 1994
     by the International Swaps and Derivatives Association, Inc.

     (iv) EXPENSES. Notwithstanding anything to the contrary in Paragraph 10,
     the Pledgor will be responsible for, and will reimburse the Secured Party
     for, all transfer and other taxes and other costs involved in any Transfer
     of Eligible Collateral.

     (v) WITHHOLDING. Paragraph 6(d)(ii) is hereby amended by inserting
     immediately after "the Interest Amount" in the fourth line thereof the
     words "less any applicable withholding taxes."

     (vi) "LOCAL BUSINESS DAY" means, for purposes of the Credit Support Annex,
     any day on which (A) commercial banks are open for business (including
     dealings in foreign exchange and foreign currency deposits) in New York and
     the location of Party A, Party B and any Custodian, and (B) in relation to
     a Transfer of Eligible Collateral, any day on which the clearance system
     agreed between the parties for the delivery of Eligible Collateral is open
     for acceptance and execution of settlement instructions (or in the case of
     a Transfer of Cash or other Eligible Collateral for which delivery is
     contemplated by other means a day on which commercial banks are open for
     business (including dealings in foreign exchange and foreign deposits) in
     New York and the location of Party A, Party B and any Custodian.

     (vii) CALCULATION OF VALUE. Paragraph 4(c) is hereby amended by deleting
     the word "Value" and inserting in lieu thereof "S&P Value, Moody's First
     Trigger Value, Moody's Second Trigger Value". Paragraph 4(d)(ii) is hereby
     amended by (A) deleting the words "a Value" and inserting in lieu thereof
     "an S&P Value, Moody's First Trigger Value, and Moody's Second Trigger
     Value" and (B) deleting the words "the Value" and inserting in lieu thereof
     "S&P Value, Moody's First Trigger Value, and Moody's Second Trigger Value".
     Paragraph 5 (flush language) is hereby amended by deleting the word "Value"
     and inserting in lieu thereof "S&P Value, Moody's First Trigger Value, or
     Moody's Second Trigger Value". Paragraph 5(i) (flush language) is hereby
     amended by deleting the word "Value" and inserting in lieu thereof "S&P
     Value, Moody's First Trigger Value, and Moody's Second Trigger Value".
     Paragraph 5(i)(C) is hereby amended by deleting the word "the Value, if"
     and inserting in lieu thereof "any one or more of the S&P Value, Moody's
     First Trigger Value, or Moody's Second Trigger Value, as may be". Paragraph
     5(ii) is hereby amended by (1) deleting the first instance of the words
     "the Value" and inserting in lieu thereof "any one or more of the S&P
     Value, Moody's First Trigger Value, or Moody's Second Trigger Value" and
     (2) deleting the second instance of the words "the Value" and inserting in
     lieu thereof "such disputed S&P Value, Moody's First Trigger Value, or
     Moody's Second Trigger Value". Each of Paragraph 8(b)(iv)(B) and Paragraph
     11(a) is hereby amended by deleting the word "Value" and inserting in lieu
     thereof "least of the S&P Value, Moody's First Trigger Value, and Moody's
     Second Trigger Value".

     (viii) "MOODY'S FIRST TRIGGER VALUE" means, on any date and with respect to
     any Eligible Collateral other than Cash, the bid price obtained by the
     Valuation Agent multiplied by the Moody's First Trigger Valuation
     Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

                                     Q-3-16

<PAGE>

     (ix) "MOODY'S SECOND TRIGGER VALUE" means, on any date and with respect to
     any Eligible Collateral other than Cash, the bid price obtained by the
     Valuation Agent multiplied by the Moody's Second Trigger Valuation
     Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

     (x) "S&P VALUE" means, on any date and with respect to any Eligible
     Collateral other than Cash, the product of (A) the bid price obtained by
     the Valuation Agent for such Eligible Collateral and (B) the S&P Valuation
     Percentage for such Eligible Collateral set forth in paragraph 13(b)(ii).

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

                                     Q-3-17

<PAGE>

THE ROYAL BANK OF SCOTLAND PLC          La Salle Bank, National Association, not
                                        individually, but solely as supplemental
By: Greenwich Capital Markets, Inc.,    interest trust trustee for the
its agent                               Supplemental Interest Trust with respect
                                        to Merrill Lynch Mortgage Investors
                                        Trust, Series 2007-HE1
By
   ----------------------------------
Name:                                   By
      -------------------------------      -------------------------------------
Title:                                  Name:
       ------------------------------         ----------------------------------
                                        Title:
                                               ---------------------------------

                                     Q-3-18

<PAGE>

                                  EXHIBIT Q-4

      FORM OF ISDA MASTER AGREEMENT AND SCHEDULE RELATING TO CAP AND SWAP

(MULTICURRENCY--CROSS BORDER)

                                    ISDA(R)
              International Swap and Derivatives Association, Inc.

                                MASTER AGREEMENT

                           dated as of March 8, 2007

THE ROYAL BANK OF SCOTLAND PLC    and   LA SALLE BANK, NATIONAL ASSOCIATION, NOT
                                        INDIVIDUALLY, BUT SOLELY AS SUPPLEMENTAL
                                        INTEREST TRUST TRUSTEE FOR THE
                                        SUPPLEMENTAL INTEREST TRUST WITH RESPECT
                                        TO MERRILL LYNCH MORTGAGE INVESTORS
                                        TRUST, SERIES 2007-HE1

-------------------------------------   ----------------------------------------
("PARTY A")                             ("PARTY B")

have entered and/or anticipate entering into one or more transactions (each a
"Transaction") that are or will be governed by this Master Agreement, which
includes the schedule (the "Schedule"), and the documents and other confirming
evidence (each a "Confirmation") exchanged between the parties confirming those
Transactions.

Accordingly, the parties agree as follows:--

1.   INTERPRETATION

(b) DEFINITIONS. The terms defined in Section 14 and in the Schedule will have
the meanings therein specified for the purpose of this Master Agreement.

(b) INCONSISTENCY. In the event of any inconsistency between the provisions of
the Schedule and the other provisions of this Master Agreement, the Schedule
will prevail. In the event of any inconsistency between the provisions of any
Confirmation and this Master Agreement (including the Schedule), such
Confirmation will prevail for the purpose of the relevant Transaction.

(c) SINGLE AGREEMENT. All Transactions are entered into in reliance on the fact
that this Master Agreement and all Confirmations form a single agreement between
the parties (collectively referred to as this "Agreement"), and the parties
would not otherwise enter into any Transactions.

2.   OBLIGATIONS

(a)  GENERAL CONDITIONS.

     (i) Each party will make each payment or delivery specified in each
     Confirmation to be made by it, subject to the other provisions of this
     Agreement.

                                     Q-4-1

<PAGE>

     (ii) Payments under this Agreement will be made on the due date for value
     on that date in the place of the account specified in the relevant
     Confirmation or otherwise pursuant to this Agreement, in freely
     transferable funds and in the manner customary for payments in the required
     currency. Where settlement is by delivery (that is, other than by payment),
     such delivery will be made for receipt on the due date in the manner
     customary for the relevant obligation unless otherwise specified in the
     relevant Confirmation or elsewhere in this Agreement.

     (iii) Each obligation of each party under Section 2(a)(i) is subject to (1)
     the condition precedent that no Event of Default or Potential Event of
     Default with respect to the other party has occurred and is continuing, (2)
     the condition precedent that no Early Termination Date in respect of the
     relevant Transaction has occurred or been effectively designated and (3)
     each other applicable condition precedent specified in this Agreement.

   Copyright (C) 1992 by International Swap and Derivatives Association, Inc.

(b) CHANGE OF ACCOUNT. Either party may change its account for receiving a
payment or delivery by giving notice to the other party at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a reasonable
objection to such change.

(c) NETTING. If on any date amounts would otherwise be payable:--

     (i)  in the same currency; and

     (ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party's obligation to make
payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by one party
exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate
amount would have been payable to pay to the other party the excess of the
larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount
will be determined in respect of all amounts payable on the same date in the
same currency in respect of such Transactions, regardless of whether such
amounts are payable in respect of the same Transaction. The election may be made
in the Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election,
together with the starting date (in which case subparagraph (ii) above will not,
or will cease to, apply to such Transactions from such date). This election may
be made separately for different groups of Transactions and will apply
separately to each pairing of Offices through which the parties make and receive
payments or deliveries.

(d)  DEDUCTION OR WITHHOLDING FOR TAX.

     (i) GROSS-UP. All payments under this Agreement will be made without any
     deduction or withholding for or on account of any Tax unless such deduction
     or withholding is required by any applicable law, as modified by the
     practice of any relevant governmental revenue authority, then in effect. If
     a party is so required to deduct or withhold, then that party ("X") will:--

          (1) promptly notify the other party ("Y") of such requirement;

          (2) pay to the relevant authorities the full amount required to be
          deducted or withheld (including the full amount required to be
          deducted or withheld from any additional amount paid by X to Y under
          this Section 2(d)) promptly upon the earlier of determining that such
          deduction or withholding is required or receiving notice that such
          amount has been assessed against Y;

                                     Q-4-2

<PAGE>

          (3) promptly forward to Y an official receipt (or a certified copy),
          or other documentation reasonably acceptable to Y, evidencing such
          payment to such authorities; and

          (4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the
          payment to which Y is otherwise entitled under this Agreement, such
          additional amount as is necessary to ensure that the net amount
          actually received by Y (free and clear of Indemnifiable Taxes, whether
          assessed against X or Y) will equal the full amount Y would have
          received had no such deduction or withholding been required. However,
          X will not be required to pay any additional amount to Y to the extent
          that it would not be required to be paid but for:--

               (A) the failure by Y to comply with or perform any agreement
               contained in Section 4(a)(i), 4(a)(iii) or 4(d); or

               (B) the failure of a representation made by Y pursuant to Section
               3(f) to be accurate and true unless such failure would not have
               occurred but for (I) any action taken by a taxing authority, or
               brought in a court of competent jurisdiction, on or after the
               date on which a Transaction is entered into (regardless of
               whether such action is taken or brought with respect to a party
               to this Agreement) or (II) a Change in Tax Law.

     (ii) LIABILITY. If:--

          (1) X is required by any applicable law, as modified by the practice
          of any relevant governmental revenue authority, to make any deduction
          or withholding in respect of which X would not be required to pay an
          additional amount to Y under Section 2(d)(i)(4);

          (2) X does not so deduct or withhold; and

          (3) a liability resulting from such Tax is assessed directly against
          X,

     then, except to the extent Y has satisfied or then satisfies the liability
     resulting from such Tax, Y will promptly pay to X the amount of such
     liability (including any related liability for interest, but including any
     related liability for penalties only if Y has failed to comply with or
     perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

(e) DEFAULT INTEREST; OTHER AMOUNTS. Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant Transaction,
a party that defaults in the performance of any payment obligation will, to the
extent permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on
demand in the same currency as such overdue amount, for the period from (and
including) the original due date for payment to (but excluding) the date of
actual payment, at the Default Rate. Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed. If, prior to
the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party defaults in the performance of any
obligation required to be settled by delivery, it will compensate the other
party on demand if and to the extent provided for in the relevant Confirmation
or elsewhere in this Agreement.

3.   REPRESENTATIONS

Each party represents to the other party (which representations will be deemed
to be repeated by each party on each date on which a Transaction is entered into
and, in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that:--

(a)  BASIC REPRESENTATIONS.

     (i) STATUS. It is duly organised and validly existing under the laws of the
     jurisdiction of its organisation or incorporation and, if relevant under
     such laws, in good standing;

     (ii) POWERS. It has the power to execute this Agreement and any other
     documentation relating to

                                     Q-4-3

<PAGE>

     this Agreement to which it is a party, to deliver this Agreement and any
     other documentation relating to this Agreement that it is required by this
     Agreement to deliver and to perform its obligations under this Agreement
     and any obligations it has under any Credit Support Document to which it is
     a party and has taken all necessary action to authorise such execution,
     delivery and performance;

     (iii) NO VIOLATION OR CONFLICT. Such execution, delivery and performance do
     not violate or conflict with any law applicable to it, any provision of its
     constitutional documents, any order or judgment of any court or other
     agency of government applicable to it or any of its assets or any
     contractual restriction binding on or affecting it or any of its assets;

     (iv) CONSENTS. All governmental and other consents that are required to
     have been obtained by it with respect to this Agreement or any Credit
     Support Document to which it is a party have been obtained and are in full
     force and effect and all conditions of any such consents have been complied
     with; and

     (v) OBLIGATIONS BINDING. Its obligations under this Agreement and any
     Credit Support Document to which it is a party constitute its legal, valid
     and binding obligations, enforceable in accordance with their respective
     terms (subject to applicable bankruptcy, reorganisation, insolvency,
     moratorium or similar laws affecting creditors' rights generally and
     subject, as to enforceability, to equitable principles of general
     application (regardless of whether enforcement is sought in a proceeding in
     equity or at law)).

(b) ABSENCE OF CERTAIN EVENTS. No Event of Default or Potential Event of Default
or, to its knowledge, Termination Event with respect to it has occurred and is
continuing and no such event or circumstance would occur as a result of its
entering into or performing its obligations under this Agreement or any Credit
Support Document to which it is a party.

(c) ABSENCE OF LITIGATION. There is not pending or, to its knowledge, threatened
against it or any of its Affiliates any action, suit or proceeding at law or in
equity or before any court, tribunal, governmental body, agency or official or
any arbitrator that is likely to affect the legality, validity or enforceability
against it of this Agreement or any Credit Support Document to which it is a
party or its ability to perform its obligations under this Agreement or such
Credit Support Document.

(d) ACCURACY OF SPECIFIED INFORMATION. All applicable information that is
furnished in writing by or on behalf of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

(e) PAYER TAX REPRESENTATION. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(e) is accurate and true.

(f) PAYEE TAX REPRESENTATIONS. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(f) is accurate and true.

4.   AGREEMENTS

Each party agrees with the other that, so long as either party has or may have
any obligation under this Agreement or under any Credit Support Document to
which it is a party:--

(a) FURNISH SPECIFIED INFORMATION. It will deliver to the other party or, in
certain cases under subparagraph (iii) below, to such government or taxing
authority as the other party reasonably directs:--

     (i) any forms, documents or certificates relating to taxation specified in
     the Schedule or any Confirmation;

     (ii) any other documents specified in the Schedule or any Confirmation; and

     (iii) upon reasonable demand by such other party, any form or document that
     may be required or reasonably requested in writing in order to allow such
     other party or its Credit Support Provider to

                                     Q-4-4

<PAGE>

     make a payment under this Agreement or any applicable Credit Support
     Document without any deduction or withholding for or on account of any Tax
     or with such deduction or withholding at a reduced rate (so long as the
     completion, execution or submission of such form or document would not
     materially prejudice the legal or commercial position of the party in
     receipt of such demand), with any such form or document to be accurate and
     completed in a manner reasonably satisfactory to such other party and to be
     executed and to be delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if
none is specified, as soon as reasonably practicable.

(b) MAINTAIN AUTHORISATIONS. It will use all reasonable efforts to maintain in
full force and effect all consents of any governmental or other authority that
are required to be obtained by it with respect to this Agreement or any Credit
Support Document to which it is a party and will use all reasonable efforts to
obtain any that may become necessary in the future.

(c) COMPLY WITH LAWS. It will comply in all material respects with all
applicable laws and orders to which it may be subject if failure so to comply
would materially impair its ability to perform its obligations under this
Agreement or any Credit Support Document to which it is a party.

(d) TAX AGREEMENT. It will give notice of any failure of a representation made
by it under Section 3(f) to be accurate and true promptly upon learning of such
failure.

(e) PAYMENT OF STAMP TAX. Subject to Section 11, it will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or performance of this
Agreement by a jurisdiction in which it is incorporated,

organised, managed and controlled, or considered to have its seat, or in which a
branch or office through which it is acting for the purpose of this Agreement is
located ("Stamp Tax Jurisdiction") and will indemnify the other party against
any Stamp Tax levied or imposed upon the other party or in respect of the other
party's execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the
other party.

5.   EVENTS OF DEFAULT AND TERMINATION EVENTS

(a) EVENTS OF DEFAULT. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of
such party of any of the following events constitutes an event of default (an
"Event of Default") with respect to such party:--

     (i) FAILURE TO PAY OR DELIVER. Failure by the party to make, when due, any
     payment under this Agreement or delivery under Section 2(a)(i) or 2(e)
     required to be made by it if such failure is not remedied on or before the
     third Local Business Day after notice of such failure is given to the
     party;

     (ii) BREACH OF AGREEMENT. Failure by the party to comply with or perform
     any agreement or obligation (other than an obligation to make any payment
     under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give
     notice of a Termination Event or any agreement or obligation under Section
     4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party
     in accordance with this Agreement if such failure is not remedied on or
     before the thirtieth day after notice of such failure is given to the
     party;

     (iii) CREDIT SUPPORT DEFAULT.

          (1) Failure by the party or any Credit Support Provider of such party
          to comply with or perform any agreement or obligation to be complied
          with or performed by it in accordance with any Credit Support Document
          if such failure is continuing after any applicable grace period has
          elapsed;

          (2) the expiration or termination of such Credit Support Document or
          the failing or ceasing of such Credit Support Document to be in full
          force and effect for the purpose of this Agreement (in

                                     Q-4-5

<PAGE>

          either case other than in accordance with its terms) prior to the
          satisfaction of all obligations of such party under each Transaction
          to which such Credit Support Document relates without the written
          consent of the other party; or

          (3) the party or such Credit Support Provider disaffirms, disclaims,
          repudiates or rejects, in whole or in part, or challenges the validity
          of, such Credit Support Document;

     (iv) MISREPRESENTATION. A representation (other than a representation under
     Section 3(e) or (f)) made or repeated or deemed to have been made or
     repeated by the party or any Credit Support Provider of such party in this
     Agreement or any Credit Support Document proves to have been incorrect or
     misleading in any material respect when made or repeated or deemed to have
     been made or repeated;

     (v) DEFAULT UNDER SPECIFIED TRANSACTION. The party, any Credit Support
     Provider of such party or any applicable Specified Entity of such party (1)
     defaults under a Specified Transaction and, after giving effect to any
     applicable notice requirement or grace period, there occurs a liquidation
     of, an acceleration of obligations under, or an early termination of, that
     Specified Transaction, (2) defaults, after giving effect to any applicable
     notice requirement or grace period, in making any payment or delivery due
     on the last payment, delivery or exchange date of, or any payment on early
     termination of, a Specified Transaction (or such default continues for at
     least three Local Business Days if there is no applicable notice
     requirement or grace period) or (3) disaffirms, disclaims, repudiates or
     rejects, in whole or in part, a Specified Transaction (or such action is
     taken by any person or entity appointed or empowered to operate it or act
     on its behalf);

     (vi) CROSS DEFAULT. If "Cross Default" is specified in the Schedule as
     applying to the party, the occurrence or existence of (1) a default, event
     of default or other similar condition or event (however

                                     Q-4-6

<PAGE>

     described) in respect of such party, any Credit Support Provider of such
     party or any applicable Specified Entity of such party under one or more
     agreements or instruments relating to Specified Indebtedness of any of them
     (individually or collectively) in an aggregate amount of not less than the
     applicable Threshold Amount (as specified in the Schedule) which has
     resulted in such Specified Indebtedness becoming, or becoming capable at
     such time of being declared, due and payable under such agreements or
     instruments, before it would otherwise have been due and payable or (2) a
     default by such party, such Credit Support Provider or such Specified
     Entity (individually or collectively) in making one or more payments on the
     due date thereof in an aggregate amount of not less than the applicable
     Threshold Amount under such agreements or instruments (after giving effect
     to any applicable notice requirement or grace period);

     (vii) BANKRUPTCY. The party, any Credit Support Provider of such party or
     any applicable Specified Entity of such party:--

          (1) is dissolved (other than pursuant to a consolidation, amalgamation
          or merger); (2) becomes insolvent or is unable to pay its debts or
          fails or admits in writing its inability generally to pay its debts as
          they become due; (3) makes a general assignment, arrangement or
          composition with or for the benefit of its creditors; (4) institutes
          or has instituted against it a proceeding seeking a judgment of
          insolvency or bankruptcy or any other relief under any bankruptcy or
          insolvency law or other similar law affecting creditors' rights, or a
          petition is presented for its winding-up or liquidation, and, in the
          case of any such proceeding or petition instituted or presented
          against it, such proceeding or petition (A) results in a judgment of
          insolvency or bankruptcy or the entry of an order for relief or the
          making of an order for its winding-up or liquidation or (B) is not
          dismissed, discharged, stayed or restrained in each case within 30
          days of the institution or presentation thereof; (5) has a resolution
          passed for its winding-up, official management or liquidation (other
          than pursuant to a consolidation, amalgamation or merger); (6) seeks
          or becomes subject to the appointment of an administrator, provisional
          liquidator, conservator, receiver, trustee, custodian or other similar
          official for it or for all or substantially all its assets; (7) has a
          secured party take possession of all or substantially all its assets
          or has a distress, execution, attachment, sequestration or other legal
          process levied, enforced or sued on or against all or substantially
          all its assets and such secured party maintains possession, or any
          such process is not dismissed, discharged, stayed or restrained, in
          each case within 30 days thereafter; (8) causes or is subject to any
          event with respect to it which, under the applicable laws of any
          jurisdiction, has an analogous effect to any of the events specified
          in clauses (1) to (7) (inclusive); or (9) takes any action in
          furtherance of, or indicating its consent to, approval of, or
          acquiescence in, any of the foregoing acts; or

     (viii) MERGER WITHOUT ASSUMPTION. The party or any Credit Support Provider
     of such party consolidates or amalgamates with, or merges with or into, or
     transfers all or substantially all its assets to, another entity and, at
     the time of such consolidation, amalgamation, merger or transfer:--

          (1) the resulting, surviving or transferee entity fails to assume all
          the obligations of such party or such Credit Support Provider under
          this Agreement or any Credit Support Document to which it or its
          predecessor was a party by operation of law or pursuant to an
          agreement reasonably satisfactory to the other party to this
          Agreement; or

                                     Q-4-7

<PAGE>

          (2) the benefits of any Credit Support Document fail to extend
          (without the consent of the other party) to the performance by such
          resulting, surviving or transferee entity of its obligations under
          this Agreement.

(b) TERMINATION EVENTS. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any event specified below constitutes an Illegality if the
event is specified in (i) below, a Tax Event if the event is specified in (ii)
below or a Tax Event Upon Merger if the event is specified in (iii) below, and,
if specified to be applicable, a Credit Event

Upon Merger if the event is specified pursuant to (iv) below or an Additional
Termination Event if the event is specified pursuant to (v) below:--

     (i) ILLEGALITY. Due to the adoption of, or any change in, any applicable
     law after the date on which a Transaction is entered into, or due to the
     promulgation of, or any change in, the interpretation by any court,
     tribunal or regulatory authority with competent jurisdiction of any
     applicable law after such date, it becomes unlawful (other than as a result
     of a breach by the party of Section 4(b)) for such party (which will be the
     Affected Party):--

          (1) to perform any absolute or contingent obligation to make a payment
          or delivery or to receive a payment or delivery in respect of such
          Transaction or to comply with any other material provision of this
          Agreement relating to such Transaction; or

          (2) to perform, or for any Credit Support Provider of such party to
          perform, any contingent or other obligation which the party (or such
          Credit Support Provider) has under any Credit Support Document
          relating to such Transaction;

     (ii) TAX EVENT. Due to (x) any action taken by a taxing authority, or
     brought in a court of competent jurisdiction, on or after the date on which
     a Transaction is entered into (regardless of whether such action is taken
     or brought with respect to a party to this Agreement) or (y) a Change in
     Tax Law, the party (which will be the Affected Party) will, or there is a
     substantial likelihood that it will, on the next succeeding Scheduled
     Payment Date (1) be required to pay to the other party an additional amount
     in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in
     respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a
     payment from which an amount is required to be deducted or withheld for or
     on account of a Tax (except in respect of interest under Section 2(e),
     6(d)(ii) or 6(e)) and no additional amount is required to be paid in
     respect of such Tax under Section 2(d)(i)(4) (other than by reason of
     Section 2(d)(i)(4)(A) or (B));

     (iii) TAX EVENT UPON MERGER. The party (the "Burdened Party") on the next
     succeeding Scheduled Payment Date will either (1) be required to pay an
     additional amount in respect of an Indemnifiable Tax under Section
     2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or
     6(e)) or (2) receive a payment from which an amount has been deducted or
     withheld for or on account of any Indemnifiable Tax in respect of which the
     other party is not required to pay an additional amount (other than by
     reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a
     party consolidating or amalgamating with, or merging with or into, or
     transferring all or substantially all its assets to, another entity (which
     will be the Affected Party) where such action does not constitute an event
     described in Section 5(a)(viii);

     (iv) CREDIT EVENT UPON MERGER. If "Credit Event Upon Merger" is specified
     in the Schedule as applying to the party, such party ("X"), any Credit
     Support Provider of X or any applicable Specified Entity of X consolidates
     or amalgamates with, or merges with or into, or transfers all or
     substantially all its assets to, another entity and such action does not
     constitute an event described in Section 5(a)(viii) but the
     creditworthiness of the resulting, surviving or transferee entity is
     materially weaker than that of X, such Credit Support Provider or such
     Specified Entity, as the case may be, immediately prior to such action

                                     Q-4-8

<PAGE>

     (and, in such event, X or its successor or transferee, as appropriate, will
     be the Affected Party); or

     (v) ADDITIONAL TERMINATION EVENT. If any "Additional Termination Event" is
     specified in the Schedule or any Confirmation as applying, the occurrence
     of such event (and, in such event, the Affected Party or Affected Parties
     shall be as specified for such Additional Termination Event in the Schedule
     or such Confirmation).

(c) EVENT OF DEFAULT AND ILLEGALITY. If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an Event
of Default.

6.   EARLY TERMINATION

(a) RIGHT TO TERMINATE FOLLOWING EVENT OF DEFAULT. If at any time an Event of
Default with respect to a party (the "Defaulting Party") has occurred and is
then continuing, the other party (the "Non-defaulting Party") may, by not more
than 20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If, however,
"Automatic Early Termination" is specified in the Schedule as applying to a
party, then an Early Termination Date in respect of all outstanding Transactions
will occur immediately upon the occurrence with respect to such party of an
Event of Default specified in Section 5(a)(vii)(l), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

     (i) NOTICE. If a Termination Event occurs, an Affected Party will, promptly
     upon becoming aware of it, notify the other party, specifying the nature of
     that Termination Event and each Affected Transaction and will also give
     such other information about that Termination Event as the other party may
     reasonably require.

     (ii) TRANSFER TO AVOID TERMINATION EVENT. If either an Illegality under
     Section 5(b)(i)(l) or a Tax Event occurs and there is only one Affected
     Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the
     Affected Party, the Affected Party will, as a condition to its right to
     designate an Early Termination Date under Section 6(b)(iv), use all
     reasonable efforts (which will not require such party to incur a loss,
     excluding immaterial, incidental expenses) to transfer within 20 days after
     it gives notice under Section 6(b)(i) all its rights and obligations under
     this Agreement in respect of the Affected Transactions to another of its
     Offices or Affiliates so that such Termination Event ceases to exist.

     If the Affected Party is not able to make such a transfer it will give
     notice to the other party to that effect within such 20 day period,
     whereupon the other party may effect such a transfer within 30 days after
     the notice is given under Section 6(b)(i).

     Any such transfer by a party under this Section 6(b)(ii) will be subject to
     and conditional upon the prior written consent of the other party, which
     consent will not be withheld if such other party's policies in effect at
     such time would permit it to enter into transactions with the transferee on
     the terms proposed.

     (iii) TWO AFFECTED PARTIES. If an Illegality under Section 5(b)(i)( 1) or a
     Tax Event occurs and there are two Affected Parties, each party will use
     all reasonable efforts to reach agreement within 30 days after notice
     thereof is given under Section 6(b)(i) on action to avoid that Termination
     Event.

                                     Q-4-9

<PAGE>

     (iv) RIGHT TO TERMINATE. If:--

          (1) a transfer under Section 6(b)(ii) or an agreement under Section
          6(b)(iii), as the case may be, has not been effected with respect to
          all Affected Transactions within 30 days after an Affected Party gives
          notice under Section 6(b)(i); or

          (2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger
          or an Additional Termination Event occurs, or a Tax Event Upon Merger
          occurs and the Burdened Party is not the Affected Party,

     either party in the case of an Illegality, the Burdened Party in the case
     of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event
     or an Additional Termination Event if there is more than one Affected
     Party, or the party which is not the Affected Party in the case of a Credit
     Event Upon Merger or an Additional Termination Event if there is only one
     Affected Party may, by not more than 20 days notice to the other party and
     provided that the relevant Termination Event is then

     continuing, designate a day not earlier than the day such notice is
     effective as an Early Termination Date in respect of all Affected
     Transactions.

(c) EFFECT OF DESIGNATION.

     (i) If notice designating an Early Termination Date is given under Section
     6(a) or (b), the Early Termination Date will occur on the date so
     designated, whether or not the relevant Event of Default or Termination
     Event is then continuing.

     (ii) Upon the occurrence or effective designation of an Early Termination
     Date, no further payments or deliveries under Section 2(a)(i) or 2(e) in
     respect of the Terminated Transactions will be required to be made, but
     without prejudice to the other provisions of this Agreement. The amount, if
     any, payable in respect of an Early Termination Date shall be determined
     pursuant to Section 6(e).

(d) CALCULATIONS.

     (i) STATEMENT. On or as soon as reasonably practicable following the
     occurrence of an Early Termination Date, each party will make the
     calculations on its part, if any, contemplated by Section 6(e) and will
     provide to the other party a statement (1) showing, in reasonable detail,
     such calculations (including all relevant quotations and specifying any
     amount payable under Section 6(e)) and (2) giving details of the relevant
     account to which any amount payable to it is to be paid. In the absence of
     written confirmation from the source of a quotation obtained in determining
     a Market Quotation, the records of the party obtaining such quotation will
     be conclusive evidence of the existence and accuracy of such quotation.

     (ii) PAYMENT DATE. An amount calculated as being due in respect of any
     Early Termination Date under Section 6(e) will be payable on the day that
     notice of the amount payable is effective (in the case of an Early
     Termination Date which is designated or occurs as a result of an Event of
     Default) and on the day which is two Local Business Days after the day on
     which notice of the amount payable is effective (in the case of an Early
     Termination Date which is designated as a result of a Termination Event).
     Such amount will be paid together with (to the extent permitted under
     applicable law) interest thereon (before as well as after judgment) in the
     Termination Currency, from (and including) the relevant Early Termination
     Date to (but excluding) the date such amount is paid, at the Applicable
     Rate. Such interest will be calculated on the basis of daily compounding
     and the actual number of days elapsed.

(e) PAYMENTS ON EARLY TERMINATION. If an Early Termination Date occurs, the
following provisions shall apply based on the parties' election in the Schedule
of a payment measure, either "Market Quotation" or "Loss", and a payment method,
either the "First Method" or the "Second Method". If the parties fail to

                                     Q-4-10

<PAGE>

designate a payment measure or payment method in the Schedule, it will be deemed
that "Market Quotation" or the "Second Method", as the case may be, shall apply.
The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off.

     (i) EVENTS OF DEFAULT. If the Early Termination Date results from an Event
     of Default:--

          (1) First Method and Market Quotation. If the First Method and Market
          Quotation apply, the Defaulting Party will pay to the Non-defaulting
          Party the excess, if a positive number, of (A) the sum of the
          Settlement Amount (determined by the Non-defaulting Party) in respect
          of the Terminated Transactions and the Termination Currency Equivalent
          of the Unpaid Amounts owing to the Non-defaulting Party over (B) the
          Termination Currency Equivalent of the Unpaid Amounts owing to the
          Defaulting Party.

          (2) First Method and Loss. If the First Method and Loss apply, the
          Defaulting Party will pay to the Non-defaulting Party, if a positive
          number, the Non-defaulting Party's Loss in respect of this Agreement.

          (3) Second Method and Market Quotation. If the Second Method and
          Market Quotation apply, an amount will be payable equal to (A) the sum
          of the Settlement Amount (determined by the

          Non-defaulting Party) in respect of the Terminated Transactions and
          the Termination Currency Equivalent of the Unpaid Amounts owing to the
          Non-defaulting Party less (B) the Termination Currency Equivalent of
          the Unpaid Amounts owing to the Defaulting Party. If that amount is a
          positive number, the Defaulting Party will pay it to the
          Non-defaulting Party; if it is a negative number, the Non-defaulting
          Party will pay the absolute value of that amount to the Defaulting
          Party.

          (4) Second Method and Loss. If the Second Method and Loss apply, an
          amount will be payable equal to the Non-defaulting Party's Loss in
          respect of this Agreement. If that amount is a positive number, the
          Defaulting Party will pay it to the Non-defaulting Party; if it is a
          negative number, the Non-defaulting Party will pay the absolute value
          of that amount to the Defaulting Party.

     (ii) TERMINATION EVENTS. If the Early Termination Date results from a
     Termination Event:--

          (1) One Affected Party. If there is one Affected Party, the amount
          payable will be determined in accordance with Section 6(e)(i)(3), if
          Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
          except that, in either case, references to the Defaulting Party and to
          the Non-defaulting Party will be deemed to be references to the
          Affected Party and the party which is not the Affected Party,
          respectively, and, if Loss applies and fewer than all the Transactions
          are being terminated, Loss shall be calculated in respect of all
          Terminated Transactions.

          (2) Two Affected Parties. If there are two Affected Parties:--

               (A) if Market Quotation applies, each party will determine a
               Settlement Amount in respect of the Terminated Transactions, and
               an amount will be payable equal to (I) the sum of (a) one-half of
               the difference between the Settlement Amount of the party with
               the higher Settlement Amount ("X") and the Settlement Amount of
               the party with the lower Settlement Amount ("Y") and (b) the
               Termination Currency Equivalent of the Unpaid Amounts owing to X
               less (II) the Termination Currency Equivalent of the Unpaid
               Amounts owing to Y; and

               (B) if Loss applies, each party will determine its Loss in
               respect of this Agreement (or, if fewer than all the Transactions
               are being terminated, in respect of all Terminated Transactions)
               and an amount will be payable equal to one-half of the difference
               between the Loss of the party with the higher Loss ("X") and the
               Loss of the party with the lower Loss

                                     Q-4-11

<PAGE>

               ("Y").

     If the amount payable is a positive number, Y will pay it to X; if it is a
     negative number, X will pay the absolute value of that amount to Y.

     (iii) ADJUSTMENT FOR BANKRUPTCY. In circumstances where an Early
     Termination Date occurs because "Automatic Early Termination" applies in
     respect of a party, the amount determined under this Section 6(e) will be
     subject to such adjustments as are appropriate and permitted by law to
     reflect any payments or deliveries made by one party to the other under
     this Agreement (and retained by such other party) during the period from
     the relevant Early Termination Date to the date for payment determined
     under Section 6(d)(ii).

     (iv) PRE-ESTIMATE. The parties agree that if Market Quotation applies an
     amount recoverable under this Section 6(e) is a reasonable pre-estimate of
     loss and not a penalty. Such amount is payable for the loss of bargain and
     the loss of protection against future risks and except as otherwise
     provided in this Agreement neither party will be entitled to recover any
     additional damages as a consequence of such losses.

7.   TRANSFER

Subject to Section 6(b)(ii), neither this Agreement nor any interest or
obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party without the prior written consent of the
other party, except that: --

(a) a party may make such a transfer of this Agreement pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity (but without prejudice to any
other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any
amount payable to it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

8.   CONTRACTUAL CURRENCY

(a) PAYMENT IN THE CONTRACTUAL CURRENCY. Each payment under this Agreement will
be made in the relevant currency specified in this Agreement for that payment
(the "Contractual Currency"). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than the
Contractual Currency, except to the extent such tender results in the actual
receipt by the party to which payment is owed, acting in a reasonable manner and
in good faith in converting the currency so tendered into the Contractual
Currency, of the full amount in the Contractual Currency of all amounts payable
in respect of this Agreement. If for any reason the amount in the Contractual
Currency so received falls short of the amount in the Contractual Currency
payable in respect of this Agreement, the party required to make the payment
will, to the extent permitted by applicable law, immediately pay such additional
amount in the Contractual Currency as may be necessary to compensate for the
shortfall. If for any reason the amount in the Contractual Currency so received
exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of
such excess.

(b) JUDGMENTS. To the extent permitted by applicable law, if any judgment or
order expressed in a currency other than the Contractual Currency is rendered
(i) for the payment of any amount owing in respect of this Agreement, (ii) for
the payment of any amount relating to any early termination in respect of this
Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is
entitled pursuant to the judgment or order, will be entitled to receive
immediately from the other party the amount of any shortfall of the Contractual
Currency received by such party as a consequence of

                                     Q-4-12

<PAGE>

sums paid in such other currency and will refund promptly to the other party any
excess of the Contractual Currency received by such party as a consequence of
sums paid in such other currency if such shortfall or such excess arises or
results from any variation between the rate of exchange at which the Contractual
Currency is converted into the currency of the judgment or order for the
purposes of such judgment or order and the rate of exchange at which such party
is able, acting in a reasonable manner and in good faith in converting the
currency received into the Contractual Currency, to purchase the Contractual
Currency with the amount of the currency of the judgment or order actually
received by such party. The term "rate of exchange" includes, without
limitation, any premiums and costs of exchange payable in connection with the
purchase of or conversion into the Contractual Currency.

(c) SEPARATE INDEMNITIES. To the extent permitted by applicable law, these
indemnities constitute separate and independent obligations from the other
obligations in this Agreement, will be enforceable as separate and independent
causes of action, will apply notwithstanding any indulgence granted by the party
to which any payment is owed and will not be affected by judgment being obtained
or claim or proof being made for any other sums payable in respect of this
Agreement.

(d) EVIDENCE OF LOSS. For the purpose of this Section 8, it will be sufficient
for a party to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

9.   MISCELLANEOUS

(a) ENTIRE AGREEMENT. This Agreement constitutes the entire agreement and
understanding of the parties with respect to its subject matter and supersedes
all oral communication and prior writings with respect thereto.

(b) AMENDMENTS. No amendment, modification or waiver in respect of this
Agreement will be effective unless in writing (including a writing evidenced by
a facsimile transmission) and executed by each of the parties or confirmed by an
exchange of telexes or electronic messages on an electronic messaging system.

(c) SURVIVAL OF OBLIGATIONS. Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

(d) REMEDIES CUMULATIVE. Except as provided in this Agreement, the rights,
powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law.

(e) COUNTERPARTS AND CONFIRMATIONS.

     (i) This Agreement (and each amendment, modification and waiver in respect
     of it) may be executed and delivered in counterparts (including by
     facsimile transmission), each of which will be deemed an original.

     (ii) The parties intend that they are legally bound by the terms of each
     Transaction from the moment they agree to those terms (whether orally or
     otherwise). A Confirmation shall be entered into as soon as practicable and
     may be executed and delivered in counterparts (including by facsimile
     transmission) or be created by an exchange of telexes or by an exchange of
     electronic messages on an electronic messaging system, which in each case
     will be sufficient for all purposes to evidence a binding supplement to
     this Agreement. The parties will specify therein or through another
     effective means that any such counterpart, telex or electronic message
     constitutes a Confirmation.

(f) NO WAIVER OF RIGHTS. A failure or delay in exercising any right, power or
privilege in respect of this Agreement will not be presumed to operate as a
waiver, and a single or partial exercise of any right, power or privilege will
not be presumed to preclude any subsequent or further exercise, of that right,
power or privilege or the exercise of any other right, power or privilege.

(g) HEADINGS. The headings used in this Agreement are for convenience of
reference only and are not to affect the construction of or to be taken into
consideration in interpreting this Agreement.

                                     Q-4-13

<PAGE>

10.  OFFICES; MULTIBRANCH PARTIES

(a) If Section 10(a) is specified in the Schedule as applying, each party that
enters into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office
or jurisdiction of incorporation or organisation of such party, the obligations
of such party are the same as if it had entered into the Transaction through its
head or home office. This representation will be deemed to be repeated by such
party on each date on which a Transaction is entered into.

(b) Neither party may change the Office through which it makes and receives
payments or deliveries for the purpose of a Transaction without the prior
written consent of the other party.

(c) If a party is specified as a Multibranch Party in the Schedule, such
Multibranch Party may make and receive payments or deliveries under any
Transaction through any Office listed in the Schedule, and the Office through
which it makes and receives payments or deliveries with respect to a Transaction
will be specified in the relevant Confirmation.

11.  EXPENSES

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees and
Stamp Tax, incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document

to which the Defaulting Party is a party or by reason of the early termination
of any Transaction, including, but not limited to, costs of collection.

12.  NOTICES

(a) EFFECTIVENESS. Any notice or other communication in respect of this
Agreement may be given in any manner set forth below (except that a notice or
other communication under Section 5 or 6 may not be given by facsimile
transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:--

     (i) if in writing and delivered in person or by courier, on the date it is
     delivered;

     (ii) if sent by telex, on the date the recipient's answerback is received;

     (iii) if sent by facsimile transmission, on the date that transmission is
     received by a responsible employee of the recipient in legible form (it
     being agreed that the burden of proving receipt will be on the sender and
     will not be met by a transmission report generated by the sender's
     facsimile machine);

     (iv) if sent by certified or registered mail (airmail, if overseas) or the
     equivalent (return receipt requested), on the date that mail is delivered
     or its delivery is attempted; or

     (v) if sent by electronic messaging system, on the date that electronic
     message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as
applicable, is not a Local Business Day or that communication is delivered (or
attempted) or received, as applicable, after the close of business on a Local
Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Local Business Day.

(b) CHANGE OF ADDRESSES. Either party may by notice to the other change the
address, telex or facsimile number or electronic messaging system details at
which notices or other communications are to be given to it.

13.  GOVERNING LAW AND JURISDICTION

(a) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the law

                                     Q-4-14

<PAGE>

specified in the Schedule.

(b) JURISDICTION. With respect to any suit, action or proceedings relating to
this Agreement ("Proceedings"), each party irrevocably:--

     (i) submits to the jurisdiction of the English courts, if this Agreement is
     expressed to be governed by English law, or to the non-exclusive
     jurisdiction of the courts of the State of New York and the United States
     District Court located in the Borough of Manhattan in New York City, if
     this Agreement is expressed to be governed by the laws of the State of New
     York; and

     (ii) waives any objection which it may have at any time to the laying of
     venue of any Proceedings brought in any such court, waives any claim that
     such Proceedings have been brought in an inconvenient forum and further
     waives the right to object, with respect to such Proceedings, that such
     court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in
any other jurisdiction (outside, if this Agreement is expressed to be governed
by English law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
reenactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

(c) SERVICE OF PROCESS. Each party irrevocably appoints the Process Agent (if
any) specified opposite its name in the Schedule to receive, for it and on its
behalf, service of process in any Proceedings. If for any

reason any party's Process Agent is unable to act as such, such party will
promptly notify the other party and within 30 days appoint a substitute process
agent acceptable to the other party. The parties irrevocably consent to service
of process given in the manner provided for notices in Section 12. Nothing in
this Agreement will affect the right of either party to serve process in any
other manner permitted by law.

(d) WAIVER OF IMMUNITIES. Each party irrevocably waives, to the fullest extent
permitted by applicable law, with respect to itself and its revenues and assets
(irrespective of their use or intended use), all immunity on the grounds of
sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any Proceedings.

14.  DEFINITIONS

As used in this Agreement:--

"ADDITIONAL TERMINATION EVENT" has the meaning specified in Section 5(b).

"AFFECTED PARTY" has the meaning specified in Section 5(b).

"AFFECTED TRANSACTIONS" means (a) with respect to any Termination Event
consisting of an Illegality, Tax Event or Tax Event Upon Merger, all
Transactions affected by the occurrence of such Termination Event and (b) with
respect to any other Termination Event, all Transactions.

"AFFILIATE" means, subject to the Schedule, in relation to any person, any
entity controlled, directly or indirectly, by the person, any entity that
controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, "control" of
any entity or person means ownership of a majority of the voting power of the
entity or person.

"APPLICABLE RATE" means:--

(a) in respect of obligations payable or deliverable (or which would have been
but for Section 2(a)(iii)) by

                                     Q-4-15

<PAGE>

a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either
party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would
have been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

(d) in all other cases, the Termination Rate.

"BURDENED PARTY" has the meaning specified in Section 5(b).

"CHANGE IN TAX LAW" means the enactment, promulgation, execution or ratification
of, or any change in or amendment to, any law (or in the application or official
interpretation of any law) that occurs on or after the date on which the
relevant Transaction is entered into.

"CONSENT" includes a consent, approval, action, authorisation, exemption,
notice, filing, registration or exchange control consent.

"CREDIT EVENT UPON MERGER" has the meaning specified in Section 5(b).

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

"DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the relevant payee (as certified by it) if it
were to fund or of funding the relevant amount plus 1% per annum.

                                     Q-4-16

<PAGE>

"DEFAULTING PARTY" has the meaning specified in Section 6(a).

"EARLY TERMINATION DATE" means the date determined in accordance with Section
6(a) or 6(b)(iv).

"EVENT OF DEFAULT" has the meaning specified in Section 5(a) and, if applicable,
in the Schedule.

"ILLEGALITY" has the meaning specified in Section 5(b).

"INDEMNIFIABLE TAX" means any Tax other than a Tax that would not be imposed in
respect of a payment under this Agreement but for a present or former connection
between the jurisdiction of the government or taxation authority imposing such
Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or
related person being or having been a citizen or resident of such jurisdiction,
or being or having been organised, present or engaged in a trade or business in
such jurisdiction, or having or having had a permanent establishment or fixed
place of business in such jurisdiction, but excluding a connection arising
solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this
Agreement or a Credit Support Document).

"LAW" includes any treaty, law, rule or regulation (as modified, in the case of
tax matters, by the practice of any relevant governmental revenue authority) and
"LAWFUL" and "UNLAWFUL" will be construed accordingly.

"LOCAL BUSINESS DAY" means, subject to the Schedule, a day on which commercial
banks are open for business (including dealings in foreign exchange and foreign
currency deposits) (a) in relation to any obligation under Section 2(a)(i), in
the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

"LOSS" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be its
total losses and costs (or gain, in which case expressed as a negative number)
in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost
of funding or, at the election of such party but without duplication, loss or
cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from
any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each
applicable condition precedent) on or before the relevant Early Termination Date
and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

"MARKET QUOTATION" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition

                                     Q-4-17

<PAGE>

precedent) by the parties under Section 2(a)(i) in respect of such Terminated
Transaction or group of Terminated Transactions that would, but for the
occurrence of the relevant Early Termination Date, have

been required after that date. For this purpose, Unpaid Amounts in respect of
the Terminated Transaction or group of Terminated Transactions are to be
excluded but, without limitation, any payment or delivery that would, but for
the relevant Early Termination Date, have been required (assuming satisfaction
of each applicable condition precedent) after that Early Termination Date is to
be included. The Replacement Transaction would be subject to such documentation
as such party and the Reference Market-maker may, in good faith, agree. The
party making the determination (or its agent) will request each Reference Market
maker to provide its quotation to the extent reasonably practicable as of the
same day and time (without regard to different time zones) on or as soon as
reasonably practicable after the relevant Early Termination Date. The day and
time as of which those quotations are to be obtained will be selected in good
faith by the party obliged to make a determination under Section 6(e), and, if
each party is so obliged, after consultation with the other. If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of the
quotations, without regard to the quotations having the highest and lowest
values. If exactly three such quotations are provided, the Market Quotation will
be the quotation remaining after disregarding the highest and lowest quotations.
For this purpose, if more than one quotation has the same highest value or
lowest value, then one of such quotations shall be disregarded. If fewer than
three quotations are provided, it will be deemed that the Market Quotation in
respect of such Terminated Transaction or group of Terminated Transactions
cannot be determined.

"NON-DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the Non-defaulting Party (as certified by it) if
it were to fund the relevant amount.

"NON-DEFAULTING PARTY" has the meaning specified in Section 6(a).

"OFFICE" means a branch or office of a party, which may be such party's head or
home office.

"POTENTIAL EVENT OF DEFAULT" means any event which, with the giving of notice or
the lapse of time or both, would constitute an Event of Default.

"REFERENCE MARKET-MAKERS" means four leading dealers in the relevant market
selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to make
an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

"RELEVANT JURISDICTION" means, with respect to a party, the jurisdictions (a) in
which the party is incorporated, organised, managed and controlled or considered
to have its seat, (b) where an Office through which the party is acting for
purposes of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such payment
is made.

"SCHEDULED PAYMENT DATE" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

"SET-OFF" means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this Agreement,
another contract, applicable law or otherwise) that is exercised by, or imposed
on, such payer.

"SETTLEMENT AMOUNT" means, with respect to a party and any Early Termination
Date, the sum of:--

(a) the Termination Currency Equivalent of the Market Quotations (whether
positive or negative) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation is determined; and

(b) such party's Loss (whether positive or negative and without reference to any
Unpaid Amounts) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation cannot be

                                     Q-4-18

<PAGE>

determined or would not (in the reasonable belief of the party making the
determination) produce a commercially reasonable result.

"SPECIFIED ENTITY" has the meaning specified in the Schedule.

"SPECIFIED INDEBTEDNESS" means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

"SPECIFIED TRANSACTION" means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

"STAMP TAX" means any stamp, registration, documentation or similar tax.

"TAX" means any present or future tax, levy, impost, duty, charge, assessment or
fee of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

"TAX EVENT" has the meaning specified in Section 5(b).

"TAX EVENT UPON MERGER" has the meaning specified in Section 5(b).

"TERMINATED TRANSACTIONS" means with respect to any Early Termination Date (a)
if resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if "Automatic Early Termination" applies, immediately
before that Early Termination Date).

"TERMINATION CURRENCY" has the meaning specified in the Schedule.

"TERMINATION CURRENCY EQUIVALENT" means, in respect of any amount denominated in
the Termination Currency, such Termination Currency amount and, in respect of
any amount denominated in a currency other than the Termination Currency (the
"Other Currency"), the amount in the Termination Currency determined by the
party making the relevant determination as being required to purchase such
amount of such Other Currency as at the relevant Early Termination Date, or, if
the relevant Market Quotation or Loss (as the case may be), is determined as of
a later date, that later date, with the Termination Currency at the rate equal
to the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a rate
for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be selected in
good faith by that party and otherwise will be agreed by the parties.

"TERMINATION EVENT" means an Illegality, a Tax Event or a Tax Event Upon Merger
or, if specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

"TERMINATION RATE" means a rate per annum equal to the arithmetic mean of the
cost (without proof or evidence of any actual cost) to each party (as certified
by such party) if it were to fund or of funding such amounts.

"UNPAID AMOUNTS" owing to any party means, with respect to an Early Termination
Date, the aggregate of (a)

                                     Q-4-19

<PAGE>

in respect of all Terminated Transactions, the amounts that became payable (or
that would have become payable but for Section 2(a)(iii)) to such party under
Section 2(a)(i) on or prior to such Early Termination Date and which remain
unpaid as at such Early Termination Date and (b) in respect of each Terminated
Transaction, for each obligation under Section 2(a)(i) which was (or would have
been but for Section 2(a) (iii)) required to be settled by delivery to such
party on or prior to such Early Termination Date and which has not been so
settled as at such Early Termination Date, an amount equal to the fair market

value of that which was (or would have been) required to be delivered as of the
originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such
amounts, from (and including) the date such amounts or obligations were or would
have been required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above
shall be reasonably determined by the party obliged to make the determination
under Section 6(e) or, if each party is so obliged, it shall be the average of
the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.

IN WITNESS WHEREOF the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.

THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION, NOT
                                        INDIVIDUALLY, BUT SOLELY AS SUPPLEMENTAL
BY: GREENWICH CAPITAL MARKETS, INC.,    INTEREST TRUST TRUSTEE FOR THE
ITS AGENT                               SUPPLEMENTAL INTEREST TRUST WITH RESPECT
                                        TO MERRILL LYNCH MORTGAGE INVESTORS
                                        TRUST, SERIES 2007-HE1
By:
    ---------------------------------
Name:                                   By:
      -------------------------------       ------------------------------------
Title:                                  Name:
       ------------------------------         ----------------------------------
Date:                                   Title:
      -------------------------------          ---------------------------------
                                        Date:
                                              ----------------------------------

                                     Q-4-20
<PAGE>

                                    SCHEDULE
                                     TO THE
                                MASTER AGREEMENT
                                   DATED AS OF

                                  MARCH 8, 2007

                                     BETWEEN

                         THE ROYAL BANK OF SCOTLAND PLC
                ESTABLISHED AS A BANK UNDER THE LAWS OF SCOTLAND
                                   ("PARTY A")

                                       AND

    LA SALLE BANK, NATIONAL ASSOCIATION, NOT INDIVIDUALLY, BUT SOLELY AS THE
     SUPPLEMENTAL INTEREST TRUST TRUSTEE (THE "TRUSTEE") WITH RESPECT TO THE
   SUPPLEMENTAL INTEREST TRUST (THE "SUPPLEMENTAL INTEREST TRUST") FOR MERRILL
  LYNCH MORTGAGE INVESTORS TRUST, SERIES 2007-HE1, A NEW YORK COMMON LAW TRUST
                                   ("PARTY B")

PART 1 TERMINATION PROVISIONS.

(t)  "SPECIFIED ENTITY" means (i) in relation to Party A for all purposes of the
     Agreement: None;

     and (ii) in relation to Party B for all purposes of the Agreement: None.

(u)  The "FAILURE TO PAY OR DELIVER" provisions of Section 5(a)(i) will apply to
     Party A and Party B; provided that the word "third" shall be deleted and
     replaced by the word "second".

(v)  The "BREACH OF AGREEMENT" provisions of Section 5(a)(ii) of the Agreement
     will be inapplicable to Party B.

(w)  The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) of the
     Agreement will apply to Party A and will not apply to Party B except that
     Section 5(a)(iii)(1) will apply to Party B solely in respect of Party B's
     obligations under Paragraph 3(b) of the Credit Support Annex specified as a
     Credit Support Document with respect to Party A. Notwithstanding Sections
     5(a)(i) and 5(a)(iii), any failure by Party A to comply with or perform any
     obligation to be complied with or performed by Party A under the Credit
     Support Annex to this Agreement shall not be an Event of Default unless (A)
     a Second Rating Trigger Event with respect to Moody's has occurred and at
     least 30 Local Business Days have elapsed since the Second Rating Trigger
     Event has occurred and (B) such failure is not remedied on or before the
     third Local Business Day after notice of such failure is given to Party A.

(x)  The "MISREPRESENTATION" provisions of Section 5(a)(iv) of the Agreement
     will be inapplicable to Party B.

(y)  The "DEFAULT UNDER SPECIFIED TRANSACTION" provisions of Section 5(a)(v) of
     the Agreement will be applicable to Party A and inapplicable to Party B.

                                     Q-4-21

<PAGE>

(z)  The "CROSS DEFAULT" provisions of Section 5(a)(vi) of the Agreement will
     apply to Party A with a Threshold Amount of 3% of the shareholder's equity
     of Party A.

(aa) The "CROSS DEFAULT" provisions of Section 5(a)(vi) of the Agreement will be
     inapplicable to Party B.

(bb) The "BANKRUPTCY" provision of Section 5(a)(vii) of the Agreement will be
     applicable to Party A and to Party B, subject to the following
     modifications with respect to Party B:

     (i)  Section 5(a)(vii)(2), (7) and (9) shall not apply;

     (ii) Section 5(a)(vii)(4) shall not apply to the extent that it refers to
          proceedings or petitions instituted or presented by Party A or its
          affiliates;

     (iii) The phrase "seeks or" in Section 5(a)(vii)(6) shall be deemed
          deleted; and

     (iv) Section 5(a)(vii)(8) shall apply only to the extent that a relevant
          event has an effect that is analogous to an effect described in
          Section 5(a)(vii)(1) through (7) (as amended in this Part 1(h)) that
          applies to Party B.

(cc) The "Merger without Assumption" provisions of Section 5(a)(viii) will apply
     to Party A and will apply to Party B.

(dd) The "TAX EVENT UPON MERGER" provisions of Section 5(b)(iii) shall not apply
     to the extent that Party A is both the Burdened Party and the Affected
     Party.

(ee) The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv) of the
     Agreement will be inapplicable to Party A and Party B.

(ff) The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) of the
     Agreement will be inapplicable to Party A and Party B.

(gg) PAYMENTS ON EARLY TERMINATION.

     (i)  For the purpose of Section 6(e) of the Agreement:

          (A)  Market Quotation will apply; and

          (B)  The Second Method will apply.

     (ii) Notwithstanding Section 6 of this Agreement, so long as Party A is (A)
          the sole Affected Party in respect of an Additional Termination Event
          or a Tax Event Upon Merger or (B) the Defaulting Party in respect of
          any Event of Default, paragraphs (A) to (F) below shall apply:

          (A)  The definition of "Market Quotation" shall be deleted in its
               entirety and replaced with the following:

          ""MARKET QUOTATION" means, with respect to one or more Terminated
          Transactions, an offer which, when made, is capable of becoming
          legally binding upon acceptance (any such offer, a "FIRM OFFER") which
          is (1) made by a Reference Market-maker that is an Eligible
          Replacement, (2) for an amount that would be paid to Party B
          (expressed as a negative number) or by Party B (expressed as a
          positive number) in consideration of an agreement between Party B and
          such Reference Market-maker to enter

                                     Q-4-22

<PAGE>

          into a transaction (the "REPLACEMENT TRANSACTION") that would have the
          effect of preserving for such party the economic equivalent of any
          payment or delivery (whether the underlying obligation was absolute or
          contingent and assuming the satisfaction of each applicable condition
          precedent) by the parties under Section 2(a)(i) in respect of such
          Terminated Transactions or group of Terminated Transactions that
          would, but for the occurrence of the relevant Early Termination Date,
          have been required after that date, (3) made on the basis that Unpaid
          Amounts in respect of the Terminated Transaction or group of
          Transactions are to be excluded but, without limitation, any payment
          or delivery that would, but for the relevant Early Termination Date,
          have been required (assuming satisfaction of each applicable condition
          precedent) after that Early Termination Date is to be included and (4)
          made in respect of a Replacement Transaction with commercial terms
          substantially the same as those of this Agreement (save for the
          exclusion of provisions relating to Transactions that are not
          Terminated Transactions)."

          (B)  The definition of "Settlement Amount" shall be deleted in its
               entirety and replaced with the following:

          ""SETTLEMENT AMOUNT" means, with respect to any Early Termination
          Date, an amount (as determined by Party B) equal to:

               (1) If a Market Quotation for the relevant Terminated Transaction
               or group of Terminated Transactions is selected by Party A and
               accepted by Party B so as to become legally binding on or before
               the day falling ten Local Business Days after the day on which
               the Early Termination Date is designated (or such later day as
               Party B may specify in writing to Party A, which in any event
               will not be later than the Early Termination Date) (such day, the
               "LATEST SETTLEMENT AMOUNT DETERMINATION DAY"), the Termination
               Currency Equivalent of the amount (whether positive or negative)
               of such Market Quotation;

               (2) If, on the Latest Settlement Amount Determination Day, no
               Market Quotation for the relevant Terminated Transaction or group
               of Terminated Transactions has been accepted by Party B so as to
               become legally binding and one or more Market Quotations have
               been made and remain capable of becoming legally binding upon
               acceptance, the Settlement Amount shall equal the Termination
               Currency Equivalent of the amount (whether positive or negative)
               of the lowest of such Market Quotations (for the avoidance of
               doubt, the lowest of such Market Quotations shall be the lowest
               Market Quotation of such Market Quotations expressed as a
               positive number or, if any of such Market Quotations is expressed
               as a negative number, the Market Quotation expressed as a
               negative number with the largest absolute value); or

               (3) If no Market Quotation for the relevant Terminated
               Transaction or group of Terminated Transactions has been selected
               by Party A and accepted by Party B so as to become legally
               binding on or before the Latest Settlement Amount Determination
               Day, Party B's Loss (whether positive or negative and without
               reference to any Unpaid Amounts) for the relevant Terminated
               Transaction or group of Terminated Transactions."

          (C)  For the purpose of clause (4) of the definition of Market
               Quotation, Party B shall determine in its sole discretion, acting
               in a commercially reasonable manner, whether a Firm Offer is made
               in respect of a Replacement Transaction with commercial terms
               substantially the same as those of

                                     Q-4-23

<PAGE>

               this Agreement (save for the exclusion of provisions relating to
               Transactions that are not Terminated Transactions).

          (D)  At any time on or before the Latest Settlement Amount
               Determination Day at which two or more Market Quotations remain
               capable of becoming legally binding upon acceptance, Party B
               shall be entitled to accept only the lowest of such Market
               Quotations (for the avoidance of doubt, the lowest of such Market
               Quotations shall be the lowest Market Quotation of such Market
               Quotations expressed as a positive number or, if any of such
               Market Quotations is expressed as a negative number, the Market
               Quotation expressed as a negative number with the largest
               absolute value).

          (E)  Party B undertakes to use its reasonable efforts to obtain at
               least one Market Quotation before the Latest Settlement Amount
               Determination Day. Party B will be deemed to have discharged its
               obligations under the preceding sentence if it requests Party A
               to obtain Market Quotations, where such request is made in
               writing within two Local Business Days after the day on which the
               Early Termination Date is designated. If Party B requests Party A
               in writing to obtain Market Quotations, Party A shall use its
               reasonable efforts to do so before the Latest Settlement Amount
               Determination Day.

          (F)  Any amount calculated as being due in respect of an Early
               Termination Date will be payable in accordance with Section
               6(d)(ii), provided that if such payment is owed to Party B, it
               will be payable on the day that notice of the amount payable is
               given to Party A.

          (G)  If the Settlement Amount is a negative number, Section 6(e)(i)(3)
               of this Agreement shall be deleted in its entirety and replaced
               with the following:

          SECOND METHOD AND MARKET QUOTATION. If Second Method and Market
          Quotation apply, (1) Party B shall pay to Party A an amount equal to
          the absolute value of the Settlement Amount in respect of the
          Terminated Transactions, (2) Party B shall pay to Party A the
          Termination Currency Equivalent of the Unpaid Amounts owing to Party A
          and (3) Party A shall pay to Party B the Termination Currency
          Equivalent of the Unpaid Amounts owing to Party B, provided that, (i)
          the amounts payable under (2) and (3) shall be subject to netting in
          accordance with Section 2(c) of this Agreement and (ii)
          notwithstanding any other provision of this Agreement, any amount
          payable by Party A under (3) shall not be netted-off against any
          amount payable by Party B under (1).

(hh) "TERMINATION CURRENCY" means United States Dollars.

(ii) ADDITIONAL TERMINATION EVENTS. Each of the following shall be an Additional
     Termination Event:

     (i)  FIRST RATING TRIGGER EVENT. A First Rating Trigger Event (as defined
          in Part 5(i)) has occurred, and Party A has not, within the period of
          time prescribed, complied with Part 5(i)(ii) below. For purposes of
          this Additional Termination Event, Party A shall be the sole Affected
          Party.

     (ii) S&P SECOND RATING TRIGGER EVENT. A Second Rating Trigger Event (as
          defined in Part 5(i)) with respect to S&P has occurred, and Party A
          has not, within 10 Business Days after such event, complied with the
          requirements of Part 5(i)(iii) below. For purposes of this Additional
          Termination Event, Party A shall be the sole Affected Party.

     (iii) MOODY'S SECOND RATING TRIGGER EVENT. (A) A Second Rating Trigger
          Event with respect to Moody's has occurred, and 30 or more Local
          Business Days have elapsed and (B) (i) at least one

                                     Q-4-24

<PAGE>

          Eligible Replacement (as defined in Part 5(i)) has made a Firm Offer
          to be the transferee of a transfer to be made in accordance with Part
          5(i)(iii) below and/or (ii) at least one entity with the Acceptable
          Ratings (as defined in Part 5(i)) has made a Firm Offer to provide an
          Eligible Guarantee in respect of all of Party A's present and future
          obligations under this Agreement. For purposes of this Additional
          Termination Event, Party A shall be the sole Affected Party.

     (iv) ACCELERATION OR REDEMPTION OF CERTIFICATES. The Certificates are
          accelerated (if applicable) or redeemed in whole, for any reason,
          pursuant to the Pooling and Servicing Agreement, provided, such
          acceleration or redemption is no longer capable of being revoked. For
          purposes of this Additional Termination Event, Party B shall be the
          sole Affected Party.

     (v)  MODIFICATION OF POOLING AND SERVICING AGREEMENT. The Pooling and
          Servicing Agreement is modified without the prior written consent of
          Party A, where such consent is required under the terms of the Pooling
          and Servicing Agreement and such modification has a material adverse
          effect on Party A's rights under this Agreement or the Pooling and
          Servicing Agreement. For purposes of this Additional Termination
          Event, Party B shall be the sole Affected Party.

     (vi) EXERCISE OF PURCHASE OPTION. La Salle Bank, National Association, as
          trustee, notifies the Holders of the Certificates of the intent to
          exercise an option to purchase the Mortgage Loans pursuant to Section
          9.01 of the Pooling and Servicing Agreement (including, for the
          avoidance of doubt, a notice of an Auction). For purposes of this
          Additional Termination Event, Party B shall be the sole Affected
          Party.

     (vii) REGULATION AB. (A) Merrill Lynch Mortgage Investors, Inc. ("MLMI"),
          as the Depositor still has a reporting obligation with respect to this
          Transaction pursuant to Regulation AB and (B) Party A has not, within
          30 days after receipt of a Hedge Disclosure Request complied with the
          provisions set forth in Part 5(k)(iv) below (provided that if the
          significance percentage reaches 10% or 20%, as applicable, after a
          Hedge Disclosure Request has been made to Party A, Party A must comply
          with the provisions set forth in Part 5(k)(iv) below within 10 days of
          Party A being informed of the significance percentage reaching 10% or
          20%, as applicable) or has not, thereafter, complied with the
          provisions set forth in Part 5(k)(v) below. For purposes of this
          Additional Termination Event, Party A shall be the sole Affected
          Party.

PART 2 TAX REPRESENTATIONS.

(E)  Payer Representations For the purpose of Section 3(e) of the Agreement,
     Party A will make the following representation and Party B will not make
     the following representation:

     It is not required by any applicable law, as modified by the practice of
     any relevant governmental revenue authority, of any Relevant Jurisdiction
     to make any deduction or withholding for or on account of any Tax from any
     payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of the
     Agreement) to be made by it to the other party under this Agreement. In
     making this representation, it may rely on (i) the accuracy of any
     representations made by the other party pursuant to Section 3(f) of the
     Agreement, (ii) the satisfaction of the agreement contained in Section
     4(a)(i) or 4(a)(iii) of the Agreement and the accuracy and effectiveness of
     any document provided by the other party pursuant to Section 4(a)(i) or
     4(a)(iii) of the Agreement and (iii) the satisfaction of the agreement of
     the other party contained in Section 4(d) of the Agreement, provided that
     it shall not be a breach of this representation where reliance is placed on
     clause

                                     Q-4-25

<PAGE>

     (ii) and the other party does not deliver a form or document under Section
     4(a)(iii) of the Agreement by reason of material prejudice to its legal or
     commercial position.

(F)  PAYEE REPRESENTATIONS. For the purpose of Section 3(f) of the Agreement:

     (viii) Party A represents that:

          (E)  Party A is a tax resident of the United Kingdom;

          (F)  Party A is a "foreign person" within the meaning of the
               applicable U.S. Treasury Regulations concerning information
               reporting and backup withholding tax (as in effect on January 1,
               2001), unless Party A provides written notice to Party B that it
               is no longer a foreign person;

          (G)  in respect of each Transaction Party A enters into through an
               office or discretionary agent in the United States or which
               otherwise is allocated (in whole or part) for United States
               federal income tax purposes to such United States trade or
               business, each payment received or to be received by Party A
               under such Transaction (or portion thereof, if applicable) will
               be effectively connected with its conduct of a trade or business
               in the United States; and

          (H)  in respect of all other Transactions or portions thereof, no such
               payment received or to be received by Party A in connection with
               this Agreement is attributable to a trade or business carried on
               by it through a permanent establishment in the United States.

     (ix) Party B represents that:

          (D)  it is the Supplemental Interest Trust Trustee for the
               Supplemental Interest Trust;

          (E)  it is a national banking association and not a foreign
               corporation for United States tax purposes; and

          (F)  the Supplemental Interest Trust is a New York common law trust
               and not a foreign trust for United States tax purposes.

(G)  DEFINITION OF "INDEMNIFIABLE TAX". Notwithstanding the definition of
     "Indemnifiable Tax" in Section 14 of the Agreement, in relation to payments
     by Party A, any Tax shall be an Indemnifiable Tax and, in relation to
     payments by Party B, no Tax shall be an Indemnifiable Tax.

(H)  NO GROSS-UP BY PARTY B. Section 2(d)(i)(4) shall not apply to Party B as X,
     and Section 2(d)(ii) shall not apply to Party B as Y.

PART 3 AGREEMENT TO DELIVER DOCUMENTS.

For the purpose of Sections 4(a)(i) and (ii) of the Agreement, Party A and Party
B agree to deliver the following documents, as applicable:

(A)  Tax forms, documents or certificates to be delivered are:

                                     Q-4-26

<PAGE>

<TABLE>
<CAPTION>
PARTY REQUIRED TO
 DELIVER DOCUMENT               FORM/DOCUMENT/CERTIFICATE              DATE BY WHICH TO BE DELIVERED
-----------------               -------------------------              -----------------------------
<S>                 <C>                                                <C>
Party A             Any form or document required or reasonably        Upon reasonable request.
                    requested to allow the other party to make
                    payments under the Agreement without any
                    deduction or withholding for or on account of
                    any Tax, or with such deduction or withholding
                    at a reduced rate.

Party B             Any form or document required or reasonably        (i) Concurrently with the
                    requested to allow the other party to make         execution and delivery of
                    payments under the Agreement without any           this Confirmation, and (ii)
                    deduction or withholding for or on account of      anytime when the document
                    any Tax, or with such deduction or withholding     last delivered is incorrect
                    at a reduced rate.                                 or out-of-date.
</TABLE>

(jj) (B)  Other documents to be delivered and covered by the Section 3(d)
          representation are:

<TABLE>
<CAPTION>
                                                                                      COVERED BY
 PARTY REQUIRED TO                                         DATE BY WHICH TO BE       SECTION 3(D)
      DELIVER          FORM/DOCUMENT/OR CERTIFICATE             DELIVERED           REPRESENTATION
 -----------------     ----------------------------        -------------------      --------------
<S>                   <C>                              <C>                          <C>
Party A and Party B   Incumbency Certificate (or, if   Concurrently with the        Yes
                      available the current            execution and delivery of
                      authorized signature book or     this Agreement unless
                      equivalent authorizing           previously delivered and
                      documentation) specifying the    still in full force and
                      names, titles, authority and     effect.
                      specimen signatures of the
                      persons authorized to execute
                      the Confirmation which sets
                      forth the specimen signatures
                      of each signatory to the
                      Confirmation signing on its
                      behalf.

Party B               The Pooling and Servicing        Within 20 days of the
                      Agreement.                       execution and No delivery
                                                       of this Agreement.

Party A and Party B   Legal opinion(s) with respect    Concurrently with the
                      to such party relating to the    execution and No delivery
                      enforceability of the party's    of this Agreement.
                      obligations under this
                      Agreement.
</TABLE>

PART 4 MISCELLANEOUS.

(L)  ADDRESSES FOR NOTICES. For the purposes of Section 12(a) of the Agreement:

                                     Q-4-27

<PAGE>

     (i) Notices or communications shall, with respect to a particular
     Transaction, be sent to the address, telex number or facsimile number
     reflected in the Confirmation of that Transaction. In addition (or in the
     event the Confirmation for a Transaction does not provide relevant
     Addresses/information for notice), with respect to notices provided
     pursuant to Section 5 and 6 of this Agreement, notice shall be provided to:

     Address for notices or communications to Party A:-

          The Royal Bank of Scotland plc, Financial Markets
          Attention: Caps Administration
          135 Bishopsgate
          London EC2M 3UR

          Tel.: 020 7085 5000
          Fax.: 020 7085 5050

          With a copy to:

          Address: Greenwich Capital Markets, Inc.
                   600 Steamboat Road
                   Greenwich, CT 06830
          Attention: Legal Department - Derivatives Documentation
          Phone No.: 203-618-2531/6467
          Facsimile No.: 203-422-4531/4247

     Address for notices or communications to Party B:-

          LaSalle Bank N.A.
          135 S. LaSalle Street, Suite 1625
          Chicago, IL 60603
          Attn: Kathryn Hawkinson, MLMI 2007 HE1

(M)  NOTICE BY FACSIMILE TRANSMISSION.

     Section 12(a) of the Agreement is amended by adding in the third line
     thereof after the phrase "messaging system" and before the ")" the words ";
     provided, however, any such notice or other communication may be given by
     facsimile transmission (it being agreed that the burden of proving receipt
     will be on the sender and will not be met by a transmission report
     generated by the sender's facsimile machine)".

     Section 12(a)(ii) of the Agreement is deleted in its entirety.

(N)  PROCESS AGENT. For the purpose of Section 13(c) of the Agreement:

     Party A appoints as its Process Agent: none

     Party B appoints as its Process Agent: none

(O)  OFFICES. With respect to Party A, the provisions of Section 10(a) of the
     Agreement will apply.

                                     Q-4-28

<PAGE>

(P)  MULTIBRANCH PARTY. For the purpose of Section 10(c) of the Agreement:

     Party A is a Multibranch Party and may act through its London and New York
     Offices only.

     Party B is not a Multibranch Party.

(Q)  CALCULATION AGENT. The Calculation Agent is Party A.

(R)  CREDIT SUPPORT DOCUMENT. Details of any Credit Support Document for Party A
     and Party B: With respect to Party A, the ISDA Credit Support Annex (New
     York law), dated as of the date hereof, between Party A and Party B, and
     such other collateralization agreement or credit arrangement provided for
     under the terms of any Confirmation and Transaction evidenced thereby,
     together with any document or agreement that by its terms secures or
     otherwise supports the parties' obligations under a Transaction heretofore
     or hereafter entered into between the parties. With respect to Party B,
     such credit support document is solely in respect of Party B's obligations
     under Paragraph 3(b) of the Credit Support Annex.

(S)  CREDIT SUPPORT PROVIDER.

     Credit Support Provider means in relation to Party A: Initially, none,
     provided however that a party providing an Eligible Guarantee, if any,
     shall be the Credit Support Provider in relation to Party A.

     Credit Support Provider means in relation to Party B: none.

(T)  GOVERNING LAW. This Agreement will be governed by and construed in
     accordance with the laws of the State of New York (without reference to
     conflicts of law doctrine other than New York General Obligations Law
     Sections 5-1401 and 5-1402).

(U)  NETTING OF PAYMENTS. Subparagraph (ii) of Section 2(c) of the Agreement
     will apply to the Transaction evidenced by the Confirmation.

(V)  AFFILIATES. Party B shall be deemed to not have any Affiliates for purposes
     of this Transaction.

     (kk)

PART 5 OTHER PROVISIONS.

(V)  ADDITIONAL REPRESENTATION. Section 3(a) of the Agreement shall be amended
     to include the following additional representations after paragraph
     3(a)(v):

     (vi) PRINCIPAL. It is acting as principal and not as agent when entering
     into the Transaction.

     (vii) NON-RELIANCE. It is acting for its own account and it has made its
     own independent decisions to enter into the Transaction and as to whether
     the Transaction is appropriate or proper for it based upon its own judgment
     and upon advice from such advisors as it has deemed necessary. It is not
     relying on any communication (written or oral) of the other party as
     investment advice or as a recommendation to enter into the Transaction; it
     being understood that information and explanations related to the terms and
     conditions of the Transaction shall not be considered investment advice or
     a recommendation to enter into the Transaction. No communication (written
     or oral) received from the other party shall be deemed to be an assurance
     or guarantee as to the expected results of the Transaction.

     (viii) EVALUATION AND UNDERSTANDING. It is capable of evaluating and
     understanding (on its own behalf or through independent professional
     advice), and understands and accepts, the terms, conditions and risks

                                     Q-4-29

<PAGE>

     of the Agreement and that Transaction. It is also capable of assuming, and
     assumes, the financial and other risks of the Agreement and that
     Transaction.

     (ix) STATUS OF PARTIES. The other party is not acting as an agent,
     fiduciary or advisor for it in respect of that Transaction.

     (x) ELIGIBLE CONTRACT PARTICIPANT, ETC. It is an "eligible contract
     participant" as defined in Section 1a(12) of the U.S. Commodity Exchange
     Act (7 U.S.C. 1a), as amended by the Commodity Futures Modernization Act of
     2000 and the Transaction evidenced hereby has been the subject of
     individual negotiations and is intended to be exempt from, or otherwise not
     subject to regulation thereunder.

(W)  WAIVER OF RIGHT TO TRIAL BY JURY. Each party hereby irrevocably waives any
     and all rights to trial by jury in any legal proceeding arising out of or
     relating to this Agreement or any Transaction hereunder.

(X)  ABSENCE OF LITIGATION. In Section 3(c) of the Agreement the words "or any
     of its Affiliates" shall be deleted.

(Y)  FULLY-PAID PARTY PROTECTED. Notwithstanding the terms of Sections 5 and 6
     of the Agreement, if Party B has satisfied its payment obligations under
     Section 2(a)(i) of the Agreement, then unless Party A is required pursuant
     to appropriate proceedings to return to Party B or otherwise returns to
     Party B upon demand of Party B any portion of such payment, (a) the
     occurrence of an event described in Section 5(a) of the Agreement with
     respect to Party B shall not constitute an Event of Default or Potential
     Event of Default with respect to Party B as the Defaulting Party and (b)
     Party A shall be entitled to designate an Early Termination Date pursuant
     to Section 6 of the Agreement only as a result of a Termination Event set
     forth in either Section 5(b)(i) or Section 5(b)(ii) of the Agreement with
     respect to Party A as the Affected Party or Section 5(b)(iii) of the
     Agreement with respect to Party A as the Burdened Party. For purposes of
     the Transaction to which this Confirmation relates, Party B's only
     obligation under Section 2(a)(i) of the Agreement is to pay the Fixed
     Amount on the Fixed Rate Payer Payment Date.

(Z)  LIMITATION OF LIABILITY.

     It is expressly understood and agreed by the parties hereto that (a) this
     Agreement is executed and delivered by La Salle Bank, National Association,
     as the Supplemental Interest Trust Trustee of the Supplemental Interest
     Trust, in the exercise of the powers and authority conferred upon and
     vested in it under the Pooling and Servicing Agreement dated as of February
     1, 2007, by and among LaSalle Bank National Association, as trustee,
     Merrill Lynch Mortgage Investors, Inc., as depositor (the "DEPOSITOR"), and
     Wilshire Credit Corporation., as servicer (the "POOLING AND SERVICING
     AGREEMENT") and pursuant to instructions set forth therein, and that the
     Supplemental Interest Trust Trustee shall perform its duties and
     obligations hereunder in accordance with the standard of care set forth in
     the Pooling and Servicing Agreement, (b) each of the representations,
     undertakings and agreements herein is made and intended not as a personal
     representation, undertaking or agreement of the Supplemental Interest Trust
     Trustee but is made and intended for the purpose of binding only the
     Supplemental Interest Trust, and (c) under no circumstances shall the
     Supplemental Interest Trust Trustee be personally liable for the payment of
     any indebtedness or expenses of the Supplemental Interest Trust or be
     liable for the breach or failure of any obligation, representation,
     warranty or covenant made or undertaken by the Supplemental Interest Trust
     herein; provided that nothing in this paragraph shall relieve the
     Supplemental Interest Trust Trustee from performing its duties and

                                     Q-4-30

<PAGE>

     obligations hereunder in accordance with the standard of care set forth in
     the Pooling and Servicing Agreement.

(AA) PROCEEDINGS. Party A shall not institute against or cause any other person
     to institute against, or join any other person in instituting against Party
     B any bankruptcy, reorganization, arrangement, insolvency or liquidation
     proceedings, or other proceedings under any federal or state bankruptcy,
     dissolution or similar law, for a period of one year and one day (or, if
     longer, the applicable preference period) following indefeasible payment in
     full of the Certificates, provided that nothing herein shall preclude, or
     be deemed to estop Party A from taking any action in any case or proceeding
     voluntarily filed or commenced by or on behalf of Party B or in any
     involuntary case or proceeding after it has been commenced. This provision
     will survive the termination of this Agreement.

(BB) RECORDING OF CONVERSATIONS. Each party (i) consents to the recording of the
     telephone conversations of trading and marketing personnel of the parties
     and (ii) agrees to obtain any necessary consent of, and give notice of such
     recording to, such personnel of it.

(CC) NO SET-OFF. Notwithstanding any provision of this Agreement or any other
     existing or future agreement, each party irrevocably waives any and all
     rights it may have to set-off, net recoup or otherwise withhold or suspend
     or condition payment or performance of any obligation between it and the
     other party hereunder against any obligation between it and the other party
     under any other agreements. The provisions for Set-off set forth in Section
     6(e) of the Agreement shall not apply for purposes of this Transaction.

(DD) Rating Agency Downgrade.

     (i)  For purposes of this Part 5(i), the following definitions apply:

     An entity has "ACCEPTABLE RATINGS" if (x) its short-term unsecured and
     unsubordinated debt is rated at least "A-1" by S&P (or, if Party A does not
     have a short-term unsecured and unsubordinated debt rating from S&P, its
     long-term unsecured and unsubordinated debt is rated at least "A+" by S&P),
     and (y) Party A's long-term unsecured and unsubordinated debt is rated at
     least "A3" and Party A's short-term unsecured and unsubordinated debt is
     rated at least "Prime-2" (or if Party A does not have a short-term
     unsecured and unsubordinated debt rating from Moody's, its long-term
     unsecured and unsubordinated debt is rated at least "A3").

     "ELIGIBLE GUARANTEE" means an unconditional and irrevocable guarantee that
     is provided by a guarantor with Acceptable Ratings as principal debtor
     rather than surety and is directly enforceable by Party B, where either (A)
     a law firm has given a legal opinion confirming that none of the
     guarantor's payments to Party B under such guarantee will be subject to
     withholding for tax or (B) such guarantee provides that, in the event that
     any of such guarantor's payments to Party B are subject to withholding for
     tax, such guarantor is required to pay such additional amount as is
     necessary to ensure that the net amount actually received by Party B (free
     and clear of any withholding tax) will equal the full amount Party B would
     have received had no such withholding been required.

     "ELIGIBLE REPLACEMENT" means an entity (A) with the Acceptable Ratings or
     (B) whose present and future obligations owing to Party B are guaranteed
     pursuant to an Eligible Guarantee.

                                     Q-4-31

<PAGE>

     A "FIRST RATING TRIGGER EVENT" shall occur with respect to Party A (or any
     applicable Credit Support Provider), if (x) its short-term unsecured and
     unsubordinated debt ceases to be rated at least "A-1" by S&P (or, if Party
     A does not have a short-term unsecured and unsubordinated debt rating from
     S&P, its long-term unsecured and unsubordinated debt ceases to be rated at
     least "A+" by S&P), or (y)(a) its long-term unsecured and unsubordinated
     debt ceases to be rated at least "A2" by Moody's or its short-term
     unsecured and unsubordinated debt cease to be rated at least "Prime-1" by
     Moody's, or (b) if Party A does not have a short-term unsecured and
     unsubordinated debt rating from Moody's, its long-term unsecured and
     unsubordinated debt ceases to be rated at least "A1" by Moody's.

     "RATING AGENCY CONDITION" means, with respect to any particular proposed
     act or omission to act hereunder, that the party acting or failing to act
     must consult with each of the Rating Agencies then providing a rating of
     the Certificates and receive from each such Rating Agency a prior written
     confirmation that the proposed action or inaction would not cause a
     downgrade or withdrawal of the then-current rating of the Certificates.

     A "SECOND RATING TRIGGER EVENT" shall occur with respect to Party A (or any
     applicable credit support provider), if (A) Party A's long-term unsecured
     and unsubordinated debt ceases to be rated at least "BBB-" or Party A's
     short-term unsecured and unsubordinated debt ceases to be rated at least
     "A-3" or is withdrawn by S&P or (B) Party A's long-term unsecured and
     unsubordinated debt ceases to be rated at least "A3" or Party A's
     short-term unsecured and unsubordinated debt ceases to be rated at least
     "Prime-2" (or if Party A does not have a short-term unsecured and
     unsubordinated debt rating from Moody's, its long-term unsecured and
     unsubordinated debt ceases to be rated at least "A3").

     (ii) If a First Rating Trigger Event occurs with respect to Party A (or any
          applicable Credit Support Provider), then (unless, within 30 days of
          such First Rating Trigger Event, each of Standard and Poor's, a
          Division of McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors
          Service, Inc. ("MOODY'S") (each a "RATING AGENCY") has reconfirmed its
          rating of the Certificates which was in effect immediately prior to
          such First Rating Trigger Event) Party A shall, within (30) days of
          such First Rating Trigger Event, at its own expense, (A) obtain an
          Eligible Guarantee in respect of all of Party A's present and future
          obligations under this Agreement, subject to the Rating Agency
          Condition with respect to S&P only, (B) transfer all or substantially
          all of its rights and obligations with respect to this Agreement to an
          Eligible Replacement (provided that Party B shall determine in its
          sole discretion, acting in a commercially reasonable manner, whether
          or not a transfer relates to all or substantially all of Party A's
          rights and obligations under this Agreement), subject to the Rating
          Agency Condition with respect to S&P only or (C) post collateral in
          accordance with the Credit Support Annex to this Agreement, subject to
          the Rating Agency Condition in respect of S&P only.

     (iii) If a Second Rating Trigger Event occurs with respect to Party A (or
          any applicable Credit Support Provider), then, within 10 Business Days
          of such Second Rating Trigger Event with respect to S&P, Party A will
          at its own cost use commercially reasonable efforts to, as soon as
          reasonably practicable, either (A) obtain an Eligible Guarantee in
          respect of all of Party A's present and future obligations under this
          Agreement, subject to the Rating Agency Condition with respect to S&P
          only, or (B) transfer all or substantially all of its rights and
          obligations with respect to this Agreement to an Eligible Replacement
          (provided that Party B shall determine in its sole discretion, acting
          in a commercially reasonable manner, whether or not a transfer relates
          to all or

                                     Q-4-32

<PAGE>

          substantially all of Party A's rights and obligations under this
          Agreement), subject to the Rating Agency Condition with respect to S&P
          only.

(EE) TRANSFERS.

     (i) Section 7 is hereby amended to read in its entirety as follows:

     "Subject to Section 6(b)(ii), Part 5(i) and Part 5(k), neither Party A nor
     Party B is permitted to assign, novate or transfer (whether by way of
     security or otherwise) as a whole or in part any of its rights, obligations
     or interests under the Agreement or any Transaction without (a) the prior
     written consent of the other party and (b) satisfaction of the Rating
     Agency Condition with respect to S&P."

     (ii) If an Eligible Replacement has made a Firm Offer (which remains an
     offer that will become legally binding upon acceptance by Party B) to be
     the transferee pursuant to a Permitted Transfer, Party B shall, at Party
     A's written request and at Party A's expense, take any reasonable steps
     required to be taken by Party B to effect such transfer.

     "PERMITTED TRANSFER" means a transfer by novation by Party A to a
     transferee (the "Transferee") of all, but not less than all, of Party A's
     rights, liabilities, duties and obligations under this Agreement, with
     respect to which transfer each of the following conditions is satisfied:
     (a) the Transferee is an Eligible Replacement that is a recognized dealer
     in interest rate swaps and caps organized under the laws of the United
     States of America or a jurisdiction located in the United States of America
     (or another jurisdiction reasonably acceptable to Party B), (b) as of the
     date of such transfer neither Party B nor the Transferee would be required
     to withhold or deduct on account of Tax from any payments under this
     Agreement or would be required to gross up for such Tax under Section
     2(d)(i)(4), (c) an Event of Default or Termination Event would not occur as
     a result of such transfer, (d) Party B has consented in writing to the
     transfer, such consent not to be unreasonably withheld, (e) pursuant to a
     written instrument (the "Transfer Agreement"), the Transferee acquires and
     assumes all rights and obligations of Party A under the Agreement and the
     relevant Transaction, (f) Party B shall have determined, in its sole
     discretion, acting in a commercially reasonable manner, that such Transfer
     Agreement is effective to transfer to the Transferee all, but not less than
     all, of Party A's rights and obligations under the Agreement and all
     relevant Transactions; (g) Party A will be responsible for any costs or
     expenses incurred in connection with such transfer (including any
     replacement cost of entering into a replacement transaction); (h) either
     (A) Moody's has been given prior written notice of such transfer and the
     Rating Agency Condition is satisfied with respect to S&P or (B) each Rating
     Agency has been given prior written notice of such transfer and such
     transfer is in connection with the assignment and assumption of this
     Agreement without modification of its terms, other than party names, dates
     relevant to the effective date of such transfer, tax representations
     (provided that the representations in Part 2(a)(i) are not modified) and
     any other representations regarding the status of the substitute
     counterparty, notice information and account details; and (i) such transfer
     otherwise complies with the terms of the Pooling and Servicing Agreement.

(FF) COMPLIANCE WITH REGULATION AB

     (i) Party A acknowledges that for so long as there are reporting
     obligations with respect to this Transaction under Regulation AB
     ("REGULATION AB") under the Securities Act of 1933, as amended, and the
     Securities Exchange Act of 1934, as amended (the "1934 ACT"), the Depositor
     is required under Regulation AB, to disclose certain information set forth
     in Regulation AB regarding Party A or its group of

                                     Q-4-33

<PAGE>

     affiliated entities, if applicable, depending on the aggregate
     "significance percentage" of this Agreement and any other derivative
     contracts between Party A or its group of affiliated entities, if
     applicable, and Party B, as calculated from time to time in accordance with
     Item 1115 of Regulation AB.

     (ii) Subject to the provisions of clause (iii) below, and so long as there
     are reporting obligations with respect to this Transaction under Regulation
     AB, if the Depositor determines, reasonably and in good faith, that the
     aggregate significance percentage of this Agreement has increased to nine
     (9) percent, then the Depositor may request from Party A (such request, a
     "Hedge Disclosure Request") on a Business Day after the date of such
     determination the same information set forth in Item 1115(b) of Regulation
     AB (such requested information, subject to the last sentence of this
     paragraph, the "Hedge Financial Disclosure") that would have been required
     if the significance percentage had in fact increased to ten (10) percent.
     Party B, the Depositor or any of its agents shall provide Party A with the
     calculations and any other information reasonably requested by Party A with
     respect to the Depositor's determination that led to the Hedge Disclosure
     Request. The parties hereto further agree that the Hedge Financial
     Disclosure provided to meet the Hedge Disclosure Request may be, solely at
     Party A's option, either the information set forth in Item 1115(b)(1) or
     Item 1115(b)(2) of Regulation AB.

     (iii) So long as there are reporting obligations with respect to this
     Transaction under Regulation AB, if the Depositor determines, reasonably
     and in good faith, that the aggregate significance percentage of this
     Agreement has increased to nineteen (19) percent, then the Depositor may
     make a Hedge Disclosure Request to Party A on a Business Day after the date
     of such determination for Hedge Financial Disclosure that would have been
     required if the significance percentage had in fact increased to twenty
     (20) percent (and, accordingly, consists of the information set forth in
     Item 1115(b)(2) of Regulation AB). Party B, the Depositor or any of its
     agents shall provide Party A with the calculations and any other
     information reasonably requested by Party A with respect to the Depositor's
     determination that led to the Hedge Disclosure Request.

     (iv) Upon the occurrence of a Hedge Disclosure Request, Party A, at its own
     expense, shall (a) provide the Depositor with the Hedge Financial
     Disclosure, (b) subject to Rating Agency Condition, secure another entity
     to replace Party A as party to this Agreement on terms substantially
     similar to this Agreement which entity is able to provide the Hedge
     Financial Disclosure or (c) subject to Rating Agency Condition, obtain a
     guaranty of Party A's obligations under this Agreement from an affiliate of
     Party A that is able to provide the Hedge Financial Disclosure, such that
     disclosure provided in respect of the affiliate will satisfy any disclosure
     requirements applicable to Party A, and cause such affiliate to provide
     Hedge Financial Disclosure. For purposes of clause (b) above, the parties
     agree that National Westminster Bank Plc ("NATWEST") shall be an acceptable
     replacement for Party A, so long as NatWest satisfies the conditions
     specified in such clause (b). If permitted by Regulation AB, any required
     Hedge Financial Disclosure may be provided by incorporation by reference
     from reports filed pursuant to the 1934 Act.

     (v) Party A agrees that, if it responds to a Hedge Disclosure Request by
     providing Hedge Financial Disclosure, then, for so long as the Depositor
     has reporting obligations under the 1934 Act with respect to this
     Transaction, it will provide any updates to Hedge Financial Disclosure
     within 5 Business Days following the availability thereof. If permitted by
     Regulation AB, any such update may be provided by incorporation by
     reference from reports filed pursuant to the 1934 Act.

                                     Q-4-34

<PAGE>

     (vi) All information provided pursuant to this Part 5(k) shall be in a form
     suitable for conversion to the format required for filing by the Depositor
     with the Commission via the Electronic Data Gathering and Retrieval System
     (EDGAR). The parties hereto acknowledge that electronic files in Adobe
     Acrobat format will be deemed to satisfy the requirements of this Part
     5(k)(vi).

(GG) AMENDMENT. Notwithstanding any provision to the contrary in this Agreement,
     no amendment, modification, or waiver of either this Agreement or any
     Transaction under this Agreement shall be permitted by either party unless
     each of the Rating Agencies has been provided prior written notice of the
     same and S&P confirms in writing (including by facsimile transmission) that
     it will not downgrade, withdraw or otherwise modify its then-current
     ratings of the Certificates.

(HH) SEVERABILITY. If any term, provision, covenant, or condition of the
     Agreement, or the application thereof to any other party or circumstance,
     shall be held invalid or unenforceable (in whole or in part) for any
     reason, the remaining terms, provisions, covenants, and conditions hereof
     shall continue in full force and effect as if the Agreement has been
     executed with the invalid or unenforceable provision portion eliminated, so
     long as the Agreement as so modified continues to express, without material
     change, the original intentions of the parties as to the subject matter of
     the Agreement and the deletion of such portion of the Agreement will not
     substantially impair the respective benefits or expectations of the
     parties. The parties shall endeavor to engage in good faith negotiations to
     replace any invalid or unenforceable term, provision, covenant or
     conditions with a valid or enforceable term, provision, covenant or
     condition, the economic effect of which comes as close as possible to that
     of the invalid or unenforceable term, provision, covenant or condition.

(II) COUNTERPARTS. This Agreement may be executed in several counterparts, each
     of which shall be deemed an original but all of which together shall
     constitute one and the same instrument.

(JJ) USA PATRIOT ACT NOTICE. Party A hereby notifies Party B that pursuant to
     the requirements of the USA PATRIOT ACT (Title III of Pub. L. 107-56
     (signed into law October 26, 2001)) (the "ACT"), it is required to obtain,
     verify and record information that identifies Party B, which information
     includes the name and address of Party B and other information that will
     allow Party A to identify Party B in accordance with the Act.

(KK) AGENCY ROLE OF GREENWICH CAPITAL MARKETS, INC. In connection with this
     Agreement, Greenwich Capital Markets, Inc. has acted as agent on behalf of
     Party A. Greenwich Capital Markets, Inc. has not guaranteed and is not
     otherwise responsible for the obligations of Party A under this Agreement.

(LL) NON-RECOURSE. Party A acknowledges and agrees that, notwithstanding any
     provision in this Agreement to the contrary, the obligations of Party B
     hereunder are limited recourse obligations of Party B, payable solely from
     the Assets and the proceeds thereof, in accordance with the terms of the
     Pooling and Servicing Agreement. In the event that the Assets and the
     proceeds thereof, should be insufficient to satisfy all claims outstanding
     and following the realization of the Assets and the proceeds thereof, any
     claims against or obligations of Party B under this Agreement still
     outstanding shall be extinguished and thereafter not revive. This provision
     shall survive the termination of this Agreement.

(MM) THIRD PARTY BENEFICIARY. The Depositor shall be an express third party
     beneficiary of this Agreement with respect to Party A's undertakings under
     Part 5(k) only.

                                     Q-4-35

<PAGE>

(NN) DEFINED TERMS. Terms capitalized but not defined herein or in the
     Definitions incorporated herein shall have the respective meanings
     attributed to them in the Pooling and Servicing Agreement.

(OO) MLML SHALL NOT BENEFIT. The parties hereto agree and acknowledge that
     amounts paid hereunder are not intended to benefit the holder of any class
     of certificates rated by any rating agency if such holder is Merrill Lynch
     Mortgage Lending, Inc. ("MLML") or any of its affiliates. If MLML or any of
     its affiliates receives any such amounts, it will promptly remit (or, if
     such amounts are received by an affiliate of MLML, MLML hereby agrees that
     it will cause such affiliate to promptly remit) such amounts to the
     Supplemental Interest Trust Trustee, whereupon the Supplemental Interest
     Trust Trustee will promptly remit such amounts to Party A.

(PP) In the event that the transaction to which the Pooling and Servicing
     Agreement relates does not occur, and the Merrill Lynch Mortgage Investors
     Trust, Series 2007-1 is not formed, Party A and MLML agree that MLML shall
     become Party B under this Agreement.

                      [Signature Page Immediately Follows]

                                     Q-4-36

<PAGE>

IN WITNESS WHEREOF, Party A and Party B have caused this Schedule to be duly
executed as its act and deed as of the date first written above.

THE ROYAL BANK OF SCOTLAND PLC          LA SALLE BANK, NATIONAL ASSOCIATION,
BY: GREENWICH CAPITAL MARKETS, INC.,    NOT INDIVIDUALLY, BUT SOLELY AS
AS ITS AGENT                            SUPPLEMENTAL INTEREST TRUST TRUSTEE WITH
                                        RESPECT TO THE SUPPLEMENTAL INTEREST
                                        TRUST FOR MERRILL LYNCH MORTGAGE
                                        INVESTORS TRUST, SERIES 2007-1

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

Solely with respect to Part 5(t) and Part 5(u)

MERRILL LYNCH MORTGAGE LENDING INC.

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

     (ll)

                                     Q-4-37

<PAGE>

                                    EXHIBIT R

                        FORM OF ASSESSMENT OF COMPLIANCE

                                     [DATE]

(1)  [Name of Servicing Entity] ("XYZ") is responsible for assessing compliance
     with the servicing criteria applicable to it under paragraph (d) of Item
     1122 of Regulation AB, as of and for the 12-month period ending [December
     31, _____] (the "Reporting Period"), as set forth in Appendix ____ hereto.
     The transactions covered by this report are attached hereto as Appendix B
     and include asset-backed securities transactions for which Wilshire has
     acted as a servicer involving residential mortgage loans (the
     "Platform").The transactions covered by this report include asset-backed
     securities transactions [for which XYZ acted as [master servicer, servicer,
     trustee, securities administrator, custodian] (the "Platform");

(2)  XYZ has engaged certain vendors (the "Vendors") to perform specific,
     limited or scripted activities, and XYZ elects to take responsibility for
     assessing compliance with the servicing criteria or portion of the
     servicing criteria applicable to such Vendors' activities as set forth in
     Appendix ___ hereto;

(3)  Except as set forth in paragraph 4 below, XYZ used the criteria set forth
     in paragraph (d) of Item 1122 of Regulation AB to assess the compliance
     with the applicable servicing criteria;

(4)  The criteria referred to as "inapplicable servicing criteria" on Appendix
     ___ hereto are inapplicable to XYZ based on the activities it performs,
     directly or through its Vendors, with respect to the Platform;

(5)  XYZ has complied, in all material respects, with the applicable servicing
     criteria as of [December 31, _____] and for the Reporting Period with
     respect to the Platform taken as a whole[, except as described on Appendix
     B hereto];

(6)  XYZ has not identified and is not aware of any material instance of
     noncompliance by the Vendors with the applicable servicing criteria as of
     [December 31, _____] and for the Reporting Period with respect to the
     Platform taken as a whole [, except as described on Appendix ____ hereto];

(7)  XYZ has not identified any material deficiency in its policies and
     procedures to monitor the compliance by the Vendors with the applicable
     servicing criteria as of [December 31, ______] and for the Reporting Period
     with respect to the Platform taken as a whole [, except as described on
     Appendix B hereto]; and

(8)  [_____________], a registered public accounting firm, has issued an
     attestation report on XYZ's assessment of compliance with the applicable
     servicing criteria for the Reporting Period.

[Date of Certification]                 [Name of Servicing Entity]

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

                                       R-1
<PAGE>

                                    EXHIBIT S

                       SERVICING CRITERIA TO BE ADDRESSED
                           IN ASSESSMENT OF COMPLIANCE
                          (RMBS unless otherwise noted)

DEFINITIONS                                                    KEY: ____________

PRIMARY SERVICER - transaction party having borrower contact   X - obligation

TRUSTEE - fiduciary of the transaction and safe keeper of certain pool assets

CUSTODIAN - safe keeper of certain pool assets

WHERE THERE ARE MULTIPLE CHECKS FOR CRITERIA THE ATTESTING PARTY WILL IDENTIFY
IN THEIR MANAGEMENT ASSERTION THAT THEY ARE ATTESTING ONLY TO THE PORTION OF THE
DISTRIBUTION CHAIN THEY ARE RESPONSIBLE FOR IN THE RELATED TRANSACTION
AGREEMENTS.

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
                   GENERAL SERVICING CONSIDERATIONS

1122(d)(1)(i)      Policies and procedures are                X               X         Servicer and Trustee each
                   instituted to monitor any                                            responsible only to the
                   performance or other triggers                                        extent that each party, as
                   and events of default in                                             applicable, has actual
                   accordance with the transaction                                      knowledge or written
                   agreements.                                                          notice with respect to
                                                                                        parties other than itself.

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

1122(d)(1)(iii)    Any requirements in the                   N/A             N/A
                   transaction agreements to
                   maintain a back-up servicer for
                   the Pool Assets are maintained.

1122(d)(1)(iv)     A fidelity bond and errors and             X
                   omissions policy is in effect
                   on the party
</TABLE>

                                       S-1

<PAGE>

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
                   participating in the servicing
                   function throughout the reporting
                   period in the amount of coverage
                   required by and otherwise in
                   accordance with the terms of
                   the transaction agreements.

                   CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)      Payments on pool assets are                X               X         Servicer and Trustee each
                   deposited into the appropriate                                       responsible only for
                   custodial bank accounts and                                          deposits into the accounts
                   related bank clearing accounts                                       held by it.
                   no more than two business days
                   following receipt, or such
                   other number of days specified
                   in the transaction agreements.

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

1122(d)(2)(iii)    Advances of funds or guarantees            X
                   regarding collections, cash
                   flows or distributions, and any
                   interest or other fees charged
                   for such advances, are made,
                   reviewed and approved as
                   specified in the transaction
                   agreements.

1122(d)(2)(iv)     The related accounts for the               X               X
                   transaction, such as cash
                   reserve accounts or accounts
                   established as a form of over
                   collateralization, are
                   separately maintained (e.g.,
                   with respect to commingling of
                   cash) as set forth in the
                   transaction agreements.

1122(d)(2)(v)      Each custodial account is                  X               X
                   maintained at a federally
</TABLE>

                                       S-2

<PAGE>

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
                   insured depository institution
                   as set forth in the transaction
                   agreements. For purposes of
                   this criterion, "federally
                   insured depository institution"
                   with respect to a foreign
                   financial institution means a
                   foreign financial institution
                   that meets the requirements of
                   Rule 13k-1(b)(1) of the
                   Securities Exchange Act.

1122(d)(2)(vi)     Unissued checks are safeguarded            X               X
                   so as to prevent unauthorized
                   access.

1122(d)(2)(vii)    Reconciliations are prepared on            X               X
                   a monthly basis for all
                   asset-backed securities related
                   bank accounts, including
                   custodial accounts and related
                   bank clearing accounts. These
                   reconciliations are (A)
                   mathematically accurate; (B)
                   prepared within 30 calendar
                   days after the bank statement
                   cutoff date, or such other
                   number of days specified in the
                   transaction agreements; (C)
                   reviewed and approved by
                   someone other than the person
                   who prepared the
                   reconciliation; and (D) contain
                   explanations for reconciling
                   items. These reconciling items
                   are resolved within 90 calendar
                   days of their original
                   identification, or such other
                   number of days specified in the
                   transaction agreements.

                   INVESTOR REMITTANCES AND
                   REPORTING

1122(d)(3)(i)      Reports to investors,                      X               X
</TABLE>

                                       S-3

<PAGE>

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
                   including those to be filed with
                   the Commission, are maintained in
                   accordance with the transaction
                   agreements and applicable
                   Commission requirements.
                   Specifically, such reports (A)
                   are prepared in accordance with
                   timeframes and other terms set
                   forth in the transaction
                   agreements; (B) provide
                   information calculated in
                   accordance with the terms
                   specified in the transaction
                   agreements; (C) are filed with
                   the Commission as required by
                   its rules and regulations; and
                   (D) agree with investors' or
                   the trustee's records as to the
                   total unpaid principal balance
                   and number of Pool Assets
                   serviced by the Servicer.

1122(d)(3)(ii)     Amounts due to investors are               X               X         Servicer remits cash and
                   allocated and remitted in                                            loan level data to Trustee
                   accordance with timeframes,                                          based on timelines
                   distribution priority and other                                      established in the Pooling
                   terms set forth in the                                               and Servicing Agreement.
                   transaction agreements.                                              The Trustee is responsible
                                                                                        for the allocation of
                                                                                        funds to
                                                                                        Certificateholders using
                                                                                        the appropriate
                                                                                        distribution priority as
                                                                                        established by the Pooling
                                                                                        and Servicing Agreement.

1122(d)(3)(iii)    Disbursements made to an                                   X         Trustee disburses funds to
                   investor are posted within two                                       Certificateholders.
                   business days to the Servicer's
                   investor records, or such other
                   number of days
</TABLE>

                                       S-4

<PAGE>

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
                   specified in the transaction
                   agreements.

1122(d)(3)(iv)     Amounts remitted to investors              X               X         Servicer remits funds and
                   per the investor reports agree                                       provides certain investor
                   with cancelled checks, or other                                      reports to Trustee within
                   form of payment, or custodial                                        guidelines and timeframes
                   bank statements.                                                     established in Pooling and
                                                                                        Servicing Agreement.
                                                                                        Trustee disburses funds to
                                                                                        certificateholders.

                   POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on pool             X               X
                   assets is maintained as
                   required by the transaction
                   agreements or related pool
                   asset documents.

1122(d)(4)(ii)     Pool assets and related                    X               X
                   documents are safeguarded as
                   required by the transaction
                   agreements.

1122(d)(4)(iii)    Any additions, removals or                 X               X         Trustee shall only review,
                   substitutions to the asset pool                                      not approve, such
                   are made, reviewed and approved                                      additions, removals or
                   in accordance with any                                               substitutions in
                   conditions or requirements in                                        accordance with the
                   the transaction agreements.                                          transaction agreements.

1122(d)(4)(iv)     Payments on pool assets,                   X
                   including any payoffs, made in
                   accordance with the related
                   pool asset documents are posted
                   to the Servicer's obligor
                   records maintained no more than
                   two business days after
                   receipt, or such other number
                   of days specified in the
                   transaction agreements, and
                   allocated to principal,
                   interest or other items (e.g.,
                   escrow) in accordance with the
                   related pool asset documents.
</TABLE>

                                       S-5

<PAGE>

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
1122(d)(4)(v)      The Servicer's records                     X
                   regarding the pool assets agree
                   with the Servicer's records
                   with respect to an obligor's
                   unpaid principal balance.

1122(d)(4)(vi)     Changes with respect to the                X
                   terms or status of an obligor's
                   pool assets (e.g., loan
                   modifications or re-agings) are
                   made, reviewed and approved by
                   authorized personnel in
                   accordance with the transaction
                   agreements and related pool
                   asset documents.

1122(d)(4)(vii)    Loss mitigation or recovery                X
                   actions (e.g., forbearance
                   plans, modifications and deeds
                   in lieu of foreclosure,
                   foreclosures and repossessions,
                   as applicable) are initiated,
                   conducted and concluded in
                   accordance with the timeframes
                   or other requirements
                   established by the transaction
                   agreements.

1122(d)(4)(viii)   Records documenting collection             X
                   efforts are maintained during
                   the period a pool asset is
                   delinquent in accordance with
                   the transaction agreements.
                   Such records are maintained on
                   at least a monthly basis, or
                   such other period specified in
                   the transaction agreements, and
                   describe the entity's
                   activities in monitoring
                   delinquent pool assets
                   including, for example, phone
                   calls, letters and payment
                   rescheduling plans in cases
                   where delinquency
</TABLE>

                                       S-6

<PAGE>

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
                   is deemed temporary (e.g., illness
                   or unemployment).

1122(d)(4)(ix)     Adjustments to interest rates              X
                   or rates of return for pool
                   assets with variable rates are
                   computed based on the related
                   pool asset documents.

1122(d)(4)(x)      Regarding any funds held in                X
                   trust for an obligor (such as
                   escrow accounts): (A) such
                   funds are analyzed, in
                   accordance with the obligor's
                   pool asset documents, on at
                   least an annual basis, or such
                   other period specified in the
                   transaction agreements; (B)
                   interest on such funds is paid,
                   or credited, to obligors in
                   accordance with applicable pool
                   asset documents and state laws;
                   and (C) such funds are returned
                   to the obligor within 30
                   calendar days of full repayment
                   of the related pool assets, or
                   such other number of days
                   specified in the transaction
                   agreements.

1122(d)(4)(xi)     Payments made on behalf of an              X
                   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                 X
</TABLE>

                                       S-7

<PAGE>

<TABLE>
<CAPTION>
                                                           WILSHIRE
                                                            CREDIT
REGULATION AB                                            CORPORATION     LASALLE BANK
REFERENCE          SERVICING CRITERIA                     (SERVICER)      (TRUSTEE)       ADDITIONAL INFORMATION
----------------   ----------------------------------   -------------   -------------   --------------------------
<S>                <C>                                  <C>             <C>             <C>
                   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            X
                   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             X
                   uncollectible accounts are
                   recognized and recorded in
                   accordance with the transaction
                   agreements.

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

                                       S-8
<PAGE>

                                    EXHIBIT T

                      FORM OF SARBANES-OXLEY CERTIFICATIONS

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wilshire Credit Corporation
14523 SW Millikan Way
Suite 200
Beaverton, Oregon 97005

     Re: Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
         Certificates, Series 2007-HE1

I, [identify the certifying individual], certify that:

     1. I have reviewed the report on Form 10-K and all reports on Form 10-D
required to be filed in respect of the period covered by this report on Form
10-K of [identify the issuing entity] (the "Exchange Act periodic reports");

     2. Based on my knowledge, the Exchange Act periodic reports, taken as a
whole, do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

     3. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act periodic reports;

     4. [I am responsible for reviewing the activities performed by the
servicer(s) and based on my knowledge and the compliance review(s) conducted in
preparing the servicer compliance statement(s) required in this report under
Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic
reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the
servicing agreement(s); and]

     5. All of the reports on assessment of compliance with servicing criteria
for ABS and their related attestation reports on assessment of compliance with
servicing criteria for asset-backed securities required to be included in this
report in accordance with Item 1122 of Regulation AB and Exchange Act Rules
13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form 10-K.

                                      T-1

<PAGE>

[In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated parties [name of servicer,
sub-servicer, co-servicer, depositor or trustee].]

Date:
      -------------------

                                        ----------------------------------------
                                        [Signature]

                                        ----------------------------------------
                                        [Title]

                                      T-2

<PAGE>

                                    EXHIBIT U

                   FORM OF ITEM 1123 CERTIFICATION OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street
Chicago, Illinois 60603

Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
           Series 2007-HE1

Re: Pooling and Servicing Agreement (the "Agreement") dated as of February 1,
    2007 among Merrill Lynch Mortgage Investors, Inc., as depositor, Wilshire
    Credit Corporation, as servicer, and LaSalle Bank National Association, as
    trustee, relating to Merrill Lynch Mortgage Investors Trust, Mortgage Loan
    Asset-Backed Certificates, Series 2007-HE1

I, [identify name of certifying individual], [title of certifying individual] of
Wilshire Credit Corporation (the "Servicer"), hereby certify that:

(1) A review of the activities of the Servicer during the preceding calendar
year and of the performance of the Servicer under the Agreement has been made
under my supervision; and

(2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the Agreement in all material respects
throughout such year or a portion thereof[, or, if there has been a failure to
fulfill any such obligation in any material respect, I have specified below each
such failure known to me and the nature and status thereof].

Date:
      -------------------

                                        Wilshire Credit Corporation,
                                        as Servicer

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

                                       U-1

<PAGE>

                                    EXHIBIT V

                           FORM OF DELINQUENCY REPORT

                                [TO BE INSERTED]

                                       V-1

<PAGE>

                                   SCHEDULE X

<TABLE>
<CAPTION>
                   Item on Form 8-K                      Party Responsible
                   ----------------                      -----------------
<S>                                                      <C>
*Item 1.01- Entry into a Material Definitive Agreement   All parties
*Item 1.02- Termination of a Material Definitive
   Agreement                                             All parties
Item 1.03- Bankruptcy or Receivership                    Depositor
Item 2.04- Triggering Events that Accelerate or
   Increase a Direct Financial Obligation or an
   Obligation under an Off-Balance Sheet Arrangement     Depositor
*Item 3.03- Material Modification to Rights of
   Security Holders                                      Trustee
Item 5.03- Amendments of Articles of Incorporation or
   Bylaws; Change of Fiscal Year                         Depositor
Item 6.01- ABS Informational and Computational
   Material                                              Depositor
*Item 6.02- Change of Servicer or Trustee                Servicer, Trustee
*Item 6.03- Change in Credit Enhancement or External
   Support                                               Depositor/Trustee
*Item 6.04- Failure to Make a Required Distribution      Trustee
Item 6.05- Securities Act Updating Disclosure            Depositor
Item 7.01- Reg FD Disclosure                             Depositor
Item 8.01                                                Depositor
Item 9.01                                                Depositor
</TABLE>

                                       X-1

<PAGE>

                                   SCHEDULE Y

<TABLE>
<CAPTION>
            Item on Form 10-D                        Party Responsible
            -----------------                        -----------------
<S>                                        <C>
Item 1: Distribution and Pool              Trustee and Servicer (with respect
   Performance Information                 to underlying Mortgage Loan data)
Plus any information required by 1121
   which is NOT included on the monthly    Servicer and Trustee (to the extent
   statement to Certificateholders         required by Regulation AB)
Item 2: Legal Proceedings per Item 1117    All parties to the Pooling and
   of Regulation AB                        Servicing Agreement (as to
                                           themselves), the depositor/trustee/
                                           servicer (to the extent known) as to
                                           the issuing entity, the sponsor,
                                           1106(b) originator, any 1100(d)(1)
                                           party
Item 3: Sale of Securities and Use of      Depositor
   Proceeds
Item 4: Defaults Upon Senior Securities    Trustee
Item 5: Submission of Matters to a Vote    Trustee
   of Security Holders
Item 6: Significant Obligors of Pool       Depositor/Sponsor/Mortgage Loan
   Assets                                  Seller/Servicer
Item 7: Significant Enhancement Provider
   Information                             Depositor/Sponsor
Item 8: Other Information                  All parties to the Pooling and
                                           Servicing Agreement (as to
                                           themselves) responsible for
                                           disclosure items on Form 8-K
Item 9:  Exhibits                          Trustee
</TABLE>

                                       Y-1

<PAGE>

                                   SCHEDULE Z

<TABLE>
<CAPTION>
            Item on Form 10-K                         Party Responsible
            -----------------                         -----------------
<S>                                         <C>
Item 1B: Unresolved Staff Comments          Depositor

*Item 9B:  Other Information                Trustee and any other party
                                            responsible for disclosure items on
                                            Form 8-K
*Item 15: Exhibits, Financial Statement     Trustee/servicer/subservicers.
   Schedules                                Depositor
*Additional Item:                           All parties to the Pooling and
                                            Servicing Agreement (as to
Disclosure per Item 1117 of Regulation AB   themselves), the depositor/trustee/
                                            servicer (to the extent known) as to
                                            the issuing entity, the sponsor,
                                            1106(b) originator, any 1100(d)(1)
                                            party
*Additional Item:                           All parties to the Pooling and
Disclosure per Item 1119 of Regulation AB   Servicing Agreement, the sponsor,
                                            originator, significant obligor,
                                            enhancement or support provider
Additional Item:                            Depositor/Sponsor/Mortgage Loan
Disclosure per Item 1112(b) of Regulation   Seller/Servicer
   AB
Additional Item:                            Depositor/Sponsor
Disclosure per Items 1114(b) and 1115(b)
   of Regulation AB
</TABLE>

                                       Z-1exv10w1

 

Exhibit 10.1

Employment
Agreement

     This employment agreement (“Agreement”) is effective as of March 19, 2007 (“Effective Date”),
by and between Kreido Biofuels, Inc., a Nevada corporation located at 1140 Avenida Acaso,
Camarillo, California 93012 and Kreido’s wholly-owned subsidiary, Kreido Laboratories, Inc.
(collectively “Kreido” or the “Company”) and John M. Philpott, C.P.A., an individual (“Executive”).

Recitals

     Whereas Kreido wishes to employee Executive as its Vice President and Chief Accounting Officer
and Executive wishes to be so employed;

     Now, therefore, in consideration of the foregoing and good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties agree as follows:

Terms and Conditions

	1	 	Executive’s Duties;Title; Location. As of the Effective Date, Executive is
employed as Kreido’s Vice President and Chief Accounting Officer under the terms and
conditions below. Executive will report to the Company’s CEO. Executive’s duties include,
without limitation, managing the Company’s budgeting, financial reporting, SEC filings,
internal financial controls, Sarbanes Oxley compliance, developing all related systems and
infrastructure to support the accounting function within the Company, and such other matters
that are reasonable within the scope of Executive’s expertise. Executive shall dedicate his
full-time efforts to Kreido’s business and shall work at Kreido’s Camarillo, California,
office or such other location as Kreido deems appropriate; provided, however, that Executive
shall not be required routinely to provide services outside of a reasonable commuting distance
from the current Camarillo office except when traveling on Kreido business.

	2	 	Term and Termination. The Term of this Agreement shall commence on March 19,
2007. The Term shall continue for one (1) year unless it is terminated earlier as provided
below in Sections 6, 7 and 8.

	3	 	Hours. The Executive’s normal days and hours of work shall coincide with the
Company’s regular business hours. The nature of the Executive’s duties requires flexibility
in the days and hours that the Executive must work, and is likely to require the Executive to
work on other and additional days and hours.

1 of 13

 

	4	 	Compensation.
	 
	 	 	Cash Compensation.

4.1.1 Base Salary. Executive shall receive a base salary of $185,000 in accordance with
Kreido’s regular payroll practices.

4.1.2 Bonus. So long as Executive is employed hereunder, Executive shall be entitled to
participate in a performance-based executive bonus plan (“Bonus Plan”) that shall be
promulgated by the Compensation Committee of the Company’s board of directors each
fiscal year. The Bonus Plan will set forth three levels of target performance goals
“TPGs” which, if achieved, will entitled the Executive to a bonus of either 20%, 35% or
50% of the Executive’s Base Salary. The TPGs will consist of a combination of goals for
the Executive’s individual performance and the Company’s overall performance in a ratio
of 75% Company performance and 25% individual Executive performance. Bonuses paid under
the Bonus Plan, if any, will be paid annually within 60 days after the end of the fiscal
year.

4.1.3. Stock Options. Upon the execution of this Agreement, Executive shall be entitled
to participate in the Kreido Biofuels 2006 Equity Incentive Plan (“Plan”). Executive’s
participation in the Plan shall be governed by the terms and conditions set forth in the
applicable Plan documents. Capitalized words not defined in this Agreement but used in
this Section shall have the meanings ascribed to them in the Plan.

	 	4.1.3	 	(a) Grant of Options. On the Effective Date, the Company
will grant Executive an option to purchase 150,000 shares of the Company’s
common voting stock under the Plan (the “Options”). Subsequently, the
Executive shall be eligible for such additional grants of options and other
permissible grants (collectively “Awards”) under the Plan as the Compensation
Committee of the board of directors of the Company shall determine in its
absolute discretion.
	 
	 	4.1.3	 	(b) Option Exercise Price; Term. The per share
exercise price of the Option shall be the closing bid price per share of
Company common stock on the date of grant. The Term of the Option shall be
ten years from the date of grant.
	 
	 	4.1.3	 	(c) Vesting and Exercise. The Options shall vest
and be exercisable as follows: 150,000 options shall vest in eight equal
installments of 18,750 options per calendar quarter beginning with the
quarter that ends on June 30, 2007 (“Quarterly Grant(s)”). Each such
Quarterly Grant shall remain exercisable for a period of ten years from the
date of grant, subject to vesting and Section 4.1.3(e).
	 
	 	4.1.3	 	(d) Lock-Up Agreement. The Executive shall enter
into a Lock-Up Agreement with the Company in the form attached hereto as
Exhibit B. During any period that Executive is precluded by the
Lock-Up Agreement from exercising the Option granted to Executive in Section
4.1.3(a), then the exercise period in Section 4.1.3(b) will be extended by
the amount of time during which Executive could not exercise the Option, but
in no event beyond ten years from the date of grant.

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	 	4.1.3	 	(e) Termination of Service; Accelerated Vesting.
	 
	 	 	 	(i) If the Executive’s employment is terminated by the Company for Cause as
such term is defined below in Sections 7.1.1 (A), (B) or (C), (1) all
unvested Quarterly Grants shall expire immediately effective the date of
termination, and (2) all vested Quarterly Grants shall expire thirty days
following the date of such termination unless and to the extent that within
said 30-day period Executive shall exercise any or all such vested Quarterly
Grants and pay the full exercise price of such shares as provided for in
4.1.3(f).
	 
	 	 	 	(ii) If the Executive’s employment is terminated voluntarily by the Executive
without Good Reason as such term is defined below, all unvested Quarterly
Grants shall immediately expire effective the date of termination of
employment. Vested Quarterly Grants, to the extent unexercised, shall expire
on the later of five years after the date of grant or the expiration of the
contractual Lock-Up Agreement.
	 
	 	 	 	(iii) If the Executive’s employment terminates on account of death or
Disability, as defined below, all unvested Quarterly Grants shall immediately
expire effective the date of death or termination of employment and all
vested Quarterly Grants to the extent unexercised, shall expire one year
after the date of death or Disability.
	 
	 	 	 	(iv) If the Executive’s employment is terminated (A) in connection with a
Change of Control as defined below, (B) by the Company without Cause, or (C)
by the Executive for Good Reason, one-half of all unvested Quarterly Grants
shall immediately vest and become exercisable effective the date of
termination of employment, and, to the extent unexercised, shall expire five
years from the date of termination of employment, but in no event beyond ten
years from the date of grant.
	 
	 	 	 	4.1.3(f) Payment. The full consideration for shares purchased by
the Executive upon exercise of the Option shall be paid: (a) by delivery of a
certified check payable to the order of the Company; (b) by delivery and
attestation of Mature Shares (valued at their Fair Market Value on the date
of delivery) or (c) by delivery of a properly executed exercise notice with
irrevocable instructions to a broker to deliver to the Company the amount
necessary to pay the exercise price from the sale of proceeds of a loan from
the broker with respect to the sale of such award or a broker loan secured by
Mature Shares.

	 	4.2	 	Additional Benefits.

	 	4.2.1	 	Welfare Benefit Plans. Executive shall at all times be entitled to
participate in all benefit, 401(k) and other ERISA-qualified plans made available
to senior management executives of Kreido under the same terms offered to other
senior management executives, including without limitation, health benefit coverage
for Executive’s spouse and dependant children, if any.

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	 	4.2.2	 	Expense Reimbursement. Kreido shall reimburse Executive for all
ordinary and necessary expenses reasonably incurred by Executive on Kreido’s behalf
(“Business Expenses”). Business Expenses (including travel costs) in excess of
$500.00 individually or $2,500.00 in the aggregate shall be approved in advance
except in case of emergency. Executive shall provide Kreido with documentation for
all Business Expenses at the time reimbursement is requested. In the event it is
necessary for
Executive to travel on Kreido’s behalf, Executive shall be entitled to fly and
have travel accommodations on the same level as Kreido’s other most senior
management Executives.
	 
	 	4.2.3	 	Discretionary Time Off. During his employment hereunder, Executive
shall be entitled to accrue Paid Time Off (“PTO”) in accordance with Kreido’s
regular PTO policy for all employees, but in any case not less than 10 days per
calendar year. Executive shall be entitled to additional PTO of no more than two
days per month to attend classes and study in the Executive MBA Program at the
Graduate School of Management at UCLA. Executive shall provide the Company with a
report each month of those days on which he was absent from work to attend and/or
prepare for class.
	 
	 	4.2.4	 	Reimbursement of Tuition. Company shall reimburse Executive 25% of
the cost of his tuition at the Executive MBA Program at the Graduate School of
Management at UCLA in which he is currently enrolled so long as he is employed
hereunder provided that he passes the coursework (“Tuition Reimbursements”). The
foregoing notwithstanding, in the event that prior to March 20, 2008, Executive
voluntarily terminates his employment without Good Reason as defined in Section 8.1
of this Agreement, or the Company terminates Executive’s employment before that
date with Cause as defined in Section 7.1, then all Tuition Reimbursements shall be
deemed to have been payroll advances to Executive (“Payroll Advances”). All such
payroll advances shall be recoupable against any accrued payroll and/or accrued but
unused Paid Time Off due to Executive at the time of the termination of his
employment. If any balance remains thereafter on such Payroll Advances, Executive
agrees to remit the balance to the Company within 10 days after the termination of
his employment.

	5	 	Proprietary Covenants of Executive.

	 	5.1	 	No Conflicts Of Interest. Executive acknowledges that she/he is bound to use good
judgment, to adhere to the highest ethical standards, and to avoid situations that create
an actual, potential, or apparent conflict of interest. Executive warrants and represents
to Kreido that she/he is currently unaware of any actual, potential, or apparent conflicts
of interest. She/he also agrees to immediately disclose to the CEO or Chairperson of
Kreido any and all actual, potential, or apparent conflicts of interest, should they later
arise. In addition, Executive further represents and warrants to Kreido that for so long
as he is employed by the Company, he shall inform the Company of each and every business
opportunity presented to the Executive that arises that could be feasible for the Company
to undertake, and that he will not, directly or indirectly, exploit any such opportunity
for his own account or the account of any third party.

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	 	5.2	 	Covenant Not to Use or Disclose Confidential Information.

	 	5.2.1	 	Definition of Confidential Information. For purposes of this Agreement, the
term Confidential Information means all and any confidential information and/or trade
secrets of Kreido, including without limitation, scientific discoveries, recipes,
formulations, information encompassed in all advertising and marketing plans, customer
lists, costs, pricing information, information concerning software and all concepts or
ideas, in or reasonably related to the business of Kreido. Confidential Information
shall not include any Kreido information that has been voluntarily disclosed to the
public by Kreido, independently developed and disclosed by others, or otherwise enters
the public domain through lawful means.
	 
	 	5.2.2	 	Non-disclosure of Confidential Information. Executive expressly
acknowledges that in the performance of his duties and responsibilities with the
Company prior to the execution of this Agreement, he has been exposed to the trade
secrets, recipes, formulations, business and/or financial secrets and confidential
and proprietary information of the Company, its affiliates and/or its clients,
business partners or customers (“Confidential Information”) and that he
will continue to be exposed to the Confidential Information after the execution of
this Agreement. During his employment and after the termination of his employment,
Executive shall regard and preserve as confidential all Confidential Information
pertaining to Kreido and its affiliates that have been or may be obtained by
Executive in any way by reason of Executive’s employment by Kreido. Executive
shall not, without the prior and specific written consent of Kreido, or unless
ordered to do so by court order or subpoena (i) use, publicize, release or disclose
to others, either during or after the period of employment, Confidential
Information or (ii) take, retain or copy any Kreido executive compensation plans,
Executive benefit plans, business plans, customer lists, costs, pricing
information, documents, reports, information encompassed in advertising and
marketing plans, or other concepts or ideas, in or reasonably related to the
business of Kreido. Executive agrees to notify Kreido’s CEO within two (2)
business days of receipt of any court order or subpoena to his or any individual
which calls for information deemed Confidential under this Agreement and to give
Kreido reasonable opportunity to contest the subpoena.

	 	5.3	 	Covenant Not to Interfere With Kreido’s Business Relationships. During his
employment and for a period of three (3) years after the termination of his employment,
executive shall not, whether for Executive’s own account or for the account of a
third-party, solicit or endeavor to entice any Executive, client, customer or vendor of
Kreido to end any business and/or contractual relationship with Kreido.

	 	5.4	 	Ownership and Use of Materials.

	 	5.4.1	 	Kreido Materials. Executive agrees that all information encompassed
in all executive compensation plans, Executive benefit plans, business plans,
advertising plans and marketing materials and other Confidential Information
concerning Kreido, its Executives and shareholders, customer lists, costs, pricing
information, documents, reports, plans, proposals or other items made or created by
Executive or that come into Executive’s possession during the Term are the property
of Kreido and shall not be used by Executive in any way after the Term. Executive

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	 	 	 	shall not deliver, reproduce or in any way allow such documents, or things to be
delivered to be used by any third party without specific written direction or
consent of a duly authorized representative of Kreido.

	 	5.4.2	 	Delivery of Materials. Upon termination of this Agreement, Executive
shall promptly deliver to Kreido all of its executive compensation plans, Executive
benefit plans, business plans, advertising plans and marketing materials and other
Confidential Information concerning Kreido, its Executives and shareholders,
customer lists, costs, pricing information, documents, reports, plans, proposals or
other items made or created by Executive during the period of employment.

	6.	 	Termination Due to Death or Disability. If Executive dies during the employment,
Executive’s employment shall automatically cease and terminate as of the date of Executive’s
death. In the event of Executive’s disability for a period of 120 consecutive days during any
365-day period, Company shall thereafter have the right, upon written notice to Executive, to
terminate this Agreement, in which case the date of termination shall be the date of such
written notice to Executive. As used herein,
“disability” means a physical and/or mental disability of Executive that prevents Executive from
substantially performing the essential functions of his position even with reasonable
accommodation (“Disability”). In the event of the termination of Executive’s employment due to
his death or Disability, Executive’s estate and/or Executive shall be entitled to receive: (i) a
lump sum cash payment, payable within ten (10) business days after the date of death equal to the
sum of any accrued but unpaid salary and bonus as of the date of death; and (ii) earned Executive
benefits, perquisites and reimbursements described in Section 4 inclusive, if any, as to which
Executive may be entitled hereunder or under Executive benefit plans, programs and arrangements
of Kreido through the date of death. In the event of the termination of Executive’s employment
due to Disability, Executive shall not be entitled to any severance pay.

7. Termination by Kreido.

	 	7.1	 	Termination for Cause.

	 	7.1.1	 	Definition of Cause. The term “Cause” for purposes of this Agreement
means all of the following, any one of which will constitute a material breach of
this Agreement unless cured pursuant to Section 7.1.2 (“Material Breach”): (A) Any
willful act by Executive that causes the Company materially to violate any
applicable law; (B) Executive’s commission of any material act of dishonesty in
connection with his employment; (C) Executive’s conviction of or plea of nolo
contendere to any felony or any offense involving moral turpitude ; (D) Executive’s
being intoxicated by alcohol or his use of or being under the influence of illegal
drugs during working time; (E) Executive’s breach of his fiduciary duties to the
Company; (F) Executive’s unjustifiable failure to comply with the reasonable and
legal directives of the Company that are communicated to him in writing; (G)
Executive’s unjustifiable failure to disclose to Kreido any and all actual,
potential, or apparent conflicts of interest that may later arise; (H) The willful
or gross failure of Executive substantially to perform the duties of his employment
hereunder; and (I) A breach by Executive of any material provision of this
Agreement.

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	 	7.1.2	 	The foregoing notwithstanding, if a Material Breach is susceptible of
being cured, Kreido shall provide Executive with written notice of such Curable
Breach within five business days after Kreido first learns of the Curable Breach.
Executive will then have fifteen business days in which to cure the breach. Should
Executive fail to cure a Curable Breach to Kreido’s reasonable satisfaction by the
end of the 15-business day cure period, Kreido may terminate his employment
immediately upon written notice to Executive. If a Material Breach is not
susceptible of being cured, Kreido may terminate Executive’s employment immediately
upon written notice to Executive.

	 	7.1.3	 	Entitlements Upon a Termination for Cause. In the event of the
termination of the Executive’s employment hereunder due to a termination by the
Company for Cause, then Executive shall be entitled to receive: (i) a lump sum
cash payment, payable immediately upon the termination of Executive’s employment,
equal to the sum of any accrued but unpaid base salary as of the date of such
termination; and (ii) earned Executive benefits, if any, as to which Executive may
be entitled hereunder or under Executive benefit plans, programs and arrangements
of Kreido.

	 	7.2	 	Termination Without Cause. Kreido may terminate Executive’s employment
hereunder without Cause at any time by providing Executive written notice of such
termination. If Executive’s employment is terminated without Cause, the termination
shall take effect on the effective date of written notice (pursuant to Section 11.11)
of such termination to Executive. In the event of the termination of Executive’s
employment hereunder due to a termination by Kreido without Cause (other than due to Executive’s death), Executive
shall be entitled to: (i) a lump sum cash payment, payable immediately upon the
termination of Executive’s employment, equal to the sum of any accrued but unpaid
base salary as of the date of such termination; (ii) earned Executive benefits, if
any, as to which Executive may be entitled hereunder or under Executive benefit
plans, programs and arrangements of Kreido through the date of his termination; and
(iii) severance pay on the date of the Termination without Cause equal to the
following amounts: (A) If Executive’s employment is terminated on or before April
1, 2008, six (6) months’ pay; (B) If Executive’s employment is terminated after
April 1, 2008, but less than 5 full years after he becomes employed hereunder,
Executive shall be entitled to severance pay in the amount of nine (9) months’ pay;
(C) If Executive is employed hereunder by Kreido for 5 years or more, Executive shall
be entitled to severance pay in the amount of twelve (12) months’ pay. Severance pay
under this Section 7.2 shall include Executive’s salary (at its then current rate),
earned bonus, and expense reimbursement, if applicable).

	8.	 	Termination by Executive.

	 	8.1	 	Termination Without Good Reason. Executive shall have the right to terminate
Executive’s employment hereunder at any time without Good Reason (as defined below)
upon written notice of such termination to Kreido. A voluntary termination by
Executive in accordance with this Section 8.1 shall not be deemed a breach of this
Agreement. Upon any voluntary termination of employment by Executive pursuant to this
Section 8.1, she/he shall have the same entitlements as provided in Section 7.1.3 in
the case of a termination by Kreido for Cause.

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	 	8.2	 	Termination With Good Reason. The following events constitute grounds for
Executive to terminate his employment for good reason (“Good Reason”):

	 	(i)	 	the removal of Executive from the position specified in
Section 1 without
Cause;
	 
	 	(ii)	 	a material diminution in Executive’s salary, duties or title;
	 
	 	(iii)	 	the assignment to Executive of duties which are materially
inconsistent with his position or which materially impair his ability to
perform his duties;
	 
	 	(iv)	 	any termination of the Executive’s employment by the
Company, other than a termination for Cause, within 12 months after a Change
of Control. For purposes of this Agreement, “Change of Control” means the
occurrence of, or the Company’s Board votes to approve: (A) any
consolidation or merger of the Company pursuant to which the stockholders of
the Company immediately before the transaction do not retain immediately
after the transaction, in substantially the same proportions as their
ownership of shares of the Company’s voting stock immediately before the
transaction, direct or indirect beneficial ownership of more than 50% of the
total combined voting power of the outstanding voting securities of the
surviving business entity; (B) any sale, lease, exchange or other transfer
(in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Company other than any sale, lease,
exchange or other transfer to any company where the Company owns, directly or
indirectly, 100% of the outstanding voting securities of such company after
any such transfer; (C) the direct or indirect sale or exchange
in a single or series of related transactions by the stockholders of the Company
of more than 50% of the voting stock of the Company.
	 
	 	(v)	 	the foregoing notwithstanding, i, ii, and iii above will
not constitute Good Reason unless Executive first notifies Kreido in writing
describing the event(s) that constitutes Good Reason (Executive’s Notice of
Good Reason ) and unless Kreido thereafter fails to cure such event(s) within
fifteen business days after Executive delivers Executive’s Notice of Good
Reason to Kreido (“Kreido’s Cure Period”). It will be incumbent upon
Executive to deliver Executive’s Notice of Good Reason to Kreido within five
business days after making a good faith determination that an event
constituting Good Reason has occurred.

	 	8.2.1	 	Entitlements Upon a Termination for Good Reason. Upon Executive’s
termination of his full-time employment for Good Reason in accordance with Section
8.2 hereof, Executive shall have the same entitlements as provided under Section 7.2
for a termination by Kreido without Cause.

	9.	 	Right to Assign. This Agreement shall be assignable only by Kreido.

	10.	 	Miscellaneous Terms.

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	 	10.1	 	Post-Termination Defense of Claims. In the event that Executive and/or Kreido
are named as defendants in any legal proceeding arising from the operation of Kreido’s
business, Kreido shall defend, indemnify and hold Executive harmless to the full extent
required by law. Kreido shall provide Executive with defense counsel of Kreido’s
choosing, but who is also reasonably acceptable to Executive. In the event Executive’s
interests in the proceeding are adverse to Kreido’s interests, Kreido shall provide
Executive with the reasonable costs and fees of an attorney of Executive’s choosing.
	 
	 	10.2	 	Alternative Dispute Resolution; Mediation Before Arbitration.

	 	10.2.1	 	Arbitrable Disputes. To the fullest extent allowed by law, any controversy,
claim, or dispute between Executive and Kreido (and/or any of its directors,
shareholders, officers, Executives, representatives or agents) relating to or
arising out of his employment or the termination of that employment
(“Arbitrable Dispute”) will be submitted to final and binding arbitration in
Los Angeles County, California. Executive agrees to execute the Mutual
Agreement to Arbitrate attached hereto as Exhibit “A” and incorporated herein
by reference.
	 
	 	10.2.2	 	Mediation Before Arbitration. The foregoing provisions regarding
Arbitration notwithstanding, before any Arbitrable Dispute is submitted to
arbitration, the Parties agree to mediate such dispute in good faith with a
professional mediator who is also a licensed attorney experienced in the area
of employment law. If the parties cannot agree on the choice of a mediator,
each party shall select a mediator, the two of whom will then select a third
mediator who alone will conduct the mediation. In the event one party makes a
demand on the other for mediation to which such party fails to respond for a
period of thirty days, the party demanding mediation may then submit the
dispute directly to Arbitration pursuant to the Mutual Agreement to Arbitrate.

	11.	 	General Terms and Conditions.

	 	11.1	 	Waiver. The waiver by any party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any prior or subsequent
breach; provided, however, that either party to this Agreement may waive any obligation
owed to such party, if such waiver is in writing signed by an authorized signer.
	 
	 	11.2	 	Integration; Modification. This Agreement constitutes the entire understanding
and agreement between Kreido and Executive regarding its subject-matter and supersedes
all prior negotiations and agreements between them with respect to its subject-matter
whether oral or written. This Agreement may not be modified except by a writing signed
by Executive and a duly authorized officer of Kreido.
	 
	 	11.3	 	Enforceability; Severability. If any provision of this Agreement shall be
deemed invalid or unenforceable in whole or in part, such provision shall be deemed to
be modified or restricted to the extent and in the manner necessary to render the same

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	 	 	 	valid and enforceable, or shall be deemed excised from this Agreement, as the case may
require, and this Agreement shall be construed and enforced to the maximum extent
permitted by law as if such provision had been originally incorporated herein as so
modified or restricted, or as if such provision had not been originally incorporated
herein, as the case may be.

	 	11.4	 	Binding Effect. All the terms and conditions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.
	 
	 	11.5	 	Interest and Costs; Attorneys’ Fees. In the event of any legal proceeding,
litigation or alternative dispute resolution process (including arbitration and
mediation as specified in Section 10) between the Parties respecting or arising out of
this Agreement, the substantially prevailing party shall be entitled to recover its
reasonable attorneys’ fees and other costs in connection therewith, including, without
limitation, any attorneys’ fees incurred after a judgment has been entered by an
arbitrator or court of competent jurisdiction; provided, however, that if a party files
any legal proceeding, litigation or demand for arbitration other than for equitable
relief without first making a request for mediation pursuant to Section 10.3.2, that
party shall not be entitled to Attorney’s Fees and other costs regardless whether such
party would have been entitled to those Attorney’s Fees and costs hereunder or by
operation of law.
	 
	 	11.6	 	Descriptive Headings. The paragraph and section headings in this Agreement are
for convenience only and shall not control or affect the meaning or construction of any
provision of this Agreement.
	 
	 	11.7	 	Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, and all such counterparts together shall
constitute but one agreement.
	 
	 	11.8	 	Third-Party Beneficiaries. No person shall be a third-party beneficiary of
this Agreement and no person other than the parties hereto and their permitted
successors and assigns shall receive any of the benefits of this Agreement.
	 
	 	11.9	 	Applicable Law and Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of California without regard to
conflicts of laws principles.
	 
	 	11.10	 	Arms Length Agreement. This Agreement has been negotiated at arms length
between persons knowledgeable in the matters dealt with herein. Accordingly, any rule
of law or any statute, legal decision, or common law principle of similar effect that would
require interpretation of any ambiguity in this Agreement against the party that
drafted it is of no application and is hereby expressly waived. The provisions of
this Agreement shall be interpreted in a reasonable manner to effect the intentions
of the Parties hereto.
	 
	 	11.11	 	Notices. All notices, statements and other documents that any party is
required or desires to give to the other party hereunder shall be given in writing and
shall be served in person, by express mail, by certified mail, by overnight delivery or
by

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	 	 	 	facsimile at the respective addresses of the parties as set forth below, or at such
other addresses as may be designated in writing by such party in accordance with the
terms of this Section 11.11.

	 	 	 	 	 	 	 
	 

	 	If to Kreido:
	 	Kreido Biofuels, Inc.

1140 Avenida Acaso,

Camarillo, California 93012

Attention: Joel Balbien, Ph.D., CEO

Telephone: (805) 389-3499

Fax: (805) 384-0989
	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	Susan Keenberg, Esq.

1217 Acacia Avenue

Torrance, California 90501

Telephone: (310) 789-0999

Fax: (310) 789-0111	 	 
	 
	 	 	 	 	 	 
	 

	 	If to Executive:
	 	John M. Philpott, C.P.A.

1560 Menta Lane

Camarillo, CA 93010	 	 
	 
	 	 	 	 	 	 
	 	 	Delivery shall be deemed conclusively made (I) at the time of service, if personally
served, (ii) when deposited in the United States mail, properly addressed and
postage prepaid, if delivered by express mail or certified mail, (iii) upon deposit
with the private overnight deliverer, if served by overnight delivery, and (iv) at
the time of electronic facsimile transmission (as confirmed in writing), provided a
copy is mailed within twenty-four (24) hours after such transmission.

In Witness Whereof, Kreido and Executive have executed this Agreement this 19th day of
March, 2007.

This Agreement is subject to an arbitration agreement, which is attached hereto and
incorporated herein by reference.

	 	 	 	 	 	 	 
	Kreido Biofuels, Inc.	 	 	 	Executive
	 
	 	 	 	 	 	 
	By:

	 	     /s/ Joel Balbien
	 	 
	 	/s/ John M.Philpott
	 

	 	 
	 	 	 	 
	 

	 	Joel Balbien, Ph.D. 

Chief Executive Officer
	 	 	 	John M. Philpott, C.P.A.

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EXHIBIT B

March 19, 2007

Tompkins Capital Group 488 Madison 

Avenue,
New York, New York 10022 

Attention: Mr.
Mark N. Tompkins

Mr. Tompkins:

     Reference is made to that certain Term Sheet (the “Term Sheet”), dated September 1, 2006, as
amended on October 25, 2006 relating to a proposed business combination between Kreido Biofuels,
Inc. (f/k/a Gemwood Productions, Inc.), a Nevada corporation (the “Company”) and Kreido
Laboratories, a California corporation (“Kreido”), and a related private placement financing (the
“Transactions”). In connection with the Transactions, the Company, Kreido, and Kreido Acquisition
Corp., a California corporation, entered into that certain Agreement and Plan of Merger and
Reorganization (the “Merger Agreement”), dated as of January 12, 2007, pursuant to which Kreido
stockholders received common stock, par value $0.001 per share, of the Company (the “Common Stock”)
in consideration for shares of Kreido held by them at the effective time of the merger. In
consideration of the Company and Kreido entering into the Transactions, and for Tompkins Capital
Group to facilitate the Transactions and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby agrees as follows:

1. The undersigned hereby covenants and agrees, except as provided herein, not to (1) offer, sell,
contract to sell or otherwise dispose of and (2) transfer title to (a “Prohibited Sale”) any of the
shares (the “Acquired Shares”) of Common Stock acquired by the undersigned pursuant to or in
connection with the Merger Agreement (including as a result of shares owned as a Kreido
shareholder), during the period commencing on the “Closing Date” (as that term is defined in the
Term Sheet) and ending on the 12-month anniversary of the Closing Date (the “Lockup Period”),
without the prior written consent of the Company and Tompkins Capital Group (which consent shall
not be unreasonably withheld). Notwithstanding the foregoing, the undersigned shall be permitted
from time to time during the Lockup Period, without the prior written consent of the Company or
Tompkins Capital Group, as applicable, (i) to acquire shares of Common Stock pursuant to the
undersigned’s participation in the Company’s stock option plan, or (ii) to transfer all or any part
of the Acquired Shares to any family member, for estate planning purposes or to an affiliate
thereof (as such term is defined in Rule 405 under the Securities Act of 1933, as amended),
provided that such transferee agrees with the Company and Tompkins Capital Group to be bound
hereby, and in any transaction in which holders of the Common Stock of the Company participate or
have the opportunity to participate pro rata, including, without limitation, a merger,
consolidation or binding share exchange involving the Company, a disposition of the Common Stock in
connection with the exercise of any rights, warrants or other securities distributed to the
Company’s stockholders, or a tender or exchange offer for the Common Stock, and no transaction
contemplated by the foregoing clauses (i) or (ii) shall be deemed a Prohibited Sale for purposes of
this Letter Agreement. All shares of Common Stock and related warrants purchased by the undersigned
pursuant to or in connection with the private placement financing

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shall not be subject to this
Letter Agreement.

2. This Letter Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to its conflict of laws principles.

3. This Letter Agreement will become a binding agreement among the undersigned as of the Closing
Date. This Letter Agreement (and the agreements reflected herein) may be terminated by the mutual
agreement of the Company, Tompkins Capital Group and the undersigned, and if not sooner terminated,
will terminate upon the expiration date of the Lockup Period. This Letter Agreement may be duly
executed by facsimile and in any number of counterparts, each of which shall be deemed an original,
and all of which together shall be deemed to constitute one and the same instrument. Signature
pages from separate identical counterparts may be combined with the same effect as if the parties
signing such signature page had signed the same counterpart. This Letter Agreement may be modified
or waived only by a separate writing signed by each of the parties hereto expressly so modifying or
waiving such agreement.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Number of shares of Common Stock owned:	 	 	 	 
	Certificate
Numbers:	 		 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]