Document:

Execution Copy
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                            ASSET PURCHASE AGREEMENT

                                     BETWEEN

                                 COMPUPAY, INC.

                                       AND

                                 TEAMSTAFF, INC.

DATED AS OF:  MAY  25, 2006

                                TABLE OF CONTENTS

                                                                            Page
ARTICLE I     DEFINITIONS......................................................1
     1.01     Definitions......................................................1
     1.02     Defined Terms....................................................5
ARTICLE II    PURCHASE AND SALE OF ASSETS......................................6
     2.01     Purchase and Sale of Assets......................................6
     2.02     The Closing......................................................9
     2.03     Purchase Price Adjustment........................................9
ARTICLE III   DELIVERIES AT CLOSING...........................................11
     3.01     Seller's Deliveries.............................................11
     3.02     Buyer's Deliveries..............................................11
ARTICLE IV    SELLER'S REPRESENTATIONS AND WARRANTIES.........................12
     4.01     Organization, Qualification and Authority.......................12
     4.02     Board Authorization.............................................12
     4.03     Legality and Enforceability.....................................12
     4.04     Litigation......................................................13
     4.05     Consents and Approvals..........................................13
     4.06     Material Contracts and Commitments..............................13
     4.07     Financial Information...........................................13
     4.08     Customers; Accounts.............................................14
     4.09     Account Agreements..............................................14
     4.10     Ownership of Assets.............................................14
     4.11     Marketable Title................................................15
     4.12     Condition of Assets.............................................15
     4.13     Intellectual Property...........................................15
     4.14     Licensure; Compliance with Laws, Regulations and Court Orders...16
     4.15     Insurance.......................................................16
     4.16     Brokerage.......................................................17
     4.17     Environmental Compliance........................................17
     4.18     Scheduled Employees.............................................17
     4.19     Tax Matters.....................................................18
     4.20     Proprietary Software and Program................................18
     4.21     Transactions with Affiliates....................................19
     4.22     Disclosure......................................................19
     4.23     Disclaimer......................................................19
ARTICLE V     BUYER REPRESENTATIONS AND WARRANTIES............................19
     5.01     Organization and Corporate Power................................19
     5.02     Authorization; Valid and Binding Agreement......................19
     5.03     No Breach.......................................................20

     5.04     Governmental Consents...........................................20
     5.05     Brokerage.......................................................20
ARTICLE VI    CONDUCT OF BUSINESS PRIOR TO CLOSING............................20
     6.01     Ordinary Course.................................................20
     6.02     Negative Covenants..............................................21
     6.03     Access..........................................................21
     6.04     Notice of Breaches, Supplemental Schedules......................22
     6.05     No Solicitation of Proposals....................................22
     6.06     Best Efforts....................................................22
ARTICLE VII   CONDITIONS TO CLOSING...........................................22
     7.01     Conditions to Obligations of Buyer..............................22
     7.02     Conditions to Obligations of Seller.............................23
ARTICLE VIII  POST-CLOSING COVENANTS..........................................24
     8.01     Seller's Covenants..............................................24
     8.02     Buyer's Covenants...............................................24
ARTICLE IX    SURVIVAL AND INDEMNIFICATION....................................25
     9.01     Survival........................................................25
     9.02     Indemnification.................................................25
     9.03     Further Assurances..............................................28
     9.04     Employment Matters..............................................28
ARTICLE X     MISCELLANEOUS...................................................28
     10.01    Termination.....................................................29
     10.02    Press Releases and Communications...............................29
     10.03    Expenses........................................................30
     10.04    Notices.........................................................30
     10.05    Assignment......................................................31
     10.06    Amendment and Waiver............................................31
     10.07    Complete Agreement..............................................31
     10.08    Counterparts....................................................31
     10.09    Governing Law...................................................31
     10.10    No Third-Party Beneficiaries....................................32
     10.11    Interpretation..................................................32
     10.12    Waiver Of Jury Trial............................................32
     10.13    Jurisdiction and Venue..........................................32
     10.14    Costs...........................................................33

                                       ii

           ASSET PURCHASE AGREEMENT, dated as of May 25, 2006, between
           COMPUPAY, INC., a Florida corporation ("BUYER") and
           TEAMSTAFF, INC., a New Jersey corporation ("SELLER").
           -----------------------------------------------------------

                                  INTRODUCTION

          Seller owns and operates the Business (defined below). Seller desires
to sell all of the assets used or held for use primarily in connection with the
Business, and Buyer desires to purchase from Seller such assets, upon the terms
and subject to the conditions set forth herein.

          In consideration of the mutual benefits to be derived from this
Agreement and of the representations, warranties, conditions, agreements and
promises contained herein and other good and valuable consideration, the parties
agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          1.01 Definitions. The following terms, as used in this Agreement,
shall have the following meanings:

          "ACCOUNTS RECEIVABLE" shall mean (a) all trade accounts receivable and
other rights to payment from Customers and the full benefit of all security for
such accounts or rights to payment, including all trade accounts receivable
representing amounts receivable in respect of services rendered to Customers,
(b) all other accounts or notes receivable of Seller and the full benefit of all
security for such accounts or notes and (c) any claim, remedy or other right
related to any of the foregoing.

          "AFFILIATE" means, with respect to any specified Person, any other
Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified
Person, including any Person holding the majority of the equity or voting
interests of any other Person.

          "AGREEMENT" means this Asset Purchase Agreement.

          "BUSINESS" means the payroll processing business of Seller, including
all of the business conducted by DSi Payroll Services, a division of TeamStaff,
Inc. Such Business consists of the provision of (i) payroll processing services
to Customers and (ii) tax filing, processing and payment services (including the
provision of tax information, such as W-2 reports) to Customers.

          "BUSINESS DAY" means any day other than a Saturday or Sunday or any
other day on which banking institutions are generally obligated or authorized to
close in the State of New Jersey.

          "CLOSING WORKING CAPITAL" means (a)(i)Accounts Receivable acquired by
Buyer at Closing (other than Accounts Receivable which Buyer has not collected
within ninety (90) days following the Closing Date and which are to be
reconveyed to Seller pursuant to 8.02(b) plus (ii) the amount in the General
Bank Account at Closing and transferred to Buyer (reduced by any payments or
withdrawals therefrom that relate to the period before the Closing Date but
which are posted thereafter), minus (b) the Assumed Liabilities. Any payments
due on the Lease shall not be deemed Assumed Liabilities for the purpose of
determining Closing Working Capital.

          "CODE" means the Internal Revenue Code of 1986, as amended.

          "CONTRACT" means any agreement, contract, note, bond, instrument,
lease, license, indenture, mortgage, deed of trust, plan or commitment, whether
written or oral, including any agreement to provide payroll processing or tax
filing, processing and payment services.

          "CUSTOMERS" means customers of Seller who are actively engaged in
business and whose most recent payroll was processed by the Business.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

          "EMPLOYEE LIABILITIES" means liabilities for payroll, benefits or
other liabilities to employees.

          "ESCROW AGENT" means Cole Taylor Bank of Chicago, Illinois.

          "ESCROW AGREEMENT" means the Escrow Agreement to be entered into
between Seller and Buyer, which Escrow Agreement will be in substantially the
form of EXHIBIT H attached hereto.

          "GAAP" means generally accepted accounting principles for financial
reporting in the United States, applied on a consistent basis.

          "GENERAL BANK ACCOUNT" means PNC Bank Account # 8026220796 in the name
of "DSi Payroll Services FBO PNC Business Credit".

          "GOVERNMENTAL AUTHORIZATION" means any consent, license, registration
or permit issued, granted, given or otherwise made available by or under the
authority of any Governmental Entity or pursuant to any Legal Requirement.

          "GOVERNMENTAL ENTITY" means any Federal, state, local or foreign
government or any court of competent jurisdiction, administrative agency or
commission or other governmental authority or instrumentality, domestic or
foreign.

          "INITIAL WORKING CAPITAL" means the greater of (x) Three Hundred Ten
Thousand Seven Hundred Dollars ($310,700) less Employee Liabilities of Seller at
Closing, or (y) Two Hundred Ten Thousand Seven Hundred Dollars ($210,700).

                                       2

          "INTELLECTUAL PROPERTY" means patents and patent applications;
trademarks and trademark applications, trademark rights and related goodwill,
including domain names, service names, service marks, trade names and design
marks (and any applications and registrations therefor); trade secrets;
copyrights, copyright registrations, and any applications therefor; domain
names, source code, software, including the Proprietary Software (as defined
below), customer lists, trade secrets and "know how" related to the operation of
the Business; any licenses for use of any of the foregoing and other similar
intellectual property and proprietary rights, whether or not subject to
statutory registration.

          "INTERIM BALANCE SHEET" means the balance sheet for the Business as of
April 30, 2006.

          "KNOWLEDGE," when used with respect to Seller, means the actual
knowledge, if any, of any of its officers or directors, including without
limitation, T. Kent Smith, Rick J. Filippelli, Greg Haygood, Kathleen Charles,
Larry Braude, Laurie Nadeau and Steve Levine.

          "LEGAL REQUIREMENT" means any federal, state, local, municipal or
other constitution, law, ordinance, principle of common law, code, regulation or
statute.

          "LIENS" means mortgages, liens, security interests, encumbrances,
leases, assignments, sub-leases, easements, covenants, rights-of-way or other
similar restrictions of any nature whatsoever.

          "MATERIAL CONTRACTS" means the third-party Contracts to which Seller
is a party that were entered into in connection with, or relate to, the
operation of, or are required to operate, the Business.

          "MONTHLY SETTLEMENT REPORT" means a report delivered to Seller by
Buyer no later than the fifth Business Day of each calendar month and setting
forth the details of all Pre-authorized Settlements in the immediately preceding
calendar month, including (i) reasonable documentation of each underlying
Qualified Asserted Liability (including a description in reasonable detail of
the nature of, and basis for, the claim and the identity of the claimant) and
(ii) the terms of each Pre-authorized Settlement.

          "PERSON" means an individual, a partnership, a limited liability
company, a limited liability partnership, a corporation, an association, a joint
stock company, a trust, a joint venture, an unincorporated organization or any
other entity or organization, domestic or foreign (including a Governmental
Entity).

          "PROPRIETARY SOFTWARE" means the programs developed by, or on behalf
of, employees and contractors of the Business, Seller or any of their
Affiliates, including the processing platform used to process Customer payrolls
(the "PROGRAM").

                                       3

          "RECORDS" means the following records relating to the Business with
respect to the period between January 1, 2004 and the Closing Date: customer
billing records.

          "REPRESENTATIVES" means, with respect to any party, its officers,
directors, employees, attorneys, accountants and agents.

          "SOFTWARE" means all computer software programs, including source code
and object code (executable) versions.

          "TAX" or "TAXES" means any Federal, state, local or foreign income,
gross receipts, capital stock, franchise, profits, estimated, payroll,
employment, environmental, withholding, social security, unemployment,
disability, real property, ad valorem/personal property, stamp, excise,
occupation, sales, use, transfer, value added, alternative minimum or other tax,
assessment, duty or similar charge of any kind, including any interest, penalty
or addition thereto, whether disputed or not.

          "TAX RETURNS" means any return, report, information return or other
document (including schedules or any related or supporting information) filed or
required to be filed with any Taxing Authority in connection with the
determination, assessment or collection of any Tax or the administration of any
laws, regulations or administrative requirements relating to any Tax.

          "TAXING AUTHORITY" means any governmental or any quasi-governmental
body exercising any taxing authority or any other authority exercising Tax
regulatory authority.

          "TRANSACTION DOCUMENTS" means this Agreement, the Bill of Sale, the
Assignment and Assumption Agreement, the Noncompetition Agreement, the
Transition Agreement, the Escrow Agreement and all other documents and
agreements provided for herein or for the purpose of effecting the transactions
contemplated herein.

          Each of the following terms is defined in the Section set forth
opposite such term:

               TERM                                    SECTION
               -------------------------------------   -------
               Account Agreements                      4.09
               Allocation Dispute                      2.01(f)
               Asserted Liability                      9.02(f)
               Assets                                  2.01(a)
               Assignment and Assumption Agreement     3.01(c)
               Assigned Contracts                      2.01(a)
               Assumed Liabilities                     2.01(c)
               Bill of Sale                            2.02(b)
               Closing                                 2.02(a)
               Closing Date                            2.02(a)
               Closing Payment                         2.01(e)
               Confidentiality Agreement               10.07
               Customer Account                        4.09
               Directo Agreement                       7.01(f)
               Equipment and Fixed Assets              2.01(a)
               Escrow Funds                            2.01(e)
               Excluded Assets                         2.01(a)

                                       4

               TERM                                    SECTION
               -------------------------------------   -------
               General Contracts                       2.01(a)
               Indemnified Party                       9.02(f)
               Indemnifying Party                      9.02(f)
               Independent Accountants                 2.03(d)
               Lease                                   2.01(a)
               Losses                                  9.02(a)
               Noncompetition Agreement                3.01(d)
               Pre-authorized Settlement               9.02(g)
               Proposal                                8.01(c)
               PSA Agreement                           7.01(f)
               Purchase Price                          2.01(e)
               Purchase Price Adjustment               2.03(a)
               Purchase Price Allocation               2.01(f)
               Qualified Asserted Liability            9.02(g)
               Retained Liabilities                    2.01(d)
               Scheduled Employee                      4.18
               Seller Financial Information            4.07
               Seller Intellectual Property            4.13
               Settlement Cap                          9.02(g)
               Transition Agreement                    3.01(g)

          1.02    Defined Terms.

                    (a) Unless otherwise specified herein, all accounting terms
          used herein shall be interpreted, all accounting determinations
          hereunder shall be made and all financial statements required to be
          delivered hereunder shall be prepared in accordance with generally
          accepted accounting principles, consistently applied.

                    (b) All references in this Agreement to "Articles",
          "Sections" and other subdivisions are to the designated Articles,
          Sections and other subdivisions of this Agreement. The words "herein",
          "hereof" and "hereunder" and other words of similar import refer to
          this Agreement and not to any particular Article, Section or other
          subdivision.

                    (c) In this Agreement, in the computation of periods of time
          from a specified date to a later specified date, the word "from" means
          "from and including" and the words "to" and "until" each mean "to but
          excluding".

                    (d) All references to "including" in this Agreement shall
          mean including without limitation.

                    (e) A reference to a law in this Agreement includes any
          amendment or modification to such law and any rules or regulations
          issued thereunder.

                                       5

                    (f) A reference to a Person in this Agreement includes its
          successors and permitted assigns (if any).

                                   ARTICLE II

                           PURCHASE AND SALE OF ASSETS

          2.01 Purchase and Sale of Assets.

                    (a) At the Closing, upon the terms and subject to the
          conditions set forth in this Agreement, Seller shall sell, assign,
          convey and transfer to Buyer and Buyer shall purchase and acquire from
          Seller, all of Seller's right, title and interest in, to and under all
          properties, assets (tangible and intangible) and rights (other than
          property, assets or rights listed on the Excluded Assets Schedule
          attached hereto (the "EXCLUDED ASSETS")), owned, held or used
          primarily in the conduct of the Business as of the Closing Date (the
          "ASSETS"), including all of Seller's right, title and interest in, to
          and under:

                              (i) All equipment, furniture, fixtures, supplies,
                    parts and other fixed assets and tangible personal property
                    owned by Seller on the Closing Date and primarily used in or
                    primarily related to the Business, including the items
                    identified on the Equipment and Fixed Assets Schedule
                    attached hereto (collectively, the "EQUIPMENT AND FIXED
                    ASSETS");

                              (ii) All Accounts Receivable of Seller as of the
                    Closing Date.

                              (iii) All Contracts primarily relating to the
                    Business, including the Contracts identified on the General
                    Contracts Schedule attached hereto, including any deposits
                    or prepayments under such Contracts (collectively, the
                    "GENERAL CONTRACTS"); provided, however, that
                    notwithstanding the foregoing, real and personal property
                    leases shall not be considered General Contracts;

                              (iv) A certain lease for computer equipment and
                    printers identified on the Leased Property Schedule attached
                    hereto, including any prepaid rents, security deposits and
                    options to renew or purchase under such lease (the "LEASE"
                    and, collectively with the General Contracts, the "ASSIGNED
                    CONTRACTS");

                              (v) All Intellectual Property (x) owned by or
                    licensed to Seller on the Closing Date and primarily used in
                    or primarily related to the Business (or under development
                    for future use primarily in the Business) or (y) listed on
                    the Intellectual Property Schedule attached hereto,
                    including the names "Digital Solutions, Inc.", "DSi" and any
                    and all derivations thereof and logos therefor, and any
                    domain names and websites, including the design thereof;

                              (vi) All reports, plans, product catalogs, sales
                    records, product literature, policies, manuals, customer
                    lists, customer information, customer contact information,
                    supplier lists, know-how, formulae, models, research and

                                       6

                    development data, computer files, retrieval programs,
                    operating data, input data, databases, charts, procedures,
                    report layouts, formats, record file layouts, diagrams, flow
                    charts and other related material developed primarily for,
                    or primarily used in connection with, the Business;

                              (vii) All Governmental Authorizations primarily
                    related to the Business (to the extent such are assignable)
                    and other intangible property rights owned by Seller on the
                    Closing Date and primarily used in or primarily related to
                    the Business;

                              (viii) The General Bank Account, together with
                    amounts on deposit therein.

                    (b) Notwithstanding the foregoing, Seller shall not sell,
          assign, convey or transfer to Buyer, and Buyer shall not purchase or
          acquire from Seller, and Buyer will not be deemed by virtue of the
          execution and delivery of this Agreement or any of the other
          Transaction Documents, or as a result of the consummation of the
          transactions contemplated in this Agreement, or in any of the other
          Transaction Documents, to have purchased or acquired, any right, title
          or interest in any property or asset of Seller except the Assets.
          Without limiting the foregoing, Buyer shall not acquire, and shall not
          be deemed to have acquired, any right, title or interest in any
          property or asset listed on the Excluded Assets Schedule attached
          hereto.

                    (c) At the Closing, upon the terms and subject to the
          conditions set forth in this Agreement, Buyer shall assume and agree
          to pay and perform only the following obligations, liabilities and
          commitments of Seller (the "ASSUMED LIABILITIES"):

                           (i) any trade account payable related to the Business
                  reflected on the Interim Balance Sheet (other than a trade
                  account payable to Seller or any Affiliate of Seller) that
                  remains unpaid at and is not delinquent as of the Closing
                  Date;

                           (ii) any trade account payable related to the
                  Business (other than a trade account payable to Seller or any
                  Affiliate of Seller) with respect to products or services
                  provided to Seller in the ordinary course of business
                  consistent with past practice between the date of the Interim
                  Balance Sheet and the Closing Date that remains unpaid at and
                  is not delinquent as of the Closing Date; and

                           (iii) obligations of Seller under the Lease arising
                  after the Closing Date.

                    (d) Notwithstanding the foregoing, and except for the
          Assumed Liabilities, Buyer does not assume or agree to pay, honor or
          discharge, and will not be deemed by virtue of the execution and
          delivery of this Agreement or any of the other Transaction Documents,
          or as a result of the consummation of the transactions contemplated in
          this Agreement, or in any of the other Transaction Documents, to have
          assumed, or to have agreed to pay, honor or discharge, any obligation,
          liability or commitment of Seller (the "RETAINED LIABILITIES").
          Without limiting the foregoing, Buyer shall not be responsible

                                       7

          for any obligation, liability or commitment of Seller arising from, in
          connection with or related to (i) Taxes arising out of, relating to or
          in respect of the Business or the Assets or use thereof for any
          taxable periods prior to the Closing Date and the portion prior to the
          Closing Date of any taxable period that includes such day, (ii) any
          Contract of Seller, including any lease obligation, other than the
          Assigned Contracts, (iii) the Assigned Contracts for any period prior
          to Closing, (iv) the operation of the Business or ownership of the
          Assets prior to the Closing, (v) the employment or termination of
          employment of any Person by Seller, including, without limitation, any
          compensation due, or benefits of, any employee or independent
          contractor earned, accrued or arising prior to the Closing, (vi) any
          liability or obligation relating to an Excluded Asset or (vii) any
          other obligation or liability of Seller whatsoever except for the
          Assumed Liabilities.

                    (e) The purchase price for the Assets shall be Nine Million
          Dollars ($9,000,000) plus or minus the Purchase Price Adjustment (the
          "PURCHASE PRICE"). At the Closing, the following consideration shall
          be delivered by Buyer towards the Purchase Price: (i) payment of an
          amount equal to Two Hundred Fifty Thousand Dollars ($250,000) to the
          Escrow Agent pursuant to the Escrow Agreement (the "ESCROW FUNDS");
          and (ii) payment of an amount equal to Eight Million Seven Hundred
          Fifty Thousand Dollars ($8,750,000) to Seller (the "CLOSING PAYMENT").
          The Purchase Price Adjustment shall be paid to Buyer or Seller, as the
          case may be in accordance with Section 2.03.

                    (f) The Purchase Price shall be allocated as follows:

                              (i) The Purchase Price shall be allocated to the
                    Noncompetition Agreement and Assets in accordance with
                    Section 1060 of the Code (the "PURCHASE PRICE ALLOCATION").
                    Within ninety (90) days after the Closing, Buyer shall
                    provide to Seller a proposed allocation of the final
                    Purchase Price determined in a manner consistent with this
                    Section 2.01(f) and the Code. Unless it provides Buyer with
                    notice of its objections thereto and the basis therefor (an
                    "ALLOCATION DISPUTE") within ten (10) Business Days after
                    the receipt of such allocation, Seller shall be deemed to
                    have agreed with such allocation.

                              (ii) Any Allocation Dispute shall be resolved in
                    the same manner as provided in Section 2.03(d) for an
                    objection to the Closing Working Capital calculation, except
                    that the costs of the Independent Accountant shall be shared
                    equally by Buyer and Seller. Buyer and Seller each shall
                    file with the Internal Revenue Service Form 8594 and any
                    other forms or statements that may be required by the Code,
                    Treasury Regulations or the Internal Revenue Service,
                    together with any and all attachments required to be filed
                    therewith in connection with such allocation, in a manner
                    consistent with the Purchase Price Allocation so determined.

                              (iii) To the extent consistent with applicable
                    law, Buyer and Seller shall not file any Tax Return or other
                    documents or otherwise take any position with respect to
                    Taxes which is inconsistent with such allocation of the
                    final Purchase

                                       8

                    Price, provided, however, that neither Buyer nor Seller
                    shall be obligated to litigate any challenge to such
                    allocation of the final Purchase Price by a Government
                    Entity.

                              (iv) Buyer and Seller shall promptly inform one
                    another of any challenge, including any challenge raised in
                    the context of an audit, by any Governmental Entity to any
                    allocation made pursuant to this subsection and agree to
                    consult with and keep one another informed with respect to
                    the state of, and any discussion, proposal or submission
                    with respect to, such challenge.

                    (g) Seller shall be responsible for obtaining all consents
          listed on the Authorization Schedule attached hereto and removing all
          Liens on the Assets (other than the Assigned Contracts) prior to
          Closing at its expense.

          2.02 The Closing.

                    (a) The closing of the purchase and sale of the Assets and
          the assumption of the Assumed Liabilities hereunder (the "CLOSING")
          shall take place at the offices of Verrill Dana, LLP in Portland,
          Maine, at 9:00 a.m. on May 31, 2006, or at such other time and place
          as the parties shall otherwise agree. The Closing shall be deemed
          effective as of 12:01 a.m. on June 1, 2006, which date and time are
          herein referred to as the "CLOSING DATE."

                    (b) At the Closing:

                              (i) Seller shall deliver to Buyer a bill of sale
                    in the form of EXHIBIT A attached hereto duly executed by
                    Seller (the "BILL OF SALE") and such other appropriate
                    instruments of transfer and assignment as Buyer shall
                    reasonably request, in order to vest in Buyer, as of the
                    Closing Date, all of Seller's right, title and interest in,
                    to and under the Assets, free and clear of any Liens other
                    than the Assigned Contracts.

                              (ii) Buyer shall deliver to Seller, by wire
                    transfer of immediately available funds, to a bank account
                    designated in writing by Seller, an amount equal to the
                    Closing Payment. Seller shall deliver to Buyer written wire
                    transfer instructions at least three Business Days prior to
                    the Closing.

                              (iii) Buyer shall deliver the Escrow Funds to the
                    Escrow Agent.

                              (iv) Buyer and Seller shall make such other
                    deliveries as are required by and in accordance with this
                    Agreement.

          2.03 Purchase Price Adjustment.

                    (a) The "PURCHASE PRICE ADJUSTMENT" (which may be a positive
          or negative number) will be equal to the amount determined by
          subtracting the (i) Closing Working

                                       9

          Capital from (ii) the Initial Working Capital. If the Purchase Price
          Adjustment is positive, the Purchase Price Adjustment shall be paid by
          wire transfer by Seller to an account specified by Buyer. If the
          Purchase Price Adjustment is negative, the difference between the
          Closing Working Capital and the Initial Working Capital shall be paid
          by wire transfer by Buyer to an account specified by Seller. Payment
          of the Purchase Price Adjustment, whether by Buyer or Seller, shall be
          made without interest. Within three (3) Business Days after the
          calculation of the Closing Working Capital becomes binding and
          conclusive on the parties, Seller or Buyer, as the case may be, shall
          make the wire transfer payment provided for in this Section 2.03.

                    (b) Buyer shall deliver its determination of the Closing
          Working Capital to Seller as soon as practicable after the date which
          is ninety (90) days following the Closing Date, but in no event later
          than the date which is one hundred five (105) days after the Closing
          Date.

                    (c) If within ten (10) days following delivery of the
          Closing Working Capital calculation Seller has not given Buyer written
          notice of its objection as to the Closing Working Capital calculation
          (which notice shall state the basis of Seller's objection), then the
          Closing Working Capital calculated by Buyer shall be binding and
          conclusive on the parties and be used in computing the Purchase Price
          Adjustment.

                    (d) If Seller duly gives Buyer such notice of objection, and
          if Seller and Buyer fail to resolve the issues outstanding with
          respect to the Closing Working Capital within thirty (30) days of
          Buyer's receipt of Seller's objection notice, Seller and Buyer shall
          submit the issues remaining in dispute to a firm of independent public
          accountants acceptable to Buyer and Seller (the "INDEPENDENT
          ACCOUNTANTS") for resolution of the issues that remain outstanding
          with respect to the calculation of Closing Working Capital applying
          the principles, policies and practices referred to in this Section
          2.03 or in the definitions of terms used herein. If issues are
          submitted to the Independent Accountants for resolution, (i) Seller
          and Buyer shall furnish or cause to be furnished to the Independent
          Accountants such work papers and other documents and information
          relating to the disputed issues as the Independent Accountants may
          request and are available to that party or its agents and shall be
          afforded the opportunity to present to the Independent Accountants any
          material relating to the disputed issues and to discuss the issues
          with the Independent Accountants; and (ii) the determination by the
          Independent Accountants of the issues that remain outstanding with
          respect to the calculation of Closing Working Capital, as set forth in
          a notice to be delivered to both Seller and Buyer within sixty (60)
          days of the submission to the Independent Accountants of the issues
          remaining in dispute, shall be final, binding and conclusive on the
          parties and shall be used in computing the Purchase Price Adjustment.

                    (e) The fees and expenses of the Independent Accountants
          incurred in the resolution of any items in dispute shall be determined
          by the Independent Accountants and set forth in their notice and shall
          be allocated and paid by Buyer and Seller in inverse proportion to the
          extent they prevailed on the items in dispute.

                                       10

                    (f) If Buyer reconveys to Seller any Account Receivable
          pursuant to Section 8.02(b), such reconveyed Accounts Receivable shall
          thereafter be treated as an Excluded Asset.

                                   ARTICLE III

                              DELIVERIES AT CLOSING

          3.01 Seller's Deliveries. Seller shall deliver to Buyer each of the
following at the Closing:

                  (a) A certificate of the chief executive officer, the chief
          financial officer or the chief operating officer of Seller in the form
          set forth in EXHIBIT B attached hereto, dated the Closing Date;

                  (b) The Bill of Sale, duly executed by Seller;

                  (c) An Assignment and Assumption Agreement, duly executed by
          Seller, substantially in the form of EXHIBIT C attached hereto (the
          "ASSIGNMENT AND ASSUMPTION AGREEMENT");

                  (d) A Noncompetition Agreement, duly executed by Seller,
          substantially in the form of EXHIBIT D attached hereto (the
          "NONCOMPETITION AGREEMENT");

                  (e) A copy of each consent listed on the Authorization
          Schedule attached hereto;

                  (f) An opinion, dated the Closing Date, of James D. Houston,
          Esq., counsel to Seller, substantially in the form of EXHIBIT E
          attached hereto;

                  (g) A Transition Agreement, duly executed by Seller,
          substantially in the form of EXHIBIT F attached hereto (the
          "TRANSITION AGREEMENT");

                  (h) Such documents as may be necessary to evidence the
          transfer of ownership of the bank account referred to in Section
          2.01(a)(viii);

                  (i) Copies of such consents necessary for the assignment of
          the Assigned Contracts as may be requested by Buyer; and

                  (j) All documents that Buyer may reasonably request relating
          to the existence of Seller and the authority and legal capacity of
          Seller to enter into this Agreement and each of the other Transaction
          Documents to which it is a party, all in form and substance reasonably
          satisfactory to Buyer.

          3.02 Buyer's Deliveries. Buyer shall deliver to Seller each of the
following at the Closing:

                                       11

                  (a) A certificate of the chief executive officer, the chief
          financial officer or the chief operating officer of Buyer in the form
          set forth in EXHIBIT G attached hereto, dated the Closing Date;

                  (b) The Assignment and Assumption Agreement, duly executed by
          Buyer;

                  (c) The Noncompetition Agreement, duly executed by Buyer;

                  (d) The Transition Agreement, duly executed by Buyer; and

                  (e) All documents that Seller may reasonably request relating
          to the existence of Buyer and the authority and legal capacity of
          Buyer to enter into this Agreement and each of the other Transaction
          Documents to which it is a party, all in form and substance reasonably
          satisfactory to Seller.

                                   ARTICLE IV

                     SELLER'S REPRESENTATIONS AND WARRANTIES

          As a material inducement to Buyer to enter into this Agreement and to
consummate the transactions contemplated herein, Seller hereby represents and
warrants to Buyer, which representations and warranties shall be true and
correct on the date hereof and as of the date of the Closing, as follows:

          4.01 Organization, Qualification and Authority. Seller is a
corporation duly organized and validly existing in its state of organization and
is in good standing and qualified to do business in all jurisdictions where
Seller conducts business except where such failure to be in good standing would
not have an adverse affect on the Business or the Assets. Seller has full power
and authority to own, lease and operate its facilities and assets as presently
owned, leased and operated and to carry on the Business as it is now being
conducted.

          4.02 Board Authorization. The Board of Directors of Seller duly
authorized the execution, delivery and performance of this Agreement and any and
all of the other Transaction Documents to which Seller is or will be a party. No
approval is required of the shareholders of Seller for the execution, delivery
and performance of this Agreement, and no other corporate proceedings on the
part of Seller are necessary to authorize the execution, delivery or performance
by Seller of this Agreement and the other Transaction Documents to which Seller
is or will be a party which has not already been obtained. The individuals
executing this Agreement and all of the other Transaction Documents to which
Seller is or will be a party on behalf of and in the name of Seller are duly
authorized and empowered to so act.

          4.03 Legality and Enforceability. This Agreement has been duly
executed and delivered by Seller and is the legal, valid and binding obligation
of Seller enforceable against Seller in accordance with its terms.

                                       12

          4.04 Litigation. There is no pending or, to the best of Seller's
Knowledge, threatened legal action relating to the transactions contemplated
herein or generally to the Business or the Assets. Seller is not a party to any
pending action, nor is Seller in receipt of any inquiry, notice, citation,
investigation or complaint from any Governmental Entity or third party that
would affect Seller's ability to perform its obligations under this Agreement or
that would adversely affect the Business or Assets.

          4.05 Consents and Approvals. Except as set forth on the Authorization
Schedule attached hereto, the execution and delivery of this Agreement and the
other Transaction Documents by Seller does not, and the consummation of the
transactions contemplated herein and therein and compliance with the terms
hereof and thereof will not, conflict with, or result in any violation of or
default (with or without notice or lapse of time, or both) under, or give rise
to a right of consent, approval, termination, cancellation or acceleration of
any obligation or to loss of a benefit under, or to any increased, additional,
accelerated or guaranteed rights or entitlement of any Person under, or result
in the creation of any lien on the properties or assets of Seller under, any
provision of (i) the certificate of incorporation or by-laws of Seller, (ii) any
Contract, (iii) any Governmental Authorization held by Seller or (iv) any
judgment, order or decree or statute, law, or Legal Requirement applicable to
Seller or its properties or assets, including the Assets. Except as set forth on
the Authorization Schedule attached hereto, no permit, consent, approval,
license, order or authorization of, or registration, declaration or filing with,
any Governmental Entity is required to be obtained or made in connection with
(a) the execution, delivery or performance of this Agreement by Seller or the
consummation by Seller of any of the transactions contemplated herein or (b) the
conduct by Buyer of the Business following the Closing as conducted on the date
hereof (other than as required by some characteristic of Buyer).

          4.06 Material Contracts and Commitments. The General Contracts
Schedule attached hereto contains a list of all Material Contracts. Except as
noted in the General Contracts Schedule attached hereto, each of the Material
Contracts is valid and in full force and effect; each is a legal, valid and
binding contract; and to the best of Seller's Knowledge, there has been no
threatened cancellation thereof or outstanding disputes thereunder. Seller has
performed all material obligations to be performed by it under the Material
Contracts. Each of the Material Contracts will continue to be binding in
accordance with its terms and inure to the benefit of Buyer after consummation
of the transactions contemplated herein (except to the extent that the General
Contracts Schedule attached hereto states that a consent to assignment is
required for such contract and such consent is not obtained). There is no
default (or an event which, with the giving of notice or lapse of time or both
would be a default) by Seller under any Material Contract; and there is no
pending or, to the best of Seller's Knowledge, threatened, bankruptcy,
insolvency or similar proceeding with respect to any other party to the Material
Contracts. There are no Material Contracts to which Seller is a party that could
reasonably be anticipated to have a material adverse effect on the value of the
Business or the Assets.

          4.07 Financial Information. Attached as part of the Financial
Information Schedule are income statements for the Business for the fiscal years
ended September 30, 2002, September 30, 2003, September 30, 2004, and September
30, 2005 and balance sheets for the Business as of September 30, 2003, September
30, 2004, September 30, 2005 and December 31, 2005 and related notes regarding
the allocation of corporate expenses, together with the Interim Balance

                                       13

Sheet (collectively, the "SELLER FINANCIAL INFORMATION"). The Seller Financial
Information is accurate and complete in all material respects and presents
fairly the position of the Business as of the dates thereof and the results of
operations of the Business for the period covered thereby in accordance with
GAAP. The revenues and expenses contained in the segment reporting of Seller's
public filings are recorded in accordance with GAAP. Since September 30, 2005,
the Business has been conducted in the ordinary course and in substantially the
same manner as conducted prior to such date and Seller has made reasonable
efforts consistent with past practices to preserve the relationships of Seller
with its customers and suppliers and others with whom Seller deals. There are no
material liabilities or obligations of Seller, including, without limitation,
any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage,
deficiency, interest, penalty, cost, expense, obligation or responsibility,
either accrued, absolute, contingent, known, unknown or otherwise except as
disclosed in the Financial Information.

          4.08 Customers; Accounts. The Customer Schedule attached hereto lists
all of the Customers, the annualized billing of such Customers and the services
being performed for the Customer, or on the Customer's behalf. Except as set
forth on the Customer Schedule attached hereto, none of the Customers has
advised Seller in writing or orally that it plans to terminate Seller's
services. Since September 30, 2005, there has not been any adverse change in the
business relationships of Seller (with respect to the Business) with Customers.

          4.09 Account Agreements. Except as reflected in the Customer Schedule
with respect to current pricing, Seller has not entered into any written
Contract with any Customer other than a Contract in substantially the form of
one of the forms set forth on the Accounts Schedule (the "Account Agreements").
Seller has not entered into any other type of written contract or agreement with
Customers that is materially different than the Account Agreements. No oral
Contract with a Customer (a "Customer Account") creates a burden or obligation
on Seller other than for the provision of payroll services in the ordinary
course of Seller's business on terms substantially similar to the Account
Agreements (except as reflected in the Customer Schedule with respect to current
pricing) and each such Customer Account may be terminated by Seller on not more
than thirty (30) days notice. Seller is not presently rendering services to any
Customer other than pursuant to an Account Agreement or Customer Account. Each
Account Agreement and Customer Account is valid, is not in material breach, is
in full force and effect and is validly assignable to Buyer (whether in full
force and effect or not) without the consent of any other party. There are no
oral or written agreements or representations entered into by Seller or made by
Seller that amend any Account Agreement, other than those identified on the
Accounts Schedule attached hereto.

          4.10 Ownership of Assets. Seller either owns the Assets or leases them
pursuant to a Material Contract. Except as set forth on the Equipment and Fixed
Assets Schedule attached hereto, Seller has good title to all of the Assets
owned by it, including furniture and equipment, fixed assets, and all contract
rights and intangible assets, and good and valid lease rights in all of the
Assets leased by it, in each case free and clear of mortgages, security
interests, liens, defects, charges, encumbrances, restrictions and rights of
third parties. Except as set forth on the Equipment and Fixed Assets Schedule
attached hereto, the Assets are sufficient for the continued conduct of the
Business after the Closing in substantially the same manner as conducted prior
to the Closing.

                                       14

          4.11 Marketable Title. Except as set forth on the Equipment and Fixed
Assets Schedule attached hereto, Seller has good, valid and marketable title to
the Assets owned by it, free and clear of all security interests, demands,
liens, claims, or encumbrances of any nature or kind whatsoever. There exist no
facts or set of circumstances which would prevent Seller from performing under
this Agreement, or which would prevent or render Seller unable to deliver good
and marketable title to the Assets.

          4.12 Condition of Assets. Except as explicitly excluded on the
Equipment and Fixed Assets Schedule attached hereto, and to the best of Seller's
Knowledge, all of the Assets are in good working order and condition, ordinary
wear and tear excluded, and have been maintained in accordance with practices
prevailing in the industry. To the best of Seller's Knowledge, in no case have
any of the Assets been installed in a manner which was in material violation of
any applicable Legal Requirement or Contract when installed.

          4.13 Intellectual Property. Seller owns or has the right to use all
Intellectual Property used in connection with the Business (either currently or
at any time in the past 12 months), all of which (other than "off-the-shelf"
software generally commercially available for a cost of less than $1,500 for a
perpetual license) is identified on the Intellectual Property Schedule attached
hereto, and following the Closing, Buyer will own or be able to use all such
Intellectual Property on the identical terms and conditions as Seller owned or
used such items prior to the Closing, subject to the receipt of any third party
consents identified on the Intellectual Property Schedule attached hereto as
being necessary for the valid transfer of such Intellectual Property. The
Intellectual Property Schedule attached hereto specifically distinguishes the
Intellectual Property that is owned by Seller ("SELLER'S INTELLECTUAL PROPERTY")
from the Intellectual Property that is used by Seller, but owned by a third
party. Seller developed the Program using third-party software development tools
and Seller has the right to use and transfer the Program.

                  (a) Each employee of Seller who created any of Seller's
          Intellectual Property and each independent contractor engaged by
          Seller who created any of Seller's Intellectual Property has assigned
          to Seller all of such employee's or contractor's right, title and
          interest in such Intellectual Property. No other Person (other than
          licensors of "off-the-shelf" software that is generally commercially
          available for a cost of less than $1,500 for a perpetual license,
          licensors of Intellectual Property under the agreements disclosed
          pursuant to paragraph (c) below and non-exclusive licensees of
          Seller's Intellectual Property identified pursuant to paragraph (e)
          below) has any rights to any of the Intellectual Property owned or
          used by Seller, and, to Seller's Knowledge, no other Person is
          infringing, violating or misappropriating any of the Intellectual
          Property that Seller owns or has an exclusive license to use or that
          is otherwise material to the Business.

                  (b) None of the activities or Business conducted by Seller and
          none of the Intellectual Property owned or used by Seller (other than
          "off-the-shelf" software generally commercially available for a cost
          of less than $1,500 for a perpetual license) infringes, violates or
          constitutes a misappropriation of (or in the past infringed, violated
          or constituted a misappropriation of) any Intellectual Property of any
          other Person. Seller

                                       15

          has not received any written complaint, claim or notice alleging any
          such infringement, violation or misappropriation. Seller has obtained
          all necessary rights to use, including without limitation the right to
          use on the relevant computer system and with the applicable number of
          "seats" and concurrent users, all "off-the-shelf" generally
          commercially available software used in connection with the Business,
          and has not received any written complaint, claim or notice alleging
          that any such software (or its use of any such software) infringes,
          violates or constitutes a misappropriation of (or in the past
          infringed, violated or constituted a misappropriation of) any
          Intellectual Property of any other Person.

                  (c) Except as set forth on the Intellectual Property Schedule
          attached hereto, Seller has no agreements with any Person pursuant to
          which Seller obtains rights to Intellectual Property material to the
          Business (other than software that is generally commercially available
          for a cost of less than $1,500 for a perpetual license) that is owned
          by a Person other than Seller. Other than as identified on the
          Intellectual Property Schedule attached hereto, Seller is not
          obligated to pay any royalties or other compensation to any third
          party in respect of its ownership, use or license of any of its
          Intellectual Property.

                  (d) Seller has taken reasonable precautions (i) to protect its
          rights in its Intellectual Property and (ii) to maintain the
          confidentiality of its trade secrets, know-how and other confidential
          Intellectual Property, and to Seller's Knowledge, there have been no
          acts or omissions by the officers, directors, employees and agents of
          Seller, the result of which would be to materially compromise the
          rights of Seller to apply for or enforce appropriate legal protection
          of Seller's Intellectual Property.

                  (e) Except as set forth on the Intellectual Property Schedule
          attached hereto, Seller has not granted any Person any permission,
          right or license to use, distribute, assign, license or sublicense any
          Intellectual Property.

          4.14 Licensure; Compliance with Laws, Regulations and Court Orders.
The Licenses Schedule attached hereto sets forth all of the Governmental
Authorizations, certificates, franchises, accreditations, registrations, or
permits relating to the Business. There is not any outstanding or, to the best
of Seller's Knowledge, threatened order, writ, injunction or decree of any
court, Governmental Entity or arbitration tribunal against or affecting the
Business or the Assets. Seller is in compliance with all applicable federal,
state and local laws, Governmental Authorizations, Legal Requirements and
administrative orders except where such non-compliance is not reasonably
anticipated to have an adverse effect on the Business or the Assets, and Seller
has not received any notices of alleged violations thereof, except as disclosed
in the Licenses Schedule attached hereto. To the best of Seller's Knowledge, no
Governmental Entity is currently conducting proceedings against Seller or any
employee of Seller with respect to the Business, and no such investigation or
proceeding is pending or being threatened.

          4.15 Insurance. Seller has in effect and has continuously maintained
insurance coverage on an "occurrence" basis for its operations, personnel,
employees and Assets. Seller is aware that it is required to have in full force
and effect a policy of general liability, worker's

                                       16

comp, errors and omissions, and any other applicable insurance. Seller has had
such insurance coverage in full force and effect for at least the immediately
preceding two (2) year period. The Insurance Schedule attached hereto lists each
insurance policy maintained by Seller with respect to the Assets or the Business
and the type and extent of coverage afforded thereby. All such policies are in
full force and effect, all premiums due and payable thereon have been paid, and
no notice of cancellation or termination has been received by Seller with
respect to any such policy which has not been replaced on substantially similar
terms prior to the date of such cancellation. To the Knowledge of Seller, the
activities and operations of Seller have been conducted in a manner so as to
conform in all material respects to all applicable provisions of such insurance
policies. In the event any insurance lapses prior to the Closing Date, Seller
assumes all liability for any and all claims that would have been covered but
for any insurance lapses.

          4.16 Brokerage. There are no claims for brokerage commissions,
finders', investment banker or financial advisor fees or similar compensation in
connection with the transactions contemplated in this Agreement based on any
arrangement or agreement made by or on behalf of Seller or any of its
Affiliates, other than fees payable to SunTrust Robinson Humphrey (which shall
be paid by Seller and for which Buyer shall have no responsibility).

          4.17 Environmental Compliance. To the Knowledge of Seller, there has
been no storage, disposal, generation, manufacture, refinement, transportation,
handling or treatment of toxic wastes, medical wastes, hazardous wastes or
hazardous substances by Seller or, to the best of Seller's Knowledge, Seller's
predecessors in interest at, upon or from any location leased by Seller in
violation of any applicable law, Legal Requirement, order, judgment, decree or
permit or which would require remedial action under any applicable law, Legal
Requirement order, judgment, decree or permit; and, to the Knowledge of Seller,
there has been no material spill, discharge, leak, emission, injection, escape,
dumping or release of any kind onto such property or into the environment
surrounding such property of any toxic wastes, medical wastes, solid wastes,
hazardous wastes or hazardous substances due to or caused by Seller or, to the
best of Seller's Knowledge, Seller's predecessors in interest. The terms
"HAZARDOUS WASTES," "TOXIC WASTES," "HAZARDOUS SUBSTANCES" and "MEDICAL WASTES"
shall have the meanings specified in any applicable local, state, Federal and
foreign laws or regulations with respect to environmental protection.

          4.18    Scheduled Employees.

                  (a) Except as described on the Scheduled Employees Schedule
          attached hereto, no Contract that provides current or future benefits
          to any employee listed on such schedule (a "SCHEDULED EMPLOYEE")
          provides or is required to provide, now or in the future, health,
          medical, dental, accident, disability, death or survivor benefits to
          or in respect of any Person beyond termination of employment, except
          to the extent required under any state insurance law or under Part 6
          of Subtitle B of Title I of ERISA and under Section 4980(B) of the
          Code.

                  (b) To the best of Seller's Knowledge, as of the Closing Date,
          no Scheduled Employee intends (i) to terminate his or her employment
          with Seller (except in order to accept employment with Buyer) or (ii)
          not to accept employment with Buyer.

                                       17

                  (c) Except as described in the Scheduled Employees Schedule
          attached hereto, the consummation of the transactions contemplated in
          this Agreement will not (i) entitle any employee of Seller to
          severance pay or termination benefits for which Buyer may be liable,
          (ii) accelerate the time of payment or vesting, or increase the amount
          of compensation due to any such employee (or any former employee of
          Seller) for which Buyer or any of its Affiliates may be liable or
          (iii) obligate Buyer or any of its Affiliates to pay or otherwise be
          liable for any compensation, vacation days, pension contribution or
          other benefits to any employee, consultant or agent of Seller for
          periods before the Closing Date or for personnel whom Buyer or any of
          its Affiliates does not actually employ.

                  (d) The Scheduled Employees Schedule attached hereto includes,
          for each employee listed thereon, that employee's original date of
          hire with Seller and current rate of base compensation.

          4.19 Tax Matters. Seller has timely filed with the appropriate Taxing
Authorities all federal Tax Returns, all state Tax Returns for each of the
states of the United States wherein such filing is required and all other
material Tax Returns which, in each case, are required to be filed that relate
to the Business, which Tax Returns properly reflect the Taxes payable for the
periods covered thereby. All such Tax Returns are true, correct and complete in
all material respects. Seller has duly paid, or will timely pay, to the
appropriate Taxing Authorities all Taxes which are required to be paid that
relate to the Business, including all sales Taxes, gross receipts Taxes and
Taxes withheld from employees' wages and all other Taxes due or claimed to be
due by a Taxing Authority for all taxable periods ending on or prior to the
Closing Date, except to the extent such Taxes are being contested in good faith
by appropriate proceedings.

          4.20 Proprietary Software and Program. Seller owns or has the right to
use the Proprietary Software including the Program. No proprietary rights in any
Proprietary Software have been transferred, whether by sale, assignment or
license (except for permission granted, in the ordinary course of business, to
customers of Seller to use Proprietary Software), or have been lost. Seller has
preserved the confidentiality of the source code for all Proprietary Software,
including the Program, and such source code has not been disclosed to any Person
(other than to employees of Seller in connection with the performance of their
duties to Seller). The rights of Seller in the Proprietary Software, including
the Program, are free and clear of any Liens except for (i) Liens relating to
current Taxes not yet due and payable and (ii) Liens which do not materially
interfere, individually or in the aggregate, with the continued use and
operation of such Proprietary Software, including the Program. No claims are
pending, or, to the Knowledge of Seller, threatened against Seller relating to
violation of trade secret rights, copyrights or other proprietary rights with
respect to any of the Proprietary Software. The Proprietary Software, including
the Program, is the most recent versions of the programs constituting the
Proprietary Software. The Proprietary Software, including the Program, conform
substantially to the functional and operational specifications set forth in the
respective user manuals and other documentation for such software.

                                       18

          4.21 Transactions with Affiliates. Except as set forth on the Related
Party Transaction Schedule attached hereto, none of (i) Seller or any of its
Affiliates, (ii) to the Knowledge of Seller, any director or officer of Seller
or (iii) to the Knowledge of Seller, any Person with a relationship not more
remote than first cousin of any Person specified in clause (ii), is presently,
or during the 12-month period ending on the date hereof has been, a party to any
transactions with Seller relating primarily to the Business (including any
Contract relating primarily to the Business and providing for the furnishing of
services by, or rental of real or personal property from, or otherwise requiring
payments to, Seller or any such Affiliate, director, officer or shareholder or
relative).

          4.22 Disclosure. No representation made herein by Seller, contains any
untrue statement of a material fact or omits to state a material fact necessary
to make these statements not misleading.

          4.23 Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN
EQUITY, IN RESPECT OF THE BUSINESS, THE ASSETS OR ANY OTHER ASPECT OF THE
BUSINESS, THE ASSETS, LIABILITIES OR OPERATIONS, AND ANY SUCH OTHER
REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED.

                                    ARTICLE V

                      BUYER REPRESENTATIONS AND WARRANTIES

                  As a material inducement to Seller to enter into this
Agreement and to consummate the transactions contemplated herein, Buyer hereby
represents and warrants to Seller, which representations and warranties shall be
true and correct on the date hereof and as of the date of the Closing, as
follows:

          5.01 Organization and Corporate Power. Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Florida, with all requisite corporate power and authority to enter into this
Agreement and the other Transaction Documents to which it is or will be a party,
to perform its obligations hereunder and thereunder and to consummate the
transactions contemplated herein and therein.

          5.02 Authorization; Valid and Binding Agreement. The authorization,
execution, delivery and performance of this Agreement and the other Transaction
Documents by Buyer, and the consummation of the transactions contemplated herein
and therein have been duly and validly authorized by all corporate acts and
other proceedings required to be taken on the part of Buyer and no other
corporate proceedings on its part are necessary to authorize the execution,
delivery or performance by Buyer of this Agreement or the other Transaction
Documents. Each of this Agreement, and the other Transaction Documents has been,
or when executed will be, duly executed and delivered by Buyer and constitute a
legal, valid and binding obligation of Buyer, enforceable against Buyer in
accordance with its terms.

                                       19

          5.03 No Breach. The execution and delivery of this Agreement and the
other Transaction Documents by Buyer do not, and the consummation of the
transactions contemplated herein and therein and compliance with the terms
hereof and thereof will not, conflict with, or result in any violation of or
default (with or without notice or lapse of time, or both) under, or give rise
to a right of consent, approval, termination, cancellation or acceleration of
any obligation or to loss of a material benefit under, or to any increased,
additional, accelerated or guaranteed rights or entitlement of any Person under,
or result in the creation of any Lien on the properties or assets of Buyer
under, any provision of (i) the Articles of Incorporation or bylaws of Buyer,
(ii) any Contract to which Buyer is a party or by which any of its properties or
assets are bound, (iii) any license, franchise, permit or similar authorization
held by Buyer or (iv) any judgment, order or decree, or statute, law, or Legal
Requirement applicable to Buyer or its properties or assets.

          5.04 Governmental Consents. Except as set forth on the Governmental
Consents Schedule attached hereto, no permit, consent, approval, Governmental
Authorization, order or authorization of, or registration, declaration or filing
with, any Governmental Entity is required to be obtained or made in connection
with the execution, delivery or performance of this Agreement by Buyer or the
consummation by Buyer of any of the transactions contemplated herein.

          5.05 Brokerage. There are no claims for brokerage commissions,
finders', investment banker or financial advisor fees or similar compensation in
connection with the transactions contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of Buyer or any of its Affiliates.

                                   ARTICLE VI

                      CONDUCT OF BUSINESS PRIOR TO CLOSING.

          From and after September 30, 2005 and until the Closing Date, Seller
shall have conducted, and Seller agrees that it will conduct, the affairs of the
Business as follows:

          6.01 Ordinary Course. The Business shall have been and shall be
conducted only in the ordinary course consistent with past practice. Seller has
maintained and shall maintain the Business, and the property, equipment and
other assets associated therewith consistent with past practice and all
applicable Legal Requirements. Seller has complied and shall comply in a timely
fashion with the provisions of all General Contracts and commitments. Seller
shall pay or otherwise satisfy in the ordinary course of business consistent
with its past practices all of the liabilities and obligations associated with
the Business and shall collect its Accounts Receivable only in the ordinary
course of business consistent with its past practices. Seller has used and shall
use commercially reasonable efforts to keep the Business intact, keep available
the services of the present employees of the Business and preserve the goodwill
of the suppliers, customers and others having relations with the Business.
Seller has maintained and shall maintain in full force and effect its policies
of insurance disclosed on the Insurance Schedule attached hereto. As soon as
practicable after the date of this Agreement, Seller shall make all filings
required under Legal Requirements to be made by it, and seek all consents to be
obtained by it, in order to carry out its

                                       20

obligations under this Agreement and the other Transaction Documents. Seller
shall cooperate with Buyer in obtaining any Governmental Authorization required
by Buyer to own and operate the Business from and after the Closing Date.

          6.02 Negative Covenants. The Company shall not have:

                  (a) Entered into any Contract relating to the Business except
          (i) those made in the ordinary course of business, the terms of which
          are consistent with past practice, or (ii) with the consent of Buyer,
          which consent shall not be unreasonably withheld or delayed;

                  (b) Failed to pay any Tax or any other liability or charge
          when due, other than liabilities contested in good faith by
          appropriate proceedings;

                  (c) Incurred any debt, liability or obligation with respect to
          the Business, other than current liabilities incurred in the ordinary
          and usual course of business or pay any debt, liability or obligation
          of any kind other than current liabilities and current maturities of
          long term debt;

                  (d) Mortgaged, pledged or otherwise encumbered or directly or
          indirectly transferred, or transferred any interest it holds in, any
          of the Assets;

                  (e) Sold, leased, transferred or disposed of any of the
          properties or assets associated with the Business;

                  (f) Taken any action or omitted to take any action that caused
          or will cause a breach or termination of any of Seller's Governmental
          Authorizations or General Contracts, other than termination by
          fulfillment of the terms thereunder;

                  (g) Made, changed or revoked any Tax election or made any
          agreement or settlement with any taxing authority relating to the
          Business;

                  (h) Changed any employee's salary, wage, benefits or bonus, or
          increased the number of employees assigned to the Business except with
          the written approval of Buyer;

                  (i) Made, or permitted to be made, any distribution, transfer,
          payment or allocation from the Business to Seller or any of its
          Affiliates except in the ordinary course of business consistent with
          its past practices; or

                  (j) Entered into any Contract to do any of the things
          described in clauses (a) through (i).

          6.03 Access. Seller shall provide Buyer reasonable access during
normal business hours to all of the properties, books, Contracts, commitments,
records, officers, personnel and accountants of the Business (including
independent public accountants and their audit work papers concerning the
Company) and shall furnish all such documents and copies of documents

                                       21

and all information with respect to the properties, liabilities and affairs of
the Business as Buyer may reasonably request. Such information shall be subject
to the Confidentiality Agreement.

          6.04 Notice of Breaches, Supplemental Schedules. Between the date of
this Agreement and the Closing, Seller shall promptly notify Buyer in writing if
it becomes aware of (a) any fact or condition that causes or constitutes a
breach of any of Seller's representations and warranties made as of the date of
this Agreement or (b) the occurrence after the date of this Agreement of any
fact or condition that would or be reasonably likely to (except as expressly
contemplated in this Agreement) cause or constitute a breach of any such
representation or warranty had that representation or warranty been made as of
the time of the occurrence of, or Seller's discovery of, such fact or condition.
Should any such fact or condition require any change to any of the schedules
attached hereto, Seller shall promptly deliver to Buyer a supplement to the
affected schedule specifying such change. Such delivery shall not affect any
rights of Buyer under Sections 7.01(a) and 10.01(a). During the same period,
Seller shall promptly notify Buyer of the occurrence of any breach of any
covenant of Seller in this Article VI or of the occurrence of any event that may
make the satisfaction of the conditions in Article VII impossible or unlikely.

          6.05 No Solicitation of Proposals. Until such time as this Agreement
shall be terminated pursuant to Section 10.01, Seller shall not directly or
indirectly, or through any other Person, solicit, initiate, encourage or
entertain any inquiries or proposals from, discuss or negotiate with, provide
any nonpublic information to or consider the merits of any inquiries or
proposals from any Person (other than Buyer) relating to any business
combination or acquisition involving the Business, including the sale of
Seller's stock, the merger or consolidation of Seller or the sale of Seller's
business or any of the Assets other than in the ordinary course of business
(each, a "PROPOSAL"). Seller shall notify Buyer of any such Proposal within
twenty-four (24) hours of receipt or awareness of the same by Seller and shall
provide Buyer with the identity of any Person making such Proposal and copies of
any written correspondence, together with any information Buyer may reasonably
request, regarding the terms and conditions of any such Proposal.

          6.06 Best Efforts. Seller shall use its best efforts to cause the
conditions in Article VII to be satisfied.

                                   ARTICLE VII

                             CONDITIONS TO CLOSING.

          7.01 Conditions to Obligations of Buyer. The obligations of Buyer to
purchase the Assets at the Closing is subject to the satisfaction, at or prior
to the Closing Date, of the following conditions:

                   (a) The representations and warranties made by Seller shall
          be true and correct in all material respects as of the Closing Date
          with the same force and effect as if they had been made as of the
          Closing Date, and Seller shall have performed all obligations and
          conditions herein required to be performed or observed by it on or
          prior to the Closing Date. The representations and warranties made by
          Seller in this Agreement

                                       22

          shall have been true and correct in all material respects as of the
          date hereof, and there shall have been no material adverse change in
          the business or prospects of the Business since September 30, 2005.

                   (b) Seller shall have obtained any and all consents,
          Governmental Authorizations and waivers necessary for consummation of
          the transactions contemplated in this Agreement and the other
          Transaction Documents. The Assets shall be free and clear of all Liens
          other than the Assigned Contracts.

                   (c) There shall not have been commenced or threatened any
          proceeding (i) involving any challenge to, or seeking relief (monetary
          or otherwise) in connection with any of the transactions contemplated
          herein, or (ii) that may have the effect of preventing, delaying,
          making illegal, imposing limitations or conditions or otherwise
          interfering with any of the transactions contemplated herein. Neither
          the consummation nor the performance of any of the transactions
          contemplated herein shall directly or indirectly (with or without the
          lapse of time), contravene or conflict with, or result in a violation
          of, or cause Buyer to suffer any adverse consequence under any Legal
          Requirement, whether existing or proposed.

                   (d) Each of Kathleen Charles, Laurie Nadeau and Steve Levine
          shall have agreed to enter into employment and noncompetition
          agreements with Buyer in form and substance satisfactory to Buyer, and
          Seller shall have entered into a noncompetition, nonsolicitation and
          confidentiality agreement with Larry Braude upon terms satisfactory to
          Buyer.

                   (e) Buyer shall have entered into an agreement with Ceridian
          Inc. providing for the transition to it, or vendors of its choice, of
          Customers who receive services from Ceridian and the termination of
          all agreements with Ceridian included in the Assigned Contracts in
          form and substance satisfactory to Buyer.

                   (f) Seller shall have, effective the Closing Date, terminated
          (i) the Agreement dated August, 2005 between Seller and Patterson
          Smith Associates (the "PSA AGREEMENT"), and (ii) the Marketing Partner
          Agreement dated February 1, 2004 with Directo, Inc. (the "DIRECTO
          AGREEMENT").

          7.02 Conditions to Obligations of Seller. Seller's obligation to sell
and transfer the Assets at the Closing Date is subject to the satisfaction, on
or prior to such Closing, of the following conditions:

                   (a) The representations and warranties made by Buyer shall be
          true and correct at the date of the Closing, with the same force and
          effect as if they had been made on and as of said date.

                   (b) Buyer shall have performed and complied with all
          agreements and conditions herein required to be performed or complied
          with by it on or before the Closing Date.

                                       23

                                  ARTICLE VIII

                             POST-CLOSING COVENANTS

          8.01 Seller's Covenants.

                   (a) Seller agrees that it shall handle and pay over, or cause
          to be handled and paid over, to the appropriate parties in a manner
          consistent with Seller's past business practices all amounts received
          from Customers prior to Closing and withheld from payroll payments
          made to employees of such Customers prior to Closing, or otherwise
          held, in order to pay workers' compensation or other insurance
          premiums or to fund contributions (whether on behalf of employer or
          employee) to 401(k) or other similar investment plans.

                   (b) Seller will cooperate with, and provide all information
          reasonably requested by, the firm of public accountants retained by
          Buyer in connection with the audit of the financial statements of the
          Business for Buyer's current fiscal year (and prior years in
          connection therewith), including such portion of said period during
          which the Business was owned and operated by Seller.

          8.02 Buyer's Covenants.

                  (a) Buyer agrees (i) in the case of Excluded Assets received
          or held by it that constitute cash, promptly to pay to Seller such
          Excluded Asset or proceeds and (ii) in the case of other Excluded
          Assets received or held by it promptly to make available for delivery
          to Seller such Excluded Asset, together with any endorsements
          necessary to reflect Seller's ownership interests therein.

                  (b) Buyer agrees that for a period of ninety (90) days
          following the Closing, it will collect all accounts receivable owed by
          Customers, which accounts are included in the Assets, using collection
          efforts consistent with Buyer's own collection procedures and
          practices for its own accounts receivable. Nothing in the preceding
          sentence shall, however, be construed to permit Buyer to forgive any
          portion of any amount owed under any account receivable that
          constitutes an Excluded Asset in excess of ten percent (10%) of the
          total amount owed under such account receivable, without the prior
          written consent of Seller. Buyer agrees that all amounts received from
          Customers will be applied to accounts receivable in accordance with
          the invoice numbers indicated with such payments, or, if none, in
          chronological order by date of invoice. Following the ninety (90) day
          period referred to in this Section 8.02(b), Buyer may, but shall not
          be required to, reconvey any Account Receivable that remains
          outstanding to Seller and thereafter shall have no further obligation
          to collect such accounts and Seller may collect such reconveyed
          accounts receivable consistent with Seller's past collection
          procedures and practices.

                                       24

                  (c) Buyer agrees that it shall use reasonable efforts to
          preserve the Records for a period of two years after the Closing Date
          at Buyer's expense. Until the second anniversary of the Closing Date
          Buyer shall provide to Seller or its designee reasonable access to the
          Records at such times as the Records are available to Buyer. Seller
          shall pay any access charges or other third-party fees incurred in
          connection with Seller's access to the Records.

                                   ARTICLE IX

                          SURVIVAL AND INDEMNIFICATION

          9.01 Survival. All of the representations and warranties contained in
this Agreement and in any certificate delivered pursuant hereto shall survive
the Closing for purposes of Section 9.02 and shall survive until the close of
business on the second anniversary of the Closing Date, provided, however, that
(i) the representations and warranties set forth in Sections 4.01, 4.02, 4.10,
4.11, 4.16 and 4.19 and (ii) in the case of fraud, intentional misrepresentation
or intentional breach, any representation or warranty, shall survive until the
expiration of the relevant statute of limitations (taking into account any
extensions thereof) or 30 days after the expiration of the relevant statute of
limitations (taking into account any extension thereof) for third party claims
made within 30 days prior to the expiration of the relevant statute of
limitations (taking into account any extensions thereof). The right to
indemnification, reimbursement or other remedy based upon such representations,
warranties, covenants and obligations shall not be affected by any investigation
conducted with respect to, or any knowledge acquired (or capable of being
acquired) at any time, whether before or after the execution and delivery of
this Agreement or the Closing Date, with respect to the accuracy or inaccuracy
of or compliance with any such representation, warranty, covenant or obligation.

          9.02 Indemnification.

                  (a) Seller shall indemnify Buyer and its officers, directors,
          shareholders and Affiliates against and hold them harmless from any
          loss, liability, claim, damage, expense, action, suit, proceeding,
          demand, judgment or cost (including reasonable legal fees and
          expenses) ("LOSSES") suffered or incurred by any such indemnified
          party arising from or relating to (i) any breach of any representation
          or warranty of Seller contained in this Agreement, (ii) any breach of
          any covenant of Seller contained in this Agreement or any of the other
          Transaction Documents, (iii) the conduct of the Business by Seller
          before the Closing Date, (iv) except for the Assumed Liabilities, any
          and all liabilities or obligations of Seller, (v) the failure of
          Seller to comply with any bulk sales laws or any state or local tax
          laws applicable to Seller in connection with the transactions
          contemplated in this Agreement or in any of the other Transaction
          Documents, and (vi) any and all Retained Liabilities.

                  (b) Buyer shall indemnify Seller and its respective officers,
          directors, shareholders and Affiliates against and hold them harmless
          from any Losses suffered or incurred by any such indemnified party
          arising from or relating to (i) any breach of any representation or
          warranty of Buyer contained in this Agreement, (ii) any breach of any

                                       25

          covenant of Buyer contained in this Agreement or any of the other
          Transaction Documents, (iii) the conduct of the Business or use of the
          Assets after the Closing Date, (iv) any and all Assumed Liabilities or
          (v) the failure by Buyer to comply with any state or local tax laws
          applicable to Buyer in connection with the transactions contemplated
          in this Agreement or in any of the other Transaction Documents.

                  (c) Except as provided below, Seller shall not have any
          liability under Section 9.02(a) unless the aggregate of all Losses
          relating thereto for which Seller would, but for this Section 9.02(c),
          be liable exceeds Fifty Thousand Dollars ($50,000), in which case
          Buyer shall be entitled to all such Losses regardless of amount.
          Except as provided below, Buyer shall not have any liability under
          Section 9.02(b) unless the aggregate of all Losses relating thereto
          for which Buyer would, but for this Section 9.02(c), be liable exceeds
          Fifty Thousand Dollars ($50,000), in which case Seller shall be
          entitled to all such Losses regardless of amount. The aggregate
          liability of Seller for indemnification or otherwise under this
          Agreement shall be limited to the Purchase Price and Buyer shall have
          no other recourse against Seller or their respective Affiliates with
          respect to such indemnity obligations or otherwise arising under this
          Agreement; provided that this sentence shall in no way affect or limit
          Seller's liability for the Retained Liabilities. The aggregate
          liability of Buyer for indemnification or otherwise under this
          Agreement shall be limited to the Purchase Price and Seller shall have
          no other recourse against Buyer or their respective Affiliates with
          respect to such indemnity obligations or otherwise arising under this
          Agreement; provided that this sentence shall in no way affect or limit
          Buyer's liability for the Assumed Liabilities. Notwithstanding
          anything herein to the contrary, this Section 9.02(c) shall not apply
          to claims under Sections 9.02(a)(ii), 9.02(a)(vi), 9.02(b)(ii),
          9.02(b)(iv), or to any matter arising in respect of Sections 4.01,
          4.02, 4.10, 4.11, 4.16 or 4.19, or to any breach of any of Seller's
          representations and warranties of which Seller had Knowledge at any
          time prior to the date on which such representation or warranty was
          made or any intentional breach by Seller of any covenant or obligation
          and Seller shall be liable for all Losses with respect thereto.

                  (d) The obligations to indemnify and hold harmless any Person
          (i) pursuant to Section 9.02(a)(i) and Section 9.02(b)(i), shall
          terminate when the applicable representation or warranty terminates
          pursuant to Section 9.01 and (ii) pursuant to clauses (ii) through
          (vii) of Section 9.02(a) and clauses (ii) through (v) of Section
          9.02(b), shall not terminate; provided, however, that as to clause (i)
          of this Section 9.02(d) such obligations to indemnify and hold
          harmless shall not terminate with respect to any item as to which the
          Person to be indemnified shall have, before the expiration of the
          applicable period, previously made a claim by delivering a notice of
          such claim (stating in reasonable detail the basis of such claim) to
          the indemnifying party.

                  (e) This Section 9.02 shall in no way affect or limit (x)
          Seller's liability for the Retained Liabilities or (y) Buyer's
          liability for the Assumed Liabilities. Nothing in this Section 9.02
          shall in any way limit the ability of Buyer to defend any claim on the
          basis that such claim relates to a Retained Liability for which Seller
          is directly liable or the ability of a Seller to defend any claim on
          the basis that such claim relates to an Assumed Liability for which
          Buyer is directly liable.

                                       26

                  (f) In case any claim or litigation which might give rise to
          any indemnification obligation (an "ASSERTED LIABILITY") of a party
          under this Section 9.02 (each an "INDEMNIFYING PARTY") shall come to
          the attention of the party seeking indemnification hereunder (the
          "INDEMNIFIED PARTY"), the Indemnified Party shall promptly notify the
          Indemnifying Party in writing of the existence, nature and amount of
          the potential Loss for which indemnification may be sought. Failure to
          give such notice shall not prejudice the rights of the Indemnified
          Party, except to the extent that the Indemnifying Party shall have
          been prejudiced by such failure. With respect to claims or litigation
          concerning third parties, the Indemnifying Party may assume the
          defense, on behalf of the Indemnified Party, of any Asserted Liability
          involving claims which may, in the reasonable judgment of the
          Indemnifying Party, give rise to a Loss in excess of $100,000, if the
          Indemnifying Party acknowledges in writing to the Indemnified Party
          that such Asserted Liability is subject to indemnification pursuant to
          this Section 9.02. If the Indemnifying Party shall assume the defense
          of any such Asserted Liability, it shall be entitled to select and
          retain counsel and, except as provided in the next sentence, the
          Indemnifying Party shall not be liable for the fees and expenses of
          any counsel retained by any Indemnified Person in connection with such
          Asserted Liability. In connection with any such Asserted Liability,
          the defense of which the Indemnifying Party shall have assumed, any
          Indemnified Person shall have the right to participate in such defense
          and to retain its own counsel, but the fees and expenses of such
          counsel shall be at the expense of such Indemnified Person, unless the
          Indemnified Party reasonably objects thereto on the ground that
          counsel for such Indemnifying Party cannot represent both the
          Indemnified Party and the Indemnifying Party because such
          representation would be reasonably likely to result in a conflict of
          interest or because there may be defenses available to the Indemnified
          Party that are not available to such Indemnifying Party. The
          Indemnifying Party may settle any Asserted Liability only with the
          written consent of the Indemnified Party, which consent shall not be
          unreasonably withheld or delayed; provided, however, that such consent
          shall not be required if such settlement (i) provides only for the
          payment of damages and such damages are paid by the Indemnifying Party
          and (ii) includes an unconditional release of the Indemnified Party
          for any Loss arising out of such Asserted Liability. If the
          Indemnified Party has assumed the defense of any Asserted Liability,
          it shall be entitled to select and retain counsel; provided, however,
          that unless the Indemnifying Party shall have approved in writing such
          counsel (such approval not to be unreasonably withheld), the fees and
          expenses of such counsel shall be borne by the Indemnified Party. If
          the Indemnified Party has assumed the defense of any Asserted
          Liability, (i) the Indemnifying Party shall have the right to
          participate in such defense and to retain its own counsel and (ii) the
          Indemnified Party may not settle such Asserted Liability without the
          written consent of the Indemnifying Party, which consent shall not be
          unreasonably withheld or delayed.

                  (g) The procedures set forth in this Section 9.02(g) shall
          apply, and the procedures of Section 9.02(f) shall not apply, to any
          Asserted Liability involving Customer claims (A) which in the
          reasonable judgment of Buyer, will not give rise to aggregate Losses
          in excess of $5,000, ( the "SETTLEMENT CAP") and (B) which constitute
          Retained Liabilities (each a "QUALIFIED ASSERTED LIABILITY"). Buyer
          shall not settle any

                                       27

          Asserted Liability that would have been a Qualified Asserted Liability
          covered by this Section 9.02(g) but for the fact that such Asserted
          Liability exceeds or would exceed in whole or in part the Settlement
          Cap, without the prior written consent of Seller, which consent shall
          not be unreasonably withheld or delayed. Upon receipt of such consent,
          Buyer may pay the amount consented to with respect to such Asserted
          Liability and such Asserted Liability shall constitute a Qualified
          Asserted Liability and such payment shall constitute a Pre-authorized
          Settlement for purposes of this Section 9.02(g). Buyer shall assume
          the defense of each Qualified Asserted Liability and shall be entitled
          to select and retain counsel in connection therewith. Buyer may settle
          any Qualified Asserted Liability without the consent of Seller in a
          manner consistent with Buyer's practices in settling similar claims
          for their own account, and Seller shall pay the settlement amount in
          connection with any such settlement; provided that (i) such settlement
          (each a "PRE-AUTHORIZED SETTLEMENT") provides only for the payment of
          damages and such damages do not exceed the Settlement Cap; and (ii)
          each Pre-authorized Settlement is included on a Monthly Settlement
          Report delivered by Buyer to Seller. Claims to which this Section
          9.02(g) applies shall not be subject to the limitation provided in
          Section 9.02(c). Each Monthly Settlement Report will include an
          invoice from Buyer for the aggregate amount of all Pre-authorized
          Settlements actually settled in such month. Seller agrees promptly to
          pay to Buyer the aggregate amount of the Pre-authorized Settlements
          shown on such invoice (by wire transfer of immediately available funds
          if such aggregate amount exceeds $10,000 and by check if such amount
          is $10,000 or less).

                  (h) Upon notice to Seller specifying in reasonable detail the
          basis therefor, Buyer may give notice of a claim in the amount to
          which it may be entitled under this Article IX to the Escrow Agent.
          Neither the exercise of, nor the failure to exercise, such right to
          give a notice of a claim under the Escrow Agreement will constitute an
          election of remedies or limit Buyer in any manner in the enforcement
          of any other remedies that may be available to it.

          9.03 Further Assurances. From time to time, as and when requested by
any party hereto, any other party shall execute and deliver or cause to be
executed and delivered, all such documents and instrument as and shall take, or
cause to be taken, all such further or other actions as such other party may
reasonably deem necessary or desirable to evidence and effectuate the
transactions contemplated in this Agreement or in any of the other Transaction
Documents.

          9.04 Employment Matters. Effective as of the Closing Date, Buyer shall
offer employment to all of the Scheduled Employees. The terms and conditions of
employment, including employment benefits and severance, of each Scheduled
Employee accepting employment with Buyer shall be in accordance with the terms
and conditions of employment currently offered by Buyer to similarly situated
employees of Buyer; provided that the base compensation offered to such employee
by Buyer shall not be less than the base compensation currently payable to such
employee by Seller. Any period of service of Scheduled Employees with Seller
shall be treated as service with Buyer for purposes of determining eligibility
to participate and vesting in Buyer's employee benefit plans.

                                       28

                                    ARTICLE X

                                  MISCELLANEOUS

          10.01 Termination.

                  (a) By notice given prior to or at the Closing, subject to
          Section 10.01(b), this Agreement may be terminated as follows:

                          (i) by mutual consent of Buyer and Seller;

                          (ii) by Buyer if a breach of any provision of this
                  Agreement has been committed by Seller and such breach has not
                  been waived by Buyer;

                          (iii) by Seller if a breach of any provision of this
                  Agreement has been committed by Buyer and such breach has not
                  been waived by Seller;

                          (iv) by Buyer if any condition in Section 7.01 has not
                  been satisfied as of the date specified for Closing in the
                  first sentence of Section 2.02(a) or if satisfaction of such a
                  condition by such date is or becomes impossible (other than
                  through the failure of Buyer to comply with its obligations
                  under this Agreement), and Buyer has not waived or extended
                  the time for satisfaction of such condition on or before such
                  date;

                          (v) by Buyer if the Closing has not occurred on or
                  before June 30, 2006, or such later date as the parties may
                  agree upon, unless Buyer is in breach of this Agreement; or

                          (vi) by Seller if the Closing has not occurred on or
                  before June 30, 2006, or such later date as the parties may
                  agree upon, unless Seller is in breach of this Agreement.

                  (b) Each party's right of termination under Section 10.01(a)
          is in addition to any other rights it may have under this Agreement or
          otherwise, and the exercise of a right of termination will not be an
          election of remedies. If this Agreement is terminated pursuant to
          Section 10.01(a), all obligations of the parties under this Agreement
          will terminate, except that the obligations of the parties in this
          Article X will survive; provided, however, that if this Agreement is
          terminated because of a material breach of this Agreement by the
          nonterminating party or because one or more of the conditions to the
          terminating party's obligations under this Agreement is not satisfied
          as a result of the nonterminating party's failure to perform or comply
          with its obligations under this Agreement, the terminating party's
          right to pursue all legal and equitable remedies will survive such
          termination unimpaired

         10.02 Press Releases and Communications. Prior to the Closing, no press
release or public announcement related to this Agreement or the transactions
contemplated herein shall be

                                       29

issued or made without the joint approval of Buyer and Seller, unless required
by applicable law (including, but not limited to, federal securities laws) or
legal process, in which case Buyer and Seller shall have the right, to the
extent reasonably practicable, to review and comment on such press release or
announcement. Seller will have the sole discretion to decide whether and when a
federal securities filing is reasonably necessary.

         10.03 Expenses. Except as otherwise expressly provided herein, Seller
on one hand and Buyer on the other hand shall pay all of their own respective
costs and expenses (including attorneys' and accountants' fees and expenses) in
connection with the negotiation of this Agreement, the performance of their
respective obligations hereunder and the consummation of the transactions
contemplated in this Agreement (whether consummated or not).

         10.04 Notices. All notices, demands and other communications to be
given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be delivered by hand or sent by telecopy or sent,
postage prepaid, by registered, certified or express mail or reputable overnight
courier service and shall be deemed given when so delivered by hand or
telecopied or, if mailed, upon receipt (provided that any such notice shall be
deemed to have been received two Business Days after mailing in the case of
express mail or overnight courier service), as follows:

         If to Seller:

         T. Kent Smith TeamStaff, Inc.
         1545 Peachtree Street, NE
         Suite 340
         Atlanta, Georgia  30309

         with a copy to:

         James D. Houston
         Vice President of Business and Legal Affairs
         General Counsel
         TeamStaff, Inc.
         18167 US Hwy. 19 North, Suite 400
         Clearwater, FL 33764
         Fax: (866) 823-1153

         If to Buyer:

         CompuPay, Inc.
         3450 Lakeside Drive
         Suite 400
         Miramar, FL 33027
         Attention:  Charles W. Lathrop, Jr., President
         and Chief Executive Officer
         Facsimile No.:  954-874-0599
         with a copy to:

                                       30

         Keith C. Jones.
         Verrill  Dana, LLP
         One Portland Square
         P.O. Box 586
         Portland, ME 04112-0586
         Facsimile No.:  207-774-7499

or to such other address or facsimile number as the party to whom notice is to
be given may have furnished to the other parties in writing in accordance
herewith.

          10.05 Assignment. This Agreement and the rights and obligations
hereunder shall not be assignable by Seller without the prior written consent of
Buyer. Any attempted assignment in violation of this Section 10.05 shall be
void.

          10.06 Amendment and Waiver. Any provision of this Agreement or the
Schedules or Exhibits hereto may be modified, amended, supplemented or waived
only in a writing signed by Seller and Buyer. No waiver of any provision
hereunder or any breach or default thereof shall extend to or affect in any way
any other provision or prior or subsequent breach or default. The rights and
remedies of the parties to this Agreement are cumulative and not alternative. No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.

          10.07 Complete Agreement. This Agreement, including the Schedules and
Exhibits hereto, and the other Transaction Documents contain the complete
agreement between the parties hereto and supersede any prior understandings,
agreements or representations by or between the parties, written or oral, which
may have related to the subject matter hereof and thereof in any way, except
that the Confidentiality Agreement dated January12, 2006 to which Buyer and
Seller are parties (the "CONFIDENTIALITY AGREEMENT") shall remain in full force
and effect (except as provided in Section 10.02), but shall not survive the
Closing. None of the parties hereto shall be liable or bound to any other party
in any manner by any representations, warranties or covenants relating to such
subject matter, except as specifically set forth herein.

          10.08 Counterparts. This Agreement may be executed in multiple
counterparts, any one of which need not contain the signatures of more than one
party, but all such counterparts taken together shall constitute one and the
same instrument, and shall become effective when one or more such counterparts
have been signed by each of the parties hereto and delivered to Seller and
Buyer.

          10.09 Governing Law. All matters relating to the interpretation,
construction, validity and enforcement of this Agreement shall be governed by
and construed in accordance with the internal laws of the State of Delaware
applicable to agreements made and to be performed entirely within such State
without giving effect to any choice or conflict of law provision or rule

                                       31

(whether of the State of Delaware or any other jurisdiction) that would cause
the application of laws of any jurisdiction other than the State of Delaware.

          10.10 No Third-Party Beneficiaries. Except as provided in Section
9.02, this Agreement is for the sole benefit of the parties hereto and their
successors and permitted assigns, and nothing herein expressed or implied shall
give or be construed to give to any Person, other than the parties hereto and
such successors and permitted assigns any legal or equitable rights hereunder.

          10.11 Interpretation. The headings contained in this Agreement, in any
Exhibit or Schedule attached hereto and in the table of contents to this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Nothing in this Agreement or in any
certificate, agreement, instrument or other document delivered pursuant hereto
or in connection herewith shall in any way be deemed to create any liability or
obligation on the part of any officer, director or employee of Buyer or Seller,
in his or her individual capacity.

                  10.12 Waiver Of Jury Trial. EACH OF THE PARTIES HERETO HEREBY
VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR OTHER
PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER
TRANSACTION DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN.

                  10.13 Jurisdiction and Venue. Any controversy, dispute or
claim arising out of or in connection with or relating to this Agreement, or to
any of the other Transaction Documents or any of the transactions contemplated
herein or therein, or the breach, termination or validity hereof, or of any
transaction contemplated herein shall be brought in the courts of the State of
Delaware, County of New Castle, including the Delaware Chancery Court, or, if it
has or can acquire jurisdiction, in the United States District Court for the
District of Delaware, and each of the parties irrevocably submits to the
exclusive jurisdiction of each such court in any such proceeding, waives any
objection it may now or hereafter have to venue or to convenience of forum,
agrees that all claims in respect of the proceeding shall be heard and
determined only in any such court, and agrees not to bring any proceeding
arising out of or relating to this Agreement or any transaction contemplated
herein in any other court. The parties agree that any or all of them may file a
copy of this paragraph with any court as written evidence of the knowing,
voluntary and bargained agreement between the parties irrevocably to waive any
objections to venue or to convenience of forum. Process in any proceeding
referred to in the first sentence of this Section may be served on any party
anywhere in the world. Seller acknowledges and agrees that Buyer would be
irreparably harmed if any of the provisions of this Agreement or of any of the
other Transaction Documents are not performed in accordance with their specific
terms and that any breach of this Agreement, or of any of the other Transaction
Documents by Seller could not be adequately compensated in all cases by monetary
damages alone. Accordingly, Seller agrees that, notwithstanding this Section
10.13, in addition to any other right or remedy to which Buyer may be entitled
at law or in equity, Buyer shall be entitled to enforce any provision of this
Agreement, or the other of Documents in any court of competent jurisdiction by a
decree of specific performance and to temporary, preliminary and permanent

                                       32

injunctive relief to prevent breaches or threatened breaches of any of the
provisions of this Agreement, without posting any bond or other undertaking.

         10.14 Costs. Notwithstanding anything herein to the contrary, the
prevailing party in any litigation arising out of or in connection with or
relating to this Agreement or to any of the other Transaction Documents or any
of the transactions contemplated herein or therein, or the breach, termination
or validity hereof, or of any transaction contemplated herein shall be entitled
to, and the non-prevailing party shall be required to pay upon demand, all
reasonable expenses incurred by the prevailing party in connection with such
litigation including, but not limited to, attorneys' fees and expenses, costs of
experts, court costs, filing and recording fees, and all other associated
expenses. The non-prevailing party shall pay its own costs and expenses of
litigation.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       33

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written. COMPUPAY, INC.

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

                                       TEAMSTAFF, INC.

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

                                       34

EXHIBITS

Exhibit A         Form of Bill of Sale
Exhibit B         Form of Seller Closing Certificate
Exhibit C         Form of Assignment and Assumption Agreements
Exhibit D         Form of Noncompetition Agreement
Exhibit E         Form of  Opinion
Exhibit F         Form of Transition Agreement
Exhibit G         Form of Buyer Closing Certificate
Exhibit H         Form of Escrow Agreement

                                       35

                                                                       EXHIBIT A

                                  BILL OF SALE

          TeamStaff, Inc., a New Jersey corporation ("Seller"), for good and
valuable consideration, hereby sells, conveys, transfers and assigns to
CompuPay, Inc., a Florida corporation ("Buyer"), all of Seller's right, title
and interest in, to and under the Assets (as defined in the Asset Purchase
Agreement, dated as of the date hereof (the "Asset Purchase Agreement"), between
Seller and Buyer, including, without limitation, the assets described on
Schedule1 attached hereto and hereby made a part hereof.

         Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Asset Purchase Agreement. This
Bill of Sale is being delivered pursuant to the Asset Purchase Agreement and
shall be construed consistently therewith. The Assets are conveyed hereby
subject to, and with all representations and warranties applicable thereto
under, the Asset Purchase Agreement.

         All matters relating to the interpretation, construction, validity and
enforcement of this Bill of Sale shall be governed by and construed in
accordance with the internal laws of the State of Delaware applicable to
agreements made and to be performed entirely within such State without giving
effect to any choice or conflict of law provision or rule (whether of the State
of Delaware or any other jurisdiction) that would cause the application of laws
of any jurisdiction other than the State of Delaware.

         IN WITNESS WHEREOF, the undersigned has caused this Bill of Sale to be
duly executed and delivered as of _________, 2006.

                                TEAMSTAFF, INC.

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

ACCEPTED AND AGREED TO:

COMPUPAY, INC.

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

                                       36

                                                                      SCHEDULE 1

[To be provided]

                                       37

                                                                       EXHIBIT B

                         Seller's Officer's Certificate

         I, ___________, ____________, of TeamStaff, Inc., a New Jersey
corporation ("Seller"), do hereby certify in the name of and on behalf of the
Seller that (i) each of the Seller's representations and warranties contained in
Article IV of that certain Asset Purchase Agreement, dated as of May 25, 2006,
between Seller and CompuPay, Inc., a Florida corporation, (the "Asset Purchase
Agreement"), are true and correct on the date hereof with the same force and
effect as if made on the date hereof and (ii) Seller has performed and complied
with the covenants and agreements in the Asset Purchase Agreement required to be
performed or complied with by Seller as of the date hereof.

         IN WITNESS WHEREOF, I have signed this certificate as of May ___, 2006.

                                        TEAMSTAFF, INC.

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

                                       38

                                                                       EXHIBIT C

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

                  ASSIGNMENT AND ASSUMPTION AGREEMENT dated as of _________,
2006 between CompuPay, Inc., a Florida corporation ("Buyer") and TeamStaff,
Inc., a New Jersey corporation ("Seller").

                  Pursuant to the Asset Purchase Agreement, dated as of May 25,
2006 (the "Asset Purchase Agreement"), between Seller and Buyer, Seller has
agreed, among other things, to sell, convey, transfer and assign to Buyer, and
Buyer has agreed that it shall assume, the Assumed Liabilities and Seller has
agreed to sell convey and transfer to Buyer the General Contracts. Capitalized
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Asset Purchase Agreement.

                  In consideration of the sale of the Assets and in accordance
with the terms of the Asset Purchase Agreement, the parties hereto hereby agree
as follows:

                  1. Seller hereby sells, conveys, transfers and assigns to
Buyer the Assumed Liabilities, and Buyer hereby assumes and agrees to pay and
perform fully when due the Assumed Liabilities in accordance with the terms of
such Assumed Liabilities and the Asset Purchase Agreement. Seller hereby sells,
conveys and assigns to Buyer all of its right, title and interest in, to and
under the General Contracts. Buyer hereby accepts all of the right, title and
interest of Seller in, to and under the Assets sold, conveyed, transferred and
assigned to it pursuant to the Asset Purchase Agreement and the Bill of Sale.

                  2. Any provision of this Assignment and Assumption Agreement
may be modified, amended, supplemented or waived only in a writing signed by
Seller and Buyer. No waiver of any provision hereunder or any breach or default
thereof shall extend to or affect in any way any other provision or prior or
subsequent breach or default. No failure or delay by any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

                  3. All matters relating to the interpretation, construction,
validity and enforcement of this Assignment and Assumption Agreement shall be
governed by and construed in accordance with the internal laws of the State of
Delaware applicable to agreements made and to be performed entirely within such
State without giving effect to any choice or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause
the application of laws of any jurisdiction other than the State of Delaware.

                  4. This Assignment and Assumption Agreement may be executed in
multiple counterparts, any one of which need not contain the signatures of more
than one party, but all such counterparts taken together shall constitute one
and the same instrument, and shall become

                                       39

effective when one or more such counterparts have been signed by each of the
parties hereto and delivered to Seller and Buyer.

                  IN WITNESS WHEREOF, the parties have caused this Assignment
and Assumption Agreement to be duly executed and delivered as of the day and
year first above written.

                                     COMPUPAY, INC.

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

                                     TEAMSTAFF, INC.

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

                                       40

                                                                       EXHIBIT D

                  NONCOMPETITION AGREEMENT (this "AGREEMENT") dated as of May  ,
2006 among CompuPay, Inc., a Florida corporation ("BUYER") and TeamStaff, Inc.,
a New Jersey corporation ("SELLER").

                  WHEREAS, Seller and Buyer have entered into that certain Asset
Purchase Agreement dated as of May 25, 2006 (the "ASSET PURCHASE AGREEMENT")
pursuant to which Seller has agreed to sell and Buyer has agreed to buy certain
assets owned by Seller, subject to the terms and conditions set forth in the
Asset Purchase Agreement; and

                  WHEREAS, the execution of this Agreement by Seller is a
condition to the closing of the transaction provided for in the Asset Purchase
Agreement.

                  NOW THEREFORE, in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                  1. Defined Terms. In addition to the terms defined elsewhere
in this Agreement, the following terms shall have the following meanings:

                  "AFFILIATE" means, with respect to any specified Person, any
          other Person that directly, or indirectly through one or more
          intermediaries, controls, is controlled by, or is under common control
          with, such specified Person, including any Person holding the majority
          of the equity or voting interests of any other Person.

                  "BUSINESS" means the payroll processing business of Seller,
          including all of the business conducted by DSi Payroll Services, a
          division of TeamStaff, Inc. Such Business consists of the provision of
          (i) payroll processing services to Customers and (ii) tax filing,
          processing and payment services (including the provision of tax
          information, such as W-2 reports) to Customers.

                  "BUSINESS DAY" means any day other than a Saturday or Sunday
          or any other day on which banking institutions are generally obligated
          or authorized to close in the State of New Jersey.

                  "CUSTOMERS" means customers of Seller who are actively engaged
         in business and whose most recent payroll was processed by the
         Business.

                   "GOVERNMENTAL ENTITY" means any Federal, state, local or
          foreign government or any court of competent jurisdiction,
          administrative agency or commission or other governmental authority or
          instrumentality, domestic or foreign.

                  "PERSON" means an individual, a partnership, a limited
          liability company, a limited liability partnership, a corporation, an
          association, a joint stock company, a trust, a joint venture, an
          unincorporated organization or any other entity or organization,
          domestic or foreign (including a Governmental Entity).

                                       41

                  2. NonCompetition. During the period beginning on the date
hereof and ending on the fifth anniversary thereof (the "NON-COMPETE PERIOD"),
Seller shall not directly or indirectly own any interest in, manage, control,
participate in, consult with, render services for, or in any manner engage in
any business competing with Buyer or any of its Affiliates (including, without
limitation, payroll services or tax filing services) anywhere in the United
States. Seller acknowledges that such businesses are conducted and planned to be
conducted nationally and agrees that the provisions of this Agreement shall
operate throughout the United States. Nothing herein shall prohibit Seller from
being a passive owner of not more than 2% of the outstanding stock of any class
of a corporation which is publicly traded, so long as Seller has no active
participation in the business of such corporation.

                  3. Nonsolicitation. During the Non-Compete Period, Seller
shall not directly or indirectly through another Person (i) induce or attempt to
induce any person who became an employee of Buyer pursuant to an offer of
employment made pursuant to the Asset Purchase Agreement to leave the employ of
Buyer or any of its Affiliates, or in any way interfere with the relationship
between Buyer or any of its Affiliates and any employee thereof, (ii) hire or
solicit to hire any person who was an employee of Seller assigned primarily to
the Business at any time during the one year-period prior to the date hereof, or
(ii) induce or attempt to induce any customer, supplier, vendor, service
provider, employee, licensee, licensor, lessor, franchisee or other business
relation of Buyer or any of its Affiliates to cease doing business with Buyer or
any of its Affiliates, or in any way interfere with the relationship between any
such customer, supplier, vendor, service provider, employee, licensee, licensor,
lessor, franchisee, channel partner, referral source or other business relation
and Buyer or any of its Affiliates (including, without limitation, making any
negative statements or communications about Buyer or any of its Affiliates).

                  4. Confidentiality. Seller shall, and shall cause each of its
Affiliates to, treat and hold as confidential any information concerning the
Business that is not already generally available to the public (the
"CONFIDENTIAL INFORMATION"), shall refrain, and shall cause its Affiliates to
refrain, from using any of the Confidential Information except in connection
with the Asset Purchase Agreement. In the event that Seller or any of its
Affiliates is requested or required (by oral question or request for information
or documents in any legal proceeding, interrogatory, subpoena, civil
investigative demand, or similar process) to disclose any Confidential
Information, Seller shall notify Buyer promptly of the request or requirement so
that Buyer may seek an appropriate protective order or waive compliance with the
provisions of this Agreement. If, in the absence of a protective order or the
receipt of a waiver hereunder, Seller or its Affiliate is, on the advice of
counsel, compelled to disclose any Confidential Information to any tribunal or
else stand liable for contempt, Seller or its Affiliate may disclose such
Confidential Information to the tribunal; provided that Seller and its Affiliate
shall use its best efforts to obtain, at the request of Buyer, an order or other
assurance that confidential treatment shall be accorded to such portion of the
Confidential Information required to be disclosed as Buyer shall designate.

                  5. Reform. If the final judgment of a court of competent
jurisdiction declares that any term or provision of this Agreement is invalid or
unenforceable, the court making the determination of invalidity or
unenforceability shall have the power to reduce the scope, duration, or area of
the term or provision, to delete specific words or phrases, or to replace any

                                       42

invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified after the expiration of the time within which the
judgment may be appealed.

                  6. Scope. Seller expressly acknowledges and agrees that (i)
the Business has a significant amount of goodwill associated with it,
represented in part by trade names, customer and client relationships, and its
history of operations, and such goodwill extends throughout the United States,
(ii) each and every of the restrictions contained in this Agreement is
reasonable in all respects (including, without limitation, with respect to
subject matter, time period and geographical area) and such restrictions are
necessary to protect Buyer's interest in, and value of, the Business (including,
without limitation, the goodwill inherent therein) to be acquired by Buyer,
(iii) Seller is primarily responsible for the creation of such value, and (iv)
Buyer would not have consummated the transactions contemplated hereby without
the restrictions contained in this Agreement

                  7. Equitable Relief. Seller acknowledges and agrees that in
the event of a breach by Seller of any of the provisions of this Agreement,
monetary damages shall not constitute a sufficient remedy. Consequently, in the
event of any such breach, the Buyer and/or its successors or assigns may, in
addition to other rights and remedies existing in its favor, apply to any court
of law or equity of competent jurisdiction for specific performance and/or
injunctive or other relief in order to enforce or prevent any violations of the
provisions hereof, in each case without the requirement of posting a bond or
proving actual damages.

                  8. Amendment. Any provision of this Agreement may be amended
or waived only in a writing signed by all of the parties hereto.

                  9. Assignment. This Agreement and the rights and obligations
hereunder shall not be assignable by Seller without the prior written consent of
Buyer. Any attempted assignment in violation of this Section 9 shall be void.

                  10. Complete Agreement. This Agreement and the Asset Purchase
Agreement, including the Schedules and Exhibits thereto, and the agreements
entered into in connection therewith contain the complete agreement between the
parties hereto and supersede any prior understandings, agreements or
representations by or between the parties, written or oral, which may have
related to the subject matter hereof and thereof in any way.

                  11. No Third-Party Beneficiaries. This Agreement is for the
sole benefit of the parties hereto and their successors and permitted assigns,
and nothing herein expressed or implied shall give or be construed to give to
any Person, other than the parties hereto and such successors and permitted
assigns, any legal or equitable rights hereunder.

                  12. Governing Law. All matters relating to the interpretation,
construction, validity and enforcement of this Agreement shall be governed by
and construed in accordance with the internal laws of the State of Delaware
applicable to agreements made and to be performed entirely within such State
without giving effect to any choice or conflict of law

                                       43

provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of laws of any jurisdiction other than the
State of Delaware.

                  13. Notices. All notices, demands and other communications to
be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be delivered by hand or sent by telecopy or sent,
postage prepaid, by registered, certified or express mail or reputable overnight
courier service and shall be deemed given when so delivered by hand or
telecopied or, if mailed, upon receipt (provided that any such notice shall be
deemed to have been received two Business Days after mailing in the case of
express mail or overnight courier service), as follows:

         If to Seller:

         T. Kent Smith TeamStaff, Inc.
         1545 Peachtree Street, NE
         Suite 340
         Atlanta, Georgia  30309

         with a copy to:

         James D. Houston
         Vice President of Business and Legal Affairs
         General Counsel
         TeamStaff, Inc.
         18167 US Hwy. 19 North, Suite 400
         Clearwater, FL 33764
         Fax: (866) 823-1153

         If to Buyer:

         CompuPay, Inc.
         3450 Lakeside Drive
         Suite 400
         Miramar, FL 33027
         Attention:  Charles W. Lathrop, Jr., President
         and Chief Executive Officer
         Facsimile No.:  954-874-0599

         with a copy to:

         Keith C. Jones.
         Verrill  Dana, LLP
         One Portland Square
         P.O. Box 586
         Portland, ME 04112-0586
         Facsimile No.:  207-774-7499

                                       44

or to such other address or facsimile number as the party to whom notice is to
be given may have furnished to the other parties in writing in accordance
herewith.

                  14. Counterparts. This Agreement may be executed in multiple
counterparts, any one of which need not contain the signatures of more than one
party, but all such counterparts taken together shall constitute one and the
same instrument and shall become effective when one or more such counterparts
have been signed by each of the parties hereto and delivered to Seller and
Buyer.

                  15. Waiver Of Jury Trial. EACH OF THE PARTIES HERETO HEREBY
VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR OTHER
PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREIN.

                  16. Jurisdiction and Venue. Any controversy, dispute or claim
arising out of or in connection with or relating to this Agreement, or the
breach, termination or validity hereof, or of any transaction contemplated
herein shall be brought in the courts of the State of Delaware, County of New
Castle, including the Delaware Chancery Court, or, if it has or can acquire
jurisdiction, in the United States District Court for the District of Delaware,
and each of the parties irrevocably submits to the exclusive jurisdiction of
each such court in any such proceeding, waives any objection it may now or
hereafter have to venue or to convenience of forum, agrees that all claims in
respect of the proceeding shall be heard and determined only in any such court,
and agrees not to bring any proceeding arising out of or relating to this
Agreement or any transaction contemplated herein in any other court. The parties
agree that any or all of them may file a copy of this paragraph with any court
as written evidence of the knowing, voluntary and bargained agreement between
the parties irrevocably to waive any objections to venue or to convenience of
forum. Process in any proceeding referred to in the first sentence of this
Section may be served on any party anywhere in the world. Seller acknowledges
and agrees that Buyer would be irreparably harmed if any of the provisions of
this Agreement are not performed in accordance with their specific terms and
that any breach of this Agreement by Seller could not be adequately compensated
in all cases by monetary damages alone. Accordingly, Seller agrees that,
notwithstanding this Section 16, in addition to any other right or remedy to
which Buyer may be entitled at law or in equity, Buyer shall be entitled to
enforce any provision of this Agreement, in any court of competent jurisdiction
by a decree of specific performance and to temporary, preliminary and permanent
injunctive relief to prevent breaches or threatened breaches of any of the
provisions of this Agreement, without posting any bond or other undertaking.

                                       45

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above.

                                      COMPUPAY, INC.

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

                                      TEAMSTAFF, INC..

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

                                       46

                                                                       EXHIBIT E

May 31, 2006

CompuPay, Inc.
3450 Lakeside Drive
Suite 400
Miramar, FL 33027

  Re: Asset Purchase Agreement by and between CompuPay, Inc. and TeamStaff, Inc.
      --------------------------------------------------------------------------

Ladies and Gentlemen:

       As General Counsel to TeamStaff, Inc., a New Jersey corporation (the
"Company"), I have advised the Company in connection with the sale of certain
assets to CompuPay, Inc. pursuant to an Asset Purchase Agreement dated as of May
25, 2006 (the "Agreement"). This opinion is provided to you pursuant to Section
3.01(f) of the Agreement. Except as otherwise defined herein, capitalized terms
contained in this opinion have the same meanings as set forth in the Agreement.

       I have examined the Agreement, the other Transaction Documents and
originals or copies of such records of the Company, certificates of officers of
the Company and public officials, and other documents as I have deemed relevant
and necessary as a basis for this opinion. In such examination, I have assumed
the genuineness of all signatures, the legal capacity of all signatories, the
authenticity of all documents submitted to me as originals, the conformity to
originals of documents submitted to me as copies, and the authenticity of the
originals of such documents.

       As to questions of fact material to this opinion, I have relied without
independent verification upon representations contained in certificates of
public officials.

       Based upon the foregoing, and subject to the qualifications set forth
below, I am of the opinion that:

       1. The Company is a corporation validly existing and in good standing
under the laws of the State of New Jersey.

       2. The Company has all requisite corporate power and authority to own its
assets and to carry on its business as presently conducted. The Company has all
requisite corporate power and authority to enter into each of the Transaction
Documents to which it is a party and to perform its obligations thereunder.

       3. The Company and its directors and officers have taken all corporate
action necessary to authorize the execution, delivery, and performance by the
Company of each the Transaction Documents to which the Company is a party. No
approval or other action by the shareholders of

                                       47

the Company is necessary to authorize the execution, delivery, and performance
by the Company of each the Transaction Documents to which the Company is a party

       4. Neither the execution and delivery by, nor the performance by, the
Company of any of its obligations under any of the Transaction Documents to
which it is a party will constitute a violation by the Company of, or a breach
or default by the Company under, its Certificate of Incorporation or bylaws; or,
to my knowledge, under any contract or agreement to which the Company is a party
or under any judgment, writ, order or decree, specific to the Company of any
court or other governmental authority.

       Opinions expressed herein "to my knowledge" involve substantial issues of
fact and are given on the basis of the knowledge, after reasonable inquiry, of
those individuals in the Company who have been principally involved with the
transactions contemplated in the Transaction Documents.

       This opinion is intended for use by you in connection with the
transactions contemplated in the Agreement and is not to be relied upon by any
other person or in any other context.

                                 Very truly yours,

                                 James D. Houston
                                 Vice President of Business and Legal Affairs
                                 General Counsel
                                 TeamStaff, Inc.

                                       48

                                                                       EXHIBIT F

                  TRANSITION AGREEMENT, dated as of June 1, 2006 among CompuPay,
Inc., a Florida corporation ("BUYER") and TeamStaff, Inc., a New Jersey
corporation (the "SELLER").

                  WHEREAS, Seller and Buyer have entered into an Asset Purchase
Agreement dated May 25, 2006 (the "ASSET PURCHASE AGREEMENT") pursuant to which
Seller has agreed to sell and Buyer has agreed to buy certain assets (the
"ASSETS") owned by Seller, subject to the terms and conditions set forth in the
Asset Purchase Agreement;

                  WHEREAS, the parties hereto agree that the mutual covenants
contained herein will assist each party in the transition of ownership of the
Assets contemplated in the Asset Purchase Agreement; and

                  WHEREAS, the execution and delivery of this Transition
Agreement is a condition to the closing of the transactions provided for in the
Asset Purchase Agreement;

                  NOW THEREFORE, in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                  1. Defined Terms. Capitalized terms used and not otherwise
defined herein shall have the respective meanings set forth in the Asset
Purchase Agreement. Seller and Buyer are sometimes referred to together in this
Agreement as the "Parties" and each individually as a "Party."

                  2. Office Space. The Seller agrees to sublease to Buyer
certain office space at Seller's office at 300 Atrium Drive, Somerset, New
Jersey 08873 (the "TEMPORARY SPACE") in accordance with a Sublease in the form
set forth in EXHIBIT A attached hereto and made a part hereof, such Sublease to
be executed and delivered at the Closing.

                  3. Transitional Services. Seller will provide, transfer or
make available, to Buyer the following with respect to the Business (the
"TRANSITIONAL SERVICES"), services included therein to be provided by Seller
with the same degree of care, skill and diligence with which Seller performed
similar services on behalf of the Business prior to the Closing:

                      (a) Seller will make its web developer, Andrew Stone
("Consultant") available for a period of up to 125 days
from the date hereof to provide consulting services to Buyer to assist in the
transition of the Business to Buyer, as reasonably requested by and upon
reasonable notice from Buyer; provided that the time spent by Consultant on such
consulting services shall not exceed 16 hours in any week or 150 hours in the
aggregate without the consent of Seller. Such services shall be considered a
part of Consultant's duties as an employee of Seller, and Buyer shall not be
obligated to pay any compensation to Seller or to Consultant in connection with
the provision of such services; and

                      (b) The services and related items listed on EXHIBIT B.

                                       49

The Buyer shall provide Seller, in a timely manner, with all information that is
necessary or appropriate to enable Seller to provide the Transitional Services.

                  4. Other Services. The Buyer may request, from time to time,
services from Seller of a type which Seller provided on behalf of the Business
prior to the Closing Date but which are not described on EXHIBIT B (the
"ADDITIONAL SERVICES"). Seller shall use commercially reasonable efforts to
accommodate any reasonable request for such services, but shall not be obligated
to provide any Additional Services unless it agrees to do so.

                  5. Compensation. Seller shall be compensated for Buyer's use
of the Temporary Space as provided in EXHIBIT A. Transition Services shall be
provided to Buyer by Seller without charge. Any Additional Services shall be
charged at a rate commensurate with the type of service requested, but will not
exceed a reasonable market rate. Seller shall furnish the Buyer with monthly
invoices for amounts due hereunder. Each invoice shall describe in reasonable
detail the services upon which the amount charged to the Buyer is based. The
Buyer shall remit to Seller, in full, the undisputed amount of each such invoice
at the address shown on the invoice within thirty (30) Business Days of receipt
of the invoice. Any undisputed amount not received by the payment due date shall
be subject to a late payment charge equal to the amount of the overdue balance
times the "prime rate" per annum, as announced from time to time by The Wall
Street Journal, Eastern Edition, for the number of calendar days from the
payment due date up to and including the date payment is actually received.
Buyer shall promptly notify Seller in writing of the nature and basis of any
dispute relating to the amount due on any invoice. Each of the Parties shall use
commercially reasonable efforts to resolve the dispute prior to the payment due
date.

                  6. Contact Persons; Dispute Resolution. Each Party shall
appoint a person or persons for the purpose of coordinating the provision of the
Transitional Services and the resolution of any disputes that may arise under
this Agreement. Each Party shall use its commercially reasonable efforts to
resolve in a timely manner any disputes and/or claims that may arise in
connection with services to be provided hereunder and shall make available its
personnel, data, books and records to the extent reasonably necessary to
investigate and resolve any such disputes and/or claims.

                  7. Cooperation. Seller will use commercially reasonable
efforts to cooperate with the Buyer in the transition of the Business to Buyer
and to assist the Buyer in providing services directly to customers of the
Business or through service providers other than Seller.

                  8. Confidentiality Obligation.

                      (a) All information disclosed by a Party to the other
          Party during the negotiation and the term of this Agreement
          ("PROPRIETARY INFORMATION") (i) shall be the property of the
          disclosing Party, (ii) shall be used solely for the purposes of
          administering and otherwise implementing the terms of this Agreement
          and (iii) shall be protected by the Party receiving such Proprietary
          Information in accordance with the terms of this Section.

                                       50

                      (b) Each Party agrees that it shall not disclose any
          Proprietary Information of the other Party in whole or in part,
          including any information derived from Proprietary Information, to any
          third Party. Proprietary Information shall be held in confidence by
          the receiving Party and its employees, contractors or agents and shall
          be disclosed to only those of the receiving Party's employees,
          contractors or agents who have a need to know it in connection with
          the administration and implementation of this Agreement. In the event
          that such Proprietary Information is not otherwise already included
          within the scope of a confidentiality agreement with such contractors
          and agents, the receiving Party shall cause such contractors and
          agents to comply with the provisions of this Section.

                      (c) Information shall not be deemed Proprietary
          Information and the receiving Party shall have no obligation with
          respect to any such information which (i) is or becomes publicly known
          through no wrongful act, fault or negligence of the receiving Party;
          or (ii) was known by the receiving Party prior to disclosure and the
          receiving Party was not under a duty of non-disclosure, or is at any
          time developed by the receiving Party independently of any such
          disclosure; or (iii) was disclosed to the receiving Party by a third
          Party who was free of obligations of confidentiality to the Party
          providing the information; or (iv) is approved for release by written
          authorization of the disclosing Party; or (v) is furnished to a third
          party by the disclosing Party without a similar restriction on the
          third party's rights.

                      (d) Each Party agrees to give notice to the other Party of
          any demands to disclose or provide Proprietary Information received
          from such Party under lawful process prior to disclosing or furnishing
          Proprietary Information, and agrees to cooperate in seeking reasonable
          protective arrangements requested by the other Party. In addition, a
          Party may disclose or provide Proprietary Information of the other
          Party requested by a government agency or national stock exchange
          having jurisdiction over the disclosing Party; provided, that such
          Party uses its reasonable good faith efforts to obtain protective
          arrangements satisfactory to the Party owning the Proprietary
          Information. The Party owning the Proprietary Information may not
          unreasonably withhold approval of protective arrangements.

                  9. Reform. If a court declares that any term or provision of
this Agreement is invalid or unenforceable, the parties to this Agreement agree
that the court making the determination of invalidity or unenforceability shall
have the power to reduce the scope, duration or area of the term or provision,
to delete specific words or phrases, or to replace any invalid or unenforceable
term or provision with a term or provision that is valid and enforceable and
that comes closest to expressing the intention of the invalid or unenforceable
term or provision, and this Agreement shall be enforceable as so modified.

                  10. Equitable Relief. Seller agrees that money damages would
not be a sufficient remedy for breach of this Agreement by Seller and that in
addition to all other remedies Buyer shall be entitled to equitable relief,
including injunction and specific performance, for any breach of the provisions
of this Agreement. Buyer agrees that money damages would not be a sufficient
remedy for breach of this Agreement by Buyer and that in addition to all other
remedies Seller shall be entitled to equitable relief, including injunction and
specific performance, for any breach of the provisions of this Agreement.

                                       51

                  11. Amendment. Any provision of this Agreement may be amended
or waived only in a writing signed by all of the parties hereto.

                  12. Assignment. This Agreement and the rights and obligations
hereunder shall not be assignable by Buyer or Seller without the prior written
consent of the other Party; provided that Buyer shall have the right to assign
its rights and obligations under this Agreement to any entity to which they
would be permitted to assign its rights and obligations under the Asset Purchase
Agreement. Any attempted assignment in violation of this Section 12 shall be
void.

                  13. Complete Agreement. This Agreement, including the Exhibits
hereto, and the other Transaction Documents contain the complete agreement
between the Parties and supersede any prior understandings, agreements or
representations by or between the Parties, written or oral, which may have
related to the subject matter hereof and thereof in any way. Neither of the
Parties shall be liable or bound to the other Party in any manner by any
representations, warranties or covenants relating to such subject matter, except
as specifically set forth herein and therein.

                  14. No Third-Party Beneficiaries. This Agreement is for the
sole benefit of the Parties and their successors and permitted assigns, and
nothing herein expressed or implied shall give or be construed to give to any
Person, other than the parties hereto and such successors and permitted assigns,
any legal or equitable rights hereunder.

                  15. Governing Law. ALL MATTERS RELATING TO THE INTERPRETATION,
CONSTRUCTION, VALIDITY AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE
WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE
(WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE
THE APPLICATION OF LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.

                  16. Waiver Of Jury Trial. EACH OF THE PARTIES HEREBY
VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR OTHER
PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER
TRANSACTION DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN.

                  17. Jurisdiction and Venue. Any controversy, dispute or claim
arising out of or in connection with or relating to this Agreement, or the
breach, termination or validity hereof, or of any transaction contemplated
herein shall be brought in the courts of the State of Delaware, County of New
Castle, including the Delaware Chancery Court, or, if it has or can acquire
jurisdiction, in the United States District Court for the District of Delaware,
and each of the parties irrevocably submits to the exclusive jurisdiction of
each such court in any such proceeding, waives any objection it may now or
hereafter have to venue or to convenience of forum, agrees that all claims in
respect of the proceeding shall be heard and determined only in any such court,
and agrees not to bring any proceeding arising out of or relating to this
Agreement or any transaction contemplated herein in any other court. The parties
agree that any

                                       52

or all of them may file a copy of this paragraph with any court as written
evidence of the knowing, voluntary and bargained agreement between the parties
irrevocably to waive any objections to venue or to convenience of forum. Process
in any proceeding referred to in the first sentence of this Section may be
served on any party anywhere in the world. Seller acknowledges and agrees that
Buyer would be irreparably harmed if any of the provisions of this Agreement are
not performed in accordance with their specific terms and that any breach of
this Agreement by Seller could not be adequately compensated in all cases by
monetary damages alone. Accordingly, Seller agrees that, notwithstanding this
Section 17, in addition to any other right or remedy to which Buyer may be
entitled at law or in equity, Buyer shall be entitled to enforce any provision
of this Agreement, in any court of competent jurisdiction by a decree of
specific performance and to temporary, preliminary and permanent injunctive
relief to prevent breaches or threatened breaches of any of the provisions of
this Agreement, without posting any bond or other undertaking.

                  18. Relationship of Parties. The Parties acknowledge and agree
that Seller is engaged in a business that is independent from the Buyer's and
that Seller will be performing its obligations under this Agreement as an
independent contractor. Nothing contained herein is intended to create an agency
relationship or a partnership or joint venture between Seller and Buyer. Seller
is not an agent of Buyer and shall have no authority to represent Buyer as to
any matter, except as authorized herein or in writing by the Buyer from time to
time.

                  19. Notices. All notices, demands and other communications to
be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be delivered by hand or sent by telecopy or sent,
postage prepaid, by registered, certified or express mail or reputable overnight
courier service and shall be deemed given when so delivered by hand or
telecopied or, if mailed, upon receipt (provided that any such notice shall be
deemed to have been received two Business Days after mailing in the case of
express mail or overnight courier service), as follows:

         If to Seller:

         T. Kent Smith TeamStaff, Inc.
         1545 Peachtree Street, NE
         Suite 340
         Atlanta, Georgia  30309

         with a copy to:

         James D. Houston
         Vice President of Business and Legal Affairs
         General Counsel
         TeamStaff, Inc.
         18167 US Hwy. 19 North, Suite 400
         Clearwater, FL 33764
         Fax: (866) 823-1153

                                       53

         If to Buyer:

         CompuPay, Inc.
         3450 Lakeside Drive
         Suite 400
         Miramar, FL 33027
         Attention:  Charles W. Lathrop, Jr., President
         and Chief Executive Officer
         Facsimile No.:  954-874-0599

         with a copy to:

         Keith C. Jones.
         Verrill  Dana, LLP
         One Portland Square
         P.O. Box 586
         Portland, ME 04112-0586
         Facsimile No.:  207-774-7499

or to such other address or facsimile number as the party to whom notice is to
be given may have furnished to the other parties in writing in accordance
herewith.

                  20. Counterparts. This Agreement may be executed in multiple
counterparts, any one of which need not contain the signatures of more than one
party, but all such counterparts taken together shall constitute one and the
same instrument and shall become effective when one or more such counterparts
have been signed by each of the Parties and delivered to Seller and Buyer.

                  21. Term and Termination. The term of this Agreement shall be
from the date hereof until all obligations as set forth in Exhibits A and B have
been satisfied. Notwithstanding anything to the contrary contained herein, the
confidentiality provisions of Section 8 shall survive any termination hereof
until the second anniversary of the date of this Agreement.

                                       54

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above.

                                        COMPUPAY, INC.

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

                                        TEAMSTAFF, INC.

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

                                       55

EXHIBIT A

                                    SUBLEASE

         THIS SUBLEASE made and entered into this _____ day of ____________,
2006, by and between TEAMSTAFF, INC., a New Jersey corporation, d/b/a DSi
PAYROLL SOLUTIONS, hereinafter called "Landlord", and COMPUPAY, INC., a Florida
corporation, hereinafter called "Tenant",

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS, Landlord is the tenant under a lease with LaSalle Investment
Management, Inc., successor in interest to WHATR Real Estate Limited
Partnership, hereinafter referred to as the "underlying lease", with respect to
premises located at 300 Atrium Drive, Somerset New Jersey 08873 (the "underlying
premises"), to which lease reference is hereby made as if the same were set
forth herein at length; and

         WHEREAS, Landlord and Tenant have entered into an Asset Purchase
Agreement dated May 25, 2006 (the "Asset Purchase Agreement") pursuant to which
Landlord has agreed to sell and Tenant has agreed to buy certain assets (the
"Assets") owned by Landlord, subject to the terms and conditions set forth in
the Asset Purchase Agreement; and

         WHEREAS, Landlord and Tenant have agreed that Landlord shall sublet to
Tenant a portion of the underlying premises for a period of time after the
Closing Date;

         NOW, THEREFORE, in consideration of the rents, covenants and agreements
herein contained, the parties hereto hereby covenant and agree as follows:

         1. Landlord hereby demises and subleases to Tenant, and Tenant hereby
takes and hires from Landlord, for the term and upon and subject to the terms
and conditions set forth in this Sublease, and/or incorporated by reference
herein, the premises described and/or shown on Schedule 1 attached hereto
consisting of approximately 7,500 square feet of space (sometimes hereinafter
referred to as the "demised premises" and sometimes hereinafter referred to as
the "premises"). In addition, Tenant shall have the right to use, in common with
Landlord, the entrances, exits, hallways, stairwells, elevators, rest rooms,
snack and cafeteria rooms and other common facilities situated within or
appurtenant to the underlying premises (the "common facilities"). In addition,
Tenant shall have the right to use one-half of the parking spaces available to
the underlying premises.

         2. TO HAVE AND TO HOLD the said premises for a term commencing on the
date hereof and expiring on May 30, 2007 (the "Expiration Date") unless earlier
terminated by

                                       56

Tenant. Tenant shall have the right to terminate this Sublease at any time prior
to the Expiration Date upon thirty (30) days prior notice to Landlord.

         3. (a) Tenant shall pay to Landlord during the term of this Sublease,
at the address set forth herein in regard to notices, or at such other place as
Landlord may from time to time direct, monthly Base Rent payments at the annual
rate of Nineteen Dollars $19.00 per square foot of usable floor area, payable on
the first day of each month during the term of this Sublease and prorated for
the fraction of any month at the beginning and end of the term; provided that if
the date hereof is not the first day of a month, then the first monthly rental
payment shall be payable on the date hereof and shall be equal to the product of
(i) one-thirtieth of such monthly rental payment times (ii) the number of days
from but excluding the date hereof to and including the last day of the current
month.

         (b) Tenant shall pay Landlord Additional Rent for utility and
maintenance charges equal to 50% of the actual utility and maintenance charges
paid by Landlord with respect to the entire underlying premises pursuant to the
underlying lease (including the premises), but in no event in excess of One
Thousand Eight Hundred Dollars $1,800 per month, prorated for the period of
actual occupancy by Tenant. Said charges shall be paid in arrears within thirty
(30) days after receipt of an invoice from Landlord, together with
substantiating documentation. Tenant's payments of Base Rent and Additional Rent
provided for herein shall constitute Tenant's entire rent obligation, and Tenant
shall not be obligated to pay any amounts for Operating Costs, Taxes or other
Additional Rent payments set forth in the underlying lease.

         4. Tenant shall be entitled to all of the services and maintenance to
which Landlord is entitled with respect to the underlying premises pursuant to
the underlying lease and which Landlord now provides for with respect to the
premises. Without limiting the generality of the foregoing, Landlord will
provide or cause to be provided to Tenant telephone service; electricity, heat,
air-conditioning and other utilities; receptionist services; and cleaning,
janitorial and maintenance services to the same extent provided with respect to
the remainder of the underlying premises at no additional cost.

         5. Tenant shall not assign this sublease nor sublet the demised
premises in whole or in part, and shall not permit Tenant's interest in this
Sublease to be vested in any other party by operation of law or otherwise.
Tenant shall use the demised premises for general office use, including its
current use, and for no other purpose without the prior written consent of
Landlord. Tenant shall not make any alterations or additions to the demised
premises without the prior written consent of Landlord.

         6. At the expiration of the term Tenant shall yield up the premises
peaceably to Landlord broom clean and, subject to Landlord's compliance with its
maintenance obligations as set forth herein, in the same order, repair and
condition as said premises are in on the commencement date hereof, ordinary wear
and tear and damage by fire or other casualty excepted. Landlord shall comply
with all laws, ordinances, rules and regulations of governmental authorities
relating to the condition of the premises.

                                       57

         7. (a) Tenant shall save Landlord harmless and indemnified from and
against all injury (including death) to any person and loss of, or damage to,
any property while on the premises except to the extent caused by Landlord, its
employees or invitees. Tenant shall maintain with respect to the premises
commercial general liability insurance having a combined single limit coverage
of not less than One Million Dollars ($1,000,000.00) for bodily injury and
damage to property each occurrence, in companies qualified to do business in the
State in which the premises is located under a policy naming Landlord as an
additional insured, said policy to be written on an occurrence basis.

         (b) Landlord shall save Tenant harmless and indemnified from and
against all injury (including death) to any person and loss of, or damage to,
any property while on the remainder of the underlying premises, excluding the
premises, except to the extent caused by Tenant, its employees or invitees.
Landlord shall maintain with respect to the underlying premises commercial
general liability insurance having a combined single limit coverage of not less
than One Million Dollars ($1,000,000.00) for bodily injury and damage to
property each occurrence, in companies qualified to do business in the State in
which the premises is located, under a policy naming Tenant as an additional
insured, said policy to be written on an occurrence basis.

         (c) Landlord and Tenant each shall deposit with the other certificates
of such insurance at or prior to the commencement of the term of this Sublease,
and thereafter within ten (10) days prior to the expiration of such policies.
Such policies shall to the extent obtainable provide that the policies may not
be materially changed or cancelled without at least ten (10) days' prior written
notice to each insured.

         8. All fixtures installed by Tenant in the demised premises or conveyed
to Tenant pursuant to the Asset Purchase Agreement shall remain the property of
Tenant and may be removed at any time during or at the expiration of the term of
the Lease. Tenant shall repair any damage caused by such removal.

         9. Landlord covenants and agrees with Tenant that upon Tenant paying
the rent and observing and performing all the terms, covenants and conditions on
Tenant's part to be observed and performed, Tenant may peaceably and quietly
have, hold, occupy and enjoy the demised premises and all appurtenances thereto
without hindrance or molestation

         10. This Sublease is subject and subordinate to the underlying lease.
Landlord and Tenant each agree not to do, nor permit to be done, anything which
would cause the underlying lease to be terminated or forfeited by reason of any
right of termination or forfeiture reserved or vested in the landlord under the
underlying lease.

         11. All notices which may be permitted or required hereunder shall be
in writing and given in the manner set forth in the Asset Purchase Agreement,
and shall be addressed to the addresses set forth therein, or to such other
address or addresses as either party may hereafter designate by notice in
writing to the other party.

         12. If Tenant shall fail to make any payment of Fixed Rent or
Additional Rent by the due date, and shall fail to cure such default within 10
days after receipt of written notice of such

                                       58

nonpayment from Landlord, or in the event of noncompliance by Tenant with any
other Sublease term, and continuing for 30 days after written notice by Landlord
specifying the default (or if incurable within 30 days, then Tenant's failure to
commence to cure within 30 days and thereafter to carry out the curing
diligently and within a reasonable period of time), then Landlord may terminate
this Lease, expel Tenant and remove its effects, and pursue any other remedies
for arrears of rent or breach of contract.

         13. Landlord and Tenant each releases the other and the officers,
employees and representatives of the other, from any liability (to the other or
the other's insurance company) for any damage caused by fire or other casualty,
even if such fire or casualty shall have been caused by the fault or negligence
of the other party.

         14. Landlord warrants and represents that the demised premises are free
of all Hazardous Substances (as defined in the Asset Purchase Agreement), and
Landlord will indemnify Tenant and hold it harmless from and against any and all
costs, expenses and liabilities (including without limitation attorney fees and
clean-up costs) related to the discovery, presence, release, removal and/or
cleanup of any Hazardous Substance which may be discovered within the demised
premises. Tenant agrees not to introduce any Hazardous Substances onto the
demised premises, and further to comply with all applicable laws and regulations
with respect to its use of any potentially hazardous materials on or about the
demised premises.

         15. The terms, covenants, conditions and agreements herein contained
shall be binding upon and inure to the benefit of the successors and assigns,
respectively, of Landlord and Tenant.

                                       59

         IN WITNESS WHEREOF, the parties hereto have executed this instrument as
of the day and year first above written.

WITNESS:                                    TEAMSTAFF, INC.,
                                            d/b/a DSi PAYROLL SOLUTIONS

_____________________________               By:________________________________
                                            Print Name: _______________________
                                            Its: ______________________________

                                                         "Landlord"

                                            COMPUPAY, INC.

_____________________________               By:________________________________
                                            Print Name: _______________________
                                            Its: ______________________________

                                                         "Tenant"

                                       60

                                                                      SCHEDULE 1

                                DEMISED PREMISES

[To be provided]

                                       61

EXHIBIT B

TRANSITIONAL COMPUTER SERVICES TRANSITIONAL NEEDS

The Transitional Services will include the housing of web and database servers
and related equipment currently located in Seller's corporate data center and
the following:

ONGOING SUPPORT AND MAINTENANCE

* Continuation of current hardware and software maintenance for all network
related equipment owned by Seller and located in Somerset, New Jersey until
Buyer takes over the related maintenance contracts or replaces the equipment
(not to exceed 180 days). This includes the equipment related to the frame relay
connection to Seller's Corporate Data Center and Internet connectivity.

* Web and database server hosting and support for a period of 120 days.

* Internet and web server connectivity in current configuration for 120 days.

* Domain name administration for 60 days.

* File server use for 45 days

* Use of existing maintenance contracts for service on existing servers, and
desktops, laptops as needed, until Buyer takes over the related maintenance
contracts or replaces the equipment (not to exceed 180 days).

* Troubleshooting and repair of any software or hardware problems that may arise
with respect to equipment that prohibit day-to-day operation of the Business by
Buyer at 300 Atrium Drive, Somerset, New Jersey 08873.

* System engineer support for all equipment acquired by Buyer and server and
desktop equipment still under maintenance contracts where contracts are owned by
Seller. This includes circuit maintenance and repair, firewall changes, virus
updates, tape backups.

E-MAIL AND TELEPHONE REDIRECTION

* Phone service in current configuration for 90 days.

* Email services for 90 days. Thereafter, redirection of e-mails directed to
employees of the Business or related to the Business to Buyer's e-mail servers .

                                       62

* Support in connection with the transfer of existing Business connections,
including the Internet, out of TeamStaff, Inc. corporate facilities.

* Support in connection with the transfer of existing web and payroll production
servers from TeamStaff, Inc. corporate locations to Buyer, either to Buyer's
data center or a new location, including readdressing of IP addresses for
servers and removal of firewall.

* Reprogramming of Somerset PBX to reroute customer calls to Buyer.

ASSETS AND SERVICES TO BE PROVIDED OR TRANSFERRED TO BUYER AS PART OF
TRANSITION:

* All source code for DSi web application and databases.

* Oracle database dump file.

* Listing of all email addresses for DSi.

* Export of DSi staff email boxes.

* Transfer of DSi domain administrative rights.

* Phone lines and phone numbers.

* All virtual machines created for DSi disaster recovery plan.

                                       63

                                                                       EXHIBIT G

                          Buyer's Officer's Certificate

         I, ___________, ____________, of CompuPay, Inc., a Florida corporation
("Buyer"), do hereby certify in the name of and on behalf of the Buyer that (i)
each of the Buyer's representations and warranties contained in Article V of
that certain Asset Purchase Agreement, dated as of May 25, 2006, between Buyer
and TeamStaff, Inc., a New Jersey corporation, (the "Asset Purchase Agreement"),
are true and correct on the date hereof with the same force and effect as if
made on the date hereof and (ii) Buyer has performed and complied with the
covenants and agreements in the Asset Purchase Agreement required to be
performed or complied with by Buyer as of the date hereof.

         IN WITNESS WHEREOF, I have signed this certificate as of May ___, 2006.

                                   COMPUPAY, INC.

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

                                       64

                                                                       EXHIBIT H

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "ESCROW AGREEMENT") is made as of May 31,
2006, by and among TEAMSTAFF, INC, a New Jersey Corporation with a location at
1545 Peachtree Road, NE, Suite 340, Atlanta, Georgia 30309 ("SELLER"); CompuPay,
Inc., a New Jersey Corporation with a location at 3450 Lakeside Drive, Suite
400, Miramar, FL 33027 ("BUYER"); and COLE TAYLOR BANK of Chicago, Illinois (the
"ESCROW AGENT").

         WHEREAS, pursuant to an Asset Purchase Agreement (the "PURCHASE
AGREEMENT") dated May 25, 2006, between Seller and Buyer, the parties have
agreed, pursuant to Section 2.01(e) thereof, to place Two Hundred Fifty Thousand
Dollars ($250,000) (the "ESCROW AMOUNT") into escrow, to provide funds for
certain potential obligations and understandings and to secure the undertakings,
representations and warranties made by Seller, all pursuant to this Escrow
Agreement. Capitalized terms not otherwise defined herein shall have the meaning
given to such terms in the Purchase Agreement;

         NOW, THEREFORE, in consideration of the promises herein made and the
agreements and understandings provided in the Purchase Agreement, the parties
hereto agree as follows.

         1. Formation of Escrow Fund. Buyer, on behalf of Seller and in
accordance with the provisions of this Escrow Agreement, hereby delivers, and
the Escrow Agent hereby acknowledges receipt of the Escrow Amount, and the
Escrow Agent accepts and agrees to maintain the Escrow Amount, separately in an
account and such account shall include all interest, dividends and distributions
on the Escrow Amount, all in accordance with the terms hereof.

         2. Distributions of Escrow Amount.

                  (a) Subject to Section 2(b) hereof, the Escrow Agent shall
distribute the Escrow Amount to Seller at such address or pursuant to such
written instructions as may be provided to the Escrow Agent by Seller as
follows: (i) One Hundred Twenty-five Thousand Dollars ($125,000) on November 30,
2006, and (ii) the remainder of the Escrow Amount (plus any accrued interest) on
May 31, 2007; provided, however, that in the event the Escrow Agent receives a
written notice from Buyer prior to such date certifying that Buyer has claimed a
right to indemnification and the amount of such claim in accordance with Section
9.02 of the Purchase Agreement or that Buyer has claimed a right to receive a
Purchase Price Adjustment and the amount of such claim in accordance with
Section 2.03 of the Purchase Agreement which has not been paid in accordance
with the Purchase Agreement, the Escrow Agent shall retain and continue to hold
on the terms of this Escrow Agreement an amount from the Escrow Account equal to
the claimed indemnity or claimed Purchase Price Adjustment that remains due
until it receives written notice that such indemnification claim and claim for a
Purchase Price

                                       65

Adjustment has been resolved, in accordance with clause (x) or (y) of Section
2(b) hereof, and shall pay the balance, if any, of the Escrow Account due to
Seller on such date to Seller.

                  (b) Prior to May 31, 2007, the Escrow Agent shall hold the
Escrow Amount in its possession until authorized hereunder to deliver the Escrow
Amount as follows: (x) upon receipt of a certificate, a sample of which is
attached hereto as Annex A, requesting the delivery of any portion of the Escrow
Amount as signed on behalf of Buyer, the Escrow Agent shall deliver such portion
to Seller or Buyer, as directed in such certificate; or (y) upon receipt of an
award or order of a court of competent jurisdiction with respect to payment of
all or any portion of the Escrow Amount, the Escrow Agent shall deliver such
portion to Seller or Buyer, or as otherwise directed in such award or order.

                  (c) The parties recognize and agree that the amount placed in
escrow is not meant to limit the obligations of Seller pursuant to the Purchase
Agreement.

         3. No Duty to Verify. The Escrow Agent shall have neither the duty nor
the authority to verify the accuracy of the information contained in the
foregoing notices, nor the genuineness of the signatory thereto or the authority
of such signatory thereto or the authority of such signatures to execute such
notices. Upon the final distribution of all the Escrow Amount pursuant to
Section 2 above, the Escrow Agent shall be deemed to have fully discharged its
duties and obligations hereunder, and shall have no further liability or
obligation to any party with respect hereto.

         4. Investment of the Escrow Amount. The Escrow Agent shall follow
Buyer's written instructions concerning the permissible investment,
reinvestment, purchase and sale of the Escrow Amount. Permissible investments
shall be limited to: (i) obligations of the United States government, and (ii)
the Goldman Sachs Financial Square Money Market Fund. All such investments shall
have a maturity date no more than 3 days prior to the date contemplated for the
payments described in Section 2. Any interest earned on such investments will be
added to the Escrow Amount. The Escrow Agent shall report such interest as
having been earned by Seller. Quarterly statements shall be sent to Buyer and
Seller.

         5. Additional Limitations on Escrow Amount. No party shall be deemed to
have any right, title or interest in or possession of the Escrow Amount, except
as provided herein.

         6. The Escrow Agent.

                  (a) Protection of the Escrow Agent. In consideration of this
escrow by the Escrow Agent, the parties agree that: (i) the parties may examine
the Escrow Amount during normal business hours at the office of the Escrow
Agent; (ii) the Escrow Agent's duties and responsibilities shall be limited to
those expressly set forth in this Escrow Agreement, and the Escrow Agent shall
not be subject to, nor obligated to recognize, any other agreement between, or
direction or instruction of, any or all of the parties hereto even though
reference thereto may be made herein; (iii) no assignment of the interest of any
party shall be binding upon the Escrow Agent; (iv) in performing its duties
hereunder, the Escrow Agent may rely on written statements furnished to it by
any officer of Buyer, or any other evidence deemed by the Escrow Agent to be

                                       66

reliable, and shall be entitled to act on the advice of counsel selected by it;
(v) if the Escrow Amount is attached, garnished, or levied upon under the order
of any court, or the delivery thereof shall be stayed or enjoined by the order
of any court, or any other order, judgment or decree shall be made or entered by
any court affecting the Escrow Amount, the Escrow Agent is hereby expressly
authorized and instructed to obey and comply with all writs, orders or decrees
so entered or issued, whether with or without jurisdiction; the Escrow Agent
shall not be liable to any of the parties hereto or their successors by reason
of compliance with any such writ, order or decree notwithstanding such writ,
order or decree being subsequently reversed, modified annulled, set aside or
vacated; (vi) the Escrow Agent may, in its sole and absolute discretion, deposit
the Escrow Amount or so much thereof as remains in its hands with the then chief
or presiding judge of the Federal District Court whose jurisdiction includes the
County of New Castle, Delaware, and interplead the parties hereto, and upon so
depositing such property and filing its complaint in interpleader, it shall be
relieved of all liability under the terms hereof as to the property so deposited
and shall be entitled to recover in such interpleader action, from the other
parties hereto, its reasonable out-of-pocket attorneys' fees and related costs
and expenses incurred in commencing and prosecuting such action and furthermore,
the parties hereto for themselves, their successors and assigns, do hereby
submit themselves to the jurisdiction of said Court and do hereby appoint the
then Clerk, or acting Clerk, of said Court as their agent for the service of all
process in connection with such proceedings; (vii) in case the Escrow Agent
becomes involved in litigation in connection with this Escrow Agreement, it
shall have the right to retain counsel, and shall have a lien on the Escrow
Amount for all reasonable out-of-pocket costs, attorneys' fees, charges,
disbursements and expenses in connection with such litigation, and shall be
entitled to reimburse itself for such expenses out of the Escrow Amount; (viii)
if the Escrow Agent's reasonable fees, costs, expenses, or reasonable
out-of-pocket attorneys' fees provided for herein are not promptly paid, the
Escrow Agent, after notice to the parties, shall have the right to sell the
property held hereunder; and (ix) notwithstanding anything herein to the
contrary, the Escrow Agent shall be under no duty to monitor or enforce
compliance by the parties with any term or provision of the Escrow Agreement.

                  (b) New Escrow Agent. If the Escrow Agent shall decline or
cease to act as escrow agent, the parties shall mutually agree upon a successor
which successor shall be deemed to be the Escrow Agent for all purposes of this
Escrow Agreement. If a successor Escrow Agent has not been appointed and has not
accepted such appointment by the end of the 30-day period commencing upon the
cessation to act of the Escrow Agent, the Escrow Agent may apply to a court of
competent jurisdiction for the appointment of a successor Escrow Agent, and the
costs, expenses and reasonable attorneys' fees which the Escrow Agent incurs in
connection with such a proceeding shall be paid, as provided in Section 6(a)
hereof.

         7. Reimbursement of the Escrow Agent. The fees of the Escrow Agent
shall be divided equally between Seller and Buyer.

         8. Miscellaneous.

                  (a) Notices. All notices, demands, or other communications to
be given or delivered under or by reason of the provisions of the Escrow
Agreement will be in writing and will be deemed to have been given (i) three
days after the date of mailing by registered or

                                       67

certified mail, return receipt requested, or (ii) when personally delivered
(including by Federal Express or other courier service). Notices, demands and
communications to the Company, Seller and the Escrow Agent will, unless another
address is specified in writing, be sent to the address set forth on the Notices
Schedule attached hereto.

                  (b) Governing Law. The internal law, and not the law of
conflicts, of the State of Delaware shall govern all questions concerning the
construction, validity and interpretation of this Escrow Agreement, and
performance of the obligations imposed by this Escrow Agreement.

                  (c) Tax Identification Numbers. Seller represents and warrants
that the EIN set forth immediately below its name on the Notices schedule is its
accurate Taxpayer Identification Number. Buyer represents and warrants that the
EIN set forth immediately below its name on the Notices schedule is its accurate
Taxpayer Identification Number.

                  (d) Counterparts. This Escrow Agreement may be executed on two
or more separate counterparts, each of which will be an original and all of
which taken together will constitute one and the same agreement.

                  (e) Successors and Assigns. This Escrow Agreement shall not be
assigned by any party and shall be binding upon, and inure to the benefit of,
the parties hereto and their respective successors and assigns.

                  (f) Specific Performance. The obligations of the parties
hereto (including the Escrow Agent) are unique in that time is of the essence,
and any delay in performance hereunder by any party will result in irreparable
harm to the other parties hereto. Accordingly, any party may seek specific
performance and/or injunctive relief before any court of competent jurisdiction
in order to enforce this Escrow Agreement or to prevent violations of the
provisions hereof, and no party shall object to specific performance or
injunctive relief as an equitable remedy. The Escrow Agent acknowledges that its
obligations, as well as the obligations of Buyer hereunder, are subject to the
equitable remedy of specific performance and/or injunctive relief.

                  (g) Amendment, Waiver, etc. This Escrow Agreement shall not be
amended, modified, altered or revoked without the prior written consent of the
parties, provided that no amendment or modification will be made to Sections 6
or 7 hereof without the written consent of the Escrow Agent.

                  (h) Headings. Section headings used herein are for convenience
of reference only and shall not be deemed to constitute a part of this Escrow
Agreement for any other purpose, or to limit, characterize or in any way affect
any provision of this Escrow Agreement, and all provisions of this Escrow
Agreement will be enforced as if such headings had not been included herein.

                  (i) No Strict Construction. The parties hereto, other than the
Escrow Agent, hereby expressly acknowledge and agree that the language of this
Escrow Agreement constitutes the mutual intention and understanding of the
parties, and that each party hereto has been

                                       68

represented by competent counsel in connection herewith. Accordingly, each party
hereto, other than the Escrow Agent, hereby waives any doctrine of strict
construction with respect to the interpretation hereof or the resolution of any
ambiguities herein, and none of the foregoing shall be resolved against any
party as a result of any such doctrine.

                  (j) Complete Agreement. This Escrow Agreement constitutes the
entire agreement among the parties with respect to the subject matter hereof,
and amends and supersedes any prior understandings and agreements with respect
thereto.

                                   * * * * * *

                                       69

         IN WITNESS WHEREOF, the parties have executed this Escrow Agreement on
the date first written above.

                                            COMPUPAY, INC.

                                            By:
                                                --------------------------------
                                                Charles W. Lathrop, Jr.
                                                Its President

                                            TEAMSTAFF, INC.

                                            By:
                                                --------------------------------
                                                T. Kent Smith.
                                                Its President

                                            COLE TAYLOR BANK

                                            By:
                                                --------------------------------
                                                Ann Longino
                                                Its Vice President

                                       70

                                     Annex A

                                   Certificate

         I, Charles W. Lathrop, Jr., hereby certify that I am the duly elected
President of CompuPay, Inc. ("Buyer") and that this Certificate is being issued
pursuant to Section 2(b)(x) of an Escrow Agreement among Buyer, TeamStaff, Inc.
and Cole Taylor Bank (the "Escrow Agent"). Pursuant to the Escrow Agreement, the
Escrow Agent is authorized to transfer to ______*_______ the sum of $_________
in accordance with the terms of the Escrow Agreement. Such sum shall be sent to
_________*__________ at the address described in the Notices Schedule.

         Dated:

                                                  CompuPay, Inc.

                                                  By
                                                     ---------------------------
                                                     Charles W. Lathrop, Jr.
                                                      Its President

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

* Insert "Buyer" or "Seller" as appropriate.

                                       71

                                Notices Schedule

T. Kent Smith TeamStaff, Inc.
1545 Peachtree Street, NE
Suite 340
Atlanta, Georgia  30309
Phone:
Fax:
EIN: 22-1899798

CompuPay, Inc.
3450 Lakeside Drive
Suite 400
Miramar, FL 33027
Attention:  Charles W. Lathrop, Jr., President
and Chief Executive Officer
Phone: 800-362-9519, ext 7701
Fax.: 954-874-0599
EIN: 59-2022495

Cole Taylor Bank
Attn:  Ann Longino, Corporate Trust Services
111 West Washington, Suite 650
Chicago, IL  60602
Phone: 312-960-5375
Fax: 312-960-5396

                                       72

SCHEDULES

Accounts                            (ss.4.09)
Customer                            (ss. 4.08)
Excluded Assets                     (ss. 2.01)
Equipment and Fixed Assets          (ss.ss. 2.01, 4.10, 4.11 and 4.12)
Financial Information               (ss. 4.07)
Intellectual Property               (ss.ss. 2.01, 4.13)
General Contracts                   (ss.ss. 2.01, 4.06)
Insurance                           (ss. 4.15)
Leased Property                     (ss.ss. 2.01, 4.07)
Scheduled Employees                 (ss. 4.18)
Authorization                       (ss.ss. 3.01, 4.05)
Related Party Transactions          (ss. 4.21)
Governmental Consents               (ss. 5.04)
Licenses                            (ss. 4.14)

                                       73

Accounts Schedule                      Section 4.09

DSI  PAYROLL SERVICES
---  A DIVISION OF TEAMSTAFF INC.

[ ] PRICE QUOTATION ___________________   [ ] SALES ORDER ____________________
                           DATE                                  DATE

COMPANY INFORMATION:
--------------------

Company Name: ________________________________________________________________

Street: ______________________________________________________________________

City, State & Zip: ___________________________________________________________

Contract Name: _______________________________________________________________

Phone #: _____________________________________________________________________

Fax #: _______________________________________________________________________

Delivery Address (if different): _____________________________________________

                                 _____________________________________________

                                 _____________________________________________

Delivery Phone # (if different): _____________________________________________

Other DSi Payroll Codes:         _____________  _______________  _____________

================================================================================

A. PROCESSING RATES:
--------------------

                                                     BASE           ITEM
                                                     ----           ----
                                                    Per Run       Per Item
                                                   Processed      Processed

Standard Base Charge                               $
                                                   ---------
Multiple Code Base Discount                        ($      )
                                                   ---------
Base Charge                                        $
                                                   ---------
Remote Processing Charge                           $              $
                                                   ---------      ---------
Check Processing Charge                                           $
                                                                  ---------
Check Printing Charge                                             $
                                                                  ---------
Charge per Worksheet Entry                                        $
                                                                  ---------
Check Handling Charge (sign, fold, stuff)          $              $
                                                   ---------      ---------
Direct Deposit                                     $
                                                   ---------
Bank Reconciliation Report                         $
                                                   ---------

TOTAL Processing Charges                           $              $
                                                   =========      =========

New Employee Hire Charge                           $              per New Hire
                                                   ---------

================================================================================

Client Approval ________________________________  Date: ______________________

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

B. REPORT CHARGES:
------------------

      REPORT             FREQUENCY       SET-UP         BASE           ITEM
      ------             ---------       ------         ----           ----

Union Benefit Reports     Weekly       $              $              $
                                       ---------      ---------      ---------
                          Monthly      $              $              $
                                       ---------      ---------      ---------
Local #3 (J.I.B.)
 Report                   Weekly       $              $              $
                                       ---------      ---------      ---------
Certified (WH-347)        Weekly       $              $              $
                                       ---------      ---------      ---------
Certified (Special)       Weekly       $              $              $
                                       ---------      ---------      ---------
EEO Report                Weekly       $              $              $
                                       ---------      ---------      ---------
                          Monthly      $              $              $
                                       ---------      ---------      ---------
Job Costing               Weekly       $              $              $
                                       ---------      ---------      ---------
                          Monthly      $              $              $
                                       ---------      ---------      ---------
Work-In-Process (WIP)     Weekly       $              $              $
                                       ---------      ---------      ---------
                          Monthly      $              $              $
                                       ---------      ---------      ---------
Report Writer            #             $              $              $
                         ---------     ---------      ---------      ---------
                         #             $              $              $
                         ---------     ---------      ---------      ---------
New Hire Report           Weekly       $              $              $
                                       ---------      ---------      ---------
TOTAL Report Charges      Weekly       $              $              $
                                       =========      =========      =========
                          Monthly      $              $              $
                                       =========      =========      =========

================================================================================

C. QUARTERLY AND YEAR-END CHARGES:
----------------------------------

W-2's (#_________)        $           Base +         $            (per W-2)
                          ---------                  ---------
Quarterly Ledger Cards    $           Base +         $            (per Card)
                          ---------                  ---------
Magnetic Media Tape       $           Federal
                          ---------
                          $           Per State
                          ---------
Tax Filing Service        $           Per Processing*
                          ---------
                                     *Fees billed directly by tax service vendor

================================================================================

D. ONE-TIME CONVERSION CHARGE:
------------------------------

Set-up Charge (_______ Employee Records @ $ __________)              $
                                                                     ---------
Back Tax Set-up (_______ Employee Records @ $ __________)            $
                                                                     ---------
Remote PC Set-up                                                     $
                                                                     ---------
Direct Deposit Set-up (Bank may also charge a fee)                   $
                                                                     ---------
Check Signing Set-up                                                 $
                                                                     ---------
Tax Filing Service Set-up                                            $
                                                                     ---------

================================================================================

DSi Acct. Mgr. _________________________________  Date: ______________________

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

E. PICK UP AND DELIVERY:
------------------------

Pick Up Charge (per pick up)                                         $
                                                                     ---------
Delivery Charge (per delivery)                                       $
                                                                     ---------
================================================================================

F. ESTIMATED CHARGES:
---------------------

Base Charge (From A)                                                 $
                                                                     ---------
Each Pay Processed (From A) _____ @ $ _____ each                     $
                                                                     ---------
Report Charges (_________ Reports Weekly Base)                       $
                                                                     ---------
       (_______ Items $ ________ per item Weekly)                    $
                                                                     ---------
Delivery and/or Pick-Up Charges                                      $
                                                                     ---------
Other Charges __________________________________________________     $
                                                                     ---------
Other Charges __________________________________________________     $
                                                                     ---------
Processing Charge per Payroll                                        $
                                                                     ---------
Total Monthly Charges                                                $
                                                                     ---------
Processing Charges X ________ Payrolls per Year                      $
                                                                     ---------
Monthly Charges X 12                                                 $
                                                                     ---------
Estimated Quarterly and Year-End Charges                             $
                                                                     ---------
TOTAL Estimated Annual Charges                                       $
                                                                     =========

================================================================================

NOTES:
------
______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

================================================================================

PRICE GUARANTEE AND TERMS:
--------------------------

Prices are guaranteed for the first 12 months assuming no charges in
requirements, specifications or volume. Thereafter, price changes are subject to
30 days notice. Payments to DSi for services are due within 10 days from
customer receipt of invoice. Bills over 30 days old will be subject to an
interest charge at the prevailing interest rate. These prices are valid for 30
days following the date below.
================================================================================

CLIENT CODE _______________________    CUSTOMER NUMBER _______________________

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

          WHITE - CLIENT  YELLOW - ACCOUNTING  PINK - SALES ADMINISTRATOR
                             GOLD - ACCOUNT MANAGER

Customer Schedule                      Section 4.08

                                                     ACCOUNTS/CUSTOMERS

                               PROCESSING
   CODE       INPUT TYPE        FREQUENCY      TAX SERVICE    DIRECT DEPOSIT  DIRECT DEBIT   OTHER SERVICES
---------------------------------------------------------------------------------------------------------------

   AAARS      Web Remote         WEEKLY             N               Y               N
   AAHCO        Fax In           WEEKLY             N               N               N
   AARON        Fax In           WEEKLY             N               N               N
   ABAEX      Web Remote         WEEKLY             Y               N               N
   ABAXC      Web Remote         WEEKLY             Y               N               Y
   ABAXI      Web Remote         WEEKLY             Y               N               N
   ABSEL      Web Remote         WEEKLY             Y               N               N
   ACASS        Fax In           WEEKLY             Y               N               N
   ACCST      Web Remote         WEEKLY             Y               Y               Y
   ACELE        Fax In           WEEKLY             N               N               N
   ACMCO      Web Remote         WEEKLY             Y               N               N
   ACMER       Call In         BI-WEEKLY            Y               Y               N
   ACORP        Fax In           WEEKLY             Y               N               Y
   ACPEE        Fax In           WEEKLY             Y               N               Y
   ACTEL      Web Remote         WEEKLY             Y               Y               Y
   ACTIV       Call In           WEEKLY             N               N               Y
   ADAMS        Fax In           WEEKLY             Y               N               N
   ADCCO        Fax In           WEEKLY             Y               N               N
   ADCPR       Call In        SEMI-MONTHLY          Y               Y               N
   ADEMA      Web Remote         WEEKLY             N               N               Y
   ADMCO      Web Remote         WEEKLY             Y               N               Y
   ADMOC        Fax In           WEEKLY             Y               N               N
   ADVAN       Call In           WEEKLY             Y               Y               N
   AEGIS      Web Remote         WEEKLY             Y               N               Y
   AFFRD       Call In           WEEKLY             Y               N               N
   AFIRE       Call In           WEEKLY             Y               Y               N
   AGDEM        Remote           WEEKLY             Y               N               Y
   AIRTC        Fax In           WEEKLY             N               Y               N
   AJFAS       Call In        SEMI-MONTHLY          Y               N               N
   AKEXC       Call In           WEEKLY             Y               N               Y
   AKING        Fax In           WEEKLY             N               N               N
   ALATR        Fax In           WEEKLY             Y               N               Y
   ALBAD       Pick up           WEEKLY             N               N               N              AP
   ALBIN      Web Remote         WEEKLY                                             N
   ALBRO        Fax In           WEEKLY             Y               N               N
   ALLNY        Fax In           WEEKLY             N               N               Y
   ALLST        Fax In           WEEKLY             Y               N               N
   ALOEL        Fax In           WEEKLY             N               N               N
   ALSEI        Fax In           WEEKLY             Y               Y               N
   AMAND        Fax In           WEEKLY             Y               N               N
   AMAST        Fax In           WEEKLY             Y               N               Y
   AMCEL        Fax In           WEEKLY             N               N               N
   AMKAY      Web Remote         WEEKLY             Y               N               Y
   AMMAS      Web Remote         WEEKLY             Y               N               Y
   AMORU        Fax In           WEEKLY             Y               N               N
   AMT03         Fax             WEEKLY             N               N               N
   ANCCN        Fax In           WEEKLY             N               N               N
   ANDEL      Web Remote         WEEKLY             Y               Y               Y
   ANGEL        Fax In           WEEKLY             Y               N               N
   APACO        Fax In           WEEKLY             N               N               N
   APCLA       Call In        SEMI-MONTHLY          Y               N               Y
   APPEL        Fax In           WEEKLY             Y               N               N
   APPJU       Call In        SEMI-MONTHLY          Y               N               Y
   APPLL      Web Remote         WEEKLY             Y               N               N
   AQUCO        Fax In           WEEKLY             Y               N               N
   ARARC        Fax In           WEEKLY             N               N               N
   ARARI        Fax In           WEEKLY             N               Y               N
   ARASC        Fax In           WEEKLY             N               N               N
   ARCHE        Fax In           WEEKLY             N               N               N
   ARDIA        Fax In           WEEKLY             Y               Y               N
   AREXC       Call In           WEEKLY             Y               N               N
   ARFOU      Web Remote       BI-WEEKLY            Y               N               N
   ARISM      Web Remote         WEEKLY             Y               N               Y
   ARSIM      Web Remote         WEEKLY             Y               Y               Y
   ARTEL      Web Remote         WEEKLY             N               N               N
   ARTIC      Web Remote         WEEKLY             Y               N               N
   ASDOJ       Call In        SEMI-MONTHLY          Y               Y               N
   ASDOY       Call In        SEMI-MONTHLY          Y               Y               N
   ASELC       Call In           WEEKLY             Y               Y               Y
   ASKCO        Fax In           WEEKLY             Y               N               N
   ASPLA       Call In           WEEKLY             Y               Y               Y
   ASR03       Call In           WEEKLY             Y               Y               N
   ASR25        Fax In           WEEKLY             Y               N               N
   ATCOC      Web Remote         WEEKLY             Y               N               Y
   ATEQR      Web Remote         WEEKLY             Y               Y               Y
   ATHLE      Web Remote         WEEKLY             Y               N               N
   ATJEL      Web Remote         WEEKLY             Y               Y               Y
   ATLIN      Web Remote         WEEKLY             Y               Y               N
   ATLLI      Web Remote         WEEKLY             Y               Y               N
   ATOCO        Fax In           WEEKLY             N               N               N
   AUREL        Fax In           WEEKLY             Y               N               N
   AVALA       Pick Up           WEEKLY             Y               N               N
   AVDCO        Fax In           WEEKLY             Y               N               N
   AXOEL        Fax In           WEEKLY             N               N               N
   BACEL       Call In           WEEKLY             Y               N               N
   BACON      Web Remote         WEEKLY             Y               N               N
   BALLT       Call In           WEEKLY             Y               Y               N
   BALON        Fax In           WEEKLY             N               N               N
   BARAS       Call In        SEMI-MONTHLY          Y               N               N
   BARBA       Call In           WEEKLY             N               N               N
   BAREL        Fax In           WEEKLY             Y               N               N
   BARRY       Call In         BI-WEEKLY            Y               Y               N
   BARTH      Web Remote         WEEKLY             Y               N               N
   BASSP      Web Remote         WEEKLY             Y               N               Y
   BBGAR         Fax            MONTHLY             N               N               Y
   BDREA        Fax In         BI-WEEKLY            Y               N               N
   BEAVR      Web Remote         WEEKLY             N               Y               N
   BEDCC       Call In           WEEKLY             Y               Y               Y
   BEDCO        Fax In           WEEKLY             N               N               N
   BEERS        Fax In           WEEKLY             N               N               N
   BEGAT        Fax In           WEEKLY             N               N               N
   BELWA        Fax In           WEEKLY             Y               N               N
   BENCH       Call In         BI-WEEKLY            Y               N               N
   BEULA       Call In           WEEKLY             N               N               N
   BEYON        Fax In           WEEKLY             Y               N               N
   BGELC      Web Remote         WEEKLY             N               Y               N
   BGELI      Web Remote         WEEKLY             N               Y               N
   BGLI2      Web Remote         WEEKLY             N               Y               N
   BGORG      Web Remote         WEEKLY             N               Y               N
   BGRES      Web Remote         WEEKLY             Y               N               Y
   BIGMA        Fax In           WEEKLY             Y               N               N
   BLAIN      Web Remote         WEEKLY             N               N               N
   BLTEL       Call In           WEEKLY             Y               Y               Y
   BMSEL        Fax In           WEEKLY             Y               N               N
   BNVCO       Call In         BI-WEEKLY            Y               N               Y
   BNVIN       Call In           WEEKLY             Y               N               Y
   BOBCT      Web Remote       BI-WEEKLY            Y               Y               Y
   BOBFL      Web Remote       BI-WEEKLY            Y               Y               Y
   BOREN       Call In           WEEKLY             Y               N               N
   BOROI        Fax In           WEEKLY             Y               Y               Y
   BR140        Fax In           WEEKLY             Y               Y               N
   BRAST       Call In           WEEKLY             Y               N               N
   BREEZ        Fax In           WEEKLY             Y               N               N
   BREGO      Web Remote         WEEKLY             Y               Y               N
   BRENA        Fax In           WEEKLY             Y               N               N
   BRENC      Web Remote       BI-WEEKLY            Y               N               Y
   BRIAN      Web Remote         WEEKLY             Y               Y               N
   BRIDX      Web Remote         WEEKLY             Y               Y               Y
   BRIGI       Call In           WEEKLY             N               N               N
   BRIPA      Web Remote         WEEKLY             Y               Y               N
   BRITR      Web Remote         WEEKLY             Y               Y               N
   BROCO        Fax In           WEEKLY             Y               N               N
   BRORD        Fax In         BI-WEEKLY            Y               N               N
   BRRCO      Web Remote         WEEKLY             Y               N               N
   BRUCE       Pick Up           WEEKLY             Y               Y               N
   BSCON      Web Remote         WEEKLY             Y               N               N
   BUIEX       Call In        SEMI-MONTHLY          Y               N               N
   BUILD      Web Remote         WEEKLY             Y               N               N
   BUIMR        Fax In           WEEKLY             Y               N               Y
   BULLD        Fax In           WEEKLY             N               N               N
   BURT2        Fax In           WEEKLY             N               N               N
   BURTI        Fax In           WEEKLY             N               N               N
   C6070       Call In           WEEKLY             Y               N               Y
   CAHCO       Call In           WEEKLY             Y               N               N
   CALAS        Fax In           WEEKLY             N               N               N
   CALEC        Fax In           WEEKLY             Y               N               N
   CALGI        Fax In           WEEKLY             N               N               N
   CALLE       Call In           WEEKLY             Y               N               N
   CALVM        Remote           WEEKLY             Y               N               N
   CAMCO        Fax In         BI-WEEKLY            Y               Y               Y
   CAMPU        Fax In           WEEKLY             Y               N               Y
   CANDO      Web Remote         WEEKLY             Y               Y               Y
   CANEL        Fax In           WEEKLY             N               N               Y
   CAPSY      Web Remote         WEEKLY             N               Y               N
   CARAB      Web Remote         WEEKLY             Y               N               Y
   CAREL       Call In           WEEKLY             Y               N               N
   CARLE        Fax In           WEEKLY             Y               N               N
   CAROC        Fax In           WEEKLY             N               N               Y
   CARSH       Call In           WEEKLY             Y               Y               Y
   CARSU        Fax In           WEEKLY             N               N               N
   CAUSE      Web Remote         WEEKLY             Y               N               Y
   CBROS       Call In           WEEKLY             Y               Y               Y
   CCCAR        Fax In           WEEKLY             Y               Y               N
   CCCOR        Fax In           WEEKLY             Y               N               N
   CCNJI      Web Remote         WEEKLY             Y               Y               N
   CDCVS      Web Remote        MONTHLY             Y               Y               N
   CDRYW      Web Remote         WEEKLY             Y               N               Y
   CENEX        Fax In          MONTHLY             Y               N               N
   CENJW      Web Remote         WEEKLY             Y               Y               N
   CENPA      Web Remote         WEEKLY             Y               Y               Y
   CENTE      Web Remote         WEEKLY             Y               Y               N
   CERFC        Fax In           WEEKLY             N               N               N
   CFIRE        Fax In          MONTHLY             Y               Y               Y
   CHATS       Call In           WEEKLY             Y               N               N
   CHLEQ      Web Remote         WEEKLY             Y               Y               Y
   CHUNG      Web Remote         WEEKLY             Y               N               Y
   CIA02        Fax In           WEEKLY             Y               N               N
   CIASS        Fax In           WEEKLY             Y               N               N
   CIOIN      Web Remote         WEEKLY             Y               N               Y
   CIREG      Web Remote         WEEKLY             Y               N               N
   CIRUS        Fax In           WEEKLY             Y               N               N
   CITYW      Web Remote         WEEKLY             Y               N               Y
   CIVCO      Web Remote         WEEKLY             N               N               N
   CIVET      Web Remote         WEEKLY             N               N               N
   CIVJV      Web Remote         WEEKLY             Y               Y               N
   CIWID      Web Remote         WEEKLY             Y               N               Y
   CKFOC      Web Remote         WEEKLY             Y               N               Y
   CLASY        Fax In           WEEKLY             Y               Y               N
   CLAYF        Fax In         BI-WEEKLY            Y               Y               N
   CLCON        Fax In           WEEKLY             Y               Y               N
   CLEAN      Web Remote         WEEKLY             Y               Y               Y
   CLEBR        Fax In           WEEKLY                                             N
   CLIUN      Web Remote         WEEKLY             N               N               N
   CMECO        Fax In           WEEKLY             Y               N               N
   CMICO      Web Remote         WEEKLY             Y               N               N
   CMPCO       Call In           WEEKLY             N               N               N
   CMSSI        Fax In           WEEKLY             Y               N               N
   CNCOO        Fax In           WEEKLY             Y               N               N
   CNMAN      Web Remote         WEEKLY             Y               N               Y
   CNVBR      Web Remote         WEEKLY             N               N               Y
   COELC      Web Remote         WEEKLY             N               N               Y
   COLIN       Call In           WEEKLY             N               N               N
   COLLC      Web Remote         WEEKLY             Y               Y               Y
   COMPR      Web Remote         WEEKLY             Y               Y               Y
   CONCO        Fax In           WEEKLY             Y               N               N
   CONE3        Fax In           WEEKLY             N               N               N
   CONFD      Web Remote         WEEKLY             Y               Y               N
   CONIN        Fax In           WEEKLY             Y               N               Y
   CONLC        Fax In           WEEKLY             Y               N               Y
   CONPR        Fax In           WEEKLY             N               N               N
   CONSE      Web Remote         WEEKLY             Y               N               N
   CONTI        Fax In           WEEKLY             N               N               N
   COREP        Fax In         BI-WEEKLY            N               N               N
   CORNR        Fax In           WEEKLY             Y               N               N
   CPART      Web Remote         WEEKLY             Y               Y               N
   CPEGI        Fax In           WEEKLY             Y               N               N
   CPMBU      Web Remote         WEEKLY             Y               Y               Y
   CRANB       Call In           WEEKLY             Y               Y               Y
   CRCCI        Fax In           WEEKLY             Y               N               N
   CREDR       Call In           WEEKLY             Y               N               Y
   CRLLC      Web Remote         WEEKLY             Y               N               N
   CROPS       Call In           WEEKLY             Y               N               Y
   CTCII      Web Remote         WEEKLY             Y               Y               Y
   CUTTE        Fax In         BI-WEEKLY            Y               N               N
   DAIDI      Web Remote         WEEKLY             Y               N               Y
   DAIDO        Fax In           WEEKLY                                             N
   DANCO        Fax In           WEEKLY             Y               Y               N
   DANIE      Web Remote         WEEKLY             N               N               N
   DARCO      Web Remote         WEEKLY             Y               N               Y
   DAURI      Web Remote         WEEKLY             N               N               N
   DAVID        Fax In           WEEKLY             N               N               N
   DCLLC        Fax In           WEEKLY             Y               N               N
   DDELE        Fax In           WEEKLY             Y               N               N
   DDLEN        Fax In           WEEKLY             Y               N               N
   DEAEL       Call In           WEEKLY             N               N               N
   DEAL2       Call In           WEEKLY             N               N               N
   DEAL3       Call In           WEEKLY             N               N               N
   DEALP       Pick Up           WEEKLY             N               N               N
   DEBCO      Web Remote         WEEKLY             Y               N               N
   DELMA      Web Remote         WEEKLY             N               N               N
   DELPH        Fax In           WEEKLY             N               N               N
   DELUX        Fax In           WEEKLY             N               N               N
   DENEL      Web Remote         WEEKLY             Y               Y               Y
   DEPOT      Web Remote         WEEKLY             Y               Y               N
   DESWE       Call In         BI-WEEKLY            Y               N               Y
   DEWCC      Web Remote         WEEKLY             N               N               N
   DIAIN      Web Remote         WEEKLY             Y               N               N
   DIERK        Fax In           WEEKLY             N               N               N
   DIFAM        Remote           WEEKLY             N               Y               N
   DIFER       Call In         BI-WEEKLY            Y               N               N
   DIGPI       Call In           WEEKLY             Y               N               N
   DIMDY      Web Remote         WEEKLY             Y               N               N
   DINOR        Fax In           WEEKLY             N               N               N
   DJCOS      Web Remote         WEEKLY             Y               Y               Y
   DJMEC      Web Remote         WEEKLY             Y               Y               Y
   DKCON        Fax In           WEEKLY             Y               N               N
   DKWAR        Fax In           WEEKLY             Y               N               N
   DLB02      Web Remote         WEEKLY             N               N               Y
   DLOFT       Call In           WEEKLY             Y               Y               Y
   DMELE      Web Remote         WEEKLY             Y               N               N
   DMGMT        Fax In           WEEKLY             Y               N               N
   DNCON        Fax In           WEEKLY             N               N               N
   DOBCO      Web Remote         WEEKLY             N               N               Y
   DOCED       Call In         BI-WEEKLY            N               N               N
   DORIA        Fax In           WEEKLY             N               N               Y
   DPFIN       Call In          MONTHLY             Y               N               N
   DRCAL       Call In         BI-WEEKLY            Y               N               N
   DRGMS       Call In         BI-WEEKLY            Y               Y               N
   DRUCK      Web Remote       BI-WEEKLY            Y               N               Y
   DSABA      Web Remote         WEEKLY             Y               N               N
   DUNSK       Call In           WEEKLY             Y               N               N
   DVS02       Pick Up         BI-WEEKLY            Y               N               N
   DVS03       Pick Up         BI-WEEKLY                                            N
   DVS04       Pick Up         BI-WEEKLY            Y               N               N
   DVS05       Pick Up         BI-WEEKLY            Y               N               N
   DVS07       Pick up         BI-WEEKLY            Y               N               N
   DVS10       Pick Up         BI-WEEKLY                                            N
   DVS11       Pick up         BI-WEEKLY            Y               N               N
   DVS12       Pick up         BI-WEEKLY            Y               N               N
   DYNPR        Fax In           WEEKLY             N               N               N
   EACOA        Fax In           WEEKLY             Y               N               Y
   EARCO      Web Remote         WEEKLY             Y               N               Y
   EATEC      Web Remote         WEEKLY             Y               Y               Y
   EATEL        Fax In           WEEKLY             Y               N               N
   ECHAZ        Fax In           WEEKLY             Y               N               Y
   EDIEQ      Web Remote         WEEKLY             Y               Y               N
   EELEC      Web Remote         WEEKLY             Y               N               N
   EGGEL      Web Remote         WEEKLY             Y               Y               N
   EICAS      Web Remote         WEEKLY                                             N
   ELDER        Fax In           WEEKLY             Y               N               N
   ELIND       Pick Up           WEEKLY             N               Y               N
   ELSOL      Web Remote         WEEKLY             N               Y               N
   ELTIN      Web Remote         WEEKLY             Y               Y               Y
   EMCIW      Web Remote         WEEKLY             Y               N               N
   EMMYI      Web Remote         WEEKLY             N               N               Y
   EMPCO      Web Remote         WEEKLY             Y               Y               Y
   EMPIL       Call In           WEEKLY             N               N               N
   EMPIR       Pick Up           WEEKLY             Y               N               N
   ENDEY        Fax In           WEEKLY             N               N               N
   ENGPA      Web Remote         WEEKLY             Y               N               N
   ENLEA      Web Remote         WEEKLY             Y               N               N
   ENVOY        Fax In         BI-WEEKLY            Y               N               N
   EQUIP        Fax In           WEEKLY             Y               N               N
   EQUOF        Fax In           WEEKLY             Y               N               N
   ERRIC      Web Remote         WEEKLY             Y               Y               Y
   EUROP       Call In           WEEKLY             Y               N               Y
   EVERE        Fax In           WEEKLY             N               N               N
   EVERP      Web Remote       BI-WEEKLY            Y               Y               Y
   EVERU      Web Remote         WEEKLY             Y               Y               Y
   EWG01       Pick Up           WEEKLY             Y               N               N
   EWG02       Pick Up           WEEKLY             Y               N               N
   EWG04       Pick Up           WEEKLY             Y               N               N
   EWG05       Pick Up           WEEKLY             Y               N               N
   EWG06       Pick Up           WEEKLY             Y               N               N
   EWG07       Pick Up           WEEKLY             Y               N               N
   EWG08       Pick Up           WEEKLY             Y               N               N
   EWG09       Pick Up           WEEKLY             Y               N               N
   EWG10       Pick Up           WEEKLY             Y               N               N
   EXREL        Fax In           WEEKLY             Y               N               Y
   EYENJ       Call In           WEEKLY             Y               N               Y
   EYEST       Call In           WEEKLY             Y               N               Y
   EZECO      Web Remote         WEEKLY             Y               N               Y
   FARHE       Call In           WEEKLY             Y               Y               Y
   FECON      Web Remote         WEEKLY             Y               Y               Y
   FERCC      Web Remote         WEEKLY             Y               Y               Y
   FERMA      Web Remote         WEEKLY             Y               Y               Y
   FIRCO        Fax In           WEEKLY             Y               N               Y
   FIVCG       Call In           WEEKLY             N               N               N
   FIVES      Web Remote         WEEKLY             N               N               N
   FJSSE      Web Remote         WEEKLY             Y               N               Y
   FLEDE       Call In           WEEKLY             N               N               Y
   FLEEL        Fax In           WEEKLY             N               N               N
   FMCEL        Fax In           WEEKLY             Y               Y               N
   FORSA      Web Remote         WEEKLY             Y               N               N
   FOUCO      Web Remote         WEEKLY             Y               Y               N
   FRANC      Web Remote         WEEKLY             Y               Y               N
   FRATC      Web Remote         WEEKLY             Y               N               Y
   FRATE      Web Remote         WEEKLY             Y               N               Y
   FREDG      Web Remote         WEEKLY             N               Y               N
   FRI07      Web Remote         WEEKLY             Y               Y               N
   FRI11      Web Remote         WEEKLY             Y               Y               N
   FRI92      Web Remote         WEEKLY             Y               Y               N
   FRITC      Web Remote         WEEKLY             Y               Y               N
   GABST      Web Remote         WEEKLY             Y               N               N
   GALCI       Call In         BI-WEEKLY            Y               N               N
   GALEL      Web Remote         WEEKLY             Y               Y               Y
   GARCC      Web Remote         WEEKLY             N               N               N
   GARFA      Web Remote         WEEKLY             Y               N               N
   GARGU      Web Remote         WEEKLY             N               N               N
   GARNU      Web Remote         WEEKLY             Y               N               Y
   GARRS      Web Remote         WEEKLY             Y               N               Y
   GARTE      Web Remote         WEEKLY             Y               N               Y
   GATEI        Fax In           WEEKLY             N               N               N
   GATEW        Fax In           WEEKLY             Y               Y               N
   GBIIN      Web Remote         WEEKLY             Y               N               Y
   GBSOU      Web Remote         WEEKLY             Y               Y               Y
   GCDMW        Fax In           WEEKLY             Y               N               N
   GCOMM       Call In          MONTHLY             Y               N               N
   GDCON        Fax In           WEEKLY             Y               N               Y
   GECON      Web Remote         WEEKLY             Y               N               N
   GEGEL      Web Remote         WEEKLY             Y               Y               Y
   GEMFI        Fax In         BI-WEEKLY            Y               N               N
   GENPL       Call In           WEEKLY             N               N               Y
   GESTF        Fax In           WEEKLY             Y               N               N
   GFAST        Fax In           WEEKLY             N               N               N
   GIBCO      Web Remote         WEEKLY             Y               N               N
   GIPSY      Web Remote         WEEKLY             Y               Y               Y
   GLEND       Call In           WEEKLY             N               N               N
   GMAEL      Web Remote         WEEKLY             N               Y               N
   GOLDI       Call In           WEEKLY             N               N               N
   GOTHM      Web Remote         WEEKLY             Y               N               Y
   GOTLI        Fax In           WEEKLY             N               N               N
   GOTTE        Fax In           WEEKLY             Y               N               N
   GRAEL      Web Remote         WEEKLY             N               N               N
   GRAIN       Pick Up           WEEKLY             Y               N               N
   GRAMC        Fax In           WEEKLY             N               N               N
   GRARD        Fax In           WEEKLY             N               N               N
   GREEN        Fax In           WEEKLY             N               Y               N
   GREJA      Web Remote       BI-WEEKLY            Y               Y               Y
   GRENA        Fax In           WEEKLY             Y               N               N
   GRESD      Web Remote         WEEKLY             Y               N               Y
   GTLCO      Web Remote         WEEKLY             Y               Y               N
   GUMMS       Call In         BI-WEEKLY            Y               Y               N
   H1140       Call In           WEEKLY             Y               N               N
   H1470       Call In           WEEKLY             Y               Y               N
   H1478       Call In           WEEKLY             Y               Y               N
   H1640        Fax In           WEEKLY             N               N               N
   H2265       Call In           WEEKLY             Y               Y               N
   H2266        Fax In           WEEKLY             Y               N               N
   H2267        Fax In           WEEKLY             Y               N               N
   H2632       Call In           WEEKLY             N               N               N
   H4310        Fax In           WEEKLY             N               N               N
   HAFCO        Fax In           WEEKLY             Y               N               N
   HAHRC       Call In           WEEKLY             Y               Y               Y
   HAMAU       Call In           WEEKLY             Y               N               Y
   HARAE      Web Remote         WEEKLY             N               N               Y
   HAREL        Fax In           WEEKLY             N               N               N
   HARLE        Fax In           WEEKLY             N               N               N
   HARPA      Web Remote         WEEKLY             Y               N               Y
   HEACO      Web Remote         WEEKLY             Y               N               N
   HEAVY        Fax In           WEEKLY             Y               N               N
   HENCO      Web Remote         WEEKLY             Y               N               N
   HGINC        Fax In           WEEKLY             Y               Y               N
   HHMAS       Pick Up           WEEKLY             Y               N               N
   HIGTE        Fax In           WEEKLY             Y               N               N
   HILTN       Call In          MONTHLY             Y               N               Y
   HLELE      Web Remote         WEEKLY             Y               N               N
   HLENJ      Web Remote         WEEKLY             Y               Y               N
   HOMES       Call In         BI-WEEKLY            Y               N               N
   HOOKR        Fax In           WEEKLY             N               N               N
   HORZN      Web Remote       BI-WEEKLY            N               N               N
   HPDES        Fax In           WEEKLY             Y               N               N
   HUBIC        Fax In           WEEKLY             Y               N               Y
   HUELE        Fax In           WEEKLY             N               N               N
   HUTCH        Fax In           WEEKLY             Y               N               N
   HYPOL       Call In           WEEKLY             N               N               N
   HYUND       Call In          MONTHLY             Y               Y               N
   IANCO        Fax In           WEEKLY             Y               Y               N
   ICONE      Web Remote         WEEKLY             Y               Y               Y
   IDEAL      Web Remote         WEEKLY             Y               Y               Y
   IMDEV        Fax In           WEEKLY             Y               N               N
   IMPPL       Call In           WEEKLY             Y               N               Y
   INCAP      Web Remote         WEEKLY             Y               N               Y
   INCHE      Web Remote         WEEKLY             Y               N               Y
   INCOE      Web Remote         WEEKLY             Y               Y               N
   INCON      Web Remote         WEEKLY             Y               Y               Y
   INDES      Web Remote         WEEKLY             Y               N               N
   INNER      Web Remote         WEEKLY             N               N               N
   INPLA      Web Remote         WEEKLY             Y               N               Y
   INPOO      Web Remote         WEEKLY             Y               N               Y
   INTAL        Fax In           WEEKLY             Y               N               N
   INTEG        Remote           WEEKLY             Y               N               N
   IROIR        Fax In           WEEKLY             Y               N               Y
   IRONE      Web Remote         WEEKLY             Y               N               Y
   IRONM      Web Remote         WEEKLY             Y               N               Y
   ISCHC       Call In           WEEKLY             Y               N               Y
   ISSPA       Call In           WEEKLY             Y               N               N
   ISTAP       Call In           WEEKLY             Y               N               N
   JACBS        Fax In           WEEKLY             Y               N               Y
   JACKS        Fax In           WEEKLY             N               N               N
   JACME      Web Remote       BI-WEEKLY            Y               N               Y
   JACON      Web Remote         WEEKLY             N               N               Y
   JADET        Fax In           WEEKLY             Y               N               Y
   JAFEQ       Call In           WEEKLY             Y               N               N
   JAHA2        Fax In         BI-WEEKLY            Y               N               Y
   JAMS2      Web Remote         WEEKLY             Y               N               N
   JBCOR      Web Remote         WEEKLY             N               N               N
   JBINC      Web Remote         WEEKLY             Y               N               Y
   JBING       Call In           WEEKLY             N               N               N
   JBROS        Fax In           WEEKLY             N               N               N
   JDCON        Fax In           WEEKLY             Y               N               N
   JEIND        Fax In           WEEKLY             Y               N               Y
   JELBP       Call In           WEEKLY             Y               N               N
   JFMAN        Fax In           WEEKLY             Y               N               N
   JFMFL        Fax In           WEEKLY             Y               Y               N
   JGELE      Web Remote         WEEKLY             Y               N               N
   JHECO       Call In           WEEKLY             N               N               N
   JJCCC        Fax In           WEEKLY             N               N               N
   JJROS      Web Remote         WEEKLY             N               N               N
   JLEFP      Web Remote         WEEKLY             Y               N               Y
   JLEIN      Web Remote         WEEKLY             Y               N               Y
   JLEN1      Web Remote         WEEKLY             Y               N               Y
   JLTEQ      Web Remote         WEEKLY             N               N               N
   JMELE      Web Remote         WEEKLY             Y               N               N
   JNTLE         Fax             WEEKLY             N               N               N
   JOHNC      Web Remote         WEEKLY             Y               N               Y
   JOHNM      Web Remote         WEEKLY             Y               N               Y
   JOMED        Fax In           WEEKLY             Y               N               N
   JOMEL      Web Remote         WEEKLY             Y               N               Y
   JRDEL        Fax In           WEEKLY             Y               Y               N
   JRREY        Fax In           WEEKLY             N               N               N
   JRWAS      Web Remote         WEEKLY             N               N               N
   JSTAR        Fax In           WEEKLY             Y               Y               Y
   JSTR2        Fax In           WEEKLY             Y               Y               Y
   JTHWC        Fax In           WEEKLY             Y               N               N
   JUNPI       Call In           WEEKLY             Y               N               N
   JUSEL      Web Remote         WEEKLY             Y               Y               N
   KAFKA        Fax In           WEEKLY             Y               Y               N
   KATCO        Remote           WEEKLY             N               Y               N
   KCI02      Web Remote         WEEKLY             Y               N               N
   KCI03      Web Remote         WEEKLY             Y               N               N
   KECON      Web Remote         WEEKLY             Y               N               Y
   KEMSC        Fax In           WEEKLY             Y               N               N
   KENMA        Fax In           WEEKLY             N               N               N
   KEYEN       Call In           WEEKLY             Y               N               Y
   KIDDI        Fax In         BI-WEEKLY            Y               N               N
   KINEL      Web Remote         WEEKLY             N               N               N
   KINGC        Fax In           WEEKLY             Y               N               Y
   KISOF      Web Remote        MONTHLY             Y               Y               N
   KLEAR       Call In           WEEKLY             N               N               N
   KLEEL        Fax In           WEEKLY             N               N               N
   KMELE        Fax In           WEEKLY             N               N               Y
   KNIMA       Pick Up           WEEKLY             Y               Y               N
   KNIOF       Pick Up           WEEKLY             Y               Y               N
   KOCCO        Fax In           WEEKLY             N               N               N
   KRELE       Call In           WEEKLY             N               N               N
   KRFSD        Fax In           WEEKLY             N               N               Y
   KRSWI        Fax In           WEEKLY             N               N               N
   KRYTN      Web Remote       BI-WEEKLY            Y               Y               Y
   KTCCO       Call In           WEEKLY             Y               N               Y
   LABCO        Fax In           WEEKLY             N               Y               N
   LADIS        Fax In         BI-WEEKLY            Y               N               Y
   LADPP        Fax In         BI-WEEKLY            Y               N               Y
   LAGR2        Fax In           WEEKLY             N               N               N
   LALLC        Fax In           WEEKLY             Y               N               N
   LAMPP        Fax In           WEEKLY             Y               N               Y
   LANCO        Fax In           WEEKLY             Y               N               N
   LANEL        Fax In           WEEKLY             Y               N               N
   LAPOM        Fax In           WEEKLY             Y               Y               Y
   LAQGR        Fax In           WEEKLY             N               N               N
   LAQIC        Fax In           WEEKLY             N               N               N
   LASPE        Fax In           WEEKLY             N               N               N
   LATCO        Fax In           WEEKLY             Y               N               Y
   LAWNR       Pick Up           WEEKLY             Y               N               N
   LAWSC        Fax In           WEEKLY             Y               Y               N
   LAZYB       Call In         BI-WEEKLY            N               N               N
   LBELE        Fax In           WEEKLY             N               Y               N
   LBIIN        Fax In           WEEKLY             Y               N               Y
   LE342       Call In           WEEKLY             Y               N               N
   LEG03      Web Remote         WEEKLY             Y               N               N
   LEGEN      Web Remote         WEEKLY             Y               Y               N
   LEHRC        Remote           WEEKLY             Y               Y               N
   LEMCO        Fax In           WEEKLY             Y               Y               N
   LEMIC        Fax In           WEEKLY             Y               Y               N
   LEVES        Fax In           WEEKLY             N               N               N
   LEVIN        Remote           WEEKLY             N               N               N
   LGCOI      Web Remote         WEEKLY             Y               Y               Y
   LIAMC        Fax In           WEEKLY             Y               N               N
   LIBCO      Web Remote         WEEKLY             N               N               N
   LIBIN        Remote           WEEKLY             Y               N               N
   LIBLC      Web Remote         WEEKLY             N               N               N              AP
   LIC25      Web Remote         WEEKLY             Y               N               N
   LICCP        Fax In           WEEKLY             Y               N               Y
   LICEL      Web Remote         WEEKLY             Y               N               N
   LINAC        Fax In           WEEKLY             Y               N               N
   LINEL        Fax In           WEEKLY             Y               Y               N
   LIONM       Call In           WEEKLY             N               N               N
   LIPPS        Fax In         BI-WEEKLY            Y               Y               N
   LITRN       Call In           WEEKLY             N               N               N
   LOPES        Fax In           WEEKLY             Y               N               N
   LOUIS      Web Remote         WEEKLY             N               N               N
   LOWMA        Fax In           WEEKLY             N               N               N
   LPCIN      Web Remote         WEEKLY             N               Y               N
   LQCIN        Fax In           WEEKLY             N               N               N
   LRCON        Fax In           WEEKLY             N               N               Y
   LTRON       Call In           WEEKLY             Y               N               N
   LYNBR       Call In           WEEKLY             N               N               N
   MACKX       Call In           WEEKLY             N               N               N
   MACVA      Web Remote         WEEKLY             Y               N               N
   MAGNA        Fax In           WEEKLY             N               N               N
   MALLC      Web Remote         WEEKLY             Y               N               Y
   MAMEC        Fax In           WEEKLY             Y               Y               N
   MANAG      Web Remote         WEEKLY             N               N               N
   MANCI        Fax In           WEEKLY             Y               N               N
   MANEL        Fax In           WEEKLY             Y               N               N
   MARAC        Remote           WEEKLY             N               N               N
   MARBR        Fax In           WEEKLY             N               N               N
   MARIO       Call In           WEEKLY             N               N               Y
   MARQR        Fax In           WEEKLY             Y               Y               N
   MARSN        Fax In           WEEKLY             N               N               N
   MARTI        Fax In           WEEKLY             Y               N               N
   MASPE       Pick Up           WEEKLY             Y               N               N
   MASPT       Pick Up           WEEKLY             Y               N               N
   MASSP       Call In           WEEKLY             Y               N               N
   MASTE        Fax In           WEEKLY             N               N               N
   MATCO        Fax In           WEEKLY             Y               N               N
   MAUSS        Fax In           WEEKLY             N               N               N
   MAXEN      Web Remote         WEEKLY             Y               Y               N
   MAZ25      Web Remote         WEEKLY             N               N               N
   MAZEL      Web Remote         WEEKLY             Y               Y               Y
   MAZEO      Web Remote         WEEKLY             N               Y               N
   MBEM3        Fax In           WEEKLY             N               N               N
   MDBSI      Web Remote         WEEKLY             Y               N               N
   MECCA       Call In           WEEKLY             Y               Y               N
   MECNJ        Fax In           WEEKLY             Y               N               N
   MECOE        Fax In           WEEKLY             Y               N               N
   MECON        Fax In           WEEKLY             N               N               N
   MEDIA       Call In         BI-WEEKLY            Y               N               N
   MEERE      Web Remote         WEEKLY             Y               N               Y
   MELNK        Fax In           WEEKLY             Y               N               N
   MELRS      Web Remote         WEEKLY             Y               N               Y
   MELTO        Fax In           WEEKLY             Y               N               Y
   MERJO       Call In           WEEKLY             Y               N               Y
   MERRC      Web Remote         WEEKLY             Y               N               N
   MERRL        Fax In           WEEKLY             Y               N               N
   MESSU      Web Remote         WEEKLY             Y               N               Y
   METCC        Fax In           WEEKLY             Y               N               N
   METMC        Fax In           WEEKLY             Y               N               N
   METTE        Fax In         BI-WEEKLY            N               N               N
   METTI        Fax In           WEEKLY             N               Y               N
   MEZEL      Web Remote         WEEKLY             Y               Y               Y
   MFEEL        Fax In           WEEKLY             N               N               N
   MGCIN      Web Remote         WEEKLY             Y               Y               Y
   MGLLC      Web Remote         WEEKLY             Y               N               Y
   MIBLP         Fax             WEEKLY             Y               N               N
   MICCP      Web Remote         WEEKLY             Y               N               Y
   MIDCI       Call In           WEEKLY             N               N               Y
   MIDER        Fax In           WEEKLY             N               N               N
   MIKMA        Fax In           WEEKLY             Y               N               N
   MILAD        Fax In           WEEKLY             N               N               N
   MIMCO        Fax In           WEEKLY             N               N               N
   MISTA        Fax In           WEEKLY             Y               N               Y
   MKGCC       Call In         BI-WEEKLY            Y               Y               N
   ML363      Web Remote         WEEKLY             Y               Y               N
   MLPRO      Web Remote         WEEKLY             Y               Y               N
   MLVCO       Pick Up           WEEKLY             Y               N               N
   MMSPC         Fax             WEEKLY             N               N               N
   MNCGE       Call In           WEEKLY             N               N               N
   MOBR2        Fax In           WEEKLY             N               N               N
   MONAD        Fax In           WEEKLY             N               Y               N
   MONEX         Fax            MONTHLY             N               N               N
   MONMO       Call In           WEEKLY             Y               N               Y
   MONTV      Web Remote         WEEKLY             Y               N               Y
   MOR25        Fax In           WEEKLY                                             N
   MORAL        Fax In           WEEKLY             N               N               N
   MORIA      Web Remote         WEEKLY             Y               N               Y
   MORLP        Fax In           WEEKLY             Y               Y               N
   MOSCO        Fax In           WEEKLY             Y               N               Y
   MOUTH       Call In         BI-WEEKLY            Y               Y               N
   MPLLC        Fax In           WEEKLY             Y               Y               N
   MRHAR       Call In           WEEKLY             N               N               N
   MSCOF       Call In         BI-WEEKLY            Y               N               N
   MSCON        Fax In           WEEKLY             N               N               N
   MSCOO        Fax In           WEEKLY             Y               Y               N
   MSCOR       Call In        SEMI-MONTHLY          N               N               Y
   MTCCC        Fax In           WEEKLY             Y               N               N
   MTRAN       Call In           WEEKLY             Y               Y               Y
   MULEL        Fax In           WEEKLY             Y               N               N
   MVUCC        Fax In           WEEKLY             Y               N               N
   MWD01       Pick Up         BI-WEEKLY            Y               N               N
   MWD06       Pick Up         BI-WEEKLY            Y               N               N
   MWD08       Pick Up         BI-WEEKLY            Y               N               N
   MWD09        Fax In         BI-WEEKLY                                            N
   MWD13       Pick up         BI-WEEKLY            Y               N               N
   MWD14       Pick Up         BI-WEEKLY            Y               N               N
   MWILL       Call In           WEEKLY             Y               N               N
   MZPAT        Fax In           WEEKLY             Y               N               N
   NABCO      Web Remote         WEEKLY             Y               N               N
   NABER      Web Remote         WEEKLY             Y               Y               N
   NAGCO       Call In           WEEKLY             Y               N               Y
   NATAL        Fax In           WEEKLY             N               N               N
   NATBO       Call In           WEEKLY             N               Y               N
   NBSYS      Web Remote         WEEKLY             Y               Y               N
   NCCUT        Fax In           WEEKLY             Y               N               Y
   NEWYC        Fax In           WEEKLY             Y               Y               N
   NIGOC      Web Remote         WEEKLY             N               N               N
   NILES        Fax In           WEEKLY             N               Y               N
   NJCAR       Call In           WEEKLY             N               N               Y
   NJDEL      Web Remote         WEEKLY             Y               N               N
   NJRCO        Fax In           WEEKLY             Y               Y               N
   NJSEL        Fax In           WEEKLY             Y               N               N
   NLIFE        Fax In           WEEKLY             Y               N               Y
   NOCON      Web Remote         WEEKLY             Y               N               Y
   NONST      Web Remote         WEEKLY             Y               N               Y
   NORCC      Web Remote         WEEKLY             Y               N               Y
   NOREQ      Web Remote         WEEKLY             Y               N               N
   NORLA        Fax In           WEEKLY             N               N               N
   NORPM      Web Remote         WEEKLY             Y               N               Y
   NORSS      Web Remote         WEEKLY             Y               N               Y
   NOUVE       Pick Up           WEEKLY             N               Y               N
   NUCOP        Fax In           WEEKLY             N               N               Y
   NUSTA       Pick Up           WEEKLY             N               Y               N
   NYCAC        Fax In         BI-WEEKLY            Y               Y               N
   NYINS      Web Remote         WEEKLY             Y               N               N
   NYPLA        Fax In           WEEKLY             Y               N               Y
   OCCID        Fax In         BI-WEEKLY            Y               N               N
   OGDEN      Web Remote         WEEKLY             Y               N               Y
   OHARA        Fax In           WEEKLY             N               Y               N
   OHMEL        Fax In           WEEKLY             Y               N               N
   OLMVC       Call In         BI-WEEKLY            Y               Y               N
   ONAIR        Fax In           WEEKLY             Y               N               N
   ONPR2      Web Remote         WEEKLY             Y               N               N
   ORANG      Web Remote         WEEKLY             Y               Y               Y
   ORION      Web Remote         WEEKLY             Y               Y               N
   PABST        Fax In           WEEKLY             N               N               N
   PACCS        Fax In           WEEKLY             Y               N               N
   PACEL       Call In           WEEKLY             Y               N               N
   PACST        Fax In           WEEKLY             Y               N               N
   PAICO        Fax In           WEEKLY             Y               N               N
   PALEN      Web Remote         WEEKLY             Y               N               N
   PALEY        Fax In           WEEKLY             Y               N               N
   PALLC       Call In         BI-WEEKLY            Y               N               N
   PALOF      Web Remote         WEEKLY             Y               N               N
   PANCO      Web Remote         WEEKLY             N               N               N
   PANTA        Fax In           WEEKLY             N               N               N
   PANTE        Fax In           WEEKLY             Y               N               N
   PAOLE       Call In           WEEKLY             N               N               N
   PAREC      Web Remote         WEEKLY             N               N               N
   PAREN        Fax In           WEEKLY             N               N               N
   PARKV       Call In           WEEKLY             Y               N               N
   PARSI      Web Remote         WEEKLY             Y               N               N
   PARWR      Web Remote         WEEKLY             N               N               N
   PATHW      Web Remote         WEEKLY             N               Y               N
   PATRO       Pick Up           WEEKLY             N               N               N
   PATTR      Web Remote         WEEKLY             Y               Y               N
   PAVIN        Fax In           WEEKLY             N               N               N
   PCONS        Fax In           WEEKLY             N               N               N
   PEENT        Fax In           WEEKLY             Y               N               Y
   PELLC      Web Remote         WEEKLY             Y               Y               Y
   PEN23      Web Remote         WEEKLY             Y               Y               N
   PEN32      Web Remote         WEEKLY             Y               Y               N
   PEN35      Web Remote         WEEKLY             Y               Y               N
   PEN38      Web Remote         WEEKLY             Y               Y               N
   PEN40      Web Remote         WEEKLY             Y               Y               N
   PEN42      Web Remote         WEEKLY             Y               Y               N
   PEN45      Web Remote         WEEKLY             Y               Y               N
   PEN57      Web Remote         WEEKLY             Y               Y               N
   PEN60      Web Remote         WEEKLY             Y               Y               N
   PEN62      Web Remote         WEEKLY             Y               Y               N
   PEN63      Web Remote         WEEKLY             Y               Y               N
   PEN65      Web Remote         WEEKLY             Y               Y               N
   PEN66      Web Remote         WEEKLY             Y               Y               N
   PEN67      Web Remote         WEEKLY             Y               Y               N
   PEN69      Web Remote         WEEKLY             Y               Y               N
   PEN76      Web Remote         WEEKLY             Y               Y               N
   PEN77      Web Remote         WEEKLY             Y               Y               N
   PEN79      Web Remote         WEEKLY             Y               Y               N
   PEN80      Web Remote         WEEKLY             Y               Y               N
   PEN85      Web Remote       BI-WEEKLY            Y               Y               N
   PEN89      Web Remote         WEEKLY             Y               Y               N
   PEN96      Web Remote         WEEKLY             Y               Y               N
   PEN99      Web Remote         WEEKLY             Y               Y               N
   PENNB      Web Remote         WEEKLY             Y               N               N
   PEQRC        Fax In           WEEKLY             Y               N               N
   PERCO        Fax In           WEEKLY             Y               N               N
   PEREL      Web Remote         WEEKLY             Y               Y               Y
   PESTA      Web Remote         WEEKLY             N               N               N
   PETCT        Fax In           WEEKLY             Y               N               N
   PETEX      Web Remote         WEEKLY             N               Y               Y
   PETLA      Web Remote         WEEKLY             N               Y               Y
   PHAS1        Fax In           WEEKLY             N               N               N
   PHILM        Fax In           WEEKLY             Y               N               N
   PHOSE        Fax In           WEEKLY             N               Y               N
   PHOSM        Fax In           WEEKLY             Y               N               N
   PICJC      Web Remote         WEEKLY             Y               Y               N
   PICON        Remote           WEEKLY             N               N               N
   PINEN      Web Remote         WEEKLY             Y               Y               Y
   PINNI      Web Remote         WEEKLY             N               N               N
   PINTO        Fax In           WEEKLY             N               N               N
   PLAME         Fax             WEEKLY             Y               N               Y
   PLEIB       Call In           WEEKLY             Y               Y               Y
   PLEKE        Remote           WEEKLY             Y               N               N
   PLEVY      Web Remote         WEEKLY             Y               Y               N
   PMCJV        Remote           WEEKLY             N               N               N
   PMPIN        Fax In           WEEKLY             N               N               Y
   PMSCO        Fax In           WEEKLY             N               N               N
   PN108      Web Remote         WEEKLY             Y               Y               N
   PN110      Web Remote         WEEKLY             Y               Y               N
   PN113      Web Remote       BI-WEEKLY            Y               Y               N
   PN124      Web Remote         WEEKLY             Y               Y               N
   PN130      Web Remote         WEEKLY             Y               Y               N
   PN135      Web Remote         WEEKLY             Y               Y               N
   PN136      Web Remote         WEEKLY             Y               Y               N
   PN138      Web Remote         WEEKLY             Y               Y               N
   PN142      Web Remote         WEEKLY             Y               Y               N
   PN144      Web Remote         WEEKLY             Y               Y               N
   PN151      Web Remote         WEEKLY             Y               Y               N
   PN153      Web Remote         WEEKLY             Y               Y               N
   PN155      Web Remote         WEEKLY             Y               Y               N
   PN156      Web Remote         WEEKLY             Y               Y               N
   PN173      Web Remote         WEEKLY             Y               Y               N
   PN189      Web Remote         WEEKLY             Y               Y               N
   PN192      Web Remote         WEEKLY             Y               Y               N
   POMAL      Web Remote         WEEKLY             N               Y               N
   POSIT        Fax In           WEEKLY             Y               N               N
   POWEL      Web Remote         WEEKLY             N               N               Y
   POWER        Fax In           WEEKLY             N               N               N
   PRATC        Fax In           WEEKLY             Y               N               N
   PRCON        Fax In           WEEKLY             Y               N               Y
   PREDR      Web Remote         WEEKLY             Y               Y               Y
   PREEL      Web Remote         WEEKLY             Y               N               Y
   PREME        Fax In           WEEKLY             Y               Y               N
   PREMI        Remote           WEEKLY             Y               N               N
   PREMT        Remote           WEEKLY             Y               N               N
   PREPY      Web Remote         WEEKLY             Y               N               Y
   PRESP        Fax In           WEEKLY             Y               Y               N
   PRICO      Web Remote         WEEKLY             Y               N               N
   PRIDE        Fax In           WEEKLY             Y               Y               N
   PRIEL        Fax In           WEEKLY             Y               N               N
   PRIEN      Web Remote         WEEKLY             N               N               Y
   PRIMC      Web Remote         WEEKLY             Y               N               Y
   PRIPA      Web Remote         WEEKLY             N               N               Y
   PRMEL      Web Remote         WEEKLY             Y               Y               Y
   PROFP        Fax In           WEEKLY             Y               Y               Y
   PROPT         Fax             WEEKLY             Y               N               Y
   PROVE      Web Remote         WEEKLY             Y               N               N
   PROVN      Web Remote         WEEKLY             Y               N               N
   PRPAK       Call In          MONTHLY             Y               Y               Y
   PRPSE      Web Remote         WEEKLY             Y               Y               Y
   PRUDE       Call In           WEEKLY             N               N               N
   PSIPL      Web Remote         WEEKLY             Y               N               Y
   PSSUC       Pick Up           WEEKLY             N               N               N
   PSTEL        Fax In           WEEKLY             Y               N               N
   PTE03        Fax In           WEEKLY             Y               Y               N
   PTE25        Fax In           WEEKLY             Y               Y               N
   PTLEL        Fax In           WEEKLY             Y               N               Y
   PTRBR      Web Remote         WEEKLY             Y               N               N
   PTRUC       Call In           WEEKLY             Y               N               N
   PUBUM        Fax In           WEEKLY             Y               N               N
   PUMIN        Fax In           WEEKLY             Y               N               N
   QUAEL        Fax In           WEEKLY             Y               N               N
   QUALI      Web Remote         WEEKLY             Y               Y               Y
   QUCON      Web Remote         WEEKLY             Y               N               Y
   QUE03        Fax In           WEEKLY             N               N               N
   QUECO      Web Remote         WEEKLY             N               Y               Y
   QUEST        Fax In           WEEKLY             N               N               N
   RAELE       Call In           WEEKLY             Y               N               Y
   RCM01        Remote           WEEKLY             N               N               N
   RCONS        Remote           WEEKLY             N               N               N
   RE107       Call In           WEEKLY             Y               N               Y
   REALT        Fax In           WEEKLY             Y               N               Y
   REBAR        Fax In           WEEKLY             Y               Y               N
   REFIR      Web Remote         WEEKLY             N               N               Y
   REGWA      Web Remote         WEEKLY             Y               Y               N
   RENCO      Web Remote         WEEKLY             N               N               N
   RESNY      Web Remote         WEEKLY             N               N               Y
   RETCN        Fax In           WEEKLY             Y               N               Y
   RGRCO       Call In        SEMI-MONTHLY          Y               N               N
   RHRPR       Call In           WEEKLY             N               N               N
   RIC01       Call In           WEEKLY             Y               N               Y
   RIC02       Call In           WEEKLY             Y               N               Y
   RICKY       Call In           WEEKLY             Y               Y               Y
   RICOT        Fax In           WEEKLY             N               N               N
   RIVPA        Fax In           WEEKLY             Y               N               N
   RIZZO      Web Remote         WEEKLY             N               N               N
   RKARC       Call In           WEEKLY             N               N               N
   RLCIN      Web Remote         WEEKLY             Y               Y               Y
   RLJAD      Web Remote         WEEKLY             N               N               N
   RLJEL      Web Remote         WEEKLY             N               N               N
   RLSYS        Fax In           WEEKLY             Y               Y               N
   RMFEL      Web Remote         WEEKLY             N               N               N
   RMT03        Fax In           WEEKLY             N               N               N
   RMT25        Fax In           WEEKLY             N               N               N
   RNHEL      Web Remote         WEEKLY             Y               Y               Y
   RNHNJ      Web Remote         WEEKLY             Y               Y               N
   RNRAS        Fax In           WEEKLY             N               N               N
   ROADW      Web Remote         WEEKLY             N               N               N
   ROCKE      Web Remote         WEEKLY             Y               Y               N
   ROCKM        Remote          MONTHLY             Y               N               N
   ROGE2      Web Remote         WEEKLY             N               N               Y
   ROGER      Web Remote         WEEKLY             N               Y               Y
   ROKBU        Fax In           WEEKLY             Y               N               Y
   ROKET        Fax In           WEEKLY             N               N               N
   ROMAM        Fax In           WEEKLY             Y               N               N
   RONBA      Web Remote         WEEKLY             Y               Y               Y
   RONSC        Fax In           WEEKLY             N               N               N
   ROSAN      Web Remote      SEMI-MONTHLY          Y               Y               Y
   ROSIM      Web Remote      SEMI-MONTHLY          Y               Y               Y
   ROVIN      Web Remote         WEEKLY             N               N               Y
   ROYAL      Web Remote         WEEKLY             Y               Y               N
   RPHEA       Call In          MONTHLY             Y               N               Y
   RRFAC      Web Remote         WEEKLY             Y               N               N
   RRLTD        Fax In           WEEKLY             Y               N               N
   RTGUT        Fax In           WEEKLY             Y               N               N
   RUTTU      Web Remote         WEEKLY             Y               Y               N
   SAFEW        Fax In           WEEKLY             N               N               N
   SAFT2      Web Remote         WEEKLY             Y               N               N
   SAFTY      Web Remote         WEEKLY             Y               N               N
   SAGEL      Web Remote         WEEKLY             Y               N               N
   SAJEL      Web Remote         WEEKLY             Y               N               Y
   SAMEL        Fax In           WEEKLY             N               N               N
   SANDE        Fax In           WEEKLY             N               N               N
   SANIT      Web Remote         WEEKLY             Y               Y               N
   SANTA      Web Remote         WEEKLY             N               Y               N
   SAVIO      Web Remote         WEEKLY             N               N               N
   SBFCO      Web Remote         WEEKLY             N               N               N
   SCHER        Fax In           WEEKLY             Y               N               N
   SCHLS      Web Remote         WEEKLY             N               Y               N
   SCICO        Remote           WEEKLY             N               Y               N
   SCONT       Call In           WEEKLY             Y               N               N
   SDELE      Web Remote         WEEKLY             N               N               Y
   SDEVE        Fax In           WEEKLY             Y               N               N
   SEABR        Remote           WEEKLY             Y               N               N
   SEACO        Fax In           WEEKLY             Y               N               Y
   SEAGC       Call In           WEEKLY             N               N               N
   SELEL        Fax In           WEEKLY             Y               N               N
   SELFL      Web Remote         WEEKLY             Y               Y               Y
   SFCON        Fax In           WEEKLY             Y               N               N
   SHAMR      Web Remote         WEEKLY             Y               N               N
   SHANN       Call In           WEEKLY             Y               Y               N
   SHENT       Call In           WEEKLY             N               N               N
   SHEPH        Fax In           WEEKLY             Y               Y               N
   SHILL        Fax In           WEEKLY             Y               N               N
   SHORR        Fax In           WEEKLY             N               N               N
   SHRED       Call In           WEEKLY             Y               N               N
   SIGNA      Web Remote         WEEKLY             Y               Y               N
   SISNI        Fax In           WEEKLY             N               N               N
   SJI25      Web Remote         WEEKLY             Y               N               N
   SJINC      Web Remote         WEEKLY             Y               Y               N
   SKYEL      Web Remote         WEEKLY             Y               Y               Y
   SMAEL        Fax In           WEEKLY             Y               N               N
   SMCEL      Web Remote         WEEKLY             Y               Y               Y
   SODON      Web Remote         WEEKLY             N               N               N
   SOLCO        Fax In           WEEKLY             Y               N               N
   SOLEL        Remote           WEEKLY             N               Y               N
   SOSFS        Remote           WEEKLY             Y               N               N
   SOUBE        Fax In           WEEKLY             Y               N               N
   SOUCO        Fax In           WEEKLY             Y               N               N
   SPARW        Fax In           WEEKLY             Y               N               N
   SPELE      Web Remote         WEEKLY             Y               N               Y
   SPRCO       Call In           WEEKLY             Y               N               Y
   SSCRE      Web Remote         WEEKLY             N               N               N
   STADE        Fax In           WEEKLY             Y               N               N
   STAEL      Web Remote         WEEKLY             Y               N               Y
   STANC      Web Remote         WEEKLY             Y               N               N
   STASI        Fax In           WEEKLY             Y               N               Y
   STCOC       Call In           WEEKLY             Y               Y               Y
   STCOM      Web Remote         WEEKLY             Y               N               N
   STEGL        Fax In           WEEKLY             Y               N               N
   STFAB       Call In           WEEKLY             N               N               N
   STGNL        Fax In           WEEKLY             N               N               N
   STHCO      Web Remote         WEEKLY             Y               Y               N
   STKDE      Web Remote         WEEKLY             Y               N               N
   STLUK      Web Remote         WEEKLY             Y               N               N
   STOC1      Web Remote         WEEKLY             Y               Y               Y
   STOC3      Web Remote         WEEKLY             Y               Y               Y
   STONI      Web Remote         WEEKLY             Y               N               N
   STOTR      Web Remote         WEEKLY             Y               Y               Y
   STREL        Fax In           WEEKLY             Y               N               N
   STRLO      Web Remote         WEEKLY             Y               N               N
   STROF      Web Remote         WEEKLY             Y               N               N
   STSSU      Web Remote         WEEKLY             N               N               N
   STULZ       Call In           WEEKLY             Y               Y               Y
   STUOF       Call In          MONTHLY             Y               Y               Y
   SUGRU        Fax In           WEEKLY             Y               N               N
   SUNCO        Fax In           WEEKLY             N               N               N
   SUNDP        Fax In           WEEKLY             N               N               Y
   SUPSS        Remote           WEEKLY             Y               N               N
   SUPST        Remote           WEEKLY             Y               N               N
   SUREL        Fax In           WEEKLY             N               N               N
   SURFV      Web Remote         WEEKLY             Y               N               N
   SWHAR      Web Remote         WEEKLY             Y               N               N
   SYINS        Fax In           WEEKLY             N               N               N
   SZCOC        Fax In           WEEKLY             Y               N               Y
   TA079        Fax In           WEEKLY             Y               N               N
   TA731        Fax In           WEEKLY             Y               N               N
   TANAP       Pick up          MONTHLY             N               N               N              AP
   TANAR       Pick up          MONTHLY             N               N               N              AR
   TANNO       Pick Up           WEEKLY             Y               N               N
   TAPEL      Web Remote         WEEKLY             Y               Y               N
   TAPJV      Web Remote         WEEKLY             Y               Y               N
   TARAS        Fax In           WEEKLY             Y               N               N
   TBIRD        Fax In           WEEKLY             N               N               N
   TCINC      Web Remote         WEEKLY             N               N               N
   TDRUG       Call In           WEEKLY             Y               N               Y
   TEETH       Call In         BI-WEEKLY            Y               Y               N
   TEFIX        Fax In         BI-WEEKLY            N               N               N
   TENTS        Fax In           WEEKLY             Y               N               N
   TERTR      Web Remote         WEEKLY             Y               N               N
   THINS      Web Remote         WEEKLY             Y               N               N
   THRGP       Call In           WEEKLY             Y               N               N
   TITFL        Fax In           WEEKLY             Y               N               N
   TITIN        Fax In           WEEKLY             Y               Y               Y
   TITST        Fax In           WEEKLY             Y               N               N
   TJMCO        Fax In           WEEKLY             Y               N               N
   TMICI       Call In           WEEKLY             Y               N               Y
   TNT03        Fax In           WEEKLY             N               N               N
   TNTIN      Web Remote         WEEKLY             Y               Y               Y
   TOKYO       Call In           WEEKLY             Y               N               Y
   TOMAH      Web Remote         WEEKLY             Y               N               N
   TOMCC      Web Remote         WEEKLY             Y               N               N
   TOMCO       Call In           WEEKLY             Y               N               N
   TOUCH        Fax In           WEEKLY             Y               Y               Y
   TOWCS        Fax In           WEEKLY             N               N               N
   TOWER      Web Remote         WEEKLY             N               N               N
   TRACK       Call In         BI-WEEKLY            Y               Y               Y
   TRAIL       Call In           WEEKLY             N               N               N
   TRARC      Web Remote         WEEKLY             N               N               N
   TRECO      Web Remote         WEEKLY             Y               N               Y
   TREES       Call In           WEEKLY             Y               N               N
   TRICI       Call In           WEEKLY             Y               N               N
   TRIEL        Fax In           WEEKLY             N               N               N
   TRIMA        Fax In           WEEKLY             Y               N               Y
   TRISS        Fax In           WEEKLY             Y               N               Y
   TROCM        Fax In           WEEKLY             Y               N               N
   TROYE       Call In           WEEKLY             N               Y               N
   TRPAR       Call In        SEMI-MONTHLY          Y               Y               N
   TRPCU        Fax In           WEEKLY             Y               N               Y
   TRPIP       Call In           WEEKLY             Y               N               N
   TRRAE      Web Remote         WEEKLY             N               N               N
   TRUEL        Fax In           WEEKLY             Y               N               N
   TRUNJ        Fax In           WEEKLY             Y               N               N
   TULCO       Call In           WEEKLY             Y               N               N
   TULEY        Fax In           WEEKLY             N               N               N
   TYPHO      Web Remote         WEEKLY             Y               N               N
   UCERT        Fax In           WEEKLY             N               N               N
   UFELL       Pick Up           WEEKLY             N               Y               N
   UMCIN       Call In           WEEKLY             Y               Y               N
   UNAEL        Fax In           WEEKLY             Y               Y               N
   UNAIR      Web Remote         WEEKLY             Y               Y               Y
   UNDUT        Fax In           WEEKLY             N               N               N
   UNENS       Call In           WEEKLY             Y               N               N
   UNIFL      Web Remote         WEEKLY             Y               Y               N
   UNISY      Web Remote         WEEKLY             Y               Y               Y
   UNRES        Remote           WEEKLY             Y               N               N
   UNSHE      Web Remote         WEEKLY             Y               Y               Y
   UNT03      Web Remote         WEEKLY             N               Y               N
   UNT25      Web Remote         WEEKLY             N               N               N
   UNT52      Web Remote         WEEKLY             N               Y               N
   UNTAD      Web Remote         WEEKLY             N               Y               N
   UNTAG       Call In         BI-WEEKLY            N               N               N
   UNTEX      Web Remote         WEEKLY             N               Y               N
   UNTGA      Web Remote         WEEKLY             N               Y               N
   UNTNJ      Web Remote         WEEKLY             N               Y               N
   UNTOF      Web Remote         WEEKLY             N               Y               N
   UNVEL        Fax In           WEEKLY             Y               N               N
   URBFO       Pick Up           WEEKLY             N               Y               N
   URBPL        Fax In           WEEKLY             Y               N               N
   UTILS        Fax In           WEEKLY             Y               N               N
   UTOWN      Web Remote         WEEKLY             Y               N               Y
   VALCC        Fax In           WEEKLY             N               N               N
   VANAS        Fax In           WEEKLY             Y               N               N
   VARDA      Web Remote         WEEKLY             N               N               Y
   VARLO        Fax In           WEEKLY             N               N               N
   VCORP        Fax In           WEEKLY             N               N               N
   VECTG      Web Remote       BI-WEEKLY            Y               N               N
   VENIN      Web Remote         WEEKLY             Y               Y               Y
   VENUS        Fax In           WEEKLY             Y               N               N
   VERCO      Web Remote         WEEKLY             Y               Y               N
   VERDE      Web Remote         WEEKLY             Y               Y               N
   VERSA        Remote           WEEKLY             Y               N               N
   VINEL       Call In           WEEKLY             N               N               N
   VIPNU        Fax In           WEEKLY             N               N               N
   VIRCO        Fax In           WEEKLY             Y               N               N
   VIREL        Fax In           WEEKLY             Y               N               N
   VIRGR        Fax In           WEEKLY             Y               N               Y
   VISE1      Web Remote         WEEKLY             Y               N               N
   VMSCI      Web Remote         WEEKLY             Y               Y               N
   VNAUT        Fax In           WEEKLY             Y               N               Y
   VOLFD      Web Remote         WEEKLY             Y               Y               N
   VOLMG      Web Remote         WEEKLY             Y               Y               N
   VOLPE      Web Remote         WEEKLY             N               N               N
   VPVEL        Fax In           WEEKLY             Y               N               Y
   VRCOM      Web Remote         WEEKLY             Y               Y               N
   W26ST       Pick Up           WEEKLY             Y               N               N
   WALSH       Call In           WEEKLY             Y               N               N
   WAMCO      Web Remote         WEEKLY             Y               N               Y
   WASHE        Fax In           WEEKLY             N               N               N
   WC555       Call In           WEEKLY             Y               N               N
   WDB01       Pick Up           WEEKLY             Y               N               N
   WDB02       Pick Up           WEEKLY             Y               N               N
   WDB03       Pick Up           WEEKLY             Y               N               N
   WDB04       Pick Up           WEEKLY             Y               N               N
   WDB05       Pick Up           WEEKLY             Y               N               N
   WDB06       Pick Up           WEEKLY             N               N               N
   WDB07       Pick Up           WEEKLY             Y               N               N
   WDB08       Pick Up           WEEKLY             Y               N               N
   WDB09       Pick Up           WEEKLY             Y               N               N
   WDB10       Pick Up           WEEKLY             Y               N               N
   WEGCT       Pick Up           WEEKLY             N               N               N
   WEREL        Fax In           WEEKLY             N               N               N
   WESCO        Fax In           WEEKLY             Y               N               N
   WESEL        Fax In           WEEKLY             N               N               N
   WESTD       Call In           WEEKLY             Y               N               Y
   WHITE        Fax In           WEEKLY             Y               Y               N
   WHMPL        Fax In           WEEKLY             Y               N               Y
   WILSN        Fax In           WEEKLY             N               N               N
   WILSO       Call In           WEEKLY             Y               N               Y
   WINAN         Fax             WEEKLY             N               N               N
   WINDR      Web Remote         WEEKLY             N               N               N
   WINDS        Fax In           WEEKLY             Y               N               N
   WINEL        Fax In           WEEKLY             N               N               N
   WINFA       Call In         BI-WEEKLY            Y               N               N
   WJCCO      Web Remote         WEEKLY             Y               N               N
   WJMAS      Web Remote         WEEKLY             Y               Y               Y
   WOLFE       Call In           WEEKLY             Y               N               N
   WSERE        Fax In           WEEKLY             N               N               N
   XMOMS       Call In         BI-WEEKLY            N               N               N
   YORLA        Fax In           WEEKLY             N               N               N
   YORSE        Fax In           WEEKLY             N               N               N
   YORSS        Fax In           WEEKLY             N               N               N
   YRFSI      Web Remote       BI-WEEKLY            Y               N               Y
   ZANEC        Fax In           WEEKLY             N               Y               N
   ZIARN        Fax In           WEEKLY             Y               N               N
   ZINCC      Web Remote         WEEKLY             N               N               N

                        EXCLUDED ASSETS SCHEDULE ss. 2.01

Operating Lease with I&G Garden State LLC for Office Space at 300 Atrium Drive,
Somerset, New Jersey.

IBM Server MT-M 8840 serial # KQGHX3N used for the Business and other Seller
operations unrelated to the Business.

The names "DSI Staff ConnXions Northeast, Inc." and "DSI Staff ConnXions
Southwest, Inc." as used in connection with Seller's existing operating
subsidiaries.

(2) Intel 510T switches used by TeamStaff, Inc. Finance Department (not a DSi
asset).

(16) NEC Dterm Series E phones used by TeamStaff, Inc. Finance Department (not a
DSi asset).

Neopost S170 fold stuff machine, serial #0024623.

IBM Thinkpad R32 serial #AKVC94Z
NEC monitor LCD1550V serial # 2X05889TA
NEC monitor LCD1550V serial # 2X05912TA,
Dell Optiplex GX260D serial # JMT7F21

All of the foregoing are currently under lease agreements and subject to liens
and have been replaced in the Included Assets schedule with substitutions.

IBM Thinkpad T42 serial # L3AGD79: Laptop used by Larry Braude.

Kitchen furniture and appliances:

(2) Microwaves
Refrigerator
(3) 4' X 4' Square Tables
2' Microwave Table
(12) Chairs

All furniture in the Conference Rooms.

Equipment and Fixed Asset Schedule          Sections 2.01, 4.10, 4.11, 4.12

----------------------------------------------------------------------------------------
LIST OF FURNITURE & NON-COMPUTER EQUIPMENT - INCLUDED:
----------------------------------------------------------------------------------------
                    ITEM                           QUANTITY             LOCATION
----------------------------------------------------------------------------------------

6'X6' Cubicle                                            16
6'X8' Cubicle                                            20
8'X9' Cubicle                                             1
8'X10' Cubicle                                            5
8'X12' Cubicle                                            1
12'X12' Cubicle                                           1
12'X15' Cubicle                                           2

Chairs - various types                                   83
3' 3 drawer file cabinet                                 24
3.5' 3 drawer file cabinet                                2
3' 2 drawer file cabinet                                  5
4' book shelf                                             2
30" Modular shelves                                       4
30" Round Table                                           4
36" Round Table                                           6
5'X2' Rectangle Table                                     3
2' Printer stand                                          1
3' Computer Desk                                          3
4' Computer Desk                                          1
5' Computer Desk                                          2
30"x60" Folding table                                     1
30"x45" Double shelf work table                           1
33"x68" Double door storage table                         1

Upholstered Cherry Wood Chairs                            4          Kathy's office
42" Cherry Wood Round Table                               1          Kathy's office
Cherry Wood Credenza                                      1          Kathy's office
Cherry Wood Armoire                                       1          Kathy's office
Cherry Wood Desk                                          1          Kathy's office
38" Round Glass top table                                 1            reception
26" Round Glass top table                                 2            reception
34" Upholstered Club Chairs                               2            reception
56" Upholstered Loveseat                                  1            reception
14.5"x103" Built in Credenza                              1            reception
103" Curved W/ Glass shelf reception desk                 1            reception
Wilson Jones 130 Shredder                                 1          computer room
Holmes HM3500 Humidifier                                  1          computer room
3' Folding ladder                                         1          computer room
36" x 78" CD storage rack                                 1          computer room
14' x 78" Steel combination safe                          1          computer room
6' Double door storage cabinets                           3          computer room
29"x88" Closed Computer Rack                              1          computer room
7' Open Relay Rack                                        1          computer room
4' 4 Tier Computer Desk                                   1          computer room
Power Shred 410 Shredder w/ tale & container              1             mailroom
38"x26" Mail bin                                          1             mailroom
38"x36" Mail bin                                          1             mailroom

NEC projector MT1000                                      1        serial # 7Y5300222
Neopost SI78 fold stuff machine                           1     serial # 986183 & 986955
Neopost ST78 fold stuff machine                           1        serial # 00BM5264
Neopost SI70 fold stuff machine                           1         serial # 506096
Canon L9000S fax machine                                  1        serial # UYG22062
Canon LC3170 fax machine                                  1        serial # UYP62336
Canon LC3170 fax machine                                  1        serial # UYP62337
Canon L8500 fax machine                                   1        serial # UFW07349
Canon L710 fax machine                                    1        serial # KAG01738
Canon L710 fax machine                                    1        serial # KAG01838
Canon IR 5000I w/ stap                                    1          FIN NRL085850

Internal software development - web entry                 1            asset #504
Xerox docuprint hardware                                  1            asset #587
Xerox docuprint software configuration system             1            asset #588
Web entry capitalized software development                1            asset #597
Somerset phone system                                     1        asset #580-584,586

COMPONENTS OF THE 46 CUBICLES LISTED ABOVE:
2'X4' Panels                                             60
2.5'X4' Panels                                            8
3'X4'Panels                                             123
3.5'X4' Panes                                             8
4'X4' Panels                                             11
5'X4' Panels                                              7
2.5'x6.5' Panels                                          7
2'X3.5' Panels                                            8
3'x3.5' Panels                                           50
4'X3.5' Panels                                            4
3' Desktop                                               33
4' Desktop                                               22
5' Desktop                                               12
6' Desktop                                               38
3'X3' Corner Desktop                                     25
6' Desktop Curve                                          5
3 drawer file cabinet                                    50
2 drawer file cabinet                                    36

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

List of Fully Depreciated Assets - Included

LOCATION   EMPLOYEE                  DEPARTMENT   TYPE       MAKE                  MODEL              SERIAL#        FIXED ASSET #
----------------------------------------------------------------------------------------------------------------------------------

Somerset   Baum, Rich                DSI          Computer   Dell Inspiron 2500    Inspiron 2500      1NHHS01        50217
Somerset   Charles, Kathy            DSI          Computer   Dell Optiplex GX150   GX150              2DFMF11        20458
Somerset   Chin, Arnold              DSI          Computer   Dell Dimension XPS    Dell XPS Pro 200   99NSX          50109
Somerset   Conf Room                 DSI          Computer   IBM ThinkPad          600E               78-FFGM7       20194
Somerset   Cullen, Joan              DSI          Computer   Dell Optiplex GX400   GX400              GTHX411        20482
Somerset   DOS Dialin                DSI          Computer   Dell Optiplex Gs      GS                 BK2JH          50122
Somerset   DSI Line print server     DSI          Computer   MAXIMUM               DX4133             R2061193009    50201
Somerset   Edwards, Gail             DSI          Computer   IBM ThinkPad          R51E
Somerset   Fischer, Shirley          DSI          Computer   Dell Optiplex GX400   GX400              H2XH511        20478
Somerset   Forte, Oreen              DSI          Computer   Dell Optiplex Gs      GS                 8K2J0          50112
Somerset   Kane, Pam                 DSI          Computer   Dell Optiplex GX260   GX260              448BB21        50001
Somerset   Keypunch #1 D41           DSI          Computer   CLONE                 CLONE              N/A            50076
Somerset   Keypunch #2 D44           DSI          Computer   Compaq Deskpro        DESKPRO            5728HVU59A776  50094
Somerset   Keypunch #3 D44           DSI          Computer   CLONE                 P-233              N/A            50096
Somerset   Keypunch #4 D81           DSI          Computer   Dell Optiplex GM5133  GM5133             659Y1          50087
Somerset   Keypunch #6 D80           DSI          Computer   Dell Optiplex Gs      GS                 8K2J6          50079
Somerset   Kraemer, Terri            DSI          Computer   Dell Optiplex Gs      GS                 8K2J9          50117
Somerset   McGinnis, Carol           DSI          Computer   Dell Optiplex Gs      GS                 8K1AQ          50105
Somerset   McQueeny, Debbie          DSI          Computer   Dell Optiplex Gs      GS                 8X1RW          50092
Somerset   McQueeny, Debbie          DSI          Computer   CLONE                 CLONE              N/A            50097
Somerset   Michele, Chris            DSI          Computer   Dell Inspiron 2500    Inspiron 2500      HP29Y01        50166
Somerset   Noll, Clare               DSI          Computer   Dell Optiplex Gs      GS                 8K1P8          50101
Somerset   Patel, Perry              DSI          Computer   Dell Optiplex GX400   GX400              H3CZ011        20479
Somerset   Pavlick, Marilyn          DSI          Computer   CLONE                 CLONE              N/A            50075
Somerset   PAYJSRVR                  DSI          Computer   CLONE                 CLONE              N/A            50203
Somerset   Processor A               DSI          Computer   CLONE                 CLONE              N/A            50118
Somerset   Processor B               DSI          Computer   CLONE                 CLONE              N/A            50119
Somerset   Processor C               DSI          Computer   CLONE                 CLONE              N/A            50120
Somerset   Production Room #1        DSI          Computer   Dell Optiplex GX400   GX400              9K76Y01        20477
Somerset   Production Room #2        DSI          Computer   Dell Optiplex GX400   GX400              FCRXX01        20476
Somerset   Production Room #3 (LV)   DSI          Computer   Dell Optiplex GX400   GX400              2J76Y01        20475
Somerset   Production Room #4        DSI          Computer   Dell Optiplex GX150   GX150              B866C11        20454
Somerset   Putnam                    DSI          Computer   Dell Optiplex GX1     G1 400MTBR+        UKRCI          20497
Somerset   Qualls, Angela            DSI          Computer   Dell Optiplex Gs      GS                 8BQW4          50083
Somerset   Raab, Madeline            DSI          Computer   Dell Optiplex GX400   GX400              15CZ011        20465
Somerset   Raab, Nikki               DSI          Computer   Dell Optiplex GX150   GX150              FPVTG11        20459
Somerset   Scarpa, Linda             DSI          Computer   CLONE                 CLONE              N/A            50011
Somerset   Sharon Skibbee            DSI          Computer   IBM ThinkPad          600E               78-FFGL7       20196
Somerset   Solimar                   DSI          Computer   Dell Optiplex GX400   GX400              3K76Y01        20474
Somerset   SOMSOLIMAR                DSI          Computer   Dell Optiplex GX400   GX400              4ZKZS11        20481
Somerset   Sturtz, Virginia          DSI          Computer   Dell Optiplex Gs      GS                 8K154          50080
Somerset   Szczesny, Eileen          DSI          Computer   Dell Optiplex Gs      GS                 9F0X7          50103
Somerset   Tener, Eileen             DSI          Computer   Compaq Deskpro        DESKPRO            6026DWJ6A595   50056
Somerset   Tomaiko, Gary             DSI          Computer   Dell Optiplex GX400   GX400              D3CZ011        20484
Somerset   Waskis, Tammy             DSI          Computer   Dell Optiplex GX400   GX400              C61ST01        20463
Somerset   WEB TEST                  DSI          Computer   Dell Optiplex GX110   GX110              4FF6J01        20486
Somerset   White, Donovan            DSI          Computer   Dell Optiplex GX400   GX400              JJ76Y01        20473
Somerset   White, Donovan            DSI          Computer   Dell Optiplex GM5133  GM5133             70X33          50084
Somerset   Williams, Gerry           DSI          Computer   Dell Optiplex GX150   GX260D             2WQHC11        20455
Somerset   Windows Dialin            DSI          Computer   Dell Optiplex Gs      GS                 BY2JC          50123
Somerset   DOCUPRINT100MX            DSI          Printer
Somerset   HP1700                    DSI          Printer
Somerset   HP4SI-4                   DSI          Printer
Somerset   HP5SI-1                   DSI          Printer
Somerset   HP5SI-2                   DSI          Printer
Somerset   HP5SI-3                   DSI          Printer
Somerset   HP5SI-5                   DSI          Printer
Somerset   HP8150                    DSI          Printer
Somerset   HP890                     DSI          Printer
Somerset   Line Printer              DSI          Printer
Somerset   N40                       DSI          Printer
Somerset   NAB-2                     DSI          Printer
Somerset   DSISP03                   DSI          Server     IBM Netfinity 5000    8659-31Y           23L3931        50132
Somerset   DSISP04                   DSI          Server     CLONE                 CLONE              N/A            50134
Somerset   SOMSYNC                   DSI          Server     Dell                  PowerEdge                         51002
Somerset   Xerox/Sun                 DSI          Server     Sun                   DocuSP             FE1150014      50272
Somerset   APC1                      DSI          UPS
Somerset   APC2                      DSI          UPS
Somerset   APC3                      DSI          UPS
Somerset   APC4                      DSI          UPS
Somerset   APC5                      DSI          UPS
Somerset   APC6                      DSI          UPS
Somerset   APC7                      DSI          UPS
Somerset   APC8                      DSI          UPS

LOCATION   EMPLOYEE                  DEPARTMENT   MONITOR MAKE    MONITOR MODEL    MONITOR S/N           MONITOR F/A #  PRINTER MAKE
-----------------------------------------------------------------------------------------------------------------------------------

Somerset   Baum, Rich                DSI
Somerset   Charles, Kathy            DSI          Dell            E771B            MX0419TG47801244C1DQ  50191
Somerset   Chin, Arnold              DSI          Dell            E771P            MX0419TG47801241H2EK  50265
Somerset   Conf Room                 DSI
Somerset   Cullen, Joan              DSI          Viewsonic       E70FB            24C023251315          50067
Somerset   DOS Dialin                DSI
Somerset   DSI Line print server     DSI          CTX             145IES           K904410034            50202
Somerset   Edwards, Gail             DSI
Somerset   Fischer, Shirley          DSI          Viewsonic       E90FB            333030850463          50215
Somerset   Forte, Oreen              DSI                                                                 50245
Somerset   Kane, Pam                 DSI          Viewsonic       E70FB                                  50058
Somerset   Keypunch #1 D41           DSI          CTX             1451C            28055110463           50210
Somerset   Keypunch #2 D44           DSI          DTK             CDD1401          A013862               50093
Somerset   Keypunch #3 D44           DSI          Dell            D1526TXHS        8073350               50095
Somerset   Keypunch #4 D81           DSI          DFI             CK1428A          KOKU3601026           50090
Somerset   Keypunch #6 D80           DSI
Somerset   Kraemer, Terri            DSI          VIEWSONIC       TS22355-GM       70A014300671          50051
Somerset   McGinnis, Carol           DSI          Goldstar        1465             MC40501103            50104
Somerset   McQueeny, Debbie          DSI          Dell            D1526TXHS        820X4290              50091
Somerset   McQueeny, Debbie          DSI          ProView         PS707A           FSOU13021982U         50157
Somerset   Michele, Chris            DSI
Somerset   Noll, Clare               DSI          KFC             CK1428A          KOCK43161320          50100
Somerset   Patel, Perry              DSI          Dell            E771B            MX0419TG478012BFBOW6  50110
Somerset   Pavlick, Marilyn          DSI          Dell            D1728DLS         04036A90UC37          50170
Somerset   PAYJSRVR                  DSI          DTK             DCM1428          1.25438E+11           50204
Somerset   Processor A               DSI
Somerset   Processor B               DSI
Somerset   Processor C               DSI
Somerset   Production Room #1        DSI          CTX             1451C            28055110463           50210
Somerset   Production Room #2        DSI          Compaq          462              602AA11AA232          50261
Somerset   Production Room #3 (LV)   DSI          Dell            D1526TXHS        8204289               50213
Somerset   Production Room #4        DSI          DELL            E771P            MX0419TG4780128FB0W9  50054
Somerset   Putnam                    DSI          Dell            D1526TVHS        8204284               50200
Somerset   Qualls, Angela            DSI          TTX             1787             M104300203            50224
Somerset   Raab, Madeline            DSI          VIEWSONIC       E90FB            333030850467          50214
Somerset   Raab, Nikki               DSI          Hitachi         V798             H1G018690             50212
Somerset   Scarpa, Linda             DSI          Dell            E771P            EN0819ET4780412GBOCL  50106
Somerset   Sharon Skibbee            DSI
Somerset   Solimar                   DSI          ViewSonic       EA771B           DB90446501            20031
Somerset   SOMSOLIMAR                DSI          Optiquest       VCDTS21          8G90400427            50208
Somerset   Sturtz, Virginia          DSI          CTX             CVG5432          CE0154526             50081
Somerset   Szczesny, Eileen          DSI          Viewsonic       E70FB            24C024854982          50198
Somerset   Tener, Eileen             DSI          HP              HP71             MY02473005            50030
Somerset   Tomaiko, Gary             DSI          Viewsonic       E70FB            2YC024854984          50041
Somerset   Waskis, Tammy             DSI          DELL            E771             MX0419TG47801B21Z     50050
Somerset   WEB TEST                  DSI          Samsung         750S             3882A431              50223
Somerset   White, Donovan            DSI          TTX             TTX1787          M104300236            50044
Somerset   White, Donovan            DSI
Somerset   Williams, Gerry           DSI          Dell            E771MM           05E53247803311C1H6    50061
Somerset   Windows Dialin            DSI
Somerset   DOCUPRINT100MX            DSI                                                                               XEROX
Somerset   HP1700                    DSI                                                                               HP
Somerset   HP4SI-4                   DSI                                                                               HP
Somerset   HP5SI-1                   DSI                                                                               HP
Somerset   HP5SI-2                   DSI                                                                               HP
Somerset   HP5SI-3                   DSI                                                                               HP
Somerset   HP5SI-5                   DSI                                                                               HP
Somerset   HP8150                    DSI                                                                               HP
Somerset   HP890                     DSI                                                                               HP
Somerset   Line Printer              DSI                                                                               UNISYS
Somerset   N40                       DSI                                                                               XEROX
Somerset   NAB-2                     DSI                                                                               XEROX
Somerset   DSISP03                   DSI          IBM             6627-4AN         55-CFZ02              50597
Somerset   DSISP04                   DSI
Somerset   SOMSYNC                   DSI          Viewsonic       VE150MB          90K022401931          50184
Somerset   Xerox/Sun                 DSI          XEROX           XL765            F2Q243344094          50263
Somerset   APC1                      DSI
Somerset   APC2                      DSI
Somerset   APC3                      DSI
Somerset   APC4                      DSI
Somerset   APC5                      DSI
Somerset   APC6                      DSI
Somerset   APC7                      DSI
Somerset   APC8                      DSI

LOCATION   EMPLOYEE                  DEPARTMENT   PRINTER MODEL    PRINTER S/N    PRINTER F/A#    UPS MAKE    UPS MODEL   UPS S/N
---------------------------------------------------------------------------------------------------------------------------------

Somerset   Baum, Rich                DSI
Somerset   Charles, Kathy            DSI
Somerset   Chin, Arnold              DSI
Somerset   Conf Room                 DSI
Somerset   Cullen, Joan              DSI
Somerset   DOS Dialin                DSI
Somerset   DSI Line print server     DSI
Somerset   Edwards, Gail             DSI
Somerset   Fischer, Shirley          DSI
Somerset   Forte, Oreen              DSI
Somerset   Kane, Pam                 DSI
Somerset   Keypunch #1 D41           DSI
Somerset   Keypunch #2 D44           DSI
Somerset   Keypunch #3 D44           DSI
Somerset   Keypunch #4 D81           DSI
Somerset   Keypunch #6 D80           DSI
Somerset   Kraemer, Terri            DSI
Somerset   McGinnis, Carol           DSI
Somerset   McQueeny, Debbie          DSI
Somerset   McQueeny, Debbie          DSI
Somerset   Michele, Chris            DSI
Somerset   Noll, Clare               DSI
Somerset   Patel, Perry              DSI
Somerset   Pavlick, Marilyn          DSI
Somerset   PAYJSRVR                  DSI
Somerset   Processor A               DSI
Somerset   Processor B               DSI
Somerset   Processor C               DSI
Somerset   Production Room #1        DSI
Somerset   Production Room #2        DSI
Somerset   Production Room #3 (LV)   DSI
Somerset   Production Room #4        DSI
Somerset   Putnam                    DSI
Somerset   Qualls, Angela            DSI
Somerset   Raab, Madeline            DSI
Somerset   Raab, Nikki               DSI
Somerset   Scarpa, Linda             DSI
Somerset   Sharon Skibbee            DSI
Somerset   Solimar                   DSI
Somerset   SOMSOLIMAR                DSI
Somerset   Sturtz, Virginia          DSI
Somerset   Szczesny, Eileen          DSI
Somerset   Tener, Eileen             DSI
Somerset   Tomaiko, Gary             DSI
Somerset   Waskis, Tammy             DSI
Somerset   WEB TEST                  DSI
Somerset   White, Donovan            DSI
Somerset   White, Donovan            DSI
Somerset   Williams, Gerry           DSI
Somerset   Windows Dialin            DSI
Somerset   DOCUPRINT100MX            DSI          100MX                        20494
Somerset   HP1700                    DSI          1700            SG2B85113P   50231
Somerset   HP4SI-4                   DSI          4SI             USGB565048   50172
Somerset   HP5SI-1                   DSI          5SI             USDK033686   20492
Somerset   HP5SI-2                   DSI          5SI             USBK159869   20493
Somerset   HP5SI-3                   DSI          5SI             USBD043674   20491
Somerset   HP5SI-5                   DSI          5SI             USBK149458   50055
Somerset   HP8150                    DSI          8150N           USBD017453   20498
Somerset   HP890                     DSI          890C            3G7BC1J12S   50190
Somerset   Line Printer              DSI          B600            86095226     20496
Somerset   N40                       DSI          N40             W8F020823    20495
Somerset   NAB-2                     DSI          N40             W8F020170    50209
Somerset   DSISP03                   DSI
Somerset   DSISP04                   DSI
Somerset   SOMSYNC                   DSI
Somerset   Xerox/Sun                 DSI
Somerset   APC1                      DSI                                                     APC       3000
Somerset   APC2                      DSI                                                     APC       1400        Q80029320636
Somerset   APC3                      DSI                                                     APC       1400
Somerset   APC4                      DSI                                                     APC       2200        QSO150111793
Somerset   APC5                      DSI                                                     APC       2200        QSO146111536
Somerset   APC6                      DSI                                                     APC       1400
Somerset   APC7                      DSI                                                     APC       650
Somerset   APC8                      DSI                                                     APC       650

LOCATION   EMPLOYEE                  DEPARTMENT   UPS F/A#   KVM SWITCH   KVM S/N   KVM F/A#   TAPE DRV MAKE  TAPE DRV MODEL
----------------------------------------------------------------------------------------------------------------------------

Somerset   Baum, Rich                DSI
Somerset   Charles, Kathy            DSI
Somerset   Chin, Arnold              DSI
Somerset   Conf Room                 DSI
Somerset   Cullen, Joan              DSI
Somerset   DOS Dialin                DSI
Somerset   DSI Line print server     DSI
Somerset   Edwards, Gail             DSI
Somerset   Fischer, Shirley          DSI
Somerset   Forte, Oreen              DSI
Somerset   Kane, Pam                 DSI
Somerset   Keypunch #1 D41           DSI
Somerset   Keypunch #2 D44           DSI
Somerset   Keypunch #3 D44           DSI
Somerset   Keypunch #4 D81           DSI
Somerset   Keypunch #6 D80           DSI
Somerset   Kraemer, Terri            DSI
Somerset   McGinnis, Carol           DSI
Somerset   McQueeny, Debbie          DSI
Somerset   McQueeny, Debbie          DSI
Somerset   Michele, Chris            DSI
Somerset   Noll, Clare               DSI
Somerset   Patel, Perry              DSI
Somerset   Pavlick, Marilyn          DSI
Somerset   PAYJSRVR                  DSI
Somerset   Processor A               DSI
Somerset   Processor B               DSI
Somerset   Processor C               DSI
Somerset   Production Room #1        DSI
Somerset   Production Room #2        DSI
Somerset   Production Room #3 (LV)   DSI
Somerset   Production Room #4        DSI
Somerset   Putnam                    DSI
Somerset   Qualls, Angela            DSI
Somerset   Raab, Madeline            DSI
Somerset   Raab, Nikki               DSI
Somerset   Scarpa, Linda             DSI
Somerset   Sharon Skibbee            DSI
Somerset   Solimar                   DSI
Somerset   SOMSOLIMAR                DSI
Somerset   Sturtz, Virginia          DSI
Somerset   Szczesny, Eileen          DSI
Somerset   Tener, Eileen             DSI
Somerset   Tomaiko, Gary             DSI
Somerset   Waskis, Tammy             DSI
Somerset   WEB TEST                  DSI
Somerset   White, Donovan            DSI
Somerset   White, Donovan            DSI
Somerset   Williams, Gerry           DSI
Somerset   Windows Dialin            DSI
Somerset   DOCUPRINT100MX            DSI
Somerset   HP1700                    DSI
Somerset   HP4SI-4                   DSI
Somerset   HP5SI-1                   DSI
Somerset   HP5SI-2                   DSI
Somerset   HP5SI-3                   DSI
Somerset   HP5SI-5                   DSI
Somerset   HP8150                    DSI
Somerset   HP890                     DSI
Somerset   Line Printer              DSI
Somerset   N40                       DSI
Somerset   NAB-2                     DSI
Somerset   DSISP03                   DSI
Somerset   DSISP04                   DSI
Somerset   SOMSYNC                   DSI
Somerset   Xerox/Sun                 DSI
Somerset   APC1                      DSI          50188
Somerset   APC2                      DSI          50146
Somerset   APC3                      DSI          50257
Somerset   APC4                      DSI          50255
Somerset   APC5                      DSI          50256
Somerset   APC6                      DSI          50254
Somerset   APC7                      DSI          50258
Somerset   APC8                      DSI          50259

LOCATION   EMPLOYEE                  DEPARTMENT   TAPE DRV S/N  TAPE DRV F/A#
-----------------------------------------------------------------------------

Somerset   Baum, Rich                DSI
Somerset   Charles, Kathy            DSI
Somerset   Chin, Arnold              DSI
Somerset   Conf Room                 DSI
Somerset   Cullen, Joan              DSI
Somerset   DOS Dialin                DSI
Somerset   DSI Line print server     DSI
Somerset   Edwards, Gail             DSI
Somerset   Fischer, Shirley          DSI
Somerset   Forte, Oreen              DSI
Somerset   Kane, Pam                 DSI
Somerset   Keypunch #1 D41           DSI
Somerset   Keypunch #2 D44           DSI
Somerset   Keypunch #3 D44           DSI
Somerset   Keypunch #4 D81           DSI
Somerset   Keypunch #6 D80           DSI
Somerset   Kraemer, Terri            DSI
Somerset   McGinnis, Carol           DSI
Somerset   McQueeny, Debbie          DSI
Somerset   McQueeny, Debbie          DSI
Somerset   Michele, Chris            DSI
Somerset   Noll, Clare               DSI
Somerset   Patel, Perry              DSI
Somerset   Pavlick, Marilyn          DSI
Somerset   PAYJSRVR                  DSI
Somerset   Processor A               DSI
Somerset   Processor B               DSI
Somerset   Processor C               DSI
Somerset   Production Room #1        DSI
Somerset   Production Room #2        DSI
Somerset   Production Room #3 (LV)   DSI
Somerset   Production Room #4        DSI
Somerset   Putnam                    DSI
Somerset   Qualls, Angela            DSI
Somerset   Raab, Madeline            DSI
Somerset   Raab, Nikki               DSI
Somerset   Scarpa, Linda             DSI
Somerset   Sharon Skibbee            DSI
Somerset   Solimar                   DSI
Somerset   SOMSOLIMAR                DSI
Somerset   Sturtz, Virginia          DSI
Somerset   Szczesny, Eileen          DSI
Somerset   Tener, Eileen             DSI
Somerset   Tomaiko, Gary             DSI
Somerset   Waskis, Tammy             DSI
Somerset   WEB TEST                  DSI
Somerset   White, Donovan            DSI
Somerset   White, Donovan            DSI
Somerset   Williams, Gerry           DSI
Somerset   Windows Dialin            DSI
Somerset   DOCUPRINT100MX            DSI
Somerset   HP1700                    DSI
Somerset   HP4SI-4                   DSI
Somerset   HP5SI-1                   DSI
Somerset   HP5SI-2                   DSI
Somerset   HP5SI-3                   DSI
Somerset   HP5SI-5                   DSI
Somerset   HP8150                    DSI
Somerset   HP890                     DSI
Somerset   Line Printer              DSI
Somerset   N40                       DSI
Somerset   NAB-2                     DSI
Somerset   DSISP03                   DSI
Somerset   DSISP04                   DSI
Somerset   SOMSYNC                   DSI
Somerset   Xerox/Sun                 DSI
Somerset   APC1                      DSI
Somerset   APC2                      DSI
Somerset   APC3                      DSI
Somerset   APC4                      DSI
Somerset   APC5                      DSI
Somerset   APC6                      DSI
Somerset   APC7                      DSI
Somerset   APC8                      DSI

LOCATION   EMPLOYEE             DEPARTMENT  TYPE        MAKE                  MODEL       SERIAL#  FIXED ASSET #   MONITOR MAKE
-------------------------------------------------------------------------------------------------------------------------------

Somerset   Hot Spare SRVR RM 1  IT          Computer    Clone
Somerset   Munao, Phillip       IT          Computer    Dell Optiplex GX400   GX400       BZMZP01  20500           ViewSonic
Somerset   Nadeau, Laurie       IT          Computer    CLONE                 CLONE       N/A      50015           ADI ProVista
Somerset   Nadeau, Laurie       IT          Computer    Dell Optiplex GX400   GX400       9125Y01  20464           Dell
Somerset   Nadeau, Laurie       IT          Computer    NORTHGATE PCSP40      NORTHGATE   N/A      50014           WYSE
Somerset   Security             IT          Computer    Dell Optiplex Gs      P-120       88QSZ    20499           DTK
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 1            IT          switch
Somerset   SRVR RM 2            IT          switch
Somerset   KVM1                 IT          KVM
Somerset   KVM2                 IT          KVM
Somerset   TSMAIL07             IT          Server      IBM Netfinity 5000    8659-41Y    23W7633  50174
Somerset   TSPROXY08            IT          Server      Dell GX150            GX150       C9C1F11  20456
Somerset   TSSOM02              IT          Server      IBM Netfinity 5000    8659-51Y    23TM128  50177
Somerset   TSSOM05              IT          Server      IBM Netfinity 5000    8659-71Y    23LP641  50130

LOCATION   EMPLOYEE             DEPARTMENT  MONITOR MODEL   MONITOR S/N            MONITOR F/A #
------------------------------------------------------------------------------------------------

Somerset   Hot Spare SRVR RM 1  IT
Somerset   Munao, Phillip       IT          E771            DH91708490             50042
Somerset   Nadeau, Laurie       IT          CM700           94204FL20312133        50043
Somerset   Nadeau, Laurie       IT          E771P           MX0419TG4780124GBI3G   50152
Somerset   Nadeau, Laurie       IT          WY790N          24K11900061            50047
Somerset   Security             IT          CDD1401         C023652                50114
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 2            IT
Somerset   KVM1                 IT
Somerset   KVM2                 IT
Somerset   TSMAIL07             IT
Somerset   TSPROXY08            IT
Somerset   TSSOM02              IT
Somerset   TSSOM05              IT

LOCATION   EMPLOYEE             DEPARTMENT  SWITCH MAKE                     SWITCH MODEL  SWITCH S/N    SWITCH F/A#     PRINTER MAKE
------------------------------------------------------------------------------------------------------------------------------------

Somerset   Hot Spare SRVR RM 1  IT          Intel                           ES550T                      50188
Somerset   Munao, Phillip       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Security             IT
Somerset   SRVR RM 1            IT          Intel                           510T          SFSW8410141   50138
Somerset   SRVR RM 1            IT          Intel                           510T          Z00592247     50139
Somerset   SRVR RM 1            IT          Intel                           510T          SFSW9144205   50140
Somerset   SRVR RM 1            IT          Dell Power Connect              5012          B22HSN        50141
Somerset   SRVR RM 1            IT          CISCO                           2600          JAB044981KN   50142
Somerset   SRVR RM 1            IT          Intel                           510T          SFSW9144310   50143
Somerset   SRVR RM 1            IT          Intel                           510T          BASW1124223   50144
Somerset   SRVR RM 1            IT          Intel                           510T          SFSW9481198   50145
Somerset   SRVR RM 2            IT          Dell Power Connect              5012          Q22HS11       50186
Somerset   KVM1                 IT          keyboard/mouse switches -
                                            finance uses 3 of 8 ports,
                                            DSI uses 5 of 8
Somerset   KVM2                 IT          keyboard/mouse switches - DSI
                                            uses 8 of 8
Somerset   TSMAIL07             IT
Somerset   TSPROXY08            IT          hosts anti-virus
Somerset   TSSOM02              IT          file print server
Somerset   TSSOM05              IT          call tracking / invoices

LOCATION   EMPLOYEE             DEPARTMENT  PRINTER MODEL  PRINTER S/N   PRINTER F/A#   UPS MAKE   UPS MODEL   UPS S/N   UPS F/A#
---------------------------------------------------------------------------------------------------------------------------------

Somerset   Hot Spare SRVR RM 1  IT
Somerset   Munao, Phillip       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Security             IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 2            IT
Somerset   KVM1                 IT
Somerset   KVM2                 IT
Somerset   TSMAIL07             IT
Somerset   TSPROXY08            IT
Somerset   TSSOM02              IT
Somerset   TSSOM05              IT

LOCATION   EMPLOYEE             DEPARTMENT  KVM SWITCH             KVM S/N      KVM F/A#   TAPE DRV MAKE   TAPE DRV MODEL
-------------------------------------------------------------------------------------------------------------------------

Somerset   Hot Spare SRVR RM 1  IT
Somerset   Munao, Phillip       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Security             IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 2            IT
Somerset   KVM1                 IT          Belkin Omniview Pro
Somerset   KVM2                 IT          Belkin Omniview Pro    3023641884   50185
Somerset   TSMAIL07             IT
Somerset   TSPROXY08            IT
Somerset   TSSOM02              IT
Somerset   TSSOM05              IT

LOCATION   EMPLOYEE             DEPARTMENT   TAPE DRV S/N   TAPE DRV F/A#
-------------------------------------------------------------------------

Somerset   Hot Spare SRVR RM 1  IT
Somerset   Munao, Phillip       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Nadeau, Laurie       IT
Somerset   Security             IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 1            IT
Somerset   SRVR RM 2            IT
Somerset   KVM1                 IT
Somerset   KVM2                 IT
Somerset   TSMAIL07             IT
Somerset   TSPROXY08            IT
Somerset   TSSOM02              IT
Somerset   TSSOM05              IT

Financial Information Schedule              Section 4.07

FISCAL YEAR 2002                                       Q1            Q2          Q3             Q4
                                                   OCT - DEC     JAN - MAR   APR - JUNE    JULY - SEPT
                                                      2001          2002        2002           2002        FY 2002
                                                   ----------------------------------------------------------------

REVENUE
REVENUE - PAYROLL PROCESSING                         996,465       877,731      939,857       943,539     3,757,592
REVENUE - QTRLY/ANNUAL SVCS                           75,302         5,307       32,918        40,176       153,703
REVENUE - W-2 PREPARATION                            195,000        (3,658)           0           275       191,617
REVENUE - PROGRAMMING CHARGES                         (1,814)            0            0             0        (1,814)
REVENUE - CUSTOMIZED REPORTS                           2,376         1,527        2,109         3,028         9,040
REVENUE - COMMISSIONS                                      0             0       62,700        19,969        82,669
REVENUE - VOUCHER OPERATIONS                         153,342       164,739      158,397       164,073       640,551
REVENUE - INTERCO CHECK FEES                           1,297         1,024        1,113         1,073         4,507
REVENUE - OTHER MISC CHARGES                          24,386        47,132       20,196        24,102       115,816
                                                           0             0            0             0             0
      TOTAL REVENUE                                1,446,354     1,093,802    1,217,290     1,196,235     4,953,681
COST OF SALES
COS - GROSS WAGES                                    246,456       220,184      257,669       243,055       967,364
COS - PAYROLL TAXES                                   22,877        22,842       24,641        21,445        91,805
COS - WORKERS COMP                                     6,915         4,982        3,151         1,346        16,394
COS - DELIVERY SERVICES                               79,734        92,017       88,798       176,368       436,917
COS - BENEFITS EXPENSE                                12,244        15,340       21,028        18,239        66,851
COS - BILLABLE EXPENSES                                9,319           725        3,014           668        13,726
COS - XEROX LASER USAGE                                8,145        11,825        1,316        10,781        32,067
COS - XEROX LASER MAINT                               13,908        14,305       13,908        13,908        56,029
COS - LASER PAPER                                      9,633         9,124        8,407         8,496        35,660
COS - OTHER FORMS/SUPPLIES                            23,054        23,639       16,614        28,886        92,193
COS - PROF LIAB INSURANCE                              4,902         4,902        6,054         5,004        20,862

     TOTAL COST OF SALES                             437,187       419,885      444,600       528,196     1,829,868

     TOTAL GROSS PROFIT                            1,009,167       673,917      772,690       668,039     3,123,813
     GROSS PROFIT %                                     69.8%         61.6%        63.5%         55.8%         63.1%
EMPLOYEE COSTS
EMPLOYEE WAGES                                        88,601        83,258       96,484        88,565       356,908
EMPLOYEE PAYROLL TAXES                                 5,750         8,707        8,014         7,027        29,498
EMPLOYEE BENEFIT EXPENSES                                702         3,701        5,376         5,327        15,106
EMPLOYEE BONUS/INCENTIVES                             20,754        17,474       22,042         8,571        68,841
EMPLOYEE W/C EXPENSE                                   2,337         1,197          309            66         3,909
EMPLOYEE AUTO ALLOWANCE                                1,453         1,245        1,453         1,745         5,896
EMPLOYEE TEMP PERSONNEL                                    0         1,429          540           431         2,400
EMPLOYEE RECRUITING FEES                                   0             0        2,548         1,941         4,489
EMPLOYEE CONT EDUCATION EXP                            1,966             0            0           329         2,295

     TOTAL EMPLOYEE COSTS                            121,563       117,011      136,766       114,002       489,342
OCCUPANCY COST
BUILDING RENT EXPENSE                                 42,902        41,920       42,246        43,383       170,451
BUILDING REPAIRS & MAINT                                 489           652        1,112           163         2,416

     TOTAL OCCUPANCY COST                             43,391        42,572       43,358        43,546       172,867
GENERAL & ADMIN
COLLECTION AGENCY FEES                                     0             0            0           708           708
TAX SERVICE FEES                                      (7,548)      (17,600)      25,148             0             0
DUES & SUBSCRIPTIONS                                     177           377         (519)        1,050         1,085
CHARITABLE CONTRIBUTIONS                                 200           250            0             0           450
SEMINARS & TRAINING EXPENSE                            1,000             0            0             0         1,000
SPECIAL EMPLOYEE EVENTS                                  280            85            0           733         1,098
TRAVEL EXPENSES                                          498           513          711           919         2,641
MEALS EXPENSE                                              0            65        1,226            90         1,381
HOTEL EXPENSE                                            492             0          138           479         1,109
AUTO MILEAGE EXPENSE                                     781           624        1,014         1,375         3,794
AUTO RENTAL EXPENSE                                      191             0            0           383           574
PARKING EXPENSE                                           20           125           55           300           500
PAYROLL SERVICES                                           0         4,231            0             0         4,231
CHECK PROCESSING EXPENSE                                   0             0           24            26            50
SOFTWARE EXPENSE                                       8,301         2,297       12,657        10,054        33,309
COMPUTER SUPPLIES EXPENSE                                  0             0          371           528           899
NETWORK CHARGES                                        1,992         1,285          679         1,422         5,378
COPIER MAINTENANCE EXPENSE                                73             0          290             0           363
OFFICE SUPPLIES EXPENSE                                5,763        13,949        5,778         9,467        34,957
OFFICE EQUIPMENT LEASES                                3,036         2,440        2,496         3,114        11,086
OFFICE EQUIP MAINTENANCE                               1,640         1,752        1,995         2,146         7,533
POSTAGE EXPENSE                                       15,004        18,237       16,667       (49,574)          334
DELIVERY EXPENSE                                         359         1,323        1,133           274         3,089
OVERNIGHT EXPENSE                                         48           114           18            86           266
TELEPHONE EXPENSE                                     11,737         8,073       11,242        10,234        41,286
BANK FEES                                                  0             0          465            30           495
LATE CHARGES                                               0             0           25           (25)            0
BAD DEBT EXPENSE                                       9,000         9,000      (52,425)       (3,146)      (37,571)
MISC. G & A EXPENSES                                   2,782         1,951          203           809         5,745

     TOTAL GENERAL & ADMIN                            55,826        49,091       29,391        (8,518)      125,790
NEW BUSINESS EXP
SALES EMPLOYEE WAGES                                  22,184        20,042       23,655        25,953        91,834
SALES PAYROLL TAXES                                    1,850         5,839        4,323         2,322        14,334
SALES BENEFIT INSURANCE                                  255           255          (50)        1,089         1,549
SALES COMMISSIONS                                     30,668        31,865       27,157        26,946       116,636
SALES WORKERS COMP EXPENSE                             1,204         1,201          734           433         3,572
SALES AUTO ALLOWANCES                                  4,130         3,294        4,259         3,775        15,458
ADVERTISING EXPENSE                                    1,006           839        3,301         5,503        10,649
DUES AND SUBSCRIPTIONS                                 1,120           840          653           373         2,986
OUTSIDE TELEMARKETING EXP                                  0             0          236             0           236
TRADE SHOW EXPENSE                                         0           400            0         1,397         1,797
TRAVEL EXPENSE                                           178             0            0            29           207
ENTERTAINMENT EXPENSE                                     30             0           21             0            51
MEALS-REGULAR                                              0             0           20            62            82
PARKING EXPENSE                                          213            61          513            51           838
OFFICE SUPPLIES & STATIONARY                               0             0          142            66           208
OFFICE EQUIPT MAINTENANCE                                  0             0           40             0            40
POSTAGE EXPENSE                                          149            24          110           201           484
DELIVERY EXPENSE                                           8             0           50           207           265
OVERNIGHT EXPENSE                                        249           179          390           194         1,012
TELEPHONE EXPENSE                                        963           558        1,376           749         3,646
CELL PHONE/PAGER EXPENSE                                 195            64          264           180           703
RAM ALLOCATION                                             0             0            0             0             0

     TOTAL NEW BUSINESS EXP                           64,402        65,461       67,194        69,530       266,587

     TOTAL S G & A                                   285,182       274,135      276,709       218,560     1,054,586
DEPR & AMORT EXP                                           0             0            0             0             0
DEPREC EXP - FURNITURE & EQUIP                           906           906          906           941         3,659
DEPREC EXP - TELEPHONE EQUIP                             333           333          333           946         1,945
DEPREC EXP - COMPUTER EQUIP                              261           261          261           697         1,480
DEPREC EXP -  3RD PTY SOFTWARE                         1,590         1,590        1,590           330         5,100
                                                           0             0            0             0             0
     TOTAL DEPR & AMORT                                3,090         3,090        3,090         2,914        12,184

     TOTAL INC FROM OPS                              720,895       396,692      492,891       446,565     2,057,043

FISCAL YEAR 2003                                       Q1           Q2           Q3             Q4
                                                   OCT - DEC     JAN - MAR   APR - JUNE    JULY - SEPT
                                                      2002         2003         2003           2003        FY 2003
                                                   ----------------------------------------------------------------

REVENUE
REVENUE - PAYROLL PROCESSING                         973,056       849,412      938,859       967,131     3,728,458
REVENUE - QTRLY/ANNUAL SVCS                           60,925        26,748       31,905        40,114       159,692
REVENUE - W-2 PREPARATION                            190,000        21,144            0             0       211,144
REVENUE - CUSTOMIZED REPORTS                            (478)          478            0             0             0
REVENUE - COMMISSIONS                                 16,158        13,999       32,550        16,455        79,162
REVENUE - VOUCHER OPERATIONS                         162,358       181,409       56,006             0       399,773
REVENUE - INTERCO CHECK FEES                           1,099             0        1,338           397         2,834
REVENUE - OTHER MISC CHARGES                          20,355        41,849       27,267        18,308       107,779

      TOTAL REVENUE                                1,423,473     1,135,039    1,087,925     1,042,405     4,688,842
COST OF SALES
COS - GROSS WAGES                                    236,334       224,843      209,716       223,959       894,852
COS - PAYROLL TAXES                                   21,983        22,748       19,024        18,426        82,181
COS - WORKERS COMP                                     1,339           651          654           501         3,145
COS - DELIVERY SERVICES                              116,731       100,548       84,643        89,262       391,184
COS - BENEFITS EXPENSE                                19,447        18,523       20,037        15,988        73,995
COS - BILLABLE EXPENSES                                3,051        17,866        1,121           738        22,776
COS - XEROX LASER USAGE                                7,918         8,304        4,914         7,526        28,662
COS - XEROX LASER MAINT                               13,908        14,856       13,911        13,908        56,583
COS - LASER PAPER                                      7,434         9,100        6,372        10,069        32,975
COS - OTHER FORMS/SUPPLIES                            35,133        29,958       20,964        20,809       106,864
COS - PROF LIAB INSURANCE                              5,004         5,004        2,218             0        12,226
COS - OTHER MISC EXPENSE                                   0             0          130           307           437

     TOTAL COST OF SALES                             468,282       452,401      383,704       401,493     1,705,880

     TOTAL GROSS PROFIT                              955,191       682,638      704,221       640,912     2,982,962
     GROSS PROFIT %                                     67.1%         60.1%        64.7%         61.5%         63.6%
EMPLOYEE COSTS
EMPLOYEE WAGES                                       129,879       141,809      128,226        85,663       485,577
EMPLOYEE PAYROLL TAXES                                11,380        13,282       10,733         7,740        43,135
EMPLOYEE BENEFIT EXPENSES                             11,845        12,156      (10,625)        1,503        14,879
EMPLOYEE BONUS/INCENTIVES                             23,462        16,443       16,927        14,314        71,146
EMPLOYEE W/C EXPENSE                                     130           447          403           416         1,396
EMPLOYEE AUTO ALLOWANCE                                1,803         1,131        1,283           831         5,048
EMPLOYEE RECRUITING FEES                                 396         1,558            0           833         2,787
EMPLOYEE CONT EDUCATION EXP                                0             0            0         1,049         1,049
EMPLOYEE  FORGIVENESS OF DEBT                              0             0       20,520         4,860        25,380

     TOTAL EMPLOYEE COSTS                            178,895       186,826      167,467       117,209       650,397
OCCUPANCY COST
BUILDING RENT EXPENSE                                 42,753        44,120       42,753        45,333       174,959
UTILITIES EXPENSE                                          0         4,800        3,375         3,000        11,175
BUILDING REPAIRS & MAINT                                 479           122          586           553         1,740

     TOTAL OCCUPANCY COST                             43,232        49,042       46,714        48,886       187,874
GENERAL & ADMIN
COLLECTION AGENCY FEES                                     0             0            0         1,432         1,432
DUES & SUBSCRIPTIONS                                       0         1,530          164           249         1,943
SEMINARS & TRAINING EXPENSE                                0             0            0           334           334
SPECIAL EMPLOYEE EVENTS                                  662           648          429         1,052         2,791
TRAVEL EXPENSES                                          108         1,193        1,385            25         2,711
ENTERTAINMENT EXPENSE                                      0            62           26             0            88
MEALS EXPENSE                                             93           260           28           258           639
HOTEL EXPENSE                                              0           325          198            55           578
AUTO MILEAGE EXPENSE                                     729           773          647           422         2,571
AUTO RENTAL EXPENSE                                        0           115            0             0           115
PARKING EXPENSE                                            0           169            0           219           388
CHECK PROCESSING EXPENSE                                  29             0           12             0            41
SOFTWARE EXPENSE                                      19,902         9,436       20,246        16,749        66,333
HARDWARE EXPENSE                                       1,147         1,283            0             0         2,430
COMPUTER SUPPLIES EXPENSE                                  0           779            0             0           779
NETWORK CHARGES                                        2,130         2,517        2,043         2,139         8,829
COPIER MAINTENANCE EXPENSE                               146            73          146            73           438
OFFICE SUPPLIES EXPENSE                                3,729         4,411          545           190         8,875
OFFICE EQUIPMENT LEASES                                1,317         1,983        1,785         3,878         8,963
OFFICE EQUIP MAINTENANCE                               5,586         5,284          510         1,179        12,559
POSTAGE EXPENSE                                        1,000         1,333          667             0         3,000
DELIVERY EXPENSE                                         273           238          113             0           624
OVERNIGHT EXPENSE                                          9           200           62           908         1,179
TELEPHONE EXPENSE                                     10,300        10,191        9,835         8,697        39,023
BANK FEES                                                  0             0          102             0           102
LATE CHARGES                                               0            30            0             0            30
BAD DEBT EXPENSE                                      25,012        (4,155)      44,566         7,311        72,734
MISC. G & A EXPENSES                                   2,204         1,001          522           312         4,039

     TOTAL GENERAL & ADMIN                            74,376        39,679       84,031        45,482       243,568
NEW BUSINESS EXP
SALES EMPLOYEE WAGES                                  27,536        28,826       29,537        30,249       116,148
SALES PAYROLL TAXES                                    2,405         6,211        4,721         3,185        16,522
SALES BENEFIT INSURANCE                                1,244         1,264        1,272         2,394         6,174
SALES BONUSES/INCENTIVES                              28,077        32,532       27,813        24,804       113,226
SALES COMMISSIONS                                          0             0        1,560             0         1,560
SALES WORKERS COMP EXPENSE                               464           416          312           298         1,490
SALES AUTO ALLOWANCES                                  5,031         4,615        5,476         4,569        19,691
1099 COMMISSIONS                                           0             0          581         1,720         2,301
RECRUITING FEES                                          715             0            0             0           715
ADVERTISING EXPENSE                                    2,417         2,798        1,301            27         6,543
DUES AND SUBSCRIPTIONS                                 1,760         1,601            0         1,155         4,516
TRADE SHOW EXPENSE                                       795         1,334        3,882         3,045         9,056
TRAVEL EXPENSE                                            25            43          703             0           771
ENTERTAINMENT EXPENSE                                      0             0            0            86            86
MEALS-REGULAR                                              0             0          114            90           204
HOTEL EXPENSE                                              0             0        1,049           605         1,654
AUTO MILEAGE EXPENSE                                       0             0           94           439           533
PARKING EXPENSE                                            6            32          110           145           293
OFFICE SUPPLIES & STATIONARY                             250         2,538          740           315         3,843
POSTAGE EXPENSE                                          542            87           23           157           809
DELIVERY EXPENSE                                          42            33          605           193           873
OVERNIGHT EXPENSE                                        253           331          210           360         1,154
TELEPHONE EXPENSE                                        722           880          734           978         3,314
CELL PHONE/PAGER EXPENSE                                 134             0            0             0           134
OTHER MISC SALES EXP                                       0             0            0             0             0

     TOTAL NEW BUSINESS EXP                           72,418        83,541       80,837        74,814       311,610

     TOTAL S G & A                                   368,921       359,088      379,049       286,391     1,393,449
DEPR & AMORT EXP
DEPREC EXP - FURNITURE & EQUIP                           912           912          913           912         3,649
DEPREC EXP - TELEPHONE EQUIP                             976           975          741           732         3,424
DEPREC EXP - CAPITAL LEASE                                18            18            6             0            42
DEPREC EXP - COMPUTER EQUIP                              603           525          518           519         2,165
DEPREC EXP - LEASEHOLD IMPR                                0             0           21            30            51
DEPREC EXP -  3RD PTY SOFTWARE                             0             0           12            18            30

     TOTAL DEPR & AMORT                                2,509         2,430        2,211         2,211         9,361

     TOTAL INC FROM OPS                              583,761       321,120      322,961       352,310     1,580,152

FISCAL YEAR 2004                                       Q1            Q2          Q3             Q4
                                                   OCT - DEC     JAN - MAR   APR - JUNE    JULY - SEPT
                                                      2003          2004        2004           2004        FY 2004
                                                   ----------------------------------------------------------------

REVENUE
REVENUE - PAYROLL PROCESSING                       1,012,507       878,261      963,030       982,959     3,836,757
REVENUE - QTRLY/ANNUAL SVCS                           58,059        28,093       32,501        42,040       160,693
REVENUE - W-2 PREPARATION                            185,000        45,832            0             0       230,832
REVENUE - COMMISSIONS                                 12,628        11,743       36,470        13,635        74,476
REVENUE - INTERCO CHECK FEES                             170           109            0             0           279
REVENUE - OTHER MISC CHARGES                          17,325        50,412       32,020        28,846       128,603

      TOTAL REVENUE                                1,285,689     1,014,450    1,064,021     1,067,480     4,431,640
COST OF SALES
COS - GROSS WAGES                                    227,475       232,744      231,194       234,841       926,254
COS - PAYROLL TAXES                                   27,021        22,662       22,505        19,996        92,184
COS - WORKERS COMP                                       295           385        1,016           739         2,435
COS - DELIVERY SERVICES                               83,111        79,758       95,357        93,618       351,844
COS - BENEFITS EXPENSE                                16,917        19,282       19,356        18,200        73,755
COS - BILLABLE EXPENSES                                  112           396          583         1,283         2,374
COS - XEROX LASER USAGE                                  409         7,614        6,623         2,427        17,073
COS - XEROX LASER MAINT                               13,908        13,908        4,636        24,250        56,702
COS - LASER PAPER                                      7,435         8,711        7,114         7,848        31,108
COS - OTHER FORMS/SUPPLIES                            37,968        31,080       15,543        25,434       110,025
COS - TEMP PERSONNEL                                       0            71            0             0            71
COS - OTHER MISC EXPENSE                                 208           146          167             0           521

     TOTAL COST OF SALES                             414,859       416,757      404,094       428,636     1,664,346

     TOTAL GROSS PROFIT                              870,830       597,693      659,927       638,844     2,767,294
     GROSS PROFIT %                                     67.7%         58.9%        62.0%         59.8%         62.4%
EMPLOYEE COSTS
EMPLOYEE WAGES                                        60,056        71,967       69,744        64,027       265,794
EMPLOYEE PAYROLL TAXES                                 4,361         7,238        5,905         5,614        23,118
EMPLOYEE BENEFIT EXPENSES                               (410)        1,870        1,830         1,819         5,109
EMPLOYEE BONUS/INCENTIVES                             18,000        13,480       17,101        14,267        62,848
EMPLOYEE W/C EXPENSE                                     192           165          294           201           852
EMPLOYEE AUTO ALLOWANCE                                    0             0            0             0             0
EMPLOYEE TEMP PERSONNEL                                    0             0          380             0           380
EMPLOYEE RECRUITING FEES                                   0         2,137        2,395             0         4,532

     TOTAL EMPLOYEE COSTS                             82,199        96,857       97,649        85,928       362,633
OCCUPANCY COST
BUILDING RENT EXPENSE                                 24,000        24,000       24,000        24,000        96,000
UTILITIES EXPENSE                                     (1,200)        2,314        2,325         2,850         6,289
BUILDING REPAIRS & MAINT                                   0           877        2,359         1,415         4,651

     TOTAL OCCUPANCY COST                             22,800        27,191       28,684        28,265       106,940
GENERAL & ADMIN
CONSULTING FEES                                            0             0       12,148        14,160        26,308
PROFESSIONAL FEES                                          0             0          300             0           300
COLLECTION AGENCY FEES                                     0             0          185             0           185
LICENSES/PERMITS/FEES                                    434             0           90            37           561
DUES & SUBSCRIPTIONS                                       0         1,164          165             0         1,329
CHARITABLE CONTRIBUTIONS                                 225             0            0           225           450
SEMINARS & TRAINING EXPENSE                                0             0            0           364           364
SPECIAL EMPLOYEE EVENTS                                  322           121          359           583         1,385
TRAVEL EXPENSES                                          847            27           73             0           947
ENTERTAINMENT EXPENSE                                      0             0           56             0            56
MEALS EXPENSE                                            239           121          150            74           584
HOTEL EXPENSE                                            489           792            0            90         1,371
AUTO MILEAGE EXPENSE                                     361           455          763         1,010         2,589
AUTO RENTAL EXPENSE                                      173             0            0             0           173
PARKING EXPENSE                                           30             0            0             0            30
SOFTWARE EXPENSE                                      12,870         7,436        4,542         4,446        29,294
HARDWARE EXPENSE                                           0         1,340            0             0         1,340
COMPUTER SUPPLIES EXPENSE                                  0         1,023            0         1,264         2,287
NETWORK CHARGES                                        2,232         2,954        3,450         3,626        12,262
OFFICE SUPPLIES EXPENSE                                   39           575          597           511         1,722
STATIONARY SUPPLIES                                        0             0          219             0           219
OFFICE EQUIPMENT LEASES                                9,415         2,227        2,331         2,103        16,076
OFFICE EQUIP MAINTENANCE                               1,225         1,995          429           641         4,290
POSTAGE EXPENSE                                            9         1,500        2,000         1,984         5,493
OVERNIGHT EXPENSE                                        (31)          119           61           142           291
TELEPHONE EXPENSE                                      4,809         5,331        6,835         7,021        23,996
BANK FEES                                                 (7)            0            0             0            (7)
PENALTIES                                                  0             0        7,499             0         7,499
BAD DEBT EXPENSE                                       9,000         9,000        9,000       (21,000)        6,000
MISC. G & A EXPENSES                                     501            51          163           437         1,152

     TOTAL GENERAL & ADMIN                            43,182        36,231       51,415        17,718       148,546
NEW BUSINESS EXP
SALES EMPLOYEE WAGES                                  25,702        28,245       41,958        51,019       146,924
SALES PAYROLL TAXES                                    2,760         6,276        6,614         5,163        20,813
SALES BENEFIT INSURANCE                                3,875         3,123        2,785         2,987        12,770
SALES BONUSES/INCENTIVES                              28,922        33,546       30,842        35,265       128,575
SALES WORKERS COMP EXPENSE                               154           346          442           458         1,400
SALES AUTO ALLOWANCES                                  4,639         4,108        6,826         7,338        22,911
1099 COMMISSIONS                                       2,954         3,849        2,499         3,990        13,292
ADVERTISING EXPENSE                                    4,415         4,344          412            27         9,198
DUES AND SUBSCRIPTIONS                                 1,185           200            0         1,645         3,030
PROMOTIONAL MATERIAL                                     717             0            0         1,242         1,959
TRADE SHOW EXPENSE                                       453         2,015          189           350         3,007
TRAVEL EXPENSE                                             0            80          121            20           221
ENTERTAINMENT EXPENSE                                      0            75           42            80           197
MEALS-REGULAR                                              0            92           83            15           190
HOTEL EXPENSE                                              0           764            0           254         1,018
AUTO MILEAGE EXPENSE                                     136            90          172             0           398
PARKING EXPENSE                                           39           168           49           175           431
OFFICE SUPPLIES & STATIONARY                             488           232          636         1,922         3,278
POSTAGE EXPENSE                                           37           205           48           195           485
DELIVERY EXPENSE                                          89             0            0             0            89
OVERNIGHT EXPENSE                                        191           381          371           556         1,499
TELEPHONE EXPENSE                                        298           688          154           361         1,501
CELL PHONE/PAGER EXPENSE                                 258           594          763           868         2,483

     TOTAL NEW BUSINESS EXP                           77,312        89,421       95,006       113,930       375,669

     TOTAL S G & A                                   225,493       249,700      272,754       245,841       993,788
DEPR & AMORT EXP
DEPREC EXP - INTERNAL SOFTWARE                        16,869        16,869       16,869        16,869        67,476

     TOTAL DEPR & AMORT                               16,869        16,869       16,869        16,869        67,476

     TOTAL INC FROM OPS                              628,468       331,124      370,304       376,134     1,706,030

EBITDA                                               645,337       347,993      387,173       393,003     1,773,506

FISCAL YEAR 2005                                      Q1             Q2          Q3            Q4
                                                   OCT - DEC     JAN - MAR   APR - JUNE    JULY - SEPT
                                                     2004           2005        2005          2005         FY 2005
                                                   ----------------------------------------------------------------

REVENUE
REVENUE - PAYROLL PROCESSING                         973,580       883,017      988,328     1,065,317     3,910,242
REVENUE - QTRLY/ANNUAL SVCS                           60,377       286,945       34,767        45,816       427,905
REVENUE - W-2 PREPARATION                            227,500      (227,500)           0           100           100
REVENUE - COMMISSIONS                                 14,180        45,418       22,482        21,963       104,043
REVENUE - OTHER MISC CHARGES                          28,438        56,988       43,493        54,053       182,972

      TOTAL REVENUE                                1,304,075     1,044,868    1,089,070     1,187,249     4,625,262
COST OF SALES
COS - GROSS WAGES                                    229,982       222,028      227,049       244,883       923,942
COS - PAYROLL TAXES                                   23,354        22,581       22,926        23,619        92,480
COS - WORKERS COMP                                       930           705        3,043         3,227         7,905
COS - DELIVERY SERVICES                               85,423        95,568       90,187        86,611       357,789
COS - BENEFITS EXPENSE                                17,457        20,389       18,758        19,092        75,696
COS - BILLABLE EXPENSES                                  113           870        1,016         1,079         3,078
COS - XEROX LASER USAGE                                    0         6,698        3,315         3,034        13,047
COS - XEROX LASER MAINT                              (15,568)          524          985         1,008       (13,051)
COS - LASER PAPER                                      9,240         9,371        6,575         8,438        33,624
COS - OTHER FORMS/SUPPLIES                            34,889        22,642       22,577        22,858       102,966
COS - OTHER MISC EXPENSE                                 312            86          269           268           935

     TOTAL COST OF SALES                             386,132       401,462      396,700       414,117     1,598,411

     TOTAL GROSS PROFIT                              917,943       643,406      692,370       773,132     3,026,851
     GROSS PROFIT %                                      201           183          189           195           769
EMPLOYEE COSTS                                             0             0            0             0             0
EMPLOYEE WAGES                                        62,248        66,811       61,798        61,892       252,749
EMPLOYEE PAYROLL TAXES                                 3,976         6,609        4,751         4,783        20,119
EMPLOYEE BENEFIT EXPENSES                              1,800         3,575        3,579         3,586        12,540
EMPLOYEE BONUS/INCENTIVES                             34,238        19,096       19,034        17,699        90,067
EMPLOYEE W/C EXPENSE                                     335           183          754           749         2,021
EMPLOYEE REFERRAL BONUS                                   17             0            0             0            17

     TOTAL EMPLOYEE COSTS                            102,614        96,274       89,916        88,709       377,513
OCCUPANCY COST                                             0             0            0             0             0
BUILDING RENT EXPENSE                                 24,000        24,000       24,000        24,000        96,000
UTILITIES EXPENSE                                          0           225        1,875         9,675        11,775
BUILDING REPAIRS & MAINT                               1,527           524          550         1,344         3,945

     TOTAL OCCUPANCY COST                             25,527        24,749       26,425        35,019       111,720
GENERAL & ADMIN                                            0             0            0             0             0
GEN LIABILITY/PROPERTY INS                                 0           150            0             0           150
CONSULTING FEES                                       22,485        20,883       21,490         3,280        68,138
PROFESSIONAL FEES                                      1,238         1,823            0             0         3,061
COLLECTION AGENCY FEES                                     0             0            0           199           199
LICENSES/PERMITS/FEES                                    100           125          262            16           503
PROPERTY TAXES                                           221             0            0             0           221
DUES & SUBSCRIPTIONS                                   1,270         1,196          165         1,152         3,783
G&A ADVERTISING EXPENSE                                1,563             0          744             0         2,307
SEMINARS & TRAINING EXPENSE                              250             0            0           389           639
SPECIAL EMPLOYEE EVENTS                                1,874           247           97           350         2,568
TRAVEL EXPENSES                                        1,649             0            0           182         1,831
ENTERTAINMENT EXPENSE                                     18             0            0             0            18
MEALS EXPENSE                                            231            70          132           224           657
HOTEL EXPENSE                                            264           250            0             0           514
AUTO MILEAGE EXPENSE                                     646           205          862         1,795         3,508
AUTO RENTAL EXPENSE                                       79             0            0             0            79
PARKING EXPENSE                                           35             0           34             0            69
OFFSITE STORAGE                                            0             0          763         3,264         4,027
SOFTWARE EXPENSE                                      10,803         7,343        6,933         7,002        32,081
HARDWARE EXPENSE                                           0             0            0            38            38
COMPUTER SUPPLIES EXPENSE                                 67            15          170           416           668
IT MAINTENANCE AGMTS                                   2,308             0            0         3,039         5,347
NETWORK CHARGES                                        4,363         2,986        2,842         2,287        12,478
COPIER MAINTENANCE EXPENSE                               400             0            0             0           400
OFFICE SUPPLIES EXPENSE                                1,718         1,392          890         1,520         5,520
STATIONARY SUPPLIES                                        0             0            0           599           599
OFFICE EQUIPMENT LEASES                                2,972         3,479        2,600         2,497        11,548
OFFICE EQUIP MAINTENANCE                               2,368         3,295        1,478         2,049         9,190
POSTAGE EXPENSE                                        1,000           951        2,000           996         4,947
DELIVERY EXPENSE                                           0         1,309            0             0         1,309
OVERNIGHT EXPENSE                                        564           265          411           263         1,503
TELEPHONE EXPENSE                                      5,695         4,237        3,822         5,965        19,719
CELL PHONE/PAGER EXPENSE                                   0            61            0             0            61
BAD DEBT EXPENSE                                       9,000        (3,322)      19,267        (6,227)       18,718
MISC. G & A EXPENSES                                   2,185         1,710        2,190           120         6,205

     TOTAL GENERAL & ADMIN                            75,366        48,670       67,152        31,415       222,603
NEW BUSINESS EXP                                           0             0            0             0             0
SALES EMPLOYEE WAGES                                  52,096        37,117       38,354        74,777       202,344
SALES PAYROLL TAXES                                    5,043         8,081        6,535         8,480        28,139
SALES BENEFIT INSURANCE                                3,021         3,124        2,286         4,325        12,756
SALES BONUSES/INCENTIVES                              29,749        35,130       37,800        40,425       143,104
SALES WORKERS COMP EXPENSE                               765           607          832         1,424         3,628
SALES AUTO ALLOWANCES                                  8,561         5,724        5,793         9,716        29,794
1099 COMMISSIONS                                       6,537         6,662        6,548         7,701        27,448
PROFESSIONAL FEES                                          0         9,080       18,883             0        27,963
RECRUITING FEES                                            0             0          497             0           497
ADVERTISING EXPENSE                                    1,896         3,054        2,023         4,854        11,827
DUES AND SUBSCRIPTIONS                                    20             0        1,640             0         1,660
OUTSIDE TELEMARKETING EXP                                 80         1,500        1,825         1,450         4,855
DIRECT MAILING                                             0             0        2,594         1,503         4,097
BROCHURE MATERIAL                                          0             0            0         2,546         2,546
PROMOTIONAL MATERIAL                                       0             0        5,921         1,381         7,302
TRADE SHOW EXPENSE                                         0           750          425           936         2,111
TRAVEL EXPENSE                                           569           505           90           475         1,639
ENTERTAINMENT EXPENSE                                    170           286            0           360           816
MEALS-REGULAR                                             41             0            0            85           126
HOTEL EXPENSE                                            637             0            0             0           637
PARKING EXPENSE                                          148            51           85           197           481
OFFICE SUPPLIES & STATIONARY                             387           586          481         1,208         2,662
POSTAGE EXPENSE                                          112            39        1,590         3,024         4,765
DELIVERY EXPENSE                                           0             0           61             0            61
OVERNIGHT EXPENSE                                      1,083           640          529           566         2,818
TELEPHONE EXPENSE                                        174           207          169           383           933
CELL PHONE/PAGER EXPENSE                               1,372         1,188          844         1,206         4,610
OTHER MISC SALES EXP                                     422            18          246            18           704

     TOTAL NEW BUSINESS EXP                          112,883       114,349      136,051       167,040       530,323

     TOTAL S G & A                                   316,390       284,042      319,544       322,183     1,242,159
DEPR & AMORT EXP                                           0             0            0             0             0
DEPREC EXP - TELEPHONE EQUIP                               0             0        1,513           753         2,266
DEPREC EXP - CAPITAL LEASE                                 0        77,078      (38,539)            0        38,539
DEPREC EXP - COMPUTER EQUIP                                0             0            0            93            93
DEPREC EXP - LEASEHOLD IMPR                                0             0       12,846        12,846        25,692
DEPREC EXP - INTERNAL SOFTWARE                        16,869        16,869       17,369        17,619        68,726

     TOTAL DEPR & AMORT                               16,869        93,947       (6,811)       31,311       135,316

     TOTAL INC FROM OPS                              584,684       265,417      379,637       419,638     1,649,376

EBITDA                                               601,553       359,364      372,826       450,949     1,784,692

                                        AS OF              AS OF              AS OF              AS OF
SUMMARY BALANCE SHEET                  9/30/03            9/30/04            9/30/05            12/31/05
------------------------------------------------------------------------------------------------------------

 Cash                               $           --     $           --    $            --    $             --
AR                                             537                582                580                 877
Other Current Assets                            12                 14                  9                  30
----------------------------------------------------------------------------------------    ----------------
 Total Current Assets                          550                596                589                 907

Net Fixed Assets                               337                259                397                 368

 TOTAL ASSETS                       $          887     $          855    $           986    $          1,275
========================================================================================    ================

 Leases Payable                     $           --     $           --    $            50    $             50
Accrued Payroll                                 67                 79                 31                  64
AP                                             148                136                 59                  66
Accrued Expenses & Other Current                69                 75                 94                  46
----------------------------------------------------------------------------------------    ----------------
   Current Liabilities                         284                289                235                 226

Capital Leases                                  --                 --                148                 135
Other Long Term                                 --                 --                 --                  --
----------------------------------------------------------------------------------------    ----------------
Total Liabilities                              284                289                382                 361

Equity                                         603                566                603                 915
----------------------------------------------------------------------------------------    ----------------

 TOTAL LIABILITIES & EQUITY         $          887     $          855    $           986    $          1,275
========================================================================================    ================

Intellectual Property Schedule            Sections 2.01; 4.13

                                              INTELLECTUAL PROPERTY SCHEDULE

                                           INTELLECTUAL PROPERTY OWNED BY SELLER
---------------------------------------------------------------------------------------------------------------------------
        TYPE               REG. NO.                            COVERS                              EFFECTIVE         TERM
---------------------------------------------------------------------------------------------------------------------------

    Service Mark           2,761,339                    DSI Payroll Services                       9/9/2003        10 years
---------------------------------------------------------------------------------------------------------------------------
     Domain Name                                     www.dsipayrollservices.com                    1/9/2003         annual
---------------------------------------------------------------------------------------------------------------------------
     Domain Name                                      www.digitalsolutions.com                     7/10/1996        annual
---------------------------------------------------------------------------------------------------------------------------
                                          All DSI email addresses, employee email boxes and
      DSI Email                                         all contents therein.
---------------------------------------------------------------------------------------------------------------------------
    Customer List                                (included in the Customer Schedule)
---------------------------------------------------------------------------------------------------------------------------
                                          Payroll, quarterly, WIP, A/P, G/L, joint industry
                                            board, report writer, web remote, and various
                                         operational systems, all Source Code related to the
                                             foregoing and all written manuals or other
Proprietary Software                            materials relating to the foregoing.
---------------------------------------------------------------------------------------------------------------------------
                                           All brochures, catalogues, and other marketing
 Marketing Materials                               materials used in the Business.
---------------------------------------------------------------------------------------------------------------------------
                                           All written materials relating to the Business,
  Written Materials                         including, for example, manuals and policies.
---------------------------------------------------------------------------------------------------------------------------
       Website                                              All contents.
---------------------------------------------------------------------------------------------------------------------------
                                             All copyrights to materials relating to the
                                         Business (whether or not registered with the United
  Other Copyrights                                    States copyright office).
---------------------------------------------------------------------------------------------------------------------------
                                         Virtual machines (VMWare software files) created by
                                         Seller for DSI's disaster recovery plan; all phone
    Miscellaneous                               and fax numbers used in the Business.
---------------------------------------------------------------------------------------------------------------------------

General Contracts Schedule                Sections 2.01; 4.06

              NAME                   EFFECTIVE DATE                            TYPE
--------------------------------------------------------------------------------------------------------

Ceridian Corporation                   2/26/2004            Third Party Processor Remarketer Agreement
3311 East Old Shakopee Road
Minneapolis, MN   55425

Ceridian Tax Service, Inc.             4/20/2006                 Tax Filing Remarketing Agreement

                                                           Addendum to Third Party Processor Remarketer
Ceridian Corporation                   4/20/2006          Agreement and Tax Filing Remarketing Agreement

Patterson Smith Associates, LLC         8/1/2005                  Terminated as of May 25, 2006
530 Fifth Ave., 14th Floor
New York, NY 10036

Directo, Inc.                           2/1/2004                  Terminated as of May 25, 2006
3091 Governors Lake Drive
Suite 300
Norcross, GA 30071

Insurance Schedule                        Sections 4.15

------------------------------------------------------------------------------------------
TEAMSTAFF INSURANCE SCHEDULE
------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------
       COVERAGE                 CARRIER             POLICY#                   DATES
------------------------------------------------------------------------------------------

                             Zurich- Cedar
 Workers Compensation            Hill                                       4/1/06-07

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

------------------------------------------------------------------------------------------
                                Pacific
   General Liability           Indemnity         3582-56-01 LIO         5/10/05 - 5/20/06
        non-Rx

------------------------------------------------------------------------------------------
                                Pacific
Package - Business Auto        Indemnity              same              5/10/05 - 5/20/06

------------------------------------------------------------------------------------------
                                Pacific
  Package - Property           Indemnity              same              5/10/05 - 5/20/06

------------------------------------------------------------------------------------------
                               National
       Umbrella               Union (AIG)                               5/10/05 - 5/20/06

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

------------------------------------------------------------------------------------------
                               Lexington
E & O Payroll Services           (AIG)              1154943              5/10/05-5/20/06

------------------------------------------------------------------------------------------
       Fiduciary                Zurich           FLC5336102-00          5/20/05 - 5/20/06
------------------------------------------------------------------------------------------
         EPLi                    Chubb             6800-8576            5/15/05 - 5/20/06
------------------------------------------------------------------------------------------
         D & O                  Zurich                                  4/28/05 - 5/20/06
------------------------------------------------------------------------------------------
      Excess D & O             Hartford                                 4/28/05 - 5/20/06
------------------------------------------------------------------------------------------
   Excess D & O Side
        A Only                  Admiral                                 4/28/05 - 5/20/06
------------------------------------------------------------------------------------------
         Crime                  Zurich           FID 533651600             4/20/04-07
------------------------------------------------------------------------------------------

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

Internet Liability E&O       AIG Specialty          3488776                10/1/05-06

------------------------------------------------------------------------------------------
   Healthcare E & O              Arch                                  11/21/05 - 11/21/06

------------------------------------------------------------------------------------------
   General Liability             arch
        Rx Only

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

------------------------------------------------------------------------------------------------
       COVERAGE                    PREMIUM                      LIMITS             DEDUCTIBLE
------------------------------------------------------------------------------------------------

 Workers Compensation              $690,000                      Stat                 none
                                                              $1,000,000
------------------------------------------------------------------------------------------------

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

   General Liability               $32,721                  $2,000,000 AGG             $0
        non-Rx                    incl taxes                $1,000,000 OCC
                                                            $5,000 Med Pay
                                                            $1,000,000 EBL
------------------------------------------------------------------------------------------------

Package - Business Auto             Incl.                 $1,000,000 Any Auto          $0
                                                           $1,000,000 UN/UIM
                                                            $10,000 Med Pay
------------------------------------------------------------------------------------------------

  Package - Property                 incl                                        $5,000 All Risk
                                                                                  $25,000 Flood
                                                              $3,600,000           $25,000 EQ
------------------------------------------------------------------------------------------------

       Umbrella                    $45,000                    $10,000,000            $10,000
                             Plus $112.82 S/L Tax                                      SIR
------------------------------------------------------------------------------------------------

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

E & O Payroll Services             $51,367                    $1,000,000
                             Plus $1,597 S/L Tax
------------------------------------------------------------------------------------------------
       Fiduciary                    $9,500                    $1,000,000             $25,000
------------------------------------------------------------------------------------------------
         EPLi                      $26,325                    $1,000,000             $50,000
------------------------------------------------------------------------------------------------
         D & O                     $212,000                   $10,000,000           $500,000
------------------------------------------------------------------------------------------------
      Excess D& O                  $169,600                   $10,000,000
------------------------------------------------------------------------------------------------
   Excess D & O Side
        A Only                     $74,200                    $5,000,000
------------------------------------------------------------------------------------------------
         Crime                      $7,767                    $1,000,000             $25,000
------------------------------------------------------------------------------------------------

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

Internet Liability E&O             $14,665                     $1,000,00             $25,000

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

------------------------------------------------------------------------------------------------
   Healthcare E & O                $310,486                 $2,000,000 occ           $50,000
                                $16,000 SL Tax              $5,000,000 agg
------------------------------------------------------------------------------------------------
   General Liability            Included above              $2,000,000 AGG
        Rx Only                                             $1,000,000 OCC
                                                            $5,000 Med Pay
                                                            $1,000,000 EBL
------------------------------------------------------------------------------------------------

Leased Property Schedule                  Sections 2.01, 4.07

--------------------------------------------------------------------------------
                                             TERM (#
                                               OF          MONTHLY
TYPE OF LEASE      VENDOR     START DATE     MONTHS)       PAYMENT     ALLOCATED
--------------------------------------------------------------------------------

INCLUDED:
   Capital        Xerox        07/01/04        60             $900
   Capital        Xerox        07/01/04        60           $3,832

------------------------------------------------------------------------------------------------------------
TYPE OF LEASE                          EQUIPMENT                                        DESCRIPTION
------------------------------------------------------------------------------------------------------------

INCLUDED:
   Capital         DPCNTRL-3 CNTRL DP2K100-135 1)DP100PPM 1) DP2KLPS           software to configure printer
   Capital         DP2K100MC DOCUPRINT 100 MICR 1)DP2KSWI                      printer

                   AUTHORIZATION SCHEDULE   ss.ss. 3.01, 4.05

The following consents of third parties are required in connection with the
transactions provided for in the Asset Purchase Agreement:

      1.    The consent of I&G Garden State, LLC, as successor landlord to WHATR
            Real Estate Limited Partnership, is required for the sublease of
            space to Buyer at 300 Atrium Drive pursuant to a Lease dated as of
            May 30, 1997 between Seller and WHATR Real Estate Limited
            Partnership.

      2.    The consent of PNC Bank as lender to Seller is required with respect
            to the proposed sale of the Assets by Seller pursuant to a Revolving
            Credit Facility between PNC Bank and the Seller dated as of June 8,
            2005 and amended as of October 10, 2005 and February 13, 2006.

      3.    The consent of Xerox Corporation is required for the assignment of
            the Lease to Buyer.

Scheduled Employees                       Sections 4.18

   COMPANY         DEPARTMENT       LAST NAME         FIRST NAME      PART TIME
--------------------------------------------------------------------------------
     80               840         Boyd-Ohai         Margaret             PT
     80               811         Charles           Kathleen Z
     80               813         Chin              Arnold
     80               840         Cicero            Maryanne             PT
     80               830         Cullen            Joan
     80               814         Edwards           Gail
     80               830         Fischer           Shirley
     80               860         Fort              Oreen
     80               813         Frank             Tonia                PT
     80               860         Kraemer           Theresa
     80               814         Levine            Stephen
     80               860         McQueeney         Debby                PT
     80               814         Michell           Christine
     80               910         Munao             Philip
     80               812         Nadeau            Laurie
     80               840         Noll              Clare
     80               813         Patel             Paresh
     80               840         Pavlick           Marilyn              PT
     80               840         Qualls            Angela
     80               830         Raab              Madeline
     80               830         Raab              Nicola              Temp
     80               811         Scarpa            Linda
     80               813         Scheigel          Edward
     80               814         Skibbee           Sharon
     80               930         Tener             Eileen
     80               830         Tomaiko           Gary
     80               840         Tracy             Joyce                PT
     80               813         Viera             Luis
     80               830         Waskis            Tammy
     80               840         White             Donovan
     80               830         Williams          Gerard
     80               813         Wilson            Michael              PT

                       RELATED PARTY TRANSACTIONS ss. 4.21

Marketing Agreement with Directo, Inc., dated as of February 1, 2004. T. Stephen
Johnson, Chairman of the Board of TeamStaff is also the Chairman of Directo,
Inc. This Agreement has been terminated effective as of May 25, 2006.

                             LICENSES      ss.4.14

None.

Governmental Consents                     Section 5.04

NoneExhibit 10.1

================================================================================

                           MASTER REPURCHASE AGREEMENT

                                     AMONG:

                         BANK OF AMERICA, N.A., AS BUYER

                                       AND

                   MORTGAGEIT HOLDINGS, INC., MORTGAGEIT, INC.
                     AND MHL FUNDING CORP., EACH AS A SELLER

                            DATED AS OF MAY 25, 2006

================================================================================

                                TABLE OF CONTENTS

1.   APPLICABILITY...........................................................1
2.   DEFINITIONS AND INTERPRETATION..........................................1
3.   THE TRANSACTIONS.......................................................16
4.   ENTERING INTO TRANSACTIONS; TRANSACTION NOTICE, CONFIRMATIONS..........17
5.   PAYMENT AND TRANSFER...................................................17
6.   MARGIN MAINTENANCE.....................................................17
7.   INCOME PAYMENTS........................................................18
8.   SECURITY INTEREST......................................................18
9.   CONDITIONS PRECEDENT...................................................18
10.  RELEASE OF PURCHASED ASSETS............................................22
11.  RELIANCE...............................................................22
12.  REPRESENTATIONS AND WARRANTIES.........................................22
13.  COVENANTS OF SELLERS...................................................25
14.  REPURCHASE DATE PAYMENTS/COLLECTIONS...................................33
15.  REPURCHASE OF PURCHASED ASSETS, CHANGE OF LAW..........................33
16.  SUBSTITUTION...........................................................34
17.  REPURCHASE TRANSACTIONS................................................34
18.  EVENTS OF DEFAULT......................................................35
19.  REMEDIES...............................................................37
20.  DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE..............................40
21.  USE OF EMPLOYEE PLAN ASSETS............................................40
22.  COSTS; INDEMNITY.......................................................40
23.  WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS.............................41
24.  REIMBURSEMENT..........................................................42
25.  FURTHER ASSURANCES.....................................................42
26.  JOINT AND SEVERAL LIABILITY............................................42
27.  ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION...............................43
28.  TERMINATION............................................................43
29.  ASSIGNMENT.............................................................43
30.  AMENDMENTS, ETC........................................................44
31.  SEVERABILITY...........................................................44
32.  BINDING EFFECT; GOVERNING LAW..........................................45
33.  CONSENT TO JURISDICTION................................................45
34.  SINGLE AGREEMENT.......................................................45
35.  INTENT.................................................................45
36.  NOTICES AND OTHER COMMUNICATIONS.......................................46
37.  CONFIDENTIALITY........................................................47
38.  COUNTERPARTS...........................................................48
39.  DUE DILIGENCE..........................................................48
40.  UNCOMMITTED FACILITY...................................................49

                                      - i -

EXHIBITS

EXHIBIT A-1        MONTHLY CERTIFICATION
EXHIBIT A-2        QUARTERLY CERTIFICATION
EXHIBIT B          WIRE INSTRUCTIONS
EXHIBIT C          LOAN DATA
EXHIBIT D          APPROVED PURCHASER
EXHIBIT E          REPRESENTATIONS AND WARRANTIES WITH RESPECT TO LOANS

                                     - ii -

                           MASTER REPURCHASE AGREEMENT

                                                        Dated as of May 25, 2006

AMONG:

Bank of America, N.A., as buyer ("Buyer", which term shall include any
"Principal" as defined and provided for in Annex I), or as agent pursuant hereto
("Agent"), and MortgageIT Holdings, Inc., a Maryland corporation ("Holdings"),
MHL Funding Corp., a Delaware corporation ("MHL") and MortgageIT, Inc., a New
York corporation ("MIT" and collectively with Holdings and MHL, the "Sellers"
and individually a "Seller").

1.    APPLICABILITY

      Buyer may, from time to time, upon the terms and conditions set forth
herein, agree to enter into transactions in which a Seller transfers to Buyer
related Eligible Assets against the transfer of funds by Buyer, with a
simultaneous agreement by Buyer to transfer to such Seller such Purchased Assets
at a date certain, against the transfer of funds by such Seller. Each such
transaction shall be referred to herein as a "Transaction", and unless otherwise
agreed in writing, shall be governed by this Agreement.

2.    DEFINITIONS AND INTERPRETATION

      a.    Defined Terms.

      "Accepted Servicing Practices" means with respect to any Loan, those
mortgage servicing practices (including collection procedures) of prudent
mortgage banking institutions which service mortgage loans of the same type as
the Loans in the jurisdiction where the related Mortgaged Property is located
and in a manner at least equal in quality to the servicing Sellers or Sellers'
designees provide to loans which they own in their own portfolio.

      "Additional Amount" shall have the meaning set forth in the definition of
"Pricing Rate" in the Pricing Side Letter.

      "Additional Purchased Assets" shall have the meaning assigned thereto in
Section 6(a) hereof.

      "Adjustable Rate Mortgage Loan" means a Loan which provides for the
adjustment of the Mortgage Interest Rate payable in respect thereto.

      "Adjusted Tangible Net Worth" shall mean, for any Person as of a
particular date,

            (a) all amounts which would be included under capital on a balance
sheet of such Person at such date, determined in accordance with GAAP, without
regard to unrealized gains or losses from mark to market valuations required by
FASB 133, less

            (b) (i) amounts owing to such Person from Affiliates, or from
officers, employees, shareholders or other Persons similarly affiliated with
such Person, and (ii) intangible assets, plus

            (c) Subordinated Debt.

      "Affiliate" means, with respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting equity, by contract or otherwise.

      "Agent" means Bank of America, N.A. or any successor.

      "Agreement" means this Master Repurchase Agreement (including all
exhibits, schedules and other addenda thereto), as supplemented by the Pricing
Side Letter, as it may be amended, further supplemented or otherwise modified
from time to time.

      "Alt-A Loan" means a First Lien Loan originated in accordance with the
Underwriting Guidelines.

      "Appraised Value" means the value set forth in an appraisal made in
connection with the origination of the related Loan as the value of the
Mortgaged Property (or the related Co-op Unit in the case of a Co-op Loan).

      "Approved Purchaser" means each investor listed in Exhibit D approved by
the Buyer.

      "Assignment of Mortgage" means, with respect to any Mortgage, an
assignment of the Mortgage, notice of transfer or equivalent instrument in
recordable form, sufficient under the laws of the jurisdiction wherein the
related Mortgaged Property is located to reflect the assignment of the Mortgage
to Buyer.

      "Assignment of Proprietary Lease" means the specific agreement creating a
first lien on and pledge of the Co-op Shares and the appurtenant Proprietary
Lease securing a Co-op Loan.

      "Balloon Loan" means, with respect to a Loan, a final Monthly Payment that
is significantly larger than the other scheduled Monthly Payments in respect of
such Loan.

      "Borrower" means the obligor or obligors on a Note or Credit Line
Agreement, including any Person that has acquired the related collateral and
assumed the obligations of the original obligor or obligors under the Note or
Credit Line Agreement.

      "Breakage Costs" shall have the meaning assigned thereto in Section 3(c)
herein.

      "Business Day" means any day other than (i) a Saturday or Sunday or (ii) a
day upon which the Buyer or banking institutions in the State of New York are
obligated by law or executive order to be closed.

      "Buyer's Margin Amount" means, with respect to Transactions in the
aggregate as of any date of determination, the amount obtained by application of
Buyer's Margin Percentage to the Repurchase Price for the Transactions.

                                      - 2 -

      "Buyer's Margin Percentage" means, with respect to Transactions in the
aggregate as of any date of determination, the percentage obtained by dividing
the Market Value of the Purchased Loans on the Purchase Date by the Purchase
Price on the Purchase Date for the Transactions.

      "Cash-out Refinanced Loan" shall mean a Refinanced Loan the proceeds of
which were in excess of the principal balance of any existing first mortgage on
the related Mortgaged Property and related closing costs, and were used to pay
any such existing first mortgage, related closings costs and subordinate
mortgages on the related Mortgaged Property or were used to provide cash back to
the Borrower on the related Mortgaged Property.

      "Change in Control" shall mean the acquisition by any Person, or two or
more Persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934) of outstanding shares of voting stock of another Person at
any time if after giving effect to such acquisition such Person or Persons owns
more than fifty percent (50%) of such outstanding voting stock.

      "Change in Law" means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by Buyer (or any Affiliate of
Buyer) with any request, guideline or directive (whether or not having the force
of law) of any Governmental Authority made or issued after the date of this
Agreement.

      "Code" shall mean the Internal Revenue Code of 1986, as amended.

      "Collection Account" means an account established by the Sellers in
accordance with Section 13(p) for the benefit of Buyer.

      "Combined Loan-to-Value Ratio" or "CLTV" means (i) with respect to any
First Lien Loan or Second Lien Loan, the sum of the original principal balance
of such First Lien Loan or Second Lien Loan, as applicable, at the time of
origination and the outstanding principal balance of any related first lien loan
or second lien loan, as applicable as of the date of origination of such First
Lien Loan or Second Lien Loan, as applicable, plus any Negative Amortization or,
(ii) with respect to any HELOC, the sum of the related Credit Limit plus the
outstanding principal balance of any related First Lien Loan, in each case
divided by the lesser of (a) the Appraised Value of the related Mortgage
Property as of the date of origination of such First Lien Loan or Second Lien
Loan, as applicable, and (b) if the related Mortgaged Property was purchased
within twelve (12) months of the origination of such First Lien Loan or Second
Lien Loan, as applicable, the purchase price of such Mortgaged Property to the
extent available.

      "Computer Tape" means a computer tape or other electronic medium generated
by or on behalf of a Seller and delivered to Buyer and Custodian which provides
information relating to the related Purchased Assets, including the information
set forth in the Loan Schedule, in a format acceptable to Buyer.

                                      - 3 -

      "Conforming Mortgage Loan" means a Prime Loan which is insured by, and
meets all criteria of and is approved through the Underwriting Systems of,
Fannie Mae or Freddie Mac and which is secured by a first lien on the Mortgage
Property.

      "Co-op Corporation" shall mean, with respect to any Co-op Loan, the
cooperative apartment corporation that holds legal title to the related Co-op
Project and grants occupancy rights to units therein to stockholders through
Proprietary Leases or similar arrangements.

      "Co-op Loan" shall mean a Loan secured by a first lien pledge of stock
allocated to a dwelling unit in a residential cooperative housing corporation
and collateral assignment of the related Proprietary Lease granting exclusive
rights to occupy the related Co-op Unit in the building owned by the related
Co-op Corporation.

      "Co-op Project" shall mean, with respect to any Co-op Loan, all real
property and improvements thereto and rights therein and thereto owned by a
Co-op Corporation including without limitation the land, separate dwelling units
and all common elements.

      "Co-op Shares" shall mean, with respect to any Co-op Loan, the shares of
stock issued by a Co-op Corporation and allocated to a Co-op Unit and
represented by a stock certificate.

      "Co-op Unit" shall mean, with respect to any Co-op Loan, a specific unit
in a Co-op Project.

      "Credit Limit" shall mean, with respect to each HELOC, the maximum amount
permitted under the terms of the related Credit Line Agreement.

      "Credit Line Agreement" shall mean, with respect to each HELOC, the
related home equity line of credit agreement, account agreement and promissory
note (if any) executed by the related Borrower and any amendment or modification
thereof.

      "Confirmation" shall have the meaning assigned thereto in Section 4(b)
hereof.

      "Custodial Agreement" means the Custodial Agreement, dated as of May 25,
2006 among Sellers, Buyer and Custodian, as the same may be amended,
supplemented or otherwise modified from time to time.

      "Custodian" means Deutsche Bank National Trust Company, or its successors
and permitted assigns.

      "Default" means any event, that, with the giving of notice or the passage
of time or both, would constitute an Event of Default.

      "Default Rate" means, as of any date of determination, the lesser of (i)
the Pricing Rate plus three percent (3%) and (ii) the maximum rate permitted by
applicable law.

      "Delinquent" means, with respect to a Loan, a Monthly Payment due thereon
is not made by the close of business on the Due Date.

                                      - 4 -

      "Delinquent Loan" means a Loan which is more than thirty (30) days
Delinquent.

      "Draw" means, with respect to each HELOC, an additional borrowing by the
Borrower in accordance with the related Credit Line Agreement.

      "Due Date" means the day of the month on which the Monthly Payment is due
on a Loan, exclusive of any days of grace.

      "Electronic Tracking Agreement" means the electronic tracking agreement
dated as of May 25, 2006 among Buyer, Sellers, MERSCORP, Inc. and Mortgage
Electronic Registration, Systems, Inc., as the same may be amended, modified or
supplemented from time to time; provided that if no Loans are or will be MERS
Designated Mortgage Loans, all references herein to the Electronic Tracking
Agreement shall be disregarded.

      "Eligible Asset" shall have the meaning assigned thereto in the Pricing
Side Letter.

      "Eligible Loan" shall have the meaning assigned thereto in the Pricing
Side Letter.

      "Effective Date" means the date set forth on the top of this Agreement.

      "Escrow Letter" shall have the meaning assigned thereto in the Custodial
Agreement.

       "Event of Default" shall have the meaning assigned thereto in Section 18
hereof.

      "Exception Report" shall have the meaning assigned thereto in the
Custodial Agreement.

      "Fannie Mae" means Fannie Mae or any successor thereto.

      "FHA" means the Federal Housing Administration, an agency within HUD, or
any successor thereto and including the Federal Housing Commissioner and the
Secretary of Housing and Urban Development where appropriate under the FHA
regulations.

      "Fifty-Nine Day Delinquent Loan" means a Loan which is more than 30 days
and less than sixty (60) days Delinquent.

      "First Lien Loan" means a Loan secured by a first priority lien or the
related Mortgaged Property.

      "Freddie Mac" means Freddie Mac or any successor thereto.

      "GAAP" shall mean generally accepted accounting principles in the United
States of America in effect from time to time.

      "Gestation Loan" means a Loan that is subject to a purchase commitment by
Fannie Mae, Freddie Mac or Ginnie Mae, as applicable.

      "Ginnie Mae" means the Government National Mortgage Association or any
successor thereto.

                                      - 5 -

      "Governmental Authority" shall mean any nation or government, any state or
other political subdivision thereof, or any entity exercising executive,
legislative, judicial, regulatory or administrative functions over the Sellers.

      "Gross Margin" means with respect to each Adjustable Rate Mortgage Loan,
the fixed percentage amount set forth in the related Note and the Loan Schedule
that is added to the Index on each Interest Rate Adjustment Date in accordance
with the terms of the related Note to determine the new Mortgage Interest Rate
for such Loan.

      "Guarantee" means, as to any Person, any obligation of such Person
directly or indirectly guaranteeing any Indebtedness of any other Person or in
any manner providing for the payment of any Indebtedness of any other Person.

      "Hedge Counterparty": means a Person (a) (i) with long-term and commercial
paper or short-term deposit ratings of "P-1" by Moody's Investors Service and
"A-1" by Standard & Poor's and (ii) which shall agree in writing that, in the
event that any of its long-term or commercial paper or short-term deposit
ratings cease to be at or above "A-2" by Moody's and "A" by Standard & Poor's,
it shall secure its obligations in accordance with the request of the Buyer or
Buyer shall have the option to treat such failure as an Early Termination Event
(as defined in the ISDA Master Agreement) by such Hedge Counterparty, (b) that
has entered into a Hedge Instrument and (c) that is acceptable to the Buyer.

      "Hedge Instrument" means any interest rate cap agreement, interest rate
floor agreement, interest rate swap agreement or other interest rate hedging
agreement entered into by a Seller with a Hedge Counterparty.

      "HELOC" means an open-end home equity revolving line of credit secured by
a mortgage deed of trust or other instrument creating a first or second lien on
the related Mortgaged Property, which lien secures the related line of credit
and is underwritten in accordance with the Underwriting Guidelines.

      "High Cost Loan" means a Loan that is classified as (a) a "high cost" loan
under the Home Ownership and Equity Protection Act of 1994, (b) a "high cost,"
"threshold," "covered," "predatory" or similar loan under any other applicable
state, federal or local law (or a similarly classified loan using different
terminology under a law imposing heightened regulatory scrutiny or additional
legal liability for residential mortgage loans having high interest rates,
points and/or fees) or (c) a "High Cost Loan" or "Covered Loan" as defined in
the current S&P LEVELS(R) Glossary.

      "Holdings" means MortgageIT Holdings, Inc. and its successors and
permitted assigns.

      "HUD" means the Department of Housing and Urban Development, or any
federal agency or official thereof which may from time to time succeed to the
functions thereof with regard to FHA mortgage insurance. The term "HUD," for
purposes of this Agreement, is also deemed to include subdivisions thereof such
as the FHA and Government National Mortgage Association.

                                      - 6 -

      "Income" means, with respect to any Purchased Asset at any time, any
principal payments and/or all interest thereon and all dividends, sale proceeds
and other collections and distributions thereon, but not including any
commitment or origination fees.

      "Indebtedness" "shall mean, for any Person: (a) all obligations for
borrowed money; (b) obligations of such Person to pay the deferred purchase or
acquisition price of Property or services, other than trade accounts payable
(other than for borrowed money) arising, and accrued expenses incurred, in the
ordinary course of business so long as such trade accounts payable are payable
and paid within ninety (90) days of the date the respective goods are delivered
or the respective services are rendered; (c) indebtedness of others secured by a
lien on the Property of such Person, whether or not the respective indebtedness
so secured has been assumed by such Person; (d) obligations (contingent or
otherwise) of such Person in respect of letters of credit or similar instruments
issued for account of such Person; (e) capital lease obligations of such Person;
(f) obligations of such Person under repurchase agreements or like arrangements;
(g) indebtedness of others guaranteed on a recourse basis by such Person; (h)
all obligations of such Person incurred in connection with the acquisition or
carrying of fixed assets by such Person; (i) indebtedness of general
partnerships of which such Person is a general partner; and (j) any other
contingent liabilities of such Person.

      "Index" means with respect to each Adjustable Rate Mortgage Loan, the
index identified on the related Loan Schedule and set forth in the related Note
for the purpose of calculating the interest rate thereon.

      "Insured Closing Letter" shall have the meaning assigned thereto in the
Custodial Agreement.

      "Interest-Only Loan" means a Loan which, by its term, requires the related
Borrower to make monthly payments of only accrued interest for a certain period
of time following origination.

      "Interest Rate Adjustment Date" means with respect to each Adjustable Rate
Mortgage Loan, the date set forth in the related Note on which the Mortgage
Interest Rate on the Loan is adjusted in accordance with the terms of the Note
and specified on the Computer Tape.

      "Investment Company Act" means the Investment Company Act of 1940, as
amended, including all rules and regulations promulgated thereunder.

      "Jumbo Fixed Rate Loan" means a Loan which (a) has a fixed Mortgage
Interest Rate (b) has been originated with full documentation and (c) is
identified as J-15 and J-30 in the product code field of the Computer Tape
provided by Seller to Buyer.

      "Jumbo Loan" means a Loan with an original principal balance greater than
the single-family mortgage loan limit determined by Fannie Mae, as amended from
time to time, and less than or equal to $1,000,000,

      "LIBOR" shall mean, for each day, the rate determined by the Buyer on such
date (or, in the event such day is not a Business Day, the prior Business Day)
on the basis of the offered rate for one month U.S. dollar deposits (as
applicable), as such rate appears on Telerate Page 3750 as

                                      - 7 -

of 11:00 a.m. (London time) on such date; provided that if such rate does not
appear on Telerate Page 3750, the rate for such date will be determined on the
basis of the offered rates of the Reference Banks for one month U.S. dollar
deposits (as applicable), as of 11:00 a.m. (London time) on such date. In such
event, the Buyer will request the principal London office of each of the
Reference Banks to provide a quotation of its rate. If on such date, two or more
Reference Banks provide such offered quotations, LIBOR shall be the arithmetic
mean of all such offered quotations (rounded to the nearest whole multiple of
1/16%). If on such date, fewer than two Reference Banks provide such offered
quotations, LIBOR shall be the higher of (a) LIBOR as determined on the previous
LIBOR determination date and (b) the Reserve Interest Rate. With respect to each
Transaction, on the related Purchase Date and for each day that such Transaction
is outstanding, LIBOR shall be calculated at the overnight rate unless otherwise
elected by the related Seller in writing in the Transaction Notice.

      "Lien" shall mean any mortgage, lien, pledge, charge, security interest or
similar encumbrance.

      "Loan" means a first lien or second lien, fixed rate or adjustable rate,
wet or dry-funded, residential mortgage loan or home equity mortgage loan
originated by a Seller.

      "Loan Documents" shall have the meaning assigned thereto in the Custodial
Agreement.

      "Loan File" shall have the meaning assigned thereto in the Custodial
Agreement.

      "Loan Schedule" means the list of Loans delivered by the related Seller to
Buyer and Custodian together with each Transaction Notice and attached by the
Custodian to the related Trust Receipt and setting forth as to each Loan the
related Borrower name, the address of the related Mortgaged Property and the
outstanding principal balance of the Loan as of the initial Purchase Date,
together with any other information specified by Buyer from time to time in good
faith.

      "Margin Call" shall have the meaning assigned thereto in Section 6(a)
hereof.

      "Margin Deficit" shall have the meaning assigned thereto in Section 6(a)
hereof.

      "Market Value" means (a) with respect to any Purchased Asset that is an
Eligible Asset, as of any date of determination, the value at which such
Purchased Asset could be readily sold as ascribed to such asset by Buyer in its
sole discretion as marked to market daily or otherwise, taking into account
customary factors such as market conditions, interest rates and other factors
deemed appropriate by Buyer and (b) with respect to a Purchased Asset that is
not an Eligible Asset, zero.

      "Material Adverse Change" means, with respect to a Person, any material
adverse change in the business, condition (financial or otherwise), operations,
performance, properties or prospects of such Person taken as a whole.

      "Material Adverse Effect" means (a) a Material Adverse Change with respect
to a Person or a Person and its Affiliates that are party to any Program
Document taken as a whole; (b) a material impairment of the ability of a Person
or any Affiliate thereof that is a party to any

                                      - 8 -

Program Document to perform under any Program Document and to avoid any Event of
Default; (c) a material adverse effect upon the legality, validity, binding
effect or enforceability of any Program Document against a Person or any
Affiliate of such Person that is a party to any Program Document; or (d) a
material adverse effect upon the value or marketability of a material portion of
the Purchased Assets.

      "Maximum Aggregate Purchase Price" means $1,000,000,000 minus as of any
date of determination on which Purchased Assets include HELOCs, the excess, if
any, of the aggregate amounts of the Credit Limits over the aggregate Draws for
such HELOCs.

      "MERS" shall have the meaning assigned thereto in the Custodial Agreement.

      "MERS Designated Mortgage Loan" shall have the meaning assigned thereto in
the Custodial Agreement.

      "MHL" means MHL Funding Corp. and its successors and permitted assigns.

      "MIT" means MortgageIT, Inc. and its successors and permitted assigns.

      "Monthly Payment" means with respect to any Loan, the scheduled combined
payment of principal and interest payable by a Borrower under the related
Mortgage Note on each Due Date.

      "Mortgage" means a mortgage, deed of trust, or other instrument that
creates a first or second lien on either (a) with respect to a Loan other than a
Co-op Loan, the fee simple or leasehold estate in such real property or (b) with
respect to a Co-op Loan, the Proprietary Lease and related Co-op Shares, which
in either case secures a Note.

      "Mortgage Identification Number" shall have the meaning assigned thereto
in the Custodial Agreement.

      "Mortgage Interest Rate" means, with respect to each Loan, the annual rate
at which interest accrues on such Loan from time to time in accordance with the
provisions of the related Note.

      "Mortgage Interest Rate Cap" means with respect to each Adjustable Rate
Mortgage Loan, a rate that is set forth on the related Loan Schedule and in the
related Note and is the maximum interest rate to which the Mortgage Interest
Rate on such Loan may be increased on any Interest Rate Adjustment Date.

      "Mortgaged Property" means, with respect to a Loan, the related Borrower's
fee interest in real property and all other collateral securing repayment of the
debt evidenced by the related Note.

      "Negative Amortization" shall mean with respect to each Negative
Amortization Loan, that portion of interest accrued at the Mortgage Interest
Rate in any month which exceeds the Monthly Payment on the related Loan for such
month and which, pursuant to the terms of the Note, is added to the principal
balance of the Loan.

                                      - 9 -

      "Negative Amortization Loan" shall mean each Loan that may be subject to
Negative Amortization.

      "Net Income" means, for any Person for any period, the net income of such
Person for such period as determined in accordance with GAAP.

      "Note" means, with respect to any Loan, the related promissory note
together with all riders thereto and amendments thereof or other evidence of
indebtedness of the related Borrower.

      "Notice Date" shall have the meaning assigned thereto in Section 4 herein.

      "Obligations" means (a) all of Sellers' obligations to pay the Repurchase
Price on the applicable Repurchase Date and on the Termination Date, and other
obligations and liabilities of Sellers and Servicer to Buyer, its Affiliates or
Custodian arising under, or in connection with, the Program Documents or
otherwise, whether now existing or hereafter arising; (b) any and all sums paid
by Buyer or on behalf of Buyer pursuant to the Program Documents in order to
preserve any Purchased Asset or its interest therein; (c) in the event of any
proceeding for the collection or enforcement of any of Sellers' indebtedness,
obligations or liabilities referred to in clause (a), the reasonable expenses of
retaking, holding, collecting, preparing for sale, selling or otherwise
disposing of or realizing on any Purchased Asset, or of any exercise by Buyer or
such Affiliate of its rights under the Program Documents, including without
limitation, reasonable attorneys' fees and disbursements and court costs; and
(d) all of Sellers' obligations to Buyer, Custodian or any other Person pursuant
to the Program Documents.

      "Option ARM Loan" shall mean a Loan that is an Adjustable Rate Mortgage
Loan that (a) provides the Borrower with multiple Monthly Payment options and
(b) may result in Negative Amortization, as set forth in the related
Underwriting Guidelines.

      "Payment Adjustment Date" shall mean with respect to each Negative
Amortization Loan, the date on which Monthly Payments shall be adjusted. A
Payment Adjustment Date with respect to a Negative Amortization Loan shall occur
in accordance with the terms of the Note, and shall be specified on the Computer
Tape.

      "Person" shall mean any legal person, including any individual,
corporation, partnership, association, joint-stock company, trust, limited
liability company, unincorporated organization, governmental entity or other
entity of similar nature.

      "Price Differential" means, with respect to each Transaction as of any
date, the aggregate amount obtained by daily application of the Pricing Rate (or
during the continuation of an Event of Default, by daily application of the
Default Rate) for such Transaction to the Purchase Price on a 360-day-per-year
basis for the actual number of days during the period commencing on (and
including) the Purchase Date and ending on (but excluding) the Repurchase Date
(reduced by any amount of such Price Differential in respect of such period
previously paid by the related Seller to Buyer) with respect to such
Transaction.

      "Pricing Rate" means the per annum percentage rate for determination of
the Price Differential as set forth in the Pricing Side Letter.

                                     - 10 -

      "Pricing Side Letter" means the Pricing Side Letter, dated as of May 25,
2006, among Sellers and Buyer.

      "Prime Loan" means a Loan originated as a Prime Loan in accordance with
the Underwriting Guidelines.

      "Prime Rate" means the daily prime loan rate as reported in The Wall
Street Journal or if more than one rate is published, the highest of such rates.

      "Principal" shall have the meaning assigned thereto in Annex I.

      "Program Documents" means this Agreement, the Custodial Agreement, any
assignment of Hedge Instrument, any Servicing Agreement, the Pricing Side
Letter, the Servicer Side Letter, the Electronic Tracking Agreement and any
other agreement entered into by any Seller, on the one hand, and Buyer or any of
its Affiliates (or Custodian on its behalf) on the other, in connection herewith
or therewith.

      "Property" means any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.

      "Proprietary Lease" shall mean the lease on a Co-op Unit evidencing the
possessory interest of the owner in the Co-op Shares in such Co-op Unit.

      "Purchase Date" means the date on which a Transaction is consummated
hereunder.

      "Purchase Price" shall have the meaning assigned thereto in the Pricing
Side Letter.

      "Purchased Assets" means, with respect to a Transaction, the related
Loans, together with the related Records, Servicing Rights, any Seller's rights
under any related Hedge Instruments, all mortgage guaranties and insurance
relating to such Purchased Assets (issued by governmental agencies or otherwise)
and any mortgage insurance certificate or other document evidencing such
mortgage guaranties or insurance relating to such Purchased Assets and all
claims and payments thereunder, any Seller's rights under any takeout commitment
related to the Loans, any Seller's rights under Insured Closing Letters and
Escrow Letters, any purchase agreements or other agreements or contracts
relating to or constituting any or all of the foregoing, all "accounts" as
defined in the Uniform Commercial Code relating to or constituting any or all of
the foregoing, all other insurance policies and insurance proceeds relating to
any Purchased Asset or the related Mortgaged Property, any security account and
all rights to Income and the rights to enforce such payments arising from any of
the Purchased Assets, the Servicing Rights, all guarantees or other support for
the related Loans, and any and all instruments, chattel paper, general
intangibles, replacements, substitutions, distributions on or proceeds with
respect to any of the foregoing. The term "Purchased Assets" with respect to any
Transaction at any time also shall include Additional Purchased Assets delivered
pursuant to Section 6(a) hereof.

      "Records" means all instruments, agreements and other books, records, and
reports and data generated by other media for the storage of information
maintained by Sellers or any other person or entity with respect to a Purchased
Asset. Records shall include the Notes, any Mortgages, the Loan Files, the
Servicing Records and any other instruments necessary to

                                     - 11 -

document or service a Loan that is a Purchased Asset, including, without
limitation, the complete payment and modification history of each Loan that is a
Purchased Asset.

      "Reference Banks" means any leading banks selected by the Agent which are
engaged in transactions in Eurodollar deposits in the international Eurocurrency
market with an established place of business in London.

      "Refinanced Loan" means a Loan the proceeds of which were not used to
purchase the related Mortgaged Property.

      "Repurchase Date" means the date occurring on the earlier of (a) the 12th
day of each month and if such day is not a Business Day, the immediately
following Business Day, (b) the day set forth in the related Transaction Notice
(or if such day is not a Business Day, the immediately following Business Day)
or (c) the date determined by application of Section 19, as applicable.

      "Repurchase Price" means the price at which Purchased Assets are to be
transferred from Buyer to the related Seller upon termination of a Transaction,
which will be determined in each case (including Transactions terminable upon
demand) as the sum of the Purchase Price and the Price Differential as of the
date of such determination.

      "Reserve Interest Rate" means with respect to any LIBOR determination
date, the rate per annum that the Agent determines to be either (a) the
arithmetic mean (rounded to the nearest whole multiple of 1/16%) of the
one-month or overnight U.S. dollar lending rates (as applicable) which New York
City banks selected by the Agent are quoting on the relevant LIBOR determination
date to the principal London offices of leading banks in the London interbank
market or (b) in the event that the Agent can determine no such arithmetic mean,
the lowest one-month or overnight U.S. dollar lending rate (as applicable) which
New York City banks selected by the Agent are quoting on such LIBOR
determination date to leading European banks.

      "Revolving Period" means, with respect to a HELOC, the initial period
during which the Borrower is required to make monthly payments of interest
pursuant to the Credit Line Agreement.

      "Second Lien Loan" means a Loan secured by a lien on the Mortgaged
Property, which is subject to one prior lien on such Mortgaged Property.

      "Servicer" means GMAC Mortgage Corporation or its successors or permitted
assigns.

      "Servicer Side Letter" means the letter agreement, dated as of May 25,
2006, among Sellers, Servicer and Buyer, regarding, among other things, the
delivery of the Servicing Records and Servicing Rights to the Buyer as the same
may be amended from time to time.

      "Servicing Agreement" means any agreement (other than the Custodial
Agreement) giving rise or relating to Servicing Rights with respect to a
Purchased Asset, including any assignment or other agreement relating to such
agreement.

                                     - 12 -

      "Servicing Policies" means the Servicer's servicing policies in effect as
of the date of this Agreement, as the same may be amended from time to time.

      "Servicing Records" means with respect to each Loan, the file retained by
the Servicer consisting of all documents that the Servicer would customarily
have if it was servicing loans similar to the Loans for its own account,
including all documents necessary to document and service the Loans and any and
all documents required to be delivered pursuant to any of the Program Documents.

      "Servicing Rights" means contractual, possessory or other rights of
Sellers or any other Person arising under any agreement, to administer or
service a Purchased Asset or to possess related Records.

      "Settlement Agent" shall have the meaning assigned thereto in the
Custodial Agreement.

      "Subordinated Debt" shall mean, Indebtedness of Holdings which is (a)
unsecured, (b) no part of the principal of such Indebtedness is required to be
paid (whether by way of mandatory sinking fund, mandatory redemption, mandatory
prepayment or otherwise) prior to the date which is six (6) months following the
Termination Date and (c) the payment of the principal of and interest on such
Indebtedness and other obligations of Holdings in respect of such Indebtedness
are subordinated to the prior payment in full of the principal of and interest
(including post-petition obligations) on the Transactions and all other
obligations and liabilities of Holdings to Buyer hereunder on terms and
conditions approved in writing by Buyer and all other terms and conditions of
which are satisfactory in form and substance to Buyer.

      "Subsidiary" means, with respect to any Person, any corporation,
partnership or other entity of which at least a majority of the securities or
other ownership interests having by the terms thereof ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions of such corporation, partnership or other entity (irrespective of
whether or not at the time securities or other ownership interests of any other
class or classes of such corporation, partnership or other entity shall have or
might have voting power by reason of the happening of any contingency) is at the
time directly or indirectly owned or controlled by such Person or one or more
Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person.

      "Substitute Assets" has the meaning assigned thereto in Section 16(a).

      "Super Jumbo Loan" means a Loan with an original principal balance greater
than $1,000,000 and less than $2,000,000.

      "Takeout Commitment" shall mean, with respect to any Loan, an irrevocable
commitment issued by a Takeout Investor in favor of the related Seller pursuant
to which such Takeout Investor agrees to purchase such Loan at a specific price
on a forward delivery basis acceptable to the Buyer in its sole discretion.

      "Takeout Investor" shall mean an Approved Purchaser which has agreed to
purchase Loans pursuant to a Takeout Commitment.

                                     - 13 -

      "Termination Date" shall have the meaning assigned thereto in Section 28
herein.

      "Transaction" shall have the meaning assigned thereto in Section 1 herein.

      "Transaction Notice" means a written request of any Seller to enter into a
Transaction, in the form attached to the Custodial Agreement or such other form
as shall be mutually agreed to between the related Seller and Buyer which is
delivered to Buyer and Custodian.

      "Trust Receipt" means a Trust Receipt and Certification as defined in the
Custodial Agreement.

      "Underwriting Guidelines" means Sellers' underwriting guidelines in effect
as of the date of this Agreement which have been approved in writing by the
Buyer, as the same may be amended or modified from time to time in accordance
with the terms of this Agreement.

      "Uniform Commercial Code" means the Uniform Commercial Code as in effect
on the date hereof in the State of New York or the Uniform Commercial Code as in
effect in the applicable jurisdiction.

      "Wet Funding Package" shall have the meaning assigned thereto in the
Custodial Agreement.

      "Wet Funded Loan" means a Loan which is acceptable to the Buyer and as of
the Purchase Date does not contain all the required Loan Documents in the Loan
File and which has the following characteristics:

            (a) the proceeds thereof have been funded by wire transfer or
cashier's check, cleared check or draft or other form of immediately available
funds to the Settlement Agent or funding Buyer for such Wet Funded Loan;

            (b) such Wet Funded Loan has closed on the disbursement date and
become a valid first lien securing actual indebtedness by funding to the order
of the Mortgagor thereunder;

            (c) the proceeds thereof have not been returned to the Buyer or its
agent from the Settlement Agent for such Wet Funded Loan;

            (d) the Seller has not learned that such Wet Funded Loan will not be
closed and funded to the order of the Mortgagor;

            (e) upon recordation such Mortgage Loan will constitute a first or
second lien on the premises described therein; and

            (f) the applicable Seller shall have obtained an Insured Closing
Letter and an Escrow Letter with respect to such Wet Funded Loan.

                                     - 14 -

      b.    Capitalized terms used but not defined in this Agreement shall have
the meanings assigned thereto in the Custodial Agreement.

      c.    Interpretation.

      Headings are for convenience only and do not affect interpretation. The
following rules of this subsection (c) apply unless the context requires
otherwise. The singular includes the plural and conversely. A gender includes
all genders. Where a word or phrase is defined, its other grammatical forms have
a corresponding meaning. A reference to a subsection, Section, Annex or Exhibit
is, unless otherwise specified, a reference to a Section of, Annex or Exhibit
to, this Agreement. A reference to a party to this Agreement or another
agreement or document includes the party's successors and permitted substitutes
or assigns. A reference to an agreement or document is to the agreement or
document as amended, modified, novated, supplemented or replaced, except to the
extent prohibited by any Program Document. A reference to legislation or to a
provision of legislation includes a modification or re-enactment of it, a
legislative provision substituted for it and a regulation or statutory
instrument issued under it. A reference to writing includes a facsimile
transmission and any means of reproducing words in a tangible and permanently
visible form. A reference to conduct includes, without limitation, an omission,
statement or undertaking, whether or not in writing. An Event of Default
subsists until it has been waived in writing by Buyer. The words "hereof",
"herein", "hereunder" and similar words refer to this Agreement as a whole and
not to any particular provision of this Agreement. The term "including" is not
limiting and means "including without limitation." In the computation of periods
of time from a specified date to a later specified date, the word "from" means
"from and including", the words "to" and "until" each mean "to but excluding",
and the word "through" means "to and including." This Agreement may use several
different limitations, tests or measurements to regulate the same or similar
matters. All such limitations, tests and measurements are cumulative and shall
each be performed in accordance with their terms. Unless the context otherwise
clearly requires, all accounting terms not expressly defined herein shall be
construed, and all financial computations required under this Agreement shall be
made in accordance with GAAP, consistently applied. References herein to "fiscal
year" and "fiscal quarter" refer to such fiscal periods of Sellers. Except where
otherwise provided in this Agreement any determination, statement or certificate
by Buyer or an authorized officer of Buyer provided for in this Agreement is
conclusive and binds the parties in the absence of manifest error. A reference
to an agreement includes a security interest, guarantee, agreement or legally
enforceable arrangement whether or not in writing. A reference to a document
includes an agreement (as so defined) in writing or a certificate, notice,
instrument or document, or any information recorded in computer disk form. Where
Sellers are required to provide any document to Buyer under the terms of this
Agreement, the relevant document may be provided in writing or printed or
electronic form unless Buyer requests otherwise. This Agreement is the result of
negotiations among and has been reviewed by counsel to Buyer and Sellers, and is
the product of all parties. In the interpretation of this Agreement, no rule of
construction shall apply to disadvantage one party on the ground that such party
proposed or was involved in the preparation of any particular provision of this
Agreement or this Agreement itself. Except where otherwise expressly stated
Buyer may give or withhold, or give conditionally, approvals and consents and
may form opinions, make determinations and exercise discretion at its absolute
discretion. Any requirement of good faith, discretion or judgment by Buyer shall
not be construed to require Buyer to request or await receipt of information or
documentation not

                                     - 15 -

immediately available from or with respect to Sellers, a servicer of the
Purchased Assets, any other Person or the Purchased Assets themselves.

3.    THE TRANSACTIONS

      (a)   The related Seller shall repurchase Purchased Assets from Buyer on
each related Repurchase Date. Such obligation to repurchase subsists without
regard to any prior or intervening liquidation or foreclosure with respect to
each Purchased Asset. The related Seller is obligated to obtain the Purchased
Assets from Buyer or its designee (including the Custodian) at its own expense
on the related Repurchase Date. On each Repurchase Date, the related Seller
shall remit or shall cause to be remitted to the Buyer the Repurchase Price
together with Breakage Costs, if any. If a Seller repurchases Purchased Assets
on any day prior to the related Repurchase Date, on such day, such Seller shall
remit or cause to be remitted to the Buyer the Repurchase Price in full together
with Breakage Costs, if any. The related Seller shall give at least one (1)
Business Days' prior written notice to Buyer if such repurchase shall occur on a
date other than the related Repurchase Date.

      (b)   Provided that the applicable conditions in Sections 9(a) and (b)
have been satisfied, the related Seller may request that each Purchased Asset
that is to be repurchased by a Seller on the Repurchase Date become subject to a
new Transaction by delivering notice of such request to Buyer at least one (1)
Business Day prior to any such Repurchase Date, provided that if the Repurchase
Date so determined is later than the Termination Date, the Repurchase Date for
such Transaction shall automatically reset to the Termination Date, and the
provisions of this sentence as it might relate to a new Transaction shall expire
on such date. For each new Transaction, unless otherwise agreed, (y) the accrued
and unpaid Price Differential shall be settled in cash on each related
Repurchase Date, and (z) the Pricing Rate shall be as set forth in the Pricing
Side Letter.

      (c)   If (i) Buyer locks in the rate of LIBOR at the request of a Seller
for a fixed period of thirty (30) days from the related Purchase Date in a
Transaction Notice and such Seller repurchases Purchased Assets on an earlier
date or (ii) a Seller repurchases related Purchased Assets on any day which is
not a Repurchase Date for such Purchased Assets, such Seller shall indemnify
Buyer and hold Buyer harmless from any losses, costs and/or expenses which Buyer
may sustain or incur arising from the reemployment of funds obtained by Buyer
hereunder or from fees payable to terminate the deposits from which such funds
were obtained ("Breakage Costs"), in each case for the remainder of the thirty
(30) day period, as applicable. Buyer shall deliver to such Seller a statement
setting forth the amount and basis of determination of any Breakage Costs in
such detail as determined in good faith by Buyer to be adequate, it being agreed
that such statement and the method of its calculation shall be adequate and
shall be conclusive and binding upon such Seller absent manifest error. This
Section shall survive termination of this Agreement and the repurchase of all
Purchased Assets subject to Transactions hereunder.

                                     - 16 -

4.    ENTERING INTO TRANSACTIONS; TRANSACTION NOTICE, CONFIRMATIONS

      a.    Under the terms and conditions of the Program Documents, Buyer may
enter into Transactions with an aggregate Purchase Price outstanding at any time
up to but not exceeding the Maximum Aggregate Purchase Price. Unless otherwise
agreed, the related Seller shall give Buyer and Custodian notice of any proposed
Purchase Date in accordance with the Custodial Agreement (the date on which such
notice is so given, the "Notice Date"). On the Notice Date, the related Seller
shall (i) request that Buyer enter into a Transaction by furnishing to Buyer and
Custodian a Transaction Notice and Loan Schedule, (ii) deliver to Buyer a
Computer Tape containing the information set forth in Exhibit C hereto under the
"Daily Funding Required Fields" column and (iii) deliver to Custodian the Loan
File or Wet Funding Package (subject to certain limitations) for each Loan
subject to such Transaction.

      b.    In the event that the parties hereto desire to enter into a
Transaction on terms other than as set forth herein or in a Transaction Notice,
related Seller and Buyer shall execute a "Confirmation" specifying such terms
prior to entering into such Transaction. Any such Confirmation and the related
Transaction Notice, together with this Agreement, shall constitute conclusive
evidence of the terms agreed between Buyer and related Seller with respect to
the Transaction to which the Confirmation relates. In the event of any conflict
between this Agreement, the Transaction Notice and a Confirmation, the terms of
the Confirmation shall control with respect to the related Transaction.

5.    PAYMENT AND TRANSFER

      Unless otherwise agreed, all transfers of funds hereunder shall be in
immediately available funds and all Purchased Assets transferred shall be
transferred to the Custodian pursuant to the Custodial Agreement. Any Repurchase
Price or Price Differential received by Buyer after 4:00 p.m., New York City
time, shall be applied on the next succeeding Business Day.

      All funds required to be delivered hereunder shall be sent by wire
transfer in immediately available funds in accordance with the wire transfer
instructions set forth on Exhibit B.

6.    MARGIN MAINTENANCE

      a.    If at any time the aggregate Market Value of all Purchased Assets
subject to all Transactions is less than the aggregate Buyer's Margin Amount for
all such Transactions (such event, a "Margin Deficit"), then Buyer may by notice
to the Sellers require the Sellers in such Transactions to transfer to Buyer
either cash or additional Eligible Assets acceptable to Buyer in its sole
discretion ("Additional Purchased Assets") within one (1) Business Day of such
notice by Buyer (it being understood that the transfer of additional Eligible
Assets to the Custodian and not the review by the Custodian of the additional
Eligible Assets and subsequent issuance by the Custodian of a Trust Receipt
shall satisfy the requirement to "transfer additional Eligible Assets"), so the
cash and aggregate Market Value of the Purchased Assets including any such
Additional Purchased Assets will thereupon equal or exceed the aggregate Buyer's
Margin Amount (such requirement, a "Margin Call").

                                     - 17 -

      b.    Notice required pursuant to Section 6(a) may be given by any means
provided in Section 36 hereof. Any notice given before 10:00 a.m. New York City
time on a Business Day shall be met, and the related Margin Call satisfied, no
later than 4:00 p.m. New York City time on such Business Day; notice given after
10:00 a.m. New York City time on a Business Day shall be met, and the related
Margin Call satisfied, no later than 4:00 p.m. New York City time on the
following Business Day. The failure of Buyer, on any one or more occasions, to
exercise its rights hereunder, shall not change or alter the terms and
conditions to which this Agreement is subject or limit the right of Buyer to do
so at a later date. Sellers and Buyer each agree that a failure or delay by
Buyer to exercise its rights hereunder shall not limit or waive Buyer's rights
under this Agreement or otherwise existing by law or in any way create
additional rights for Sellers.

7.    INCOME PAYMENTS

      Where a particular term of a Transaction extends over the date on which
Income is paid in respect of any Purchased Assets subject to that Transaction,
such Income shall be the property of Buyer. Notwithstanding the foregoing, Buyer
agrees that prior to the occurrence of a Default, the related Seller shall be
entitled to receive an amount equal to all Income received, whether by Buyer,
Custodian, Servicer or any servicer or any other Person, which is not otherwise
received by the related Seller, in respect of the Purchased Assets to the full
extent it would be so entitled if the Purchased Assets had not been sold to
Buyer; provided that any Income received by Servicer or on behalf of the related
Seller while the related Transaction is outstanding shall be deemed held by
Servicer or the related Seller, as applicable, solely in trust for Buyer pending
the repurchase on the related Repurchase Date. Upon the occurrence of a Default
or an Event of Default, Sellers shall cause all Income to be deposited into the
Collection Account.

8.    SECURITY INTEREST

      Sellers and Buyer intend that the Transactions hereunder be sales to Buyer
of the Purchased Assets and not loans from Buyer to Sellers secured by the
Purchased Assets. However, in order to preserve Buyer's rights under this
Agreement in the event that a court or other forum recharacterizes the
Transactions hereunder as other than sales, and as security for Sellers'
performance of all of its Obligations, Sellers hereby grant Buyer a first
priority security interest in the Purchased Assets, whether now existing or
hereafter acquired. This Agreement creates a valid and continuing security
interest (as defined in the applicable Uniform Commercial Code) in the Purchased
Assets in favor of Buyer, which security interest is prior to all other liens on
the Purchased Assets and is enforceable as such against creditors of an
purchasers from Sellers.

9.    CONDITIONS PRECEDENT

      a.    As conditions precedent to the initial Transaction, Buyer shall have
received on or before the day of such initial Transaction the following, in form
and substance satisfactory to Buyer and duly executed by each party thereto:

            i)    The Program Documents duly executed and delivered by the
      parties thereto and being in full force and effect, free of any
      modification, breach or waiver;

                                     - 18 -

            ii)   Evidence that all other actions necessary or, in the opinion
      of Buyer, desirable to perfect and protect Buyer's interest in the
      Purchased Assets have been taken, including, without limitation, duly
      executed and filed Uniform Commercial Code financing statements on Form
      UCC-1;

            iii)  A certified copy of each Seller's consents or corporate
      resolutions, as applicable, approving the Program Documents and
      Transactions thereunder (either specifically or by general resolution),
      and all documents evidencing other necessary corporate action or
      governmental approvals as may be required in connection with the Program
      Documents;

            iv)   An incumbency certificate of the secretaries of each Seller
      certifying the names, true signatures and titles of each Seller's
      representatives duly authorized to request Transactions hereunder and to
      execute the Program Documents and the other documents to be delivered
      thereunder;

            v)    An opinion of each Sellers' counsel as to such matters as
      Buyer may reasonably request (including, without limitation, an
      enforceability and corporate opinion, a perfection opinion with respect to
      Buyer's security interest in the Purchased Assets and an "Investment
      Company Act" opinion) and in form and substance acceptable to Buyer;

            vi)   A copy of the Underwriting Guidelines certified by an officer
      of each Seller;

            vii)  [Reserved];

            viii) A copy of the certificate of insurance evidencing compliance
      with Section 13(l) of this Agreement;

            ix)   Buyer's due diligence of Sellers shall have been completed to
      the satisfaction of Buyer;

            x)    The payment in respect of all outstanding legal fees and
      reasonable out-of-pocket expenses, including due diligence expenses to be
      paid to Buyer;

            xi)   With respect to Sellers, no Event of Default shall have
      occurred and be continuing or any event or circumstance that Sellers
      reasonably expect will, with the passage of time or giving of notice,
      become an Event of Default by Sellers;

            xii)  All representations and warranties of Sellers in the Program
      Documents shall be true and correct on the date of such initial
      Transaction; and

            xiii) Any other documents reasonably requested by Buyer.

                                     - 19 -

      b.    The obligation of Buyer to enter into each Transaction pursuant to
this Agreement is subject to the following conditions precedent:

            i)    Buyer or its designee shall have received on or before the day
      of a Transaction with respect to such Purchased Assets (unless otherwise
      specified in this Agreement) the following, in form and substance
      satisfactory to Buyer and (if applicable) duly executed:

            (A)   Transaction Notice, Loan Schedule and Computer Tape delivered
                  pursuant to Section 4(a);

            (B)   The related Trust Receipt and Exception Report (which shall
                  not list any material exceptions) with the Loan Schedule
                  attached; and

            (C)   such certificates, customary opinions of counsel or other
                  documents as Buyer may reasonably request, provided that such
                  opinions of counsel shall not be required in connection with
                  each Transaction but shall only be required from time to time
                  as deemed necessary by Buyer in its good faith.

            ii)   No Default or Event of Default shall have occurred and be
      continuing.

            iii)  Buyer shall not have reasonably determined that a change in
      any requirement of law or in the interpretation or administration of any
      requirement of law applicable to Buyer has made it unlawful, and no
      Governmental Authority shall have asserted that it is unlawful, for Buyer
      to enter into Transactions with a Pricing Rate based on LIBOR.

            iv)   All representations and warranties in the Program Documents
      shall be true and correct on the date of such Transaction and Sellers
      shall be in compliance with the terms and conditions of the Program
      Documents.

            v)    The then aggregate outstanding Purchase Price for all
      Purchased Assets, when added to the Purchase Price for the requested
      Transaction, shall not exceed the Maximum Aggregate Purchase Price.

            vi)   The Purchased Assets shall be the subject of, or covered by,
      and shall include one or more Hedge Instruments and, if requested, Buyer
      shall have received satisfactory information regarding the hedging
      strategy, arrangements and general policies of Sellers with respect to
      such Hedge Instruments.

            vii)  Satisfaction of any conditions precedent to the initial
      Transaction as set forth in clause (a) of this Section 9 that were not
      satisfied prior to such initial Purchase Date. In no event shall Buyer be
      required to enter into more than 2 Transactions on any Purchase Date.

            viii) The Purchase Price for the requested Transaction shall not
      be less than $2,500,000.

                                     - 20 -

            ix)   Buyer shall have determined that all actions necessary or, in
      the opinion of Buyer, desirable to maintain Buyer's perfected interest in
      the Purchased Assets have been taken, including, without limitation, duly
      executed and filed Uniform Commercial Code financing statements on Form
      UCC-1.

            x)    Buyer shall have received in form and substance acceptable to
      Buyer the most recent quarterly financial statements of Holdings (or the
      audited financial statements of Holdings, if available).

            xi)   A copy of the Underwriting Guidelines, to the extent such
      guidelines have been materially amended or modified, which amendments or
      modifications have been approved by Buyer pursuant to Section 13(u).

            xii)  There is no Margin Deficit at the time immediately prior to
      entering into a new Transaction.

            xiii) None of the following shall have occurred and/or be
      continuing:

            (A)   an event or events shall have occurred resulting in the
                  effective absence of a "repo market" or comparable "lending
                  market" for financing debt obligations secured by mortgage
                  loans or securities or an event or events shall have occurred
                  resulting in Buyer not being able to finance any Loans through
                  the "repo market" or "lending market" with traditional
                  counterparties at rates which would have been reasonable prior
                  to the occurrence of such event or events;

            (B)   an event or events shall have occurred resulting in the
                  effective absence of a "securities market" for securities
                  backed by mortgage loans or an event or events shall have
                  occurred resulting in Buyer not being able to sell securities
                  backed by mortgage loans at prices which would have been
                  reasonable prior to such event or events; or

            (C)   there shall have occurred a material adverse change in the
                  financial condition of Buyer which effects materially and
                  adversely the ability of Buyer to fund its obligations under
                  this Agreement.

            xiv)  Any other documents reasonably requested by Buyer.

            xv)   Buyer shall have received an officer's certificate of the
      related Seller setting out the sublimits contained in the Pricing Side
      Letter and certifying that such Seller is in compliance with such
      sublimits.

            xvi)  All fees and expenses and any other amounts owed by the
      Sellers to the Buyer pursuant to the Program Documents have been paid.

            xvii) Each secured party (including any party that has a
      precautionary security interest in a Loan, other than Buyer) has released
      all of its right, title and interest in, to and under such Loan
      (including, without limitation, any security interest that such

                                     - 21 -

      secured party or secured party's agent may have by virtue of its
      possession, custody or control thereof) and has filed Uniform Commercial
      Code termination statements in respect of any Uniform Commercial Code
      filings made in respect of such Loan, and each such release and Uniform
      Commercial Code termination statement has been delivered to the Buyer
      prior to each Transaction and to the Custodian as part of the Loan File.

10.   RELEASE OF PURCHASED ASSETS

      Upon timely payment in full of the Repurchase Price and all other
Obligations owing with respect to a Purchased Asset, if no Default or Event of
Default has occurred and is continuing, Buyer shall, and shall direct Custodian
to, release all of its rights, title and interest in such Purchased Asset to the
related Seller unless such release would give rise to or perpetuate a Margin
Deficit. If the release of such Purchased Asset would give rise to or perpetuate
a Margin Deficit, Buyer shall notify Sellers of the amount of such Margin
Deficit and Sellers may thereupon satisfy the Margin Call in the manner
specified in Section 6.

11.   RELIANCE

      With respect to any Transaction, Buyer may conclusively rely upon, and
shall incur no liability to Sellers in acting upon, any request or other
communication that Buyer reasonably believes to have been given or made by a
person authorized to enter into a Transaction or the Seller's behalf.

12.   REPRESENTATIONS AND WARRANTIES

      Each Seller hereby represents and warrants, and shall on and as of the
Purchase Date for any Transaction and on and as of each date thereafter through
and including the related Repurchase Date be deemed to represent and warrant,
that:

      a.    Due Organization and Qualification.Each Seller is duly organized,
validly existing and in good standing under the laws of the jurisdiction under
whose laws it is organized. Each Seller is duly qualified to do business, is in
good standing and has obtained all necessary licenses, permits, charters,
registrations and approvals necessary for the conduct of its business as
currently conducted and the performance of its obligations under the Program
Documents except where any failure to obtain such a license, permit, charter,
registration or approval will not cause a Material Adverse Effect or impair the
enforceability of any Purchased Asset.

      b.    Power and Authority. Each Seller has all necessary power and
authority to conduct its business as currently conducted, to, execute, deliver
and perform its obligations under the Program Documents and to consummate the
Transactions.

      c.    Due Authorization. The execution, delivery and performance of the
Program Documents by each Seller have been duly authorized by all necessary
action and do not require any additional approvals or consents or other action
by or any notice to or filing with any Person other than any that have
heretofore been obtained, given or made.

                                     - 22 -

      d.    Noncontravention. None of the execution and delivery of the Program
Documents by each Seller or the consummation of the Transactions and
transactions thereunder:

            i)    conflicts with, breaches or violates any provision of the
      agreements of any Seller or any law, rule, regulation, order, writ,
      judgment, injunction, decree, determination or award currently in effect
      having applicability to such Seller or its properties;

            ii)   constitutes a material default by any Seller under any loan or
      repurchase agreement, mortgage, indenture or other agreement or instrument
      to which such Seller is a party or by which it or any of its properties is
      or may be bound or affected; or

            iii)  results in or requires the creation of any lien upon or in
      respect of any of the assets of any Seller except the lien relating to the
      Program Documents.

      e.    Legal Proceeding. There is no action, proceeding or investigation by
or before any court, governmental or administrative agency or arbitrator
affecting any of the Purchased Assets, any Seller or any of its Affiliates,
pending or, to the knowledge of any Seller, threatened, which, if decided
adversely, would have a reasonable likelihood of having a Material Adverse
Effect.

      f.    Valid and Binding Obligations. Each of the Program Documents to
which any Seller is a party, when executed and delivered by such Seller will
constitute the legal, valid and binding obligations of such Seller, enforceable
against such Seller in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights generally and
general equitable principles.

      g.    Financial Statements. The consolidated financial statements of
Holdings (which include the consolidated balance sheet and statements of income
and of cash flows), copies of which have been furnished to Buyer, (i) are, as of
the dates and for the periods referred to therein, complete and correct in all
material respects, (ii) present fairly the financial condition and results of
operations of Holdings and its consolidated Subsidiaries as of the dates and for
the periods indicated and (iii) have been prepared in accordance with GAAP
consistently applied, except as noted therein (subject as to interim statements
to normal year-end adjustments). Since the date of the most recent financial
statements, there has been no Material Adverse Change with respect to Holdings.
Holdings is not subject to any contingent liabilities or commitment that,
individually or in the aggregate, have a material possibility of causing a
Material Adverse Change with respect to Holdings.

      h.    Accuracy of Information. None of the documents or information
prepared by or on behalf of each Seller and provided by each Seller to Buyer
relating to such Seller's financial condition contain any statement of a
material fact with respect to such Seller or the Transactions that was untrue or
misleading in any material respect when made. Since the furnishing of such
documents or information, there has been no change, nor any development or event
involving a prospective change known to each Seller that would render any of
such documents or information untrue or misleading in any material respect.

                                     - 23 -

      i.    No Consents. No consent, license, approval or authorization from, or
registration, filing or declaration with, any regulatory body, administrative
agency, or other governmental, instrumentality, nor any consent, approval,
waiver or notification of any creditor, lessor or other non-governmental person,
is required in connection with the execution, delivery and performance by each
Seller of this Agreement or the consummation by each Seller of any other Program
Document, other than any that have heretofore been obtained, given or made.

      j.    Compliance With Law, Etc. No practice, procedure or policy employed
or proposed to be employed by each Seller in the conduct of its businesses
violates any law, regulation, judgment, agreement, order or decree applicable to
it which, if enforced, would result in either a Material Adverse Change or a
Material Adverse Effect with respect to such Seller.

      k.    Solvency: Fraudulent Conveyance. Each Seller is solvent and will not
be rendered insolvent by the Transaction and, after giving effect to such
Transaction, no Seller will be left with an unreasonably small amount of capital
with which to engage in its business. No Seller intends to incur, nor believes
that it has incurred, debts beyond its ability to pay such debts as they mature.
No Seller is contemplating the commencement of insolvency, bankruptcy,
liquidation or consolidation proceedings or the appointment of a receiver,
liquidator, conservator, trustee or similar official in respect of itself or any
of its assets. The amount of consideration being received by each Seller upon
the sale of the related Purchased Assets to Buyer constitutes reasonably
equivalent value and fair consideration for such Purchased Assets. No Seller is
transferring any Purchased Assets with any intent to hinder, delay or defraud
any of its creditors.

      l.    Investment Company Act and Public Utility Holding Company Act
Compliance. No Seller (i) is required to be registered as an "investment
company" as defined under the Investment Company Act or as an entity under the
control of an "investment company" as defined under the Investment Company Act
or (ii) is a "holding company" as defined in, or subject to recognition under
the Public Utility Holding Company Act of 1935.

      m.    Taxes. Each Seller has filed all federal and state tax returns which
are required to be filed and paid all taxes, including any assessments received
by it, to the extent that such taxes are shown to be due and payable on such
returns (other than assessments (a) the amount of which is not individually or
in the aggregate material or (b) the amount, applicability or validity of which
are being contested in good faith or for which it has established adequate
reserves). Any taxes, fees and other governmental charges payable by the Sellers
in connection with a Transaction and the execution and delivery of the Program
Documents have been paid.

      n.    Additional Representations. With respect to each Loan, each Seller
jointly and severally hereby make all of the applicable representations and
warranties set forth in Exhibit E to this Agreement as of the date the Loan File
or Wet Funding Package, as applicable, is delivered to the Custodian unless
specifically stated to have been made as of some other date. Further, as of each
date thereafter through and including the related Repurchase Date, each Seller
shall be deemed to have represented and warranted in like manner that no Seller
has any knowledge that any such representation or warranty may have ceased to be
true in a material respect as of such date, except as otherwise stated in a
Transaction Notice, any such exception to identify the applicable representation
or warranty and specify in reasonable detail the knowledge of each Seller. In
addition, each Seller agrees to make the representations and warranties set

                                     - 24 -

forth in Exhibit E to this Agreement as of the "Cut-off Date" of the
securitization or whole loan sale of the related Loans by such Seller or Buyer,
as applicable.

      o.    No Broker. No Seller has dealt with any broker, investment banker,
agent, or other person, except for Buyer, who may be entitled to any commission
or compensation in connection with the sale of Purchased Assets pursuant to this
Agreement; provided, that if Sellers have dealt with any broker, investment
banker, agent, or other person, except for Buyer, who may be entitled to any
commission or compensation in connection with the sale of Purchased Assets
pursuant to this Agreement, such commission or compensation shall have been paid
in full by the related Seller.

      p.    Hedging. Each Seller has entered into the Hedge Instruments pursuant
to its customary hedging procedures with respect to all Loans (other than
Negative Amortization Loans, Option ARM Loans, Second Lien Loans and HELOCs in
respect of which the applicable Seller either (i) will have entered into Takeout
Commitments or (ii) securitized such Negative Amortization Loan, Option ARM
Loan, Second Lien Loan or HELOC, as applicable, in all cases within 20 Business
Days of the origination of such Negative Amortization Loan, Option ARM Loan,
Second Lien Loan or HELOC, as applicable).

      q.    HELOC Provisions. With respect to each HELOC, each related Servicing
Agreement shall require the related Servicer to (a) fund any related Draws, (b)
to invoice the Seller on a monthly basis for the additional balances so created
and (c) to be deemed to have conveyed the additional balances to the Seller upon
any such funding. Notwithstanding anything to the contrary herein, in no event
shall Buyer have any obligation to either (a) fund any Draws with respect to any
HELOC or (b) reimburse any Servicer for the funding of any Draws, which
obligations shall be retained by the Seller, or the Servicer on behalf of the
Seller. With respect to each HELOC, if a Borrower requests an increase in the
related Credit Limit the Seller shall cause the Servicer to, in its sole
discretion, either accept or reject the Borrower's request in accordance with
the Servicing Agreement and the Credit Line Agreement and the Seller shall cause
the Servicer to notify the Buyer in writing of Servicer's decision. If the
request for a Credit Limit increase is accepted, the increase will be effected
by the Seller, or the Servicer on behalf of the Seller, through modification of
the Loan with the Borrower. Seller shall deliver to the Buyer an updated Loan
Schedule reflecting the modification to the Loan and shall deliver any modified
documents to be included in the Loan File to the Custodian.

      The representations and warranties set forth in this Agreement shall
survive transfer of the Purchased Assets to Buyer and shall continue for so long
as the Purchased Assets are subject to this Agreement.

13.   COVENANTS OF SELLERS

      Each Seller hereby covenants with Buyer as follows:

      a.    Defense of Title. Each Seller warrants and will defend the right,
title and interest of Buyer in and to the Purchased Assets against all adverse
claims and demands.

      b.    No Amendment or Compromise. Without Buyer's prior written consent,
no Seller or those acting on each Seller's behalf shall amend or modify, or
waive any term or

                                     - 25 -

condition of, or settle or compromise any claim in respect of, any item of the
Purchased Assets, any related rights or any of the Programs Documents, provided
that Servicer may amend or modify a Loan if such amendment or modification does
not affect the amount or timing of any payment of principal or interest, extends
its scheduled maturity date, modify its interest rate, or constitute a
cancellation or discharge of its outstanding principal balance and does not
materially and adversely affect the security afforded by the real property,
furnishings, fixtures, or equipment securing the Loan.

      c.    No Assignment. Except as permitted herein, no Seller or Servicer
shall sell, assign, transfer or otherwise dispose of, or grant any option with
respect to, or pledge, hypothecate or grant a security interest in or lien on or
otherwise encumber (except pursuant to the Program Documents), any of the
Purchased Assets or any interest therein, provided that this Section shall not
prevent any transfer of Purchased Assets in accordance with the Program
Documents or any Hedge Instruments for the related Purchased Assets.

      d.    Servicing of Loans. Each Seller shall cause Servicer to service all
Loans that are part of the Purchased Assets in accordance with prudent servicing
practices and the Servicing Policies, pending any delivery of such servicing to
Buyer, employing at least the same procedures and exercising the same care that
Servicer customarily employs in servicing loans that are similar to the Loans
for its own or the Seller's account. Sellers shall notify Servicers of Buyer's
interest hereunder and Sellers shall notify Buyer of the name and address of all
servicers of Loans. Sellers may not transfer their servicing rights in
conjunction with this Agreement or engage a Subservicer without the prior
written consent of the Buyer. Buyer shall have the right to approve each
servicer (other than the Servicer) and the form of all Servicing Agreements or
servicing side letter agreements relating to the Loans that constitute the
Purchased Assets. The related Seller shall cause the Servicer to hold or cause
to be held all funds collected with respect to such Loans in trust accounts and
shall apply to same for the purposes for which such funds were collected. Upon
Buyer's request, Sellers shall provide reasonably promptly to Buyer a letter
addressed to and agreed to by each Servicer of the Loans, in form and substance
reasonably satisfactory to Buyer, advising such Servicer of such matters as
Buyer may reasonably request. If Sellers should discover that, for any reason
whatsoever, Servicer or any entity responsible to Sellers by contract for
managing or servicing any such Loan has failed to perform fully Sellers'
obligations under the Program Documents with respect to the servicing of the
Purchased Assets or any of the obligations of such entities with respect to the
Purchased Assets, Sellers shall promptly notify Buyer and shall replace such
Servicer in accordance with the requirements of this Section by no later than 45
days from such notification.

      e.    Preservation of Purchased Assets. Each Seller shall do all things
necessary to preserve each Purchased Asset so that it remains subject to a first
priority perfected security interest hereunder. Without limiting the foregoing,
Sellers will comply with all rules, regulations and other laws of any
Governmental Authority applicable to Sellers relating to the Purchased Assets
and cause the Purchased Assets to comply with all applicable rules, regulations
and other laws. No Seller will allow any default for which it is responsible to
occur under any Purchased Asset or any Program Documents and Sellers shall fully
perform or cause to be performed when due all of its obligations under any
Purchased Asset or the Program Documents.

                                     - 26 -

      f.    Maintenance of Papers, Records and Files. The Sellers shall build,
maintain and have available, a complete file in accordance with lending industry
custom and practice for each Purchased Asset. The Sellers will and with respect
to the Servicing Records, will cause Servicer to maintain all such Records not
in the possession of Custodian in good and complete condition in accordance with
industry practices and preserve them against loss.

            i)    The Sellers shall collect and maintain or cause to be
      collected and maintained all Records relating to the Purchased Assets in
      accordance with industry custom and practice, including those maintained
      pursuant to the preceding subsection and all such records shall be in
      Custodian's possession unless buyer otherwise approves. No Seller will
      allow any such papers, records or files that are an original or an only
      copy to leave Custodian's possession, except for individual items removed
      in connection with servicing a specific Loan, in which event the related
      Seller will obtain or cause to be obtained a receipt from the Custodian
      for any such paper, record or file.

            ii)   For so long as Buyer has an interest in or lien on any
      Purchased Asset, the related Seller will hold or cause to be held all
      related Records (including the Servicing Records) in trust for Buyer. The
      related Seller shall notify, or cause to be notified, every other party
      holding any such Records of the interests and liens granted hereby.

            iii)  Upon reasonable advance notice from Custodian or Buyer, the
      related Seller shall (x) make any and all such Records available to
      Custodian or Buyer to examine any such Records, either by its own officers
      or employees, or by agents or contractors, or both, and make copies of all
      or any portion thereof, (y) permit Buyer or its authorized agents to
      discuss the affairs, finances and accounts of the related Seller with its
      respective chief operating officer and chief financial officer and to
      discuss the affairs, finances and accounts of the related Seller with its
      independent certified public accountants.

      g.    Financial Statements; Accountants' Reports; Other Information. The
related Seller shall keep or cause to be kept in reasonable detail books and
records of account of its assets and business and shall clearly reflect therein
the transfer of Purchased Assets to Buyer. Sellers shall furnish or cause to be
furnished to Buyer the following:

            i)    Financial Statements. (x) As soon as available and in any
      event within ninety (90) days after the end of each fiscal year, the
      consolidated, audited balance sheets of Holdings as of the end of each
      fiscal year, and its audited financial statements of income and cashflows
      and changes in its financial position of Holdings, for such fiscal year
      together with an unqualified report from an independent certified public
      accountant (y) as soon as available and in any event within forty-five
      (45) days after the end of each of the first three quarters of each fiscal
      year of Holdings, its consolidated, unaudited balance sheet as of the end
      of each fiscal quarter, and its unaudited financial statements of income
      and cashflows and changes in its financial position, for the portion of
      the fiscal year then ended and (z) upon request of Buyer and in any event
      within thirty (30) days after the end of each calendar month, the
      consolidated, unaudited balance sheets and unaudited financial statements
      of income and cashflows of Holdings and changes in the financial position
      of Holdings for such period, all of which have been prepared and

                                     - 27 -

      presented fairly in accordance with GAAP and certified by Holdings' chief
      financial officer.

            ii)   Loan Data. On Thursday of each week, reports as of Wednesday
      of such week on a Computer Tape or a diskette (or any other electronic
      transmission acceptable to Buyer) in a format acceptable to Buyer,
      containing the information set forth in Exhibit C under the "MTM Data Type
      Required Fields" column, and such other information as Buyer may
      reasonably request, including, without limitation, any other information
      regarding the Purchased Assets requested by Buyer, the performance of any
      loans serviced by or on behalf of each Seller, identification of each
      Jumbo Fixed Rate Loan which was repurchased by the Seller or sold by the
      Seller to the Buyer in the preceding week and any other financial
      information regarding each Seller as reasonably requested by Buyer.

            iii)  Monthly Servicing Diskettes. On or before the second Business
      Day prior to each Repurchase Date, or any other time at Buyer's request, a
      Computer Tape or a diskette (or any other electronic transmission
      acceptable to Buyer) in a format acceptable to Buyer containing such
      information with respect to the Purchased Assets as Buyer may reasonably
      request upon reasonable prior notice.

            iv)   Monthly and Quarterly Certification. Each Seller shall execute
      and deliver a monthly certification substantially in the form of Exhibit
      A-1 attached hereto and Holdings shall execute and deliver a quarterly
      certification substantially in the form of Exhibit A-2 attached hereto.

            v)    10-Ks and 10-Qs. Within five (5) Business Days of their filing
      with the SEC, copies of any 10-Ks and 10-Qs registration statements and
      other "corporate finance" SEC filings (other than 8-Ks); provided that
      such Seller will provide Buyer with a copy of the annual 10-K filed with
      the SEC, no later than ninety (90) days after the end of the year.

      h.    Notice of Material Events. The related Seller shall promptly inform
Buyer in writing of any of the following:

            i)    any Default, Event of Default or default or breach by the
      related Seller of any other material obligation under any Program
      Document, or the occurrence or existence of any event or circumstance that
      the related Seller reasonably expects will with the passage of time become
      a Default, Event of Default or such a default or breach by the related
      Seller;

            ii)   any material change in the insurance coverage required of the
      related Seller or any other Person pursuant to any Program Documents, with
      copy of evidence of the same attached;

            iii)  any dispute, litigation, investigation, proceeding or
      suspension between the related Seller, on the one hand, and any
      Governmental Authority or any other Person in which the amount involved
      exceeds $5,000,000 and, if adversely determined, would be reasonably
      expected to have a Material Adverse Effect;

                                     - 28 -

            iv)   any material change in accounting policies or financial
      reporting practices of any Seller;

            v)    the occurrence of any material employment dispute that is
      reasonably likely to result in a Material Adverse Effect and a description
      of the strategy for resolving it; and

            vi)   any event, circumstance or condition that has resulted, or
      could reasonably be expected to result in either a Material Adverse Change
      with respect to the related Seller or a Material Adverse Effect.

      i.    Maintenance of Licenses. Each Seller shall maintain all licenses,
permits or other approvals necessary for each Seller to conduct its business and
to perform its obligations under the Program Documents, and each Seller shall
conduct its business strictly in accordance with applicable law.

      j.    Taxes. i)   All payments made by Sellers under this Agreement shall
be made free and clear of, and without deduction or withholding for or on
account of, any present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities (including penalties, interest and additions
to tax) with respect thereto imposed by any Governmental Authority thereof or
therein, excluding income taxes, branch profits taxes, franchise taxes or any
other tax imposed on the net income by the United States, a state or a foreign
jurisdiction under the laws of which Buyer is organized or of its applicable
lending office, or any political subdivision thereof (collectively,
"Non-Excluded Taxes"), all of which shall be paid by Sellers for their own
account not later than the date when due. If a Seller is required by law or
regulation to deduct or withhold any Non-Excluded Taxes from or in respect of
any amount payable hereunder, it shall: (a) make such deduction or withholding;
(b) pay the amount so deducted or withheld to the appropriate Governmental
Authority not later than the date when due; (c) deliver to Buyer, promptly,
original tax receipts and other evidence satisfactory to Buyer of the payment
when due of the full amount of such Non-Excluded Taxes; and (d) pay to Buyer
such additional amounts as may be necessary so that Buyer receives, free and
clear of all Non-Excluded Taxes, a net amount equal to the amount it would have
received under this Agreement, as if no such deduction or withholding had been
made.

            ii)   In addition, Sellers agree to pay to the relevant Governmental
      Authority in accordance with applicable law any current or future stamp or
      documentary taxes or any other excise or property taxes, charges or
      similar levies (including, without limitation, mortgage recording taxes,
      transfer taxes and similar fees) imposed by the United States or any
      taxing authority thereof or therein that arise from any payment made
      hereunder or from the execution, delivery or registration of, or otherwise
      with respect to, this Agreement ("Other Taxes").

            iii)  Sellers agree to indemnify Buyer for the full amount of
      Non-Excluded Taxes (including additional amounts with respect thereto) and
      Other Taxes, and any liability (including penalties, interest and
      expenses) arising therefrom or with respect thereto, provided that Buyer
      shall have provided Sellers with evidence, reasonably

                                     - 29 -

      satisfactory to Sellers, of payment of Non-Excluded Taxes or Other Taxes,
      as the case may be.

            iv)   Buyer or Buyer's assignee that is not incorporated under the
      laws of the United States, any State thereof, or the District of Columbia
      (a "Foreign Buyer") shall provide the Sellers with properly completed
      United States Internal Revenue Service ("IRS") Form W-8BEN or W-8ECI or
      any successor form prescribed by the IRS, certifying that such Foreign
      Buyer is entitled to benefits under an income tax treaty to which the
      United States is a party which reduces the rate of withholding tax on
      payments of interest to zero or certifying that the income receivable
      pursuant to this Agreement is effectively connected with the conduct of a
      trade or business in the United States on or prior to the date upon which
      each such Foreign Buyer becomes a Buyer. Each Foreign Buyer will resubmit
      the appropriate form on the earliest of (A) the third anniversary of the
      prior submission or (B) on or before the expiration of thirty (30) days
      after there is a "change in circumstances" with respect to such Foreign
      Buyer as defined in Treas. Reg. Section 1.1441(e)(4)(ii)(D). For any
      period with respect to which a Foreign Buyer has failed to provide the
      Seller with the appropriate form or other relevant document pursuant to
      this Section 13(j)(iv) (unless such failure is due to a change in treaty,
      law, or regulation occurring subsequent to the date on which a form
      originally was required to be provided), such Foreign Buyer shall not be
      entitled to any "gross-up" of Non-Excluded Taxes or indemnification under
      Section 13(j)(iii) with respect to Non-Excluded Taxes imposed by the
      United States; provided, however, that should a Foreign Buyer, which is
      otherwise exempt from a withholding tax, become subject to Non-Excluded
      Taxes because of its failure to deliver a form required hereunder, Seller
      shall take such steps as such Foreign Buyer shall reasonably request to
      assist such Foreign Buyer to recover such Non-Excluded Taxes.

            v)    Without prejudice to the survival of any other agreement of
      Sellers hereunder, the agreements and obligations of Sellers contained in
      this Section 13(j) shall survive the termination of this Agreement.
      Nothing contained in this Section 13(j) shall require Buyer to make
      available any of its tax returns or other information that it deems to be
      confidential or proprietary.

            vi)   Each party to this Agreement acknowledges that its intent for
      purposes of U.S. federal, state and local income and franchise taxes is to
      treat each Transaction as indebtedness of related Seller that is secured
      by the Purchased Assets and that the Purchased Assets are owned by Seller
      in the absence of an Event of Default by related Seller. All parties to
      this Agreement agree to such treatment and agree to take no action
      inconsistent with this treatment, unless required by law.

            vii)  Sellers shall pay and discharge or cause to be paid and
      discharged, when due, all taxes, assessments and governmental charges or
      levies imposed upon it or its income and profits or upon any of its
      property, real, personal or mixed (including without limitation, the
      Purchased Assets) or upon any part thereof, as well as any other lawful
      claims which, if unpaid, might become a Lien upon such properties or any
      part thereof, except for any such taxes, assessments and governmental
      charges, levies or claims as are

                                     - 30 -

      appropriately contested in good faith by appropriate proceedings
      diligently conducted and with respect to which adequate reserves are
      provided.

            viii) Sellers shall file on a timely basis all federal, and material
      state and local tax and information returns, reports and any other
      information statements or schedules required to be filed by or in respect
      of it.

      k.    Use of Custodian. Without the prior written consent of the Buyer, no
Seller shall use a third party custodian as document custodian other than the
Custodian with respect to third party purchasers, prospective third party
purchasers, lenders and prospective third party lenders with respect to loans of
the same type as the Purchased Assets.

      l.    Insurance. Each Seller will, and shall cause the Servicer to, obtain
and maintain insurance with responsible companies in such amounts and against
such risks as are customarily carried by business entities engaged in similar
businesses similarly situated, and will furnish Buyer on request full
information as to all such insurance, and provide within fifteen (15) days after
receipt of such request the certificates or other documents evidencing renewal
of each such policy. Holdings shall continue to maintain coverage, for itself
and its Subsidiaries, that encompass employee dishonesty, forgery or alteration,
theft, disappearance and destruction, robbery and safe burglary, property (other
than money and securities) and computer fraud in an aggregate amount of at least
$1,000,000 and shall name Buyer as loss payee.

      m.    Affiliate Transaction. No Seller will at any time, directly or
indirectly, sell, lease or otherwise transfer any property or assets to, or
otherwise acquire any property or assets from, or otherwise engage in any
transactions with, any of their Affiliates unless the terms thereof are no less
favorable to Sellers, than those that could be obtained at the time of such
transaction in an arm's length transaction with a Person who is not such an
Affiliate.

      n.    Limitation on Distributions. If a Default has occurred and is
occurring, none of the Sellers shall pay any dividends or distributions with
respect to any capital stock or other equity interests in it, whether now or
hereafter outstanding, or make any other distribution in respect thereof, either
directly or indirectly, whether in cash or property or in obligations of
Sellers.

      o.    Delivery of Servicing Records. With respect to the Servicing Records
of each Loan, the related Seller shall cause the Servicer to deliver such
Servicing Records to Buyer or the designee of Buyer, within 45 days of a
Purchase Date unless otherwise stated in writing by Buyer; provided that on each
Repurchase Date that is subject to a new Transaction, such delivery requirement
is deemed restated for such new Transaction (and the immediately preceding
delivery requirement is deemed to be rescinded) in the absence of directions to
the contrary from Buyer, and a new 45-day period is deemed to commence as of
such Repurchase Date, all as provided in the Servicer Side Letter. The transfer
of Servicing Records under this Subsection shall be in accordance with customary
standards in the industry.

      p.    Establishment of Collection Account. Within 30 days of the Effective
Date, Sellers shall establish, for the benefit of Buyer, a Collection Account in
Buyer's name for the sole and exclusive benefit of Buyer. Upon the occurrence of
a Default or an Event of Default,

                                     - 31 -

Sellers shall segregate all amounts collected on account of the Purchased Assets
to be held in trust for the benefit of Buyer, and shall remit such collections
into the Collection Account. No amounts deposited into the Collection Account
shall be removed without Buyer's prior written consent. Sellers shall follow the
instructions of Buyer with respect to the Purchased Assets and deliver to Buyer
any information with respect to the Purchased Assets requested by Buyer. Sellers
shall deposit or credit to the Collection Account all items to be deposited or
credited thereto irrespective of any right of set-off or counterclaim arising in
favor of it (or any third party claiming through it) under any other agreement
or arrangement.

      q.    Financial Covenants. At all times Holdings shall maintain (a) an
Adjusted Tangible Net Worth that is not less than $250,000,000 on a consolidated
basis; (b) a Leverage Ratio (defined as the ratio of total liabilities
(excluding non-recourse debt and Subordinated Debt but including any contingent
liabilities) to Adjusted Tangible Net Worth that is not greater than 12:1; (c)
Liquidity (defined as unrestricted cash and cash equivalents plus available,
unused borrowing capacity on any committed credit facility) that is equal to at
least $20,000,000 and (d) Net Income, for each calendar quarter commencing with
the calendar quarter ending on June 30, 2006, in excess of $1.00. At all times
MIT shall maintain an Adjusted Tangible Net Worth that is not less than
$10,000,000 and MHL shall maintain an Adjusted Tangible Net Worth that is not
less than $250,000.

      r.    MERS. The Seller will comply in all material respects with the rules
and procedures of MERS in connection with the servicing of the MERS Designated
Mortgage Loans for as long as such Loans are registered with MERS. In connection
with the assignment of any Loan registered on the MERS System, Sellers agree
that at the request of Buyer, Sellers will, at their joint and several cost and
expense, cause the MERS System to indicate that such Loan has been transferred
to Buyer in accordance with the terms of this Agreement by including in MERS'
computer files (a) the code in the field which identifies the specific owner of
the Loans and (b) the code in the field "Pool Field" which identifies the series
in which such Loans were sold. Sellers further agree that Sellers will not alter
codes referenced in this paragraph with respect to any Loan at any time that
such Loan is subject to this Agreement.

      s.    Change in Nature of Business. No Sellers shall make any material
change in the nature of its business as carried on at the date hereof.

      t.    Merger of Holdings. Holdings shall not at any time, directly or
indirectly, (i) liquidate or dissolve or enter into any consolidation or merger
or be subject to a Change in Control without Buyer's prior consent; (ii) form or
enter into any partnership, joint venture, syndicate or other combination which
would have a Material Adverse Effect; or (iii) make any Material Adverse Change
with respect to it or its Subsidiaries.

      u.    Underwriting Guidelines. Sellers shall not permit any modifications
to be made to the Underwriting Guidelines without 15 days prior written notice
to the Buyer. In the event that Sellers make any amendment or modification to
the Underwriting Guidelines: (i) Sellers shall promptly deliver to the Buyer a
complete copy of the amended or modified Underwriting Guidelines, and (ii) the
Buyer may, at its sole option and discretion, refrain from entering into any
further Transactions with respect to Loans originated under the amended or
modified Underwriting Guidelines.

                                     - 32 -

      v.    Jumbo Fixed Rate Loans. With respect to each Jumbo Fixed Rate Loan
which was repurchased by a Seller (as identified in the loan data provided by
Seller pursuant to Section 13(g)(ii) hereof) and was not subsequently purchased
by Buyer, Sellers shall remit to the Buyer on the following Repurchase Date, and
if such day is not a Business Day, the next succeeding Business Day, the
Additional Amount set forth in an invoice delivered by Buyer to Seller.

      w.    Insured Closing Letter. As of the date hereof and as of the date of
each delivery of a Wet Funded Loan, the Settlement Agent has obtained an Insured
Closing Letter, closing protection letter or similar authorization letter from a
nationally recognized title insurance company approved by the Buyer, copies of
which shall be delivered by the applicable Seller to the Custodian prior to the
Purchase Date if requested by Buyer. Among other things, the Insured Closing
Letter covers any losses occurring due to the fraud, dishonesty or mistakes of
the closing agent. The Insured Closing Letter inures to the benefit of, and the
rights thereunder may be enforced by, the loan originator and its successors and
assigns, including the Buyer.

      x.    Escrow Letter. As of the date hereof and as of the date of each
delivery of a Wet Funded Loan, the Settlement Agent has executed an escrow
agreement or letter stating that in the event of a Rescission of or if for any
reason the Loan fails to fund on a given day, the party conducting the closing
is holding all funds which would have been disbursed on behalf of the Mortgagor
as agent for the benefit of the Buyer and such funds shall be redeposited in the
Disbursement Account for benefit of the Buyer not later than 5:00 p.m. (New York
City time) of the date of Rescission or other failure of the Loan to fund on a
given day. Such Escrow Letter inures to the benefit of, and the rights
thereunder may be enforced by, the loan originator and its successors and
assigns, including the Buyer.

14.   REPURCHASE DATE PAYMENTS/COLLECTIONS

      On each Repurchase Date, Seller shall remit or shall cause to be remitted
to Buyer the Repurchase Price.

15.   REPURCHASE OF PURCHASED ASSETS, CHANGE OF LAW

      a.    Upon discovery by the related Seller of a breach of any of the
representations and warranties set forth in Exhibit E to this Agreement, the
related Seller shall give prompt written notice thereof to Buyer. Upon any such
discovery by Buyer, Buyer will notify the related Seller. It is understood and
agreed that the representations and warranties set forth in Exhibit E to this
Agreement shall survive delivery of the respective Loan Files to the Custodian
and shall inure to the benefit of Buyer. The fact that Buyer has conducted or
has failed to conduct any partial or complete due diligence investigation in
connection with its purchase of any Loan shall not affect Buyer's right to
demand repurchase as provided under this Agreement. The related Seller shall
within two (2) Business Days of the earlier of the related Seller's discovery or
receiving notice, with respect to any Loan, of (i) any breach of a
representation or warranty contained in Exhibit E to this Agreement or (ii) any
failure to deliver any of the items required to be delivered as part of the Loan
File within the time period required for delivery pursuant to the Custodial
Agreement, promptly cure such breach or delivery failure in all material
respects. If within two (2) Business Days after the earlier of the related
Seller's discovery of such breach or delivery failure or the related Seller's
receiving notice thereof such breach or delivery failure has not been remedied
by

                                     - 33 -

the related Seller, the related Seller shall promptly upon receipt of written
instructions from Buyer, at Buyer's option, either (i) purchase such Loan at a
purchase price equal to the Repurchase Price with respect to such Loan by wire
transfer to the account designated by Buyer, or (ii) transfer comparable
Substitute Assets to Buyer, as provided in Section 16 hereof.

      b.    If Buyer determines that the introduction of, any change in, or the
interpretation or administration of any requirement of law has made it unlawful
or commercially impracticable to engage in any Transactions with a Pricing Rate
based on LIBOR, then the related Seller (i) shall upon its receipt of notice of
such fact and demand from Buyer (with a copy of such notice to Custodian),
repurchase the Purchased Assets subject to the Transaction or the next
succeeding Business Day and, at Sellers' election, concurrently enter into a new
Transaction with Buyer with a Pricing Rate based on the Prime Rate plus the
margin set forth in the Pricing Side Letter as part of the Pricing Rate and (ii)
may elect, by giving notice to Buyer and Custodian, that all new Transactions
shall have Pricing Rates based on the Prime Rate plus such margin.

      c.    If Buyer determines in its sole discretion that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate
of return on Buyer's capital or on the capital of any Affiliate of Buyer as a
consequence of such Change in Law on this Agreement, then from time to time the
related Seller will compensate Buyer or Buyer's Affiliate, as applicable, for
such reduced rate of return suffered as a consequence of such Change in Law on
terms similar to those imposed by Buyer on its other similarly affected
customers. Buyer shall provide the related Seller with prompt notice as to any
Change in Law. Notwithstanding any other provisions in this Agreement, in the
event of any such Change in Law, Sellers will have the right to terminate all
Transactions then outstanding without any prepayment penalty as of a date
selected by Sellers, which date shall be prior to the then applicable Repurchase
Date and which date shall thereafter for all purposes hereof be deemed to be the
Repurchase Date.

16.   SUBSTITUTION

      The related Seller may, subject to agreement with and acceptance by Buyer,
substitute other assets which are substantially the same as the Purchased Assets
(the "Substitute Assets") for any Purchased Assets. Such substitution shall be
made by transfer to Buyer of such other Substitute Assets and transfer to the
related Seller of such Purchased Assets. After substitution, the Substitute
Assets shall be deemed to be Purchased Assets.

17.   REPURCHASE TRANSACTIONS

      Buyer may, in its sole election, engage in repurchase transactions with
the Purchased Assets or otherwise pledge, hypothecate, assign, grant
participation interests in, transfer or otherwise convey the Purchased Assets
with a counterparty of Buyer's choice, in all cases subject to Buyer's
obligation to reconvey the Purchased Assets (and not substitutes therefor) on
the Repurchase Date. In the event Buyer engages in a repurchase transaction with
any of the Purchased Assets or otherwise pledges or hypothecates any of the
Purchased Assets, Buyer shall have the right to assign to Buyer's counterparty
any of the applicable representations or warranties in Exhibit E to this
Agreement and the remedies for breach thereof, as they relate to the Purchased
Assets that are subject to such repurchase transaction.

                                     - 34 -

18.   EVENTS OF DEFAULT

      With respect to any Transactions covered by or related to this Agreement,
the occurrence of any of the following events shall constitute an "Event of
Default":

      a.    the related Seller either fails to repurchase the Purchased Assets
on the applicable Repurchase Date pursuant to Section 3(a), fails to settle in
cash the applicable Price Differential on any Repurchase Date pursuant to
Section 3(b), or fails to perform its obligations under Section 6;

      b.    a Seller shall fail to perform, observe or comply with any other
material term, covenant or agreement contained in the Program Documents (other
than Exhibit E to this Agreement and the other "Events of Default" set forth in
this Section 18) and such failure is not cured within the time period expressly
provided or, if no such cure period is provided, within two (2) Business Days of
the earlier of (i) such party's receipt of written notice from Buyer or
Custodian of such breach and (ii) the date on which such party obtains notice or
knowledge of the facts giving rise to such breach;

      c.    any representation or warranty made by a Seller or any of its
officers in the Program Documents or in any other document delivered in
connection therewith shall have been incorrect or untrue in any material respect
when made or repeated or deemed to have been made or repeated (other than the
representations and warranties in Exhibit E to this Agreement which shall be
considered solely for the purpose of determining whether the related Loan is an
Eligible Asset, unless Sellers shall have made any such representations or
warranties with the knowledge that they were materially false or misleading at
the time made or repeated or deemed to have been made or repeated);

      d.    Sellers or any of its Subsidiaries or Affiliates shall fail to pay
any of Sellers' or its Subsidiaries' or Affiliates' Indebtedness, or any
interest or premium thereon when due (whether by scheduled maturity, requirement
prepayment, acceleration, demand or otherwise) beyond any applicable cure
period, and such failure shall entitle the related counterparty to declare any
such Indebtedness or Guarantee to be due and payable, or required to be prepaid
(other than by a regularly scheduled required prepayment), prior to the state
maturity thereof;

      e.    a custodian, receiver, conservator, liquidator, trustee,
sequestrator or similar official for any Seller or any of its Subsidiaries or
Affiliates, or any of Sellers' Property (as a debtor or creditor protection
procedure is appointed or takes possession of such property), or any Seller or
any of its Subsidiaries or Affiliates generally fails to pay Sellers' or its
Subsidiaries' or Affiliates' debts as they become due; or any Seller or its
Subsidiaries or Affiliates is adjudicated bankrupt or insolvent; or an order for
relief is entered under the Federal Bankruptcy Code, or any successor or similar
applicable statute, or any administrative insolvency scheme, against any Seller
of its Subsidiaries' or Affiliates' Property is sequestered by court or
administrative order; or a petition is filed against any Seller or any of its
Subsidiaries or Affiliates under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution, moratorium, delinquency or
liquidation law of any jurisdiction, whether now or subsequently in effect and
that would be reasonably expected to have a Material Adverse Effect;

                                     - 35 -

      f.    any Seller or its Subsidiaries or Affiliates files a voluntary
petition in bankruptcy seeks relief under any provision of any bankruptcy,
reorganization, moratorium, delinquency, arrangement, insolvency, readjustment
of debt, dissolution or liquidation law of any jurisdiction whether now or
subsequently in effect; or consents to the filing of any petition against it
under any such law or consents to the appointment of or taking possession by a
custodian, receiver, conservator, trustee, liquidator, sequestrator or similar
official for any Seller or any of its Subsidiaries or Affiliates, or of all or
any part of Sellers' or its Subsidiaries or Affiliates' Property; or makes an
assignment for the benefit of Sellers' or any of its Subsidiaries or Affiliates
creditors;

      g.    any final judgment or order for the payment of money in excess of
$5,000,000 (in the aggregate and to the extent not covered by insurance as to
which the insurance company has acknowledged coverage) is rendered against any
Seller or any of its Subsidiaries or Affiliates and remains undischarged or
unsatisfied after the passage of 30 days following the date on which it is
entered;

      h.    any Governmental Authority or any person, agency or entity acting or
purporting to act under governmental authority shall have taken any action
reasonably likely to result in a condemnation, seizure or appropriation or
assumption of, custody or control of, all or any substantial part of the
Property of any Seller or any of its Subsidiaries or Affiliates, or shall have
taken any action to displace the management of any Seller or any of its
Subsidiaries or Affiliates or to curtail its authority in the conduct of the
business of any Seller or any of its Subsidiaries or Affiliates, or takes any
action in the nature of enforcement to remove, limit or restrict the approval of
any Seller or any of its Subsidiaries or Affiliates as an issuer, buyer or a
seller/servicer of Loans or securities backed thereby, and such action provided
for in this subsection (i) shall not have been discontinued or stayed within
sixty (60) days;

      i.    any Seller or any of its Subsidiaries or Affiliates shall default
under, or fail to perform as requested under, or shall otherwise breach the
material terms of, in each case beyond any applicable cure period, any
instrument, agreement or contract relating to Indebtedness in excess of
$10,000,000 and such default, failure or breach shall entitle any counterparty
to declare such Indebtedness to be due and payable prior to the maturity
thereof;

      j.    in the reasonable good faith judgment of Buyer any Material Adverse
Change shall have occurred with respect to any Seller or any of its Subsidiaries
or Affiliates taken as a whole;

      k.    any Seller shall admit in writing its inability to, or intention not
to, perform any of its material Obligations;

      l.    except as expressly permitted in this Agreement, any Seller
dissolves, merges or consolidates with another entity, or sells, transfers, or
otherwise disposes of a material portion of any Seller's business or assets
unless Buyer's written consent is given;

      m.    this Agreement shall for any reason cease to create a valid, first
priority security interest or ownership interest upon transfer in any material
portion of the Purchased Assets;

                                     - 36 -

      n.    any Seller's audited annual financial statements or the notes
thereto or other opinions or conclusions stated therein shall be qualified or
limited by reference to the status of any Seller as a "going concern" or a
reference of similar import;

      o.    a Change in Control of any Seller shall have occurred which has not
been approved by Buyer or either (i) Doug Nadius ceases to be at least chief
executive officer of Holdings or (ii) Glenn Mouridy ceases to be at either
president or chief financial officer of Holdings;

      p.    Holdings or any Seller shall fail to satisfy any of its financial
covenants set forth in Section 13(g);

      q.    Any amendment or modification is made to the Underwriting Guidelines
which has not been notified to Buyer in accordance with Section 13 (u);

      r.    Buyer shall reasonably request, specifying the reasons for such
request, reasonable information, and/or written responses to such requests,
regarding the financial well-being of any Seller and such reasonable information
and/or responses shall not have been provided within five (5) Business Days of
such request;

      s.    If any Seller admits its inability or Buyer reasonably believes that
any Seller is unable to perform fully when such performance will become due any
obligation on Sellers' part to any broker, dealer, bank or other financial
institution in respect of a transaction involving securities, commodities or
other instruments not then due (regardless of whether Buyer have any right,
title or interest therein);

      t.    A material event of default on the part of the Servicer under the
Servicing Agreement shall have occurred and shall be continuing (a "Servicer
Event of Default"), provided that (i) such Servicer Event of Default shall have
a material adverse effect upon the collectibility, enforceability, value,
payment or performance of the Purchased Assets taken as a whole (a "Material
Adverse Servicer Event of Default"), and (ii) Sellers have failed to either
repurchase the affected Purchased Assets at the Repurchase Price or transfer
servicing of the affected Purchased Assets to a successor servicer reasonably
acceptable to the Buyer within sixty (60) days of either (1) its receipt of
written notice from the Buyer of a Material Adverse Servicer Event of Default or
(2) the date upon which either Seller first became aware of such Material
Adverse Servicer Event of Default;

19.   REMEDIES

      Upon the occurrence of an Event of Default, Buyer, at its option (which
option shall be deemed to have been exercised immediately upon the occurrence of
an Event of Default pursuant to Section 18(e) or (f) hereof), shall have any or
all of the following rights and remedies, which may be exercised by Buyer:

      a.    The Repurchase Date for each Transaction hereunder shall be deemed
immediately to occur (except that, if the Purchase Date for any Transaction has
not yet occurred as of the date of such exercise or deemed exercise, such
Transaction shall be deemed immediately canceled).

                                     - 37 -

      b.    Sellers' obligations hereunder to repurchase all Purchased Assets at
the Repurchase Price, together with Breakage Costs, if any, therefor on the
Repurchase Date in such Transactions shall thereupon become immediately due and
payable; all Income paid after such exercise or deemed exercise shall be
retained by Buyer and applied to the aggregate Repurchase Price and any other
amounts owing by the Sellers hereunder; the Sellers shall immediately deliver to
Buyer or its designee or cause to be delivered to Buyer or its designee, any and
all original documents, records and files relating to the Purchased Assets
subject to such Transaction then in any Sellers' possession and/or control; and
all right, title and interest in and entitlement to such Purchased Assets and
Servicing Rights thereon shall be deemed transferred to Buyer or its designee.

      Buyer may (A) sell, on or following the Business Day following the date on
which the Repurchase Price became due and payable pursuant to Section 19(b)
without notice or demand of any kind, at a public or private sale and at such
price or prices as Buyer may reasonably deem satisfactory any or all Purchased
Assets or (B) in its sole discretion elect, in lieu of selling all or a portion
of such Purchased Assets, to give Sellers credit for such Purchased Assets in an
amount equal to the Market Value of the Purchased Assets against the aggregate
unpaid Repurchase Price and any other amounts owing by Sellers hereunder.
Sellers shall remain liable to the Buyer for any amounts that remain owing to
Buyer following a sale or credit under the preceding sentence. The proceeds of
any disposition of Purchased Assets shall be applied first to the reasonable
costs and expenses incurred by Buyer in connection with or as a result of an
Event of Default; second to Breakage Costs, costs of cover and/or related
hedging transactions; third to the aggregate Repurchase Prices; and fourth to
all other Obligations.

      The parties recognize that it may not be possible to purchase or sell all
of the Purchased Assets on a particular Business Day, or in a transaction with
the same purchaser, or in the same manner because the market for such Purchased
Assets may not be liquid. In view of the nature of the Purchased Assets, the
parties agree that liquidation of a Transaction or the underlying Purchased
Assets does not require a public purchase or sale and that a good faith private
purchase or sale shall be deemed to have been made in a commercially reasonable
manner. Accordingly, Buyer may elect the time and manner of liquidating any
Purchased Asset and nothing contained herein shall obligate Buyer to liquidate
any Purchased Asset on the occurrence of an Event of Default or to liquidate all
Purchased Assets in the same manner or on the same Business Day or constitute a
waiver of any right or remedy of Buyer. Notwithstanding the foregoing, the
parties to this Agreement agree that the Transactions have been entered into in
consideration of and in reliance upon the fact that all Transactions hereunder
constitute a single business and contractual obligation and that each
Transaction has been entered into in consideration of the other Transactions.

      In addition to its rights hereunder, Buyer shall have the right to proceed
against any of Sellers' assets which may be in the possession of Buyer, any of
Buyer's Affiliates or its designee (including the Custodian), including the
right to liquidate such assets and to set off the proceeds against monies owed
by Seller to Buyer pursuant to this Agreement. Buyer may set off cash, the
proceeds of the liquidation of the Purchased Assets and Additional Purchased
Assets, any other collateral or its proceeds and all other sums or obligations
owed by Buyer to Seller hereunder against all of Sellers' Obligations to Buyer,
whether under this Agreement, under a Transaction,

                                     - 38 -

or under any other agreement between the parties, or otherwise, whether or not
such Obligations are then due, without prejudice to Buyer's right to recover any
deficiency.

      Buyer shall have the right to obtain physical possession of the Records
and all other files of Sellers relating to the Purchased Assets and all
documents relating to the Purchased Assets which are then or may thereafter come
into the possession of Sellers or any third party acting for Sellers and Sellers
shall deliver to Buyer such assignments as Buyer shall request.

      Buyer may direct all Persons servicing the Purchased Assets to take such
action with respect to the Purchased Assets as Buyer determines appropriate.

      Sellers shall be liable to Buyer for the amount of all expenses (plus
interest thereon at a rate equal to the Default Rate), and Breakage Costs and
all costs and expenses incurred within 30 days of the Event of Default in
connection with hedging or covering transactions related to the Purchased
Assets.

      Each Seller shall cause all sums received by it with respect to the
Purchased Assets to be deposited with Custodian (or such other Person as Buyer
may direct) after receipt thereof.

      Buyer shall without regard to the adequacy of the security for the
Obligations, be entitled to the appointment of a receiver by any court having
jurisdiction, without notice, to take possession of and protect, collect,
manage, liquidate, and sell the Purchased Assets or any portion thereof, collect
the payments due with respect to the Purchased Assets or any portion thereof,
and do anything that Buyer is authorized hereunder to do. Sellers shall pay all
costs and expenses incurred by Buyer in connection with the appointment and
activities of such receiver.

      Buyer may enforce its rights and remedies hereunder without prior judicial
process or hearing, and Sellers hereby expressly waive, to the extent permitted
by law, any right Sellers might otherwise have to require Buyer to enforce its
rights by judicial process. Sellers also waive, to the extent permitted by law,
any defense Sellers might otherwise have to the Obligations, arising from use of
nonjudicial process, enforcement and sale of all or any portion of the Purchased
Assets or from any other election of remedies. Sellers recognize that
nonjudicial remedies are consistent with the usages of the trade, are responsive
to commercial necessity and are the result of a bargain at arm's length.

      In addition to all the rights and remedies specifically provided herein,
Buyer shall have all other rights and remedies provided by applicable federal,
state, foreign, and local laws, whether existing at law, in equity or by statute
including, without limitation, all rights and remedies available to a
purchaser/secured party under the Uniform Commercial Code.

      Upon the occurrence of an Event of Default, Buyer shall have, except as
otherwise expressly provided in this Agreement, the right to exercise any of its
rights and/or remedies without presentment, demand, protest or further notice of
any kind other than as expressly set forth herein, all of which are hereby
expressly waived by Sellers.

      Sellers hereby authorize Buyer, at Sellers' expense, to file such
financing statement or statements relating to the Purchased Assets without
Seller's signature thereon as Buyer at its option may deem appropriate, and
appoints Buyer as Sellers' attorney-in-fact to execute any such

                                     - 39 -

financing statement or statements in Sellers' name and to perform all other acts
which Buyer deems appropriate to perfect and continue the lien and security
interest granted hereby and to protect, preserve and realize upon the Purchased
Assets, including, but not limited to, the right to endorse notes, complete
blanks in documents and execute assignments on behalf of each Seller as its
attorney-in-fact. This power of attorney is coupled with an interest and is
irrevocable without Buyer's consent.

20.   DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE

      No failure on the part of Buyer to exercise, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise by Buyer of any right, power or remedy
hereunder preclude any other or farther exercise thereof or the exercise of any
other right, power or remedy. All rights and remedies of Buyer provided for
herein are cumulative and in addition to any and all other rights and remedies
provided by law, the Program Documents and the other instruments and agreements
contemplated hereby and thereby, and are not conditional or contingent on any
attempt by Buyer to exercise any of its rights under any other related document.
Buyer may exercise at any time after the occurrence of an Event of Default one
or more remedies, as it so desires, and may thereafter at any time and from time
to time exercise any other remedy or remedies.

21.   USE OF EMPLOYEE PLAN ASSETS

      No assets of an employee benefit plan subject to any provision of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA") shall be
used by any party hereto in a Transaction.

22.   COSTS; INDEMNITY

      a.    Sellers agree to pay on demand (i) all reasonable out-of-pocket
costs and expenses of Buyer in connection with the preparation, execution,
delivery, modification and amendment of the Program Documents (including,
without limitation, (A) all collateral review and UCC search and filing fees and
expenses and (B) the reasonable fees and expenses of counsel for Buyer with
respect to advising Buyer as to its rights and responsibilities, or the
perfection, protection or preservation of rights or interests, under this
Agreement, with respect to negotiations with Sellers or with other creditors of
Sellers or any of their Subsidiaries arising out of any Default or any events or
circumstances that may arise to a Default and with respect to presenting claims
in or otherwise participating in or monitoring any bankruptcy, insolvency or
other similar proceeding involving creditors' rights generally and any
proceeding ancillary thereto) and (ii) all costs and expenses of Buyer in
connection with the enforcement of this Agreement (including any waivers),
whether in any action, suit or litigation, any bankruptcy, insolvency or other
similar proceeding affecting creditors' rights generally (including, without
limitation, the reasonable fees and expenses of counsel for Buyer) whether or
not the transactions contemplated hereby are consummated.

      b.    Sellers agree to indemnify and hold harmless Buyer and each of its
respective Affiliates and their officers, directors, employees, agents and
advisors (each, an "Indemnified Party") from and against (and will reimburse
each Indemnified Party as the same is incurred) any

                                     - 40 -

and all claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel and allocated costs of
internal counsel) that may be incurred by or asserted or awarded against any
Indemnified Party, in each case arising out of or in connection with or by
reason of (including, without limitation, in connection with any investigation,
litigation or other proceeding (whether or not such Indemnified Party is a party
thereto) relating to, resulting from or arising out of any of the Program
Documents and all other documents related thereto, any breach of a
representation or warranty of Sellers or any of their officers in this Agreement
or any other Program Document, and all actions taken pursuant thereto) (i) the
Transactions, the actual or proposed use of the proceeds of the Transactions,
this Agreement or any of the transactions contemplated thereby, including,
without limitation, any acquisition or proposed acquisition, (ii) the actual or
alleged presence of hazardous materials on any Property or any environmental
action relating in any way to any Property, or (iii) the actual or alleged
violation of any federal, state, municipal or local predatory lending laws
except to the extent such claim, damage, loss, liability or expense is found in
a final, non-appealable judgment by a court of competent jurisdiction to have
resulted from such Indemnified Party's gross negligence or willful misconduct or
is the result of a claim made by Sellers against the Indemnified Party, and
Sellers are ultimately the successful party in any resulting litigation or
arbitration. Sellers also agree not to assert any claim against Buyer or any of
its Affiliates, or any of their respective officers, directors, employees,
attorneys and agents, on any theory of liability, for special, indirect,
consequential or punitive damages arising out of or otherwise relating to the
Program Documents, the actual or proposed use of the proceeds of the
Transactions, this Agreement or any of the transactions contemplated thereby.
THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES,
WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT) OF THE INDEMNIFIED PARTIES.

      c.    Without limitation on the provisions of Section 4, if any payment of
the Repurchase Price of any Transaction is made by any Seller other than on the
then scheduled Repurchase Date thereto as a result of an acceleration of the
Repurchase Date pursuant to Section 19 or for any other reason, such Seller
shall, except as otherwise provided in Sections 15(c) and 24, upon demand by
Buyer, pay to Buyer any Breakage Costs incurred as of a result of such payment.

      d.    If Sellers fail to pay when due any costs, expenses or other amounts
payable by it under this Agreement, including, without limitation, reasonable
fees and expenses of counsel and indemnities, such amount may be paid on behalf
of Sellers by Buyer, in its sole discretion.

      e.    Without prejudice to the survival of any other agreement of Sellers
hereunder, the easements and obligations of Sellers contained in this Section
shall survive the payment in full of the Repurchase Price and all other amounts
payable hereunder and delivery of the Purchased Assets by Buyer against full
payment therefor.

23.   WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS

      Sellers hereby expressly waive, to the fullest extent permitted by law,
every statute of limitation on a deficiency judgment, any reduction in the
proceeds of any Purchased Assets as a result of restrictions upon Buyer or
Custodian contained in the Program Documents or any other

                                     - 41 -

instrument delivered in connection therewith, and any right that it may have to
direct the order in which any of the Purchased Assets shall be disposed of in
the event of any disposition pursuant hereto.

24.   REIMBURSEMENT

      All sums reasonably expended by Buyer in connection with the exercise of
any right or remedy provided for herein shall be and remain Sellers' obligation.
Sellers agree to pay, with interest at the Default Rate to the extent that an
Event of Default has occurred, the reasonable out-of-pocket expenses and
reasonable attorneys' fees incurred by Buyer and/or Custodian in connection with
the preparation, enforcement (including any waivers), administration and
amendments of the Program Documents (regardless of whether a Transaction is
entered into hereunder), the taking of any action, including legal action,
required or permitted to be taken by Buyer (without duplication to Buyer) and/or
Custodian pursuant thereto, any "due diligence" or loan agent reviews conducted
by Buyer or on its behalf or any refinancing or restructuring in the nature of a
"workout". If Buyer determines that, due to the introduction of, any change in,
or the compliance by Buyer with (i) any eurocurrency reserve requirement or (ii)
the interpretation of any law, regulation or any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of
law), there shall be an increase in the cost to Buyer in engaging in the present
or any future Transactions, then Sellers agree to pay to Buyer, from time to
time, upon demand by Buyer (with a copy to Custodian) the actual cost of
additional amounts as specified by Buyer to compensate Buyer for such increased
costs. Notwithstanding any other provisions in this Agreement, in the event of
any such change in the eurocurrency reserve requirement or the interpretation of
any law, regulation or any guideline or request from any central bank or other
Governmental Authority, Sellers will have the right to terminate all
Transactions then outstanding as of a date selected by Sellers, which date shall
be prior to the applicable Repurchase Date and which date shall thereafter for
all purposes hereof, be deemed to be the Repurchase Date. In addition, Buyer
shall promptly notify Sellers if any events in clause (i) or (ii) of this
Section 24 occur.

25.   FURTHER ASSURANCES

      Sellers agree to do such further acts and things and to execute and
deliver to Buyer such additional assignments, acknowledgments, agreements,
powers and instruments as are reasonably required by Buyer to carry into effect
the intent and purposes of this Agreement, to perfect the interests of Buyer in
the Purchased Assets or to better assure and confirm unto Buyer its rights,
powers and remedies hereunder.

26.   JOINT AND SEVERAL LIABILITY

      The Sellers hereby acknowledge and agree that they are jointly and
severally liable to the Buyer for all representations, warranties, covenants,
obligations and liabilities of each of the Sellers hereunder. The Sellers hereby
further acknowledge and agree that (a) any Default, Event of Default or breach
of a representation, warranty or covenant by any Seller under this Agreement is
hereby considered a Default, Event of Default or breach by each Seller, and (b)
the Buyer shall have no obligation to proceed against one Seller before
proceeding against the other Seller. The Sellers hereby waive any defense to
their obligations under this Agreement, based

                                     - 42 -

upon or arising out of the disability or other defense or cessation of liability
of one Seller versus the other or of any other Person, and (c) waive any right
of subrogation or ability to proceed against any Person. A Seller's subrogation
claim arising from payments to Buyer shall constitute a capital investment in
another Seller (1) subordinated to any claims of Buyer, and (2) equal to a
ratable share of the equity interests in such Seller.

27.   ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION

      This Agreement supersedes and integrates all previous negotiations,
contracts, term sheets, agreements and understandings between the parties
relating to a sale and repurchase of Purchased Assets and Additional Purchased
Assets thereto, and it, together with the other Program Documents, and the other
documents delivered pursuant hereto or thereto, contains the entire final
agreement of the parties. No prior negotiation, agreement, understanding or
prior contract shall have any validity hereafter.

28.   TERMINATION

      This Agreement shall remain in effect until the earlier of (i) the date
which is 364 days after the Effective Date, or (ii) at Buyer's option upon the
occurrence of an Event of Default (such date, the "Termination Date"). However,
no such termination shall affect the related Sellers' outstanding obligations to
Buyer at the time of such termination. Each Seller's obligations to indemnify
Buyer pursuant to this Agreement and the other Program Documents shall survive
the termination hereof. If a Seller requests an extension of the Termination
Date with respect to (i) above and Buyer fails to respond to such request, such
failure shall be deemed a rejection of such request.

29.   ASSIGNMENT

      (a)   The Program Documents are not assignable by the Sellers. Buyer may
from time to time assign all or a portion of its rights and obligations under
this Agreement and the Program Documents; provided, however, Buyer shall
maintain, for review by Sellers upon written request, a register of assignees
and a copy of an executed assignment and acceptance by Buyer and assignee
("Assignment and Acceptance"), specifying the percentage or portion of such
rights and obligations assigned. Upon such assignment, (a) such assignee shall
be a party hereto and to each Program Document to the extent of the percentage
or portion set forth in the Assignment and Acceptance, and shall succeed to the
applicable rights and obligations of Buyer hereunder, and (b) Buyer shall, to
the extent that such rights and obligations have been so assigned by it to
either (i) an Affiliate of Buyer which assumes the obligations of Buyer or (ii)
another Person approved by Sellers (such approval not to be unreasonably
withheld, delayed or conditioned) which assumes the obligations of Buyer, be
released from its obligations hereunder accruing thereafter and under the
Program Documents. Unless otherwise stated in the Assignment and Acceptance,
Sellers shall continue to take directions solely from Buyer unless otherwise
notified by Buyer in writing. Buyer may distribute to any prospective assignee
any document or other information delivered to Buyer by Sellers. Notwithstanding
any assignment by Buyer pursuant to this Section 29, Buyer shall remain liable
as to the Transactions.

                                     - 43 -

      (b)   The Buyer may, in accordance with applicable law, at any time sell
to one or more entities ("Participants") participating interests in any
Transaction, its right to purchase Loans, or any other interest of the Buyer
hereunder and under the other Program Documents. In the event of any such sale
by the Buyer of participating interests to a Participant, the Buyer's
obligations under this Agreement to the Sellers shall remain unchanged, the
Buyer shall remain solely responsible for the performance thereof, the Buyer
shall remain the owner of the Purchased Assets for all purposes under this
Agreement and the other Program Documents, and the Sellers shall continue to
deal solely and directly with the Buyer in connection with the Buyer's rights
and obligations under this Agreement and the other Program Documents. The
Sellers agree that if amounts outstanding under this Agreement are due or
unpaid, or shall have been declared or shall have become due and payable upon
the occurrence of an Event of Default, each Participant shall be deemed to have
the right of set-off in respect of its participating interest in amounts owing
under this Agreement to the same extent as if the amount of its participating
interest were owing directly to it as a Buyer under this Agreement; provided,
that such Participant shall only be entitled to such right of set-off if it
shall have agreed in the agreement pursuant to which it shall have acquired its
participating interest to share with the Buyer the proceeds thereof. The Buyer
also agrees that each Participant shall be entitled to the benefits of Section
22 with respect to its participation; provided, that the Buyer and all
Participants shall be entitled to receive no greater amount in the aggregate
pursuant to such Sections than the Buyer would have been entitled to receive had
no such transfer occurred.

      (c)   The Buyer may furnish any information concerning the Sellers or any
of their Subsidiaries in the possession of Buyer from time to time to assignees
and Participants (including prospective assignees and Participants) only after
notifying the Sellers in writing and securing signed confidentiality statements
and only for the sole purpose of evaluating participations and for no other
purpose.

      (d)   The Sellers agree to cooperate with the Buyer in connection with any
such assignment and/or participation, to execute and deliver such replacement
notes, and to enter into such restatements of, and amendments, supplements and
other modifications to, this Agreement and the other Program Documents in order
to give effect to such assignment and/or participation. The Sellers further
agree to furnish to any Participant identified by the Buyer to the Sellers
copies of all reports and certificates to be delivered by the Sellers to the
Buyer hereunder, as and when delivered to the Buyer.

30.   AMENDMENTS, ETC.

      No amendment or waiver of any provision of this Agreement nor any consent
to any failure to comply herewith or therewith shall in any event be effective
unless the same shall be in writing and signed by each Seller and Buyer, and
then such amendment, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

31.   SEVERABILITY

      If any provision of any Program Document is declared invalid by any court
of competent jurisdiction, such invalidity shall not affect any other provision
of the Program Documents, and each Program Document shall be enforced to the
fullest extent permitted by law.

                                     - 44 -

32.   BINDING EFFECT; GOVERNING LAW

      This Agreement shall be binding and inure to the benefit of the parties
hereto and their respective successors and permitted assigns except that no
Seller may assign or transfer any of their respective rights or obligations
under this Agreement or any other Program Document without the prior written
consent of the Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND
GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT OF SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

33.   CONSENT TO JURISDICTION

      SELLERS HEREBY WAIVE TRIAL BY JURY. SELLERS HEREBY IRREVOCABLY CONSENT TO
THE NON-EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT
OF OR RELATING TO THE PROGRAM DOCUMENTS IN ANY ACTION OR PROCEEDING. SELLERS
HEREBY SUBMIT TO, AND WAIVE ANY OBJECTION SELLERS MAY HAVE TO, NON-EXCLUSIVE
PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT
TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS.

34.   SINGLE AGREEMENT

      Each Seller and Buyer acknowledge that, and have entered hereinto and will
enter into each Transaction hereunder in consideration of and in reliance upon
the fact that, all Transactions hereunder constitute a single business and
contractual relationship and have been made in consideration of each other.
Accordingly, each Seller and Buyer each agree (i) to perform all of its
obligations in respect of each Transaction hereunder, and that a default in the
performance of any such obligations shall constitute a default by it in respect
of all Transactions hereunder, and (ii) that payments, deliveries and other
transfers made by any of them in respect of any Transaction shall be deemed to
have been made in consideration of payments, deliveries and other transfer in
respect of any other Transaction hereunder, and the obligations to make any such
payments, deliveries and other transfers may be applied against each other and
netted.

35.   INTENT

      Sellers and Buyer recognize that each Transaction is a "repurchase
agreement" as that term is defined in Section 101 of Title 11 of the United
States Code, as amended ("USC") and a "securities contract" as that term is
defined in Section 741 of Title 11 of the USC.

      It is understood that Buyer's right to liquidate the Purchased Assets
delivered to it in connection with the Transactions hereunder, accelerate or
terminate this Agreement or otherwise exercise any other remedies pursuant to
Section 19 hereof is a contractual right to liquidate, accelerate or terminate
such Transaction as described in Sections 555 and 559 of Title 11 of the USC.

                                     - 45 -

36.   NOTICES AND OTHER COMMUNICATIONS

      Except as provided herein, any notice required or permitted by this
Agreement shall be in writing and shall be effective and deemed delivered only
when received by the party to which it is sent; provided, however, that a
facsimile transmission shall be deemed to be received when transmitted so long
as the transmitting machine has provided an electronic confirmation (without
error message) of such transmission. Any such notice shall be sent to a party at
the address or facsimile transmission number set forth below:

if to Holdings:

            MortgageIT Holdings, Inc.
            33 Maiden Lane
            6th Floor
            New York, New York  10038
            Attention:   Michael Zigrossi
            Telephone:   (212) 651-7774
            Facsimile:   (212) 651-4674

if to MIT:

            MortgageIT, Inc.
            33 Maiden Lane
            6th Floor
            New York, New York  10038
            Attention:   Michael Zigrossi
            Telephone:   (212) 651-7774
            Facsimile:   (212) 651-4674

if to MHL:

            MHL Funding Corp.
            33 Maiden Lane
            6th Floor
            New York, New York  10038
            Attention:   Michael Zigrossi
            Telephone:   (212) 651-7774
            Facsimile:   (212) 651-4674

                                     - 46 -

if to Buyer or Agent:

            Bank of America, N.A.
            214 North Tryon Street
            NC1-027-19-01
            Charlotte, North Carolina 28255
            Attention: Christopher Young
            Telephone: (704) 388-8403
            Facsimile: (704) 388-9169
            Email: Christopher.g.young@bankofamerica.com

      and, with respect to Transaction Notices, a copy to:

            Bank of America, N.A.
            214 North Tryon Street
            NC1-027-19-01
            Charlotte, North Carolina 28255
            Attention: Cameron Buchanan
            Telephone: (704) 386-3614
            Facsimile: (704) 683-9235
            Email: rmbs@bankofamerica.com

as such address or number may be changed by like notice.

      A notice sent to one Seller shall be deemed to be sent to the other
Seller. Furthermore, the Buyer is not responsible and shall have no liability
with respect to the allocation of funds between the Sellers. In the event that
the Buyer pays the incorrect Seller with respect to a Transaction, such Seller
(and not the Buyer) shall be liable to the other Seller for any funds not
dispersed to the other Seller provided such funds have not been returned to the
Buyer.

37.   CONFIDENTIALITY

      This Agreement and its terms, provisions, supplements and amendments, and
transactions and notices hereunder, are proprietary to Buyer and Agent and shall
be held by each Seller (and each Seller shall cause Servicer to hold it) in
strict confidence and shall not be disclosed to any third party without the
consent of the Buyer except for (i) disclosure to a Seller's direct and indirect
parent companies, attorneys, agents or accountants, provided that such attorneys
or accountants likewise agree to be bound by this covenant of confidentiality or
(ii) upon prior written notice to Buyer, disclosure required by law, rule,
regulation or order of a court or other regulatory body or (iii) with prior
written notice to Buyer, to any approved Hedge Counterparty to the extent
necessary to obtain any Hedge Instrument hereunder or (iv) with prior written
notice to Buyer, any required Securities and Exchange Commission or state
securities' law disclosures or filings, which shall not include the Pricing Side
Letter unless otherwise agreed by Buyer in writing.

                                     - 47 -

38.   SET-OFF

      In addition to any rights and remedies of the Buyer provided by this
Agreement and by law, the Buyer shall have the right, without prior notice to
any Seller, any such notice being expressly waived by such Seller to the extent
permitted by applicable law, upon any amount becoming due and payable by any
Seller hereunder (whether at the stated maturity, by acceleration or otherwise)
to set-off and appropriate and apply against such amount any and all Property
and deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by the Buyer or any Affiliate thereof to or
for the credit or the account of the Sellers or any of their Affiliates. The
Buyer may set-off cash, the proceeds of the liquidation of any Purchased Items
and all other sums or obligations owed by the Buyer or its Affiliates to Sellers
or their Affiliates against all of Sellers' and their Affiliates' obligations to
the Buyer or its Affiliates, whether under this Agreement or under any other
agreement between the parties or between any Seller or any Affiliate of such
Seller and any Affiliate of the Buyer, or otherwise, whether or not such
obligations are then due, without prejudice to the Buyer's or its Affiliate's
right to recover any deficiency. The Buyer agrees promptly to notify the Sellers
after any such set-off and application made by the Buyer; provided that the
failure to give such notice shall not affect the validity of such set-off and
application.

39.   COUNTERPARTS

      This Agreement and each other Program Document may be executed in
counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement.

40.   DUE DILIGENCE

      Upon reasonable advance notice and during regular business hours, Sellers
agree to promptly provide, and to cause Servicer to provide, Buyer and its
agents with access to, copies of and extracts from any and all documents,
records, agreements, instruments or information (including, without limitation,
any of the foregoing in computer data banks and computer software systems)
relating to its financial condition, the performance of its obligations under
the Program Documents, the documents contained in the Servicing File or the
Purchased Assets in the possession, or under the control, of Sellers or
Servicer. In addition, upon reasonable advance notice and during regular
business hours, Buyers have the right to perform continuing due diligence
reviews of (x) Sellers, Servicer and their respective directors, officers and
employees, including, without limitation, their respective financial condition
and performance of their obligations under the Program Documents, and (y) the
Servicing File and the Purchased Assets. Sellers shall also make available to
Buyer a knowledgeable financial or accounting officer for the purpose of
answering questions respecting the Purchased Assets. Without limiting the
generality of the foregoing, Sellers acknowledge that Buyer shall enter into
transactions with Sellers based solely upon the information provided by Sellers
to Buyer and the representations, warranties and covenants contained herein, and
that Buyer, at its option, has the right at any time to conduct a partial or
complete due diligence review on some or all of the Purchased Assets, including,
without limitation, ordering new credit reports, new appraisals on the related
Mortgaged

                                     - 48 -

Properties and otherwise re-generating the information used to originate such
Purchased Assets. Sellers shall pay Buyers' out-of-pocket costs and expenses
incurred by Buyer in connection with any due diligence hereunder which shall not
exceed $20,000 per annum.

41.   UNCOMMITTED FACILITY

      This facility is an uncommitted facility and the Buyer is under no
obligation to enter into any Transaction.

                            [Signature Page Follows]

                                     - 49 -

            IN WITNESS WHEREOF, Sellers and Buyer have caused their names to be
signed to this Master Repurchase Agreement by their respective officers
thereunto duly authorized as of the date first above written.

                                  MORTGAGEIT HOLDINGS, INC.,
                                  as Seller, jointly and severally

                                  By: /s/ Glenn J. Mouridy
                                      --------------------
                                  Name: Glenn J. Mouridy
                                        ----------------
                                  Title: President and Chief Financial Officer
                                         -------------------------------------

                                  MORTGAGEIT INC.,
                                  as Seller, jointly and severally
                                  By: /s/ Robert A. Gula
                                      ------------------
                                  Name: Robert A. Gula
                                        --------------
                                  Title: Chief Financial Officer
                                         -----------------------

                                  MHL FUNDING CORP.,
                                  as Seller, jointly and severally

                                  By: /s/ Donald Epstein
                                      ------------------
                                  Name: Donald Epstein
                                        --------------
                                  Title: Treasurer
                                         ---------

                                  BANK OF AMERICA, N.A.,
                                  as Buyer and Agent, as applicable

                                  By: /s/ Christopher G. Young
                                      ------------------------
                                  Name: Christopher G. Young
                                        --------------------
                                  Title: Vice President
                                         --------------

                                     - 51 -

                                     ANNEX I

                              BUYER ACTING AS AGENT

      This Annex I forms a part of the Master Repurchase Agreement dated as of
May 25, 2006 (the "Agreement") between Bank of America, N.A., MortgageIT
Holdings, Inc., MortgageIT, Inc. and MHL Funding Corp. This Annex I sets forth
the terms and conditions governing all transactions in which a party selling
assets or buying assets, as the case may be ("Agent"), in a Transaction is
acting as agent for one or more third parties (each, a "Principal"). Capitalized
terms used but not defined in this Annex I shall have the meanings ascribed to
them in the Agreement.

1.    Additional Representations. Agent hereby makes the following
      representations, which shall continue during the term of any Transaction:
      Principal has duly authorized Agent to execute and deliver the Agreement
      on its behalf, has the power to so authorize Agent and to enter into the
      Transactions contemplated by the Agreement and to perform the obligations
      of Buyer, under such Transactions, and has taken all necessary action to
      authorize such execution and delivery by Agent and such performance by it.

2.    Identification of Principals. Agent agrees (a) to provide the other party,
      prior to the date on which the parties agree to enter into any Transaction
      under the Agreement, with a written list of Principals for which it
      intends to act as Agent (which list may be amended in writing from time to
      time with the consent of the other party) and (b) to provide the other
      party, before the close of business on the next business day after orally
      agreeing to enter into a Transaction, with notice of the specific
      Principal or Principals for whom it is acting in connection with such
      Transaction. If (i) Agent fails to identify such Principal or Principals
      prior to the close of business on such next business day or (ii) the other
      party shall determine in its sole discretion any Principal or Principals
      identified by Agent are not acceptable to it, the other party may reject
      and rescind any Transaction with such Principal or Principals, return to
      Agent any Purchased Assets or portion of the Purchase Price, as the case
      may be, previously transferred to the other party and refuse any further
      performance under such Transaction, and Agent shall immediately return to
      the other party any portion of the Purchase Price or Purchased Assets, as
      the case may be, previously transferred to Agent in connection with such
      Transaction; provided, however, that (A) the other party shall promptly
      (and in any event within one business day) notify Agent of its
      determination to reject and rescind such Transaction and (B) to the extent
      that any performance was rendered by any party under any Transaction
      rejected by the other party and such party shall remain entitled to any
      Price Differential or other amounts that would have been payable to it
      with respect to such performance if such Transaction had not been
      rejected. The other party acknowledges that Agent shall not have any
      obligation to provide it with confidential information regarding the
      financial status of its Principals; Agent agrees, however, that it will
      assist the other party in obtaining from Agent's Principals such
      information regarding the financial status of such Principals as the other
      party may reasonably request.

                                   Annex I - 1

3.    Limitation of Agent's Liability. The parties expressly acknowledge that if
      the representations of Agent under the Agreement, including this Annex I,
      are true and correct in all material respects during the term of any
      Transaction and Agent otherwise complies with the provisions of this Annex
      I, then (a) Agent's obligations under the Agreement shall not include a
      guarantee of performance by its Principal or Principals; provided that
      Agent shall remain liable for performance pursuant to Section 10 of the
      Agreement, and (b) the other party's remedies shall not include a right of
      setoff in respect of rights or obligations, if any, of Agent arising in
      other transactions in which Agent is acting as principal.

4.    Multiple Principals.

      (a)   In the event that Agent proposes to act for more than one Principal
            hereunder, Agent and the other party shall elect whether (i) to
            treat Transactions under the Agreement as transactions entered into
            on behalf of separate Principals or (ii) to aggregate such
            Transactions as if they were transactions by a single Principal.
            Failure to make such an election in writing shall be deemed an
            election to treat Transactions under the Agreement as transactions
            on behalf of a single Principal.

      (b)   In the event that Agent and the other party elect (or are deemed to
            elect) to treat Transactions under the Agreement as transactions on
            behalf of separate Principals, the parties agree that (i) Agent will
            provide the other party, together with the notice described in
            Section 2(b) of this Annex I, notice specifying the portion of each
            Transaction allocable to the account of each of the Principals for
            which it is acting (to the extent that any such Transaction is
            allocable to the account of more than one Principal); (ii) the
            portion of any individual Transaction allocable to each Principal
            shall be deemed a separate Transaction under the Agreement; (iii)
            the margin maintenance obligations of Sellers under Section 6(a) of
            the Agreement shall be determined on a Transaction-by-Transaction
            basis (unless the parties agree to determine such obligations on a
            Principal-by-Principal basis); and (iv) Buyer's remedies under the
            Agreement upon the occurrence of an Event of Default shall be
            determined as if Agent had entered into a separate Agreement with
            the other party on behalf of each of its Principals.

      (c)   In the event that Agent and the other party elect to treat
            Transactions under the Agreement as if they were transactions by a
            single Principal, the parties agree that (i) Agent's notice under
            Section 2(b) of this Annex I need only identify the names of its
            Principals but not the portion of each Transaction allocable to each
            Principal's account; (ii) the margin maintenance obligations of
            Sellers under Section 6(a) of the Agreement shall, subject to any
            greater requirement imposed by applicable law, be determined on an
            aggregate basis for all Transactions entered into by Agent on behalf
            of any Principal; and (iii) Buyer's remedies upon the occurrence of
            an Event of Default shall be determined as if all Principals were a
            single Buyer.

                                   Annex I - 2

      (d)   Notwithstanding any other provision of the Agreement (including,
            without limitation, this Annex I), the parties agree that any
            Transactions by Agent on behalf of an employee benefit plan under
            ERISA shall be treated as Transactions on behalf of separate
            Principals in accordance with Section 4(b) of this Annex I (and all
            margin maintenance obligations of the parties shall be determined on
            a Transaction-by-Transaction basis).

5.    Interpretation of Terms. All references to "Buyer" in the Agreement shall,
      subject to the provisions of this Annex I (including, among other
      provisions, the limitations on Agent's liability in Section 3 of this
      Annex I), be construed to reflect that (i) each Principal shall have, in
      connection with any Transaction or Transactions entered into by Agent on
      its behalf, the rights, responsibilities, privileges and obligations of a
      "Buyer" directly entering into such Transaction or Transactions with the
      other party under the Agreement, and (ii) Agent's Principal or Principals
      have designated Agent as their sole agent for performance of Buyer's
      obligations to Sellers, and for receipt of performance by Sellers of their
      obligations to Buyer, in connection with any Transaction or Transactions
      under the Agreement (including, among other things, as Agent for each
      Principal in connection with transfers of Securities, cash or other
      property and as agent for giving and receiving all notices under the
      Agreement). Both Agent and its Principal or Principals shall be deemed
      "parties" to the Agreement and all references to a "party" or "either
      party" in the Agreement shall be deemed revised accordingly.

                                   Annex I - 3

                                   EXHIBIT A-1

                              MONTHLY CERTIFICATION

      I, _________________________________________ the ______________________ of
[MortgageIT Holdings, Inc./MortgageIT, Inc./MHL Funding Corp.] (the "Company"),
do hereby certify that:

            (i)   the Company is in compliance with all provisions and terms of
                  the Master Repurchase Agreement, dated as of May 25, 2006 (the
                  "Repurchase Agreement"), by and among Bank of America, N.A.,
                  MortgageIT Holdings, Inc., MortgageIT, Inc. and MHL Funding
                  Corp;

            (ii)  there have not been any amendments or modifications to the
                  Underwriting Guidelines that have not been notified to the
                  Buyer;

            (iii) all additional amendments and modifications to the
                  Underwriting Guidelines since the date of the most recent
                  disclosure to the Buyer of any modification to the
                  Underwriting Guidelines are set forth on the "grid-line"
                  delivered in connection herewith;

            (iv)  the [consolidated (MHL only)] Adjusted Tangible Net Worth of
                  the company is not less than $[10,000,000 (MIT)][250,000
                  (MHL)];

            (v)   Schedule 1 hereto sets out a true and correct list of all
                  Loans purchased by Buyer and held by Custodian pending
                  repurchase; and

            (vi)  Schedule 2 hereto sets out a true and correct list of all
                  Indebtedness (other than Indebtedness created pursuant to the
                  Repurchase Agreement) of the Company existing on the date
                  hereof.

      Capitalized terms used but not defined herein shall have the meanings
assigned thereto in the Repurchase Agreement.

                                    A - 1 - 1

      IN WITNESS WHEREOF, I have signed this certificate and affixed the seal of
the Company.

Date:________________, 200__

                                      ___________________________________
                                      Name:
                                      Title:

[SEAL]

      I, ________________________, ___________________ of the Company, do hereby
certify that _____________________ is the duly elected or appointed, qualified
and acting _____________of the Company, and the signature set forth above is the
genuine signature of such officer on the date hereof.

                                      ___________________________________
                                      Name:
                                      Title:

                                    A - 1 - 2

                       SCHEDULE 1 TO MONTHLY CERTIFICATION

                                      LOANS

                                    A - 1 - 3

                       SCHEDULE 2 TO MONTHLY CERTIFICATION

                                  INDEBTEDNESS

                                    A - 1 - 4

                                   EXHIBIT A-2

                             QUARTERLY CERTIFICATION

      I, ________________________________________ the _______________________ of
MortgageIT Holdings, Inc. (the "Company"), do hereby certify that:

            (i)   the Company is in compliance with all provisions and terms of
                  the Master Repurchase Agreement, dated as of May 25, 2006 (the
                  "Repurchase Agreement"), by and among Bank of America, N.A.,
                  MortgageIT Holdings, Inc., MortgageIT Inc. and MHL Funding
                  Corp;

            (ii)  the Company's consolidated Adjusted Tangible Net Worth is not
                  less than $250,000,000;

            (iii) the Company's consolidated Leverage Ratio is not greater than
                  12:1;

            (iv)  the Company has Liquidity on a consolidated basis of at least
                  $20,000,000; and

            (v)   the Company's consolidated Net Income for the previous
                  calendar quarter was at least $1.00.

      Capitalized terms used but not defined herein shall have the meanings
assigned thereto in the Repurchase Agreement.

                                    A - 2 - 1

      IN WITNESS WHEREOF, I have signed this certificate and affixed the seal of
the Company.

Date:________________, 200__

                                      ___________________________________
                                      Name:
                                      Title:

[SEAL]

      I, ________________________, ___________________ of the Company, do hereby
certify that _____________________ is the duly elected or appointed, qualified
and acting _____________of the Company, and the signature set forth above is the
genuine signature of such officer on the date hereof.

                                      ___________________________________
                                      Name:
                                      Title:

                                    A - 2 - 2

                                    EXHIBIT B

                                WIRE INSTRUCTIONS

Bank of America, NA
Acct: CORP CREDIT SERVICES
ABA: 111000012
Account #: 1292000883
Ref: REPO- MortgageIT
Attn: Ngozi Ebete

                                      B - 1

                                    EXHIBIT C

                                    LOAN DATA

Daily Funding                              MTM Data Type
Required Fields                            Required Fields
--------------------------------------------------------------------------------
1st Int Rate Adj Date                      # of Bedroom
Amortization Term                          1st Int Rate Adj Date
Appraisal Type                             1st P&I Adj Date
Appraisal Value                            1st Time Home Buyer?
Borr.FICO                                  Amortization Term
Borr.First Name                            Appraisal Type
Borr.Last Name                             Appraisal Value
Cashout?                                   Assumable?
CLTV                                       AUS
Coborr.FICO                                Bankruptcy?
Coborr.First Name                          Borr. Front Ratio
Coborr.Last Name                           Borr.DTI
Current Loan Balance                       Borr.Ethnicity
Current note rate                          Borr.FICO
First Payment Due Date                     Borr.First Name
Index Type                                 Borr.Gender
Initial Rate Cap                           Borr.Initial
Int Rate Change Period                     Borr.Last Name
IO Flag & IO Term                          Borr.Race
Lien Position                              Borr.Self Empl?
Loan Amount                                Borr.SSN
Loan Cut-off Date / Tape Date              Borr.Suffix
Loan Number                                Borrower B-day
Lookback Period                            Borrower Mo.Income
LTV                                        Broker/Branch Type
Margin                                     Buydown?
Margin                                     Cashout?
Maturity Date                              CLTV
MI %                                       Coborr. Front Ratio
MI Cert#                                   Coborr.DTI
MI Company                                 Coborr.Ethnicity
Monthly P&I Pmt.                           Coborr.FICO
Next Due Date                              Coborr.First Name
Next Int Rate Adj Date                     Coborr.Gender
Next P&I Adj Date                          Coborr.Initial
Note Origination Date                      Coborr.Last Name
P&I Change Period                          Coborr.Race
Periodic Rate Cap                          Coborr.SSN
Prepayment Penalty Term                    Coborrower Mo.Income

                                      C - 1

Prepayment Penalty%                        Corrower B-day
Prepayment Penalty?                        Credit Grade
Prime Rate                                 Current Loan Balance
Principal Balance                          Current note rate
Program Type                               Date Funded
Property Address                           Date Locked
Property City                              Date Of Bankruptcy
Property County                            Date Of Forclosure
Property State                             Doc Description
Property Zip Code                          Doc Type
Rounding Factor                            Docs Returned
Rounding Method                            Eligible Rents
Silent Seconds                             Equity/Construct Amt
Term                                       First Payment Due Date
Total Monthly Pmt.                         Foreign National?
Total Payment                              Impounds?
                                           Index Type
                                           Initial Rate Cap
                                           Initial Rate Floor
                                           Int Rate Change Period
                                           IO Flag & IO Term
                                           Legal Package Sent
                                           Lien Position
                                           Life cap
                                           Life Ceiling
                                           Life Floor
                                           Loan Amount
                                           Loan Cut-off Date / Tape Date
                                           Loan Number
                                           Loan Purpose
                                           Loan Type
                                           Lookback Period
                                           LTV
                                           Mailing Address
                                           Margin
                                           Maturity Date
                                           Max.Neg.Amortization
                                           MERS MIN#
                                           MI %
                                           MI Cert#
                                           MI Company
                                           Monthly P&I Pmt.
                                           Montly Debt Exp.
                                           Montly Housing Exp.
                                           Negative Amortization

                                      C - 2

                                           Next Due Date
                                           Next Int Rate Adj Date
                                           Next P&I Adj Date
                                           Note Origination Date
                                           Number of Units
                                           Office
                                           Open Bankruptcy?
                                           Orig.Note Rate
                                           Owner Occupied
                                           P&I Change Period
                                           Periodic Rate Cap
                                           Periodic Rate Floor
                                           Prepayment Penalty Term
                                           Prepayment Penalty%
                                           Prepayment Penalty?
                                           Prime Rate
                                           Principal Balance
                                           Prior Bankruptcy?
                                           Prior Forclosure?
                                           Program Code
                                           Program Type
                                           Property Address
                                           Property City
                                           Property County
                                           Property State
                                           Property Type
                                           Property Zip Code
                                           Purchase Price
                                           Rounding Factor
                                           Rounding Method
                                           Section 32?
                                           Serv.Fee
                                           Servicer
                                           Shipping Received
                                           Silent Seconds
                                           Submitted Grade
                                           Subordinate Amt
                                           T&I Constant
                                           Term
                                           Total Monthly Pmt.
                                           Total Payment
                                           Transfer Date
                                           Warehouse Lender Name
                                           Year Built

                                      C - 3

                                    EXHIBIT D

                               APPROVED PURCHASERS

Bank of America
Bear Stearns
Chase Manhattan Mortgage Corp (CMMC)
Chase Home Finance
CitiMortgage, Inc.
Citigroup
Credit Suisse First Boston LLC
Countrywide Home Loans (CHL)
Countrywide Securities Corp.
Deutsche Bank Securities Inc.
DB Structured Products, Inc.
Deutsche Bank
EMC Mortgage Corporation (Bear Stearns)
Franklin Credit Management Corp.
GMAC Mortgage Corp
Goldman Sachs Mortgage Company
Greenpoint Mortgage
Greenwich Capital Financial Products, Inc.
IndyMac Bank, FSB
JPMorgan Chase Bank
Lehman Brothers, Inc.
Merrill Lynch Credit Corp. (MLCC)
Morgan Stanley Mortgage Capital Inc.
National City Mortgage Co.
Nomura Credit & Capital, Inc.
Residential Funding Corporation (GMAC-RFC)
The Winter Group
Truman Capital Advisors
UBS Warburg Real Estate Securities Inc.
Wachovia Bank
Washington Mutual Mortgage Securities Corp.
Washington Mutual Bank, FA
Wells Fargo Funding, Inc.
Wells Fargo Home Mortgage

                                      D - 1

                                    EXHIBIT E

              REPRESENTATIONS AND WARRANTIES WITH RESPECT TO LOANS

      The Sellers represent and warrant to the Buyer that, with respect to each
Loan sold in a Transaction hereunder, as of the related Purchase Date and the
related Repurchase Date and on each date that the Loans are subject to a
Transaction:

      (a)   Loans as Described. The information set forth in the Loan Schedule
with respect to the Loan is complete, true and correct.

      (b)   Payments Current. Other than Fifty-Nine Day Delinquent Loans which
are subject to the sub-limits set forth in the Pricing Side Letter (i) all
payments required to be made up to the related Purchase Date for the Loan under
the terms of the Note have been made and credited and (ii) no payment required
under the Loan has been thirty (30) days or more delinquent since origination of
such Loan.

      (c)   No Outstanding Charges. There are no defaults in complying with the
terms of the Mortgage securing the Loan, and all taxes, governmental
assessments, insurance premiums, water, sewer and municipal charges, leasehold
payments or ground rents which previously became due and owing have been paid,
or an escrow of funds has been established in an amount sufficient to pay for
every such item which remains unpaid and which has been assessed but is not yet
due and payable. No Seller has advanced funds, or induced, solicited or
knowingly received any advance of funds by a party other than the Borrower,
directly or indirectly, for the payment of any amount required under the Loan,
except for interest accruing from the date of the Note or date of disbursement
of the proceeds of the Loan, whichever is more recent, to the day which precedes
by one month the due date of the first installment of principal and interest
thereunder.

      (d)   Original Terms Unmodified. The terms of the Note and Mortgage have
not been impaired, waived, altered or modified in any respect, from the date of
origination; except by a written instrument which has been recorded, if
necessary to protect the interests of the Buyer, and which has been delivered to
the Custodian and the terms of which are reflected in the Loan Schedule. The
substance of any such waiver, alteration or modification has been approved by
the title insurer, to the extent required by the title insurance policy, and its
terms are reflected on the Loan Schedule. No Borrower in respect of the Loan has
been released, in whole or in part, except in connection with an assumption
agreement approved by the title insurer, to the extent required by such policy,
and which assumption agreement is part of the Loan File delivered to the
Custodian and the terms of which are reflected in the Loan Schedule. Except with
respect to MERS Designated Mortgage Loans, neither the Note nor the Mortgage
have any marks or notations indicating that they are currently pledged, assigned
or otherwise conveyed to any Person other than Buyer.

      (e)   No Defenses. The Loan is not subject to any right of rescission,
setoff, counterclaim or defense, including without limitation the defense of
usury, nor will the operation of any of the terms of the Note or the Mortgage,
or the exercise of any right thereunder, render

                                      E - 1

either the Note or the Mortgage unenforceable, in whole or in part and no such
right of rescission, set-off, counterclaim or defense has been asserted with
respect thereto, and no Borrower in respect of the Loan was a debtor in any
state or Federal bankruptcy or insolvency proceeding at the time the Loan was
originated.

      (f)   Hazard Insurance. The Mortgaged Property is insured by a fire and
extended perils insurance policy, issued by an insurer acceptable to Fannie Mae
or Freddie Mac, and such other hazards as are customary in the area where the
Mortgaged Property is located, and to the extent required by the Sellers as of
the date of origination consistent with the Underwriting Guidelines, against
earthquake and other risks insured against by Persons operating like properties
in the locality of the Mortgaged Property, in an amount not less than the
greatest of (i) 100% of the replacement cost of all improvements to the
Mortgaged Property, (ii) either (A) the outstanding principal balance of the
Loan with respect to each First Lien Loan (plus, if the Loan is an Option ARM
Loan which provides for Negative Amortization or a Negative Amortization Loan,
the maximum amount of Negative Amortization permitted by the Note) or (B) with
respect to each Second Lien Loan, the sum of the outstanding principal balance
of the First Lien Loan and the outstanding principal balance of the Second Lien
Loan (plus, if the Loan is an Option ARM Loan which provides for Negative
Amortization or a Negative Amortization Loan, the maximum amount of Negative
Amortization permitted by the Note), (iii) the amount necessary to avoid the
operation of any co-insurance provisions with respect to the Mortgaged Property,
and consistent with the amount that would have been required as of the date of
origination in accordance with the Underwriting Guidelines or (iv) the amount
necessary to fully compensate for any damage or loss to the improvements that
are a part of such property on a replacement cost basis. If any portion of the
Mortgaged Property is in an area identified in the Federal Register by the
Federal Emergency Management Agency as having special flood hazards, a flood
insurance policy meeting the current guidelines of the Federal Insurance
Administration is in effect with a generally acceptable insurance carrier and
such policy conforms to the requirements of Fannie Mae or Freddie Mac, in an
amount representing coverage not less than the least of (1) the outstanding
principal balance of the Loan, (2) the full insurable value of the Mortgaged
Property, and (3) the maximum amount of insurance available under the Flood
Disaster Protection Act of 1973, as amended. All such insurance policies
(collectively, the "hazard insurance policy") contain a standard mortgagee
clause naming Holdings, its successors and assigns (including without
limitation, subsequent owners of the Loan), as mortgagee, and may not be
reduced, terminated or canceled without 30 days' prior written notice to the
mortgagee. No such notice has been received by the Sellers. All premiums due and
owing on such insurance policy have been paid. The related Mortgage obligates
the Borrower to maintain all such insurance and, at such Borrower's failure to
do so, authorizes the mortgagee to maintain such insurance at the Borrower's
cost and expense and to seek reimbursement therefor from such Borrower. Where
required by state law or regulation, the Borrower has been given an opportunity
to choose the carrier of the required hazard insurance, provided the policy is
not a "master" or "blanket" hazard insurance policy covering a condominium, or
any hazard insurance policy covering the common facilities of a planned unit
development. The hazard insurance policy is the valid and binding obligation of
the insurer and is in full force and effect. No Seller has engaged in, and has
no knowledge of the Borrower's having engaged in, any act or omission which
would impair the coverage of any such policy, the benefits of the endorsement
provided for herein, or the validity and binding effect of either including,
without limitation, no unlawful

                                      E - 2

fee, commission, kickback or other unlawful compensation or value of any kind
has been or will be received, retained or realized by any attorney, firm or
other Person, and no such unlawful items have been received, retained or
realized by the Sellers.

      (g)   Compliance with Applicable Laws. Any and all requirements of any
federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit protection
(including Uniform Consumer Credit Code Laws), fair credit reporting, unfair
collection practices, equal credit opportunity, all applicable high cost lending
laws, all applicable predatory and abusive lending laws or disclosure laws
applicable to the solicitation, origination, servicing and collection of the
Loan or otherwise applicable to the Loan have been complied with, the Borrower
received all disclosure materials required by applicable law with respect to the
making of mortgage loans of the same type as the Loan, the consummation of the
transactions contemplated hereby will not involve the violation of any such laws
or regulations, and the Sellers shall maintain or shall cause its agent to
maintain in its possession, available for the inspection of the Buyer, and shall
deliver to the Buyer, upon two Business Days' request, evidence of compliance
with all such requirements.

      (h)   No Satisfaction of Mortgage. The Mortgage has not been satisfied,
canceled, subordinated or rescinded, in whole or in part, and the Mortgaged
Property has not been released from the lien of the Mortgage, in whole-or in
part, nor has any instrument been executed that would effect any such release,
cancellation, subordination or rescission. The Sellers have not waived the
performance by the Borrower of any action, if the Borrower's failure to perform
such action would cause the Loan to be in default, nor have the Sellers waived
any default resulting from any action or inaction by the Borrower.

      (i)   Location and Type of Mortgaged Property. The Mortgaged Property is
located in the state identified in the Loan Schedule and consists of a single
parcel of real property with a detached single family residence erected thereon,
or a two or more family dwelling, or an individual condominium unit in a
condominium project, or an individual unit in a planned unit development or a de
minimis planned unit development, provided, however, that any condominium unit
or planned unit development shall conform with the applicable Fannie Mae and
Freddie Mac requirements regarding such dwellings, that a de minimus percentage
of the Loans may be Co-op Loans and that no residence or dwelling is a mobile
home, a manufactured dwelling or a cooperative dwelling. As of the respective
appraisal date for each Mortgaged Property, no portion of the Mortgaged Property
was being used for commercial or mixed-use purposes and, to the Sellers'
knowledge, since the date of such appraisal, no portion of the Mortgaged
Property has been used for commercial purposes. No Loan finances builder
inventory.

      (j)   Valid Lien. The Mortgage is a valid, subsisting, enforceable and
perfected (A) first lien and first priority security interest with respect to
each Loan (including any Negative Amortization which may arise thereunder) which
is indicated by the Seller to be a first lien (as reflected on the Loan
Schedule), or (B) second lien and second priority security interest with respect
to each Loan (including any Negative Amortization which may arise
thereunder)which is indicated by the Seller to be a second lien (as reflected on
the Loan Schedule), in either case, on the real property included in the
Mortgaged Property, including all buildings on the Mortgaged

                                      E - 3

Property and all installations and mechanical, electrical, plumbing, heating and
air conditioning systems located in or annexed to such buildings, and all
additions, alterations and replacements made at any time with respect to the
foregoing. The lien of the Mortgage (other than a Co-op Loan) is subject only
to:

                  (1)   the lien of current real property taxes and assessments
      not yet due and payable;

                  (2)   covenants, conditions and restrictions, rights of way,
      easements and other matters of the public record as of the date of
      recording acceptable to prudent mortgage lending institutions generally
      and specifically referred to in the title insurance policy delivered to
      the originator of the Loan and (a) referred to or otherwise considered in
      the appraisal made for the originator of the Loan or (b) which do not
      adversely affect the Appraised Value of the Mortgaged Property set forth
      in such appraisal;

                  (3)   other matters to which like properties are commonly
      subject which do not individually or in the aggregate materially interfere
      with the benefits of the security intended to be provided by the Mortgage
      or the use, enjoyment, value or marketability of the related Mortgaged
      Property;

                  (4)   in the case of a Mortgaged Property that is a
      condominium or an individual unit in a planned unit development, liens for
      common charges permitted by statute; and

                  (5)   with respect to each Loan which is indicated by the
      Seller to be a second lien Loan (as reflected on the Loan Schedule) a
      first lien on the Mortgaged Property.

      Any security agreement, chattel mortgage or equivalent document related to
and delivered in connection with the Loan establishes and creates a valid,
subsisting and enforceable (A) first lien and first priority security interest
with respect to each First Lien Loan (as reflected on the Loan Schedule), or (B)
second lien and second priority security interest with respect to each Second
Lien Loan (as reflected on the Loan Schedule), in either case, on the property
described therein and the Seller has full right to pledge and assign the same to
the Buyer. The Mortgaged Property was not, as of the date of origination of the
Loan, subject to a mortgage, deed of trust, deed to secure debt or other
security instrument creating a lien subordinate to the lien of the Mortgage.

      With respect to each Co-op Loan, each Assignment of Proprietary Lease
creates a valid, enforceable and subsisting first security interest in the
collateral securing the related Mortgage Note and with respect to Co-op Loans,
the Proprietary Lease and the Co-op Shares subject only to (a) the lien of the
related Co-op Corporation for unpaid assessments representing the obligor's pro
rata share of the Co-op Corporation's payments for its blanket mortgage, current
and future real property taxes, insurance premiums, maintenance fees and other
assessments to which like collateral is commonly subject and (b) other matters
to which like collateral is commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the

                                      E - 4

Assignment of Proprietary Lease; provided, however, that the appurtenant
Proprietary Lease may be subordinated or otherwise subject to the lien of any
mortgage on the Co-op Project.

      (k)   Cooperative Loans. With respect to each Co-op Loan, each original
UCC financing statement, continuation statement or other governmental filing or
recordation necessary to create or preserve the perfection and priority of the
first priority lien and security interest in the Co-op Shares and Proprietary
Lease has been timely and properly made. Any security agreement, chattel
mortgage or equivalent document related to the Co-op Loan and delivered to the
Seller or its designee establishes in the Seller a valid and subsisting
perfected first lien on and security interest in the Mortgaged Property
described therein, and the Seller has full right to sell and assign the same.

      (l)   Validity of Mortgage Documents. The Note and the Mortgage and any
other agreement executed and delivered by a Borrower or guarantor, if
applicable, in connection with a Loan are genuine, and each is the legal, valid
and binding obligation of the maker thereof enforceable in accordance with its
terms. All parties to the Note, the Mortgage and any other such related
agreement had legal capacity to enter into the Loan and to execute and deliver
the Note, the Mortgage and any such agreement, and the Note, the Mortgage and
any other such related agreement have been duly and properly executed by such
related parties. The Borrower is a natural person who is a party to the Note and
the Mortgage in an individual capacity and not in the capacity of a trustee or
otherwise. No fraud, error, omission, misrepresentation, negligence or similar
occurrence with respect to a Loan has taken placed on the part of any Person,
including, without limitation, the Borrower, any appraiser, any builder or
developer, or any other party involved in the origination of the Loan or in the
application of any insurance in relation to such Loan or in connection with the
sale of such Loan to the Buyer, and there are no circumstances existing with
respect to the Loan which would permit the primary mortgage guaranty insurer to
deny coverage under any insurance policy. The Sellers have reviewed all of the
documents constituting the Servicing File and has made such inquiries as it
deems necessary to make and confirm the accuracy of the representations set
forth herein.

      (m)   Full Disbursement of Proceeds. The proceeds of the Loan have been
fully disbursed and there is no further requirement for future advances
thereunder (except with respect to a HELOC during the related Revolving Period),
and any and all requirements as to completion of any on-site or off-site
improvement and as to disbursements of any escrow funds therefor have been
complied with. All costs, fees and expenses incurred in making or closing the
Loan and the recording of the Mortgage were paid, and the Borrower is not
entitled to any refund of any amounts paid or due under the Note or Mortgage.
The Revolving Period under any HELOC is identified on the Loan Schedule and is
accurate. No party other than the Buyer or Seller has any interest in any Draws
that have been made under any HELOC.

      (n)   Ownership. The Sellers or MERS as nominee for the Sellers is the
sole owner and holder of the Loan. In connection with such sale, such third
party received reasonably equivalent value and fair consideration and, in
accordance with GAAP and for federal income tax purposes, reported the sale of
such Loan to the Sellers as a sale of its interests in such Loan. The Loan is
not assigned or pledged, and the Sellers have good, indefeasible and marketable
title thereto, and has full right to transfer, sell and assign the Loan to the
Buyer free and clear of any

                                      E - 5

encumbrance, equity, participation interest, lien, pledge, charge, claim or
security interest, and has full right and authority subject to no interest or
participation of, or agreement with, any other party, to assign, transfer and
pledge each Loan pursuant to this Agreement and following the pledge of each
Loan, the Buyer will hold such Loan free and clear of any encumbrance, equity,
participation interest, lien, pledge, charge, claim or security interest except
any such security interest created pursuant to the terms of this Agreement.

      (o)   Doing Business. All parties which have had any interest in the Loan,
whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period
in which they held and disposed of such interest, were) (i) in compliance with
any and all applicable licensing requirements of the laws of the state wherein
the Mortgaged Property is located, and (ii) either (A) organized under the laws
of such state, (B) qualified to do business in such state or exempt from such
qualification in a manner so as not to affect adversely the enforceability of
such Mortgage Loan, (C) a federal savings and loan association, a savings bank
or a national bank having a principal office in such state or (D) not doing
business in such state.

      (p)   LTV; PMI Policy. As of the date of origination of the Loan, the LTV
and CLTV (if applicable) are as identified on the Loan Schedule. No First Lien
Loan had a loan-to-value ratio at origination in excess of 100% and no Second
Lien Loan has a Combined Loan-to-Value Ratio at origination in excess of 100%
unless in either case such Loan meets Fannie Mae, Freddie Mac or HUD Guidelines.
If a Loan had an original LTV of 80% or greater, the Loan is covered by a PMI
Policy. All provisions of such PMI Policy have been and are being complied with,
such policy is in full force and effect, and all premiums due thereunder have
been paid. The insurer under such PMI Policy is an insurer acceptable to Fannie
Mae or Freddie Mac. Any Loan subject to a PMI Policy obligates the Borrower
thereunder to maintain the PMI Policy and to pay all premiums and charges in
connection therewith. Any such premium is not payable from any portion of the
Mortgage Interest Rate. No Option ARM Loan or Negative Amortization Loan allows
for Negative Amortization when combined with the original principal balance of
the Option ARM Loan or Negative Amortization Loan, as applicable, would result
in a CLTV in excess of 100%.

      (q)   Title Insurance. The Loan is covered by either (i) an ALTA Buyer's
title insurance policy or other generally acceptable form of policy or insurance
acceptable to Fannie Mae or Freddie Mac or (ii) where (i) is not commercially
available, an attorney's opinion of title and abstract of title, the form and
substance of which, and the use of such opinion in lieu of title insurance is
acceptable to prudent mortgage lending institutions making mortgage loans in the
area wherein the Mortgaged Property is located and each such title insurance
policy and attorney's opinion of title is issued by and constitutes the valid
and binding obligation of a title insurer or attorney (as applicable) generally
acceptable to prudent mortgage lenders that regularly originate or purchase
mortgage loans comparable to the Loans and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring Holdings, its
successors and assigns, as to the first or second priority lien of the Mortgage,
as applicable, in the original principal amount of the Loan with respect to a
Loan other than a HELOC (including, if the Loan is an Option ARM Loan or
Negative Amortization Loan which provides for Negative Amortization, the maximum
amount of Negative Amortization in accordance with the Mortgage) or the original
Credit Limit, with respect to a HELOC, subject only to the exceptions contained

                                      E - 6

in clauses (1), (2), (3) and, with respect to each Loan which is indicated by
the Seller to be a second lien Loan (as reflected on the Loan Schedule) clause
(4) of paragraph (j) of this Exhibit E, and in the case of adjustable rate
Loans, against any loss by reason of the invalidity or unenforceability of the
lien resulting from the provisions of the Mortgage providing for adjustment to
the Mortgage Interest Rate and Monthly Payment and with respect to a Loan
including an Option ARM Loan which provides for Negative Amortization, the
Negative Amortization provisions of the Note. Where required by state law or
regulation, the Borrower has been given the opportunity to choose the carrier of
the required mortgage title insurance. Additionally, such Buyer's title
insurance policy affirmatively insures ingress and egress and against
encroachments by or upon the Mortgaged Property or any interest therein. The
title policy does not contain any special exceptions (other than the standard
exclusions) for zoning and uses and has been marked to delete the standard
survey exception or to replace the standard survey exception with a specific
survey reading. Holdings, its successors and assigns, are the sole insureds of
such Buyer's title insurance policy, and such Buyer's title insurance policy is
valid and remains in full force and effect and will be in force and effect upon
the consummation of the transactions contemplated by this Agreement. No claims
have been made under such Buyer's title insurance policy, and no prior holder or
servicer of the related Mortgage, including the Sellers, have done, by act or
omission, anything which would impair the coverage of such Buyer's title
insurance policy, including, without limitation, no unlawful fee, commission,
kickback or other unlawful compensation or value of any kind has been or will be
received, retained or realized by any attorney, firm or other Person, and no
such unlawful items have been received, retained or realized by any of the
Sellers.

      (r)   No Defaults. There is no default, breach, violation or event of
acceleration existing under the Mortgage or the Note and no event has occurred
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event of
acceleration, and no Seller nor its predecessors have waived any default,
breach, violation or event of acceleration, except that the Sellers may have
accepted late payments, and all taxes, governmental assessments, insurance
premiums or water, sewer and municipal charges which previously became due and
owing have been paid, or an escrow of funds has been established in an amount
sufficient to pay for every such item which remains unpaid and which has been
assessed but is not yet due and payable and with respect to each Co-op Loan,
there is no default in complying with the terms of the Mortgage Note, the
Assignment of Proprietary Lease and the Proprietary Lease and all maintenance
charges and assessments (including assessments payable in the future
installments, which previously became due and owing) have been paid, and the
related Seller has the right under the terms of the Mortgage Note, Assignment of
Proprietary Lease and Proprietary Lease to pay any maintenance charges or
assessments owed by the Borrower. With respect to each Loan which is indicated
by the Sellers to be a Second Lien Loan (as reflected on the Loan Schedule) (i)
the first lien is in full force and effect, (ii) there is no default, breach,
violation or event of acceleration existing under such first lien mortgage or
the related mortgage note, (iii) no event which, with the passage of time or
with notice and the expiration of any grace or cure period, would constitute a
default, breach, violation or event of acceleration thereunder has occurred, and
either (A) the first lien mortgage contains a provision which allows or (B)
applicable law requires, the mortgagee under the Second Lien Loan to receive
notice of, and affords such mortgagee an opportunity to cure any default by
payment in full or otherwise under the first lien mortgage.

                                      E - 7

      (s)   No Mechanics' Liens. There are no mechanics' or similar liens or
claims which have been filed for work, labor or material (and no rights are
outstanding that under the law could give rise to such liens) affecting any
Mortgaged Property which are or may be liens prior to, or equal or coordinate
with the lien of the Mortgage except those that are stated in the title
insurance policy and for which related losses are affirmatively insured against
by such policy.

      (t)   Location of Improvements: No Encroachments. All improvements which
were considered in determining the Appraised Value of the Mortgaged Property lie
wholly within the boundaries and building restriction lines of the Mortgaged
Property, and no improvements on adjoining properties encroach upon the
Mortgaged Property except those that are stated in the title insurance policy
and for which related losses are affirmatively insured against by such policy.
No improvement located on or being part of the Mortgaged Property is in
violation of any applicable zoning and building law, ordinance or regulation.

      (u)   Origination: Payment Terms. The Loan was originated by the related
Seller in conjunction with a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to Sections 203 and 211 of the National Housing Act,
a savings and loan association, a savings bank, a commercial bank, credit union,
insurance company or similar banking institution which is supervised and
examined by a federal or state authority. Except for an Interest-Only Loan, or
HELOC, principal payments on the Loan commenced no more than sixty (60) days
after funds were disbursed in connection with the Loan. The Mortgage Interest
Rate is adjusted, with respect to adjustable rate Loans, on each Interest Rate
Adjustment Date to equal the Index plus the Gross Margin (rounded up or down to
the nearest .125%), subject to the Mortgage Interest Rate Cap. Except for an
Interest-Only Loan, Option ARM Loan or HELOC, the Note is payable on the day set
forth in the Note in equal monthly installments of principal and interest, which
installments of interest, with respect to adjustable rate Loans, are subject to
change due to the adjustments to the Mortgage Interest Rate on each Interest
Rate Adjustment Date, with interest calculated and payable in arrears,
sufficient to amortize the Loan fully by the stated maturity date, over an
original term of not more than 40 years from the date of origination. With
respect to each Interest-Only Loan or Option ARM Loan, the interest-only period
shall not exceed the period specified on the Loan Schedule and following the
expiration of such interest-only period, the remaining Monthly Payments shall be
sufficient to fully amortize the original principal balance over the remaining
term of the Loan. With respect to HELOCs, the related Borrower may request
advances up to the Credit Limit within the first ten years following the date of
origination; each HELOC will amortize within thirty (30) years from the date of
origination. With respect to each Negative Amortization Loan or Option ARM Loan,
the related Note requires a Monthly Payment which is sufficient during the
period following each Payment Adjustment Date, to fully amortize the outstanding
principal balance as of the first day of such period (including any Negative
Amortization) over the then remaining term of such Note and to pay interest at
the related Mortgage Interest Rate and requires that such Option ARM Loan or
Negative Amortization Loan be fully amortized by the stated maturity date;
provided, however, that the Monthly Payment shall not increase to an amount that
exceeds 110% of the amount of the Monthly Payment that was due immediately prior
to the Payment Adjustment Date. Unless otherwise specified on the description of
pool characteristics attached in the Loan Schedule, the Loan is payable on the
first day of each month.

                                       E-8

      (v)   Customary Provisions. The Note has a stated maturity. The Mortgage
contains customary and enforceable provisions such as to render the rights and
remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including,
(i) in the case of a Mortgage designated as a deed of trust, by trustee's sale,
and (ii) otherwise by judicial foreclosure. Upon default by a Borrower on a Loan
and foreclosure on, or trustee's sale of, the Mortgaged Property pursuant to the
proper procedures, the holder of the Loan will be able to deliver good and
merchantable title to the Mortgaged Property. There is no homestead or other
exemption available to a Borrower which would interfere with the right to sell
the Mortgaged Property at a trustee's sale or the right to foreclose the
Mortgage.

      (w)   Conformance with Underwriting Guidelines and Agency Standards. The
Loan was underwritten in accordance with the applicable Underwriting Guidelines.
The Note and Mortgage are on Fannie Mae or Freddie Mac uniform instruments, or
are on forms acceptable to Freddie Mac or Fannie Mae, (unless the Note and
Mortgage are with respect to non-standard programs for which Fannie Mae and
Freddie Mac do not have forms, in which case, they shall be on forms acceptable
to prudent institutional mortgage lenders that regularly originate or purchase
mortgage loans) and the Sellers have not made any representations to a Borrower
that are inconsistent with the mortgage instruments used.

      (x)   Occupancy of the Mortgaged Property. As of the Purchase Date the
Mortgaged Property is lawfully occupied under applicable law. All inspections,
licenses and certificates required to be made or issued with respect to all
occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy
and fire underwriting certificates, have been made or obtained from the
appropriate authorities. No Seller has received written notification from any
Governmental Authority that the Mortgaged Property is in material non-compliance
with such laws or regulations, is being used, operated or occupied unlawfully or
has failed to have or obtain such inspection, licenses or certificates, as the
case may be. No Seller has received notice of any violation or failure to
conform with any such law, ordinance, regulation, standard, license or
certificate. Except as otherwise set forth in the Loan Schedule, the Borrower
represented at the time of origination of the Loan that the Borrower would
occupy the Mortgaged Property as the Borrower's primary residence.

      (y)   No Additional Collateral. The Note is not and has not been secured
by any collateral, pledged account or other security except the lien of the
corresponding Mortgage and the security interest of any applicable security
agreement or chattel mortgage referred to in clause (j) above.

      (z)   Deeds of Trust. In the event the Mortgage constitutes a deed of
trust, a trustee, authorized and duly qualified under applicable law to serve as
such, has been properly designated and currently so serves and is named in the
Mortgage, and no fees or expenses are or will become payable by the Custodian or
the Buyer to the trustee under the deed of trust, except in connection with a
trustee's sale after default by the Borrower.

                                       E-9

      (aa)  Delivery of Mortgage Documents. Except with respect to any Wet
Funded Loan, the Note, the Mortgage, the Assignment of Mortgage (other than for
a MERS Designated Loan) and any other documents required to be delivered under
the Custodial Agreement for each Loan have been delivered to the Custodian. Each
Mortgage securing a Loan (other than a MERS Designated Loan) has been duly
recorded in the appropriate governmental recording office of the jurisdiction
where the Mortgaged Property is located. If the Mortgage securing a Loan does
not name the applicable Seller as the related holder, then a valid and
recordable assignment assigning to the applicable Seller or the Custodian the
Mortgage underlying the Loan has been duly recorded in the appropriate
governmental recording office for the jurisdiction in which the Mortgaged
Property is located, and the related Seller has delivered to the Custodian a
true certified copy of the original assignment delivered to the appropriate
governmental recording office. The Seller or its agent is in possession of a
complete, true and materially accurate Loan File in compliance with the
Custodial Agreement, except for such documents the originals of which have been
delivered to the Custodian. Each of the documents and instruments included in a
Loan File is duly executed and in due and proper form and each such document or
instrument is in a form generally acceptable to prudent institutional mortgage
lenders that regularly originate or purchase mortgage loans.

      (bb)  Transfer of Loans. Except with respect to each Wet Funded Loan,
the Assignment of Mortgage is in recordable form and is acceptable for recording
under the laws of the jurisdiction in which the Mortgaged Property is located.

      (cc)  Due-On-Sale. The Mortgage contains an enforceable provision for
the acceleration of the payment of the unpaid principal balance of the Loan in
the event that the Mortgaged Property is sold or transferred without the prior
written consent of the mortgagee thereunder.

      (dd)  No Buydown Provisions: No Graduated Payments or Contingent
Interests. The Loan does not contain provisions pursuant to which monthly
payments are paid or partially paid with funds deposited in any separate account
established by the Sellers, the Borrower, or anyone on behalf of the Borrower,
or paid by any source other than the Borrower nor does it contain any other
similar provisions which may constitute a "buydown" provision. The Loan is not a
graduated payment mortgage loan and the Loan does not have a shared appreciation
or other contingent interest feature.

      (ee)  Consolidation of Future Advances. Any future advances made to the
Borrower prior to the origination of the Loan have been or in the case of HELOCs
will be consolidated with the outstanding principal amount secured by the
Mortgage, and the secured principal amount, as consolidated, bears a single
interest rate and a single repayment term. The lien of the Mortgage securing the
consolidated principal amount is expressly insured as having (A) first lien
priority with respect to each Loan which is indicated by the Seller to be a
First Lien Loan (as reflected on the Loan Schedule), or (B) second lien priority
with respect to each Loan which is indicated by the Seller to be a Second Lien
Loan (as reflected on the Loan Schedule), in either case, by a title insurance
policy, an endorsement to the policy insuring the mortgagee's consolidated
interest or by other title evidence acceptable to Fannie Mae and Freddie Mac.
With respect to each Loan which does not permit Negative Amortization, the
consolidated principal

                                      E-10

amount does not exceed the original principal amount of the Loan or in the case
of HELOCs, the Credit Limit of the Loan. With respect to each Negative
Amortization Loan or Option ARM Loan which provides for Negative Amortization,
the consolidated principal amount does not exceed the original principal amount
of the Loan plus any Negative Amortization in a combined amount not to exceed
the maximum Negative Amortization permitted under the terms of the Note.

      (ff)  Mortgaged Property Undamaged. The Mortgaged Property (and with
respect to any Co-op Loan, the Co-op Unit) is in good repair and undamaged by
waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
casualty so as to affect adversely the value of the Mortgaged Property as
security for the Loan or the use for which the premises were intended and each
Mortgaged Property is in good repair. There is no proceeding pending or
threatened for the total or partial condemnation of any Mortgaged Property, nor
is such a proceeding currently occurring.

      (gg)  Collection Practices: Escrow Deposits: Interest Rate Adjustments.
The origination, servicing and collection practices used by the originator, each
servicer of the Loan and the Sellers with respect to the Loan have been in
compliance with Accepted Servicing Practices, applicable laws and regulations,
and have been in all respects legal and proper. With respect to escrow deposits
and escrow payments (other than with respect to each Loan which is indicated by
the Seller to be a Second Lien Loan and for which the mortgagee under the first
lien is collecting escrow payments (as reflected on the Loan Schedule), all such
payments are in the possession of, or under the control of, the Sellers or their
designee and there exist no deficiencies in connection therewith for which
customary arrangements for repayment thereof have not been made. All escrow
payments have been collected in full compliance with state and federal law. An
escrow of funds is not prohibited by applicable law and has been established in
an amount sufficient to pay for every item that remains unpaid and has been
assessed but is not yet due and payable. No escrow deposits or escrow payments
or other charges or payments due have been capitalized under the Mortgage or the
Note. All Mortgage Interest Rate adjustments have been made in strict compliance
with state and federal law and the terms of the related Note. Any interest
required to be paid pursuant to state, federal and local law has been properly
paid and credited.

      (hh)  Conversion to Fixed Interest Rate. With respect to adjustable rate
Loans, the Loan is not convertible to a fixed interest rate Loan.

      (ii)  Other Insurance Policies. No action, inaction or event has
occurred and no state of facts exists or has existed that has resulted or will
result in the exclusion from, denial of, or defense to coverage under any
applicable special hazard insurance policy, PMI Policy or bankruptcy bond,
irrespective of the cause of such failure of coverage. In connection with the
placement of any such insurance, no commission, fee, or other compensation has
been or will be received by any Seller or by any officer, director, or employee
of any Seller or any designee of the Sellers or any corporation in which any
Seller or any officer, director, or employee had a financial interest at the
time of placement of such insurance.

                                      E-11

      (jj)  Servicepersons' Civil Relief Act. The Borrower has not notified
any Seller, and no Seller has knowledge, of any relief requested by the Borrower
under the Servicepersons' Civil Relief Act of 1940.

      (kk)  Appraisal. Except with respect to HELOCs originated in accordance
with the Underwriting Guidelines for which no appraisal was required, the Loan
File contains an appraisal of the related Mortgaged Property signed prior to the
approval of the Loan application by a qualified appraiser who had no interest,
direct or indirect in the Mortgaged Property or in any loan made on the security
thereof, and whose compensation is not affected by the approval or disapproval
of the Loan, and the appraisal and appraiser both satisfy the requirements of
Fannie Mae or Freddie Mac and Title XI of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 as amended and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was originated.

      (ll)  Disclosure Materials. The Borrower has executed a statement to the
effect that the Borrower has received all disclosure materials required by
applicable law with respect to the making of Adjustable Rate Mortgage Loans, and
the Sellers maintain such statement in the Loan File.

      (mm)  No Construction Loans. No Loan was made in connection with the
construction or rehabilitation of a Mortgaged Property or facilitating the
trade-in or exchange of a Mortgaged Property.

      (nn)  No Defense to Insurance Coverage. No action has been taken or
failed to be taken, no event has occurred and no state of facts exists or has
existed on or prior to the Purchase Date (whether or not known to the Sellers on
or prior to such date) which has resulted or will result in an exclusion from,
denial of, or defense to coverage under any private mortgage insurance
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of the Sellers, the
related Borrower or any party involved in the application for such coverage,
including the appraisal, plans and specifications and other exhibits or
documents submitted therewith to the insurer under such insurance policy, or for
any other reason under such coverage, but not including the failure of such
insurer to pay by reason of such insurer's breach of such insurance policy or
such insurer's financial inability to pay.

      (oo)  Capitalization of Interest. Other than with respect to Negative
Amortization Loans, the Note does not by its terms provide for the
capitalization or forbearance of interest.

      (pp)  No Equity Participation. No document relating to the Loan provides
for any contingent or additional interest in the form of participation in the
cash flow of the Mortgaged Property or a sharing in the appreciation of the
value of the Mortgaged Property. The indebtedness evidenced by the Note is not
convertible to an ownership interest in the Mortgaged Property or the Borrower
and the Sellers has not financed nor does it own directly or indirectly, any
equity of any form in the Mortgaged Property or the Borrower.

                                      E-12

      (qq)  Withdrawn Loans. If the Loan has been released to the Sellers
pursuant to a Request for Release as permitted under the Custodial Agreement,
then the promissory note relating to the Loan was returned to the Custodian
within 10 days (or if such tenth day was not a Business Day, the next succeeding
Business Day).

      (rr)  No Exception. Other than as noted by the Custodian on the
Exception Report; no document deficiency exists with respect to the Loan which
would materially adversely affect the Loan or the Buyer's ownership and/or
security interest granted by the Seller in the Loan as determined by the Buyer
in its sole discretion.

      (ss)  Qualified Originator. The Loan has been originated by, and, if
applicable, purchased by the Sellers from, an originator duly licensed and
validly authorized under applicable law to originate mortgage loans in the
related jurisdiction.

      (tt)  Mortgage Submitted for Recordation. The Mortgage has been
submitted for recordation in the appropriate governmental recording office of
the jurisdiction where the Mortgaged Property is located.

      (uu)  First Lien Consent. With respect to each Loan which is a Second
Lien Loan, (a) the related first lien only provides for Negative Amortization if
such Second Lien Loan is a HELOC, and (b) either no consent for the Loan is
required by the holder of the first lien or such consent has been obtained and
is contained in the Loan File.

      (vv)  Acceptable Investment. No specific circumstances or conditions
exist with respect to the Mortgage, the Mortgaged Property, the Borrower or the
Borrower's credit standing that should reasonably be expected to (i) cause
private institutional investors which invest in Loans similar to the Loan to
regard the Loan as an unacceptable investment, (ii) cause the Loan to be more
likely to become past due in comparison to similar Loans, or (iii) adversely
affect the value or marketability of the Loan in comparison to similar Loans.

      (ww)  Environmental Matters. The Mortgaged Property is free from any and
all toxic or hazardous substances and there exists no violation of any local,
state or federal environmental law, rule or regulation. To the best of Sellers'
knowledge, no Mortgaged Property was, as of the related Purchase Date, located
within a one-mile radius of any site listed in the National Priorities List as
defined under the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, or on any similar state list of hazardous
waste sites which are known to contain any hazardous substance or hazardous
waste.

      (xx)  Ground Leases. With respect to each ground lease to which the
Mortgaged Property is subject (a "Ground Lease"): (i) the Borrower is the owner
of a valid and subsisting interest as tenant under the Ground Lease; (ii) the
Ground Lease is in full force and effect, unmodified and not supplemented by any
writing or otherwise; (iii) all rent, additional rent and other charges reserved
therein have been paid to the extent they are payable to the date hereof; (iv)
the Borrower enjoys the quiet and peaceful possession of the estate demised
thereby, subject to any sublease; (v) the Borrower is not in default under any
of the terms thereof and there are no circumstances which, with the passage of
time or the giving of notice or both, would constitute

                                      E-13

an event of default thereunder; (vii) the lessor under the Ground Lease is not
in default under any of the terms or provisions thereof on the part of the
lessor to be observed or performed; (vii) the lessor under the Ground Lease has
satisfied all of its repair or construction obligations, if any, to date
pursuant to the terms of the Ground Lease; and (ix) the execution, delivery and
performance of the Mortgage do not require the consent (other than those
consents which have been obtained and are in full force and effect) under, and
will not contravene any provision of or cause a default under, the Ground Lease.

      (yy)  Value of Mortgage Property. No Seller has knowledge of any
circumstances existing that should reasonably be expected to adversely affect
the value or the marketability of the Mortgaged Property or the Loan or to cause
the Loan to prepay during any period materially faster or slower than the Loans
originated by the Sellers generally.

      (zz)  Predatory Lending Practices. No predatory, abusive or deceptive
lending practices, including but not limited to, the extension of credit to a
Borrower without regard for the Borrower's ability to repay the Loan and the
extension of credit to a Borrower which has no tangible net benefit to the
Borrower, were employed in connection with the origination of the Loan. Each
Loan is in compliance with the anti-predatory lending eligibility for purchase
requirements of Fannie Mae's Selling Guide.

      (aaa) Georgia. If the Loan is secured by property located in the State
of Georgia, no Loan originated on or after October 1, 2002 and prior to March 7,
2003 is subject to the Georgia Fair Lending Act.

      (bbb) MERS Designated Mortgage Loans. With respect to each MERS
Designated Mortgage Loans, a Mortgage Identification Number has been assigned by
MERS and such Mortgage Identification Number is accurately provided on the Loan
Schedule. The related Assignment of Mortgage to MERS has been duly and properly
recorded. With respect to each MERS Mortgage Loan, no Borrower has received any
notice of liens or legal actions with respect to such Mortgage Loan and no such
notices have been electronically posted by MERS.

      (ccc) Wet Funded Loans. A complete Loan File with respect to each Wet
Funded Loan which was required to be delivered to the Custodian has been
delivered to the Custodian within the time frame specified in the Custodial
Agreement.

      (ddd) High Cost Loans. No Loan is a High Cost Loan.

      (eee) Balloon Loans. No Loan is a Balloon Loan.

      (fff) HOEPA. No Mortgage Loan is (a) subject to, covered by or in
violation of the provisions of the Homeownership and Equity Protection Act of
1994, as amended, (b) a "high cost", "covered", "abusive", "predatory",
"threshold", "home loan", "Oklahoma Section 10" or "high risk" mortgage loan (or
a similarly designated loan using different terminology) under any federal,
state or local law, including without limitation, the provisions of the Georgia
Fair Lending Act, New York Banking Law, Section 6-1, the City of Oakland,
California Anti-Predatory Lending Ordinance No. 12361, the Arkansas Home Loan
Protection Act, effective as

                                      E-14

of June 14, 2003, Kentucky State Statute KRS 360.100, effective as of June 25,
2003, the New Jersey Home Ownership Security Act of 2002 (the "NJ Act"), the New
Mexico Home Loan Protection Act (N.M. Stat. Ann. ss.ss. 58-21A-1 et seq.), the
Illinois High-Risk Home Loan Act (815 Ill. Comp. Stat. 137/1 et seq.), the
Oklahoma Home Ownership and Equity Protection Act, Nevada Assembly Bill No. 284,
effective as of Oct. 1, 2003, the Minnesota Residential Mortgage Originator and
Servicer Licensing Act (MN Stat. ss.58.137), the South Carolina High-Cost and
Consumer Home Loans Act, effective January 1, 2004, or any other statute or
regulation providing assignee liability to holders of such mortgage loans, or
(c) subject to or in violation of any such or comparable federal, state or local
statutes or regulations.

      (ggg) Revolving Period. Each HELOC provides for a Revolving Period
during which the Borrower is required to make monthly payments of interest
payable in arrears and requires repayment of the unpaid principal balance
thereof over a period following the Revolving Period (the "Repayment Period")
which is not in excess of 120 months. As of the related Purchase Date, no HELOC
was in its Repayment Period. The Mortgage Interest Rate on each HELOC adjusts
periodically in accordance with the Credit Line Agreement to equal the sum of
the Index and the related Gross Margin. On each Interest Rate Adjustment Date
with respect to a HELOC, the Seller has made interest rate adjustments on the
Mortgage Loan which are in compliance with the related Note and applicable law.
With respect to each HELOC, the related Borrower may request advances up to the
Credit Limit within the first ten years following the date of origination. Each
HELOC will fully amortize within 25 years from the date of origination.

      (hhh) Prepayment Fees. If the Loan contains a provision permitting
imposition of a premium upon a prepayment prior to maturity: (i) prior to the
origination of such Loan, the Borrower agreed to such premium in exchange for a
monetary benefit, including but not limited to a rate or fee reduction, (ii)
prior to the origination of such Loan, the Borrower was offered the option of
obtaining a mortgage loan that did not require payment of such a premium, (iii)
the prepayment premium is disclosed to the Borrower in the loan documents
pursuant to applicable state and federal law, (iv) such prepayment penalty will
not be imposed in excess of five years and unless the Loan was modified to
reduce the prepayment period to no more than three years from the date of the
Note and the Borrower was notified in writing of such reduction in prepayment
period, and (v) notwithstanding any state or federal law to the contrary, the
Servicer shall not impose such prepayment premium in any instance when the
mortgage debt is accelerated as the result of the Borrower's default in making
the loan payments.

      (iii) Points and Fees. All points and fees related to the Loan were
disclosed in writing to the Borrower in accordance with applicable state and
federal law and regulation. Except in the case of a Loan in an original
principal amount of less than $60,000 which would have resulted in an
unprofitable origination, no borrower was charged "points and fees" (whether or
not financed) in an amount greater than (a) $1,000 or (b) 5% of the principal
amount of such loan whichever is greater, such 5% limitation is calculated in
accordance with Fannie Mae's anti-predatory lending requirements as set forth in
the Fannie Mae Selling Guide. For purposes of this representation, "points and
fees" (x) include origination, underwriting, broker and finder's fees and
charges that the lender imposed as a condition of making the Loan, whether they
are paid to the Seller or a third party; and (y) exclude bona fide discount
points, fees paid for actual services rendered in connection with the
origination of the mortgage (such as attorneys' fees,

                                      E-15

notaries fees and fees paid for property appraisals, credit reports, surveys,
title examinations and extracts, flood and tax certifications, and home
inspections); the cost of mortgage insurance or credit-risk price adjustments;
the costs of title, hazard, and flood insurance policies; state and local
transfer taxes or fees; escrow deposits for the future payment of taxes and
insurance premiums; and other miscellaneous fees and charges that, in total, do
not exceed 0.25 percent of the Loan.

      (jjj) Mandatory Arbitration. No Loan that was originated on or after
October 31, 2004, is subject to mandatory arbitration except when the terms of
the arbitration also contain a waiver provision that provides that in the event
of a sale or transfer of the Loan or interest in the Loan to Fannie Mae, the
terms of the arbitration are null and void and cannot be reinstated. The Seller
hereby covenants that the Seller or Servicer of the Loan, as applicable, will
notify the Borrower in writing within 60 days of the sale or transfer of the
Loan to Fannie Mae that the terms of the arbitration are null and void.

      (kkk) Loan Products. No Borrower was encouraged or required to select a
Loan product offered by the originator of the Loan which is a higher cost
product designed for less creditworthy Borrowers, unless at the time of the
origination of such Loan, such Borrower did not qualify taking into account
credit history and debt to income ratios for a lower cost credit product then
offered by the originator of the Loan or any affiliate of the originator of such
Loan. If, at the time of loan application, the Borrower may have qualified for a
lower cost credit product than offered by any mortgage lending affiliate of the
originator of the Loan, such originator referred the Borrower's application to
such affiliate for underwriting consideration.

      (lll) Underwriting Methodology. The methodology used in underwriting
the extension of credit for the Loan employs objective mathematical principles
which relate the Borrower's income, assets and liabilities to the proposed
payment and such underwriting methodology does not rely on the extent of the
Borrower's equity in the collateral as the principal determining factor in
approving such credit extension. Such underwriting methodology confirmed that at
the time of origination (application/approval) the Borrower had a reasonable
ability to make timely payments on the Loan.

      (mmm) Fees and Charges. All fees and charges (including finance
charges) and whether or not financed, assessed, collected or to be collected in
connection with the origination and servicing of the Loan has been disclosed in
writing to the Borrower in accordance with applicable state and federal law and
regulation.

      (nnn) Credit Reporting. The Servicer transmits full-file credit
reporting data for the Loan pursuant to Fannie Mae Guide Announcement 95-19 and
that for the Loan, Servicer has agreed to report one of the following statuses
each month as follows: new origination, current, delinquent (30-, 60-, 90-days,
etc.), foreclosed, or charged-off.

      (ooo) Residential Dwelling. The Loan is secured by a first priority or
second priority mortgage or deed of trust on real residential property that is
improved by a completed single-family residence. The original principal balance
of the Loan is within Freddie Mac's dollar amount limits for one-to-four-family
mortgage loans.

                                      E-16

      (ppp) Manufactured housing. The Loan is not secured by manufactured
housing units.

                                      E-17

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