Document:

exv4w1

 

CHASE MORTGAGE FINANCE CORPORATION,

DEPOSITOR,

JPMORGAN CHASE BANK, N.A.,

SERVICER,

JPMORGAN CHASE BANK, N.A.,

CUSTODIAN

AND

THE BANK OF NEW YORK TRUST COMPANY, N.A.,

TRUSTEE AND PAYING AGENT

POOLING AND SERVICING AGREEMENT

Dated as of July 1, 2007

$939,943,100

Multi-Class Mortgage Pass-Through Certificates

ChaseFlex Trust Series 2007-M1

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II CONVEYANCE OF MORTGAGE LOANS; TRUST FUND
	 	 	36	 
	Section 2.01 Conveyance of Mortgage Loans
	 	 	36	 
	Section 2.02 Acceptance by Trustee
	 	 	40	 
	Section 2.03 Trust Fund; Authentication of Certificates
	 	 	41	 
	Section 2.04 REMIC Elections
	 	 	 	 
	Section 2.05 Permitted Activities of Trust
	 	 	58	 
	Section 2.06 Qualifying Special Purpose Entity
	 	 	58	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AND THE SERVICER, REPURCHASE 
                  OF MORTGAGE LOANS
	 	 	58	 
	Section 3.01 Representations and Warranties of the Depositor with respect to the Mortgage Loans
	 	 	58	 
	Section 3.02 Representations and Warranties of the Servicer
	 	 	65	 
	Section 3.03 Option to Substitute
	 	 	66	 
	 
	 	 	 	 
	ARTICLE IV THE CERTIFICATES
	 	 	67	 
	Section 4.01 The Certificates
	 	 	67	 
	Section 4.02 Registration of Transfer and Exchange of Certificates
	 	 	69	 
	Section 4.03 Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	73	 
	Section 4.04 Persons Deemed Owners
	 	 	73	 
	Section 4.05 Appointment of Paying Agent and Certificate Registrar; Certificate Account
	 	 	73	 
	Section 4.06 Authenticating Agents
	 	 	74	 
	 
	 	 	 	 
	ARTICLE V ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	 	 	75	 
	Section 5.01 Servicer to Service Mortgage Loans
	 	 	75	 
	Section 5.02 Sub-Servicing Agreements Between Servicer and Sub-Servicers; Enforcement of Sub-Servicer’s
Obligations
	 	 	76	 
	Section 5.03 Successor Sub-Servicers
	 	 	76	 
	Section 5.04 Liability of the Servicer
	 	 	76	 
	Section 5.05 No Contractual Relationship Between Sub-Servicer and Trustee or Certificateholders
	 	 	76	 
	Section 5.06 Termination of Sub-Servicing Agreement
	 	 	77	 
	Section 5.07 Collection of Mortgage Loan Payments
	 	 	77	 
	Section 5.08 Establishment of Collection Account; Deposit in Collection Account
	 	 	77	 
	Section 5.09 Permitted Withdrawals from the Collection Account
	 	 	78	 
	Section 5.10 Establishment of Escrow Account; Deposits in Escrow Account
	 	 	79	 

 

 

	 	 	 	 	 
	Section 5.11 Permitted Withdrawals from Escrow Account
	 	 	79	 
	Section 5.12 Payment of Taxes, Insurance and Other Charges
	 	 	80	 
	Section 5.13 Transfer of Accounts
	 	 	80	 
	Section 5.14 [Reserved]
	 	 	80	 
	Section 5.15 Maintenance of the Primary Insurance Policies
	 	 	80	 
	Section 5.16 Maintenance of Standard Hazard Policies
	 	 	80	 
	Section 5.17 [Reserved]
	 	 	81	 
	Section 5.18 [Reserved]
	 	 	81	 
	Section 5.19 Fidelity Bond and Errors and Omissions Insurance
	 	 	81	 
	Section 5.20 Collections under Insurance Policies; Enforcement of Due-On-Sale Clauses; Assumption Agreements

	 	 	81	 
	Section 5.21 Income and Realization from Defaulted Mortgage Loans
	 	 	82	 
	Section 5.22 Trustee to Cooperate; Release of Mortgage Files
	 	 	83	 
	Section 5.23 Servicing and Other Compensation
	 	 	85	 
	Section 5.24 1934 Act Reports
	 	 	85	 
	Section 5.25 Annual Statement as to Compliance
	 	 	87	 
	Section 5.26 Assessment of Compliance and Independent Public Accountants’ Attestation; Financial Statements

	 	 	87	 
	Section 5.27 Access to Certain Documentation; Rights of the Depositor in Respect of the Servicer
	 	 	89	 
	Section 5.28 REMIC-Related Covenants
	 	 	90	 
	Section 5.29 Yield Maintenance Agreement; Reserve Fund
	 	 	91	 
	Section 5.30 The Swap Agreement; Supplemental Interest Trust
	 	 	81	 
	 
	 	 	 	 
	ARTICLE VI PAYMENTS TO THE CERTIFICATEHOLDERS
	 	 	97	 
	Section 6.01 Distributions to the Pool 1 Certificateholders
	 	 	97	 
	Section 6.01A Distributions to the Pool 2 Certificateholders
	 	 	97	 
	Section 6.02 Statements to the Certificateholders
	 	 	86	 
	Section 6.03 Advances by the Servicer
	 	 	109	 
	Section 6.04 Allocation of Realized Losses with Respect to the Pool 1 Certificates
	 	 	109	 
	Section 6.04A Allocation of Realized Losses with Respect to the Pool 2 Certificates
	 	 	109	 
	Section 6.05 Compensating Interest; Allocation of Certain Interest Shortfalls
	 	 	111	 
	Section 6.06 Subordination with respect to the Pool I Certificates
	 	 	 	 
	Section 6.06A Subordination with respect to the Pool 2 Certificates
	 	 	 	 
	Section 6.07 Determination of LIBOR
	 	 	114	 

ii

 

	 	 	 	 	 
	ARTICLE VII REPORTS TO BE PREPARED BY THE SERVICER
	 	 	115	 
	Section 7.01 Servicer Shall Provide Information as Reasonably Required
	 	 	115	 
	Section 7.02 Federal Information Returns and Reports to Certificateholders
	 	 	115	 
	 
	 	 	 	 
	ARTICLE VIII THE DEPOSITOR AND THE SERVICER
	 	 	116	 
	Section 8.01 Indemnification; Third Party Claims
	 	 	116	 
	Section 8.02 Merger or Consolidation of the Depositor or the Servicer
	 	 	116	 
	Section 8.03 Limitation on Liability of the Depositor, the Servicer, the Trustee and Others
	 	 	117	 
	Section 8.04 Depositor and Servicer Not to Resign
	 	 	117	 
	Section 8.05 Successor to the Servicer
	 	 	117	 
	Section 8.06 Maintenance of Ratings
	 	 	119	 
	 
	 	 	 	 
	ARTICLE IX DEFAULT
	 	 	119	 
	Section 9.01 Events of Default
	 	 	119	 
	Section 9.02 Waiver of Defaults
	 	 	120	 
	Section 9.03 Trustee to Act; Appointment of Successor
	 	 	120	 
	Section 9.04 Notification to Certificateholders and the Rating Agencies
	 	 	120	 
	 
	 	 	 	 
	ARTICLE X CONCERNING THE TRUSTEE
	 	 	121	 
	Section 10.01 Duties of Trustee
	 	 	121	 
	Section 10.02 Certain Matters Affecting the Trustee
	 	 	121	 
	Section 10.03 Trustee Not Liable for Certificates or Mortgage Loans
	 	 	122	 
	Section 10.04 Trustee May Own Certificates
	 	 	122	 
	Section 10.05 Fees and Expenses
	 	 	122	 
	Section 10.06 Eligibility Requirements for Trustee
	 	 	123	 
	Section 10.07 Resignation and Removal of the Trustee
	 	 	123	 
	Section 10.08 Successor Trustee
	 	 	124	 
	Section 10.09 Merger or Consolidation of Trustee
	 	 	124	 
	Section 10.10 Appointment of Co-Trustee or Separate Trustee
	 	 	124	 
	Section 10.11 Appointment of Office or Agency
	 	 	125	 
	Section 10.12 Indemnification
	 	 	125	 
	 
	 	 	 	 
	ARTICLE XI TERMINATION
	 	 	126	 
	Section 11.01 Termination
	 	 	126	 
	 
	 	 	 	 
	ARTICLE XII MISCELLANEOUS PROVISIONS
	 	 	128	 
	Section 12.01 Severability of Provisions
	 	 	128	 
	Section 12.02 Limitation on Rights of Certificateholders
	 	 	128	 
	Section 12.03 Amendment
	 	 	128	 

iii

 

	 	 	 	 	 
	Section 12.04 Counterparts
	 	 	129	 
	Section 12.05 Duration of Agreement
	 	 	129	 
	Section 12.06 Governing Law
	 	 	129	 
	Section 12.07 Notices
	 	 	129	 
	Section 12.08 Further Assurances
	 	 	130	 

iv

 

	 	 	 
	EXHIBIT A-1

	 	POOL 1 MORTGAGE LOAN SCHEDULE
	EXHIBIT A-2

	 	POOL 2 MORTGAGE LOAN SCHEDULE
	EXHIBIT B

	 	CONTENTS OF MORTGAGE FILE
	EXHIBIT C

	 	FORM OF CLASS A CERTIFICATE
	EXHIBIT D

	 	FORM OF CLASS M CERTIFICATE
	EXHIBIT E

	 	FORM OF CLASS B CERTIFICATE
	EXHIBIT E-1

	 	FORM OF CLASS CE CERTIFICATE
	EXHIBIT F

	 	FORM OF CLASS A-R CERTIFICATE
	EXHIBIT G

	 	FORM OF TRUSTEE CERTIFICATION
	EXHIBIT H

	 	FORM OF INVESTMENT LETTER
	EXHIBIT I

	 	FORM OF RULE 144A INVESTMENT LETTER
	EXHIBIT J

	 	FORM OF SPECIAL SERVICING AND COLLATERAL FUND AGREEMENT
	EXHIBIT K

	 	FORM OF CLASS A-R TRANSFEREE LETTER
	EXHIBIT K-1

	 	FORM OF CLASS A-R TRANSFEROR LETTER
	EXHIBIT L

	 	REQUEST FOR RELEASE OF DOCUMENTS
	EXHIBIT M

	 	FORM OF TRANSFEREE ERISA REPRESENTATION LETTER
	EXHIBIT N

	 	[RESERVED]
	EXHIBIT O

	 	FORM OF OFFICER’S CERTIFICATE (PAYING AGENT)
	EXHIBIT P

	 	LETTER OF REPRESENTATIONS
	EXHIBIT Q

	 	[RESERVED]
	EXHIBIT R

	 	SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
	EXHIBIT S

	 	FORM OF SARBANES-OXLEY CERTIFICATION
	EXHIBIT T

	 	FORM OF ITEM 1123 CERTIFICATION OF SERVICER
	EXHIBIT U

	 	FORM OF CLASS 2-AV1, CLASS 2-AV2 AND CLASS 2-AV3 YIELD MAINTENANCE AGREEMENTS
	EXHIBIT V

	 	SCHEDULES TO CLASS 2-AV1, CLASS 2-AV2 AND CLASS 2-AV3 YIELD MAINTENANCE AGREEMENTS
	EXHIBIT W

	 	[RESERVED]
	EXHIBIT W-1

	 	FORM OF SWAP CONFIRMATION (POOL 1 CERTIFICATES)
	EXHIBIT W-2

	 	FORM OF SWAP CREDIT SUPPORT ANNEX (POOL 1 CERTIFICATES)
	SCHEDULE X

	 	1934 ACT FORM 8-K REPORTING OBLIGATIONS
	SCHEDULE Y

	 	1934 ACT FORM 10-D REPORTING OBLIGATIONS
	SCHEDULE Z

	 	1934 ACT FORM 10-K REPORTING OBLIGATIONS

v

 

     This Pooling and Servicing Agreement, dated as of July 1, 2007, is executed among Chase
Mortgage Finance Corporation, as depositor (together with its permitted successors and assigns, the
“Depositor”), JPMorgan Chase Bank, N.A. (“Chase”), as servicer (in such capacity, together with its
permitted successors and assigns, the “Servicer”), JPMorgan Chase Bank, N.A., as custodian (in such
capacity, together with its permitted successors and assigns, the “Custodian”), The Bank of New
York Trust Company, N.A., as paying agent (in such capacity, together with its permitted successors
and assigns, the “Paying Agent”) and The Bank of New York Trust Company, N.A., as trustee (in such
capacity, together with its permitted successors and assigns, the “Trustee”).

     In consideration of the premises and the mutual agreements hereinafter set forth, the
Depositor, the Servicer, the Paying Agent, the Custodian and the Trustee agree as follows:

ARTICLE I

DEFINITIONS

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

     ACCEPTED SERVICING PRACTICES: With respect to any Mortgage Loan, those mortgage
servicing practices (including collection procedures) of prudent mortgage banking institutions
which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the
related Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan) is
located, and which are in accordance with FNMA servicing practices and procedures for MBS pool
mortgages (as defined in the FNMA Guides including future updates).

     ACCRUAL PERIOD: The Pool 1 Accrual Period or the Pool 2 Accrual Period.

     ACCOUNTANT’S ATTESTATION: As defined in Section 5.26(b).

     ADDITIONAL FORM 10-D DISCLOSURE: As defined in Section 5.24(b).

     ADDITIONAL FORM 10-K DISCLOSURE: As defined in Section 5.24(d).

     ADVANCE: The aggregate of the advances made by the Servicer with respect to a
particular Distribution Date pursuant to Section 6.03.

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

     AGENCY & TRUST OFFICE: With respect to the Trustee, the office of the Trustee at
which at any particular time its corporate trust business shall be administered, which office at
the date of execution of this instrument is located at 601 Travis, 16th Floor, Houston,
Texas 77002; and, with respect to the Paying Agent, the office of the Paying Agent at which at any
particular time its corporate trust business shall be administered, which office at the date of
execution of this instrument is located at 601 Travis, 16th Floor, Houston, Texas 77002.

     AGREEMENT: This Pooling and Servicing Agreement and all amendments hereof and
supplements hereto.

 

 

     ALLOCATED REALIZED LOSS AMOUNT: With respect to any Class of Pool 1 Certificates or
Pool 2 Certificates and any Distribution Date, an amount equal to any Realized Loss allocated to
that Class of Certificates on that Distribution Date.

     APPRAISED VALUE: The value set forth in an appraisal or recertification document made
in connection with the origination of the related Mortgage Loan as the value of the Mortgaged
Property (or the related residential dwelling unit in the underlying Mortgaged Property, in the
case of a Co-op Loan).

     ASSESSMENT OF COMPLIANCE: As defined in Section 5.26(a).

     ASSIGNMENT OF MORTGAGE: An assignment of the Mortgage, notice of transfer (or UCC-3
assignment (or equivalent instrument) with respect to each Co-op Loan) or equivalent instrument, in
recordable form (except in the case of a Co-op Loan), sufficient under the laws of the jurisdiction
where the related Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op
Loan) is located to reflect of record the sale and assignment of the Mortgage Loan to the Trustee,
which assignment, notice of transfer or equivalent instrument may, if permitted by law, be in the
form of one or more blanket assignments covering Mortgages secured by Mortgaged Properties located
in the same county.

     AUTHENTICATING AGENT: The meaning specified in Section 4.06(a).

     AVAILABLE DISTRIBUTION AMOUNT: The Pool 1 Available Distribution Amount and the Pool
2 Available Distribution Amount, referred to collectively.

     BANKRUPTCY CODE: Title 11 of the United States Code, as the same may be amended from
time to time.

     BENEFICIAL HOLDER: A Person holding a beneficial interest in any Book-Entry
Certificate through a Depository Participant or an Indirect Participant or a Person holding a
beneficial interest in any Definitive Certificate.

     BOOK-ENTRY CERTIFICATES: The Class A Certificates, Class M Certificates and Class B
Certificates, referred to collectively.

     BUSINESS DAY: Any day other than (a) a Saturday or Sunday, (b) a legal holiday in the
States of New York and Louisiana or (c) a day on which banking institutions in the State of New
York are authorized or obligated by law or executive order to be closed.

     CASH LIQUIDATION: Recovery of all cash proceeds by the Servicer with respect to the
liquidation of any Mortgage Loan, including Insurance Proceeds and other payments or recoveries
(whether made at one time or over a period of time) which the Servicer deems to be finally
recoverable, in connection with the sale, assignment or satisfaction of such Mortgage Loan,
trustee’s sale, foreclosure sale or otherwise, but only if title to the related Mortgaged Property
(or stock allocated to a dwelling unit, in the case of a Co-op Loan) was not acquired by
foreclosure or deed in lieu of foreclosure by the Servicer pursuant to Section 5.21.

     CERTIFICATE: Any Class A, Class M, Class B, Class A-R or Class CE Certificate.

     CERTIFICATE ACCOUNT: The account created and maintained pursuant to Section 4.05.

     CERTIFICATEHOLDER or HOLDER: The Person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purposes of giving any consent,
waiver, request or demand pursuant to this Agreement, any Certificate registered in the name of the
Depositor, the Servicer,

2

 

any Sub-Servicer, or any of their respective Affiliates shall be disregarded and the undivided
Percentage Interest evidenced thereby shall not be taken into account in determining whether the
requisite amount of Percentage Interests necessary to effect any such consent, waiver, request or
demand has been obtained. The Trustee and the Paying Agent shall be entitled to conclusively rely
upon the certificate of the Depositor or the Servicer as to the determination of which Certificates
are registered in the name of such Affiliates.

     CERTIFICATE MARGIN: With respect to any Class of Pool 1 Certificates (other than the
Class 1-CE Certificates) and the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates and any
Distribution Date:

	 	 	 	 	 	 	 	 	 
	 	 	Margin On or Before Optional Clean-	 	Margin After Optional Clean-Up
	Class	 	Up Call Date	 	Call Date
	1-A1
	 	 	0.150	%	 	 	0.300	%
	1-A2
	 	 	0.230	%	 	 	0.460	%
	1-A3
	 	 	0.340	%	 	 	0.680	%
	1-A4
	 	 	0.450	%	 	 	0.900	%
	1-M1
	 	 	0.600	%	 	 	0.900	%
	1-M2
	 	 	0.750	%	 	 	1.125	%
	1-M3
	 	 	0.950	%	 	 	1.425	%
	1-M4
	 	 	1.250	%	 	 	1.875	%
	1-M5
	 	 	1.750	%	 	 	2.625	%
	1-M6
	 	 	2.000	%	 	 	3.000	%
	1-B1
	 	 	2.000	%	 	 	3.000	%
	1-B2
	 	 	2.000	%	 	 	3.000	%
	2-AV1
	 	 	0.150	%	 	 	0.300	%
	2-AV2
	 	 	0.230	%	 	 	0.460	%
	2-AV3
	 	 	0.330	%	 	 	0.660	%

     CERTIFICATE OWNER: Any Person who is the beneficial owner of a Book-Entry Certificate
registered in the name of the Depository or its nominee.

     CERTIFICATE RATE: For any of the Pool 1 Certificates, the Pool 1 Certificate Rate or
for any of the Pool 2 Certificates, the Pool 2 Certificate Rate

     CERTIFICATE REGISTER: The register maintained pursuant to Section 4.02.

     CERTIFICATE REGISTRAR: The Person appointed by the Trustee as Certificate Registrar
pursuant to Section 4.05.

     CHASE: JPMorgan Chase Bank, N.A., a national banking association, or its successor in
interest.

     CHF: Chase Home Finance LLC, a Delaware limited liability company, or its successor in
interest.

3

 

     CLASS: With respect to the Pool 1 Certificates, pertaining to the Class 1-A1, Class
1-A2, Class 1-A3, Class 1-A4, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5, Class
1-M6, Class A-R, Class 1-B1, Class 1-B2, Class 1-CE Certificates and any SWAP REMIC Interest,
Lower-Tier I REMIC Interest or Upper-Tier I REMIC Regular Interest, as the case may be. With
respect to the Pool 2 Certificates, pertaining to the Class 2-AV1, Class 2-AV2, Class 2-AV3, Class
2-F4, Class 2-F5, Class 2-F6, Class 2-F7, Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class
2-M5, Class 2-M6, Class 2-B1, Class 2-B2, Class 2-CE Certificates and any Lower-Tier II REMIC
Interest or Upper-Tier II REMIC Regular Interest, as the case may be.

     CLASS A CERTIFICATES: The Class 1-A and Class 2-A Certificates, referred to
collectively.

     CLASS A, CLASS M OR CLASS B: Pertaining to the Class A Certificates, Class M
Certificates or Class B Certificates, as the case may be.

     CLASS A-R CERTIFICATE: The Class A-R Certificate executed by the Depositor and
authenticated by the Trustee (or, if an Authenticating Agent has been appointed pursuant to Section
4.06, the Authenticating Agent), substantially in the form of the Class A-R Certificate set forth
in Exhibit F hereto.

     CLASS A-R RESERVE FUND: The Eligible Account established pursuant to Section 6.01(e).

     CLASS 1-A, CLASS 1-M OR CLASS 1-B: Pertaining to Class 1-A Certificates, Class 1-M
Certificates or Class 1-B Certificates, as the case may be.

     CLASS 1-A CERTIFICATES: The Class 1-A1, Class 1-A2, Class 1-A3 and Class 1-A4
Certificates, referred to collectively.

     CLASS 1-A PERCENTAGE: With respect to any Distribution Date, the percentage of
principal and interest payments that are allocable to the Class 1-A Certificates pursuant to
Section 6.01.

     CLASS 1-A1 CERTIFICATE: Any one of the Class 1-A1 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 1-A2 CERTIFICATE: Any one of the Class 1-A2 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 1-A3 CERTIFICATE: Any one of the Class 1-A3 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 1-A4 CERTIFICATE: Any one of the Class 1-A4 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS B CERTIFICATES: The Class 1-B and Class 2-B Certificates, referred to
collectively.

4

 

     CLASS 1-B CERTIFICATES: The Class 1-B1 and Class 1-B2 Certificates, referred to
collectively.

     CLASS 1-B1 CERTIFICATE: Any one of the Class 1-B1 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class B
Certificate set forth in Exhibit E hereto.

     CLASS 1-B2 CERTIFICATE: Any one of the Class 1-B2 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class B
Certificate set forth in Exhibit E hereto.

     CLASS 1-CE CERTIFICATE: Any one of the Class 1-CE Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class CE
Certificate set forth in Exhibit E-1 hereto.

     CLASS 1-CE DISTRIBUTABLE INTEREST RATE: The excess, if any, of (a) the weighted
average of the interest rates on the Lower-Tier I REMIC Regular Interests (other than the Class
LTI-IO Interest) over (b) two times the weighted average of the interest rates on the Lower-Tier I
REMIC Regular Interests (other than the Class LTI-IO Interest) (treating for purposes of this
clause (b) the interest rate of each of the Lower-Tier I REMIC Marker Classes as being capped at
the interest rate of the Corresponding REMIC Regular Interest of the Corresponding Certificates (as
adjusted, if necessary, to reflect the length of the Pool 1 Accrual Period for the LIBOR
Certificates) and treating the Class LTI-X Interest as being capped at zero). The averages
described in the preceding sentence shall be weighted on the basis of the respective principal
balances of the Lower-Tier REMIC I Regular Interests immediately before any date of determination.

     CLASS 1-CE INTEREST DISTRIBUTION AMOUNT: With respect to any Distribution Date
one-twelfth of the product of (x) a notional amount, equal to the aggregate Stated Principal
Balance of the Pool 1 Mortgage Loans as of the first day of the month immediately preceding the
month of such Distribution Date (after giving effect to Monthly Payments of principal due on such
date), and (y) the Class 1-CE Distributable Interest Rate for such Distribution Date.

     CLASS 1-CE INTEREST SHORTFALL: As to any Distribution Date, the amount by which (i)
the Class 1-CE Interest Distribution Amount on all prior Distribution Dates exceeds (ii) amounts
distributed in respect thereof to the Class 1-CE Certificates on prior Distribution Dates or added
to the aggregate Outstanding Certificate Principal Balance of the Class 1-CE Certificates in
respect of any Overcollateralization Increase Amount (other than amounts so added attributable to
Subsequent Recoveries or proceeds of the Swap Agreement).

     CLASS 1-CE PERCENTAGE: With respect to any Distribution Date, the percentage of
principal and interest payments that are allocable to the Class 1-CE Certificates pursuant to
Section 6.01.

     CLASS M CERTIFICATES: The Class 1-M and Class 2-M Certificates, referred to
collectively.

     CLASS 1-M CERTIFICATES: The Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class
1-M5 and Class 1-M6 Certificates, referred to collectively.

     CLASS 1-M1 CERTIFICATE: Any one of the Class 1-M1 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to

5

 

Section 4.06, the Authenticating Agent), substantially in the form of the Class M Certificate
set forth in Exhibit D hereto.

     CLASS 1-M2 CERTIFICATE: Any one of the Class 1-M2 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class M
Certificate set forth in Exhibit D hereto.

     CLASS 1-M3 CERTIFICATE: Any one of the Class 1-M3 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class M
Certificate set forth in Exhibit D hereto.

     CLASS 1-M4 CERTIFICATE: Any one of the Class 1-M4 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class M
Certificate set forth in Exhibit D hereto.

     CLASS 1-M5 CERTIFICATE: Any one of the Class 1-M5 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class M
Certificate set forth in Exhibit D hereto.

     CLASS 1-M6 CERTIFICATE: Any one of the Class 1-M6 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class M
Certificate set forth in Exhibit D hereto.

     CLASS 2-A, CLASS 2-M OR CLASS 2-B: Pertaining to Class 2-A Certificates, Class 2-M
Certificates or Class 2-B Certificates, as the case may be.

     CLASS 2-A CERTIFICATES: The Class 2-AV1, Class 2-AV2, Class 2-AV3, Class 2-F4, Class
2-F5, Class 2-F6, Class 2-F7 Certificates, referred to collectively.

     CLASS 2-A PERCENTAGE: With respect to any Distribution Date, the percentage of
principal and interest payments that are allocable to the Class 2-A Certificates pursuant to
Section 6.01.

     CLASS 2-AV1 CERTIFICATE: Any one of the Class 2-AV1 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 2-AV2 CERTIFICATE: Any one of the Class 2-AV2 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 2-AV3 CERTIFICATE: Any one of the Class 2-AV3 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

6

 

     CLASS 2-F4 CERTIFICATE: Any one of the Class 2-F4 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 2-F5 CERTIFICATE: Any one of the Class 2-F5 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 2-F6 CERTIFICATE: Any one of the Class 2-F6 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class A
Certificate set forth in Exhibit C hereto.

     CLASS 2-F6 AND CLASS 2-F7 PRIORITY AMOUNT: With respect to the Class 2-F6 and Class
2-F7 Certificates and (I) any Distribution Date prior to the Pool 2 Step-Down Date or on which a
Pool 2 Trigger Event is in effect, the lesser of (x) the Pool 2 Principal Distribution Amount for
such Distribution Date and (y) the product of (a) the Class 2-F6 and Class 2-F7 Priority
Percentage, (b) the Class 2-F6 and Class 2-F7 Shift Percentage and (c) the Pool 2 Principal
Distribution Amount for such Distribution Date, and (II) any Distribution Date on and after the
Pool 2 Step-Down Date and on which a Pool 2 Trigger Event is not in effect, the lesser of (x) the
Pool 2 Senior Principal Distribution Amount for such Distribution Date and (y) the product of (a)
the Class 2-F6 and Class 2-F7 Priority Percentage, (b) the Class 2-F6 and Class 2-F7 Shift
Percentage and (c) the Pool 2 Senior Principal Distribution Amount for such Distribution Date.

     CLASS 2-F6 AND CLASS 2-F7 PRIORITY PERCENTAGE: With respect to any Distribution Date,
the aggregate Outstanding Certificate Principal Balance of the class 2-F6 and Class 2-F7
Certificates divided by the aggregate Outstanding Certificate Principal Balance of the Class 2-A
Certificates, in each case immediately prior to any distributions on that Distribution Date.

     CLASS 2-F6 AND CLASS 2-F7 SHIFT PERCENTAGE: With respect to any Distribution Date,
the percentage indicated below:

	 	 	 	 	 
	Distribution Date Occurring in	 	Shift Percentage
	August 2007 through July 2010
	 	 	0	%
	August 2010 through July 2012
	 	 	45	%
	August 2012 through July 2013
	 	 	80	%
	August 2013 through July 2014
	 	 	100	%
	August 2014 and thereafter
	 	 	300	%

     CLASS 2-F7 CERTIFICATE: Any one of the Class 2-F7 Certificates, executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), senior in right of payment to the Class 2-M
and Class 2-B Certificates, substantially in the form of the Class A Certificate set forth in
Exhibit C hereto.

     CLASS 2-B CERTIFICATES: The Class 2-B1 and Class 2-B2 Certificates, referred to
collectively.

7

 

     CLASS 2-B1 CERTIFICATE: Any one of the Class 2-B1 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class B
Certificate set forth in Exhibit E hereto.

     CLASS 2-B2 CERTIFICATE: Any one of the Class 2-B2 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class B
Certificate set forth in Exhibit E hereto.

     CLASS 2-CE CERTIFICATE: Any one of the Class 2-CE Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), substantially in the form of the Class CE
Certificate set forth in Exhibit E-1 hereto.

     CLASS 2-CE DISTRIBUTABLE INTEREST RATE: The excess, if any, of (a) the weighted
average of the interest rates on the Lower-Tier II REMIC Regular Interests over (b) two times the
weighted average of the interest rates on the Lower-Tier II REMIC Regular Interests (treating for
purposes of this clause (b) the interest rate of each of the Lower-Tier II REMIC Marker Classes as
being capped at the interest rate of the Corresponding REMIC Regular Interest of the Corresponding
Certificates (as adjusted, if necessary, to reflect the length of the Pool 2 Accrual Period for the
LIBOR Certificates) and treating the Class LTII-X Interest as being capped at zero). The averages
described in the preceding sentence shall be weighted on the basis of the respective principal
balances of the Lower-Tier II REMIC Regular Interests immediately before any date of determination.

     CLASS 2-CE INTEREST DISTRIBUTION AMOUNT: With respect to any Distribution Date
one-twelfth of the product of (x) a notional amount, equal to the aggregate Stated Principal
Balance of the Pool 2 Mortgage Loans as of the first day of the month immediately preceding the
month of such Distribution Date (after giving effect to Monthly Payments of principal due on such
date), and (y) the Class 2-CE Distributable Interest Rate for such Distribution Date.

     CLASS 2-CE INTEREST SHORTFALL: As to any Distribution Date, the amount by which (i)
the Class 2-CE Interest Distribution Amount on all prior Distribution Dates exceeds (ii) amounts
distributed in respect thereof to the Class 2-CE Certificates on prior Distribution Dates or added
to the aggregate Outstanding Certificate Principal Balance of the Class 2-CE Certificates in
respect of any Overcollateralization Increase Amount (other than amounts so added attributable to
Subsequent Recoveries or proceeds of the Yield Maintenance Agreements).

     CLASS 2-CE PERCENTAGE: With respect to any Distribution Date, the percentage of
principal and interest payments that are allocable to the Class 2-CE Certificates pursuant to
Section 6.01.

     CLASS LTI-R INTEREST: The sole residual interest in the Lower-Tier I REMIC.

     CLASS LTII-R INTEREST: The sole residual interest in the Lower-Tier II REMIC.

     CLASS 2-M CERTIFICATES: The Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class
2-M5 and Class 2-M6 Certificates, referred to collectively.

     CLASS 2-M1 CERTIFICATE: Any one of the Class 2-M1 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), subordinated in right of payment to the Class
2-A Certificates, substantially in the form of the Class M Certificate set forth in Exhibit D
hereto.

8

 

     CLASS 2-M2 CERTIFICATE: Any one of the Class 2-M2 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), subordinated in right of payment to the Class
2-A Certificates, substantially in the form of the Class M Certificate set forth in Exhibit D
hereto.

     CLASS 2-M3 CERTIFICATE: Any one of the Class 2-M3 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), subordinated in right of payment to the Class
2-A Certificates, substantially in the form of the Class M Certificate set forth in Exhibit D
hereto.

     CLASS 2-M4 CERTIFICATE: Any one of the Class 2-M4 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), subordinated in right of payment to the Class
2-A Certificates, substantially in the form of the Class M Certificate set forth in Exhibit D
hereto.

     CLASS 2-M5 CERTIFICATE: Any one of the Class 2-M5 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), subordinated in right of payment to the Class
2-A Certificates, substantially in the form of the Class M Certificate set forth in Exhibit D
hereto.

     CLASS 2-M6 CERTIFICATE: Any one of the Class 2-M6 Certificates executed by the
Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been appointed
pursuant to Section 4.06, the Authenticating Agent), subordinated in right of payment to the Class
2-A Certificates, substantially in the form of the Class M Certificate set forth in Exhibit D
hereto.

     CLASS CE CERTIFICATES: The Class 1-CE and Class 2-CE Certificates, referred to
collectively.

     CLASS PAYMENT SHORTFALL: As defined in Section 2.04(c)(ii) herein.

     CLASS SW-R INTEREST: The sole residual interest in the SWAP REMIC.

     CLOSING DATE: July 26, 2007.

     CODE: The Internal Revenue Code of 1986, as amended from time to time, and any
successor statutes thereto, and applicable U.S. Department of Treasury temporary or final
regulations promulgated thereunder.

     COLLECTION ACCOUNT: The account created and maintained pursuant to Section 5.08.

     COMMISSION: The United States Securities and Exchange Commission.

     COMPENSATING INTEREST: The Pool 1 Compensating Interest or Pool 2 Compensating
Interest, as the case may be.

     COMPENSATING INTEREST SHORTFALL: The Pool 1 Compensating Interest Shortfall or the
Pool 2 Compensating Interest Shortfall, as the case may be.

     CO-OP LEASE: With respect to a Co-op Loan, the lease with respect to a dwelling unit
occupied by the Mortgagor and relating to the stock allocated to the related dwelling unit.

     CO-OP LOAN: A Mortgage Loan secured by the pledge of stock allocated to a dwelling
unit in a residential cooperative housing corporation and a collateral assignment of the related
Co-op Lease.

9

 

     CORRESPONDING CERTIFICATES: With respect to the Class LTI-1A1 Interest, the Class 1-A1
Certificates. With respect to the Class LTI-1A2 Interest, the Class 1-A2 Certificates. With
respect to the Class LTI-1A3 Interest, the Class 1-A3 Certificates. With respect to the Class
LTI-1A4 Interest, the Class 1-A4 Certificates. With respect to the Class LTI-1M1 Interest, the
Class 1-M1 Certificates. With respect to the Class LTI-1M2 Interest, the Class 1-M2 Certificates.
With respect to the Class LTI-1M3 Interest, the Class 1-M3 Certificates. With respect to the Class
LTI-1M4 Interest, the Class 1-M4 Certificates. With respect to the Class LTI-1M5 Interest, the
Class 1-M5 Certificates. With respect to the Class LTI-1M6 Interest, the Class 1-M6 Certificates.
With respect to the Class LTI-1B1 Interest, the Class 1-B1 Certificates. With respect to the Class
LTI-1B2 Interest, the Class 1-B2 Certificates. With respect to the Class LTII-2AV1 Interest, the
Class 2-AV1 Certificates. With respect to the Class LTII-2AV2 Interest, the Class 2-AV2
Certificates. With respect to the Class LTII-2AV3 Interest, the Class 2-AV3 Certificates. With
respect to the Class LTII-2F4 Interest, the Class 2-F4 Certificates. With respect to the Class
LTII-2F5 Interest, the Class 2-F5 Certificates. With respect to the Class LTII-2F6 Interest, the
Class 2-F6 Certificates. With respect to the Class LTII-2F7 Interest, the Class 2-F7 Certificates.
With respect to the Class LTII-2M1 Interest, the Class 2-M1 Certificates. With respect to the
Class LTII-2M2 Interest, the Class 2-M2 Certificates. With respect to the Class LTII-2M3 Interest,
the Class 2-M3 Certificates. With respect to the Class LTII-2M4 Interest, the Class 2-M4
Certificates. With respect to the Class LTII-2M5 Interest, the Class 2-M5 Certificates. With
respect to the Class LTII-2M6 Interest, the Class 2-M6 Certificates. With respect to the Class
LTII-2B1 Interest, the Class 2-B1 Certificates. With respect to the Class LTII-2B2 Interest, the
Class 2-B2 Certificates.

     CORRESPONDING REMIC REGULAR INTEREST: For each Class of Pool 1 Certificates, the
interest in the Upper-Tier I REMIC listed on the same row in the table entitled “Upper-Tier I
REMIC” in Section 2.04 hereof. For each Class of Pool 2 Certificates, the interest in the
Upper-Tier II REMIC listed on the same row in the table entitled “Upper-Tier II REMIC” in Section
2.04 hereof.

     CUSTODIAN: JPMorgan Chase Bank, N.A., and its permitted successors in interest.

     CUT-OFF DATE: July 1, 2007.

     DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction in the
scheduled Monthly Payment for such Mortgage Loan by a court of competent jurisdiction in a
proceeding under the Bankruptcy Code, other than such a reduction resulting from a Deficient
Valuation.

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

     DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation of the related
Mortgaged Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan) by a court
of competent jurisdiction in an amount less than the then outstanding Principal Balance of the
Mortgage Loan, which valuation results from a proceeding initiated under the Bankruptcy Code.

     DEFINITIVE CERTIFICATES: The Certificates referred to in Section 4.01(c).

     DEPOSITOR: Chase Mortgage Finance Corporation, a Delaware corporation, or its
successor in interest or any successor under this Agreement appointed as herein provided.

     DEPOSITORY: The Depository Trust Company, the nominee of which is Cede & Co.

10

 

     DEPOSITORY AGREEMENT: The agreement referred to in Section 4.01(b).

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

     DETERMINATION DATE: The sixteenth day of the month in which the related Distribution
Date occurs (or, if such sixteenth day is not a Business Day, the preceding Business Day).

     DISQUALIFIED ORGANIZATION: An organization referred to in Section 860E(e)(5) of the
Code.

     DISTRIBUTION DATE: The 25th day of any month, or if such 25th day is not a Business
Day, the first Business Day immediately following, beginning with August 27, 2007.

     DUE DATE: The first day of each month, being the day of the month on which each
Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.

     DUE PERIOD: With respect to any Distribution Date, the period from the second day of
the month preceding the month in which such Distribution Date occurs through the first day of the
month in which such Distribution Date occurs.

     ELIGIBLE ACCOUNT: An account that is (i) maintained with a depository institution the
short-term unsecured debt obligations of which are rated by each Rating Agency in one of its three
highest rating categories, or (ii) maintained with the corporate trust department of a national
bank or banking corporation which (a) has a rating of at least Baa3 or P-3 by Moody’s and (b) is
either Chase or is the corporate trust department of a national bank or banking corporation which
has a rating of at least A-1 by S&P and F1 by Fitch, or (iii) otherwise acceptable to each Rating
Agency without reduction or withdrawal of the rating of any Class of Certificates, as evidenced by
a letter from each Rating Agency. If any Eligible Account ceases to meet the requirements listed
above, a new Eligible Account must be established in replacement thereof within thirty (30) days.

     ELIGIBLE INVESTMENTS: One or more of the following:

     (i) obligations of, or guaranteed as to principal and interest by, the United States or
obligations of any agency or instrumentality thereof when such obligations are backed by the full
faith and credit of the United States; provided that any such obligation held as a “cash flow
investment” within the meaning of section 860G(a)(6) of the Code shall mature before the next
Distribution Date;

     (ii) repurchase agreements on obligations specified in clause (i) maturing not more than two
months from the date of acquisition thereof, provided that the long-term unsecured obligations of
the party agreeing to repurchase such obligations are at the time rated by each Rating Agency with
its highest rating and the short-term debt obligations of the party agreeing to repurchase are
rated with one of the two highest ratings by Moody’s and A-1+ by S&P;

     (iii) federal funds, certificates of deposit, time deposits and bankers’ acceptances (other
than bankers’ acceptances issued by Chase or any of its Affiliates) (which shall each have an
original maturity of not more than 60 days and, in the case of bankers’ acceptances, shall in no
event have an original maturity of more than 365 days) of any United States depository institution
or trust company incorporated under the laws of the United States or any state, provided that the
long-term unsecured debt obligations of such depository institution or trust company at the date of
acquisition thereof have been rated by each

11

 

Rating Agency with its highest rating and the short-term obligations of such depository
institution or trust company are rated A-1+ by S&P and P-1 by Moody’s;

     (iv) commercial paper (other than commercial paper issued by Chase or any of its Affiliates)
(having original maturities of not more than 365 days) of any corporation incorporated under the
laws of the United States or any state thereof which on the date of acquisition has been rated by
each Rating Agency in its highest short-term unsecured commercial paper rating category; provided
that such commercial paper shall have a remaining maturity of not more than 45 days;

     (v) units of taxable money market funds (including those for which the Trustee or the Servicer
or any Affiliate thereof acts as sponsor, administrator or the like and receives compensation with
respect to such investment) which may be 12b-1 funds, as contemplated under the rules promulgated
by the Commission under the Investment Company Act of 1940, as amended, and which funds have been
rated by each Rating Agency in its highest rating category or which have been designated in writing
by each Rating Agency as Eligible Investments with respect to this definition; or

     (vi) other obligations or securities (other than investments or obligations of Chase or any of
its Affiliates) acceptable to each Rating Agency rating the Certificates as an Eligible Investment
hereunder and will not result in a reduction or withdrawal in the then current rating of any Class
of Certificates, as evidenced by a letter to such effect from each Rating Agency;

     provided that no such instrument shall be an Eligible Investment if such instrument evidences
either (a) a right to receive only interest payments with respect to the obligations underlying
such instrument, or (b) both principal and interest payments derived from obligations underlying
such instrument where the interest and principal payments with respect to such instrument provide a
yield to maturity of greater than 120% of the yield to maturity at par of such underlying
obligations; and provided further that no such instrument shall be purchased above par; and
provided further that each Eligible Investment must be a “permitted investment” within the meaning
of Section 860G(a)(5) of the Code.

     ERISA: The Employee Retirement Income Security Act of 1974, as amended from time to
time, and any successor statutes thereto, and applicable U.S. Department of Labor temporary or
final regulations promulgated thereunder.

     ERISA QUALIFYING UNDERWRITING: A best efforts or firm commitment underwriting or
private placement that would satisfy the requirements of Prohibited Transaction Exemption 2002-19,
67 Fed. Reg. 14797 (March 28, 2002), as amended, or any substantially similar administrative
exemption granted by the U.S. Department of Labor to Chase, except, in relevant part, for the
requirement that the certificates have received a rating at the time of acquisition that is in one
of the three (or four, in the case of a “designated transaction”) highest generic rating categories
by at least one of the Rating Agencies.

     ERISA RESTRICTED CERTIFICATE: Any Class 1-CE Certificate, any Class 2-CE Certificate
and any other Certificate, as long as the acquisition and holding of such Certificate is not
covered by and exempt under Prohibited Transaction Exemption 2002-19, 67 Fed. Reg. 14797 (March 28,
2002), as amended, or any substantially similar administrative exemption granted by the U.S.
Department of Labor to Chase.

     ESCROW ACCOUNT: The account or accounts created and maintained pursuant to Section
5.10.

     ESCROW PAYMENTS: The amounts constituting applicable ground rents, taxes,
assessments, water rates, Standard Hazard Policy premiums and other payments required to be
escrowed by the Mortgagor with the mortgagee pursuant to a Mortgage Loan.

12

 

     EVENT OF DEFAULT: Any of the events specified in Section 9.01.

     EXCEPTION REPORT: With respect to either Mortgage Pool 1 or Mortgage Pool 2, the
report of the Custodian or Trustee, as applicable, referred to in Section 2.02.

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

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

     FDIC: The Federal Deposit Insurance Corporation or any successor organization.

     FHLMC: The Federal Home Loan Mortgage Corporation or any successor organization.

     FIDELITY BOND: The fidelity bond and errors and omissions insurance to be maintained
by the Servicer pursuant to Section 5.19.

     FINAL SCHEDULED DISTRIBUTION DATE: The Distribution Date in August 2037.

     FITCH: Fitch, Inc. or its successor in interest.

     FNMA: The Federal National Mortgage Association, or any successor organization.

     FNMA GUIDES: The FNMA Sellers’ Guide and the FNMA Servicers’ Guide, and all
amendments or additions thereto.

     INDIRECT PARTICIPANT: A broker, dealer, bank or other financial institution or other
Person that clears through or maintains a custodial relationship with a Depository Participant,
either directly or indirectly.

     INSURANCE PROCEEDS: Proceeds paid by any insurer pursuant to any insurance policy
covering a Mortgage Loan, net of costs of collecting such proceeds and net of amounts released to
the Mortgagor or applied to the restoration of the Mortgaged Property (or in the underlying
Mortgaged Property, in the case of a Co-op Loan).

     INSURED EXPENSES: Expenses covered by any insurance policy.

     INTEREST DISTRIBUTION AMOUNT: With respect to each Distribution Date and each Class
of Certificates entitled to distributions of interest, an amount equal to the amount of interest
accrued during the related Accrual Period at the related Certificate Rate on the Outstanding
Certificate Principal Balance of such Class of Certificates for such Distribution Date, in each
case, reduced by any Net Interest Shortfalls allocated to such Class of Certificates as such
shortfalls are allocated.

     INTEREST REMITTANCE AMOUNT: With respect to Mortgage Pool 1, the portion of the Pool
1 Available Distribution Amount not consisting of the Pool 1 Principal Remittance Amount and, with
respect to Mortgage Pool 2, the portion of the Pool 2 Available Distribution Amount not consisting
of the Pool 2 Principal Remittance Amount.

13

 

     INTEREST SHORTFALL: As to any Class of Certificates and any Distribution Date, (i)
the amount by which the Interest Distribution Amount for such Class on all prior Distribution Dates
exceeds (ii) amounts distributed in respect thereof to such Class on prior Distribution Dates.

     LATE COLLECTIONS: With respect to any Mortgage Loan, all amounts received during any
Due Period, whether as late payments of Monthly Payments or as Liquidation Proceeds, condemnation
proceeds, Insurance Proceeds, Subsequent Recoveries or with respect to a disposition of a Mortgaged
Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan) which has been
acquired by foreclosure or deed in lieu of foreclosure or otherwise, which represent late payments
or collections of Monthly Payments due but delinquent for a previous Due Period and not previously
recovered.

     LIBOR: With respect to any Distribution Date and the Certificate Rates on the Pool 1
Certificates (other than the Class 1-CE Certificates) and the Class 2-AV1, Class 2-AV2 and Class
2-AV3 Certificates, LIBOR as determined in accordance with Section 6.07.

     LIBOR BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a day on
which banking institutions in the city of London, England are required or authorized by law to be
closed.

     LIBOR CERTIFICATES: The Pool 1 Certificates (other than the Class 1-CE Certificates)
and the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates.

     LIQUIDATED MORTGAGE LOAN: Any Mortgage Loan (a) as to which the Servicer has
determined that all amounts which it expects to recover from or on account of such Mortgage Loan or
property acquired in respect thereof have been recovered, (b) as to which a Cash Liquidation has
taken place or (c) with respect to which the Mortgaged Property (or stock allocated to a dwelling
unit, in the case of a Co-op Loan) has been acquired by foreclosure or deed in lieu of foreclosure
and a disposition (the term disposition shall include, for purposes of a repurchase pursuant to
Section 11.01, any repurchase of a Mortgaged Property (or stock allocated to a dwelling unit, in
the case of a Co-op Loan) pursuant to such Section) of such Mortgaged Property (or stock allocated
to a dwelling unit, in the case of a Co-op Loan) has occurred.

     LIQUIDATION EXPENSES: Expenses which are incurred by the Servicer or any Sub-Servicer
in connection with the liquidation of any defaulted Mortgage Loan or property acquired in respect
thereof including, without limitation, legal fees and expenses, any unreimbursed amount expended by
the Servicer pursuant to Sections 5.16 and 5.21 respecting the related Mortgage Loan and any
related and unreimbursed expenditures for real estate property taxes or for property restoration or
preservation.

     LIQUIDATION PROCEEDS: Cash (including Insurance Proceeds) received by the Servicer in
connection with the liquidation of any Mortgage Loan or Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) acquired in respect thereof, whether through the sale
or assignment of such Mortgage Loan (other than pursuant to Section 5.21), trustee’s sale,
foreclosure sale or otherwise, or the sale of the Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) if the Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) is acquired in satisfaction of the Mortgage Loan other
than amounts required to be paid to the Mortgagor pursuant to law or the terms of the applicable
Mortgage Note.

     LOAN-TO-VALUE RATIO: The fraction, expressed as a percentage, the numerator of which
is the principal amount of the related Mortgage Loan at the time of origination (or, (i) for
purposes of Section 5.15, at the time of determination and (ii) for purposes of a Mortgage Loan
with respect to which a conversion from adjustable rate to fixed rate has occurred, at the time of
initial origination) and the denominator of which is the Appraised Value of the related Mortgaged
Property (or applicable dwelling unit, in the case of a Co-op Loan) at the time of origination or,
in the case of a Mortgage Loan financing

14

 

the acquisition of the Mortgaged Property (or applicable dwelling unit, in the case of a Co-op
Loan), the sales price of the Mortgaged Property (or applicable dwelling unit, in the case of a
Co-op Loan), if such sales price is less than such appraised value; provided however, certain
Mortgage Loans financing the acquisition of a Mortgaged Property in New York will be based solely
on the appraised value.

     LOWER-TIER I REMIC: The Lower-Tier I REMIC as described in Section 2.04.

     LOWER-TIER I REMIC INTEREST: Any one of the Classes of Lower-Tier I REMIC Interests
described in Section 2.04.

     LOWER-TIER I REMIC MARKER CLASS: Any one of the Classes of Lower-Tier I REMIC Regular
Interests other than the Class LTI-X Interest and other than the Class LTI-IO Interest.

     LOWER-TIER I REMIC REGULAR INTEREST: Any one of the Lower-Tier I REMIC Interests
other than the Class LTI-R Interest.

     LOWER-TIER II REMIC: The Lower-Tier II REMIC as described in Section 2.04.

     LOWER-TIER II REMIC INTEREST: Any one of the Classes of Lower-Tier II REMIC Interests
described in Section 2.04.

     LOWER-TIER II REMIC MARKER CLASS: Any one of the Classes of Lower-Tier II REMIC
Regular Interests other than the Class LTII-X Interest .

     LOWER-TIER II REMIC REGULAR INTEREST: Any one of the Lower-Tier II REMIC Interests
other than the Class LTII-R Interest.MERS: Mortgage Electronic Registration Systems, Inc.,
a Delaware corporation, or any successor in interest thereto.

     MERS MORTGAGE LOAN: Any Mortgage Loan as to which the related Mortgage, or an
Assignment of Mortgage, has been or will be recorded in the name of MERS or otherwise assigned to
MERS, as agent for the holder from time to time of the Mortgage Note.

     MODIFIED MORTGAGE LOAN: Any Mortgage Loan which the Servicer has modified pursuant to
Section 5.01.

     MONTHLY PAYMENT: The minimum required monthly payment of principal and interest due
on a Mortgage Loan as specified in the Mortgage Note for any Due Date (before any adjustment to
such scheduled amount by reason of any bankruptcy or similar proceeding or any moratorium or
similar waiver or grace period). Monthly Payments shall be deemed due on an Outstanding Mortgage
Loan until such time as it becomes a Liquidated Mortgage Loan.

     MOODY’S: Moody’s Investors Service, Inc. or its successor in interest.

     MORTGAGE: With respect to a Mortgage Loan that is not a Co-op Loan, the mortgage,
deed of trust or other instrument creating a first lien or a first priority ownership interest in
an estate in fee simple in real property securing a Mortgage Note. With respect to a Co-op Loan,
the security agreement creating a security interest in the stock allocated to a dwelling unit in a
residential cooperative housing corporation and pledged to secure such Co-op Loan and the related
Co-op Lease.

     MORTGAGE FILE: As to each Mortgage Loan, the items referred to in Exhibit B annexed
hereto.

     MORTGAGE LOAN: An individual mortgage loan and all rights with respect thereto,
evidenced by a Mortgage and a Mortgage Note, sold and assigned by the Depositor to the Trustee and
which is subject to this Agreement and included in the Trust Fund. The Mortgage Loans originally
sold and

15

 

subject to this Agreement are identified on the Mortgage Loan Schedules attached hereto as
Exhibit A-1 and Exhibit A-2.

     MORTGAGE NOTE: The note or other evidence of the indebtedness of a Mortgagor secured
by a Mortgage.

     MORTGAGE POOL: Any of Mortgage Pool 1 or Mortgage Pool 2.

     MORTGAGE POOL 1: The pool of Mortgage Loans set forth on Exhibit A-1.

     MORTGAGE POOL 1 PRINCIPAL BALANCE: As of any date of determination, the aggregate of
the Principal Balances of each Outstanding Mortgage Loan in Mortgage Pool 1 on such date of
determination less the principal portion of any Monthly Payment due on Mortgage Pool 1 but not paid
with respect to which an Advance has not been made, initially $473,047,388.

     MORTGAGE POOL 2: The pool of Mortgage Loans set forth on Exhibit A-1.

     MORTGAGE POOL 2 PRINCIPAL BALANCE: As of any date of determination, the aggregate of
the Principal Balances of each Outstanding Mortgage Loan in Mortgage Pool 2 on such date of
determination less the principal portion of any Monthly Payment due on Mortgage Pool 2 but not paid
with respect to which an Advance has not been made, initially $480,002,175.

     MORTGAGE RATE: With respect to each Mortgage Loan, the per annum rate of interest
borne by the Mortgage Loan, as specified in the Mortgage Note. The Mortgage Rate for any Mortgage
Loan shall be zero with respect to the period prior to the period during which interest accrues
with respect to such Mortgage Loan’s first Monthly Payment.

     MORTGAGED PROPERTY: The property securing a Mortgage Note.

     MORTGAGOR: The obligor on a Mortgage Note.

     NET INTEREST SHORTFALL: With respect to any Distribution Date and (x) the Pool 1
Certificates, an amount equal to the sum of: (i) any Pool 1 Compensating Interest Shortfalls for
that Distribution Date, and (ii) Relief Act Reductions allocable to the Pool 1 Certificates for
such Distribution Date and (y) the Pool 2 Certificates, an amount equal to the sum of: (i) any Pool
2 Compensating Interest Shortfalls for that Distribution Date, and (ii) Relief Act Reductions
allocable to the Pool 2 Certificates for such Distribution Date.

     NET LIQUIDATION PROCEEDS: As to any Liquidated Mortgage Loan, Liquidation Proceeds
net of Liquidation Expenses.

     NET MORTGAGE RATE: With respect to each Mortgage Loan, a per annum rate of interest
for the applicable period equal to the Mortgage Rate less (i) the Servicing Fee Rate and (ii) in
the case of a substitute Mortgage Loan, any excess of the Mortgage Rate on the substitute Mortgage
Loan over the Mortgage Rate on the removed Mortgage Loan.

     NET RATE: The per annum rate set forth in footnote 3 to the description of the
Lower-Tier I REMIC in Section 2.04 herein (such rate being based on the weighted average of the
interest rates on the SWAP REMIC Regular Interests as adjusted and as set forth in such footnote).

     NET SWAP PAYMENT: With respect to any Distribution Date, any net payment (other than
a Swap Termination Payment or Defaulted Swap Termination Payment) made by the Supplemental Interest
Trust to the Swap Counterparty on the related Fixed Rate Payer Payment Date (as defined in the Swap

16

 

Agreement) or made by the Swap Counterparty to the Supplemental Interest Trust on the related
Floating Rate Payer Payment Date (as defined in the Swap Agreement), each determined in accordance
with the Swap Agreement. In each case, the Net Swap Payment shall not be less than zero.

     NON-MERS MORTGAGE LOAN: Any Mortgage Loan other than a MERS Mortgage Loan.

     NONRECOVERABLE ADVANCE: Any Advance previously made or proposed to be made in respect
of a Mortgage Loan by the Servicer pursuant to Section 6.03 which, in the good faith judgment of
the Servicer, will not or, in the case of a proposed Advance, would not, ultimately be recoverable
by the Servicer from Late Collections or otherwise. The determination by the Servicer that it has
made, or would be making, a Nonrecoverable Advance shall be evidenced by a certificate of a
Servicing Officer of the Servicer delivered to the Trustee, any co-trustee and the Depositor and
detailing the reasons for such determination.

     OFFICERS’ CERTIFICATE: A certificate signed by two of the Chairman of the Board, the
Vice Chairman of the Board, the President or a Vice President, the Treasurer or the Secretary or
one of the Assistant Treasurers or Assistant Secretaries or any other duly authorized officer of
the Depositor or the Servicer, and delivered to the Trustee.

     OPINION OF COUNSEL: A written opinion of counsel, who may be counsel for the
Depositor or the Servicer and who is reasonably acceptable to the Trustee.

     ORIGINAL CERTIFICATE PRINCIPAL BALANCE: With respect to any Class of Certificates
(other than the Class 1-CE and Class 2-CE Certificates), the amount specified for such Class in
Section 4.01(d), with respect to the Class 1-CE Certificates, the initial Pool 1 Overcollateralized
Amount and with respect to the Class 2-CE Certificates, the initial Pool 2 Overcollateralized
Amount.

     OUTSTANDING CERTIFICATE PRINCIPAL BALANCE: (I) with respect to any Class of Pool 1
Certificates and any Distribution Date, the Original Certificate Principal Balance of such Class
minus the sum of (i) any distributions of principal made on such Class prior to such
Distribution Date and (ii) any Realized Losses allocated to such Class prior to such Distribution
Date; provided, however, that on each Distribution Date, after all distributions of principal on
such Distribution Date, an amount equal to the Pool 1 Overcollateralization Increase Amount for
such Distribution Date will be added to the aggregate Outstanding Certificate Principal Balance of
the Class 1-CE Certificates (on a pro rata basis); provided, further, however that on any
Distribution Date on which a Subsequent Recovery with respect to Mortgage Pool 1 is distributed,
the Outstanding Certificate Principal Balance of any Class of Pool 1 Certificates then outstanding
for which any Realized Loss has been applied will be increased, in order of seniority (with the
Class 1-A4 Certificates being deemed to be more junior than the other Class 1-A Certificates), by
an amount equal to the lesser of (i) the amount the Class of Certificates has been reduced by any
Realized Losses which have not been previously offset by any Subsequent Recovery pursuant to this
proviso and (ii) the total amount of any Subsequent Recovery distributed on such date to Pool 1
Certificateholders (as reduced (x) by increases in the Outstanding Certificate Principal Balance of
more senior Classes of Pool 1 Certificates on such Distribution Date and (y) to reflect a
proportionate amount of what would (but for this clause (y)) have been the increases in the
Outstanding Certificate Principal Balance of Classes of Pool 1 Certificates of equal seniority on
such Distribution Date), and (II) with respect to any Class of Pool 2 Certificates and any
Distribution Date, the Original Certificate Principal Balance of such Class minus the sum
of (i) any distributions of principal made on such Class prior to such Distribution Date and (ii)
any Realized Losses allocated to such Class prior to such Distribution Date; provided, however,
that on each Distribution Date, after all distributions of principal on such Distribution Date, an
amount equal to the Pool 2 Overcollateralization Increase Amount for such Distribution Date will be
added to the aggregate Outstanding Certificate Principal Balance of the Class 2-CE Certificates (on
a pro rata basis); provided, further, however that on any Distribution Date on which a Subsequent

17

 

Recovery with respect to Mortgage Pool 2 is distributed, the Outstanding Certificate Principal
Balance of any Class of Pool 2 Certificates then outstanding for which any Realized Loss has been
applied will be increased, in order of seniority (with the Class 2-F7 Certificates being deemed to
be more junior than the other Class 2-A Certificates), by an amount equal to the lesser of (i) the
amount the Class of Certificates has been reduced by any Realized Losses which have not been
previously offset by any Subsequent Recovery pursuant to this proviso and (ii) the total amount of
any Subsequent Recovery distributed on such date to Pool 2 Certificateholders (as reduced (x) by
increases in the Outstanding Certificate Principal Balance of more senior Classes of Pool 2
Certificates on such Distribution Date and (y) to reflect a proportionate amount of what would (but
for this clause (y)) have been the increases in the Outstanding Certificate Principal Balance of
Classes of Pool 2 Certificates of equal seniority on such Distribution Date).

     OUTSTANDING MORTGAGE LOAN: As to any Distribution Date, a Mortgage Loan which was not
paid in full during the related or any previous Principal Prepayment Period, which did not become a
Liquidated Mortgage Loan during the related or any previous Principal Prepayment Period and which
was not repurchased under Sections 2.02, 3.01, 5.01, 5.21 or 11.01 during the related or any
previous Principal Prepayment Period.

     PASS-THRU ENTITY: A “Pass-Thru Entity” as defined in Section 860E(e)(6) of the Code.

     PAYING AGENT: The Person appointed by the Trustee as Paying Agent pursuant to Section
4.05.

     PERCENTAGE INTEREST: As to any Certificate, the percentage interest evidenced thereby
in distributions required to be made hereunder, such percentage interest being equal, with respect
to any Class, to the percentage obtained by dividing the Outstanding Certificate Principal Balance
of such Certificate by the aggregate of the Outstanding Certificate Principal Balances of all the
Certificates of such Class and with respect to all Certificates, the percentage obtained by
dividing the Outstanding Certificate Principal Balance of such Certificate by the aggregate of the
Outstanding Certificate Principal Balances of the Certificates relating to the same Mortgage Pool.

     PERMITTED ACTIVITIES: The primary activities of the Trust created pursuant to this
Agreement which shall be: (i) holding Mortgage Loans transferred from the Depositor and other
assets of the Trust Fund, including any credit enhancement and passive derivative financial
instruments that pertain to beneficial interests issued or sold to parties other than the
Depositor, its Affiliates, or its agents; (ii) issuing certificates and other interests in the
assets of the Trust Fund; (iii) receiving collections on the Mortgage Loans and making payments on
such certificates and interests in accordance with the terms of this Agreement; and (iv) engaging
in other activities that are necessary or incidental to accomplish these limited purposes, which
activities cannot be contrary to the status of the Trust Fund as a qualified special purpose entity
under existing accounting literature.

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

     PLAN: As defined in Section 4.02(d)(i).

     POOL 1 ACCRUAL PERIOD: With respect to any Distribution Date and the Lower-Tier I
REMIC Interests and any Class of Pool 1 Certificates and their Corresponding REMIC Regular
Interests, the period from and including the 25th day of the month immediately preceding the
related Distribution Date (or in the case of the first Distribution Date, July 31, 2007) to and
including the 24th day of the month of such Distribution Date; and with respect to the SWAP REMIC
Regular Interests and any

18

 

Distribution Date, the calendar month immediately preceding the month in which such Distribution
Date occurs. Interest shall accrue on all Classes of Pool 1 Certificates, their Corresponding
REMIC Regular Interests and on all Lower-Tier I REMIC Interests on the basis of a 360-day year and
the actual number of days in each Pool 1 Accrual Period, and all calculations of interest on the
SWAP REMIC Regular Interests will be made on the basis of a 360-day year consisting of twelve
30-day months.

     POOL 1 AVAILABLE DISTRIBUTION AMOUNT: With respect to any Distribution Date, the
total amount of all cash received by the Paying Agent on the Pool 1 Mortgage Loans or otherwise for
deposit into the Certificate Account in respect of such Distribution Date, including (1) all
scheduled installments of interest (net of the related Servicing Fees) and principal collected on
the Pool 1 Mortgage Loans and due during the Due Period related to such Distribution Date, together
with any Advances in respect thereof, (2) all Insurance Proceeds, Liquidation Proceeds and
Subsequent Recoveries from the Pool 1 Mortgage Loans, in each case for such Distribution Date, (3)
all partial or full Principal Prepayments, together with any accrued interest thereon, identified
as having been received from the related Pool 1 Mortgage Loans during the related Prepayment
Period, (4) any amounts received from the Servicers in respect of Interest Shortfalls with respect
to the Pool 1 Mortgage Loans, (5) the aggregate Purchase Price of all Defective Mortgage Loans in
Mortgage Pool 1 purchased from the Trust Fund during the related Prepayment Period and (6) on the
Distribution Date on which Mortgage Pool 1 is to be terminated pursuant to Article XI hereof, any
amounts relating to the termination of Mortgage Pool 1 deposited in the Collection Account pursuant
to Article XI hereof, minus:

     (a) all related charges and other amounts payable or reimbursable to the Servicer, the Paying
Agent or the Trustee under this Agreement related to Mortgage Pool 1;

     (b) in the case of (2), (3), (4) and (5) above, any related unreimbursed expenses incurred by
the Servicer in connection with a liquidation or foreclosure and any unreimbursed Advances or
Servicing Advances due to the Servicer related to Mortgage Pool 1;

     (c) any related unreimbursed Nonrecoverable Advances due to the Servicer related to Mortgage
Pool 1; and

     (d) in the case of (1) through (4) above, any related amounts collected which are determined
to be attributable to a subsequent Due Period or Principal Prepayment Period related to Mortgage
Pool 1.

     POOL 1 BASIC PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution Date, the
excess of (i) the Pool 1 Principal Remittance Amount for such Distribution Date over (ii) the Pool
1 Overcollateralization Release Amount, if any, for such Distribution Date.

     POOL 1 BASIS RISK SHORTFALL CARRYOVER AMOUNTS: For any Distribution Date and any
Class of Pool 1 Certificates, an amount equal to the sum of (i) the excess, if any, of (x) the
amount of interest such Class of Pool 1 Certificates would have accrued on such Distribution Date
had its Certificate Rate for such Distribution Date been equal to the lesser of (a) LIBOR plus the
related Certificate Margin and (b) 11.50% per annum, over (y) the amount of interest such Class of
Pool 1 Certificates accrued for such Distribution Date at the Certificate Rate and (ii) the unpaid
portion of any Pool 1 Basis Risk Shortfall Carryover Amount for such Class of Pool 1 Certificates
from prior Distribution Dates together with interest accrued on such unpaid portion for the most
recently ended Pool 1 Accrual Period at the lesser of (a) LIBOR plus the Certificate Margin for
such Class of Pool 1 Certificates for the related Pool 1 Accrual Period and (b) 11.50% per annum.

     POOL 1 CERTIFICATE: Any mortgage pass-through certificate issued pursuant to this
Agreement, evidencing a beneficial ownership interest in that portion of the Trust Fund related to
the Pool 1 Mortgage Loans set forth on the Pool 1 Mortgage Loan Schedule, authenticated by the
Trustee (or, if an

19

 

Authenticating Agent has been appointed pursuant to Section 4.06 of the Agreement, the
Authenticating Agent), including any Class 1-A, Class 1-M, Class 1-B or Class 1-CE Certificate.

     POOL 1 CERTIFICATE RATE: With respect to each Class of Pool 1 Certificates (other than
the Class 1-CE Certificates) and any Distribution Date, the least of (a) LIBOR plus the related
Certificate Margin, (b) the Pool 1 Net WAC (adjusted for the actual number of days in the related
Pool 1 Accrual Period), and (c) 11.50% per annum.

     POOL 1 COMPENSATING INTEREST: As defined in Section 6.05(a).

     POOL 1 COMPENSATING INTEREST SHORTFALL: As defined in Section 6.05(b).

     POOL 1 MORTGAGE LOAN: A mortgage loan transferred and assigned to the Trustee
pursuant to this Agreement and held as a part of the Trust Fund, as identified in the Pool 1
Mortgage Loan Schedule, including a mortgage loan the property securing which has become an REO
Property.

     POOL 1 MORTGAGE LOAN SCHEDULE: The schedule of Mortgage Loans attached hereto as
Exhibit A-1 as it may be amended in accordance with Section 3.03.

     POOL 1 NET MONTHLY EXCESS CASHFLOW: With respect to any Distribution Date and
Mortgage Pool 1, the sum of (a) any Pool 1 Overcollateralization Release Amount and (b) the excess
of (x) the Pool 1 Available Distribution Amount for such Distribution Date over (y) the sum for
such Distribution Date of (A) the aggregate of the Interest Distribution Amounts for the Class 1-A,
Class 1-M and Class 1-B Certificates, (B) the Interest Shortfall for the Class 1-A Certificates,
(C) Net Swap Payments made by the Supplemental Interest Trust and any Swap Termination Payments
(other than Defaulted Swap Termination Payments) and (D) the Pool 1 Principal Remittance Amount.

     POOL 1 NET WAC: As of any Distribution Date, the weighted average of the Mortgage
Rates of the Pool 1 Mortgage Loans as of the first day of the calendar month immediately preceding
the calendar month of such Distribution Date, net of the sum of (i) the Servicing Fee Rate and (ii)
the quotient of (x) the product of (1) 12 and (2) any Net Swap Payment or Swap Termination Payment
(other than Defaulted Swap Termination Payments) made to the Swap Counterparty for such
Distribution Date divided by (y) the aggregate of the Stated Principal Balances of the Pool 1
Mortgage Loans as of the beginning of the related Due Period, weighted on the basis of their Stated
Principal Balances as of that date.

     POOL 1 OPTIONAL CLEAN-UP CALL DATE: With respect to Mortgage Pool 1, the first
Distribution Date following a Due Date on which the aggregate unpaid Principal Balance of all Pool
1 Mortgage Loans is less than 10% of the aggregate unpaid Principal Balance of the Pool 1 Mortgage
Loans on the Cut-off Date.

     POOL 1 OVERCOLLATERALIZATION DEFICIENCY AMOUNT: With respect to any Distribution Date,
the amount, if any, by which the Pool 1 Overcollateralization Target Amount exceeds the Pool 1
Overcollateralized Amount on such Distribution Date (after giving effect to distributions in
respect of the Pool 1 Principal Remittance Amount on such Distribution Date).

     POOL 1 OVERCOLLATERALIZATION FLOOR: With respect to any Distribution Date, an amount
equal to the product of (i) 0.50% and (ii) the aggregate Stated Principal Balance of the Pool 1
Mortgage Loans as of the Cut-off Date.

     POOL 1 OVERCOLLATERALIZATION INCREASE AMOUNT: With respect to any Distribution Date,
the lesser of (x) the Pool 1 Net Monthly Excess Cashflow for such Distribution Date and (y) the
Pool 1 Overcollateralization Deficiency Amount for such Distribution Date.

     POOL 1 OVERCOLLATERALIZATION RELEASE AMOUNT: With respect to any Distribution Date,
the lesser of (x) the Pool 1 Principal Remittance Amount for such Distribution Date

20

 

and (y) the excess, if any, of (1) the Pool 1 Overcollateralized Amount for such Distribution
Date over (2) the Pool 1 Overcollateralization Target Amount for such Distribution Date.

     POOL 1 OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any Distribution Date, (1)
prior to the Pool 1 Step-Down Date, 1.35% of the aggregate Stated Principal Balance of the Pool 1
Mortgage Loans as of the Cut-off Date, (2) on or after the Pool 1 Step-Down Date, provided a Pool 1
Trigger Event is not in effect, the greater of (x) 2.70% of the aggregate Stated Principal Balance
of the Pool 1 Mortgage Loans as of the last day of the related Due Period and (y) the Pool 1
Overcollateralization Floor, and (3) on or after the Pool 1 Step-Down Date, if a Pool 1 Trigger
Event is in effect, the Pool 1 Overcollateralization Target Amount for the immediately preceding
Distribution Date.

     POOL 1 OVERCOLLATERALIZED AMOUNT: With respect to any Distribution Date, the amount,
if any, by which (x) the aggregate Stated Principal Balance of the Pool 1 Mortgage Loans as of the
last day of the related Due Period exceeds (y) the sum of the aggregate Outstanding Certificate
Principal Balance of the Pool 1 Certificates (excluding the Class 1-CE Certificates) as of such
Distribution Date (assuming that 100% of the Pool 1 Principal Remittance Amount is applied as a
principal payment on such Distribution Date).

     POOL 1 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution
Date, the sum of (i) the Pool 1 Basic Principal Distribution Amount for such Distribution Date and
(ii) the Pool 1 Overcollateralization Increase Amount for such Distribution Date.

     POOL 1 PRINCIPAL REMITTANCE AMOUNT: With respect to any Distribution Date, the
portion of the Pool 1 Available Distribution Amount equal to the sum of (i) all scheduled payments
of principal collected or advanced on the Pool 1 Mortgage Loans by the Servicer that were due
during the related Due Period, (ii) the principal portion of each full and partial principal
prepayment made by a borrower on a Pool 1 Mortgage Loan during the related Principal Prepayment
Period, (iii) each other unscheduled collection, including insurance proceeds and net liquidation
proceeds representing or allocable to recoveries of principal of the Pool 1 Mortgage Loans received
during the related Prepayment Period, including any Subsequent Recoveries on the Pool 1 Mortgage
Loans, (iv) the principal portion of the purchase price of each Pool 1 Mortgage Loan repurchased by
the Seller due to a defect in documentation or a material breach of a representation and warranty
with respect to such Pool 1 Mortgage Loan or, in the case of a permitted substitution of a
defective Pool 1 Mortgage Loan, the amount representing any principal adjustment in connection with
any such replaced Pool 1 Mortgage Loan with respect to the related Principal Prepayment Period and
(v) in connection with any optional purchase of the Pool 1 Mortgage Loans, the principal portion of
the Purchase Price.

     POOL 1 RATE ADJUSTMENT DATE: The second LIBOR Business Day prior to the first day of
each Pool 1 Accrual Period after the initial Pool 1 Accrual Period.

     POOL 1 REALIZED LOSS INTEREST SHORTFALL: As defined in Section 6.05(c).

     POOL 1 SENIOR ENHANCEMENT PERCENTAGE: For any Distribution Date, the percentage
obtained by dividing (x) the sum of (i) the aggregate Outstanding Certificate Principal Balance of
the Class 1-M and Class 1-B Certificates (after giving effect to the distribution of the Pool 1
Principal Distribution Amount on such Distribution Date) and (ii) the Pool 1 Overcollateralized
Amount (after giving effect to the distribution of the Pool 1 Principal Distribution Amount on such
Distribution Date) by (y) the aggregate Stated Principal Balance of the Pool 1 Mortgage Loans as of
the last day of the related Due Period.

     POOL 1 SENIOR PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an amount
equal to the excess of (x) the aggregate Outstanding Certificate Principal Balance of the Class 1-

21

 

A Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product
of (1) 86.60% and (2) the aggregate Stated Principal Balance of the Pool 1 Mortgage Loans as of the
last day of the related Due Period and (B) the aggregate Stated Principal Balance of the Pool 1
Mortgage Loans as of the last day of the related Due Period minus the Pool 1 Overcollateralization
Floor.

     POOL 1 STEP-DOWN DATE: The earlier to occur of (1) the Distribution Date on which the
aggregate Outstanding Certificate Principal Balance of the Class 1-A Certificates has been reduced
to zero and (2) the later to occur of (x) the Distribution Date occurring in August 2010 and (y)
the first Distribution Date on which the Pool 1 Senior Enhancement Percentage is greater than or
equal to 13.40% (for the purpose of this definition only, the Pool 1 Senior Enhancement Percentage
shall be calculated prior to the distribution of the Pool 1 Principal Distribution Amount to the
Class 1-M and Class 1-B Certificates).

     POOL 1 SUBORDINATED CERTIFICATES: The Class 1-M and Class 1-B Certificates, referred
to collectively.

     POOL 1 SUBORDINATED PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, with
respect to any Class of Class 1-M or Class 1-B Certificates, an amount equal to the excess of (x)
the sum of (1) the Outstanding Certificate Principal Balance of such Class of Certificates
immediately prior to such Distribution Date, (2) the aggregate Outstanding Certificate Principal
Balance of the Class 1-A Certificates (after taking into account the payment of the Pool 1 Senior
Principal Distribution Amount on such Distribution Date) and (3) the aggregate Outstanding
Certificate Principal Balance of each other Class of Class 1-M or Class 1-B Certificates with a
lower numerical class designation than such Class of Certificates (after taking into account the
payment of the related Pool 1 Subordinated Principal Distribution Amount to each such Class on such
Distribution Date) (for this purpose, each Class of Class 1-M Certificates will be deemed to have a
lower numerical class designation than each Class of Class 1-B Certificates) over (y) the lesser of
(A) the product of (1) 100% minus the related Pool 1 Targeted Credit Enhancement Percentage and (2)
the aggregate Stated Principal Balance of the Pool 1 Mortgage Loans as of the last day of the
related Due Period and (B) the aggregate Stated Principal Balance of the Pool 1 Mortgage Loans as
of the last day of the related Due Period minus the Pool 1 Overcollateralization Floor.

     POOL 1 TARGETED CREDIT ENHANCEMENT PERCENTAGE: With respect to any Class of Pool 1
Certificates, the percentages set forth opposite such Class in the table below:

	 	 	 	 	 
	Class	 	Targeted Credit Enhancement Percentage
	Class 1-M1
	 	 	9.80	%
	Class 1-M2
	 	 	8.00	%
	Class 1-M3
	 	 	6.90	%
	Class 1-M4
	 	 	5.90	%
	Class 1-M5
	 	 	5.10	%
	Class 1-M6
	 	 	4.40	%
	Class 1-B1
	 	 	3.70	%
	Class 1-B2
	 	 	2.70	%

22

 

     POOL 1 TRIGGER EVENT: A Pool 1 Trigger Event is in effect with respect to
any Distribution Date on or after the Pool 1 Step-Down Date if either (i) the percentage obtained
by dividing (x) the aggregate Stated Principal Balance of the Pool 1 Mortgage Loans that are 60
days or more delinquent (including, for this purpose, Mortgage Loans in REO, foreclosure or
bankruptcy status) as of the last day of the prior calendar month by (y) the aggregate Stated
Principal Balance of the Pool 1 Mortgage Loans as of the last day of the prior calendar month
exceeds 40.00% of the Pool 1 Senior Enhancement Percentage for such Distribution Date or (ii) the
cumulative Realized Losses on the Pool 1 Mortgage Loans (after reduction for all Subsequent
Recoveries related to the Pool 1 Mortgage Loans received from the Cut-off Date through the last day
of the related Due Period) as a percentage of the original aggregate Stated Principal Balance of
the Pool 1 Mortgage Loans as of the Cut-off Date is greater than the percentage set forth in the
following table:

	 	 	 	 	 
	Range of Distribution Dates	 	Percentage
	August 2009 – July 2010
	 	 	0.25	%*
	August 2010 – July 2011
	 	 	0.60	%*
	August 2011 – July 2012
	 	 	1.00	%*
	August 2012 – July 2013
	 	 	1.45	%*
	August 2013 and thereafter
	 	 	1.70	%

 

			
	*	 	The percentages indicated are the percentages applicable for the first Distribution Date
in the corresponding range of Distribution Dates. The percentage for each succeeding
Distribution Date in the range shall increase incrementally by 1/12th of the positive
difference between the percentage applicable to the first Distribution Date in that range and
the percentage applicable to the first Distribution Date in the succeeding range.

     POOL 1 UNPAID REALIZED LOSS AMOUNT: For any Class of Class 1-A, Class 1-M, Class
1-B or Class 1-CE Certificates and any Distribution Date, the unpaid portion of the aggregate
Allocated Realized Loss Amount allocated to that Class, as reduced by an amount equal to any
increase in the related Outstanding Certificate Principal Balance due to (i) the receipt of
Subsequent Recoveries on the Pool 1 Mortgage Loans or (ii) distributions of proceeds of the Swap
Agreement.

     POOL 2 ACCRUAL PERIOD: With respect to any Distribution Date and any Class of Pool 2
Certificates (other than the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates) and their
Corresponding REMIC Regular Interests, the calendar month immediately preceding the month in which
such Distribution Date occurs. With respect to any Distribution Date and the Class 2-AV1, Class
2-AV2 and Class 2-AV3 Certificates, their Corresponding REMIC Regular Interests and the Lower-Tier
II REMIC Interests, the period from and including the 25th day of the month immediately preceding
such Distribution Date (or in the case of the first Distribution Date, July 31, 2007), to and
including the 24th day of the month of such Distribution Date. Interest shall accrue on
the Pool 2 Certificates (other than the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates)and
their Corresponding REMIC Regular Interests on the basis of a 360-day year consisting of twelve
30-day months. Interest shall accrue on the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates
and the Lower-Tier II REMIC Interests on the basis of a 360-day year and the actual number of days in each Pool 2 Accrual Period.

     POOL 2 AVAILABLE DISTRIBUTION AMOUNT: With respect to any Distribution Date, the
total amount of all cash received by the Paying Agent on the Pool 2 Mortgage Loans or otherwise for
deposit into the Certificate Account in respect of such Distribution Date, including (1) all
scheduled installments of interest (net of the related Servicing Fees) and principal collected on
the Pool 2 Mortgage Loans and due during the Due Period related to such Distribution Date, together
with any Advances in

23

 

respect thereof, (2) all Insurance Proceeds, Liquidation Proceeds and
Subsequent Recoveries from the Pool 2 Mortgage Loans, in each case for such Distribution Date, (3)
all partial or full Principal
Prepayments, together with any accrued interest thereon, identified as having been received from
the related Pool 2 Mortgage Loans during the related Prepayment Period, (4) any amounts received
from the Servicers in respect of Interest Shortfalls with respect to the Pool 2 Mortgage Loans, (5)
the aggregate Purchase Price of all Defective Mortgage Loans in Mortgage Pool 2 purchased from the
Trust Fund during the related Prepayment Period and (6) on the Distribution Date on which Mortgage
Pool 2 is to be terminated pursuant to Article XI hereof, any amounts related to the termination of
Mortgage Pool 2 deposited in the Collection Account pursuant to Article XI hereof, minus:

     (e) all related charges and other amounts payable or reimbursable to the Servicer, the Paying
Agent or the Trustee under this Agreement related to Mortgage Pool 2;

     (f) in the case of (2), (3), (4) and (5) above, any related unreimbursed expenses incurred by
the Servicer in connection with a liquidation or foreclosure and any unreimbursed Advances or
Servicing Advances due to the Servicer related to Mortgage Pool 2;

     (g) any related unreimbursed Nonrecoverable Advances due to the Servicer related to Mortgage
Pool 2; and

     (h) in the case of (1) through (4) above, any related amounts collected which are determined
to be attributable to a subsequent Due Period or Principal Prepayment Period related to Mortgage
Pool 2.

     POOL 2 BASIC PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution Date, the
excess of (i) the Pool 2 Principal Remittance Amount for such Distribution Date over (ii) the Pool
2 Overcollateralization Release Amount, if any, for such Distribution Date.

     POOL 2 BASIS RISK SHORTFALL CARRYOVER AMOUNTS: For any Distribution Date and (A) the
Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates, an amount equal to the sum of (i) the
excess, if any, of (x) the amount of interest such Class of Certificates would have accrued on such
Distribution Date had its Certificate Rate for such Distribution Date been equal to the lesser of
(a) LIBOR plus the related Certificate Margin and (b) 11.50% per annum, over (y) the amount of
interest such Class of Certificates accrued for such Distribution Date at the Certificate Rate and
(ii) the unpaid portion of any Pool 2 Basis Risk Shortfall Carryover Amount for such Class of
Certificates from prior Distribution Dates together with interest accrued on such unpaid portion
for the most recently ended Accrual Period at the lesser of (a) LIBOR plus the related Certificate
Margin for such class of Certificates for the related Accrual Period and (b) 11.50% per annum; and
(B) any Class of Pool 2 Certificates other than the Class 2-AV1, Class 2-AV2 and Class 2-AV3
Certificates, an amount equal to the sum of (i) the excess, if any, of (x) the amount of interest
such Class of Certificates would have accrued on such Distribution Date had its Certificate Rate
for such Distribution Date been equal to the Certificate Rate (calculated without giving effect to
any limitation on the Certificate Rate based upon Pool 2 Net WAC) for such Class of Certificates,
over (y) the amount of interest such Class of Certificates accrued for such Distribution Date at
the Certificate Rate and (ii) the unpaid portion of any Pool 2 Basis Risk Shortfall Carryover
Amount for such Class of Certificates from prior Distribution Dates together with interest accrued
on such unpaid portion for the most recently ended Accrual Period at the Certificate Rate
(calculated without giving effect to any limitation on the Certificate Rate based upon Pool 2 Net
WAC) for such Class of Certificates.

     POOL 2 CERTIFICATE: Any mortgage pass-through certificate issued pursuant to this
Agreement, evidencing a beneficial ownership interest in that portion of the Trust Fund related to
the Pool 2 Mortgage Loans set forth on the Pool 2 Mortgage Loan Schedule, authenticated by the
Trustee (or, if an Authenticating Agent has been appointed pursuant to Section 4.06 of the
Agreement, the Authenticating

24

 

Agent), including any Class 2-A, Class 2-M, Class 2-B or Class 2-CE
Certificate.

     POOL 2 CERTIFICATE RATE: With respect to the Class 2-AV1, Class 2-AV2 and Class 2-AV3
Certificates and any Distribution Date, the least of (a) LIBOR plus the related Certificate Margin,
(b) the Pool 2 Net WAC (adjusted for the actual number of days in the related Pool 2 Accrual
Period), and (c) 11.50% per annum. With respect to each Class of Pool 2 Certificates (other than
the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates) and any Distribution Date, the lesser of
(a) the Pool 2 Net WAC and (b) the percentages set forth opposite such Class in the table below:

	 	 	 	 	 	 	 	 	 
	 	 	Pool 2 Certificate Rate On or Before	 	Pool 2 Certificate Rate After Pool
	Class	 	Pool 2 Optional Clean-Up Call Date	 	2 Optional Clean-Up Call Date
	2-F4
	 	 	6.350	%	 	 	6.850	%
	2-F5
	 	 	6.450	%	 	 	6.950	%
	2-F6
	 	 	6.250	%	 	 	6.750	%
	2-F7
	 	 	6.450	%	 	 	6.950	%
	2-M1
	 	 	6.450	%	 	 	6.700	%
	2-M2
	 	 	6.450	%	 	 	6.700	%
	2-M3
	 	 	6.450	%	 	 	6.700	%
	2-M4
	 	 	6.450	%	 	 	6.700	%
	2-M5
	 	 	6.450	%	 	 	6.700	%
	2-M6
	 	 	6.450	%	 	 	6.700	%
	2-B1
	 	 	6.450	%	 	 	6.700	%
	2-B2
	 	 	6.450	%	 	 	6.700	%

     POOL 2 COMPENSATING INTEREST: As defined in Section 6.05(a).

     POOL 2 COMPENSATING INTEREST SHORTFALL: As defined in Section 6.05(b).

     POOL 2 MORTGAGE LOAN: A mortgage loan transferred and assigned to the Trustee
pursuant to this Agreement and held as a part of the Trust Fund, as identified in the Pool 2
Mortgage Loan Schedule, including a mortgage loan the property securing which has become an REO
Property.

     POOL 2 MORTGAGE LOAN SCHEDULE: The schedule of Mortgage Loans attached hereto as
Exhibit A-2 as it may be amended in accordance with Section 3.03.

     POOL 2 NET MONTHLY EXCESS CASHFLOW: With respect to any Distribution Date and
Mortgage Pool 2, the sum of (a) any Pool 2 Overcollateralization Release Amount and (b) the excess
of (x) the Pool 2 Available Distribution Amount for such Distribution Date over (y) the sum for
such Distribution Date of (A) the aggregate of the Interest Distribution Amounts for the Class 2-A,
Class 2-M and Class 2-B Certificates, (B) the Interest Shortfall for the Class 2-A Certificates and
(C) the Pool 2 Principal Remittance Amount.

     POOL 2 NET WAC: As of any Distribution Date, the weighted average of the Mortgage
Rates of the Pool 2 Mortgage Loans as of the first day of the calendar month immediately preceding
the calendar month of such Distribution Date, net of the Servicing Fee Rate divided by the
aggregate of the Stated Principal Balances of the Pool 2 Mortgage Loans as of the beginning of the
related Due Period, weighted on the basis of their Stated Principal Balances as of that date.

     POOL 2 OPTIONAL CLEAN-UP CALL DATE: With respect to Mortgage Pool 2, the first
Distribution Date following a Due Date on which the aggregate unpaid Principal Balance of all Pool
2

25

 

Mortgage Loans is less than 10% of the aggregate unpaid Principal Balance of the Pool 2
Mortgage Loans on the Cut-off Date.

     POOL 2 OVERCOLLATERALIZATION DEFICIENCY AMOUNT: With respect to any Distribution Date,
the amount, if any, by which the Pool 2 Overcollateralization Target Amount exceeds the Pool 2
Overcollateralized Amount on such Distribution Date (after giving effect to distributions in
respect of the Pool 2 Principal Remittance Amount on such Distribution Date).

     POOL 2 OVERCOLLATERALIZATION FLOOR: With respect to any Distribution Date, the
greater of (A) an amount equal to the product of (i) 0.50% and (ii) the aggregate Stated Principal
Balance of the Pool 2 Mortgage Loans as of the Cut-off Date and (B) the current Stated Principal
Balance of the Mortgage Loan with the largest Stated Principal Balance in Mortgage Pool 2 divided
by two.

     POOL 2 OVERCOLLATERALIZATION INCREASE AMOUNT: With respect to any Distribution Date,
the lesser of (x) the Pool 2 Net Monthly Excess Cashflow for such Distribution Date and (y) the
Pool 2 Overcollateralization Deficiency Amount for such Distribution Date.

     POOL 2 OVERCOLLATERALIZATION RELEASE AMOUNT: With respect to any Distribution Date,
the lesser of (x) the Pool 2 Principal Remittance Amount for such Distribution Date and (y) the
excess, if any, of (1) the Pool 2 Overcollateralized Amount for such Distribution Date over (2) the
Pool 2 Overcollateralization Target Amount for such Distribution Date.

     POOL 2 OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any Distribution Date, (1)
prior to the Pool 2 Step-Down Date, 1.40% of the aggregate Stated Principal Balance of the Pool 2
Mortgage Loans as of the Cut-off Date, (2) on or after the Pool 2 Step-Down Date, provided a Pool 2
Trigger Event is not in effect, the greater of (x) 2.80% of the aggregate Stated Principal Balance
of the Pool 2 Mortgage Loans as of the last day of the related Due Period and (y) the Pool 2
Overcollateralization Floor, and (3) on or after the Pool 2 Step-Down Date, if a Pool 2 Trigger
Event is in effect, the Pool 2 Overcollateralization Target Amount for the immediately preceding
Distribution Date.

     POOL 2 OVERCOLLATERALIZED AMOUNT: With respect to any Distribution Date, the amount,
if any, by which (x) the aggregate Stated Principal Balance of the Pool 2 Mortgage Loans as of the
last day of the related Due Period exceeds (y) the sum of the aggregate Outstanding Certificate
Principal Balance of the Pool 2 Certificates (excluding the Class 2-CE Certificates) as of such
Distribution Date (assuming that 100% of the Pool 2 Principal Remittance Amount is applied as a
principal payment on such Distribution Date).

     POOL 2 PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution Date, the sum
of (i) the Pool 2 Basic Principal Distribution Amount for such Distribution Date and (ii) the Pool
2 Overcollateralization Increase Amount for such Distribution Date.

     POOL 2 PRINCIPAL REMITTANCE AMOUNT: With respect to any Distribution Date, the
portion of the Pool 2 Available Distribution Amount equal to the sum of (i) all scheduled payments
of principal collected or advanced on the Pool 2 Mortgage Loans by the Servicer that were due
during the related Due Period, (ii) the principal portion of each full and partial principal
prepayment made by a borrower on a Pool 2 Mortgage Loan during the related Principal Prepayment
Period, (iii) each other unscheduled collection, including insurance proceeds and net liquidation
proceeds representing or allocable to recoveries of principal of the Pool 2 Mortgage Loans received
during the related Prepayment Period, including any Subsequent Recoveries on the Pool 2 Mortgage
Loans, (iv) the principal portion of the purchase price of each Pool 2 Mortgage Loan repurchased by
the Seller due to a defect in documentation or a material breach of a representation and warranty
with respect to such Pool 2 Mortgage Loan or, in the case of a permitted substitution of a
defective Pool 2 Mortgage Loan, the amount

26

 

representing any principal adjustment in connection with any such replaced Pool 2 Mortgage
Loan with respect to the related Principal Prepayment Period and (v) in connection with any
optional purchase of the Pool 2 Mortgage Loans, the principal portion of the Purchase Price.

     POOL 2 RATE ADJUSTMENT DATE: The second LIBOR Business Day prior to the first day of
each Pool 2 Accrual Period after the initial Pool 2 Accrual Period.

     POOL 2 REALIZED LOSS INTEREST SHORTFALL: As defined in Section 6.05(c).

     POOL 2 SENIOR ENHANCEMENT PERCENTAGE: For any Distribution Date, the percentage
obtained by dividing (x) the sum of (i) the aggregate Outstanding Certificate Principal Balance of
the Class 2-M and Class 2-B Certificates (after giving effect to the distribution of the Pool 2
Principal Distribution Amount on such Distribution Date) and (ii) the Pool 2 Overcollateralized
Amount (after giving effect to the distribution of the Pool 2 Principal Distribution Amount on such
Distribution Date) by (y) the aggregate Stated Principal Balance of the Pool 2 Mortgage Loans as of
the last day of the related Due Period.

     POOL 2 SENIOR PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an amount
equal to the excess of (x) the aggregate Outstanding Certificate Principal Balance of the Class 2-A
Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of
(1) 87.10% and (2) the aggregate Stated Principal Balance of the Pool 2 Mortgage Loans as of the
last day of the related Due Period and (B) the aggregate Stated Principal Balance of the Pool 2
Mortgage Loans as of the last day of the related Due Period minus the Pool 2 Overcollateralization
Floor.

     POOL 2 STEP-DOWN DATE: The earlier to occur of (1) the Distribution Date on which the
aggregate Outstanding Certificate Principal Balance of the Class 2-A Certificates has been reduced
to zero and (2) the later to occur of (x) the Distribution Date occurring in August 2010 and (y)
the first Distribution Date on which the Pool 2 Senior Enhancement Percentage is greater than or
equal to 12.90% (for the purpose of this definition only, the Pool 2 Senior Enhancement Percentage
shall be calculated prior to the distribution of the Pool 2 Principal Distribution Amount to the
Class 2-M and Class 2-B Certificates).

     POOL 2 SUBORDINATED CERTIFICATES: The Class 2-M and Class 2-B Certificates, referred
to collectively.

     POOL 2 SUBORDINATED PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, with
respect to any Class of Class 2-M or Class 2-B Certificates, an amount equal to the excess of (x)
the sum of (1) the Outstanding Certificate Principal Balance of such Class of Certificates
immediately prior to such Distribution Date, (2) the aggregate Outstanding Certificate Principal
Balance of the Class 2-A Certificates (after taking into account the payment of the Pool 2 Senior
Principal Distribution Amount on such Distribution Date) and (3) the aggregate Outstanding
Certificate Principal Balance of each other Class of Class 2-M or Class 2-B Certificates with a
lower numerical class designation than such Class of Certificates (after taking into account the
payment of the related Pool 2 Subordinated Principal Distribution Amount to each such Class on such
Distribution Date) (for this purpose, each Class of Class 2-M Certificates will be deemed to have a
lower numerical class designation than each Class of Class 2-B Certificates) over (y) the lesser of
(A) the product of (1) 100% minus the related Pool 2 Targeted Credit Enhancement Percentage and (2)
the aggregate Stated Principal Balance of the Pool 2 Mortgage Loans as of the last day of the
related Due Period and (B) the aggregate Stated Principal Balance of the Pool 2 Mortgage Loans as
of the last day of the related Due Period minus the Pool 2 Overcollateralization Floor.

     POOL 2 TARGETED CREDIT ENHANCEMENT PERCENTAGE: With respect to any Class of Pool 2
Certificates, the percentages set forth opposite such Class in the table below:

27

 

	 	 	 	 	 
	Class	 	Targeted Credit Enhancement Percentage
	Class 2-M1
	 	 	9.70	%
	Class 2-M2
	 	 	8.10	%
	Class 2-M3
	 	 	6.90	%
	Class 2-M4
	 	 	5.90	%
	Class 2-M5
	 	 	5.20	%
	Class 2-M6
	 	 	4.50	%
	Class 2-B1
	 	 	3.80	%
	Class 2-B2
	 	 	2.80	%

     POOL 2 TRIGGER EVENT: A Pool 2 Trigger Event is in effect with respect to
any Distribution Date on or after the Pool 2 Step-Down Date if either (i) the percentage obtained
by dividing (x) the aggregate Stated Principal Balance of the Pool 2 Mortgage Loans that are 60
days or more delinquent (including, for this purpose, Mortgage Loans in REO, foreclosure or
bankruptcy status) as of the last day of the prior calendar month by (y) the aggregate Stated
Principal Balance of the Pool 2 Mortgage Loans as of the last day of the prior calendar month
exceeds 50.00% of the Pool 2 Senior Enhancement Percentage for such Distribution Date or (ii) the
cumulative Realized Losses on the Pool 2 Mortgage Loans (after reduction for all Subsequent
Recoveries received from the Cut-off Date through the last day of the related Due Period) as a
percentage of the original aggregate Stated Principal Balance of the Pool 2 Mortgage Loans as of
the Cut-off Date is greater than the percentage set forth in the following table:

	 	 	 	 	 
	Range of Distribution Dates	 	Percentage
	August 2009 – July 2010
	 	 	0.25	%*
	August 2010 – July 2011
	 	 	0.55	%*
	August 2011 – July 2012
	 	 	0.95	%*
	August 2012 – July 2013
	 	 	1.40	%*
	August 2013 and thereafter
	 	 	1.65	%

 

			
	*	 	The percentages indicated are the percentages applicable for the first Distribution Date
in the corresponding range of Distribution Dates. The percentage for each succeeding
Distribution Date in the range shall increase incrementally by 1/12th of the positive
difference between the percentage applicable to the first Distribution Date in that range and
the percentage applicable to the first Distribution Date in the succeeding range.

     POOL 2 UNPAID REALIZED LOSS AMOUNT: For any Class of Class 2-A, Class 2-M, Class
2-B or Class 2-CE Certificates and any Distribution Date, the unpaid portion of the aggregate
Allocated Realized Loss Amount allocated to that Class, as reduced by an amount equal to any
increase in the related Outstanding Certificate Principal Balance due to (i) the receipt of
Subsequent Recoveries on the Pool 2 Mortgage Loans or (ii) distributions of proceeds of the Yield
Maintenance Agreements.

28

 

     PRIMARY INSURANCE POLICY: Each primary policy of mortgage guaranty insurance or any
replacement policy therefor referred to in Section 5.15 hereof.

     PRINCIPAL BALANCE: At the time of any determination, the principal balance of a
Mortgage Loan remaining to be paid at the close of business on the Cut-off Date (after deduction of
all principal payments due on or before the Cut-off Date whether or not paid) (or, in the case of a
substitute Mortgage Loan included in the Trust Fund pursuant to Section 3.03, the close of business
as of the date of substitution) reduced by all amounts previously distributed to Certificateholders
that are allocable to payments of principal on such Mortgage Loan (including the principal portion
of Advances of the Servicer made pursuant to Section 6.03).

     PRINCIPAL PREPAYMENT: Any payment or other recovery of principal on a Mortgage Loan
(other than Late Collections) which is received other than as part of a monthly payment; provided,
however, that the term Principal Prepayment does not include Insurance Proceeds, Liquidation
Proceeds, Subsequent Recoveries, condemnation awards or other cash proceeds from a source other
than the applicable Mortgagor.

     PRINCIPAL PREPAYMENT PERIOD: With respect to any Distribution Date, the period
beginning on the first day of the month preceding the month in which such Distribution Date occurs
and ending on the last day of such month.

     PRINCIPAL REMITTANCE AMOUNT: The Pool 1 Principal Remittance Amount or Pool 2
Principal Remittance Amount.

     PTCE: As defined in Section 4.02(d)(i).

     PURCHASE PRICE: With respect to any Mortgage Loan required to be purchased on any
date pursuant to Section 2.02, 3.01, 5.01, 5.21 or 11.01, an amount equal to the sum of (a) 100% of
the Principal Balance thereof, (b) unpaid accrued interest at the Mortgage Rate thereon from the
Due Date on which interest was last paid by the Mortgagor or advanced by the Servicer to the Due
Date next following the date of repurchase, (c) the aggregate of any unreimbursed Advances and any
unreimbursed Servicing Advances and (d) any unreimbursed costs, penalties and/or damages incurred
by the Trust Fund and/or the Trustee in connection with any violation relating to such Mortgage
Loan of any predatory or abusive lending law.

     QUALIFIED INSURER: An insurance company duly qualified as such under the laws of the
states in which the Mortgaged Properties are located, duly authorized and licensed in such states
to transact the applicable insurance business and to write the insurance provided, approved as an
insurer by FNMA and FHLMC and whose claims-paying ability is rated in the two highest rating
categories by S&P and Moody’s with respect to primary mortgage insurance and in the two highest
rating categories for general policyholder rating and financial performance index rating by A.M.
Best Company or its successor in interest with respect to hazard and flood insurance.

     RATE ADJUSTMENT DATE: The second LIBOR Business Day prior to the first day of each
Accrual Period after the initial Accrual Period.

     RATE CAP CEILING: With respect to the Yield Maintenance Agreements and the applicable
Distribution Date, the rate specified in Exhibit V under the heading “Rate Cap Ceiling” for that
Distribution Date.

     RATING AGENCY: Any nationally recognized statistical rating organization, or its
successor, that rated one or more Classes of Certificates at the request of the Depositor at the
time of the initial

29

 

issuance of the Certificates. If such organization or a successor is no longer
in existence, “Rating Agency” shall be such nationally recognized statistical rating organization,
or other comparable Person, designated by the Depositor, notice of which designation shall be given
to the Trustee and the Servicer.
References herein to the two highest long-term debt rating categories of a Rating Agency shall
mean AA or better in the case of S&P and Fitch Ratings and Aa or better in the case of Moody’s.

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

     REALIZED LOSS INTEREST SHORTFALL: A Pool 1 Realized Loss Interest Shortfall or Pool 2
Realized Loss Interest Shortfall, as the case may be.

     RECORD DATE: With respect to the Pool 1 Certificates (other than the Class 1-CE
Certificates) and the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates, the close of business
on the Business Day immediately preceding the Distribution Date. With respect to the Pool 2
Certificates other than the Class 2-AV1, Class 2-AV2 and Class 2-AV3 Certificates, Class A-R and
Class 1-CE Certificates, the close of business on the last Business Day of the calendar month
preceding the month of the related Distribution Date.

     REFERENCE BANKS: Four major banks in the London interbank market selected by the
Counterparty.

     REGULATION AB: Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification
and interpretation as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the
staff of the Commission, or as may be provided by the Commission or its staff from time to time.

     RELATED CERTIFICATEHOLDER: With respect to Mortgage Pool 1, the Holder of a Pool 1
Certificate and, with respect to Mortgage Pool 2, the Holder of a Pool 2 Certificate.

     RELATED CERTIFICATES: With respect to each Class of REMIC Regular Interests, the
related Certificates set forth in the table under “Upper-Tier I REMIC” or “Upper-Tier II REMIC” in
Section 2.04.

     RELEVANT MORTGAGE LOAN: The meaning specified in Section 5.01.

     RELIEF ACT: The Servicemembers Civil Relief Act or the California Military and
Veterans Code, as amended, or any other similar state or local law.

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

30

 

     REMIC: A “real estate mortgage investment conduit,” as such term is defined in
Section 860D of the Code. References herein to “a REMIC” or “the REMICs” shall mean one or all, as
the context requires, of the REMICs created hereunder.

     REMIC I NET WAC: As of any Distribution Date, the weighted average of the Net
Mortgage Rates of the Mortgage Loans in Mortgage Pool 1 as of the first day of the calendar month
immediately preceding the calendar month of such Distribution Date, weighted on the basis of their
Stated Principal Balances as of that date.

     REMIC II NET WAC: As of any Distribution Date, the product of (i) the weighted
average of the Net Mortgage Rates of the Mortgage Loans in Mortgage Pool 2 as of the first day of
the calendar month immediately preceding the calendar month of such Distribution Date, weighted on
the basis of their Stated Principal Balances as of that date and (ii) a fraction the numerator of
which is 30 and the denominator of which is the actual number of days in the Pool 2 Accrual Period
for the LIBOR Certificates.

     REMIC PASS-THROUGH RATE: In the case of a Class of the Class 1-A, Class 1-M and Class
1-B Certificates, the Upper-Tier I REMIC Net WAC Cap for the Corresponding REMIC Regular Interest.
In the case of a Class of the Class 2-A, Class 2-M and Class 2-B Certificates, the Upper-Tier II
REMIC Net WAC Cap for the Corresponding REMIC Regular Interest.

     REMIC POOL: Each of the SWAP REMIC, the Lower-Tier I REMIC, the Upper-Tier I REMIC,
the Lower-Tier II REMIC and the Upper-Tier II REMIC.

     REMIC PROVISIONS: Provisions of the federal income tax law relating to REMICs which
appear at Sections 860A through 860G of Part IV of Subchapter M of Chapter 1 of Subtitle A of the
Code, and related provisions, and U.S. Department of the Treasury temporary, proposed or final
regulations and rulings promulgated thereunder, as the foregoing are in effect (or with respect to
proposed regulations, are proposed to be in effect) from time to time.

     REMIC REGULAR INTEREST: Each of the interests in the Upper-Tier I REMIC or Upper-Tier
II REMIC as set forth in Section 2.04 other than the Residual I Interest and Residual II Interest.

     REMIC REPORTING AGENT: As defined in Section 7.02(b).

     REMIC SWAP RATE: For each Distribution Date (and the related Pool 1 Accrual Period),
a per annum rate equal to the Fixed Rate under the Swap Agreement for such Distribution Date, as
set forth in the Swap Agreement.

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

     REPURCHASE PROCEEDS: All proceeds of any Mortgage Loan or property acquired in
respect thereof repurchased pursuant to Section 2.02, 3.01, 5.01, 5.21 or 11.01.

     RESERVE FUND: As defined in Section 5.29.

     RESIDUAL I INTEREST: The interest represented by (i) amounts with respect to the Pool
1 Mortgage Loans, if any, remaining in the Collection Account or Certificate Account following
termination of the Trust Fund after payments to the Class 1-A Certificateholders (other than the
Class A-R Certificateholders), the Class 1-M Certificateholders, the Class 1-B Certificateholders
and the Class 1-CE Certificateholders and (ii) amounts, if any, paid in respect of principal and
accrued interest on the Class A-R Certificates from collections or advances with respect to the
Pool 1 Mortgage Loans, other

31

 

than, in the case of both (i) and (ii), amounts attributable to the
Class SW-R Interest or Class LTI-R Interest.

     RESIDUAL II INTEREST: The interest represented by (i) amounts with respect to the
Pool 2 Mortgage Loans, if any, remaining in the Collection Account or Certificate Account following
termination of the Trust Fund after payments to the Class 2-A Certificateholders (other than the
Class A-R Certificateholders), the Class 2-M Certificateholders, the Class 2-B Certificateholders
and the Class 2-CE Certificateholders and (ii) amounts, if any, paid in respect of principal and
accrued interest on the Class A-R Certificates from collections or advances with respect to the
Pool 2 Mortgage Loans, other than, in the case of both (i) and (ii), amounts attributable to the
Class LTII-R Interest.

     RESPONSIBLE OFFICER: When used with respect to the Trustee, any senior vice
president, any vice president, any assistant vice president, any senior trust officer, any trust
officer or any other officer of the Trustee in its Agency & Trust Office customarily performing
functions similar to those performed by any of the above designated officers.

     REUTERS PAGE LIBOR01: The display currently so designated on the Reuters Xtra 3000
Service (or such other page as may replace such display on that service or any successor service
for the purpose of displaying London interbank offered rates of major banks).

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

     SALE AGREEMENT: The Mortgage Loan Sale Agreement dated as of July 1, 2007 between the
Depositor and CHF.

     SARBANES-OXLEY CERTIFICATION: The meaning specified in Section 5.24(f).

     SECTION 302 REQUIREMENTS: Any rules or regulations promulgated pursuant to the
Sarbanes-Oxley Act of 2002 (as such may be amended from time to time).

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

     SELLER: CHF.

     SERVICER: Chase or any successor under this Agreement as herein provided.

     SERVICING ADVANCES: All customary, reasonable and necessary “out of pocket” costs and
expenses incurred in the performance by the Servicer of its servicing obligations and which are
“unanticipated expenses” (within the meaning of Treasury regulations section 1.860G-1(b)(3)(ii))
including, but not limited to, the cost of (i) the preservation, restoration and protection of the
Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan), (ii) any
enforcement or judicial proceedings, including foreclosures, (iii) the management and liquidation
of the Mortgaged Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan) if
the Mortgaged Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan) is
acquired in satisfaction of the Mortgage, (iv) taxes and assessments on the Mortgaged Properties
subject to the Mortgage Loans and (v) compliance with the obligations under Section 5.21.

     SERVICING CRITERIA: The “servicing criteria” set forth in Item 1122(d) of Regulation
AB, as such may be amended from time to time.

32

 

     SERVICING FEE: The amount of the monthly fee paid for the servicing of the Mortgage
Loans, equal to, as of any Distribution Date, with respect to each Mortgage Loan, one-twelfth of
the Servicing Fee Rate of the Principal Balance thereof as of the Determination Date in the
preceding month, subject to adjustment as provided in Section 6.05. The Servicing Fee shall be
payable only at the time of and with
respect to those Mortgage Loans for which payment is in fact made of the entire amount of the
Monthly Payments that shall have come due and only at the time such Monthly Payment shall be made.
The right to receive the Servicing Fee is limited to, and the Servicing Fee is payable solely from,
the interest portion of such Monthly Payments (or the interest portion of any Principal Prepayment
in full) collected by the Servicer, or as otherwise provided under Section 5.09 or 5.23. For the
avoidance of doubt, in addition to the Servicing Fee, the Servicer shall also be entitled to any
investment earnings on amounts on deposit in the Certificate Account in excess of one calendar
day’s earnings.

     SERVICING FEE RATE: 0.2500% per annum.

     SERVICING OFFICER: Any officer of the Servicer or any Sub-Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose name appears on a
written certificate listing servicing officers furnished to the Trustee by the Servicer on or prior
to the Closing Date, and signed on behalf of the Servicer or any Sub-Servicer by its President, any
Vice President or its Treasurer, as such certificate may from time to time be amended.

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

     SIMILAR LAW: The meaning specified in Section 4.02(d).

     SINGLE CERTIFICATE: A Certificate of any Class that evidences the smallest
permissible original denomination for such Class of Certificates as specified in Section 4.01(d).

     STANDARD HAZARD POLICY: Each standard hazard insurance policy or replacement therefor
referred to in Section 5.16.

     STARTUP DAY: The meaning specified in Section 2.04(a).

     STATED PRINCIPAL BALANCE: For any Mortgage Loan at any Due Date, the unpaid principal
balance of such Mortgage Loan as of such Due Date as specified in the amortization schedule at the
time relating thereto (before any adjustment to such amortization schedule by reason of any
moratorium or similar waiver or grace period) after giving effect to any previous principal
prepayments and liquidation proceeds allocable to principal and to the payment of principal due on
such Due Date and irrespective of any delinquency in payment by the related mortgagor.

     SUBCONTRACTOR: Any vendor, subcontractor or other Person that is not responsible for
the overall servicing (as “servicing” is commonly understood by participants in the mortgage-backed
securities market) of Mortgage Loans but performs one or more discrete functions identified in Item
1122(d) of Regulation AB with respect to Mortgage Loans as determined by and under the direction or
authority of the Servicer or a Sub-Servicer.

     SUB-SERVICER: Any Person that services Mortgage Loans on behalf of the Servicer or
any Sub-Servicer and is responsible for the performance (whether directly or through Subservicers
or Subcontractors) of a substantial portion of the material servicing functions required to be
performed by the Servicer under this Agreement that are identified in Item 1122(d) of Regulation
AB. Any Sub-Servicer shall meet the qualifications set forth in Section 5.02.

33

 

     SUB-SERVICING AGREEMENT: Any agreement between the Servicer and any Sub-Servicer,
relating to servicing or administration of certain Mortgage Loans as provided in Section 5.02, in
such form as has been approved by the Servicer and the Depositor.

     SUBSEQUENT RECOVERY: The amount, if any, recovered by the Servicer with respect to a
Liquidated Mortgage Loan with respect to which a Realized Loss has been incurred after liquidation
and disposition of such Mortgage Loan.

     SUBSTITUTE EXCESS INTEREST: As defined in Section 3.03.

     SUPPLEMENTAL INTEREST TRUST: The separate trust, established pursuant to Section 5.30
of this Agreement.

     SUPPLEMENTAL INTEREST TRUST ACCOUNT: The separate Eligible Account created and
maintained by the Supplemental Interest Trust Trustee pursuant to Section 5.30 in the name of the
Supplemental Interest Trust Trustee for the benefit of the Supplemental Interest Trust and
designated “The Bank of New York Trust Company, N.A., as supplemental interest trust trustee, in
trust for registered holders of ChaseFlex Trust, Series 2007-M1, Multi-Class Mortgage Pass-Through
Certificates (Pool 1 Certificateholders).” Funds in the Supplemental Interest Trust Account shall
be held in trust for the Supplemental Interest Trust for the uses and purposes set forth in this
Agreement.

     SUPPLEMENTAL INTEREST TRUST TRUSTEE: The Bank of New York Trust Company, N.A., a
national banking association, not in its individual capacity, but solely in its capacity as trustee
of the Supplemental Interest Trust for the benefit of the Pool 1 Certificateholders under this
Agreement, and any successor thereto, and any corporation or national banking association resulting
from or surviving any consolidation or merger to which it or its successors may be a party and any
successor supplemental interest trust trustee as may from time to time be serving as successor
supplemental interest trustee hereunder.

     SWAP AGREEMENT: The master agreement, including the long form confirmation thereto
(attached as Exhibit W-1 hereto) and the related credit support annex (attached as Exhibit W-2
hereto), between the Swap Counterparty and the Supplemental Interest Trust Trustee for the benefit
of the Pool 1 Certificateholders or any other swap agreement (including any related schedules) held
by the Supplemental Interest Trust pursuant to Section 5.30 hereof.

     SWAP COUNTERPARTY: Barclays Bank PLC, or any successor counterparty who meets the
requirements set forth in the Swap Agreement.

     SWAP LIBOR: With respect to any Distribution Date (and the related Pool 1 Accrual
Period) the product of (i) the Floating Rate Option (as defined in the Swap Agreement for the
related Swap Payment Date), (ii) two and (iii) the quotient of (a) the actual number of days in the
Pool 1 Accrual Period for the Lower-Tier I REMIC Interests divided by (b) 30.

     SWAP PAYMENT DATE: For so long as the Swap Agreement is in effect or amounts remain
unpaid thereunder, the 2nd Business Day (as defined in the Swap Agreement) immediately
preceding each Distribution Date.

     SWAP POSTED COLLATERAL ACCOUNT: The segregated Eligible Account created and
maintained by the Supplemental Interest Trust Trustee pursuant to Section 5.30 in the name of the
Supplemental Interest Trust Trustee for the benefit of the Supplemental Interest Trust and
designated “The Bank of New York Trust Company, N.A., as supplemental interest trust trustee, in
trust for registered holders of ChaseFlex Trust, Series 2007-M1, Multi-Class Mortgage Pass-Through
Certificates

34

 

(Pool 1).” Funds in the Swap Posted Collateral Account shall be held in trust for the
Supplemental Interest Trust for the uses and purposes set forth in the Swap Agreement

     SWAP REMIC: The SWAP REMIC as described in Section 2.04.

     SWAP REMIC INTERESTS: Each of the interests in the SWAP REMIC as set forth in Section
2.04.

     SWAP REMIC REGULAR INTEREST: Each of the SWAP REMIC Interests other than the Class
SW-R Interest.

     SWAP TERMINATION PAYMENT: Any payment payable by the Supplemental Interest Trust or
the Swap Counterparty upon termination of the Swap Agreement pursuant to the Swap Agreement.

     TRUST: The Trust created pursuant to this Agreement.

     TRUST FUND: The corpus of the Trust consisting of (i) the Mortgage Loans, (ii) such
assets as shall from time to time be identified as deposited in the Collection Account, the
Certificate Account, the Reserve Fund and the Supplemental Interest Trust, (iii) the Trust’s rights
under the Yield Maintenance Agreements and the Swap Agreement, (iv) property which secured a
Mortgage Loan and which has been acquired by foreclosure or deed in lieu of foreclosure, (v)
Standard Hazard Policies and any other insurance policies, and the proceeds thereof and (vi) any
proceeds of any of the foregoing.

     TRUSTEE: The Bank of New York Trust Company, N.A., a national banking association and
its successors and any corporation resulting from or surviving any consolidation or merger to which
it or its successors may be a party, and any successor trustee at the time serving as successor
trustee hereunder, appointed as herein provided.

     UNCERTIFICATED CLASS 1-CE INTEREST: An uncertificated Upper-Tier I REMIC Regular
Interest having the characteristics described in Section 2.04.

     UNCERTIFICATED CLASS 2-CE INTEREST: An uncertificated Upper-Tier II REMIC Regular
Interest having the characteristics described in Section 2.04.

     UPPER-TIER I REMIC: The Upper-Tier I REMIC as described in Section 2.04.

     UPPER-TIER I REMIC NET WAC CAP: For any Distribution Date, the Net Rate.

     UPPER-TIER II REMIC: The Upper-Tier II REMIC as described in Section 2.04.

     UPPER-TIER II REMIC NET WAC CAP: For any Distribution Date, the REMIC II Net WAC (as
adjusted, in the case of any Class of Pool 2 Certificates that accrues interest on a “30/360 basis”
or its Corresponding REMIC Regular Interest, to reflect accruals on such basis).

     UPPER-TIER I REMIC REGULAR INTERESTS: Each of the interests in the Upper-Tier I REMIC
as set forth in Section 2.04 other than the Residual I Interest.

     UPPER-TIER II REMIC REGULAR INTEREST: Each of the interests in the Upper-Tier II
REMIC as set forth in Section 2.04 other than the Residual II Interest.

     U.S. PERSON: A “United States Person” as defined in Section 7701(a)(30) of the Code.

     YIELD MAINTENANCE AGREEMENT: Any of the yield maintenance agreements described in
Section 5.29 and set forth in Exhibit U.

35

 

     YIELD MAINTENANCE AGREEMENT COUNTERPARTY: JPMorgan Chase Bank, N.A., in its capacity
as cap counterparty under the Yield Maintenance Agreements, and its successors in interest.

[END OF ARTICLE I]

ARTICLE II

CONVEYANCE OF MORTGAGE LOANS; TRUST FUND

     Section 2.01 Conveyance of Mortgage Loans. The Depositor, concurrently with the
execution and delivery hereof, does hereby sell, transfer, assign, set over and convey to the
Trustee without recourse all the right, title and interest of the Depositor in and to the Mortgage
Loans, including all interest and principal received on or with respect to the Mortgage Loans on or
after the Cut-off Date (other than Monthly Payments due on the Mortgage Loans on or before the
Cut-off Date).

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

	(i)	 	With respect to each Mortgage Loan which is not a Co-op Loan:

     (A) Original Mortgage Note bearing all intervening endorsements, endorsed “Pay to the order of
___, without recourse” and signed in the name of the last endorsee by an authorized officer.

     (B) The original Mortgage (including all riders thereto) with evidence of recording thereon,
or a copy thereof certified by the public recording office in which such Mortgage has been
recorded or, if the original Mortgage has not been returned from the applicable public recording
office, a true certified copy of the original that was sent for recording, certified by the Seller.

     (C) The original policy of title insurance, or in the event such original title policy is
unavailable a copy of the related policy (provided that use of a copy is acceptable to the related
title insurance or escrow company), including riders and endorsements thereto, or if the policy has
not yet been issued, a written commitment or interim binder or preliminary report of title issued
by the title insurance or escrow company.

     (D) Certified true copy of power of attorney sent for recording.

	(ii)	 	With respect to each Non-MERS Mortgage Loan which is not a Co-op Loan:

     (A) The
original Assignment of Mortgage to “The Bank of New York Trust Company, N.A., as
trustee (Chase Mortgage Finance Corporation),” or in blank which assignment shall be in form and substance
acceptable for recording, or a copy certified by the Seller as a true and correct copy of the
original Assignment of Mortgage which has been sent for recordation. Subject to the foregoing, such
assignments may, if permitted by law, be by blanket
assignments for Mortgage Loans covering Mortgaged Properties situated within the same county. If
the Assignment of Mortgage is in
blanket form, a copy of the Assignment of Mortgage shall be included in the related individual
Mortgage File.

36

 

     (B) The original policy of title insurance, or in the event such original title policy is
unavailable a copy of the related policy (provided that use of a copy is acceptable to the related
title insurance or escrow company), including riders and endorsements thereto, or if the policy has
not yet been issued, a written commitment or interim binder or preliminary report of title issued
by the title insurance or escrow company.

     (C) Originals of all recorded intervening Assignments of Mortgage, or copies thereof,
certified by the public recording office in which such Assignments or Mortgage have been recorded
showing a complete chain of title from the originator to the Depositor, with evidence of recording,
thereon, or a copy thereof certified by the public recording office in which such Assignment of
Mortgage has been recorded or, if the original Assignment of Mortgage has not been returned from
the applicable public recording office, a true certified copy, certified by the Seller of the
original Assignment of Mortgage together with a certificate of the Seller certifying that the
original Assignment of Mortgage has been delivered for recording in the appropriate public
recording office of the jurisdiction in which the Mortgaged Property is located.

     (D) Originals, or copies thereof certified by the public recording office in which such
documents have been recorded, of each assumption, extension, modification, written assurance or
substitution agreements, if applicable, or if the original of such document has not been returned
from the applicable public recording office, a true certified copy, certified by the Seller, of
such original document together with certificate of Seller certifying the original of such document
has been delivered for recording in the appropriate recording office of the jurisdiction in which
the Mortgaged Property is located.

     (E) If the Mortgage Note or Mortgage or any other material document or instrument relating to
the Mortgage Loan has been signed by a Person on behalf of the Mortgagor, the original power of
attorney or other instrument that authorized and empowered such Person to sign bearing evidence
that such instrument has been recorded, if so required in the appropriate jurisdiction where the
Mortgaged Property is located (or, in lieu thereof, a duplicate or conformed copy of such
instrument, together with a certificate of receipt from the recording office, certifying that such
copy represents a true and complete copy of the original and that such original has been or is
currently submitted to be recorded in the appropriate governmental recording office of the
jurisdiction where the Mortgaged Property is located), or if the original power of attorney or
other such instrument has been delivered for recording in the appropriate public recording office
of the jurisdiction in which the Mortgaged Property is located, a copy of any applicable power of
attorney.

	(iii)	 	With respect to each Co-op Loan:

	 	(A)	 	(I) The original Mortgage Note bearing all intervening endorsements,
endorsed “Pay to the order of ___, without recourse” and signed in the name
of the last endorsee by an authorized officer.
	 
	 	(B)	 	The original loan security agreement entered into by the Mortgagor with
respect to such Co-Op Loan.
	 
	 	(C)	 	Original Form UCC-1 and any continuation statements with evidence of
filing thereon entered into by the Mortgagor with respect to such Co-Op Loan or
if the original of such document has not been returned from the applicable
public recording office, a true certified copy of the document sent for
recording.
	 
	 	(D)	 	Form UCC-3 (or copy thereof) by the applicable Mortgage Loan Seller or
its agent assigning the security interest covered by such Form UCC-1 to “The
Bank of New York Trust Company, N.A. as trustee” or to blank, together with all

37

 

	 	 	 	Forms UCC-3 (or copies thereof) showing a complete chain of assignment from the
originator of the related Co-op Loan to the Seller, with evidence of recording
thereon.
	 
	 	(E)	 	Stock certificate representing the stock allocated to the related
dwelling unit in the related residential cooperative housing corporation and
pledged by the related Mortgagor to the originator of such Co-op Loan with a
stock power in blank attached.
	 
	 	(F)	 	Original proprietary lease.
	 
	 	(G)	 	Original assignment of proprietary lease, to the Trustee or to blank,
and all intervening assignments thereof.
	 
	 	(H)	 	Original recognition agreement of the interests of the mortgagee with
respect to the Co-op Loan by the residential cooperative housing corporation,
the stock of which was pledged by the related Mortgagor to the originator of
such Co-op Loan.
	 
	 	(I)	 	Originals of any assumption, consolidation or modification agreements
relating to any of the items specified in (A) through (D) above with respect to
such Co-op Loan.
	 
	 	(J)	 	Certified true copy of power of attorney sent for recording.

     If in connection with any Mortgage Loan which is not a Co-op Loan the Depositor cannot deliver
the Mortgage, Assignments of Mortgage, or assumption, consolidation or modification agreement, as
the case may be, with evidence of recording thereon concurrently with the execution and delivery of
this Agreement solely because of a delay caused by the public recording office where such Mortgage,
Assignments of Mortgage, or assumption, consolidation or modification agreement, as the case may
be, has been delivered for recordation, the Depositor shall deliver or cause to be delivered to the
Trustee written notice stating that such Mortgage, Assignments of Mortgage, or assumption,
consolidation or modification agreement, as the case may be, has been delivered to the appropriate
public recording office for recordation. Thereafter, the Depositor shall deliver or cause to be
delivered to the Trustee such Mortgage, Assignments of Mortgage, or assumption, consolidation or
modification agreement, as the case may be, with evidence of recording indicated thereon upon
receipt thereof from the public recording office.

     With respect to any Non-MERS Mortgage Loans which are not Co-op Loans, and as to which the
related Mortgaged Property is located in Florida, the Servicer shall cause to be recorded in the
appropriate public recording office for real property records each Assignment of Mortgage referred
to in this Section 2.01 as soon as practicable. With respect to any Non-MERS Mortgage Loans which
are not Co-op Loans as to which the related Mortgaged Property is located outside of Florida, the
Servicer shall not be obligated to cause to be recorded the Assignment of Mortgage referred to in
this Section 2.01. With respect to Co-op Loans as to which the related dwelling unit is located in
Florida, the Servicer shall cause to be filed in the appropriate filing office the Form UCC-3
referred to in this Section 2.01 as soon as practicable. With respect to any Co-op Loans as to
which the related dwelling unit is located outside Florida, the Servicer shall not be obligated to
cause to be filed the Form UCC-3 referred to in this Section 2.01. While each such Assignment of
Mortgage or Form UCC-3 is being recorded or filed, as applicable, the Servicer shall deliver to the
Trustee a photocopy of such document. If any such Assignment of Mortgage or Form UCC-3 is returned
unrecorded or unfiled to the Servicer because of any defect therein, the Servicer shall cause such
defect to be cured and such document to be recorded or filed in accordance
with this paragraph. The Depositor shall deliver or cause to be delivered each such original
recorded or filed Assignment of Mortgage and intermediate assignment or Form UCC-3 to the Trustee
within 270 days of the Closing Date or shall deliver to the Trustee on or before such date an
Officer’s Certificate

38

 

stating that such document has been delivered to the appropriate public
recording or filing office for recording or filing, but has not been returned solely because of a
delay caused by such recording or filing office. In any event, the Depositor shall use all
reasonable efforts to cause each such document with evidence of recording or filing thereon to be
delivered to the Trustee within 300 days of the Closing Date.

     With respect to each MERS Mortgage Loan, the Trustee, at the expense of the Depositor and at
the direction and with the cooperation of the Servicer, shall cause to be taken such actions as are
necessary to cause the Trustee to be clearly identified as the trustee of each such Mortgage Loan
on the records of MERS for purposes of the system of recording transfers of beneficial ownership of
mortgages maintained by MERS.

     The ownership of each Mortgage Note, the Mortgage and the contents of the related Mortgage
File is vested in the Trustee. Neither the Depositor nor the Servicer shall take any action
inconsistent with such ownership and shall not claim any ownership interest therein. The Depositor
and the Servicer shall respond to any third party inquiries with respect to ownership of the
Mortgage Loans by stating that such ownership is held by the Trustee on behalf of the
Certificateholders. Mortgage documents relating to the Mortgage Loans not delivered to the Trustee
are and shall be held in trust by the Servicer or any Sub-Servicer, for the benefit of the Trustee
as the owner thereof, and the Servicer’s or such Sub-Servicer’s possession of the contents of each
Mortgage File so retained is for the sole purpose of servicing the related Mortgage Loan, and such
retention and possession by the Servicer or such Sub-Servicer is in a custodial capacity only. The
Depositor agrees to take no action inconsistent with the Trustee’s ownership of the Mortgage Loans,
to promptly indicate to all inquiring parties that the Mortgage Loans have been sold and to claim
no ownership interest in the Mortgage Loans. Each Mortgage File and the mortgage documents
relating to the Mortgage Loans contain proprietary business information of the Servicer and its
customers. The Trustee and the Depositor agree that they will not use such information for
business purposes without the express written consent of the Servicer and that all such information
shall be kept strictly confidential.

     It is the intention of this Agreement that the conveyance of the Depositor’s right, title and
interest in and to the Trust Fund pursuant to this Agreement shall constitute a purchase and sale
and not a loan. If a conveyance of Mortgage Loans from the Seller to the Depositor is
characterized as a pledge and not a sale, then the Depositor shall be deemed to have transferred to
the Trustee all of the Depositor’s right, title and interest in, to and under the obligations of
the Seller deemed to be secured by said pledge; and it is the intention of this Agreement that the
Depositor shall also be deemed to have granted to the Trustee a first priority security interest in
all of the Depositor’s right, title, and interest in, to and under the obligations of the Seller to
the Depositor deemed to be secured by said pledge and that the Trustee shall be deemed to be an
independent custodian for purposes of perfection of the security interest granted to the Depositor.
If the conveyance of the Mortgage Loans from the Depositor to the Trustee is characterized as a
pledge, it is the intention of this Agreement that this Agreement shall constitute a security
agreement under applicable law, and that the Depositor shall be deemed to have granted to the
Trustee a first priority security interest in all of the Depositor’s right, title and interest in,
to and under the Mortgage Loans, all payments of principal of or interest on such Mortgage Loans,
all other rights relating to and payments made in respect of the Trust Fund, and all proceeds of
any thereof. If the trust created by this Agreement terminates prior to the satisfaction of the
claims of any Person in any Certificates, the security interest created hereby shall continue in
full force and effect and the Trustee shall be deemed to be the collateral agent for the benefit of
such Person.

     In addition to the conveyance made in the first paragraph of this Section 2.01, the Depositor
does hereby convey, assign and set over to the Trustee all of its right, title and interest in that
portion of the Trust Fund described in items (ii), (iii), (iv) and (v) of the definition thereof
and further assigns to the Trustee for the benefit of the Certificateholders those representations
and warranties of the Seller

39

 

contained in the Sale Agreement and described in Section 3.01 hereof
and the benefit of the repurchase obligations of the Seller described in Sections 2.02 and 3.01
hereof and the obligations of the Seller contained in the Sale Agreement to take, at the request of
the Depositor or the Trustee, all action on its part which is reasonably necessary to ensure the
enforceability of a Mortgage Loan.

     The parties hereto agree and understand that it is not intended that any mortgage loan be
included in the Trust that is any of (i) a “High-Cost Home Loan” as defined in the New Jersey Home
Ownership Act effective November 27, 2003, (ii) a “High-Cost Home Loan” as defined in the New
Mexico Home Loan Protection Act effective January 1, 2004, (iii) a “High-Cost Home Mortgage Loan”
as defined in the Massachusetts Predatory Home Loan Practices Act effective November 7, 2004 or
(iv) a “High-Cost Home Loan” as defined by the Indiana High Cost Home Loan Law effective January 1,
2005.

     Section 2.02 Acceptance by Trustee. Except as set forth in the Exception Report
delivered contemporaneously herewith (the “Exception Report”), the Trustee acknowledges receipt by
the Custodian on the Trustee’s behalf of the Mortgage Note for each Mortgage Loan and delivery of a
Mortgage File (but does not acknowledge receipt of all documents required to be included in such
Mortgage File) with respect to each Mortgage Loan and declares that the Custodian holds and will
hold on the Trustee’s behalf such documents and any other documents constituting a part of the
Mortgage Files delivered to it in trust for the use and benefit of all present and future Related
Certificateholders. The Depositor will cause the Seller to repurchase any Mortgage Loans to which
an exception was taken in the Exception Report unless such exception is cured to the satisfaction
of the Trustee within 45 Business Days of the Closing Date. The Trustee may accept delivery of
such Mortgage Files by the Custodian on its behalf. The Custodian will deliver a copy of the
Exception Report to the Depositor and the Trustee.

     The Custodian, on the Trustee’s behalf, agrees, for the benefit of Related Certificateholders,
to review each Mortgage File delivered to it within 270 days after the Closing Date to ascertain
that all documents required by Section 2.01 have been executed and received, and that such
documents relate to the Mortgage Loans identified in Exhibit A-1 or Exhibit A-2 that have been
conveyed to it. If the Custodian on the Trustee’s behalf finds any document or documents
constituting a part of a Mortgage File to be missing or defective (that is, mutilated, damaged,
defaced or unexecuted) in any material respect, the Custodian on the Trustee’s behalf shall
promptly (and in any event within no more than five Business Days) after such finding so notify the
Servicer, the Seller, the Trustee and the Depositor. In addition, the Custodian on the Trustee’s
behalf shall also notify the Servicer, the Seller, the Trustee and the Depositor, if (a) in
examining the Mortgage Files, the documentation shows on its face (i) any adverse claim, lien or
encumbrance, (ii) that any Mortgage Note was overdue or had been dishonored, (iii) any evidence on
the face of any Mortgage Note or Mortgage of any security interest or other right or interest
therein, or (iv) any defense against or claim to the Mortgage Note by any party or (b) the original
Mortgage with evidence of recording thereon with respect to a Mortgage Loan is not received within
270 days of the Closing Date; provided, however, that if the Depositor cannot deliver the original
Mortgage with evidence of recording thereon because of a delay caused by the public recording
office where such Mortgage has been delivered for recordation, the Depositor shall deliver or cause
to be delivered to the Custodian and the Trustee written notice stating that such Mortgage has been
delivered to the appropriate public recording officer for recordation and thereafter the Depositor
shall deliver or cause to be delivered such Mortgage with evidence of recording thereon upon
receipt thereof from the public recording office. The Depositor shall request that the Seller
correct or cure such omission, defect or other irregularity, or
substitute a Mortgage Loan pursuant to the provisions of Section 3.03, within 60 days from the
date the Seller was notified of such omission or defect and, if the Seller does not correct or cure
such omission or defect within such period, that the Seller purchase such Mortgage Loan from the
Trustee within 90 days from the date the Depositor notified the Seller and the Trustee of such
omission, defect or other irregularity at the Purchase Price of such Mortgage Loan. The Purchase
Price for any Mortgage Loan

40

 

purchased pursuant to this Section 2.02 shall be paid to the Servicer
and deposited by the Servicer in the Collection Account promptly upon receipt, and, upon receipt by
the Trustee of written notification of such deposit signed by a Servicing Officer, the Trustee
shall promptly release to the Seller the related Mortgage File and the Trustee shall execute and
deliver such instruments of transfer or assignment, without recourse, as shall be necessary to vest
in the Seller or its designee, as the case may be, any Mortgage Loan released pursuant hereto, and
the Trustee shall have no further responsibility with regard to such Mortgage Loan. It is
understood and agreed that the obligation of the Seller to purchase, cure or substitute any
Mortgage Loan as to which a material defect in or omission of a constituent document exists shall
constitute the sole remedy respecting such defect or omission available to the Trustee on behalf of
Certificateholders. The Trustee shall be under no duty or obligation to inspect, review and
examine such documents, instruments, certificates or other papers to determine that they are
genuine, enforceable or appropriate to the represented purpose, or that they have actually been
recorded, or that they are other than what they purport to be on their face. The Trustee shall
keep confidential the name of each Mortgagor and shall not solicit any such Mortgagor for the
purpose of refinancing the related Mortgage Loan.

     Within 280 days of the Closing Date, the Trustee based solely on information provided to it
by the Custodian shall deliver to the Depositor and the Servicer the Trustee’s Certification,
substantially in the form of Exhibit G attached hereto, setting forth the status of the Mortgage
Files as of such date.

     Section 2.03 Trust Fund; Authentication of Certificates. The Trustee acknowledges and
accepts the assignment to it of the Trust Fund created pursuant to this Agreement in trust for the
use and benefit of all present and future Related Certificateholders. The Trustee acknowledges the
assignment to it for the benefit of the Trust Fund of the Mortgage Loans and has caused to be
authenticated and delivered to or upon the order of the Depositor, in exchange for the Mortgage
Loans, Certificates duly authenticated by the Trustee or, if an Authenticating Agent has been
appointed pursuant to Section 4.06, the Authenticating Agent in authorized denominations evidencing
ownership of the entire Trust Fund.

     Section 2.04 REMIC Elections.

          (a) MORTGAGE POOL 1 — The Depositor hereby instructs and authorizes the Paying Agent
to make appropriate elections to treat the portion of the Trust Fund relating to Mortgage Pool 1 as
including three REMICs (the SWAP REMIC, the Lower-Tier I REMIC and the Upper-Tier I REMIC). This
Agreement shall be construed so as to carry out the intention of the parties that each REMIC
created hereunder be treated as a REMIC at all times prior to the date on which the Trust Fund is
terminated. The Closing Date is hereby designated as the “startup day” of each REMIC created
hereunder within the meaning of Section 860G(a)(9) of the Code. The portion of the Trust Fund
related to Mortgage Pool 1, for federal income tax purposes will consist of (i) the REMIC Pools
listed in the first sentence of this paragraph, (ii) the grantor trust described in Section
2.04(d)(i), (iii) the Supplemental Interest Trust and the Swap Agreement and (iv) the Class A-R
Reserve Fund. The SWAP REMIC shall hold as assets all property of the Trust Fund related to
Mortgage Pool 1 other than the SWAP REMIC Interests, the Lower-Tier I REMIC Interests and the
assets described in clauses (ii), (iii) and (iv) above. Each of the SWAP REMIC Regular Interests is
hereby designated a “regular interest” (within the meaning of Section 860G(a)(1) of the Code) in
the SWAP REMIC. The Lower-Tier I REMIC shall hold as assets the several classes of uncertificated
SWAP REMIC Regular Interests. Each of the Lower-Tier I
REMIC Regular Interests is hereby designated a “regular interest” (within the meaning of
Section 860G(a)(1) of the Code) in the Lower-Tier I REMIC. The Upper-Tier I REMIC shall hold as
assets the several classes of uncertificated Lower-Tier I REMIC Regular Interests. Each of the
Upper-Tier I REMIC Regular Interests is hereby designated as a “regular interest” (within the
meaning of Section 860G(a)(1) of the Code) in the Upper-Tier I REMIC. The Class SW-R Interest is
hereby designated as the sole residual interest (within the meaning of Section 860G(a)(2) of the
Code) in the SWAP REMIC.

41

 

The Class LTI-R Interest is hereby designated as the sole residual
interest (within the meaning of Section 860G(a)(2) of the Code) in the Lower-Tier I REMIC. The
Residual I Interest is hereby designated as the sole residual interest (within the meaning of
Section 860G(a)(2) of the Code) in the Upper-Tier I REMIC. The Class A-R Certificate evidences
ownership of the Class SW-R Interest, the Class LTI-R Interest, the Residual I Interest and the
right to receive payments from the Class A-R Reserve Fund. All interests described in this Section
2.04(a) shall be designated as such on the Startup Day.

REMICS RELATED TO MORTGAGE POOL 1

The SWAP REMIC

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

	 	 	 	 	 	 	 	 	 
	Class	 	Initial Principal Balance	 	Interest Rate
	SW-Z
	 	$	6,386,387.570	 	 	 	(1	)
	SW-1A
	 	$	3,890,188.465	 	 	 	(2	)
	SW-1B
	 	$	3,890,188.465	 	 	 	(3	)
	SW-2A
	 	$	4,081,611.930	 	 	 	(2	)
	SW-2B
	 	$	4,081,611.930	 	 	 	(3	)
	SW-3A
	 	$	4,263,925.580	 	 	 	(2	)
	SW-3B
	 	$	4,263,925.580	 	 	 	(3	)
	SW-4A
	 	$	4,436,707.035	 	 	 	(2	)
	SW-4B
	 	$	4,436,707.035	 	 	 	(3	)
	SW-5A
	 	$	4,599,443.550	 	 	 	(2	)
	SW-5B
	 	$	4,599,443.550	 	 	 	(3	)
	SW-6A
	 	$	4,751,658.750	 	 	 	(2	)
	SW-6B
	 	$	4,751,658.750	 	 	 	(3	)
	SW-7A
	 	$	4,892,915.395	 	 	 	(2	)
	SW-7B
	 	$	4,892,915.395	 	 	 	(3	)
	SW-8A
	 	$	5,022,817.935	 	 	 	(2	)
	SW-8B
	 	$	5,022,817.935	 	 	 	(3	)
	SW-9A
	 	$	5,141,014.810	 	 	 	(2	)
	SW-9B
	 	$	5,141,014.810	 	 	 	(3	)
	SW-10A
	 	$	5,247,200.625	 	 	 	(2	)
	SW-10B
	 	$	5,247,200.625	 	 	 	(3	)
	SW-11A
	 	$	5,341,118.010	 	 	 	(2	)
	SW-11B
	 	$	5,341,118.010	 	 	 	(3	)
	SW-12A
	 	$	5,422,559.235	 	 	 	(2	)
	SW-12B
	 	$	5,422,559.235	 	 	 	(3	)
	SW-13A
	 	$	5,263,542.320	 	 	 	(2	)
	SW-13B
	 	$	5,263,542.320	 	 	 	(3	)
	SW-14A
	 	$	5,109,187.420	 	 	 	(2	)
	SW-14B
	 	$	5,109,187.420	 	 	 	(3	)
	SW-15A
	 	$	4,959,357.880	 	 	 	(2	)
	SW-15B
	 	$	4,959,357.880	 	 	 	(3	)
	SW-16A
	 	$	4,813,921.055	 	 	 	(2	)
	SW-16B
	 	$	4,813,921.055	 	 	 	(3	)
	SW-17A
	 	$	4,672,748.185	 	 	 	(2	)
	SW-17B
	 	$	4,672,748.185	 	 	 	(3	)

42

 

	 	 	 	 	 	 	 	 	 
	Class	 	Initial Principal Balance	 	Interest Rate
	SW-18A
	 	$	4,535,714.285	 	 	 	(2	)
	SW-18B
	 	$	4,535,714.285	 	 	 	(3	)
	SW-19A
	 	$	4,402,698.035	 	 	 	(2	)
	SW-19B
	 	$	4,402,698.035	 	 	 	(3	)
	SW-20A
	 	$	4,273,581.660	 	 	 	(2	)
	SW-20B
	 	$	4,273,581.660	 	 	 	(3	)
	SW-21A
	 	$	4,148,250.845	 	 	 	(2	)
	SW-21B
	 	$	4,148,250.845	 	 	 	(3	)
	SW-22A
	 	$	4,026,594.635	 	 	 	(2	)
	SW-22B
	 	$	4,026,594.635	 	 	 	(3	)
	SW-23A
	 	$	3,908,505.305	 	 	 	(2	)
	SW-23B
	 	$	3,908,505.305	 	 	 	(3	)
	SW-24A
	 	$	3,793,878.310	 	 	 	(2	)
	SW-24B
	 	$	3,793,878.310	 	 	 	(3	)
	SW-25A
	 	$	3,682,612.140	 	 	 	(2	)
	SW-25B
	 	$	3,682,612.140	 	 	 	(3	)
	SW-26A
	 	$	3,574,608.295	 	 	 	(2	)
	SW-26B
	 	$	3,574,608.295	 	 	 	(3	)
	SW-27A
	 	$	3,469,771.135	 	 	 	(2	)
	SW-27B
	 	$	3,469,771.135	 	 	 	(3	)
	SW-28A
	 	$	3,726,584.685	 	 	 	(2	)
	SW-28B
	 	$	3,726,584.685	 	 	 	(3	)
	SW-29A
	 	$	3,958,308.515	 	 	 	(2	)
	SW-29B
	 	$	3,958,308.515	 	 	 	(3	)
	SW-30A
	 	$	3,272,148.980	 	 	 	(2	)
	SW-30B
	 	$	3,272,148.980	 	 	 	(3	)
	SW-31A
	 	$	3,965,416.430	 	 	 	(2	)
	SW-31B
	 	$	3,965,416.430	 	 	 	(3	)
	SW-32A
	 	$	3,158,636.585	 	 	 	(2	)
	SW-32B
	 	$	3,158,636.585	 	 	 	(3	)
	SW-33A
	 	$	3,784,274.490	 	 	 	(2	)
	SW-33B
	 	$	3,784,274.490	 	 	 	(3	)
	SW-34A
	 	$	4,128,695.575	 	 	 	(2	)
	SW-34B
	 	$	4,128,695.575	 	 	 	(3	)
	SW-35A
	 	$	3,069,497.270	 	 	 	(2	)
	SW-35B
	 	$	3,069,497.270	 	 	 	(3	)
	SW-36A
	 	$	3,117,094.625	 	 	 	(2	)
	SW-36B
	 	$	3,117,094.625	 	 	 	(3	)
	SW-37A
	 	$	1,396,036.275	 	 	 	(2	)
	SW-37B
	 	$	1,396,036.275	 	 	 	(3	)
	SW-38A
	 	$	2,289,281.770	 	 	 	(2	)
	SW-38B
	 	$	2,289,281.770	 	 	 	(3	)
	SW-39A
	 	$	2,222,138.635	 	 	 	(2	)
	SW-39B
	 	$	2,222,138.635	 	 	 	(3	)
	SW-40A
	 	$	2,156,964.220	 	 	 	(2	)
	SW-40B
	 	$	2,156,964.220	 	 	 	(3	)
	SW-41A
	 	$	2,093,700.805	 	 	 	(2	)
	SW-41B
	 	$	2,093,700.805	 	 	 	(3	)
	SW-42A
	 	$	2,032,292.385	 	 	 	(2	)

43

 

	 	 	 	 	 	 	 	 	 
	Class	 	Initial Principal Balance	 	Interest Rate
	SW-42B
	 	$	2,032,292.385	 	 	 	(3	)
	SW-43A
	 	$	1,972,684.560	 	 	 	(2	)
	SW-43B
	 	$	1,972,684.560	 	 	 	(3	)
	SW-44A
	 	$	1,914,824.570	 	 	 	(2	)
	SW-44B
	 	$	1,914,824.570	 	 	 	(3	)
	SW-45A
	 	$	1,858,661.155	 	 	 	(2	)
	SW-45B
	 	$	1,858,661.155	 	 	 	(3	)
	SW-46A
	 	$	1,804,144.595	 	 	 	(2	)
	SW-46B
	 	$	1,804,144.595	 	 	 	(3	)
	SW-47A
	 	$	1,751,226.600	 	 	 	(2	)
	SW-47B
	 	$	1,751,226.600	 	 	 	(3	)
	SW-48A
	 	$	1,699,860.310	 	 	 	(2	)
	SW-48B
	 	$	1,699,860.310	 	 	 	(3	)
	SW-49A
	 	$	1,650,000.240	 	 	 	(2	)
	SW-49B
	 	$	1,650,000.240	 	 	 	(3	)
	SW-50A
	 	$	1,601,602.230	 	 	 	(2	)
	SW-50B
	 	$	1,601,602.230	 	 	 	(3	)
	SW-51A
	 	$	1,554,623.420	 	 	 	(2	)
	SW-51B
	 	$	1,554,623.420	 	 	 	(3	)
	SW-52A
	 	$	1,509,022.195	 	 	 	(2	)
	SW-52B
	 	$	1,509,022.195	 	 	 	(3	)
	SW-53A
	 	$	1,464,758.185	 	 	 	(2	)
	SW-53B
	 	$	1,464,758.185	 	 	 	(3	)
	SW-54A
	 	$	1,421,792.170	 	 	 	(2	)
	SW-54B
	 	$	1,421,792.170	 	 	 	(3	)
	SW-55A
	 	$	1,521,855.830	 	 	 	(2	)
	SW-55B
	 	$	1,521,855.830	 	 	 	(3	)
	SW-56A
	 	$	1,345,437.180	 	 	 	(2	)
	SW-56B
	 	$	1,345,437.180	 	 	 	(3	)
	SW-57A
	 	$	1,831,868.805	 	 	 	(2	)
	SW-57B
	 	$	1,831,868.805	 	 	 	(3	)
	SW-58A
	 	$	5,901,782.185	 	 	 	(2	)
	SW-58B
	 	$	5,901,782.185	 	 	 	(3	)
	SW-59A
	 	$	8,199,836.800	 	 	 	(2	)
	SW-59B
	 	$	8,199,836.800	 	 	 	(3	)
	SW-60A
	 	$	2,057,222.075	 	 	 	(2	)
	SW-60B
	 	$	2,057,222.075	 	 	 	(3	)
	SW-61A
	 	$	802,579.190	 	 	 	(2	)
	SW-61B
	 	$	802,579.190	 	 	 	(3	)
	SW-62A
	 	$	779,039.875	 	 	 	(2	)
	SW-62B
	 	$	779,039.875	 	 	 	(3	)
	SW-63A
	 	$	756,190.770	 	 	 	(2	)
	SW-63B
	 	$	756,190.770	 	 	 	(3	)
	SW-64A
	 	$	734,011.625	 	 	 	(2	)
	SW-64B
	 	$	734,011.625	 	 	 	(3	)
	SW-65A
	 	$	712,482.825	 	 	 	(2	)
	SW-65B
	 	$	712,482.825	 	 	 	(3	)
	SW-66A
	 	$	691,585.280	 	 	 	(2	)
	SW-66B
	 	$	691,585.280	 	 	 	(3	)

44

 

	 	 	 	 	 	 	 	 	 
	Class	 	Initial Principal Balance	 	Interest Rate
	SW-67A
	 	$	671,300.505	 	 	 	(2	)
	SW-67B
	 	$	671,300.505	 	 	 	(3	)
	SW-68A
	 	$	651,610.530	 	 	 	(2	)
	SW-68B
	 	$	651,610.530	 	 	 	(3	)
	SW-69A
	 	$	632,497.905	 	 	 	(2	)
	SW-69B
	 	$	632,497.905	 	 	 	(3	)
	SW-70A
	 	$	613,945.730	 	 	 	(2	)
	SW-70B
	 	$	613,945.730	 	 	 	(3	)
	SW-71A
	 	$	595,937.550	 	 	 	(2	)
	SW-71B
	 	$	595,937.550	 	 	 	(3	)
	SW-72A
	 	$	578,457.435	 	 	 	(2	)
	SW-72B
	 	$	578,457.435	 	 	 	(3	)
	SW-73A
	 	$	561,489.895	 	 	 	(2	)
	SW-73B
	 	$	561,489.895	 	 	 	(3	)
	SW-74A
	 	$	545,019.905	 	 	 	(2	)
	SW-74B
	 	$	545,019.905	 	 	 	(3	)
	SW-75A
	 	$	529,032.875	 	 	 	(2	)
	SW-75B
	 	$	529,032.875	 	 	 	(3	)
	SW-76A
	 	$	645,373.085	 	 	 	(2	)
	SW-76B
	 	$	645,373.085	 	 	 	(3	)
	SW-77A
	 	$	574,050.105	 	 	 	(2	)
	SW-77B
	 	$	574,050.105	 	 	 	(3	)
	SW-78A
	 	$	601,618.210	 	 	 	(2	)
	SW-78B
	 	$	601,618.210	 	 	 	(3	)
	SW-79A
	 	$	530,588.160	 	 	 	(2	)
	SW-79B
	 	$	530,588.160	 	 	 	(3	)
	SW-80A
	 	$	551,243.375	 	 	 	(2	)
	SW-80B
	 	$	551,243.375	 	 	 	(3	)
	SW-81A
	 	$	1,066,169.395	 	 	 	(2	)
	SW-81B
	 	$	1,066,169.395	 	 	 	(3	)
	SW-82A
	 	$	4,071,920.070	 	 	 	(2	)
	SW-82B
	 	$	4,071,920.070	 	 	 	(3	)
	SW-83A
	 	$	5,406,144.880	 	 	 	(2	)
	SW-83B
	 	$	5,406,144.880	 	 	 	(3	)
	SW-84A
	 	$	1,359,030.775	 	 	 	(2	)
	SW-84B
	 	$	1,359,030.775	 	 	 	(3	)
	SW-85A
	 	$	79,316.790	 	 	 	(2	)
	SW-85B
	 	$	79,316.790	 	 	 	(3	)
	SW-86A
	 	$	76,983.420	 	 	 	(2	)
	SW-86B
	 	$	76,983.420	 	 	 	(3	)
	SW-87A
	 	$	74,718.635	 	 	 	(2	)
	SW-87B
	 	$	74,718.635	 	 	 	(3	)
	SW-88A
	 	$	72,520.425	 	 	 	(2	)
	SW-88B
	 	$	72,520.425	 	 	 	(3	)
	SW-89A
	 	$	70,386.830	 	 	 	(2	)
	SW-89B
	 	$	70,386.830	 	 	 	(3	)
	SW-90A
	 	$	68,315.950	 	 	 	(2	)
	SW-90B
	 	$	68,315.950	 	 	 	(3	)
	SW-91A
	 	$	66,305.945	 	 	 	(2	)

45

 

	 	 	 	 	 	 	 	 	 
	Class	 	Initial Principal Balance	 	Interest Rate
	SW-91B
	 	$	66,305.945	 	 	 	(3	)
	SW-92A
	 	$	64,355.035	 	 	 	(2	)
	SW-92B
	 	$	64,355.035	 	 	 	(3	)
	SW-93A
	 	$	62,461.475	 	 	 	(2	)
	SW-93B
	 	$	62,461.475	 	 	 	(3	)
	SW-94A
	 	$	60,623.575	 	 	 	(2	)
	SW-94B
	 	$	60,623.575	 	 	 	(3	)
	SW-95A
	 	$	58,839.715	 	 	 	(2	)
	SW-95B
	 	$	58,839.715	 	 	 	(3	)
	SW-96A
	 	$	57,108.300	 	 	 	(2	)
	SW-96B
	 	$	57,108.300	 	 	 	(3	)
	SW-97A
	 	$	55,427.780	 	 	 	(2	)
	SW-97B
	 	$	55,427.780	 	 	 	(3	)
	SW-98A
	 	$	53,796.680	 	 	 	(2	)
	SW-98B
	 	$	53,796.680	 	 	 	(3	)
	SW-99A
	 	$	52,213.525	 	 	 	(2	)
	SW-99B
	 	$	52,213.525	 	 	 	(3	)
	SW-100A
	 	$	50,676.930	 	 	 	(2	)
	SW-100B
	 	$	50,676.930	 	 	 	(3	)
	SW-101A
	 	$	49,185.500	 	 	 	(2	)
	SW-101B
	 	$	49,185.500	 	 	 	(3	)
	SW-102A
	 	$	47,737.935	 	 	 	(2	)
	SW-102B
	 	$	47,737.935	 	 	 	(3	)
	SW-103A
	 	$	46,332.935	 	 	 	(2	)
	SW-103B
	 	$	46,332.935	 	 	 	(3	)
	SW-104A
	 	$	44,969.240	 	 	 	(2	)
	SW-104B
	 	$	44,969.240	 	 	 	(3	)
	SW-105A
	 	$	43,645.645	 	 	 	(2	)
	SW-105B
	 	$	43,645.645	 	 	 	(3	)
	SW-106A
	 	$	42,360.980	 	 	 	(2	)
	SW-106B
	 	$	42,360.980	 	 	 	(3	)
	SW-107A
	 	$	41,114.085	 	 	 	(2	)
	SW-107B
	 	$	41,114.085	 	 	 	(3	)
	SW-108A
	 	$	39,903.860	 	 	 	(2	)
	SW-108B
	 	$	39,903.860	 	 	 	(3	)
	SW-109A
	 	$	38,729.230	 	 	 	(2	)
	SW-109B
	 	$	38,729.230	 	 	 	(3	)
	SW-110A
	 	$	37,589.135	 	 	 	(2	)
	SW-110B
	 	$	37,589.135	 	 	 	(3	)
	SW-111A
	 	$	36,482.575	 	 	 	(2	)
	SW-111B
	 	$	36,482.575	 	 	 	(3	)
	SW-112A
	 	$	18,670.745	 	 	 	(2	)
	SW-112B
	 	$	18,670.745	 	 	 	(3	)
	SW-R
	 	 	(4	)	 	 	(4	)

 

			
	(1)	 	The interest rate on the Class SW-Z Interest shall be a per annum rate equal to the REMIC
I Net WAC.
	 
	(2)	 	For any Distribution Date, the interest rate on each SWAP REMIC Regular Interest ending with
the designation “A” shall be a per annum rate equal to 2 times the REMIC I Net WAC, subject to
a maximum rate of 2 times the REMIC Swap Rate for such Distribution Date.

46

 

			
	(3)	 	For any Distribution Date, the interest rate on each SWAP REMIC Regular Interest ending with
the designation “B” shall be a per annum rate equal to the greater of (x) the excess, if any,
of (i) 2 times the REMIC I Net WAC over (ii) 2 times the REMIC Swap Rate for such Distribution
Date and (y) 0.00%.
	 
	(4)	 	The Class SW-R Interest shall have no principal amount and shall bear no interest. The Class
SW-R Interest is the sole class of residual interest of the SWAP REMIC and is represented by
the Class A-R Certificate.

     All payments of principal and interest at the Net Mortgage Rate on each of the Mortgage Loans
received by the SWAP REMIC with respect to the Mortgage Loans in Mortgage Pool 1 shall be paid to
the SWAP REMIC Regular Interests until the principal balance of all such interests have been
reduced to zero and any losses allocated to such interests have been reimbursed. Any available
funds remaining in the SWAP REMIC on a Distribution Date after distributions to the SWAP REMIC
Regular Interests shall be distributed to the Class A-R Certificates on account of the Class SW-R
Interest. On each Distribution Date, the aggregate Interest Remittance Amount with respect to
Mortgage Pool 1 (net of expenses (other than any Net Swap Payment or Swap Termination Payment paid
to the Swap Counterparty)) shall be distributed with respect to each of the SWAP REMIC Regular
Interests based on the interest rates for each such SWAP REMIC Regular Interest. On each
Distribution Date, the aggregate Pool 1 Principal Remittance Amount shall be distributed first to
the Class SW-Z Interest until its principal balance is reduced to zero and then sequentially to
each of the other SWAP REMIC Regular Interests in ascending order of their numerical class
designation, in equal amounts to each such class in such numerical designation, until the principal
balance of each such class is reduced to zero. All losses shall be allocated among the SWAP REMIC
Regular Interests in the same manner that principal distributions are allocated. Subsequent
Recoveries and loss reimbursements related to Mortgage Pool 1 shall be allocated among the SWAP
REMIC Regular Interests in the reverse fashion from the manner in which losses are allocated.

Lower-Tier I REMIC

     The Lower-Tier I REMIC shall issue the Lower-Tier I REMIC Interests as designated below. The
following table specifies the class designation, pass-through rate, initial principal amount and
Corresponding Certificates (as applicable) for each class of Lower-Tier I REMIC Interest.

	 	 	 	 	 	 	 
	Lower-Tier II REMIC	 	 	 	 	 	Corresponding
	Interest	 	Initial Principal Amount	 	Pass-Through Rate	 	Certificates
	LTI-1A1
	 	(1)	 	(3)	 	1-A1
	LTI-1A2
	 	(1)	 	(3)	 	1-A2
	LTI-1A3
	 	(1)	 	(3)	 	1-A3
	LTI-1A4
	 	(1)	 	(3)	 	1-A4
	LTI-1M1
	 	(1)	 	(3)	 	1-M1
	LTI-1M2
	 	(1)	 	(3)	 	1-M2
	LTI-1M3
	 	(1)	 	(3)	 	1-M3
	LTI-1M4
	 	(1)	 	(3)	 	1-M4
	LTI-1M5
	 	(1)	 	(3)	 	1-M5
	LTI-1M6
	 	(1)	 	(3)	 	1-M6
	LTI-1B1
	 	(1)	 	(3)	 	1-B1
	LTI-1B2
	 	(1)	 	(3)	 	1-B2
	LTI-X
	 	(2)	 	(3)	 	N/A
	LTI-IO
	 	(4)	 	(4)	 	N/A
	LTI-R
	 	(5)	 	(5)	 	N/A

 

			
	(1)	 	The initial principal amount of each of these Lower-Tier I REMIC Interests is equal to 50%
of the initial principal amount of the Corresponding Certificates.

47

 

			
	(2)	 	The initial principal amount of the Class LTI-X Interest is equal to the excess of the (i)
the aggregate Principal Balance of the Mortgage Loans in Mortgage Pool 1 as of the Cut-off
Date over (ii) the aggregate initial principal balance of the Lower-Tier I REMIC Marker
Classes.
	 
	(3)	 	For each Distribution Date, the interest rate for each of the Lower-Tier I REMIC Regular
Interests (other than the Class LTI-IO Interest) shall be a per annum rate (but not less than
zero) equal to the product of (i) the weighted average of the interest rates on the SWAP REMIC
Regular Interests for such Distribution Date and (ii) a fraction the numerator of which is 30
and the denominator of which is the actual number of days in the Accrual Period for the LIBOR
Certificates, provided however, that for any Distribution Date on which the Class LTI-IO
Interest is entitled to a portion of interest accruals on a SWAP REMIC Regular Interest ending
with a designation “A” as described in footnote 4 below, such weighted average shall be
computed by first subjecting the rate on such SWAP REMIC Regular Interest to a cap equal to
Swap LIBOR for such Distribution Date.
	 
	(4)	 	The Class LTI-IO Interest is an interest-only class that does not have a principal balance.
For only those Distribution Dates listed in the first column of the table below, the Class
LTI-IO Interest shall be entitled to interest accrued on the SWAP REMIC Regular Interest
listed in the second column below at a per annum rate equal to the excess, if any, of (i) the
interest rate for such SWAP REMIC Regular Interest for such Distribution Date over (ii) Swap
LIBOR for such Distribution Date.

	 	 	 
	Distribution Date	 	SWAP REMIC Regular Interest
	1
	 	Class SW-1A
	1-2
	 	Class SW-2A
	1-3
	 	Class SW-3A
	1-4
	 	Class SW-4A
	1-5
	 	Class SW-5A
	1-6
	 	Class SW-6A
	1-7
	 	Class SW-7A
	1-8
	 	Class SW-8A
	1-9
	 	Class SW-9A
	1-10
	 	Class SW-10A
	1-11
	 	Class SW-11A
	1-12
	 	Class SW-12A
	1-13
	 	Class SW-13A
	1-14
	 	Class SW-14A
	1-15
	 	Class SW-15A
	1-16
	 	Class SW-16A
	1-17
	 	Class SW-17A
	1-18
	 	Class SW-18A
	1-19
	 	Class SW-19A
	1-20
	 	Class SW-20A
	1-21
	 	Class SW-21A
	1-22
	 	Class SW-22A
	1-23
	 	Class SW-23A
	1-24
	 	Class SW-24A
	1-25
	 	Class SW-25A
	1-26
	 	Class SW-26A
	1-27
	 	Class SW-27A
	1-28
	 	Class SW-28A
	1-29
	 	Class SW-29A
	1-30
	 	Class SW-30A
	1-31
	 	Class SW-31A
	1-32
	 	Class SW-32A
	1-33
	 	Class SW-33A
	1-34
	 	Class SW-34A
	1-35
	 	Class SW-35A
	1-36
	 	Class SW-36A

48

 

	 	 	 
	Distribution Date	 	SWAP REMIC Regular Interest
	1-37
	 	Class SW-37A
	1-38
	 	Class SW-38A
	1-39
	 	Class SW-39A
	1-40
	 	Class SW-40A
	1-41
	 	Class SW-41A
	1-42
	 	Class SW-42A
	1-43
	 	Class SW-43A
	1-44
	 	Class SW-44A
	1-45
	 	Class SW-45A
	1-46
	 	Class SW-46A
	1-47
	 	Class SW-47A
	1-48
	 	Class SW-48A
	1-49
	 	Class SW-49A
	1-50
	 	Class SW-50A
	1-51
	 	Class SW-51A
	1-52
	 	Class SW-52A
	1-53
	 	Class SW-53A
	1-54
	 	Class SW-54A
	1-55
	 	Class SW-55A
	1-56
	 	Class SW-56A
	1-57
	 	Class SW-57A
	1-58
	 	Class SW-58A
	1-59
	 	Class SW-59A
	1-60
	 	Class SW-60A
	1-61
	 	Class SW-61A
	1-62
	 	Class SW-62A
	1-63
	 	Class SW-63A
	1-64
	 	Class SW-64A
	1-65
	 	Class SW-65A
	1-66
	 	Class SW-66A
	1-67
	 	Class SW-67A
	1-68
	 	Class SW-68A
	1-69
	 	Class SW-69A
	1-70
	 	Class SW-70A
	1-71
	 	Class SW-71A
	1-72
	 	Class SW-72A
	1-73
	 	Class SW-73A
	1-74
	 	Class SW-74A
	1-75
	 	Class SW-75A
	1-76
	 	Class SW-76A
	1-77
	 	Class SW-77A
	1-78
	 	Class SW-78A
	1-79
	 	Class SW-79A
	1-80
	 	Class SW-80A
	1-81
	 	Class SW-81A
	1-82
	 	Class SW-82A
	1-83
	 	Class SW-83A
	1-84
	 	Class SW-84A
	1-85
	 	Class SW-85A
	1-86
	 	Class SW-86A
	1-87
	 	Class SW-87A
	1-88
	 	Class SW-88A
	1-89
	 	Class SW-89A
	1-90
	 	Class SW-90A

49

 

	 	 	 
	Distribution Date	 	SWAP REMIC Regular Interest
	1-91
	 	Class SW-91A
	1-92
	 	Class SW-92A
	1-93
	 	Class SW-93A
	1-94
	 	Class SW-94A
	1-95
	 	Class SW-95A
	1-96
	 	Class SW-96A
	1-97
	 	Class SW-97A
	1-98
	 	Class SW-98A
	1-99
	 	Class SW-99A
	1-100
	 	Class SW-100A
	1-101
	 	Class SW-101A
	1-102
	 	Class SW-102A
	1-103
	 	Class SW-103A
	1-104
	 	Class SW-104A
	1-105
	 	Class SW-105A
	1-106
	 	Class SW-106A
	1-107
	 	Class SW-107A
	1-108
	 	Class SW-108A
	1-109
	 	Class SW-109A
	1-110
	 	Class SW-110A
	1-111
	 	Class SW-111A
	1-112
	 	Class SW-112A

			
	 
	(5)	 	The Class LTI-R Interest has no principal amount and bears no interest. The Class LTI-R
Interest is the sole class of residual interest of the Lower-Tier I REMIC and is represented
by the Class A-R Certificate.

All payments received by the Lower-Tier I REMIC with respect to the SWAP REMIC Regular
Interests shall be paid to the Lower-Tier I REMIC Regular Interests until the principal balance of
all such interests have been reduced to zero and any losses allocated to such interests have been
reimbursed. Any excess amounts shall be distributed to the Class LTI-R Interest. On each
Distribution Date, an amount equal to 50% of the increase in the Pool 1 Overcollateralized Amount
shall be payable as a reduction of the principal amounts of the Lower-Tier I REMIC Marker Classes
(with such amount allocated among the Lower-Tier I REMIC Marker Classes so that each Lower-Tier I
REMIC Marker Class will have its principal reduced by an amount equal to 50% of any increase in the
Pool 1 Overcollateralized Amount that results in a reduction in the principal balance of its
Corresponding Certificates) and will be accrued and added to the principal balance of the Class
LTI-X Interest. All payments of scheduled principal and prepayments of principal on the Mortgage
Loans in Mortgage Pool 1 shall be allocated 50% to the Class LTI-X Interest and 50% to the
Lower-Tier I REMIC Marker Classes (with principal payments allocated to each of the Lower-Tier I
REMIC Marker Classes in an amount equal to 50% of the principal amounts distributed to the
Corresponding Certificates in reduction of their principal amounts). Notwithstanding the preceding
sentence, an amount equal to the principal payments that result in a reduction in the Pool 1
Overcollateralized Amount shall be treated as payable entirely to the Class LTI-X Interest.
Realized Losses related to Mortgage Pool 1 that are allocated to the Certificates shall be applied
to the Lower-Tier I REMIC Marker Classes and the Class LTI-X Interest so that after all
distributions have been made on
each Distribution Date (i) the principal balance of each of the Lower-Tier I REMIC Marker Classes
is equal to 50% of the principal balance of the Corresponding Certificates and (ii) the principal
balance of the Class LTI-X Interest is equal to the sum of (x) 50% of the aggregate Stated
Principal Balance of the Mortgage Loans in Mortgage Pool 1 and (y) 50% of the Pool 1
Overcollateralized Amount. Each Lower-Tier I REMIC Marker Class shall be entitled to receive an
amount equal to 50% of all amounts distributed to the Corresponding Certificates in respect of
unreimbursed amounts of Realized Losses. The Class LTI-X Interest shall be entitled to receive all
other amounts distributed to the Certificates in respect of unreimbursed amounts of Realized Losses
related to Mortgage Pool 1.

50

 

If on any Distribution Date the Outstanding Certificate Principal Balance of any Class of
Certificates is increased due to Subsequent Recoveries related to Mortgage Pool 1 pursuant to the
definition of “Outstanding Certificate Principal Balance”, then there shall be an equivalent
increase in the principal amounts of the Lower-Tier I REMIC Regular Interests, with such increase
allocated (before the making of distributions and the allocation of losses on the Lower-Tier I
REMIC Regular Interests on such Distribution Date) among the Lower-Tier I REMIC Regular Interests
so that (i) each of the Lower-Tier I Marker Classes has a principal balance equal to 50% of the
principal balance of the Corresponding Certificates, (ii) the Class LTI-X Interest has a principal
balance equal to the sum of (x) 50% of the aggregate Stated Principal Balance of the Mortgage Loans
in Mortgage Pool 1 and (y) 50% of the Pool 1 Overcollateralized Amount.

Upper-Tier I REMIC

     The assets of the Upper-Tier I REMIC shall be the Lower-Tier I REMIC Regular Interests. The
Upper-Tier I REMIC Regular Interests shall be designated as the regular interests in the Upper-Tier
I REMIC and the Residual I Interest shall be designated as the sole class of residual interest in
the Upper-Tier I REMIC.

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

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Class of Related
	Class	 	Initial Principal Balance	 	Rate	 	Certificates
	UTI-A1
	 	(1)	 	(2)	 	1-A1
	UTI-A2
	 	(1)	 	(2)	 	1-A2
	UTI-A3
	 	(1)	 	(2)	 	1-A3
	UTI-A4
	 	(1)	 	(2)	 	1-A4
	UTI-M1
	 	(1)	 	(2)	 	1-M1
	UTI-M2
	 	(1)	 	(2)	 	1-M2
	UTI-M3
	 	(1)	 	(2)	 	1-M3
	UTI-M4
	 	(1)	 	(2)	 	1-M4
	UTI-M5
	 	(1)	 	(2)	 	1-M5
	UTI-M6
	 	(1)	 	(2)	 	1-M6
	UTI-B1
	 	(1)	 	(2)	 	1-B1
	UTI-B2
	 	(1)	 	(2)	 	1-B2
	Uncertificated
Class 1-CE Interest
	 	(3)	 	(3)	 	N/A
	UTI-IO
	 	(4)	 	(4)	 	N/A
	Residual I Interest
	 	(5)	 	(5)	 	N/A

 

			
	(1)	 	The initial principal balance of each of these Upper-Tier I REMIC Regular Interests shall
equal the initial principal balance of its Class of Related Certificates.
	 
	(2)	 	The interest rates on each of these Upper-Tier I REMIC Regular Interests shall be an annual
rate equal to the Pool 1 Certificate Rate for the Class of Related Certificates, provided that
in lieu of the applicable Pool 1 Net
WAC set forth in the definition of Pool 1 Certificate Rate, the applicable Upper-Tier I REMIC
Net WAC Cap shall be used.
	 
	(3)	 	The Uncertificated Class 1-CE Interest shall have an initial principal balance equal to the
initial Pool 1 Overcollateralized Amount. The Uncertificated Class 1-CE Interest shall accrue
interest on a notional balance set forth in the definition of Class 1-CE Interest Distribution
Amount at a rate equal to the Class 1-CE Distributable Interest Rate. The Uncertificated
Class 1-CE Interest shall be represented by the Class 1-CE Certificates.

51

 

			
	(4)	 	The Class UTI-IO Interest shall have no principal amount and will not have an interest rate,
but will be entitled to 100% of the interest accrued with respect to the Class LTI-IO
Interest. The Class UTI-IO Interest shall be represented by the Class 1-CE Certificates.
	 
	(5)	 	The Residual I Interest has no principal amount and bears no interest. The Residual I
Interest is the sole class of residual interest of the Upper-Tier I REMIC and is represented
by the Class A-R Certificate.

The beneficial ownership of the Class SW-R Interest, the Class LTI-R Interest, the Residual I
Interest and the right to receive payments from the Class A-R Reserve Fund shall be represented by
the Class A-R Certificate.

          (b) MORTGAGE POOL 2 — The Depositor hereby instructs and authorizes the Paying Agent
to make appropriate elections to treat the portion of the Trust Fund related to Mortgage Pool 2 as
including two REMICs (the Lower-Tier II REMIC and the Upper-Tier II REMIC). This Agreement shall
be construed so as to carry out the intention of the parties that each REMIC created hereunder be
treated as a REMIC at all times prior to the date on which the Trust Fund is terminated. The
Closing Date is hereby designated as the “startup day” of each REMIC created hereunder within the
meaning of Section 860G(a)(9) of the Code. The portion of the Trust Fund related to Mortgage Pool
2, for federal income tax purposes will consist of (i) the REMIC Pools listed in the first sentence
of this paragraph, (ii) the grantor trust described in Section 2.04(d)(ii), (iii) the Reserve Fund
and the Yield Maintenance Agreements and (iv) the Class A-R Reserve Fund. The Lower-Tier II REMIC
shall hold as assets all property of the Trust Fund related to Mortgage Pool 2, other than the
Lower-Tier II REMIC Interests and the assets described in clauses (ii), (iii) and (iv) above. Each
of the Lower-Tier II REMIC Regular Interests is hereby designated a “regular interest” (within the
meaning of Section 860G(a)(1) of the Code) in the Lower-Tier II REMIC. The Upper-Tier II REMIC
shall hold as assets the several classes of uncertificated Lower-Tier II REMIC Regular Interests.
Each of the Upper-Tier II REMIC Regular Interests is hereby designated as a “regular interest”
(within the meaning of Section 860G(a)(1) of the Code) in the Upper-Tier II REMIC. The Class
LTII-R Interest is hereby designated as the sole residual interest (within the meaning of Section
860G(a)(2) of the Code) in the Lower-Tier II REMIC. The Residual II Interest is hereby designated
as the sole residual interest (within the meaning of Section 860G(a)(2) of the Code) in the
Upper-Tier II REMIC. The Class A-R Certificate evidences ownership of the Class LTII-R Interest,
the Residual II Interest and the right to receive payments from the Class A-R Reserve Fund. All
interests described in this Section 2.04(b) shall be designated as such on the Startup Day.

REMICS RELATED TO MORTGAGE POOL 2

Lower-Tier II REMIC

The Lower-Tier II REMIC shall issue the Lower-Tier II REMIC Interests as designated below.
The following table specifies the class designation, pass-through rate, initial principal amount
and Corresponding Certificates (as applicable) for each class of Lower-Tier II REMIC Interest.

	 	 	 	 	 	 	 
	Lower-Tier II REMIC	 	 	 	 	 	Corresponding
	Interest	 	Initial Principal Amount	 	Pass-Through Rate	 	Certificates
	LTII-2AV1
	 	(1)	 	(3)	 	2-AV1
	LTII-2AV2
	 	(1)	 	(3)	 	2-AV2
	LTII-2AV3
	 	(1)	 	(3)	 	2-AV3
	LTII-2F4
	 	(1)	 	(3)	 	2-F4
	LTII-2F5
	 	(1)	 	(3)	 	2-F5
	LTII-2F6
	 	(1)	 	(3)	 	2-F6
	LTII-2F7
	 	(1)	 	(3)	 	2-F7

52

 

	 	 	 	 	 	 	 
	Lower-Tier II REMIC	 	 	 	 	 	Corresponding
	Interest	 	Initial Principal Amount	 	Pass-Through Rate	 	Certificates
	LTII-2M1
	 	(1)	 	(3)	 	2-M1
	LTII-2M2
	 	(1)	 	(3)	 	2-M2
	LTII-2M3
	 	(1)	 	(3)	 	2-M3
	LTII-2M4
	 	(1)	 	(3)	 	2-M4
	LTII-2M5
	 	(1)	 	(3)	 	2-M5
	LTII-2M6
	 	(1)	 	(3)	 	2-M6
	LTII-2B1
	 	(1)	 	(3)	 	2-B1
	LTII-2B2
	 	(1)	 	(3)	 	2-B2
	LTII-X
	 	(2)	 	(3)	 	N/A
	LTII-R
	 	(4)	 	(4)	 	N/A

 

			
	(1)	 	The initial principal amount of each of these Lower-Tier II REMIC Interests is equal to
50% of the initial principal amount of the Corresponding Certificates.
	 
	(2)	 	The initial principal amount of the Class LTII-X Interest is equal to the excess of the (i)
the aggregate Principal Balance of the Mortgage Loans in Mortgage Pool 2 as of the Cut-off
Date over (ii) the aggregate initial principal balance of the Lower-Tier II REMIC Marker
Classes.
	 
	(3)	 	For each Distribution Date, the interest rate for each of the Lower-Tier II REMIC Regular
Interests shall be a per annum rate equal to the REMIC II Net WAC for such Distribution Date.
	 
	(4)	 	The Class LTII-R Interest has no principal amount and bears no interest. The Class LTII-R
Interest is the sole class of residual interest of the Lower-Tier II REMIC and is represented
by the Class A-R Certificate.

All payments of principal and interest at the Net Mortgage Rate on each of the Mortgage Loans
received by the Lower-Tier II REMIC with respect to the Mortgage Loans in Mortgage Pool 2 shall be
paid to the Lower-Tier II REMIC Regular Interests until the principal balance of all such interests
have been reduced to zero and any losses allocated to such interests have been reimbursed. Any
excess amounts shall be distributed to the Class LTII-R Interest. On each Distribution Date, an
amount equal to 50% of the increase in the Pool 2 Overcollateralized Amount shall be payable as a
reduction of the principal amounts of the Lower-Tier II REMIC Marker Classes (with such amount
allocated among the Lower-Tier II REMIC Marker Classes so that each Lower-Tier II REMIC Marker
Class will have its principal reduced by an amount equal to 50% of any increase in the Pool 2
Overcollateralized Amount that results in a reduction in the principal balance of its Corresponding
Certificates) and will be accrued and added to the principal balance of the Class LTII-X Interest.
All payments of scheduled principal and prepayments of principal on the Mortgage Loans in Mortgage
Pool 2 shall be allocated 50% to the Class LTII-X Interest and 50% to the Lower-Tier II REMIC
Marker Classes (with principal payments allocated to each of the Lower-Tier II REMIC Marker Classes
in an amount equal to 50% of the principal amounts distributed to the Corresponding Certificates in
reduction of their principal amounts). Notwithstanding the preceding sentence, an amount equal to
the principal payments that result in a reduction in the Pool 2 Overcollateralized Amount shall be
treated as payable entirely to the Class LTII-X Interest. Realized Losses related to Mortgage Pool
2 that are allocated to the Certificates shall be applied to the Lower-Tier II REMIC Marker Classes
and the Class LTII-X Interest so that after all distributions have been made on each Distribution
Date (i) the principal balance of each of the Lower-Tier II REMIC Marker Classes is equal to 50% of
the principal balance of the Corresponding Certificates and (ii) the principal balance of the Class
LTII-X Interest is equal to the sum of (x) 50% of the aggregate Stated Principal Balance of the
Mortgage Loans in Mortgage Pool 2 and (y) 50% of the Pool 2 Overcollateralized Amount. Each
Lower-Tier II REMIC Marker Class shall be entitled to receive an amount equal to 50% of all amounts
distributed to the Corresponding Certificates in respect of unreimbursed amounts of Realized
Losses. The Class LTII-X Interest shall be entitled to receive all other amounts distributed to
the Certificates in respect of unreimbursed amounts of Realized Losses related to Mortgage Pool 2.

If on any Distribution Date the Outstanding Certificate Principal Balance of any Class of
Certificates is increased due to Subsequent Recoveries related to Mortgage Pool 2 pursuant to the
definition of

53

 

Outstanding Certificate Principal Balance”, then there shall be an equivalent
increase in the principal amounts of the Lower-Tier II REMIC Regular Interests, with such increase
allocated (before the making of distributions and the allocation of losses on the Lower-Tier II
REMIC Regular Interests on such Distribution Date) among the Lower-Tier II REMIC Regular Interests
so that (i) each of the Lower-Tier II Marker Classes has a principal balance equal to 50% of the
principal balance of the Corresponding Certificates, (ii) the Class LTII-X Interest has a principal
balance equal to the sum of (x) 50% of the aggregate Stated Principal Balance of the Mortgage Loans
in Mortgage Pool 2 and (y) 50% of the Pool 2 Overcollateralized Amount.

Upper-Tier II REMIC

The assets of the Upper-Tier II REMIC shall be the Lower-Tier II REMIC Regular Interests. The
Upper-Tier II REMIC Regular Interests shall be designated as the regular interests in the
Upper-Tier II REMIC and the Residual II Interest shall be designated as the sole class of residual
interest in the Upper-Tier II REMIC.

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

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Class of Related
	Class	 	Initial Principal Balance	 	Rate	 	Certificates
	UTII-2AV1
	 	(1)	 	(2)	 	2-AV1
	UTII-2AV2
	 	(1)	 	(2)	 	2-AV2
	UTII-2AV3
	 	(1)	 	(2)	 	2-AV3
	UTII-2F4
	 	(1)	 	(2)	 	2-F4
	UTII-2F5
	 	(1)	 	(2)	 	2-F5
	UTII-2F6
	 	(1)	 	(2)	 	2-F6
	UTII-2F7
	 	(1)	 	(2)	 	2-F7
	UTII-2M1
	 	(1)	 	(2)	 	2-M1
	UTII-2M2
	 	(1)	 	(2)	 	2-M2
	UTII-2M3
	 	(1)	 	(2)	 	2-M3
	UTII-2M4
	 	(1)	 	(2)	 	2-M4
	UTII-2M5
	 	(1)	 	(2)	 	2-M5
	UTII-2M6
	 	(1)	 	(2)	 	2-M6
	UTII-2B1
	 	(1)	 	(2)	 	2-B1
	UTII-2B2
	 	(1)	 	(2)	 	2-B2
	Uncertificated
Class 2-CE Interest
	 	(3)	 	(3)	 	N/A
	Residual II Interest
	 	(4)	 	(4)	 	N/A

 

			
	(1)	 	The initial principal balance of each of these Upper-Tier II REMIC Regular Interests shall
equal the initial principal balance of its Class of Related Certificates.
	 
	(2)	 	The interest rates on each of these REMIC II Regular Interests shall be an annual rate equal
to the Pool 2 Certificate Rate for the Class of Related Certificates, provided that in lieu of
the applicable Pool 2 Net WAC set
forth in the definition of Pool 2 Certificate Rate, the applicable Upper-Tier II REMIC Net WAC
Cap shall be used.
	 
	(3)	 	The Uncertificated Class 2-CE Interest shall have an initial principal balance equal to the
initial Pool 2 Overcollateralized Amount. The Uncertificated Class 2-CE Interest shall accrue
interest on a notional balance set forth in the definition of Class 2-CE Interest Distribution
Amount at a rate equal to the Class 2-CE Distributable Interest Rate. The Uncertificated
Class 2-CE Interest shall be represented by the Class 2-CE Certificates.

54

 

			
	(4)	 	The Residual II Interest has no principal amount and bears no interest. The Residual II
Interest is the sole class of residual interest of the Upper-Tier II REMIC and is represented
by the Class A-R Certificate.

The beneficial ownership of the Class LTII-R Interest, the Residual II Interest and the right
to receive payments from the Class A-R Reserve Fund shall be represented by the Class A-R
Certificate.

          (c) (i) It is intended that the rights of each Class of the Class 1-A, Class 1-M and Class 1-B
Certificates to receive payments in respect of Excess Interest shall be treated as a right in
interest rate cap contracts written by the Class 1-CE Certificateholders in favor of the Holders of
each Class of the Class 1-A, Class 1-M and Class 1-B Certificates and such shall be accounted for
as property held separate and apart from the regular interests in the Upper-Tier I REMIC held by
the Holders of the Class 1-A, Class 1-M and Class 1-B Certificates. For information reporting
requirements, the rights of the Class 1-A, Class 1-M and Class 1-B Certificates to receive payments
in respect of Excess Interest shall be assumed to have zero value or a de minimis value. This
provision is intended to satisfy the requirements of Treasury Regulations Section 1.860G-2(i) for
the treatment of property rights coupled with REMIC interests to be separately respected and shall
be interpreted consistently with such regulation. On each Distribution Date, to the extent that
any of the Class 1-A, Class 1-M and Class 1-B Certificates receive payments in respect of Excess
Interest, such amounts, to the extent not derived from payments on the Swap Agreement, will be
treated as distributed by the Upper-Tier I REMIC to the Class 1-CE Certificates pro rata in payment
of the amounts specified in Section 6.01(c)(34) and then paid to the relevant Class of Certificates
pursuant to the related interest rate cap agreement.

It is intended that the rights of each Class of the Class 2-A, Class 2-M and Class 2-B Certificates
to receive payments in respect of Excess Interest shall be treated as a right in interest rate cap
contracts written by the Class 2-CE Certificateholders in favor of the Holders of each Class of the
Class 2-A, Class 2-M and Class 2-B Certificates and such shall be accounted for as property held
separate and apart from the regular interests in the Upper-Tier II REMIC held by the Holders of the
Class 2-A, Class 2-M and Class 2-B Certificates. For information reporting requirements, the
rights of the Class 2-A, Class 2-M and Class 2-B Certificates to receive payments in respect of
Excess Interest shall be assumed to have zero value or a de minimis value. This provision is
intended to satisfy the requirements of Treasury Regulations Section 1.860G-2(i) for the treatment
of property rights coupled with REMIC interests to be separately respected and shall be interpreted
consistently with such regulation. On each Distribution Date, to the extent that any of the Class
2-A, Class 2-M and Class 2-B Certificates receive payments in respect of Excess Interest, such
amounts, to the extent not derived from payments on the Yield Maintenance Agreements, will be
treated as distributed by the Upper-Tier II REMIC to the Class 2-CE Certificates pro rata in
payment of the amounts specified in Section 6.01A(c)(31) and then paid to the relevant Class of
Certificates pursuant to the related interest rate cap agreement.

               (ii) It is intended that the beneficial owners of the Pool 1 Certificates (other than Class
1-CE Certificates) shall be treated as having entered into a notional principal contract with
respect to the beneficial owners of the Class 1-CE Certificates. Pursuant to each such notional
principal contract, all beneficial owners of each Class of Pool 1 Certificates (other than the
Class 1-CE Certificates) shall be treated as having agreed to pay, on each Distribution Date, to
the beneficial owners of the Class 1-CE Certificates an aggregate amount equal to the excess, if
any, of (i) the amount payable on such Distribution Date on the Corresponding REMIC Regular
Interest of such Class of Certificates over (ii) the
amount payable on such Class of Certificates on such Distribution Date (such excess, a “Class
Payment Shortfall”). A Class Payment Shortfall shall be allocated to each Class of Pool 1
Certificates (other than the Class 1-CE Certificates) to the extent that interest accrued on such
Class for the related Accrual Period at the Pool 1 Certificate Rate for a Class, computed by
substituting “Upper-Tier I REMIC Net WAC Cap” for the Pool 1 Net WAC set forth in the definition
thereof, exceeds the amount of interest accrued on such Pool 1 Certificate at the Pool 1
Certificate Rate (without such substitution) for the related Accrual Period, and a Class Payment
Shortfall payable from principal collections shall be allocated to the

55

 

most subordinate Class of
such Pool 1 Certificates with an outstanding principal balance to the extent of such balance.

          (d) (i) The parties intend that the portion of the Trust Fund consisting of the Uncertificated
Class 1-CE Interest, the uncertificated Class UTI-IO Interest, the rights to receive payments
deemed made by the Class 1-A, Class 1-M and Class 1-B Certificates in respect of notional principal
contracts described in Section 2.04(c)(ii), the Supplemental Interest Trust, the Swap Agreement and
the obligation of the Holders of the Class 1-CE Certificates to pay amounts in respect of Excess
Interest to the Holders of the Class 1-A, Class 1-M and Class 1-B Certificates shall be treated as
a “grantor trust” under the Code, for the benefit of the Holders of the Class 1-CE Certificates,
and the provisions hereof shall be interpreted consistently with this intention. In furtherance of
such intention, the Trustee shall (i) furnish or cause to be furnished to the Holders of the Class
1-CE Certificates information regarding their allocable share, if any, of the income with respect
to such grantor trust, (ii) file or cause to be filed with the Internal Revenue Service Form 1041
(together with any necessary attachments) and such other forms as may be applicable and (iii)
comply with such information reporting obligations with respect to payments from such grantor trust
to the Holders of the Class 1-A, Class 1-M, Class 1-B and Class 1-CE Certificates as may be
applicable under the Code.

The parties intend that amounts paid to the Swap Counterparty under the Swap Agreement shall be
deemed for federal income tax purposes to be paid by the Class 1-CE Certificates first, out of
funds deemed received in respect of the Class UTI-IO Interest, second, out of funds deemed received
in respect of the Uncertificated Class 1-CE Interest and third, out of funds deemed received in
respect of notional principal contracts described in Section 2.04(c)(ii), and the provisions hereof
shall be interpreted consistently with this intention. On each Distribution Date, to the extent
that amounts paid to the Swap Counterparty are deemed paid out of funds received in respect of the
Uncertificated Class 1-CE Interest, such amounts will be treated as distributed by the Upper-Tier I
REMIC to the Class 1-CE Certificates pro rata in payment of the amounts specified in Section
6.01(c)(34) and then paid to the Swap Counterparty pursuant to the Swap Agreement.

The Supplemental Interest Trust shall be an “outside reserve fund” for federal income tax purposes
and not an asset of any REMIC. Furthermore, the Holders of the Class 1-CE Certificates shall be
the beneficial owners of the Supplemental Interest Trust for all federal income tax purposes, and
shall be taxable on all income earned thereon.

     (ii) The parties intend that the portion of the Trust Fund consisting of the Uncertificated
Class 2-CE Interest, the Yield Maintenance Agreements, the Reserve Fund and the obligation of the
Holders of the Class 2-CE Certificates to pay amounts in respect of Excess Interest to the Holders
of the Class 2-A, Class 2-M and Class 2-B Certificates shall be treated as a “grantor trust” under
the Code, for the benefit of the Holders of the Class 2-CE Certificates, and the provisions hereof
shall be interpreted consistently with this intention. In furtherance of such intention, the
Trustee shall (i) furnish or cause to be furnished to the Holders of the Class 2-CE Certificates
information regarding their allocable share, if any, of the income with respect to such grantor
trust, (ii) file or cause to be filed with the Internal Revenue Service Form 1041 (together with
any necessary attachments) and such other forms as may be applicable and (iii) comply with such
information reporting obligations with respect to payments from such grantor trust to the Holders
of the Class 2-A, Class 2-M, Class 2-B and Class 2-CE Certificates as
may be applicable under the Code.

          (e) Solely for the purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations, the
“latest possible maturity date” of each “regular interest” in each REMIC created hereunder is the
Distribution Date immediately following the latest scheduled maturity of any Mortgage Loan.

56

 

          (f) The “tax matters person” with respect to each REMIC created hereunder for purposes of the
REMIC Provisions shall be the beneficial owner of the Class A-R Certificate having the largest
Percentage Interest of such Class; provided, however, that such largest beneficial owner and, to
the extent relevant, each other Holder of a Class A-R Certificate, by its acceptance thereof,
irrevocably appoints the Servicer as its agent and attorney-in-fact to act as “tax matters person”
with respect to each REMIC created hereunder for purposes of the REMIC provisions.

          (g) It is intended that each REMIC created hereunder shall constitute, and that the affairs of
the Trust Fund shall be conducted so as to qualify each REMIC created hereunder as, a “real estate
mortgage investment conduit” as defined in and in accordance with the REMIC Provisions. In
furtherance of such intention, the Servicer covenants and agrees that it shall act as agent (and
the Servicer is hereby appointed to act as agent) on behalf of the Trust Fund, each REMIC created
hereunder and the Holder of the Class A-R Certificate and that in such capacity it shall:

               (i) prepare and file, or cause to be prepared and filed, in a timely manner, a U.S. Real
Estate Mortgage Investment Conduit Income Tax Return (Form 1066) for each REMIC created hereunder
and prepare and file or cause to be prepared and filed with the Internal Revenue Service and
applicable state or local tax authorities income tax or information returns for each taxable year
with respect to each REMIC created hereunder, using the calendar year as the taxable year and the
accrual method of accounting, containing such information and at the times and in the manner as may
be required by the Code or state or local tax laws, regulations, or rules, and shall furnish or
cause to be furnished to Certificateholders the schedules, statements or information at such times
and in such manner as may be required thereby;

               (ii) within thirty days of the Closing Date, shall furnish or cause to be furnished to the
Internal Revenue Service, on Form 8811 or as otherwise may be required by the Code, the name,
title, address, and telephone number of the person that the Holders of the Certificates may contact
for tax information relating thereto (and the Servicer shall act as the representative of the Trust
Fund for this purpose), together with such additional information as may be required by such Form,
and shall update such information at the time or times in the manner required by the Code;

               (iii) make or cause to be made an election, on behalf of each REMIC created hereunder, to be
treated as a REMIC, and make the appropriate designations, if applicable, in accordance with this
Section 2.04 on the federal tax return of each REMIC hereunder for its first taxable year (and, if
necessary, under applicable state law);

               (iv) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders and
to the Internal Revenue Service and, if necessary, state tax authorities, all information returns
or reports, or furnish or cause to be furnished by telephone, mail, publication or other
appropriate method such information, as and when required to be provided to them in accordance with
the REMIC Provisions, including without limitation, the calculation of any original issue discount;

               (v) provide information necessary for the computation of tax imposed on the transfer of the
Class A-R Certificate to a Disqualified Organization, or an agent (including a broker, nominee or
other middleman) of a Disqualified Organization, or a pass-through entity in which a
Disqualified Organization is the record holder of an interest (the reasonable cost of
computing and furnishing such information may be charged to the Person liable for such tax);

               (vi) ensure that federal, state or local income tax or information returns shall be signed by
the Trustee or such other Person as may be required to sign such returns by the Code or state or
local laws, regulations or rules; and

57

 

               (vii) maintain such records relating to each REMIC created hereunder as may be required by the
Code and as may be necessary to prepare the foregoing returns, schedules, statements or
information.

          (h) Pursuant to Section 6.02(b), the Servicer, with the consent of the Trustee, hereby
appoints the Global Corporate Trust MBS Group of The Bank of New York Trust Company, N.A. to
perform the duties enumerated in (g) above.

     Section 2.05 Permitted Activities of Trust. The Trust is created for the object and
purpose of engaging in the Permitted Activities.

     Section 2.06 Qualifying Special Purpose Entity. For purposes of SFAS 140, the parties
hereto intend that the Trust shall be treated as a “qualifying special purpose entity” as such term
is used in SFAS 140 and any successor rule thereto and its power and authority as stated in Section
2.05 of this Agreement shall be limited in accordance with paragraph 35 thereof.

[END OF ARTICLE II]

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AND

THE SERVICER; REPURCHASE OF MORTGAGE LOANS

     Section 3.01 Representations and Warranties of the Depositor with respect to the Mortgage
Loans.

     The Depositor hereby represents and warrants to the Trustee for the benefit of the Related
Certificateholders that on or before the Closing Date it has entered into the Sale Agreement with
the Seller, that the Seller has made the following representations and warranties with respect to
each Mortgage Loan in the Sale Agreement as of the Closing Date, which representations and
warranties run to and are for the benefit of the Depositor and the Trustee for the benefit of the
Related Certificateholders, and as to which the Depositor has assigned to the Trustee for the
benefit of the Related Certificateholders, pursuant to Section 2.01 hereof, the right to cause the
Seller to repurchase a Mortgage Loan as to which there has occurred an uncured breach of
representations and warranties in accordance with the provisions of the Sale Agreement.

     (a) The information set forth in the Mortgage Loan Schedule is complete, true and correct in
all material respects;

     (b) With respect to a Mortgage Loan which is not a Co-op Loan, the Mortgage creates a first
lien or a first priority ownership interest in an estate in fee simple in real property securing
the related Mortgage Note. With respect to a Co-op Loan, the related Mortgage is a valid,
enforceable and subsisting first security interest on the related cooperative shares securing the
related Mortgage Note, subject only to (a) liens of the related residential cooperative housing
corporation for unpaid assessments representing the Mortgagor’s pro rata share of the related
residential cooperative housing 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
related security agreement. There are no liens against or security interest in the cooperative
shares relating to each Co-op Loan (except for unpaid maintenance, assessments and other amounts
owed to the related cooperative which individually or in the aggregate will not have a material

58

 

adverse effect on such Co-op Loan), which have priority over the Trustee’s security interest in
such cooperative shares;

     (c) All payments due prior to the Cut-off Date for such Mortgage Loan have been made as of the
Closing Date, the Mortgage Loan is not delinquent in payment more than 30 days and has not been
dishonored; to the best of the Seller’s knowledge, there are no material defaults under the terms
of the Mortgage Loan; the Seller has not advanced funds, or induced, solicited or knowingly
received any advance of funds from a party other than the owner of the Mortgaged Property subject
to the Mortgage (or, with respect to a Co-op Loan, the related Mortgagor), directly or indirectly,
for the payment of any amount required by the Mortgage Loan; there has been no more than one
delinquency in excess of 30 days during the preceding twelve-month period;

     (d) To the best of the Seller’s knowledge, 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 escrow funds have been established in an amount sufficient
to pay for every such escrowed item which remains unpaid and which has been assessed but is not yet
due and payable;

     (e) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments. No Mortgagor has been released, in whole
or in part, from the terms thereof except in connection with an assumption agreement and which
assumption agreement is part of the Mortgage File and the terms of which are reflected in the
Mortgage Loan Schedule;

     (f) The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off,
counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no
such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto,
and the Mortgagor was not a debtor in any state or federal bankruptcy or insolvency proceeding at
the time the Mortgage Loan was originated;

     (g) With respect to a Mortgage Loan which is not a Co-op Loan, all buildings or other
customarily insured improvements upon the Mortgaged Property are insured by an insurer acceptable
under the FNMA Guides against loss by fire, hazards of extended coverage and such other hazards as
are provided for in the FNMA Guides or by FHLMC. All such standard hazard policies are in full
force and effect and on the date of origination contained a standard mortgagee clause naming the
Seller and its successors in interest and assigns as loss payee and such clause is still in effect
and all premiums due thereon have been paid. If required by the Flood Disaster Protection Act of
1973, as amended, the
Mortgaged Property is covered by a flood insurance policy meeting the requirements of the
current guidelines of the Federal Insurance Administration which policy conforms to FNMA and FHLMC
requirements. The Mortgage obligates the Mortgagor thereunder to maintain all such insurance at
the Mortgagor’s cost and expense, and on the Mortgagor’s failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor’s cost and expense and to seek
reimbursement therefor from the Mortgagor;

     (h) Any and all requirements of any federal, state or local laws and all applicable predatory
and abusive lending laws, including, without limitation, usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity or disclosure laws
applicable to the Mortgage Loan have been complied with in all material respects;

59

 

     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, 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;

     (j) With respect to a Mortgage Loan which is not a Co-op Loan, the Mortgage is a valid,
subsisting, enforceable and perfected first lien on the Mortgaged Property, including, all
buildings on the Mortgaged Property. The Mortgage and the Mortgage Note do not contain any
evidence of any security interest or other interest or right thereto. Such lien is free and clear
of all adverse claims, liens and encumbrances having priority over the first lien of the Mortgage
subject only to (1) the lien of non-delinquent 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 which are acceptable to mortgage lending
institutions generally and either (A) which are referred to or otherwise considered in the
appraisal made for the originator of the Mortgage Loan, or (B) which do not adversely affect the
Appraised Value of the Mortgaged Property as set forth in such appraisal, and (3) other matters to
which like properties are commonly subject which do not 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. Any security agreement, chattel mortgage or equivalent document
related to and delivered in connection with the Mortgage Loan establishes and creates a valid,
subsisting, enforceable and perfected first lien and first priority security interest on the
property described therein, and the Depositor has the full right to sell and assign the same to the
Trustee for the benefit of the Certificateholders;

     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency and other laws of general application affecting the
rights of creditors and the Depositor has taken all action necessary to transfer such rights of
enforceability to the Trustee for the benefit of the Certificateholders. All parties to the
Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage Loan and to
execute and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the Mortgage have
been duly and property executed by such parties. The proceeds of the Mortgage Loan have been fully
disbursed and there is no requirement for future advances thereunder, and any and all requirements
as to completion of any on-site or off-site improvements and as to disbursements of any escrow
funds therefor have been complied with;

     (l) The Seller is the sole owner and holder of the Mortgage Loan and the indebtedness
evidenced by the Mortgage Note, except for the Assignments of Mortgage which have been sent for
recording, and upon recordation the Seller will be the owner of record of the Mortgage and the
indebtedness evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the Trust
for the benefit of the Certificateholders, the Seller will retain the Mortgage File or any part
thereof with
respect thereto not delivered to the Trust for the benefit of the Certificateholders or its
designee in trust only for the purpose of servicing and supervising the servicing of the Mortgage
Loan. Immediately prior to the transfer and assignment to the Trust for the benefit of the
Certificateholders, the Mortgage Loan, including the Mortgage Note and the Mortgage, were not
subject to an assignment or pledge, and the Depositor had good and marketable title to and was the
sole owner thereof and had full right to transfer and sell the Mortgage Loan to the Trustee for the
benefit of the Certificateholders free and clear of any encumbrance, equity, lien, pledge, charge,
claim or security interest and has the full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign the Mortgage Loan pursuant
to this Agreement and following the sale of the Mortgage Loan, the Trustee for the benefit of the
Certificateholders will own such Mortgage Loan free and clear of any encumbrance, equity,
participation interest, lien, pledge, charge, claim or security interest;

60

 

     (m) With respect to a Mortgage Loan which is not a Co-op Loan, the Mortgage Loan is covered by
an ALTA lender’s title insurance policy or other generally acceptable form of policy or insurance
acceptable to FNMA or FHLMC, issued by a title insurer acceptable to FNMA or FHLMC and qualified to
do business in the jurisdiction where the Mortgaged Property is located, insuring (subject to the
exceptions contained in (j) (1), (2) and (3) above) the Seller, its successors and assigns, as to
the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan.
Such lender’s title insurance policy insures ingress and egress by or upon the Mortgaged Property
or any interest therein. Where required by state law or regulation, the Mortgagor has been given
the opportunity to choose the carrier of the required mortgage title insurance. The Seller, its
successors and assigns, are the sole insureds of such lender’s title insurance policy, and such
lender’s title insurance policy is in full force and effect and will be in full force and effect
upon the consummation of the transactions contemplated by this Agreement. No claims have been made
under such lender’s title insurance policy, and no prior holder of the related Mortgage, including
the Seller, has done, by act or omission, anything which would impair the coverage of such lender’s
title insurance policy;

     (n) There is no default, breach, violation or event of acceleration existent, under the
Mortgage or the related Mortgage Note and 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 permitting acceleration; and neither the Seller nor any prior mortgagee has waived any
default, breach, violation or event permitting acceleration;

     (o) 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 law could give rise to such liens) affecting
the related Mortgaged Property (or the related residential dwelling unit in the Underlying Mortgage
Property, in the case of a Co-op Loan) which are or may be liens prior to or equal to the lien of
the related Mortgage;

     (p) With respect to a Mortgage Loan which is not a Co-op Loan, all improvements subject to the
Mortgage 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 wholly
within the project with respect to a condominium unit) and no improvements on adjoining properties
encroach upon the Mortgaged Property except those which are insured against by the title insurance
policy referred to in clause (m) above and all improvements on the property comply with all
applicable zoning and subdivision laws and ordinances; the Mortgaged Property is lawfully occupied
under applicable law;

     (q) The Mortgage Loan complies in all material respects with all the terms, conditions and
requirements of the Seller’s underwriting standards in effect at the time of origination of such
Mortgage Loan. The Mortgage Notes and Mortgages (exclusive of any riders) are on forms generally
acceptable to FNMA or FHLMC. Monthly Payments under the Mortgage Note are due and payable on the
first day of each month. The Mortgage contains the usual and enforceable provisions of the
originator at the time of
origination for the acceleration of the payment of the unpaid principal amount of the Mortgage
Loan if the related Mortgaged Property is sold without the prior consent of the mortgagee
thereunder;

     (r) The Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan), is
not subject to any material damage by waste, fire, earthquake, windstorm, flood or other casualty.
To the best of the Seller’s knowledge, at origination of the Mortgage Loan there was, and there
currently is, no proceeding pending for the total or partial condemnation of the Mortgaged Property
(or underlying Mortgaged Property, in the case of a Co-op Loan);

     (s) The related 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, (l) in the case of a Mortgage
designated as a

61

 

deed of trust, by trustee’s sale, and (2) otherwise by judicial foreclosure. There
is no homestead or other exemption available to the Mortgagor which would interfere with the right
to sell the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage subject
to applicable federal and state laws and judicial precedent with respect to bankruptcy and right of
redemption or similar law;

     (t) If the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified if
required under applicable law to act as such, has been properly designated and currently so serves
and is named in the Mortgage, and no fees or expenses, except as may be required by local law, are
or will become payable by the purchaser to the trustee under the deed of trust, except in
connection with a trustee’s sale or attempted sale after default by the Mortgagor;

     (u) The Mortgage File contains an appraisal or a recertification document (in the case of a
Mortgage Loan originated under the Seller’s Streamlined Refinance Program) of the related Mortgaged
Property (or the related residential dwelling unit in the underlying Mortgaged Property, in the
case of a Co-op Loan), signed prior to the final approval of the mortgage loan application by an
appraiser approved by the Seller who had no interest, direct or indirect, in the Mortgaged Property
(or underlying Mortgaged Property, in the case of a Co-op Loan), or in any loan made on the
security thereof, and whose compensation is not affected by the approval or disapproval of the
Mortgage Loan. The appraisal is in a form acceptable to FNMA or FHLMC;

     (v) All parties which have had any interest in the Mortgage, whether as mortgagee, assignee,
pledgee or otherwise, are (or, during the period in which they held and disposed of such interest,
were) (A) in substantial compliance with any and all applicable licensing requirements of the laws
of the state wherein the Mortgaged Property (or underlying Mortgaged Property, in the case of a
Co-op Loan), is located, and (B) (1) organized under the laws of such state, or (2) qualified to do
business in such state, or (3) federal savings and loan associations or national banks or a Federal
Home Loan Bank or savings bank having principal offices in such state, or (4) not doing business in
such state;

     (w) The related Mortgage Note is not and has not been secured by any collateral except the
lien of the corresponding Mortgage and the security interest of any applicable security interest of
any applicable agreement or chattel mortgage referred to above and such collateral does not serve
as security for any other obligation;

     (x) The Mortgagor has received all disclosure materials required by applicable law with
respect to the making of such mortgage loans;

     (y) The Mortgage Loan does not contain “graduated payment” features;

     (z) The Mortgagor is not in bankruptcy and, to the best of the Seller’s knowledge, the
Mortgagor is not insolvent;

     (aa) The Mortgage Loans are fixed rate mortgage loans. Each Mortgage Loan has an original term
to maturity of not more than thirty (30) years with interest payable in arrears on the first day of
each month. No Mortgage Loan contains terms or provisions which would result in negative
amortization;

     (bb) Each Mortgage Note, each Mortgage, each Assignment of Mortgage and any other documents
required pursuant to this Agreement to be delivered to the Trustee on behalf of the
Certificateholders or its designee, or its assignee for each Mortgage Loan, have been, on or before
the Closing Date, delivered to the Trustee on behalf of the Certificateholders or its designee, or
its assignee;

62

 

     (cc) All escrow payments have been collected in full compliance with state and federal law and
the provisions of the related Mortgage Note and Mortgage. As to any Mortgage Loan that is the
subject of an escrow, escrow of funds is not prohibited by applicable law and has been established
in an amount sufficient to pay for every escrowed item that remains unpaid and has been assessed
but is not yet due and payable. No escrow deposits or other charges or payments due under the
Mortgage Note have been capitalized under any Mortgage or the related Mortgage Note. Any interest
required to be paid pursuant to state, federal and local law has been properly paid and credited;

     (dd) [Reserved];

     (ee) In the event that at origination the Mortgage Loan has a Loan-to-Value Ratio greater than
80%, the excess of the principal balance of the Mortgage Loan over 75% of the Appraised Value of
the Mortgaged Property, with respect to a refinanced Mortgage Loan, or the lesser of the Appraised
Value or the purchase price of the Mortgaged Property (or underlying Mortgaged Property, in the
case of a Co-op Loan), with respect to a purchase money Mortgage Loan, is and will be insured as to
payment defaults by a Primary Insurance Policy issued by a Qualified Insurer, except where the
primary mortgage insurance was (i) impermissible at origination at applicable law, in which case
such Mortgage Loan was originated in accordance with applicable law, (ii) cancelled at the request
of the Mortgagor pursuant to the cancellation requirements of FNMA, FHLMC, state law or, as
applicable the Home Owner and Equity Protection Act of 1994, as amended, or (iii) automatically
terminated in accordance with the termination requirements of FNMA, FHLMC, state law or, as
applicable the Home Owner and Equity Protection Act of 1994, as amended. All provisions of such
Primary Insurance Policy have been and are being complied with, such policy is in full force and
effect, and all premiums due thereunder have been paid. No action, inaction, or event has occurred
and no state of facts exists that has, or will result in the exclusion from, denial of, or defense
to coverage. Any Mortgage Loan subject to a Primary Insurance Policy obligates the Mortgagor
thereunder to maintain the Primary Insurance Policy and to pay all premiums and charges in
connection therewith. The Mortgage Rate for the Mortgage Loan as set forth on the Mortgage Loan
Schedule is net of any such insurance premium;

     (ff) The Assignment of Mortgage is in recordable form and is acceptable for recording (or, in
the case of a Co-op Loan, is in a form acceptable for filing) under the laws of the jurisdiction in
which the Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan) is
located;

     (gg) As to Mortgage Loans that are not secured by an interest in a leasehold estate, the
Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan), is located in
the state identified in the Mortgage Loan Schedule and consists of a single parcel of real property
with a detached single family residence erected thereon, or a two-to four-family dwelling, or an
individual condominium unit in a condominium project, or a dwelling unit in a residential
cooperative housing corporation or an individual unit in an attached planned unit development or a
detached planned unit
development, provided, however, that no residence or dwelling is a single parcel of real
property with a mobile home thereon. As of the date of origination, no portion of the Mortgaged
Property (or underlying Mortgaged Property, in the case of a Co-op Loan), was used for commercial
purposes, and since the date of origination, to the best of the Seller’s knowledge, no portion of
the Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan), is used for
commercial purposes;

     (hh) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), as of the date of origination of the related Mortgage Loan,
such condominium or planned unit development project met the Seller’s eligibility requirements, as
set forth in the Seller’s underwriting guidelines as of such date; in the case of each Co-op Loan,
the related residential cooperative housing corporation complied in all material respects with the
Seller’s requirements as set forth in the Seller’s underwriting guidelines as of such date;

63

 

     (ii) To the best of the Seller’s knowledge, there is no pending action or proceeding directly
involving the Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan),
in which compliance with any environmental law, rule or regulation is an issue;

     (jj) As of the Cut-off Date, the Seller has not granted any interest rate relief to the
Mortgagor under the Relief Act;

     (kk) No Mortgage Loan was made in connection with the construction or rehabilitation of a
Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan), or facilitating
the trade-in or exchange of a Mortgaged Property (or underlying Mortgaged Property, in the case of
a Co-op Loan);

     (ll) No action has been taken or failed to be taken by Depositor, on or prior to the Closing
Date, which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any Primary Insurance Policy (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 Depositor, or for any other reason under such
coverage;

     (mm) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to Sections 203 and 211 of the National Housing Act, as amended, a
savings and loan association, a savings bank, a commercial bank, credit union, insurance company or
similar institution which is supervised and examined by a federal or state authority;

     (nn) Principal payments on the Mortgage Loan commenced no more than sixty (60) days after
funds were disbursed in connection with the Mortgage Loan. The Mortgage Note is payable on the
first day of each month in equal monthly installments of principal and interest, with interest
calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than thirty years from commencement of
amortization;

     (oo) As of the Closing Date, the Mortgage Loan is a “qualified mortgage” within the meaning of
Section 860G(a)(3) of the Code (without regard to Treasury Regulations §1.860G-2(f) or any similar
rule that provides that a defective obligation is a qualified mortgage for a temporary period);

     (pp) With respect to a Mortgage Loan that is a Co-op Loan, the stock that is pledged as
security for the Mortgage Loan is held by a Person as a tenant-stockholder (as defined in Section
216 of the Code) in a cooperative housing corporation (as defined in Section 216 of the Code);

     (qq) As of the Closing Date, the Mortgage Loan is not the subject of pending or final
foreclosure proceedings and the Seller would not, based on the delinquency status of the Mortgage
Loan, institute foreclosure proceedings with respect to the Mortgage Loan prior to the next
scheduled payment for the Mortgage Loan;

     (rr) As of the Closing Date, the Mortgage Loan does not provide for interest other than at
either (i) a single fixed rate in effect throughout the term of the Mortgage Loan or (ii) a
“variable rate” (within the meaning of Treasury Regulation Section 1.860G-1(a)(3)) in effect
throughout the term of the Mortgage Loan;

     (ss) No Mortgage Loan is a “covered loan” within the meaning of the Georgia Fair Lending Act
of 2002, as amended;

64

 

     (tt) None of the Mortgage Loans are (a) covered by the Home Ownership and Equity Protection
Act of 1994 or (b) classified as a “high cost” loan or similarly classified using different
terminology under any federal, state or local law imposing heightened regulatory scrutiny or
additional legal liability for residential mortgage loans having high interest rates, points and/or
fees such as predatory lending laws; None of the Mortgage Loans are “high cost” loans as defined by
the applicable federal, state or local predatory and abusive lending laws nor is any Mortgage Loan
a “High Cost Loan” or “Covered Loan,” as applicable (as such terms are defined in the current
Standard & Poor’s LEVELS® Glossary which is now version 6.0 revised, appendix E) and no Mortgage
Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair
Lending Act of 2002, as amended; and

     (uu) As to each Mortgage Loan that is secured by an interest in a leasehold estate, (i) the
use of a leasehold estate for residential properties is an accepted practice in the area where the
related Mortgaged Property is located, (ii) residential property consisting of leasehold estates is
marketable in the area where the related Mortgaged Property is located, (iii) the related lease has
been recorded in the applicable land records, (iv) the lease is valid and in good standing and is
not subject to any prior lien by which the lease could be terminated or subject to any charge or
penalty, and (v) the remaining term of the lease does not terminate less than five years after the
maturity date of such Mortgage Loan.

     Upon discovery by any of the Depositor, the Servicer or the Trustee of a breach of any of the
foregoing representations and warranties which materially and adversely affects the value of a
Mortgage Loan or the interest of the Certificateholders (or which materially and adversely affects
the interests of the Certificateholders in the related Mortgage Loan in the case of a
representation and warranty relating to a particular Mortgage Loan), the party discovering such
breach shall give prompt written notice to the other parties and to the Seller, which notice shall
specify the date of discovery. Pursuant to the Sale Agreement, the Seller shall within 90 days
from the earlier of (i) the date of receipt of notice of such breach or (ii) the date the Seller
otherwise discovers such breach, cure such breach, substitute a Mortgage Loan pursuant to the
provisions of Section 3.03 or, if the breach relates to a particular Mortgage Loan, purchase such
Mortgage Loan from the Trustee at the Purchase Price. The Purchase Price for the purchased
Mortgage Loan shall be paid to the Servicer and shall be deposited by the Servicer in the
Collection Account promptly upon receipt, and, upon receipt by the Trustee of written notification
of such deposit signed by a Servicing Officer, the Trustee shall promptly release to the Seller the
related Mortgage File, and the Trustee shall execute and deliver such instruments of transfer or
assignment as may be provided to it by the Servicer, without recourse, as shall be necessary to
vest in the Seller or its designee, as the case may be, any Mortgage Loan released pursuant hereto,
and the Trustee shall have no further responsibility with regard to such Mortgage Loan. It is
understood and agreed that the obligation of the Seller to cure, substitute or purchase any
Mortgage Loan as to which such a breach has occurred
shall constitute the sole remedy respecting such breach available to Certificateholders or the
Trustee on behalf of Certificateholder.

     Section 3.02 Representations and Warranties of the Servicer. The Servicer represents
and warrants to, and covenants with, the Trustee for the benefit of the Certificateholders that as
of the Closing Date:

     (a) The Servicer is a limited liability company duly chartered and validly existing in good
standing under the laws of the State of Delaware, and the Servicer is duly qualified or registered
as a foreign corporation in good standing in each jurisdiction in which the ownership or lease or
its properties or the conduct of its business requires such qualification;

     (b) The execution and delivery of this Agreement by the Servicer and its performance and
compliance with the terms of this Agreement will not violate the Servicer’s certificate of
formation or by-

65

 

laws or constitute a default (or an event which, with notice or lapse of time, or
both, would constitute a default) under, or result in the breach of, any material contract,
agreement or other instrument to which the Servicer is a party or which may be applicable to the
Servicer or any of its assets;

     (c) This Agreement, assuming due authorization, execution and delivery by the Trustee and the
Depositor, constitutes a valid, legal and binding obligation of the Servicer, enforceable against
it in accordance with the terms hereof subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other laws affecting the enforcement of creditors’ rights generally
and to general principles of equity, regardless of whether such enforcement is considered in a
proceeding in equity or at law;

     (d) The Servicer is not in default with respect to any order or decree of any court or any
order, regulation or demand of any federal, state, municipal or governmental agency, which default
might have consequences that would materially and adversely affect the condition (financial or
other) or operations of the Servicer or its properties or might have consequences that would affect
its performance hereunder; and

     (e) No litigation is pending or, to the best of the Servicer’s knowledge, threatened against
the Servicer which would prohibit its entering into this Agreement or performing its obligations
under this Agreement. It is understood and agreed that the representations and warranties set
forth in this Section 3.02 shall survive the issuance and delivery of the Certificates and shall be
continuing as long as any Certificate shall be outstanding or this Agreement has been terminated.

     Section 3.03 Option to Substitute. If the Seller is required to repurchase any
Mortgage Loan pursuant to Section 2.02 or 3.01, the Seller may, at its option, within two years
from the Closing Date, remove such defective Mortgage Loan from the terms of this Agreement and
substitute another mortgage loan for such defective Mortgage Loan, in lieu of repurchasing such
defective Mortgage Loan. Any substitute Mortgage Loan shall (a) have a Principal Balance at the
time of substitution not in excess of the Principal Balance of the removed Mortgage Loan (the
amount of any difference, plus one month’s interest thereon at the Mortgage Rate borne by the
removed Mortgage Loan, being paid by the Seller and deemed to be a Principal Prepayment to be
deposited by the Servicer in the Collection Account), (b) have a Mortgage Rate not less than, and
not more than one percentage point greater than, the Mortgage Rate of the removed Mortgage Loan
(provided, however, that if the Mortgage Rate on the substitute Mortgage Loan exceeds the Mortgage
Rate on the removed Mortgage Loan, the amount of that excess interest (the “Substitute Excess
Interest”) shall be payable to the Class A-R Certificate), (c) have a remaining term to stated
maturity not later than, and not more than one year less than, the remaining term to stated
maturity of the removed Mortgage
Loan, (d) be, in the reasonable determination of the Servicer, of the same type, quality and
character (including location of the Mortgaged Property (or underlying Mortgaged Property, in the
case of a Co-op Loan)) as the removed Mortgage Loan as if the breach had not occurred, (e) have a
Loan-to-Value Ratio at origination no greater than that of the removed Mortgage Loan and (f) be, in
the reasonable determination of the Seller, in material compliance with the representations and
warranties contained in the Sale Agreement and described in Section 3.01, as of the date of
substitution.

     The Seller shall amend the Mortgage Loan Schedule to reflect the withdrawal of the removed
Mortgage Loan from this Agreement and the substitution of such substitute Mortgage Loan therefor
and shall send a copy of such amended Mortgage Loan Schedule to the Servicer and the Trustee. The
Sale Agreement provides that upon such amendment the Seller shall be deemed to have made as to such
substitute Mortgage Loan the representations and warranties set forth in Section 3.01 as of the
date of such substitution, which shall be continuing as long as any Certificate shall be
outstanding or this Agreement has not been terminated, and the remedies for breach of any such
representation or warranty shall be as set forth in Section 3.01. Upon such amendment, the
Custodian on behalf of the Trustee shall

66

 

review the Mortgage File delivered to it relating to the substitute Mortgage Loan, within
the time and in the manner and with the remedies specified in Section 2.02, except that for
purposes of this Section 3.03 (other than the two-year period specified in the first sentence of
this Section), such time shall be measured from the date of the applicable substitution. In the
event of such a substitution, accrued interest on the substitute Mortgage Loan for the month in
which the substitution occurs and any Principal Prepayments made thereon during such month shall be
the property of the Trust Fund, and accrued interest for such month on the Mortgage Loan for which
the substitution is made and any Principal Prepayments made thereon during such month shall be the
property of the Seller. The principal payment on a substitute Mortgage Loan due on the Due Date in
the month of substitution shall be the property of the Seller, and the principal payment on the
Mortgage Loan for which the substitution is made due on such date shall be the property of the
Trust Fund.

[END OF ARTICLE III]

ARTICLE IV

THE CERTIFICATES

     Section 4.01 The Certificates.

     (a) The Class A, Class A-R, Class M, Class B and Class CE Certificates shall be substantially
in the forms thereof included within Exhibits C, D, E, E-1 and F and shall, on original issue, be
executed by the Depositor and authenticated by the Trustee (or, if an Authenticating Agent has been
appointed pursuant to Section 4.06, the Authenticating Agent) upon receipt by the Trustee of the
documents specified in Section 2.01, delivered to or upon the order of the Depositor.

     (b) The Depository and the Trustee have entered into a Depository Agreement dated as of July
26, 2007 (the “Depository Agreement”). Except as provided in paragraph (c) below, the Book-Entry
Certificates shall at all times remain registered in the name of the Depository or its nominee and
at all times: (i) registration of the Book-Entry Certificates may not be transferred as provided
in Section 4.02 except to a successor to the Depository; (ii) ownership and transfers of
registration of the Book-Entry Certificates on the books of the Depository shall be governed by
applicable rules established by the Depository; (iii) the Depository may collect its usual and
customary fees, charges and expenses from its Depository Participants; (iv) the Paying Agent and
the Trustee shall deal with the Depository, Depository Participants and Indirect Participants as
representatives of the Certificate Owners of the Book-Entry Certificates for purposes of exercising
the rights of such Holders under this Agreement, and requests and directions for and votes of such
representatives shall not be deemed to be inconsistent if they are made with respect to different
Certificate Owners; and (v) the Paying Agent and the Trustee may rely and shall be fully protected
in relying upon information furnished by the Depository with respect to its Depository Participants
and furnished by the Depository Participants with respect to Indirect Participants and persons
shown on the books of such Indirect Participants as direct or indirect Certificate Owners. The
Depository Agreement provides that the Depository shall maintain book-entry records with respect to
the Certificate Owners and with respect to ownership and transfers of such Certificates.

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

67

 

     (c) If (i)(A) the Depository advises the Depositor, the Paying Agent or the Trustee in writing
that the Depository is no longer willing or able to properly discharge its responsibilities as
Depository and (B) the Trustee, the Paying Agent or the Depositor are unable after exercise of
their reasonable best efforts to locate a qualified successor or (ii) the Depositor at its option
advises the Trustee in writing that it elects to terminate the book-entry system through the
Depository, the Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying
Agent, shall notify all Certificate Owners, through the Depository, of the occurrence of any such
event and of the availability of definitive, fully registered Certificates (the “Definitive
Certificates”) to Certificate Owners requesting the same. Upon surrender to the Trustee or, if a
Paying Agent has been appointed under Section 4.05, the Paying Agent, of the Book-Entry
Certificates by the Depository for registration and receipt by the Trustee or, if a Paying Agent
has been appointed under Section 4.05, the Paying Agent, of an adequate supply of certificates from
the Depositor, the Trustee or if the Paying Agent is appointed under Section 4.05, the Paying Agent
shall issue the Definitive Certificates based on information received from the Depository. Neither
the Depositor, the Servicer, the Paying Agent nor the Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be protected in relying on,
such instructions.

     (d) The Certificates (other than the Class A-R Certificate and the Class CE Certificates)
shall be issuable in the minimum original dollar denominations (and integral multiples of $1.00 in
excess of such amount) and aggregate original dollar denominations per Class as set forth in the
following table (except that, if necessary, in order to aggregate the Original Certificate
Principal Balance of a Class, one Certificate of such Class will be issued in a different
denomination). A single Class A-R Certificate, a single Class 1-CE Certificate and a single Class
2-CE Certificate will be issued in definitive form.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate Original Certificate	 	 
	 	 	 	 	 	 	Principal Balance or Notional	 	 
	 	 	Minimum	 	Amount of all	 	 
	 	 	Original	 	Certificates of the	 	CUSIP
	Class	 	Denomination	 	Indicated Class	 	Number
	Class 1-A1
	 	$	100,000.00	 	 	$	206,244,000	 	 	16165Y AA        0
	Class 1-A2
	 	$	100,000.00	 	 	$	107,550,000	 	 	16165Y AB        8
	Class 1-A3
	 	$	100,000.00	 	 	$	83,423,000	 	 	16165Y AC        6
	Class 1-A4
	 	$	100,000.00	 	 	$	44,136,000	 	 	16165Y AD        4
	Class 2-AV1
	 	$	100,000.00	 	 	$	136,689,000	 	 	16165Y AQ        5
	Class 2-AV2
	 	$	100,000.00	 	 	$	71,622,000	 	 	16165Y AR        3
	Class 2-AV3
	 	$	100,000.00	 	 	$	48,474,000	 	 	16165Y AS        1
	Class 2-F4
	 	$	100,000.00	 	 	$	65,088,000	 	 	16165Y AT        9
	Class 2-F5
	 	$	100,000.00	 	 	$	53,222,000	 	 	16165Y AU        6
	Class 2-F6
	 	$	100,000.00	 	 	$	44,905,000	 	 	16165Y AV        4
	Class 2-F7
	 	$	100,000.00	 	 	$	29,042,000	 	 	16165Y AW        2
	Class 1-M1
	 	$	100,000.00	 	 	$	8,515,000	 	 	16165Y AE        2
	Class 1-M2
	 	$	100,000.00	 	 	$	4,257,000	 	 	16165Y AF        9
	Class 1-M3
	 	$	100,000.00	 	 	$	2,602,000	 	 	16165Y AG        7
	Class 1-M4
	 	$	100,000.00	 	 	$	2,365,000	 	 	16165Y AH        5
	Class 1-M5
	 	$	100,000.00	 	 	$	1,892,000	 	 	16165Y AJ        1
	Class 1-M6
	 	$	100,000.00	 	 	$	1,656,000	 	 	16165Y AK        8
	Class 2-M1
	 	$	100,000.00	 	 	$	7,680,000	 	 	16165Y AX        0
	Class 2-M2
	 	$	100,000.00	 	 	$	3,840,000	 	 	16165Y AY        8
	Class 2-M3
	 	$	100,000.00	 	 	$	2,880,000	 	 	16165Y AZ        5
	Class 2-M4
	 	$	100,000.00	 	 	$	2,400,000	 	 	16165Y BA        9
	Class 2-M5
	 	$	100,000.00	 	 	$	1,680,000	 	 	16165Y BB        7

68

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate Original Certificate	 	 
	 	 	 	 	 	 	Principal Balance or Notional	 	 
	 	 	Minimum	 	Amount of all	 	 
	 	 	Original	 	Certificates of the	 	CUSIP
	Class	 	Denomination	 	Indicated Class	 	Number
	Class 2-M6
	 	$	100,000.00	 	 	$	1,680,000	 	 	16165Y BC        5
	Class A-R(1)
	 	$	100.00	 	 	$	100	 	 	16165Y BH        4
	Class 1-B1
	 	$	100,000.00	 	 	$	1,656,000	 	 	16165Y AL        6
	Class 1-B2
	 	$	100,000.00	 	 	$	2,365,000	 	 	16165Y AM        4
	Class 2-B1
	 	$	100,000.00	 	 	$	1,680,000	 	 	16165Y BD        3
	Class 2-B2
	 	$	100,000.00	 	 	$	2,400,000	 	 	16165Y BE        1
	Class 1-CE
	 	 	N/A	 	 	$	(2	)	 	16165Y AP 7
	Class 2-CE
	 	 	N/A	 	 	$	(2	)	 	16165Y BG        6

 

			
	(1)	 	The Class A-R Certificate represents the residual interest in each of the REMIC Pools.
	 
	(2)	 	The Class 1-CE and Class 2-CE Certificates will have original notional amounts of
$473,047,387.57 and $480,002,174.89, respectively.

     The Certificates shall be signed by manual or facsimile signature on behalf of the Depositor
by an officer of the Depositor. Certificates bearing the manual or facsimile signatures of
individuals who were at the time of signature officers of the Depositor shall bind the Depositor,
notwithstanding that such individuals or any of them have ceased to be an officer prior to the
authentication and delivery of such Certificate or did not hold such offices at the date of such
Certificates. No Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a manual authentication by an officer of
the Trustee (or if an Authenticating Agent has been appointed pursuant to Section 4.06, the
Authenticating Agent) and such authentication upon any Certificate shall be conclusive evidence,
and the only evidence, that such Certificate has been duly authenticated and delivered hereunder.
All Certificates shall be dated the date of their authentication.

     Section 4.02 Registration of Transfer and Exchange of Certificates.

     (a) The Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying Agent,
shall cause to be kept a certificate register (the “Certificate Register”) in which, subject to
such reasonable regulations as it may prescribe, the Trustee or, if a Paying Agent has been
appointed under Section 4.05, the Paying Agent, shall provide for the registration of Certificates
and of transfers and exchanges of Certificates as herein provided.

     (b) Upon surrender for registration of transfer of any Certificate at any office or agency of
the Trustee, or if a Paying Agent has been appointed hereunder pursuant to Section 4.05, the Paying
Agent maintained for such purpose, the Depositor shall execute and the Trustee or if an
Authenticating Agent is appointed under Section 4.06, the Authenticating Agent shall authenticate
and deliver, in the name of the designated transferee or transferees, a Certificate of a like Class
and aggregate Percentage Interest and dated the date of authentication by the Authenticating Agent.

     (c) No transfer of a Class CE Certificate shall be made unless such transfer is made pursuant
to an effective registration statement or otherwise in accordance with the requirements under the
Securities Act. If such a transfer is to be made in reliance upon an exemption from said Act, (i)
the Depositor may require (except with respect to the initial transfer of a Class CE Certificate
from J.P. Morgan Securities Inc. and except if the transferee executes a certificate substantially
in the form of Exhibit H hereto) a written opinion of independent counsel acceptable to and in form and
substance

69

 

reasonably satisfactory to the Depositor and the Trustee that such transfer may be made
pursuant to an exemption, describing the applicable exemption and the basis therefor, from said Act
and laws or is being made pursuant to said Act and laws, which opinion of counsel shall not be an
expense of the Trust Fund, the Trustee, the Depositor or the Servicer, and (ii) the Depositor shall
require the transferee to execute a certification substantially in the form of Exhibit H or Exhibit
I.

     (d) (i) No transfer of an ERISA Restricted Certificate or a Class A-R Certificate shall be
made unless the prospective transferee provides the Depositor and the Trustee with (I) a
representation as set forth in Exhibit K for Class A-R Certificates or in Exhibit M for ERISA
Restricted Certificates to the effect that such transferee is not an employee benefit plan subject
to Title I of ERISA, a plan subject to Section 4975 of the Code or a plan or arrangement subject to
any provisions under any federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to the foregoing provisions of ERISA or the Code (“Similar Law”)
(collectively, a “Plan”), and is not directly or indirectly acquiring the Certificate for, on
behalf of or with any assets of any such Plan, or (II) solely in the case of an ERISA Restricted
Certificate, (A) if the Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation as set forth in Exhibit M that such transferee is an insurance company that is
acquiring the ERISA-Restricted Certificate with assets contained in an “insurance company general
account,” as defined in Section V(E) of Prohibited Transaction Class Exemption (“PTCE”) 95-60, and
the acquisition and holding of the Certificate are covered and exempt under Sections I and III of
PTCE 95-60, or (B) solely in the case of a Definitive Certificate, an Opinion of Counsel reasonably
satisfactory to the Depositor and the Trustee to the effect that the acquisition and holding of
such Certificate will not constitute or result in a nonexempt prohibited transaction under ERISA or
the Code, or a violation of Similar Law, and will not subject the Depositor, the Servicer or the
Trustee to any obligation in addition to those expressly undertaken in this Agreement, which
Opinion of Counsel shall not be an expense of the Depositor, the Servicer or the Trustee.

     (ii) No transfer of a Certificate (other than a Class CE Certificate) shall be registered
unless the transferee provides the Depositor and the Trustee with a representation as set forth in
Exhibit M that either (i) such transferee is not, and is not acting for, on behalf of or with any
assets of, an employee benefit plan or other arrangement subject to Title I of ERISA or plan
subject to Section 4975 of the Code, or (ii) until the termination of the Swap Agreement, the
acquisition and holding of the Certificate will not constitute or result in a non-exempt prohibited
transaction under Title I of ERISA or Section 4975 of the Code.

     (iii) Except in the case of a Definitive Certificate, the representations set forth in
paragraphs (i) and (ii) of this Subsection 4.02(d), other than subparagraph (i)(II)(B), shall be
deemed to have been made to the Depositor and the Trustee by the transferee’s acceptance of a
Certificate (or the acceptance by a Certificate Owner of the beneficial interest in any Class of
Certificates). Notwithstanding any other provision herein to the contrary, any purported transfer
of a Certificate to or on behalf of a Plan without the delivery to the Depositor of a
representation or an Opinion of Counsel reasonably satisfactory to the Depositor and the Trustee as
described above shall be void and of no effect. None of the Depositor, the Servicer or the Trustee
shall be under any liability to any Person for any registration or transfer of any Certificate that
is in fact not permitted by this Section 4.02(d) nor shall the Paying Agent be under any liability
for making any payments due on such Certificate to the Holder thereof or taking any other action
with respect to such Holder under the provisions of this Agreement so long as the transfer was
registered in accordance with the foregoing requirements. The Depositor, Servicer, Paying Agent
and/or Trustee shall be entitled, but not obligated, to recover from any Holder of any Certificate
that was in fact a Plan and that held such Certificate in violation of this Section 4.02(d) all
payments made on such Certificate at and after the time it commenced such holding. Any such
payments so recovered shall be paid and delivered to the last preceding Holder of such Certificate
that is not a Plan.

70

 

     (e) At the option of a Certificateholder, a Certificate may be exchanged for another
Certificate or Certificates of authorized denominations of a like Class, upon surrender of the
Certificate to be exchanged at any office or agency of the Trustee, or if a Paying Agent has been
appointed under Section 4.05, the Paying Agent, maintained for such purpose. Whenever the
Certificate is so surrendered for exchange, the Depositor shall execute and the Authenticating
Agent shall authenticate and deliver, the Certificate which the Certificateholder making the
exchange is entitled to receive. Every Certificate presented or surrendered for transfer or
exchange shall (if so required by the Authenticating Agent) be duly endorsed by, or be accompanied
by a written instrument of transfer in the form satisfactory to the Authenticating Agent duly
executed by, the Holder thereof or his attorney duly authorized in writing.

     (f) No service charge shall be made to the Holder for any transfer or exchange of a
Certificate, but the Servicer may require payment by the Certificateholders of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any transfer or
exchange of such Certificate.

     (g) All Certificates surrendered for transfer or exchange shall be destroyed by the Trustee or
if a Paying Agent has been appointed under Section 4.05, the Paying Agent, in accordance with the
Trustee’s or, if a Paying Agent has been appointed under Section 4.05, the Paying Agent’s, standard
procedures.

     (h) [Reserved].

     (i) A Disqualified Organization is prohibited from acquiring beneficial ownership of a Class
A-R Certificate. Notwithstanding anything to the contrary contained herein, (i) unless and until
the Servicer and the Trustee shall have received an Opinion of Counsel, satisfactory to it in form
and substance, to the effect that the absence of the conditions contained in this Section 4.02(i)
would not result in the imposition of federal tax upon any REMIC created hereunder or cause any
REMIC created hereunder to fail to qualify as a REMIC, no transfer, sale or other disposition of
the Class A-R Certificate (including for purposes of this section any beneficial interest therein)
may be made without the express written consent of the Certificate Registrar or, if no Certificate
Registrar is appointed, the Trustee, which consent is to be granted by the Certificate Registrar
or, if no Certificate Registrar is appointed, the Trustee only upon compliance with the
requirements of this Section and (ii) no transfer, sale or other disposition of the Class A-R
Certificate (or any beneficial interest therein) may be made to a Person who is not a U.S. Person
unless such Person furnishes the transferor, the Certificate Registrar and the Trustee, with a duly
completed and effective Form W-8ECI (or any successor thereto) or an Opinion of Counsel to the
effect that such transfer is in accordance with the requirements of the Code and that the transfer
will not be disregarded for federal income tax purposes. As a condition to granting its consent to
a transfer of a Class A-R Certificate, the Certificate Registrar or, if no Certificate Registrar is
appointed, the Trustee, shall require the proposed transferee of such Certificate (including, in
the case of the initial issuance of the Class A-R Certificate, the initial Holder thereof) to
execute a letter and affidavit substantially in the form attached hereto as Exhibit K and shall
require the proposed transferor (other than in the case of the transfer to the initial Holder) of
such Certificate to execute a letter substantially in the form attached hereto as Exhibit K-1. In
the absence of a contrary instruction from the transferor of such Certificate, declaration (11) in
the affidavit in Exhibit K may be left blank. If the transferor requests by written notice to the
Certificate Registrar or, if no Certificate Registrar is appointed, the Trustee, prior to the date
of the proposed transfer that one of the two other forms of declaration (11) of such affidavit be
used, then the Certificate Registrar or, if no Certificate Registrar is appointed, the Trustee,
shall require that such form of declaration (11) be included in such affidavit.

     As a condition to the granting of the consent referred to in this Section 4.02(i), prior to
the transfer, sale, pledge, hypothecation or other disposition of the Class A-R Certificate or any
interest

71

 

therein, the Certificate Registrar or, if no Certificate Registrar is appointed, the Trustee
shall require that (1) the proposed transferee deliver to the Trustee or Certificate Registrar, as
applicable, its taxpayer identification number and state, under penalties of perjury that such
number is the social security or employer identification number, as the case may be, of the
transferee or provide an affidavit under penalties of perjury stating that as of the date of such
transfer such transferee is not and has no intention of becoming a Disqualified Organization; (2)
the proposed transferee deliver to the Trustee or Certificate Registrar, as applicable, an
affidavit stating (i) that such transferee is not acquiring such Class A-R Certificate as an agent,
broker, nominee, or middleman for a Disqualified Organization, (ii) if the Class A-R Certificate is
a “non-economic residual interest” within the meaning of Treas. Reg. §1.860E-1(c)(2), (X) that no
purpose of the acquisition of the Class A-R Certificate is to avoid or impede the assessment or
collection of tax, (Y) that such transferee has historically paid its debts as they came due and
will continue to pay its debts as they come due, and (Z) that such transferee represents that it
understands that, as the holder of the non-economic residual interest, the transferee may incur tax
liabilities in excess of any cash flows generated by the interest and that the transferee intends
to pay taxes associated with holding the residual interest, and (iii) unless the Certificate
Registrar or, if no Certificate Registrar is appointed, the Trustee consents to the transfer of the
Class A-R Certificate to a Person who is not a U.S. Person and who has furnished either a duly
completed and effective Form W-8ECI (or any successor thereto) or an Opinion of Counsel to the
effect that the transfer will not be disregarded for federal income tax purposes, that it is a U.S.
Person; (3) if so requested by the transferor in written notice provided to the Certificate
Registrar or, if no Certificate Registrar is appointed, the Trustee, prior to the date of the
proposed transfer, the proposed transferee deliver to the Trustee or Certificate Registrar, as
applicable, an affidavit that includes a declaration made in the form of declaration (11) in the
affidavit set forth in Exhibit K requested by the transferor; and (4) the transferor deliver to the
Certificate Registrar or, if no Certificate Registrar is appointed, the Trustee a written
certification that as of the date of such transfer it has no knowledge and no reason to know that
the affirmations described in clauses (1), (2) and (3) were false. The Certificate Registrar or,
if no Certificate Registrar is appointed, the Trustee shall not grant the consent referred to in
this Section 4.02(i) if it has actual knowledge that any statement made in the affidavit issued
pursuant to the preceding sentence is not true. Notwithstanding any purported transfer, sale or
other disposition of the Class A-R Certificate to a Disqualified Organization or in violation of
the provisions of this Section 4.02(i), such transfer, sale or other disposition shall be deemed to
be of no legal force or effect whatsoever and such Disqualified Organization shall not be deemed to
be a Class A-R Certificateholder for any purpose hereunder, including, but not limited to, the
receipt of distributions on such Class A-R Certificate. If any purported transfer shall be in
violation of the provisions of this Section 4.02(i) then the prior Holder of the Class A-R
Certificate shall, upon discovery that the transfer of such Class A-R Certificate was not in fact
permitted by this Section 4.02(i), be restored to all rights and obligations as a Holder thereof
retroactive to the date of the purported transfer of such Class A-R Certificate. The Trustee, the
Servicer and the Certificate Registrar shall be under no liability to any Person for any
registration or transfer of a Class A-R Certificate that is not permitted by this Section 4.02(i)
or for making payments due on such Class A-R Certificate to the purported Holder thereof or taking
any other action with respect to such purported Holder under the provisions of this Agreement so
long as the transfer was not registered under the written certification of the Certificate
Registrar or, if no Certificate Registrar is appointed, the Trustee as described in this Section
4.02(i). The prior Holder shall be entitled to recover from any purported Holder of a Class A-R
Certificate that was in fact not a permitted purported transferee under this Section 4.02(i) at the
time it became a purported Holder all payments made to such purported Holder on such Class A-R
Certificate; provided that the Servicer shall not be responsible for such recovery. Each Class A-R
Certificateholder, by the acceptance of the Class A-R Certificate, shall be deemed for all purposes
to have consented to the provisions of this Section 4.02(i) and to any amendment to this Agreement
deemed necessary by counsel of the Trustee or the Servicer to ensure that the Class A-R Certificate
is not transferred to a Disqualified Organization and that any transfer of such Class A-R
Certificate will not cause the imposition of a tax upon any REMIC created hereunder or cause any
REMIC created hereunder to fail to qualify as a REMIC. The restrictions on transfer of the Class
A-R

72

 

Certificate will cease to apply and be void upon receipt by the Certificate Registrar or, if
no Certificate Registrar is appointed, the Trustee of an Opinion of Counsel to the effect that such
restrictions on transfer are no longer necessary to avoid the risk of material federal taxation to
any REMIC created hereunder or prevent any REMIC created hereunder from qualifying as a REMIC.

     (j) The Servicer shall make available upon written request to each Holder and each proposed
transferee of a Class B-3, Class B-4 or Class B-5 Certificate such information as may be required
to permit the proposed transfer to be effected pursuant to Rule 144A under the Securities Act.

     Section 4.03 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated
Certificate is surrendered to the Trustee or, if a Paying Agent has been appointed under Section
4.05, the Paying Agent, or the Trustee or, if a Paying Agent has been appointed under Section 4.05,
the Paying Agent, receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and (b) there is delivered to the Trustee or, if a Paying Agent has been appointed
under Section 4.05, the Paying Agent, such security or indemnity as may be required by it to save
it harmless, then, in the absence of notice to the Trustee or, if a Paying Agent has been appointed
under Section 4.05, the Paying Agent, that such Certificate has been acquired by a bona fide
purchaser, the Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying
Agent, shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed,
lost or stolen Certificate, a new Certificate of like tenor and Class. Upon the issuance of any
new Certificate under this Section, the Trustee or, if a Paying Agent has been appointed under
Section 4.05, the Paying Agent, may require of the Certificateholder the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto
and any other expenses connected therewith. Any replacement Certificate of any Class issued
pursuant to this Section shall constitute complete and indefeasible evidence of ownership of the
Percentage Interest in the distributions to which the Certificateholders of such Class are
entitled, as if originally issued, whether or not the mutilated, destroyed, lost or stolen
Certificate shall be found at any time, and such mutilated, destroyed, lost or stolen Certificate
shall be of no force or effect under this Agreement, to the extent permitted by law.

     Section 4.04 Persons Deemed Owners. Prior to due presentation of a Certificate of any
Class for registration of transfer, the Depositor, the Servicer, the Paying Agent and the Trustee
may treat the Person in whose name any Certificate is registered on the Record Date as the owner of
such Certificate and the Percentage Interest in the distributions to which the Certificateholders
of such Class are entitled on the relevant date as the Holder of such Certificate and the
Percentage Interest represented by such Certificate for the purpose of receiving remittances
pursuant to Section 6.01 and for all other purposes whatsoever, and neither the Depositor, the
Servicer, the Paying Agent nor the Trustee shall be affected by notice to the contrary.

     Section 4.05 Appointment of Paying Agent and Certificate Registrar; Certificate
Account. The Trustee shall appoint a Paying Agent and a Certificate Registrar (the
“Certificate Registrar”) hereunder, provided such Paying Agent and such Certificate Registrar shall
not be the Depositor, the Seller, or an Affiliate of the Depositor or the Seller. No later than
two Business Days prior to each Distribution Date, the Servicer shall deposit or cause to be
deposited with the Paying Agent from funds on deposit in the Collection Account a sum up to the
Available Distribution Amount, such sum to be held in trust for the benefit of Certificateholders
in a segregated account (the “Certificate Account”) which shall be an Eligible Account in the name
of “The Bank of New York Trust Company, N.A., as Trustee, in trust for and for the benefit of the
Certificateholders of Multi-Class Mortgage Pass-Through Certificates, Chase Home Finance LLC as
subservicer for JPMorgan Chase Bank, N.A. as Servicer, ChaseFlex Trust Series 2007-M1 (Pool 1 &
Pool 2) – Certificate Account”. The Paying Agent shall establish such Certificate Account with a
commercial bank, a savings bank or a savings and loan association. The Paying Agent may invest moneys in the Certificate Account in Eligible Investments, which shall
mature

73

 

not later than a date sufficient to make payment on the Distribution Date next following the
date of such investment and shall not be sold or disposed of prior to maturity. One day of income
and gain realized from any such investment shall be for the benefit of the Paying Agent as
additional compensation and shall be subject to its withdrawal or order from time to time. The
amount of any losses incurred in respect of any such investments made for the benefit of the Paying
Agent (to the extent not offset by income from other such investments) shall be deposited in the
Certificate Account by the Paying Agent, out of its own funds immediately as realized. All income
and gain realized from any such investment in excess of one calendar day’s earnings shall be for
the benefit of the Servicer as additional compensation and will be remitted to the Servicer by the
Paying Agent. The amount of any losses incurred in respect of any such investments made for the
benefit of the Servicer (to the extent not offset by income from other such investments) shall be
deposited in the Certificate Account by the Servicer out of its own funds immediately as realized.
The Servicer shall cause the Paying Agent to perform each of the obligations of the Paying Agent
set forth herein and shall be liable to the Trustee and the Certificateholders for failure of the
Paying Agent to perform such obligations. So long as the Paying Agent is a party other than the
Trustee, the Trustee shall have no liability in connection with the performance or failure of
performance of the Paying Agent. The Trustee designates The Bank of New York Trust Company, N.A.
as the initial Paying Agent and initial Certificate Registrar. Only the Trustee may remove the
Paying Agent and Certificate Registrar and may do so at will, provided that the Trustee gives 20
days’ prior written notice of such removal to the Paying Agent and Certificate Registrar and the
Rating Agencies.

     The Paying Agent will hold all sums held by it for the payment to Related Certificateholders
in trust for the benefit of the Related Certificateholders entitled thereto until such sums shall
be paid to such Related Certificateholders.

     Section 4.06 Authenticating Agents.

     (a) The Trustee may appoint one or more Authenticating Agents (each, an “Authenticating
Agent”) which shall be authorized to act on behalf of the Trustee in authenticating the
Certificates. Wherever reference is made in this Agreement to the authentication of Certificates
by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to
include authentication on behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating
Agent must be an entity organized and doing business under the laws of the United States of America
or of any state, having a combined capital and surplus of at least $15,000,000, authorized under
such laws to do a trust business and subject to supervision or examination by federal or state
authorities. So long as the Authenticating Agent is a party other than the Trustee, the Trustee
shall have no liability in connection with the performance or failure of performance of the
Authenticating Agent. The Trustee hereby appoints the Paying Agent as the initial Authenticating
Agent.

     (b) Any Person into which any Authenticating Agent may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or consolidation to which
any Authenticating Agent shall be a party, or any Person succeeding to the corporate agency
business of any Authenticating Agent, shall continue to be the Authenticating Agent without the
execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

     (c) Any Authenticating Agent may at any time resign by giving at least 30 days’ advance
written notice of resignation to the Trustee and the Depositor. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of termination to such
Authenticating Agent and the Depositor. Upon receiving a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall cease to be eligible in
accordance within the provisions of this Section 4.06, the Trustee may appoint a successor Authenticating Agent, shall give written
notice of such

74

 

appointment to the Depositor and shall mail notice of such appointment to all
Holders of Certificates. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers, duties and responsibilities of its
predecessor hereunder, with like effect as if originally named as Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions of this
Section 4.06. No Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee. Each of the Authenticating Agent, Certificate
Registrar and Paying Agent shall be afforded the same rights, protections and indemnities as the
Trustee as set forth under Article VIII hereunder.

[END OF ARTICLE IV]

ARTICLE V

ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

     Section 5.01 Servicer to Service Mortgage Loans. The Servicer shall service and
administer the Mortgage Loans and shall have full power and authority, acting alone or through
Sub-Servicers as provided in Section 5.02, to do any and all things which it may deem necessary or
desirable in connection with such servicing and administration, all in accordance with Accepted
Servicing Practices. Without limiting the generality of the foregoing, the Servicer in its own
name or in the name of a Sub-Servicer shall, pursuant to a power of attorney granted hereby by the
Trustee for such purposes, when the Servicer or the Sub-Servicer, as the case may be, believes it
appropriate in its best judgment, to execute and deliver, on behalf of the Certificateholders and
the Trustee or any of them, any and all instruments of satisfaction or cancellation, or of partial
or full release or discharge and all other comparable instruments, with respect to the Mortgage
Loans and with respect to the related Mortgaged Properties. The Servicer will indemnify the
Trustee for any misuse of such power of attorney provided hereunder.

     The Servicer may agree to any modification, waiver or amendment that would affect or impair
the payments on, or the security for, a Mortage Loan that is in default or with respect to which
default is reasonably foreseeable, if, in its reasonable judgement, such modification, waiver or
amendment is in the best interest of Certificateholders.

     Notwithstanding anything herein to the contrary, the Servicer shall not make or permit any
modification of a Mortgage Loan that would cause any REMIC Pool to fail to qualify as a REMIC for
federal income tax purposes or that would result in the imposition of any material tax under
Section 860F(a) or Section 860G(d) of the Code.

     The Servicer shall furnish to the Trustee for execution and redelivery to the Servicer or, at
the request of the Servicer, a Sub-Servicer, such documents necessary or appropriate to enable the
Servicer to service and administer the Mortgage Loans and the Trustee shall not be responsible for
the Servicer’s application thereof. The Servicer agrees to remain eligible as either a FNMA or
FHLMC seller/servicer, or both, for so long as it is Servicer.

     All Servicing Advances made by the Servicer in effecting the timely payment of taxes,
insurance and assessments on the properties subject to the Mortgage Loans shall not, for the
purpose of calculating monthly distributions to Related Certificateholders, be added to the amount
owing under the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loan so permit, and such
Servicing Advances shall be recoverable by the Servicer to the extent permitted by Sections 5.09
and 5.23.

75

 

     Section 5.02 Sub-Servicing Agreements Between Servicer and Sub-Servicers; Enforcement of
Sub-Servicer’s Obligations.

     (a) The Servicer may enter into Sub-Servicing Agreements with Sub-Servicers for the servicing
and administration of all or part of the Mortgage Loans. References in this Agreement to actions
taken or to be taken by the Servicer in servicing the Mortgage Loans serviced by it include
actions taken or to be taken by a Sub-Servicer on behalf of the Servicer. Each Sub-Servicing
Agreement will be upon such terms and conditions as are not inconsistent with this Agreement and as
the Servicer and the Sub-Servicer have agreed. The Servicer hereby agrees to notify the Trustee in
writing promptly upon the appointment of any Sub-Servicer. For purposes of this Agreement, the
receipt by the Sub-Servicer of any amount with respect to a Mortgage Loan (other than amounts
representing servicing compensation or reimbursement for an advance) shall be treated as the
receipt by the Servicer of such amount. The Sub-Servicer shall deposit all such funds in an
Eligible Account.

     (b) As part of its servicing activities hereunder, the Servicer, for the benefit of the
Trustee and the Related Certificateholders, shall enforce the obligations of each Sub-Servicer
under the related Sub-Servicing Agreement. Such enforcement, including, without limitation, the
legal prosecution of claims, termination of Sub-Servicing Agreements as appropriate, and the
pursuit of other remedies, shall be in such form and carried out to such an extent and at such time
as the Servicer, in its good faith business judgment, would require were it the owner of the
related Mortgage Loans. The Servicer shall pay the costs of such enforcement at its own expense
but shall be reimbursed therefor only (i) from a general recovery resulting from such enforcement
only to the extent, if any, that such recovery exceeds all amounts due in respect of the related
Mortgage Loans or (ii) from a specific recovery of costs, expenses or attorneys’ fees against the
party against whom such enforcement is directed.

     (c) The Servicer shall not permit a Sub-Servicer to perform any servicing responsibilities
hereunder with respect to the Mortgage Loans unless that Sub-Servicer first agrees in writing with
the Servicer to deliver an Assessment of Compliance and an Accountant’s Attestation in such manner
and at such times that permits the Servicer to comply with Section 5.25 of this Agreement.

     Section 5.03 Successor Sub-Servicers. The Servicer shall be entitled to terminate any
Sub-Servicing Agreement that may exist in accordance with the terms and conditions of such
Sub-Servicing Agreement and without any limitation by virtue of this Agreement.

     Section 5.04 Liability of the Servicer. Notwithstanding any Sub-Servicing Agreement,
any of the provisions of this Agreement relating to agreements or arrangements between the Servicer
and a Sub-Servicer or reference to actions taken through a Sub-Servicer or otherwise, the Servicer
shall remain obligated and liable to the Trustee and Related Certificateholders for the servicing
and administering of the Mortgage Loans in accordance with the provisions of this Agreement without
diminution of such obligation or liability by virtue of such Sub-Servicing Agreements or
arrangements or by virtue of indemnification from the Sub-Servicer and to the same extent and under
the same terms and conditions as if the Servicer alone were servicing and administering the
Mortgage Loans. The Servicer shall be entitled to enter into any agreement with a Sub-Servicer for
indemnification of the Servicer and nothing contained in this Agreement shall be deemed to limit or
modify such indemnification.

     Section 5.05 No Contractual Relationship Between Sub-Servicer and Trustee or
Certificateholders. Any Sub-Servicing Agreement that may be entered into and any other
transactions or services relating to the Mortgage Loans involving a Sub-Servicer in its capacity as
such and not as an originator shall be deemed to be between the Sub-Servicer and the Servicer
alone, and the Trustee and Certificateholders shall not be deemed parties thereto and shall have no
claims, rights, obligations, duties or liabilities with respect to the Sub-Servicer.

76

 

     Section 5.06 Termination of Sub-Servicing Agreement. If the Servicer shall for any
reason no longer be the Servicer hereunder (including by reason of any Event of Default), the
Servicer shall thereupon terminate each Sub-Servicing Agreement that may have been entered into,
and the Trustee, its designee or the successor servicer and the Trustee shall not be deemed to have
assumed any of the Servicer’s interest therein or to have replaced the Servicer as a party to any
such Sub-Servicing Agreement.

     Section 5.07 Collection of Mortgage Loan Payments. Continuously from the date hereof
until the principal and interest on all Mortgage Loans are paid in full, the Servicer will proceed
diligently to collect all payments due under each of the Mortgage Loans when the same shall become
due and payable; provided, however, that the Servicer may elect, to the extent consistent with
Accepted Servicing Practices, to waive any late payment charge and shall, to the extent such
procedures shall be consistent with this Agreement, follow such collection procedures as it follows
with respect to conventional mortgage loans held in its own portfolio. Any such arrangements shall
not diminish or otherwise affect the Servicer’s obligation to make Advances pursuant to Section
6.03.

     Section 5.08 Establishment of Collection Account; Deposit in Collection Account. With
respect to all of the Mortgage Loans, the Servicer shall segregate and hold all funds collected and
received pursuant to a Mortgage Loan separate and apart from any of its own funds and general
assets and shall establish and maintain one or more collection accounts for the benefit of the
Related Certificateholders (collectively, the “Collection Account”) which are Eligible Accounts, in
the form of a trust account, in the name of “The Bank of New York Trust Company, N.A., as Trustee,
in trust for and for the benefit of the Certificateholders of Multi-Class Mortgage Pass-Through
Certificates, Chase Home Finance LLC as subservicer for JPMorgan Chase Bank, N.A. as Servicer,
ChaseFlex Trust Series 2007-M1 (Pool 1 & Pool 2) – Collection Account.” Such Collection Account
shall be established with a commercial bank, a savings bank or a savings and loan association. The
Servicer may invest, or cause the institution maintaining the Collection Account to invest, moneys
in the Collection Account in Eligible Investments, which shall mature not later than two Business
Days preceding the Distribution Date next following the date of such investment and shall not be
sold or disposed of prior to its maturity. All income and gain realized from any such investment
shall be for the benefit of the Servicer as additional compensation and shall be subject to its
withdrawal or order from time to time. The amount of any losses incurred in respect of any such
investments (to the extent not offset by income from other such investments) shall be deposited in
the Collection Account by the Servicer out of its own funds immediately as realized; provided,
however, that if the Trustee becomes the Servicer, the Trustee shall not be required to deposit the
amount of any loss incurred prior to it becoming the Servicer.

The Servicer shall deposit or cause to be deposited in the Collection Account on a daily basis (and
not later than the second Business Day following receipt), and retain therein:

     (i) All payments which were received after the Cut-off Date on account of principal of
the Mortgage Loans (other than the principal portion of Monthly Payments due on or before
the Cut-off Date), and all Principal Prepayments collected on or after the Cut-off Date;

     (ii) All payments which were received after the Cut-off Date on account of interest on
the Mortgage Loans (net of the Servicing Fee)(other than the interest portion of Monthly
Payments due on or before the Cut-off Date);

     (iii) Any Subsequent Recovery or Net Liquidation Proceeds;

     (iv) All Insurance Proceeds received by the Servicer under any title, hazard or other
insurance policy, including amounts required to be deposited pursuant to Sections 5.16 and
5.20, other than proceeds to be held in the Escrow Account or applied to the restoration or
repair of the

77

 

Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op
Loan) or released to the Mortgagor in accordance with the Servicer’s normal servicing
procedures or otherwise applied or held as required by applicable law;

     (v) All awards or settlements in respect of condemnation proceedings affecting any
Mortgaged Property (or underlying Mortgaged Property, in the case of a Co-op Loan), which
are not released to the Mortgagor in accordance with the Servicer’s normal servicing
procedures;

     (vi) All Repurchase Proceeds;

     (vii) All Advances made by the Servicer pursuant to Section 6.03;

     (viii) All amounts representing revenues under the insurance provided pursuant to
Section 5.19 to the extent of any losses borne by any Certificateholder;

     (ix) All revenues from any Mortgaged Property (or underlying Mortgaged Property in the
case of a Co-op Loan) acquired by the Servicer by foreclosure or deed in lieu of foreclosure
net of any Servicing Advances with respect to such Mortgaged Property (or underlying
Mortgaged Property in the case of a Co-op Loan); and

     (x) Any other amounts required to be deposited therein pursuant to this Agreement.

     The Servicer shall maintain accounting records on a Mortgage Loan by Mortgage Loan basis with
respect to the Collection Account. The Servicer shall give notice to the Trustee, any Paying
Agent, the Depositor and each Rating Agency of any change in the location of the Collection
Account, prior to the use thereof. Notwithstanding anything to the contrary herein, no Monthly
Payment or any portion thereof shall be permitted to remain in the Collection Account for more than
12 months. Any Monthly Payment or any portion thereof that has remained in the Collection Account
for 12 months shall be deemed a Principal Prepayment and distributed to Certificateholders pursuant
to the provisions of this Agreement on the Distribution Date immediately following the end of such
12 month period.

     Section 5.09 Permitted Withdrawals from the Collection Account. The Servicer may,
from time to time, withdraw funds from the Collection Account for the following purposes:

     (a) to reimburse itself for Advances made pursuant to Section 6.03 (including amounts to
reimburse the related Sub-Servicer for advances made pursuant to the applicable Sub-Servicing
Agreement), the Servicer’s and the related Sub-Servicer’s right to receive reimbursement pursuant
to this subclause (i) being limited to amounts received on particular Mortgage Loans which represent
Late Collections (net of the Servicing Fees) with respect to those particular Mortgage Loans;

     (b) to pay itself the Servicing Fee;

     (c) to reimburse itself for unreimbursed Servicing Advances, or to pay the related
Sub-Servicer any unreimbursed Servicing Advances, the Servicer’s right to receive reimbursement or
make payments to the Sub-Servicer pursuant to this subclause (c) with respect to any Mortgage Loan
being limited to related Liquidation Proceeds, Insurance Proceeds, Subsequent Recoveries and
condemnation awards;

     (d) to reimburse itself (or the related Sub-Servicer) or the Depositor for expenses incurred
by and recoverable by or reimbursable to it pursuant to Section 5.01 or 5.16;

78

 

     (e) to reimburse itself (or the related Sub-Servicer) for any Nonrecoverable Advances;

     (f) to pay to itself (or the related Sub-Servicer) income earned on the investment of funds
deposited in the Collection Account;

     (g) to make deposits into the Certificate Account in the amounts and in the manner provided
for herein;

     (h) to make payments to itself or others pursuant to any provision of this Agreement, and to
clear and terminate the Collection Account upon the liquidation of the last Mortgage Loan in
Mortgage Pool 1 and Mortgage Pool 2 pursuant to the provisions of this Agreement; and

     (i) to withdraw amounts deposited in error.

     Section 5.10 Establishment of Escrow Account; Deposits in Escrow Account. With
respect to those Mortgage Loans on which the Servicer or any Sub-Servicer collects Escrow Payments,
if any, the Servicer shall, and shall cause any Sub-Servicer to, segregate and hold all funds
collected and received pursuant to each such Mortgage Loan which constitute Escrow Payments
separate and apart from any of its own funds and general assets and shall establish and maintain
one or more Escrow Accounts, in the form of trust accounts. Such Escrow Accounts shall be
established with a commercial bank, a mutual savings bank or a savings and loan association the
deposits of which are insured by the FDIC in a manner which shall provide maximum available
insurance thereunder, and which may be drawn on by the Servicer. The Servicer shall, if requested
by the Trustee, give notice to the Trustee of the location of any Escrow Account. Nothing in this
paragraph shall be deemed to require the Servicer to collect Escrow Payments in the absence of a
provision in the related Mortgage requiring such collection.

     The Servicer shall deposit, or cause to be deposited, in any Escrow Account or Accounts on a
daily basis, and retain therein, (i) all Escrow Payments collected on account of any Mortgage Loans
serviced by the Servicer, for the purpose of effecting timely payment of any such items as required
under the terms of this Agreement and (ii) all amounts representing proceeds of any hazard
insurance policy which are to be applied to the restoration or repair of any Mortgaged Property (or
underlying Mortgaged Property, in the case of a Co-op Loan). The Servicer shall make withdrawals
therefrom only to effect such payments as are required under this Agreement, and for such other
purposes as are set forth in Section 5.11. The Servicer shall be entitled to retain any interest
paid on funds deposited in the Escrow Account by the depository institution other than interest on
escrowed funds required by law to be paid to the related Mortgagor and, to the extent required by
law, the Servicer shall pay interest on escrowed funds
to the related Mortgagor notwithstanding that the Escrow Account is non-interest-bearing or
that interest paid thereon is insufficient for such purposes.

     Section 5.11 Permitted Withdrawals from Escrow Account. Withdrawals from any Escrow
Account or Accounts may be made by a Servicer only (i) to effect timely payments of ground rents,
taxes, assessments, water rates, Standard Hazard Policy premiums, or other items constituting
Escrow Payments for the related Mortgage, (ii) to reimburse the Servicer for any Servicing Advance
made by the Servicer, with respect to a related Mortgage Loan but only from amounts received on the
related Mortgage Loan which represent late payments or collections of Escrow Payments thereunder,
(iii) to refund to any Mortgagor any funds found to be in excess of the amounts required under the
terms of the related Mortgage Loan or under applicable law, (iv) for application to restoration or
repair of the property subject to the related Mortgage, (v) to pay to the Servicer, or to the
Mortgagor to the extent required by law, any interest paid on the funds deposited in the Escrow
Account, (vi) to clear and terminate the Escrow Account on the termination of this Agreement or
(vii) to withdraw amounts deposited in error.

79

 

     Section 5.12 Payment of Taxes, Insurance and Other Charges. With respect to each
Mortgage Loan, the Servicer shall maintain, or cause to be maintained, accurate records reflecting
any delinquencies or nonpayments with regard to taxes, assessments and Standard Hazard Policy
premiums. The Servicer assumes full responsibility for ensuring the payment of all such bills and
shall effect payments of all such bills irrespective of each Mortgagor’s faithful performance in
the payment of same or the making of the Escrow Payments and shall make advances from its own funds
to effect such payments.

     Section 5.13 Transfer of Accounts. The Servicer may transfer the Collection Account
or Escrow Account to an Eligible Account maintained with a different depository institution from
time to time and shall notify the Trustee and the Paying Agent of any such transfer.

     Section 5.14 [Reserved].

     Section 5.15 Maintenance of the Primary Insurance Policies. The Servicer shall not
take, or permit any related Sub-Servicer to take, any action which would result in non-coverage
under any applicable Primary Insurance Policy of any loss which, but for the actions of the
Servicer or Sub-Servicer, would have been covered thereunder. Except as otherwise required by
applicable law, to the extent coverage is available and until the Loan-to-Value Ratio of the
related Mortgage Loan is reduced to 80%, the Servicer shall keep or cause to be kept in full force
and effect each such Primary Insurance Policy in an amount equal to the amount by which the unpaid
principal balance of the related Mortgage Loan exceeds 75% of the value (as described in the
definition of Loan-to-Value Ratio) of the related Mortgaged Property (or underlying Mortgaged
Property, in the case of a Co-op Loan). The Servicer shall not cancel or refuse to renew any such
Primary Insurance Policy or consent to any related Sub-Servicer canceling or refusing to renew any
such Primary Insurance Policy applicable to a Mortgage Loan subserviced by it, that is in effect at
the date of the initial issuance of the Certificates and is required to be kept in force hereunder
unless the replacement Primary Insurance Policy for such canceled or non-renewed policy is
maintained with an insurer whose claims-paying ability is rated at least as high as the original
insurer or is acceptable to each Rating Agency as confirmed in writing by each such Rating Agency,
unless otherwise required by law.

     Section 5.16 Maintenance of Standard Hazard Policies.

     (a) The Servicer shall cause to be maintained for each Mortgage Loan (other than a Co-op Loan)
a Standard Hazard Policy with extended coverage as is prudent in the area where the Mortgaged
Property is located in an amount which is equal to the greater of (i) the lesser of (A) 100% of the
maximum insurable value of the improvements securing such Mortgage Loan or (B) the principal
balance owing on such Mortgage Loan, or (ii) such amount required to prevent the Mortgagor or
mortgagee from becoming a co-insurer. If the Mortgaged Property is in an area identified at the
time of origination in the Federal Register by the Federal Emergency Management Agency as having
special flood hazards (and such flood insurance has been made available) the Servicer will cause to
be maintained a flood insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration with a generally acceptable insurance carrier, in an amount
representing coverage not less than the least of (i) the outstanding Principal Balance of the
Mortgage Loan, (ii) the full insurable value or (iii) the maximum amount of insurance which is
available under the Flood Disaster Protection Act of 1973, as amended. The Servicer shall also
maintain on property acquired upon foreclosure, or by deed in lieu of foreclosure, of any Mortgage
Loan, fire and hazard insurance with extended coverage in an amount which is not less than the
lesser of (i) the outstanding Principal Balance of the Mortgage Loan or (ii) the maximum insurable
value of the improvements which are a part of such property, liability insurance, and, to the
extent available, flood insurance in an amount as provided above. Any amounts collected by the
Servicer under any such policies (other than amounts to be applied to the restoration or repair of
the property subject to the related Mortgage or property acquired in liquidation of the Mortgage
Loan, or released to

80

 

the Mortgagor in accordance with the Servicer’s normal servicing procedures)
shall be deposited, subject to applicable law, in the Collection Account. It is understood and
agreed that no earthquake or other additional insurance need be required by the Servicer of any
Mortgagor or maintained on property acquired in respect of a Mortgage Loan, other than pursuant to
such applicable laws and regulations as shall at any time be in force and as shall require such
additional insurance. All such Standard Hazard Policies and other policies shall be endorsed with
standard mortgagee clauses with loss payable to the Servicer or its designee. Any such Standard
Hazard Policies or other policies may be in the form of blanket policies; provided, however, that
in the event of any claim arising in connection with a hazard loss the Servicer shall be obligated,
in the case of blanket insurance policies, to deposit in the Collection Account any amount not
payable under such blanket policy because of a deductible clause in such policy and not otherwise
payable under an individual policy. The Servicer shall not interfere with the Mortgagor’s freedom
of choice in selecting either his insurance carrier or agent; provided, however, that the Servicer
shall not accept any such insurance policies from insurance companies unless such companies are
acceptable insurers in the discretion of the Servicer.

     (b) Any cost incurred by the Servicer in maintaining any of the foregoing insurance shall not,
for the purpose of calculating monthly distributions to Related Certificateholders, be added to the
amount owing under the Mortgage Loan, notwithstanding that the terms of the Mortgage Loan so
permit. Such costs (other than the costs of maintaining a blanket hazard insurance policy not
attributable to a specific Mortgaged Property) shall be recoverable by the Servicer from the
Mortgagor or out of Insurance Proceeds, Subsequent Recoveries or Liquidation Proceeds or to the
extent permitted by Section 5.09.

     Section 5.17 [Reserved].

     Section 5.18 [Reserved].

     Section 5.19 Fidelity Bond and Errors and Omissions Insurance. The Servicer shall
maintain, at its own expense, a blanket fidelity bond and an errors and omissions insurance policy,
with broad coverage with responsible companies on all officers, employees or other persons acting on behalf of the
Servicer in any capacity with regard to the Mortgage Loans to handle funds, money, documents and
papers relating to the Mortgage Loans. Any such fidelity bond and errors and omissions insurance
shall protect and insure the Servicer against losses, including forgery, theft, embezzlement,
fraud, errors and omissions and negligent acts of such persons and shall be maintained at a level
acceptable to FNMA. No provision of this Section 5.19 requiring such fidelity bond and errors and
omissions insurance shall diminish or relieve the Servicer from its duties and obligations as set
forth in this Agreement. Upon request of the Trustee, the Servicer shall cause to be delivered to
the Trustee a certification evidencing coverage under such fidelity bond and insurance policy.
Promptly upon receipt of any notice from the surety or the insurer that such fidelity bond or
insurance policy has been terminated or modified in a materially adverse manner, the Servicer shall
notify the Trustee and each Rating Agency of any such termination or modification.

     Section 5.20 Collections under Insurance Policies; Enforcement of Due-On-Sale Clauses;
Assumption Agreements.

     (a) In connection with its activities as administrator and servicer of the Mortgage Loans, the
Servicer agrees to present, on behalf of itself, the Trustee and the Related Certificateholders,
claims to the insurer under any Standard Hazard Policies and, in this regard, to take such
reasonable action as shall be necessary to permit recovery under any insurance policies. Pursuant
to Section 5.08, the Servicer shall deposit Insurance Proceeds in the Collection Account.

81

 

     (b) When any Mortgaged Property (or stock allocated to a dwelling unit, in the case of a Co-op
Loan) is conveyed by the Mortgagor, the Servicer shall enforce any due-on-sale clause contained in
any Mortgage Note or Mortgage, to the extent permitted by such Mortgage Note or Mortgage,
applicable law and governmental regulations. Subject to the foregoing, the Servicer is authorized
to take or enter into an assumption or substitution agreement from or with the Person to whom such
property has been or is about to be conveyed. In connection with such assumption or substitution,
the Servicer shall apply such underwriting standards and follow such practices and procedures as
shall be normal and usual and as it applies to mortgage loans owned solely by it.

     Notwithstanding the foregoing paragraph or any other provision of this Agreement, the Servicer
shall not be deemed to be in default, breach or any other violation of its obligations hereunder by
reason of any conveyance by the Mortgagor of the Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) or any assumption of a Mortgage Loan by operation of
law which the Servicer in good faith determines it may be restricted by law from preventing, for
any reason whatsoever.

     (c) Subject to the Servicer’s duty to enforce any due-on-sale clause to the effect set forth
in Section 5.20(b), in any case in which a Mortgaged Property (or stock allocated to a dwelling
unit, in the case of a Co-op Loan) is to be conveyed to a Person by a Mortgagor, and such Person is
to enter into an assumption agreement or modification agreement or supplement to the Mortgage Note
or Mortgage, the Servicer shall so notify the Trustee by forwarding to the Trustee the original
copy of such assumption or substitution agreement, which copy shall be added by the Trustee to the
related Mortgage File and shall, for all purposes, be considered a part of such Mortgage File to
the same extent as all other documents and instruments constituting a part thereof. In connection
with any such assumption, modification agreement or substitution agreement, the interest rate of
the related Mortgage Note shall not be changed, the principal amount of the Mortgage Note shall not
be increased or decreased and the maturity of the Mortgage Note shall not be extended, nor shall it
be shortened by more than one year. Any fee collected by the Servicer for entering into an
assumption or substitution of liability agreement with respect to such Mortgage Loan shall be
retained by the Servicer as additional servicing compensation.

     Section 5.21 Income and Realization from Defaulted Mortgage Loans. The Servicer, on
behalf of the Trustee, shall foreclose upon or otherwise comparably convert the ownership of
Mortgaged Properties (or stock allocated to a dwelling unit, in the case of a Co-op Loan) securing
such of the Mortgage Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments pursuant to Section 5.07, shall
manage, conserve, protect and operate such Mortgaged Properties (or stock allocated to a dwelling
unit, in the case of a Co-op Loan) for the purposes of their prompt disposition and sale, and shall
dispose of such Mortgaged Properties (or stock allocated to a dwelling unit, in the case of a Co-op
Loan) on such terms and conditions as it deems in the best interests of the Related
Certificateholders. The Servicer shall sell such property prior to the close of the third calendar
year beginning after the year in which such foreclosure or conversion occurs or such longer period
as would not prevent such Mortgaged Property (or stock allocated to a dwelling unit, in the case of
a Co-op Loan) from constituting “foreclosure property” within the meaning of Section 860G(a)(8) of
the Code. The Servicer will ensure that no Mortgaged Property shall be held, rented or otherwise
used in such a manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail
to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code or (ii)
subject any REMIC Pool to the imposition of any federal income taxes on the income earned on such
Mortgaged Property, including any taxes imposed by reason of Section 860F or 860G(c) of the Code.
In connection with such activities, the Servicer shall follow such practices and procedures as it
shall deem necessary or advisable, as shall be normal and usual in its general mortgage servicing
activities, including its management of foreclosed properties for a temporary period as
contemplated herein. The foregoing is subject to the provisions of Section 5.28 of this Agreement
and to the proviso that the Servicer shall not be required to expend its own funds in connection
with any management,

82

 

foreclosure or towards the restoration of any property unless it shall
determine that such management, restoration or foreclosure will increase any Subsequent Recoveries
or Liquidation Proceeds of the Mortgage Loan to Related Certificateholders after reimbursement to
itself for such expenses (respecting which it shall have priority for purposes of withdrawals from
the Collection Account pursuant to Section 5.09). The Servicer shall be permitted to earn income
with respect to any Mortgaged Properties (or stock allocated to a dwelling unit, in the case of a
Co-op Loan), provided such income does not constitute “net income from foreclosure property” within
the meaning of Section 860G(c) of the Code. The income earned from the management of such
Mortgaged Properties (or stock allocated to a dwelling unit, in the case of a Co-op Loan), net of
reimbursement to the Servicer for expenses (including any taxes) incurred in connection with such
management, shall be applied to the payment of principal of and interest on the related defaulted
Mortgage Loans (with interest accruing and principal amortizing as though such Mortgage Loans were
still current) and all such income shall be deemed, for all purposes in this Agreement, to be
payments on account of principal and interest on the related Mortgage Notes and shall be deposited
into the Collection Account. To the extent the income received is in excess of the amount
attributable to amortizing principal and accrued interest at the Net Mortgage Rate on the related
Mortgage Loan, such excess shall be deposited in the Collection Account.

     The Servicer shall take into account the existence of any hazardous substances, hazardous
wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response
Compensation and Liability Act, as amended, the Resources Conservation and Recovery Act of 1976, as
amended, or other federal, state or local environmental legislation, on a Mortgaged Property (or
underlying Mortgaged Property, in the case of a Co-op Loan) in determining whether to foreclose
upon or otherwise comparably convert the ownership of such property. To the extent that the
Servicer has actual knowledge of any such substance or waste, it shall consult with the Trustee
regarding the appropriate course of action. The Servicer shall not institute foreclosure actions
with respect to a property containing substance or waste as described above if it reasonably
believes that such action would not be consistent with its servicing standards, and in no event
shall the Servicer manage, operate or take any other action with respect thereto which the Servicer
in good faith believes will result in “clean-up” or other liability under applicable law.
The net income from the rental or sale of an REO Property shall be deposited in the Collection
Account within two (2) Business Days after receipt thereof by the Servicer.

     The Servicer may enter into a special servicing agreement with an unaffiliated holder of 100%
Percentage Interest of the Class of Class B Certificates then outstanding having the highest
numerical class designation or a holder of a class of securities representing interests in such
Class B Certificate and/or other subordinate mortgage pass-through certificates, such agreement to
be (i) substantially in the form of Exhibit J hereto or (ii) subject to each Rating Agency’s
acknowledgment that the ratings of the Certificates in effect immediately prior to the entering
into of such agreement would not be qualified, downgraded or withdrawn and the Certificates would
not be placed on credit review status (except for possible upgrading) as a result of such
agreement. Any such agreement may contain provisions whereby such holder may instruct the Servicer
to commence or delay foreclosure proceedings with respect to delinquent Mortgage Loans and will
contain provisions for the deposit of cash by the holder that would be available for distribution
to Certificateholders if Liquidation Proceeds are less than they otherwise may have been had the
Servicer acted in accordance with its normal procedures.

     Section 5.22 Trustee to Cooperate; Release of Mortgage Files.

     (a) Upon becoming aware of the payment in full of any Mortgage Loan, or upon the receipt by
the Servicer of a notification that payment in full will be made in a manner customary for such
purposes, the Servicer shall immediately notify the Custodian with a copy to the Trustee by a
certification (which certification shall include a statement to the effect that all amounts
received or to be received in connection with such payment which are required to be deposited in
the Collection Account pursuant to

83

 

Section 5.08 have been or will be so deposited) of a Servicing
Officer and shall request delivery to it of the Mortgage File. Upon receipt of such certification
and request, within five Business Days the Custodian on behalf of the Trustee shall release the
related Mortgage File to the Servicer and the Trustee will execute and deliver to the Servicer the
request for reconveyance, deed of reconveyance or release or satisfaction of mortgage or such other
instruments releasing the lien of the Mortgage as have been provided by the Servicer to the
Trustee, together with the Mortgage Note with written evidence of cancellation thereon, and the
Trustee shall have no further responsibility with respect to said Mortgage File. Upon any such
payment in full, or the receipt of such notification, the Servicer is authorized to procure from
the Trustee under the deed of trust which secured the Mortgage Note, if any, a deed of full
reconveyance covering the property encumbered by such deed of trust, which assignment of deed of
trust, except as otherwise provided by any applicable law, shall be recorded by the Servicer in the
appropriate land records in the jurisdiction in which the assignment of deed of trust is recorded,
or, as the case may be, to procure from the Trustee an instrument of satisfaction or, if the
Mortgagor so requests, an assignment without recourse, which deed of reconveyance, instrument of
satisfaction or assignment shall be delivered by the Servicer to the Person or Persons entitled
thereto. No expenses incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be chargeable to the Collection Account or to the Trustee.

     (b) From time to time as is appropriate for the servicing or foreclosure of any Mortgage Loan,
the Servicer shall deliver to the Custodian a certificate of a Servicing Officer requesting that
possession of the Mortgage File be released to the Servicer and certifying as to the reason for
such release and that such release will not invalidate any insurance coverage provided in respect
of the Mortgage Loan under any of the insurance policies required by this Agreement. With such
certificate, the Servicer shall require that the Custodian on behalf of the Trustee release the
Mortgage File, and, within five Business Days, the Custodian shall deliver the Mortgage File or any
document therein to the Servicer. The Servicer shall cause each Mortgage File so released to be
returned to the Custodian on behalf of the Trustee when the need therefor by the Servicer no longer
exists, unless (i) the Mortgage Loan has been
liquidated and the Net Liquidation Proceeds relating to the Mortgage Loan have been deposited
in the Collection Account or (ii) the Mortgage File has been delivered to an attorney, or to a
public trustee or other public official as required by law, for purposes of initiating or pursuing
legal action or other proceedings for the foreclosure of the Mortgaged Property (or stock allocated
to a dwelling unit, in the case of a Co-op Loan) either judicially or non-judicially, and the
Servicer has delivered to the Custodian on behalf of the Trustee a certificate of a Servicing
Officer in the form of Exhibit L hereto certifying as to the name and address of the Person to
which such Mortgage File was delivered and the purpose or purposes of such delivery.

     (c) Upon written request of the Servicer, the Trustee shall execute and deliver to the
Servicer any court pleadings, requests for trustee’s sale or other documents prepared by and
delivered by the Servicer to the Trustee necessary to the foreclosure or trustee’s sale in respect
of a Mortgaged Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan) or to
any legal action brought to obtain judgment against any Mortgagor on the Mortgage Note or Mortgage
or to obtain a deficiency judgment, or to enforce any other remedies or rights provided by the
Mortgage Note or Mortgage or otherwise available at law or in equity. Together with such documents
or pleadings, the Servicer shall deliver to the Trustee a certificate of a Servicing Officer
requesting that such pleadings or documents be executed by the Trustee and certifying as to the
reason such documents or pleadings are required and that the execution and delivery thereof by the
Trustee will not invalidate any insurance coverage under the insurance policies required under this
Agreement or invalidate or otherwise affect the lien of the Mortgage, except for the termination of
such a lien upon completion of the foreclosure or trustee’s sale. The Trustee may rely on such
certificate without further inquiry.

84

 

     (d) The Servicer may provide an electronic transmission for release of documents under this
Section 5.22 in a form agreed to in advance of initial transmission by both the Servicer and the
Custodian, which form shall contain information readable without intervention by Custodian’s data
processing operations computer hardware and software staff, and arranged in a record layout to be
specified by Custodian (a “Paperless Release Request”). The Servicer agrees to maintain and
control access to electronic signature information and assumes liability for any unauthorized use
thereof, except for any unauthorized use thereof by the Custodian and, provided that, the Servicer
shall have no liability arising from the form of transmission if the Servicer complies with the
Custodian’s standards set forth in the next paragraph of this Section 5.22(d). The Servicer also
agrees to maintain accurate records of electronic transactions related to the custodial files. The
Servicer hereby authorizes the Custodian to automatically append the electronic signature of an
authorized representative to the applicable request for release of documents and agrees and
acknowledges that by appending such authorized representative’s electronic signature, the Custodian
shall be entitled to rely thereon. For purposes of this Agreement the term “electronic signature”
means an electronic identifier intended by the person using it to have the same force and effect as
the use of a manual signature.

          The Servicer agrees in advance to comply with all Custodian data encryption, security and
record layout standards in connection with any Paperless Release Request as may be amended from
time to time upon notice from Custodian to the Servicer. The Custodian reserves the right to
restrict or suspend the Servicer’s access to the Custodian’s computer systems for maintenance or
repairs or for any other reason in the Custodian’s sole discretion, provided however that the
Custodian shall promptly provide the Servicer with notice of such restriction or suspension.
Notwithstanding the foregoing, the Servicer is authorized to transmit and the Custodian is
authorized to accept signed facsimile copies of the requests for document release described in this
Section 5.22.

     Section 5.23 Servicing and Other Compensation. The Servicer, as compensation for its
activities hereunder, shall be entitled to receive, on or prior to each Distribution Date, the
amounts provided for as the Servicing Fee and as reimbursement for Nonrecoverable Advances, Servicing Advances and reimbursement for Advances,
all as specified by Section 5.09. The amount of compensation or reimbursement provided for shall
be accounted for on a Mortgage Loan-by-Mortgage Loan basis.

     Additional servicing compensation in the form of assumption fees, prepayment fees and late
payment charges shall be retained by the Servicer, to the extent permitted by applicable law. The
Servicer shall be required to pay all expenses incurred by it in connection with its servicing
activities hereunder (including the fees, expenses and indemnities of the Trustee and any
Sub-Servicer) and shall not be entitled to reimbursement therefor except as specifically provided
in Sections 5.09 and 5.21.

     Section 5.24 1934 Act Reports.

     (a) As set forth on Schedule X hereto, for so long as the Trust is subject to the Exchange Act
reporting requirements, no later than the end of business on the 2nd Business Day after the
occurrence of an event requiring disclosure on Form 8-K (a “reportable event”) (i) the Depositor,
the Seller, the Trustee and the Paying Agent shall notify the Servicer of any item reportable on a
Form 8-K of which each such party has knowledge (unless such item is specific to the Servicer, in
which case the Servicer will be deemed to have notice) and (ii) shall deliver to the Servicer at
least two Business Days prior to the filing deadline for such Form 8-K, all information, data, and
exhibits (unless such information, data, and exhibits are specific to the Servicer) required to be
provided or filed with such Form 8-K. After preparing the Form 8-K on behalf of the Depositor, the
Servicer shall execute and promptly file such Form 8-K.

85

 

     (b) For so long as the Trust is subject to the Exchange Act, within 15 days after each
Distribution Date, the Servicer shall, on behalf of the Trust and in accordance with industry
standards, file with the Commission via the Electronic Data Gathering and Retrieval System (EDGAR),
a Form 10-D with (1) a copy of the report to the Certificateholders for such Distribution Date as
an exhibit thereto and (2) any other information known to the Servicer or provided to the Servicer
to be included at its discretion in Form 10-D (“Additional Form 10-D Disclosure”) as set forth in
the next paragraph.

     (c) For so long as the Trust is subject to the Exchange Act, as set forth in Schedule Y
hereto, within 5 calendar days after the related Distribution Date (i) the parties hereto, as
applicable, will be required to provide to the Servicer, to the extent known to such party, any
Additional Form 10-D Disclosure (including any breaches of pool asset representations and
warranties or transaction covenants of which the party has written notice and which has not been
included on the monthly distribution report for the period), if applicable, and (ii) the Servicer,
to the extent it deems necessary, shall incorporate such Additional Form 10-D Disclosure into the
Form 10-D and shall file such Form 10-D by the 8th calendar day after the Distribution
Date.

     (d) For so long as the Trust is subject to the Exchange Act, prior to the 90th calendar day
after the end of the fiscal year for the trust, the Servicer shall, on behalf of the Trust and in
accordance with industry standards, prepare and file with the Commission via EDGAR a Form 10-K with
respect to the Trust Fund. Such Form 10-K shall include the following items: (i) an annual
compliance statement for the Servicer and each Subservicer, as described in Section 5.25 of the
Agreement, (ii)(A) the annual reports on assessment of compliance with servicing criteria for the
Paying Agent, each Servicer, Subservicer and Subcontractor (unless the Servicer has determined that
such compliance statement is not required by Regulation AB), as described in Section 5.25 of the
Agreement, and (B) if any reporting Servicer’s report on assessment of compliance with servicing
criteria described in Section 5.25 identifies any material instance of noncompliance, disclosure
identifying such instance of noncompliance, or if any report on assessment of compliance with
servicing criteria described in Section 5.25 of the Agreement is not included as an exhibit to such
Form 10-K, disclosure that such report is not included and an explanation why such report is not
included, (iii)(A) the registered public accounting firm attestation
report for the Paying Agent, the Servicer and each Subservicer, as described in Section 5.26
of the Agreement, and (B) if any registered public accounting firm attestation report described in
the Section 5.26 of the Agreement identifies any material instance of noncompliance, disclosure
identifying such instance of noncompliance, or if any such registered public accounting firm
attestation report is not included as an exhibit to such Form 10-K, disclosure that such report is
not included and an explanation why such report is not included, and (iv) a Sarbanes-Oxley
Certification in the form attached hereto as Exhibit S, executed by the senior officer in charge of
securitizations of the Servicer. Any disclosure or information in addition to (i) through (iv)
above that is required to be included on Form 10-K (“Additional Form 10-K Disclosure”) shall be
determined and prepared by and at the direction of the Servicer pursuant to the following
paragraph.

     (e) As set forth in Schedule Z hereto, no later than March 12 of each year that the Trust is
subject to the Exchange Act reporting requirements (other than the calendar year during which the
Closing Date occurs), (i) the parties identified on Schedule Z shall be required to provide to the
Depositor and the Servicer, to the extent known, any Additional Form 10-K Disclosure, if
applicable, and (ii) the Servicer, to the extent it deems necessary, shall incorporate such
Additional Form 10-K Disclosure into the Form 10-K and shall file such Form 10-K by the
85th calendar day after the end of the fiscal year for the Trust.

     (f) Each Form 10-K shall include a certification (the “Sarbanes-Oxley Certification”) which
shall be in the form attached hereto as Exhibit S. The Depositor will cause its senior officer in
charge of securitization to execute the Sarbanes-Oxley Certification required pursuant to Rule
13a-14 under the

86

 

Securities Exchange Act of 1934, as amended, by March 15 of each year in which the
Trust is subject to the reporting requirements of the Exchange Act. In connection therewith, the
Paying Agent shall sign a certification (in the form attached hereto as Exhibit O) for the benefit
of the Servicer and its officers, directors and affiliates regarding certain aspects of the Form
10-K Certification.

     (g) Following the first date legally permissible under applicable regulations and
interpretations of the Commission, the Servicer shall, on behalf of the Trust and in accordance
with industry standards, file with the Commission via EDGAR a Form 15 Suspension Notification with
respect to the Trust Fund, if applicable.

     (h) The Servicer shall have no responsibility to file any items with the Commission other than
those specified in this section and the Servicer shall execute any and all form 8-Ks and 10-Ds
required hereunder. The Depositor shall execute each form 10-K.

     (i) If the Commission issues additional interpretative guidance or promulgates additional
rules or regulations with respect to Regulation AB or otherwise, or if other changes in applicable
law occur, that would require the reporting arrangements, or the allocation of responsibilities
with respect thereto, described in this Section 5.24, to be conducted differently than as
described, the Depositor, the Servicer, the Paying Agent and the Trustee shall comply with
reasonable requests made by CHF, the Servicer or the Depositor to amend the provisions of this
Section 5.24 in order to comply with such amended reporting requirements and to deliver additional
or different information as CHF or the Depositor may determine in good faith is necessary to comply
with the provisions of Regulation AB, provided that such information is available to such party
without unreasonable effort or expense or is reimbursed by the requesting party and within such
timeframe as may be reasonably requested. Any such supplementation or modification shall be made
without the consent of the Certificateholders, and may result in a change in the reports filed by
the Servicer on behalf of the Trust under the Exchange Act.

     (j) The Depositor, the Servicer, the Trustee and the Paying Agent agree to use their good
faith efforts to cooperate in complying with the requirements of this Sections 5.24.

     Section 5.25 Annual Statement as to Compliance. Not later than (a) March 15 of each
calendar year (other than the calendar year during which the Closing Date occurs) or (b) with
respect to any calendar year during which an annual report on Form 10-K is not required to be filed
pursuant to Section 5.24 on behalf of the Trust, by April 15 of each calendar year (or if such day
is not a Business Day, the immediately succeeding Business Day), the Servicer shall deliver to the
Depositor, an Officers’ Certificate in the form attached hereto as Exhibit T stating, as to each
signatory thereof, that (i) a review of the activities of the Servicer during the preceding
calendar year and of the performance of the Servicer under this Agreement has been made under such
officer’s supervision, and (ii) to the best of such officer’s knowledge, based on such review, the
Servicer has fulfilled all its obligations under this Agreement in all material respects throughout
such year or a portion thereof, or, if there has been a failure to fulfill any such obligation in
any material respect, specifying each such failure known to such officer and the nature and status
thereof. With respect to any Subservicer that meets the criteria of Item 1108(a)(2)(i) through
(iii) of Regulation AB in the sole determination of the Servicer, the Servicer shall request from
such Subservicer, the Officer’s Certificate set forth in this Section 5.25 as and when required
with respect to such Subservicer.

     Section 5.26 Assessment of Compliance and Independent Public Accountants’ Attestation;
Financial Statements.

          (a) Not later than (i) March 15 of each calendar year (other than the calendar year during
which the Closing Date occurs) or (ii) with respect to any calendar year during which an annual

87

 

report on Form 10-K is not required to be filed pursuant to Section 5.24 on behalf of the Trust, by
April 15 of each calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer, at its own expense, shall deliver to the Trustee and the Depositor an
officer’s assessment of its compliance with the Servicing Criteria during the preceding calendar
year as required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB (the
“Assessment of Compliance”), which addresses the items set forth in Exhibit R hereto.

          (b) Not later than (i) March 15 of each calendar year (other than the calendar year during
which the Closing Date occurs) or (ii) with respect to any calendar year during which an annual
report on Form 10-K is not required to be filed pursuant to Section 5.24 on behalf of the Trust,
April 15 of each calendar year (or if such day is not a Business Day, the immediately succeeding
Business Day), the Servicer, at its own expense, shall cause a nationally or regionally recognized
firm of independent registered public accountants (who may also render other services to any
Servicer, the Seller or any affiliate thereof) which is a member of the American Institute of
Certified Public Accountants to furnish a statement to the Trustee, the Paying Agent and the
Depositor that attests to and reports on the assessment of compliance provided by such Servicer
pursuant to Section 5.26(a) (the “Accountant’s Attestation”). Such Accountant’s Attestation shall
be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and
the Exchange Act.

          (c) The Servicer shall request that any Subservicer and each Subcontractor (to the extent
determined by the Servicer to be required under Regulation AB) not later than March 15 of each
calendar year (other than the calendar year during which the Closing Date occurs) with respect to
any calendar year during which the Trust’s annual report on Form 10-K is required to be filed in
accordance with the Exchange Act and the rules and regulations of the Commission, provide an
Assessment of Compliance, which addresses the items set forth in Exhibit R hereto. The Servicer
shall request that any Subservicer (other than the calendar year during which the Closing Date
occurs) with respect to any calendar year during which the Trust’s annual report on Form 10-K is
not required to be filed in accordance with the Exchange Act and the rules and regulations of the
Commission, by April 15 of each calendar year (or, in each case, if such day is not a Business Day, the immediately succeeding
Business Day) provide an Assessment of Compliance, which addresses the items set forth in Exhibit R
hereto.

          (d) Not later than March 15 of each calendar year (other than the calendar year during which
the Closing Date occurs) with respect to any calendar year during which the Trust’s annual report
on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, the Servicer shall request that each Subservicer and each
Subcontractor (to the extent determined by the Servicer to be required by Regulation AB) provide an
Accountant’s Attestation by a registered public accounting firm that attests to, and reports on,
the Assessment of Compliance pursuant to Section 5.26(c) above. Other than the calendar year
during which the Closing Date occurs, with respect to any calendar year during which the Trust’s
annual report on Form 10-K is not required to be filed in accordance with the Exchange Act and the
rules and regulations of the Commission, not later than April 15 of each calendar year (or, in each
case, if such day is not a Business Day, the immediately succeeding Business Day), the Servicer
shall request that each Subservicer provide an Accountant’s Attestation by a registered public
accounting firm that attests to, and reports on, the Assessment of Compliance pursuant to Section
5.26(c) above.

          (e) Not later than, with respect to any calendar year during which the Trust’s annual report
on Form 10K is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, March 15 (or, in each case, if such day is not a Business
Day, the immediately preceding Business Day), the Paying Agent shall deliver to the Depositor and
the Servicer an Assessment of Compliance with regard to the Servicing Criteria applicable to the
Paying Agent during the preceding calendar year, which addresses the items set forth in Exhibit R
hereto.

88

 

          (f) Not later than, with respect to any calendar year during which the Trust’s annual report
on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, March 15 (or, in each case, if such day is not a Business Day, the
immediately preceding Business Day), the Paying Agent shall deliver to the Depositor and the
Servicer an Accountant’s Attestation by a registered public accounting firm that attests to, and
reports on, the Assessment of Compliance pursuant to Section 5.26(e) above.

          (g) Not later than, with respect to any calendar year during which the Trust’s annual report
on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, 15 calendar days before the date on which the Trust’s annual report
on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission (or, in each case, if such day is not a Business Day, the immediately
preceding Business Day), the Servicer shall request that each custodian, including the Custodian,
deliver to the Servicer an Assessment of Compliance with regard to the Servicing Criteria
applicable to such custodian during the preceding calendar year, which addresses the items set
forth in Exhibit R hereto; provided, however, that where the Custodian and the Servicer are both
Chase, the provisions of this Section 5.26(g) may be satisfied by the delivery of a single report
containing the Assessment of Compliance of Chase.

          (h) Not later than March 12 (or, in each case, if such day is not a Business Day, the
immediately succeeding Business Day), of any calendar year (other than the calendar year during
which the Closing Date occurs) during which the Trust’s annual report on Form 10-K is required to
be filed in accordance with the Exchange Act and the rules and regulations of the Commission, the
Servicer shall request that each Custodian deliver to the Servicer an Accountant’s Attestation by a
registered public accounting firm that attests to, and reports on, the Assessment of Compliance
pursuant to Section 5.26(g) above; provided, however, that where the Custodian and the Servicer are
both Chase, the provisions of this Section 5.26(h) may be satisfied by the delivery of a single
report containing the Accountant’s Attestation of Chase.

          (i) Each of the parties hereto acknowledges and agrees that the purpose of this Section 5.26
is to facilitate compliance by the Seller, the Servicer and the Depositor with the provisions of
Regulation AB, as such may be amended or clarified from time to time. Therefore, each of the
parties agrees that the parties’ obligations hereunder will be supplemented and modified as
necessary to be consistent with any such amendments, interpretive advice or guidance, convention or
consensus among active participants in the asset-backed securities markets, advice of counsel, or
otherwise in respect of the requirements of Regulation AB and the parties shall comply with
reasonable requests made by the Seller, the Servicer or the Depositor for delivery of additional or
different information as CHF or the Depositor may determine in good faith is necessary to comply
with the provisions of Regulation AB, provided that such information is available to such party
without unreasonable effort or expense or is reimbursed by the requesting party and within such
timeframe as may be reasonably requested. Any such supplementation or modification shall be made
without the consent of the Certificateholders, and may result in a change in the reports filed by
the Servicer on behalf of the Trust under the Exchange Act.

          Section 5.27 Access to Certain Documentation; Rights of the Depositor in Respect of the
Servicer. The Servicer shall provide access to the Trustee and Related Certificateholders
which are savings and loan associations, banks or insurance companies or examiners of any federal
or state banking or insurance regulatory authority to the documentation regarding the related
Mortgage Loans if so required by applicable regulations of any regulatory authority, such access to
be afforded subject to reimbursement for expenses without charge but only upon reasonable request
and during normal business hours at the offices of the Servicer designated by it. The Depositor
may, but is not obligated to, enforce the obligations of the Servicer under this Agreement. The
Depositor shall not assume any responsibility

89

 

or liability for any action or failure to take action
by the Servicer and is not obligated to supervise the performance of the Servicer under this
Agreement or otherwise.

     Section 5.28 REMIC-Related Covenants. For as long as the Trust Fund shall exist, the
Servicer, the Paying Agent and the Trustee shall act in accordance herewith to assure continuing
treatment of each REMIC created hereunder as a REMIC. In particular:

     (a) The Servicer shall not create, or permit the creation of, any “interests” in any REMIC
created hereunder within the meaning of Section 860G(a) of the Code other than the “regular
interests” in each such REMIC designated as such in Section 2.04 and the “residual interest” in
each such REMIC designated as such in Section 2.04;

     (b) As of all times as may be required by the Code, the Servicer will ensure that
substantially all of the assets of each REMIC created hereunder will consist of “qualified
mortgages” as defined in Section 860G(a)(3) of the Code and “permitted investments” as defined in
Section 860G(a)(5) of the Code. The Paying Agent will maintain records that are sufficient to
indicate the compliance of each REMIC created hereunder with applicable requirements of the Code
(and applicable Proposed, Temporary or final Treasury Regulations) relating to the assets held by
such REMIC. Further, the Servicer shall not permit and the Trustee shall not accept the transfer
or substitution of any Mortgage Loan other than pursuant to Section 3.03, 5.01 or 5.21 of this
Agreement, and the Servicer shall, in any case, not permit substitution unless the Servicer and the
Trustee have received an Opinion of Counsel, which will not be an expense of any REMIC created
hereunder, that such transfer or substitution would not adversely affect the REMIC status of any
REMIC created hereunder or would not otherwise be prohibited by this Agreement;

     (c) The Servicer shall ensure that no REMIC created hereunder receives a fee or other
compensation for services and that no REMIC created hereunder receives any income from assets other
than “qualified mortgages” within the meaning of Section 860G(a)(3) of the Code or “permitted
investments” within the meaning of Section 860G(a)(5) of the Code, and shall take whatever action
it deems necessary to avoid any material tax imposed by the Code on any REMIC created hereunder;

     (d) None of the Depositor, the Servicer, the Paying Agent or the Trustee shall sell or permit
the sale of all or any portion of the Mortgage Loans or of any Eligible Investment unless such sale
is as a result of a repurchase of the Mortgage Loans pursuant to this Agreement or the Trustee has
received an Opinion of Counsel, which will not be an expense of any REMIC created hereunder or the
Trustee, to the effect that such sale (i) is pursuant to a “qualified liquidation” as defined in
Section 860F(a)(4) of the Code and as described in Section 11.01 hereof, or (ii) would not be
treated as a “prohibited transaction” within the meaning of Section 860F(a)(2) of the Code that
results in the realization of a material amount of gain or loss for federal income tax purposes;

     (e) The Trustee shall not accept any contribution to any REMIC created hereunder after the
Startup Day without an Opinion of Counsel (which shall not be an expense of the Trustee) that such
contribution is included within the exceptions provided in Section 860G(d)(2) of the Code and,
therefore, will not be subject to the tax imposed by Section 860G(d)(1) of the Code; and

     (f) Notwithstanding anything to the contrary in this Agreement, the Servicer and the Trustee,
at the direction of the Servicer, shall take any other action or refuse to take any action
otherwise required (including adjusting the Purchase Price for any Mortgage Loan) where the
Servicer deems such action or inaction reasonably necessary to ensure the REMIC status of each
REMIC created hereunder under the Code and applicable regulations or to avoid the imposition of any
material tax liability on any REMIC created hereunder that will affect amounts distributable to the
Certificateholders.

90

 

     (g) In the event that any applicable federal, state or local tax, including interest,
penalties or assessments, additional amounts or additions to tax, is imposed on any REMIC created
hereunder, such tax shall be treated in the same manner as a Realized Loss and shall be charged
against amounts otherwise distributable to the Holders of the Certificates, except as provided in
the last sentence of this Section 5.28 (g). The Trustee or, if a Paying Agent has been appointed
under Section 4.05, the Paying Agent shall withdraw from the Collection Account sufficient funds to
pay or provide for the payment of, and to actually pay, such tax as is estimated to be legally owed
by (but such authorization shall not prevent the Trustee or, if a Paying Agent has been appointed
under Section 4.05, the Paying Agent from contesting, at the expense of the Trust Fund (other than
as a consequence of a breach of its obligations under this Agreement), any such tax in appropriate
proceedings, and withholding payment of such tax, if permitted by law, pending the outcome of such
proceedings). The Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying
Agent is hereby authorized to and shall segregate, into a separate non-interest bearing account,
the net income from any “prohibited transaction” under Code Section 860F(a), the amount of any
taxable contribution to any REMIC created hereunder after the Startup Day that is subject to tax
under Code Section 860G(d), and 35% of any estimated “net income from foreclosure property” under
Section 860G(c) and use such income or amount, to the extent necessary, to pay such tax. To the
extent that any such tax is paid to the Internal Revenue Service or applicable state or local tax
authorities, the Trustee or a Paying Agent has been appointed under Section 4.05, the Paying Agent
shall retain an equal amount from future amounts otherwise distributable to the Holder of the Class
A-R Certificate and shall distribute such retained amounts to the Holders of the other Classes of
Certificates, to the extent they remain outstanding, until they are fully reimbursed for any amount
of such taxes previously charged to the then Holder of the Class A-R Certificate. Neither the
Trustee nor the Servicer shall be responsible for any taxes imposed on any REMIC created hereunder
except to the extent such taxes arise as a consequence of a breach of their respective obligations
under this Agreement. The Trustee shall not be liable hereunder for any taxes imposed on any REMIC
hereunder as the result of any direction taken hereunder from the Servicer or any action of the
Servicer or Paying Agent hereunder.

     Section 5.29 Yield Maintenance Agreements; Reserve Fund.

     (a) On the Closing Date, the Paying Agent shall establish an account (the “Reserve Fund”),
which shall be an Eligible Account. The Reserve Fund shall be entitled “Reserve Fund, The Bank of
New York Trust Company, N.A., as Trustee for the benefit of the Holders of the ChaseFlex Trust
2007-M1 Certificates (Pool 2).” On each Distribution Date, the Paying Agent is hereby directed to,
and shall therefore, deposit into the Reserve Fund all amounts received under the Yield Maintenance
Agreements. For federal and state income tax purposes, the Pool 2 Certificateholders will be
deemed to be the owners of the related portion of the Reserve Fund and all amounts deposited into
the Reserve Fund and shall be taxable on any income earned thereon. The Reserve Fund shall not be
an asset of any REMIC. Amounts held in the Reserve Fund shall remain uninvested. The Reserve Fund
will be part of the Trust Fund but not part of any REMIC and any payments to the Pool 2
Certificates of Basis Risk Shortfall Carryover Amounts with respect to the Pool 2 Certificates will
not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section
860G(a)(1).

          (b) The Depositor hereby directs the Paying Agent to execute and deliver on behalf of the
Trust the Yield Maintenance Agreements and authorizes the Paying Agent to perform its obligations
thereunder on behalf of the Trust in accordance with the terms of the Yield Maintenance Agreements.
On or before the Closing Date, the Paying Agent shall enter into the Yield Maintenance Agreements
on behalf of the Trust, with the Yield Maintenance Agreement Counterparty. The Yield Maintenance
Agreements shall be part of the Trust Fund but not part of any REMIC.

91

 

          (c) On each Distribution Date, the Paying Agent shall distribute amounts received under the
Yield Maintenance Agreements on deposit in the Reserve Fund, to the Pool 2 Certificateholders,
sequentially, as follows:

               (i) from amounts received in respect of the Class 2-AV1 Yield Maintenance Agreement, first, to
the Class 2-AV1 Certificates, up to the Pool 2 Basis Risk Shortfall Carryover Amount for the Class
2-AV1 Certificates, and second, to the extent unpaid after clauses (ii) and (iii) below, to the
Class 2-AV2 and Class 2-AV3 Certificates, pro rata, based on the outstanding Pool 2 Basis Risk
Shortfall Carryover Amounts for each such Class following distributions pursuant to clauses (ii)
and (iii) below

               (ii) from amounts received in respect of the Class 2-AV2 Yield Maintenance Agreement, first,
to the Class 2-AV2 Certificates, up to the Pool 2 Basis Risk Shortfall Carryover Amount for the
Class 2-AV2 Certificates, and second, to the extent unpaid after clause (i) above and clause (iii)
below, to the Class 2-AV1 and Class 2-AV3 Certificates, pro rata, based on the outstanding Pool 2
Basis Risk Shortfall Carryover Amounts for each such Class following distributions pursuant to
clause (i) above and clause (iii) below

               (iii) from amounts received in respect of the Class 2-AV3 Yield Maintenance Agreement, first,
to the Class 2-AV3 Certificates, up to the Pool 2 Basis Risk Shortfall Carryover Amount for the
Class 2-AV3 Certificates, and second, to the extent unpaid after distributions pursuant to clauses
(i) and (ii) above, to the Class 2-AV1 and Class 2-AV2 Certificates, pro rata, based on the
outstanding Pool 2 Basis Risk Shortfall Carryover Amounts for each such Class following clauses (i)
and (ii) above;

               (iv) to the Class 2-F4, Class 2-F5, Class 2-F6 and Class 2-F7 Certificates, pro rata, based on
their outstanding Pool 2 Basis Risk Shortfall Carryover Amounts, until the Pool 2 Basis Risk
Shortfall Carryover Amount for each such Class has been reduced to zero;

               (v) to the Pool 2 Certificates, in the order of priority set forth in Section 6.01A(a) any
applicable Pool 2 Unpaid Realized Loss Amounts, prior to giving effect to amounts available to be
paid in respect of Pool 2 Unpaid Realized Loss Amounts as described in Section 6.01A(c); and

               (vi) to the Class 2-CE Certificates, any remaining amounts.

          (d) The Seller, the Depositor and the Certificateholders by acceptance of their Certificates
acknowledge and agree that the Paying Agent shall execute, deliver and perform its obligations
under the Yield Maintenance Agreements and shall do so solely in its capacity as Paying Agent of
the Trust Fund and not in its individual capacity. The Paying Agent is hereby directed to
represent and warrant to the Yield Maintenance Agreement Counterparty under the Yield Maintenance
Agreements that the beneficial owner for United States federal income tax purposes of payments made
under the Yield Maintenance Agreements is a “U.S. person” (as that term is used in section
1.1441-4(a)(3)(ii) of United States Treasury Regulations (the “Regulations”)) for United States
federal income tax purposes. Every provision of this Agreement relating to the conduct of
affecting the liability of or affording protection to the Paying Agent shall apply to the Paying
Agent’s execution of the Yield Maintenance Agreements and the performance of its duties and
satisfaction of its obligations thereunder.

          (e) [Reserved.]

     (f) If on any Distribution Date the Paying Agent has received any excess amounts from the
Yield Maintenance Agreements, such excess amounts shall be returned to the Yield Maintenance

92

 

Agreement Counterparty via the wiring instructions set forth in the applicable Yield Maintenance
Agreement.

     Section 5.30 The Swap Agreement; Supplemental Interest Trust.

          (a) On the Closing Date, the Depositor shall establish the Supplemental Interest Trust,
pursuant to the provisions of the Agreement and the laws of the State of New York, which shall be
maintained pursuant to the Agreement, as a separate trust, to be known, for convenience, as
“ChaseFlex 2007-M1 Supplemental Interest Trust (Pool 1).” The corpus of the Supplemental Interest
Trust shall be held by the Supplemental Interest Trust Trustee for the benefit of the holders of
the Pool 1 Certificates as a segregated subtrust of the Trust Fund, which shall hold the the Swap
Agreement and the Supplemental Interest Trust Account. Funds deposited within the Supplemental
Interest Trust shall be held separate and apart from, and shall not be commingled with, any other
moneys, including, without limitation, other moneys of the Supplemental Interest Trust Trustee held
pursuant to this Agreement. In no event shall any funds deposited in the Supplemental Interest
Trust be credited to or made available to any other account of the Trust Fund. The records of the
Paying Agent shall at all times reflect that the Supplemental Interest Trust is a subtrust of the
Trust Fund, the assets of which are segregated from other assets of the Trust Fund.

     On the Closing Date, the Supplemental Interest Trust Trustee shall establish an account (the
“Supplemental Interest Trust Account”), which shall be an Eligible Account within the Supplemental
Interest Trust. Any Swap Termination Payments or Net Swap Payments received from the Swap
Counterparty will be deposited into the Supplemental Interest Trust Account. Certain distributions
to the Certificateholders and any Swap Termination Payments or Net Swap Payments owed to the Swap
Counterparty will be paid out of the Supplemental Interest Trust Account. The Supplemental Interest
Trust Trustee is hereby directed by the Depositor to execute the Swap Agreement on behalf of the
Supplemental Interest Trust in the form presented to it by the Depositor and shall have no
responsibility for the contents of such Swap Agreement, including, without limitation, the representations and
warranties contained therein. The Supplemental Interest Trust Trustee shall have all of the rights
and protections of the Trustee hereunder.

     The Supplemental Interest Trust Trustee shall use reasonable efforts to enforce all of the
rights of the Supplemental Interest Trust and exercise any remedies under the Swap Agreement and,
in the event the Swap Agreement is terminated as a result of the designation by either party
thereto of an Early Termination Date (as defined in the Swap Agreement), find a replacement
counterparty to enter into a replacement swap agreement utilizing the amounts of the net Swap
Termination Payments received.

     For each Distribution Date, through and including the Distribution Date in November 2016, the
Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust Trustee shall,
based on the “significance estimate” (as defined in Regulation AB and which shall be provided to
the Supplemental Interest Trust Trustee on behalf of the Supplemental Interest Trust by the
Depositor within five (5) Business Days prior to the Distribution Date), calculate the
“significance percentage” (as defined in Regulation AB) of the Swap Agreement and the Yield
Maintenance Agreement. If on any such Distribution Date, the Significance Percentage relating to
either of the Swap Agreement or the Yield Maintenance Agreement is equal to or greater than 9%, the
Supplemental Interest Trust Trustee shall promptly notify the Depositor and the Depositor, on
behalf of the Supplemental Interest Trust Trustee, shall obtain the financial information required
to be delivered by the Swap Counterparty or the Yield Maintenance Agreement Counterparty, as
applicable, pursuant to the terms of the Swap Agreement or Yield Maintenance Agreement, as
applicable. If, on any succeeding Distribution Date through and including the Distribution Date in
November 2016, the “significance percentage” relating to the Swap Agreement or the Yield
Maintenance Agreement is equal to or greater than 10%, the Supplemental Interest Trust Trustee
shall promptly notify the Depositor and the Depositor shall, within five (5)

93

 

Business Days of such
Distribution Date, deliver to the Paying Agent the financial information provided to it by the Swap
Counterparty or Yield Maintenance Agreement Counterparty, as applicable, in Edgar-compatible format
for inclusion in the Form 10-D relating to such Distribution Date.

     Any Swap Termination Payment received by the Supplemental Interest Trust Trustee from the Swap
Counterparty shall be deposited in the Supplemental Interest Trust and shall be used to make any
upfront payment required under a replacement swap agreement and any upfront payment received from
the counterparty to a replacement swap agreement shall be used to pay any Swap Termination Payment
owed to the Swap Counterparty.

     Notwithstanding anything contained herein, in the event that a replacement swap agreement
cannot be obtained within thirty (30) days after receipt by the Supplemental Interest Trust Trustee
of the Swap Termination Payment paid by the terminated Swap Counterparty, the Supplemental Interest
Trust Trustee shall deposit such Swap Termination Payment into a separate, segregated non-interest
bearing subtrust established by the Supplemental Interest Trust Trustee and the Supplemental
Interest Trust Trustee shall, on each Distribution Date following receipt of such Swap Termination
Payment, withdraw from such subtrust, an amount equal to the Net Swap Payment, if any, that would
have been paid to the Supplemental Interest Trust by the original Swap Counterparty (computed in
accordance with the original Swap Agreement) and distribute such amount in accordance with Section
5.30 of this Agreement. Any such subtrust shall not be an asset of any REMIC.

     On any Distribution Date (or in the case of any Net Swap Payments, on the related Swap Payment
Date), any Swap Termination Payments or Net Swap Payments owed to the Swap Counterparty will be
paid out of and any Net Swap Payments or Swap Termination Payments received from the Swap
Counterparty will be deposited into the Supplemental Interest Trust Account. Neither the
Supplemental Interest Trust nor the Supplemental Interest Trust Account will be an asset of any
REMIC. After giving effect to any distributions pursuant to Section 6.01(c), funds on deposit in
the Supplemental Interest Trust Account shall be distributed in the following order of priority by
the Supplemental Interest Trust Trustee:

     (i) To cover any unpaid Net Swap Payments and any unpaid Swap Termination Payments (other than
a Defaulted Swap Termination Payment) owed to the Swap Counterparty;

     (ii) To the Class 1-A Certificates, the related Pool 1 Basis Risk Shortfall Carryover Amount
for each such Class for such Distribution Date, on a pro rata basis based on the entitlement of
each such Class pursuant to this clause (ii);

     (iii) Sequentially, to the Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5, Class
1-M6, Class 1-B1 and Class 1-B2 Certificates, in that order, any remaining Pool 1 Basis Risk
Shortfall Carryover Amounts;

     (iv) Up to a total amount necessary to restore the applicable Pool 1 Overcollateralization
Target Amount, first, to the Class 1-A Certificates, in accordance with the priority described
under Section 6.01(b) and, second, to the Class 1-M and Class 1-B Certificates, sequentially, in
accordance with the priority described under Section 6.01(b) in an amount necessary to restore the
Pool 1 Overcollateralization Target Amount.

     (v) to the Class 1-A Certificates, pro rata based on amounts due, in an amount equal to the
unpaid Interest Shortfall allocable to each such Class;

     (vi) to the Class 1-A Certificates, pro rata based on amounts due, in an amount equal to the
Pool 1 Unpaid Realized Loss Amount allocable to each such Class;

     (vii) to the Class 1-M1 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (viii) to the Class 1-M1 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

94

 

     (ix) to the Class 1-M2 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (x) to the Class 1-M2 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

     (xi) to the Class 1-M3 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (xii) to the Class 1-M3 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

     (xiii) to the Class 1-M4 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (xiv) to the Class 1-M4 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

     (xv) to the Class 1-M5 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (xvi) to the Class 1-M5 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

     (xvii) to the Class 1-M6 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (xviii) to the Class 1-M6 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

     (xix) to the Class 1-B1 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (xx) to the Class 1-B1 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

     (xxi) to the Class 1-B2 Certificates, in an amount equal to the unpaid Interest Shortfall
allocable to such Class;

     (xxii) to the Class 1-B2 Certificates, in an amount equal to the Pool 1 Unpaid Realized Loss
Amount allocable to such Class;

     (xxiii) to the holders of the Class 1-A Certificates, pro rata, in an amount equal to each
such Class’ previously allocated and not reimbursed share of Net Interest Shortfalls, if any;

     (xxiv) to the Class 1-M1 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of Net Interest Shortfalls, if any;

     (xxv) to the Class 1-M2 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of Net Interest Shortfalls, if any;

     (xxvi) to the Class 1-M3 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of Net Interest Shortfalls, if any;

     (xxvii) to the Class 1-M4 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of Net Interest Shortfalls, if any;

     (xxviii) to the Class 1-M5 Certificates, in an amount equal to such Class’ previously
allocated and not reimbursed share of Net Interest Shortfalls, if any;

     (xxix) to the Class 1-M6 Certificates, in an amount equal to such Class’ previously allocated

95

 

and not reimbursed share of Net Interest Shortfalls, if any;

     (xxx) to the Class 1-B1 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of Net Interest Shortfalls, if any;

     (xxxi) to the Class 1-B2 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of Net Interest Shortfalls, if any; and

     (xxxii) to the Class 1-CE Certificates any remaining amounts.

     Notwithstanding the foregoing, however, the sum of all cumulative amounts distributed
pursuant to clauses (iv), (vi), (viii), (x), (xii), (xiv), (xvi), (xviii), (xx) and (xxii) above
will not exceed the cumulative amount of all Realized Losses incurred related to Mortgage Pool 1.

     Upon termination of the Trust Fund, any amounts remaining in the Supplemental Interest
Trust shall be distributed pursuant to the priorities set forth in this Section 5.30(a).

     With respect to the failure of the Swap Counterparty to perform any of its obligations under
the Swap Agreement, the breach by the Swap Counterparty of any of its representations and
warranties made pursuant to the Swap Agreement, or the termination of the Swap Agreement, the
Supplemental Interest Trust Trustee shall send any notices and make any demands required hereunder
(to the extent that a Responsible Officer of the Supplemental Interest Trust Trustee has actual
knowledge or written notice of any such failure, breach or termination).

     On the Closing Date, the Swap Counterparty and the Supplemental Interest Trust Trustee (which
is hereby authorized and directed to enter into such credit support annex) will enter into a credit
support annex in relation to the Swap Agreement, which annex is intended to protect the
Supplemental Interest Trust from certain ratings downgrades that might hinder the ability of the
Swap Counterparty to continue its obligations under the Swap Agreement.

     Pursuant to and in accordance with the terms and provisions of the Swap Agreement, the Swap
Counterparty may be required to post additional collateral in connection with its obligations under
the Swap Agreement. In connection with the foregoing, on the Closing Date, the Supplemental
Interest Trust Trustee shall establish and maintain a Swap Posted Collateral Account.

     To the extent that the Swap Counterparty remits any Posted Collateral to the Supplemental
Interest Trust Trustee under the Swap Agreement, the Supplemental Interest Trust Trustee shall,
upon receipt of the Posted Collateral, deposit the Posted Collateral into the Swap Posted
Collateral Account and shall hold, release and disburse such collateral in accordance with the
terms and provisions of the Swap Agreement. Where a termination event occurs with respect to the
Swap Counterparty under the Swap Agreement, or where the Swap Counterparty fulfills certain
obligations to the Supplemental Interest Trust such as finding a replacement swap counterparty or a
guarantor that meets established criteria of the Rating Agencies, the Supplemental Interest Trust
Trustee shall make payments from the Swap Posted Collateral Account in accordance with the
provisions of the Swap Agreement. Amounts held in the Swap Posted Collateral Account will not be
part of the Trust Fund and will not be available for distribution to any Certificateholders, except
to the extent distributed to the Supplemental Interest Trust pursuant to the Swap Agreement. Any
funds held in the Swap Posted Collateral Account shall be invested by the Supplemental Interest
Trust Trustee in Permitted Investments in accordance with the written instructions of the Swap
Counterparty. Absent receipt by the Supplemental Interest Trust Trustee of written instructions
from the Swap Counterparty, such funds shall remain uninvested. Any earnings shall be remitted to
the Swap Counterparty in accordance with the Swap Agreement.

[END OF ARTICLE V]

96

 

ARTICLE VI

PAYMENTS TO THE CERTIFICATEHOLDERS

     Section 6.01 Distributions to Pool 1 Certificateholders.

(a) On each Distribution Date, the Paying Agent shall make the following disbursements and
transfers in the following order of priority in each case, to the extent of the Interest Remittance
Amount remaining for such Distribution Date:

(i) for deposit into the Supplemental Interest Trust Account, to cover any Net Swap Payments
and any Swap Termination Payments (other than any Defaulted Swap Termination Payment) owed
to the Swap Counterparty;

(ii) to each Class of Class 1-A Certificates, the related Interest Distribution Amount, on a
pro rata basis based on the entitlement of such Class pursuant to this clause (ii);

(iii) to each Class of Class 1-A Certificates, the related unpaid Interest Shortfall, if
any, for each such Class for such Distribution Date on a pro rata basis based on the
entitlement of such Class pursuant to this clause (iii);

(iv) to the Class 1-M1 Certificates, the related Interest Distribution Amount for such Class
of Certificates;

(v) to the Class 1-M2 Certificates, the related Interest Distribution Amount for such Class
of Certificates;

(vi) to the Class 1-M3 Certificates, the related Interest Distribution Amount for such Class
of Certificates;

(vii) to the Class 1-M4 Certificates, the related Interest Distribution Amount for such
Class of Certificates;

(viii) to the Class 1-M5 Certificates, the related Interest Distribution Amount for such
Class of Certificates;

(ix) to the Class 1-M6 Certificates, the related Interest Distribution Amount for such Class
of Certificates;

(x) to the Class 1-B1 Certificates, the related Interest Distribution Amount for such Class
of Certificates; and

(xi) to the Class 1-B2 Certificates, the related Interest Distribution Amount for such Class
of Certificates.

Any Interest Remittance Amount remaining undistributed after giving effect to subclause (i) through
(xi) above shall be used in determining the amount of Pool 1 Net Monthly Excess Cashflow, if any,
for such Distribution Date.

(b) On each Distribution Date, the Paying Agent shall make the following disbursements and
transfers in the following order of priority in each case, to the extent of the Pool 1 Principal
Distribution Amount:

(i) On each Distribution Date (a) prior to the Pool 1 Step-Down Date or (b) on which a Pool
1 Trigger Event is in effect, the Paying Agent will withdraw from the Certificate Account
that portion of the Pool 1 Available Distribution Amount equal to the Pool 1 Principal
Distribution Amount for such Distribution Date, and make the following disbursements and
transfers in the order of priority described below, in each case to the extent of the Pool 1
Principal Distribution Amount remaining for such Distribution Date:

97

 

(1) For deposit into the Supplemental Interest Trust Account, to cover any Net Swap Payments
and any Swap Termination Payments (other than any Defaulted Swap Termination Payment) owed
by the Supplemental Interest Trust to the Swap Counterparty, in each case, to the extent not
paid pursuant to Section 6.01(a)(i);

(2) To the Class 1-A Certificates, concurrently:

     (I) 89.9998413968%, sequentially, to the Class 1-A1, Class 1-A2 and Class 1-A3
Certificates, in that order, until the Outstanding Certificate Principal Balance of each
such Class has been reduced to zero;

     (II) 10.0001586032%, to the Class 1-A4 Certificates until the Outstanding Certificate
Principal Balance of such Class has been reduced to zero;

(3) to the Class 1-M1 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(4) to the Class 1-M2 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(5) to the Class 1-M3 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(6) to the Class 1-M4 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(7) to the Class 1-M5 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(8) to the Class 1-M6 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(9) to the Class 1-B1 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero; and

(10) to the Class 1-B2 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero.

(ii) On each Distribution Date (a) on or after the Pool 1 Step-Down Date and (b) on
which a Pool 1 Trigger Event is not in effect, the Paying Agent will withdraw from the
Certificate Account that portion of the Pool 1 Available Distribution Amount equal to the
Pool 1 Principal Distribution Amount for such Distribution Date, and make the following
disbursements and transfers in the order of priority described below:

(1) For deposit into the Supplemental Interest Trust Account, to cover any Net Swap Payments
and any Swap Termination Payments (other than any Defaulted Swap Termination Payment) owed
by the Supplemental Interest Trust to the Swap Counterparty , in each case, to the extent
not paid pursuant to Section 6.01(a)(i);

(2) To the Class 1-A Certificates, the Pool 1 Senior Principal Distribution Amount for such
Distribution Date, concurrently:

     (I) 89.9998413968%, sequentially, to the Class 1-A1, Class 1-A2 and Class 1-A3
Certificates, in that order, until the Outstanding Certificate Principal Balance of each
such Class has been reduced to zero;

     (II) 10.0001586032%, to the Class 1-A4 Certificates until the Outstanding Certificate
Principal Balance of such Class has been reduced to zero;

(3) to the Class 1-M1 Certificates, the related Pool 1 Subordinated Principal Distribution

98

 

Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(4) to the Class 1-M2 Certificates, the related Pool 1 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(5) to the Class 1-M3 Certificates, the related Pool 1 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(6) to the Class 1-M4 Certificates, the related Pool 1 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(7) to the Class 1-M5 Certificates, the related Pool 1 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(8) to the Class 1-M6 Certificates, the related Pool 1 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(9) to the Class 1-B1 Certificates, the related Pool 1 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero; and

(10) to the Class 1-B2 Certificates, the Class related Pool 1 Subordinated Principal
Distribution Amount for such Distribution Date, until the Outstanding Certificate Principal
Balance of such Class has been reduced to zero.

Any Pool 1 Principal Distribution Amount remaining undistributed after giving effect to clauses (i)
(1)-(10) and (ii) (1)-(10) above shall be used in determining the amount of Pool 1 Net Monthly
Excess Cashflow, if any, for such Distribution Date.

Notwithstanding the foregoing, on any Distribution Date after the aggregate Outstanding Certificate
Principal Balance of the Class 1-M, Class 1-B and Class 1-CE Certificates has been reduced to zero,
the Pool 1 Principal Distribution Amount shall be distributed among the Classes of Class 1-A
Certificates, pro rata, based upon their Outstanding Certificate Principal Balances, until the
Outstanding Certificate Principal Balance of each such Class has been reduced.

(c) On each Distribution Date, the Pool 1 Net Monthly Excess Cashflow shall be distributed as
follows:

(1) For deposit into the Supplemental Interest Trust Account, to cover any Net Swap Payments
and any Swap Termination Payments (other than any Defaulted Swap Termination Payment) owed
by the Supplemental Interest Trust to the Swap Counterparty , in each case, to the extent
not paid pursuant to Section 6.01(a) or 6.01(b);

(2) to the Class or Classes of Pool 1 Certificates then entitled to receive distributions in
respect of principal, in an amount equal to any Pool 1 Overcollateralization Increase
Amount, payable to such Holders under clause (b) above as part of the Pool 1 Principal
Distribution Amount, and applied in the same order of priority as payments of principal
would otherwise be applied on such Distribution Date to reduce the Outstanding Certificate
Principal Balance of such Certificates until the aggregate Outstanding Certificate Principal
Balance of such Classes of Certificates is reduced to zero;

99

 

(3) to the Class 1-A Certificates, pro rata based on amounts due, in an amount equal to any
unpaid Interest Shortfall allocable to each such Class of Certificates;

(4) to the Class 1-A Certificates, pro rata based on amounts due, in an amount equal to the
Pool 1 Unpaid Realized Loss Amount allocable to each such Class of Certificates;

(5) to the Class 1-M1 Certificates, any unpaid Interest Shortfall allocable to such Class of
Certificates;

(6) to the Class 1-M1 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(7) to the Class 1-M2 Certificates, any unpaid Interest Shortfall allocable to such Class of
Certificates;

(8) to the Class 1-M2 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to such
Class of Certificates;

(9) to the Class 1-M3 Certificates, any unpaid Interest Shortfall allocable to such Class of
Certificates;

(10) to the Class 1-M3 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(11) to the Class 1-M4 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(12) to the Class 1-M4 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(13) to the Class 1-M5 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(14) to the Class 1-M5 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(15) to the Class 1-M6 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(16) to the Class 1-M6 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(17) to the Class 1-B1 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(18) to the Class 1-B1 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(19) to the Class 1-B2 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(20) to the Class 1-B2 Certificates, any Pool 1 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(21) concurrently, to each Class of Class 1-A Certificates, pro rata, in an amount equal to
each such Class’ previously allocated and not reimbursed share of any Net Interest
Shortfalls allocated to each such Class of Certificates, if any;

(22) to the Class 1-M1 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

100

 

(23) to the Class 1-M2 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(24) to the Class 1-M3 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(25) to the Class 1-M4 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(26) to the Class 1-M5 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(27) to the Class 1-M6 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(28) to the Class 1-B1 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(29) to the Class 1-B2 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(30) to the Class 1-A Certificates, an amount equal to any Pool 1 Basis Risk Shortfall
Carryover Amounts for such Certificates for such Distribution Date pro rata based upon the
outstanding Pool 1 Basis Risk Shortfall Carryover Amounts for each such Class (after giving
effect to any amounts paid from amounts on deposit in the Supplemental Interest Trust
Account for such Distribution Date pursuant to Section 5.30);

(31) to the Class 1-M and Class 1-B Certificates, an amount equal to any Pool 1 Basis Risk
Shortfall Carryover Amounts for such Certificates for such Distribution date (after giving
effect to any amounts paid from amounts on deposit in the Supplemental Interest Trust
Account for such Distribution Date pursuant to Section 5.30), in the order of priority
described in Section 6.01(b);

(32) to the Paying Agent, the Custodian or the Trustee in respect of any unreimbursed
expenses and indemnifications owing thereto permitted pursuant to this Agreement;

(33) to the Supplemental Interest Trust, for payment to the Swap Counterparty, any unpaid
Swap Termination Payment (including any Defaulted Swap Termination Payments) payable to the
Swap Counterparty;

(34) to the Class 1-CE Certificates in the following order of priority, (A) the Class 1-CE
Interest Distribution Amount, (B) any unpaid Class 1-CE Interest Shortfall, (C) as principal
on the Class 1-CE Certificate until the Outstanding Certificate Principal Balance of the
Class 1-CE Certificates has been reduced to zero and (D) any Pool 1 Unpaid Realized Loss
Amount allocable to the Class 1-CE Certificates; and

(35) to the Class A-R Certificates, any remaining amounts.

(d) Amounts distributed to the Class A-R Certificates pursuant to Section 6.01(c)(35) on any
Distribution Date shall be allocated among the related REMIC residual interests represented thereby
such that each such interest is allocated the excess of funds available to the related REMIC over
required distributions to the regular interests in such REMIC on such Distribution Date.

(e) The Paying Agent shall establish an account (the “Class A-R Reserve Fund”), which shall be an
Eligible Account. The Class A-R Reserve Fund shall be entitled “Class A-R Reserve Fund, The Bank
of New York Trust Company, N.A., as Trustee for the benefit of the holders of the ChaseFlex Trust
Series 2007-M1 Class A-R Certificates.” J.P. Morgan Securities Inc. will deposit $100 into the
Class A-R Reserve Fund. On the first Distribution Date, the Paying Agent shall distribute the
amount on deposit in

101

 

the Class A-R Reserve Fund to the Class A-R Certificates, until the
Outstanding Certificate Principal Balance of such Class has been reduced to zero.

Section 6.01A Distributions to Pool 2 Certificateholders.

(a) On each Distribution Date, the Paying Agent shall make the following disbursements and
transfers in the following order of priority in each case, to the extent of the Interest Remittance
Amount remaining for such Distribution Date:

(i) to each Class of Class 2-A Certificates, the related Interest Distribution Amount, on a
pro
rata basis based on the entitlement of such Class pursuant to this clause (i);

(ii) to each Class of Class 2-A Certificates, the related unpaid Interest Shortfall, if any,
for each such Class for such Distribution Date on a pro rata basis based on the entitlement
of such Class pursuant to this clause (ii);

(iii) to the Class 2-M1 Certificates, the related Interest Distribution Amount for such
Class of Certificates;

(iv) to the Class 2-M2 Certificates, the related Interest Distribution Amount for such Class
of Certificates;

(v) to the Class 2-M3 Certificates, the related Interest Distribution Amount for such Class
of Certificates;

(vi) to the Class 2-M4 Certificates, the related Interest Distribution Amount for such Class
of Certificates;

(vii) to the Class 2-M5 Certificates, the related Interest Distribution Amount for such
Class of Certificates;

(viii) to the Class 2-M6 Certificates, the related Interest Distribution Amount for such
Class of Certificates;

(ix) to the Class 2-B1 Certificates, the related Interest Distribution Amount for such Class
of Certificates; and

(x) to the Class 2-B2 Certificates, the related Interest Distribution Amount for such Class
of Certificates.

Any Interest Remittance Amount remaining undistributed after giving effect to subclause (i) through
(x) above shall be used in determining the amount of Pool 2 Net Monthly Excess Cashflow, if any,
for such Distribution Date.

(b) On each Distribution Date, the Paying Agent shall make the following disbursements and
transfers in the following order of priority in each case, to the extent of the Pool 2 Principal
Distribution Amount:

(i) On each Distribution Date (a) prior to the Pool 2 Step-Down Date or (b) on which a Pool
2 Trigger Event is in effect, the Paying Agent will withdraw from the Certificate Account
that portion of the Pool 2 Available Distribution Amount equal to the Pool 2 Principal
Distribution Amount for such Distribution Date, and make the following disbursements and
transfers in the order of priority described below, in each case to the extent of the Pool 2
Principal Distribution Amount remaining for such Distribution Date:

(1) To the Class 2-A Certificates, sequentially, as follows:

     (I) first, to the Class 2-F6 and Class 2-F7 Certificates, pro rata, based upon their
Outstanding Certificate Principal Balances, up to the Class 2-F6 and Class 2-F7 Priority
Amount;

     (II) second, sequentially, to the Class 2-AV1, Class 2-AV2, Class 2-AV3, Class 2-F4
and

102

 

Class 2-F5 Certificates, in that order, until the Outstanding Certificate Principal
Balance of each such Class has been reduced to zero;

     (III) third, to the Class 2-F6 and Class 2-F7 Certificates, pro rata, based upon their
Outstanding Certificate Principal Balances, until the Outstanding Certificate Principal
Balance of each such Class has been reduced to zero;

(2) to the Class 2-M1 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(3) to the Class 2-M2 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(4) to the Class 2-M3 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(5) to the Class 2-M4 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(6) to the Class 2-M5 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(7) to the Class 2-M6 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(8) to the Class 2-B1 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero; and

(9) to the Class 2-B2 Certificates, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero.

(ii) On each Distribution Date (a) on or after the Pool 2 Step-Down Date and (b) on
which a Pool 2 Trigger Event is not in effect, the Paying Agent will withdraw from the
Certificate Account that portion of the Pool 2 Available Distribution Amount equal to the
Pool 2 Principal Distribution Amount for such Distribution Date, and make the following
disbursements and transfers in the order of priority described below:

(1) To the Class 2-A Certificates, the Pool 2 Senior Principal Distribution Amount for such
Distribution Date, sequentially, as follows:

     (I) first, to the Class 2-F6 and Class 2-F7 Certificates, pro rata, based upon their
Outstanding Certificate Principal Balances, up to the Class 2-F6 and Class 2-F7 Priority
Amount;

     (II) second, sequentially, to the Class 2-AV1, Class 2-AV2, Class 2-AV3, Class 2-F4
and Class 2-F5 Certificates, in that order, until the Outstanding Certificate Principal
Balance of each such Class has been reduced to zero;

     (III) third, to the Class 2-F6 and Class 2-F7 Certificates, pro rata, based upon their
Outstanding Certificate Principal Balances, until the Outstanding Certificate Principal
Balance of each such Class has been reduced to zero;

(2) to the Class 2-M1 Certificates, the related Pool 2 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(3) to the Class 2-M2 Certificates, the related Pool 2 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(4) to the Class 2-M3 Certificates, the related Pool 2 Subordinated Principal Distribution

103

 

Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(5) to the Class 2-M4 Certificates, the related Pool 2 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(6) to the Class 2-M5 Certificates, the related Pool 2 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such
Class has been reduced to zero;

(7) to the Class 2-M6 Certificates, the related Pool 2 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero;

(8) to the Class 2-B1 Certificates, the related Pool 2 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero; and

(9) to the Class 2-B2 Certificates, the related Pool 2 Subordinated Principal Distribution
Amount for such Distribution Date, until the Outstanding Certificate Principal Balance of
such Class has been reduced to zero.

Any Pool 2 Principal Distribution Amount remaining undistributed after giving effect to clauses (i)
(1)-(9) and (ii) (1)-(9) above shall be used in determining the amount of Pool 2 Net Monthly Excess
Cashflow, if any, for such Distribution Date.

Notwithstanding the foregoing, on any Distribution Date after the aggregate Outstanding Certificate
Principal Balance of the Class 2-M, Class 2-B and Class 2-CE Certificates has been reduced to zero,
the Pool 2 Principal Distribution Amount shall be distributed among the Classes of Class 2-A
Certificates, pro rata, based upon their Outstanding Certificate Principal Balances, until the
Outstanding Certificate Principal Balance of each such Class has been reduced.

(c) On each Distribution Date, the Pool 2 Net Monthly Excess Cashflow shall be distributed as
follows:

(1) to the Class or Classes of Pool 2 Certificates then entitled to receive distributions in
respect of principal, in an amount equal to any Pool 2 Overcollateralization Increase
Amount, payable to such Holders under clause (b) above as part of the Pool 2 Principal
Distribution Amount, and applied in the same order of priority as payments of principal
would otherwise be applied on such Distribution Date to reduce the Outstanding Certificate
Principal Balance of such Certificates until the aggregate Outstanding Certificate Principal
Balance of such Classes of Certificates is reduced to zero;

(2) to the Class 2-A Certificates, pro rata based on amounts due, in an amount equal to each
such Class’ previously allocated and not reimbursed share of any Net Interest Shortfalls
allocated to each such Certificates;

(3) to the Class 2-A Certificates, pro rata based on amounts due, in an amount equal to the
Pool 2 Unpaid Realized Loss Amount allocable to each such Class;

(4) to the Class 2-M1 Certificates, any unpaid Interest Shortfall allocable to such Class of
Certificates;

(5) to the Class 2-M1 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to such
Class of Certificates;

104

 

(6) to the Class 2-M2 Certificates, any unpaid Interest Shortfall allocable to such Class of
Certificates;

(7) to the Class 2-M2 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to such
Class of Certificates;

(8) to the Class 2-M3 Certificates, any unpaid Interest Shortfall allocable to such Class of
Certificates;

(9) to the Class 2-M3 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to such
Class of Certificates;

(10) to the Class 2-M4 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(11) to the Class 2-M4 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(12) to the Class 2-M5 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(13) to the Class 2-M5 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(14) to the Class 2-M6 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(15) to the Class 2-M6 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(16) to the Class 2-B1 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(17) to the Class 2-B1 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(18) to the Class 2-B2 Certificates, any unpaid Interest Shortfall allocable to such Class
of Certificates;

(19) to the Class 2-B2 Certificates, any Pool 2 Unpaid Realized Loss Amount allocable to
such Class of Certificates;

(20) concurrently, to each Class of Class 2-A Certificates, pro rata, in an amount equal to
each such Class’ previously allocated and not reimbursed share of any Net Interest
Shortfalls allocated to each such Class of Certificates, if any;

(21) to the Class 2-M1 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(22) to the Class 2-M2 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(23) to the Class 2-M3 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(24) to the Class 2-M4 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(25) to the Class 2-M5 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

105

 

(26) to the Class 2-M6 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(27) to the Class 2-B1 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(28) to the Class 2-B2 Certificates, in an amount equal to such Class’ previously allocated
and not reimbursed share of any Net Interest Shortfalls allocated to such Certificates;

(29) to the Pool 2 Certificates, in accordance with the priorities set forth in this Section
6.01A(c), an amount equal to any Pool 2 Basis Risk Shortfall Carryover Amounts for such
Certificates for such Distribution Date (after giving effect to any amounts paid from
amounts paid under the Yield Maintenance Agreements pursuant to Section 5.29);

(30) to the Paying Agent, the Custodian or the Trustee in respect of any unreimbursed
expenses and indemnifications owing thereto permitted pursuant to this Agreement;

(31) to the Class 2-CE Certificates in the following order of priority, (A) the Class 2-CE
Interest Distribution Amount, (B) any unpaid Class 2-CE Interest Shortfall, (C) as principal
on the Class 2-CE Certificate until the Outstanding Certificate Principal Balance of the
Class 2-CE Certificates has been reduced to zero and (D) any Pool 2 Unpaid Realized Loss
Amount allocable to the Class 2-CE Certificates; and

(32) to the Class A-R Certificates, any remaining amounts.

(d) Amounts distributed to the Class A-R Certificates pursuant to Section 6.01A(c)(32) on any
Distribution Date shall be allocated among the related REMIC residual interests represented thereby
such that each such interest is allocated the excess of funds available to the related REMIC over
required distributions to the regular interests in such REMIC on such Distribution Date.

Section 6.02 Statements to Certificateholders.

     (a) Not later than the earlier of (i) three Business Days after the Determination Date and
(ii) the second Business Day prior to each Distribution Date, the Servicer shall send to the Paying
Agent and the Trustee (in such format as may be mutually agreed) the relevant information for
purposes of this Section 6.02. Not later than each Distribution Date, the Paying Agent shall make
available on its website located at https://sfr.bankofny.com or upon request shall send to any
Certificateholder, the Depositor, the Trustee, the Servicer, any co-trustee, and each Rating Agency
a statement setting forth the following information, after giving effect to the distributions to be
made by the Paying Agent pursuant to Section 6.01 and 6.01A on or as of such Distribution Date:

     (i) with respect to each Class of Certificates the amount of such distribution to
Holders of such Class allocable to principal;

     (ii) with respect to each Class of Certificates the amount of such distribution to
Holders of such Class allocable to interest;

     (iii) for each Mortgage Pool, the aggregate amount of any Principal Prepayments,
Repurchase Proceeds or other unscheduled recoveries included in the distributions to
Certificateholders;

     (iv) for each Mortgage Pool, the aggregate amount of any Advances by the Servicer
pursuant to Section 6.03;

106

 

     (v) the number of Outstanding Mortgage Loans in each of Mortgage Pool 1 and Mortgage
Pool 2, the Mortgage Pool 1 Principal Balance and the Mortgage Pool 2 Principal Balance, as
of the close of business as of the end of the related Principal Prepayment Period;

     (vi) the related amount of the Servicing Fees (as adjusted pursuant to Section 6.05)
retained or withdrawn from the Collection Account by the Servicer;

     (vii) for each Mortgage Pool, the number and aggregate principal amounts of Mortgage
Loans (A) delinquent (calculated using the Mortgage Bankers Association (MBA)
method) (1) one Monthly Payment, (2) two Monthly Payments and (3) three or more Monthly
Payments, (B) in foreclosure and (C) in bankruptcy, in each case, as of the end of the close
of business on the first day of the calendar month of such Distribution Date;

     (viii) for each Mortgage Pool, the number and the principal balance of Mortgage Loans
with respect to any real estate acquired through foreclosure or grant of a deed in lieu of
foreclosure;

     (ix) for each Mortgage Pool, the aggregate amount of all Advances recovered during the
related Due Period;

     (x) with respect to the following Distribution Date, the Outstanding Certificate
Principal Balance of each Class of Certificates;

     (xi) the aggregate amount of Realized Losses during the related Due Period and the
aggregate amount of Realized Losses since the Cut-off Date;

     (xii) the allocation to each Class of Certificates of any Realized Losses during the
related Due Period;

     (xiii) the Outstanding Certificate Principal Balance of each Class of Certificates
immediately prior to and after giving effect to the distributions to each Class on such
Distribution Date;

     (xiv) with respect to each Class of Certificates, any amounts of Net Interest
Shortfalls, Compensating Interest Shortfalls and reductions relating to the Relief Act on
such Distribution Date;

     (xv) for each Mortgage Pool, the number of Mortgage Loans with respect to which a
reduction in the Mortgage Rate has occurred pursuant to the Relief Act, as well as the
amount of interest not required to be paid with respect to any such Mortgage Loans during
the related Due Period as a result of such reductions; both in the aggregate and for each
Class of Certificates;

     (xvi) for each Mortgage Pool, updated pool composition information such as weighted
average coupon, weighted average life, weighted average remaining term, pool factors and
prepayment amounts;

     (xvii) for each Mortgage Pool, if applicable, any material changes to methodology
regarding calculations of delinquencies and charge-offs;

107

 

     (xviii) for each Mortgage Pool, any material modifications, extensions or waivers to
pool asset terms, fees, penalties or payments during the distribution period or that have
cumulatively become material over time;

     (xix) for each Mortgage Pool, material breaches of pool asset representations or
warranties or transaction covenants;

     (xx) for each Mortgage Pool, information on ratio, coverage or other test used for
determining any early amortization, liquidation or other performance trigger and whether the
trigger was met;

     (xxi) excess interest payments for each Class of Certificates;

     (xxii) whether a Pool 1 Trigger Event or Pool 2 Trigger Event has occurred and is in
effect;

     (xxiii) as of each Distribution Date, the amount, if any, paid or received by the
Supplemental Interest Trust pursuant to the Swap Agreement and the amount thereof to be paid
to each Class of Certificates or the Swap Counterparty, as applicable;

     (xxiv) as of each Distribution Date, the Pool 1 Overcollateralized Amount, Pool 2
Overcollateralized Amount, Pool 1 Overcollateralization Target Amount and the
Overcollateralization Target Amount;

     (xxv) as of each Distribution Date, the amount on deposit in the Supplemental Interest
Trust Account;

     (xxvi) as of each Distribution Date, the amount, if any, received pursuant to each
Yield Maintenance Agreement and the amount thereof to be paid to each class of Certificates;

     (xxvii) for each Mortgage Pool, if applicable, information regarding any new issuance
of asset-backed securities backed by the same asset pool, any pool asset changes (other than
in connection with a pool asset converting into cash in accordance with its terms), such as
additions or removals in connection with a prefunding period and pool asset substitutions
and repurchases (and purchase rates, if applicable), and cash flows available for future
purchases, such as the balances of any prefunding or revolving accounts, if applicable; and

     (xxviii) for each Mortgage Pool, if applicable, any material changes in the
solicitation, credit-granting, underwriting, origination, acquisition or pool selection
criteria or procedures, as applicable, used to originate, acquire or select the new pool
assets.

     The Paying Agent’s responsibility for sending the above information to the Certificateholders
is limited to the availability, timeliness and accuracy of the information derived from the
Servicer which shall be provided as required in this Section 6.02(a).

     Upon reasonable advance notice in writing if required by federal regulation, the Servicer will
provide to each Certificateholder which is a savings and loan association, bank or insurance
company certain reports and access during business hours to information and documentation regarding
the Mortgage Loans sufficient to permit such Certificateholder to comply with applicable
regulations of regulatory authorities with respect to investment in the Certificates; provided,
that the Servicer shall be

108

 

entitled to be reimbursed by each such Certificateholder for the
Servicer’s actual expenses incurred in providing such reports and access.

     (b) The Servicer shall cause to be prepared, and the Servicer or the Trustee, as required by
applicable law, shall file, any and all tax returns, information statements or other filings
required to be delivered to Certificateholders and any governmental taxing authority pursuant to
any applicable law with respect to the Trust Fund and the transactions contemplated hereby (the
Servicer or the Trustee may, at its option but with the consent of the other, which consent shall
not be unreasonably withheld, appoint an organization which regularly engages in the preparation
and filing of such documents on a continuous basis for profit and which represents itself to be
expert in such matters) and the Servicer shall maintain a record of the information necessary for
the application of Section 860E(e) of the Code and shall make such information available as
required by Section 860D(a)(6) of the Code; provided, however, that the
Servicer shall notify the Trustee of the Trustee’s obligation to make any such filings and
that any fees of the organization appointed as provided above shall be paid by the Servicer; and
provided further that if an organization is employed, as described above, to prepare and file any
such filings, neither the Trustee nor the Servicer shall be liable for any errors by such
organization.

     Section 6.03 Advances by the Servicer. If, on any Determination Date, the Servicer
determines that any Monthly Payments due on the immediately preceding Due Date have not been
received, the Servicer shall, unless it determines in its sole discretion that such amounts will
not be recoverable from Late Collections, Liquidation Proceeds or otherwise, make an Advance on or
before two Business Days prior to the related Distribution Date in an amount equal to the amount of
such delinquent Monthly Payments, after adjustment of any delinquent interest payment for the
Servicing Fee. For purposes of this Section 6.03, the delinquent Monthly Payments referred to in
the preceding sentence shall be deemed to include an amount equal to the Monthly Payments that
would have been due on Mortgage Loans which have been foreclosed or otherwise terminated and in
connection with which the Servicer acquired and continues to own the Mortgaged Properties on behalf
of the Related Certificateholders. If the Servicer makes an Advance, it shall on or prior to two
Business Days prior to such Distribution Date either (i) deposit in the Collection Account an
amount equal to such Advance, (ii) cause to be made an appropriate entry in the records of the
Collection Account that funds in such account being held for future distribution or withdrawal have
been, as permitted by this Section 6.03, used by the Servicer to make such Advance or (iii) make
Advances in the form of any combination of clauses (i) and (ii) aggregating the amount of such
Advance. Any funds being held in the Collection Account for future distribution to Related
Certificateholders and so used pursuant to clause (ii) or (iii) above shall be replaced by the
Servicer from its own funds by deposit into the Collection Account on or before any subsequent
Distribution Date to the extent that funds in the Collection Account on such Distribution Date
shall be less than the amount of payments required to be made to Related Certificateholders on such
Distribution Date. Any such Advance shall be included with the distribution to the
Certificateholders on the related Distribution Date. If the Servicer determines not to make a
Nonrecoverable Advance, it shall on the related Determination Date furnish to the Trustee, any
co-trustee, the Paying Agent and each Rating Agency notice of such determination. The Servicer
shall be entitled to be reimbursed from the Collection Account for all Advances and Nonrecoverable
Advances as provided in Section 5.09.

     Section 6.04 Allocation of Realized Losses with respect to Mortgage Pool 1.

     (a) Prior to each Determination Date, the Servicer shall determine (i) the total amount of
Realized Losses relating to Mortgage Pool 1, if any, incurred during the related Principal
Prepayment Period.

     (b) Realized Losses relating to Mortgage Pool 1 shall be allocated by the Paying Agent to the
Classes of Pool 1 Certificates as follows:

109

 

     first, to the Class 1-CE Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     second, to the Class 1-B2 Certificates, until the Outstanding Certificate Principal Balance
of such Class is reduced to zero;

     third, to the Class 1-B1 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;
fourth, to the Class 1-M6 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     fifth, to the Class 1-M5 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     sixth, to the Class 1-M4 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     seventh, to the Class 1-M3 Certificates, until the Outstanding Certificate Principal Balance
of such Class is reduced to zero;

     eighth, to the Class 1-M2 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     ninth, to the Class 1-M1 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero; and

     tenth, to the Class 1-A Certificates, pro rata based upon their respective Outstanding
Certificate Principal Balances, until the Outstanding Certificate Principal Balance of each such
Class is reduced to zero; provided, however, that Realized Losses that would otherwise be allocated
to the Class 1-A1 Certificates, Class 1-A2 Certificates and Class 1-A3 Certificates will instead be
allocated to the Class 1-A4 Certificates, until the Outstanding Certificate Principal Balance of
the Class 1-A4 Certificates has been reduced to zero.

     (c) In the event that a Subsequent Recovery is made with respect to any Realized Loss related
to Mortgage Pool 1, the amount of such Subsequent Recovery shall be treated as a Principal
Prepayment and deposited in the Collection Account and distributed on the applicable Distribution
Date.

Section 6.04A Allocation of Realized Losses with respect to Mortgage Pool 2.

     (a) Prior to each Determination Date, the Servicer shall determine (i) the total amount of
Realized Losses relating to Mortgage Pool 2, if any, incurred during the related Principal
Prepayment Period.

     (b) Realized Losses relating to Mortgage Pool 2 shall be allocated by the Paying Agent to the
Classes of Pool 2 Certificates as follows:

     first, to the Class 2-CE Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

110

 

     second, to the Class 2-B2 Certificates, until the Outstanding Certificate Principal Balance
of such Class is reduced to zero;

     third, to the Class 2-B1 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     fourth, to the Class 2-M6 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;
 
     fifth, to the Class 2-M5 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     sixth, to the Class 2-M4 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     seventh, to the Class 2-M3 Certificates, until the Outstanding Certificate Principal Balance
of such Class is reduced to zero;

     eighth, to the Class 2-M2 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero;

     ninth, to the Class 2-M1 Certificates, until the Outstanding Certificate Principal Balance of
such Class is reduced to zero; and

     tenth, to the Class 2-A Certificates, pro rata based upon their respective Outstanding
Certificate Principal Balances, until the Outstanding Certificate Principal Balance of each such
Class is reduced to zero; provided, however, that Realized Losses that would otherwise be allocated
to the Class 2-AV1 Certificates, Class 2-AV2 Certificates, Class 2-AV3 Certificates, Class 2-F4
Certificates, Class 2-F5 Certificates and Class 2-F6 Certificates will instead be allocated to the
Class 2-F7 Certificates, until the Outstanding Certificate Principal Balance of the Class 2-F7
Certificates has been reduced to zero.

     (c) In the event that a Subsequent Recovery is made with respect to any Realized Loss related
to Mortgage Pool 2, the amount of such Subsequent Recovery shall be treated as a Principal
Prepayment and deposited in the Collection Account and distributed on the applicable Distribution
Date.

     Section 6.05 Compensating Interest; Allocation of Certain Interest Shortfalls.

          (a) (i)Upon a Principal Prepayment of a Pool 1 Mortgage Loan, the Servicer shall deposit into
the Collection Account from its own funds, as a reduction of its servicing compensation hereunder,
an amount, if any, by which the amount of the interest that would otherwise accrue with respect to
such Pool 1 Mortgage Loan from the date of prepayment to the Due Date in the related Due Period at
the Net Mortgage Rate exceeds the amount of the interest (adjusted to the Net Mortgage Rate)
collected from the Mortgagor with respect to such period (such amount, “Pool 1 Compensating
Interest”); provided, however, that with respect to any Distribution Date, the Servicer’s
obligation to deposit any such amount is limited to an amount equal to the product of (i)
one-twelfth of 0.125% and (ii) the aggregate Scheduled Principal Balance of the Pool 1 Mortgage
Loans with respect to such Distribution Date.

               (ii) Upon a Principal Prepayment of a Pool 2 Mortgage Loan, the Servicer shall deposit into
the Collection Account from its own funds, as a reduction of its servicing compensation hereunder,
an amount, if any, by which the amount of the interest that would otherwise accrue with

111

 

respect to
such Pool 2 Mortgage Loan from the date of prepayment to the Due Date in the related Due Period at
the Net Mortgage Rate exceeds the amount of the interest (adjusted to the Net Mortgage Rate)
collected from the Mortgagor with respect to such period (such amount, “Pool 2 Compensating
Interest”); provided, however, that with respect to any Distribution Date, the Servicer’s
obligation to deposit any such amount is limited to an amount equal to the product of (i)
one-twelfth of 0.125% and (ii) the aggregate Stated Principal Balance of the Pool 2 Mortgage Loans
with respect to the Due Date in the month immediately preceding the month of such Distribution
Date.

          (b) On any Distribution Date with respect to Mortgage Pool 1, the excess, if any, of (X) Pool
1 Compensating Interest with respect to such Distribution Date over (Y) the amount deposited in
the Collection Account pursuant to (a)(i) above for such Distribution Date shall equal the “Pool 1
Compensating Interest Shortfall” with respect to such Distribution Date. On any Distribution Date,
the Pool 1 Compensating Interest Shortfall shall be allocated pro rata among the outstanding
Classes of Class 1-A, Class 1-M and Class 1-B Certificates based on the amount of interest to which
each such Class would otherwise be paid on such Distribution Date had there been no such Pool I
Compensating Interest Shortfall.

          On any Distribution Date with respect to Mortgage Pool 2, the excess, if any, of (X) Pool 2
Compensating Interest with respect to such Distribution Date over (Y) the amount deposited in
Collection Account pursuant to (a)(ii) above for such Distribution Date shall equal the “Pool 2
Compensating Interest Shortfall” with respect to such Distribution Date. On any Distribution Date,
the Pool 2 Compensating Interest Shortfall shall be allocated pro rata among the outstanding
Classes of Class 2-A, Class 2-M and Class 2-B Certificates based on the amount of interest to which
each such Class would otherwise be paid on such Distribution Date had there been no such Pool 2
Compensating Interest Shortfall.

          (c) On any Distribution Date with respect to Mortgage Pool 1, the interest portion of any
Realized Losses (“Pool 1 Realized Loss Interest Shortfall”) (other than the interest
portion of Pool 1 Excess Losses) shall be allocated to the Class of Pool 1 Subordinated
Certificates then outstanding having the highest numerical Class designation (for this purpose, the
Class 1-M Certificates shall be deemed to have a lower numerical Class designation than each Class
of Class 1-B Certificates) or, if no Class of Pool 1 Subordinated Certificates is then outstanding,
to the Class 1-A Certificates pro rata among the outstanding Classes of Class 1-A Certificates
based on the amount of interest to which each such Class would otherwise be paid on such
Distribution Date had there been no such Pool 1 Realized Loss Interest Shortfall. On any
Distribution Date, the interest portion of any Pool 1 Excess Losses shall be allocated pro rata
among the outstanding Classes of Pool 1 Certificates based upon the amount of interest to which
each such Class would otherwise be paid on such Distribution Date had there been no such Pool 1
Excess Losses allocable to interest.

          On any Distribution Date with respect to Mortgage Pool 2, the interest portion of any Realized
Losses (“Pool 2 Realized Loss Interest Shortfall”) shall be allocated to the Class of Pool
2 Subordinated Certificates then outstanding having the highest numerical Class designation (for
this purpose, the Class 2-M Certificates shall be deemed to have a lower numerical Class
designation than each Class of Class 2-B Certificates) or, if no Class of Pool 2 Subordinated
Certificates is then outstanding, to the Class 2-A Certificates pro rata among the outstanding
Classes of Class 2-A Certificates based on the amount of interest to which each such Class would
otherwise be paid on such Distribution Date had there been no such Pool 2 Realized Loss Interest
Shortfall.

          (d) Any interest shortfall resulting from the Relief Act with respect to the Pool 1 Mortgage
Loans shall be allocated pro rata among the outstanding Classes of Pool 1 Certificates based upon
the amount of interest to which each such Class would otherwise be paid on such Distribution Date.
Any interest shortfall resulting from the Relief Act with respect to the Pool 2 Mortgage Loans
shall be

112

 

allocated pro rata among the outstanding Classes of Pool 2 Certificates based upon the
amount of interest to which each such Class would otherwise be paid on such Distribution Date.

     Section 6.06 Subordination with Respect to the Pool 1 Certificates. The rights of any
Holder of the Class 1-CE Certificates to receive distributions in respect of the Class 1-CE
Certificates on any Distribution Date shall be subordinated to the rights of the Class 1-A, Class
1-M and Class 1-B Certificateholders to receive distributions in respect of the Class 1-A, Class
1-M and Class 1-B Certificates, respectively. The rights of the Class 1-B Certificateholders to
receive distributions in respect
of the Class 1-B Certificates on any Distribution Date shall be subordinated to the rights of
the Class 1-A and Class 1-M Certificateholders to receive distributions in respect of the Class 1-A
and Class 1-M Certificates. The rights of the Class 1-M Certificateholders to receive
distributions in respect of the Class 1-M Certificates on any Distribution Date shall be
subordinated to the rights of the Class 1-A Certificateholders to receive distributions in respect
of the Class 1-A Certificates. The rights of the Class 1-B1 Certificateholders to receive
distributions in respect of the Class 1-B1 Certificates on any Distribution Date shall be
subordinate to the rights of the Class 1-A and Class 1-M Certificateholders to receive
distributions in respect of such Class 1-A and Class 1-M Certificates. Each Class of Class 1-B
Certificates (other than the Class 1-B1 Certificates) is subordinated to the Class 1-A
Certificates, the Class 1-M Certificates and each Class of Class 1-B Certificates having a lower
numerical Class designation than such Class of Class 1-B Certificates. The rights of the Class
1-M1 Certificateholders to receive distributions in respect of the Class 1-M1 Certificates on any
Distribution Date shall be subordinate to the rights of the Class 1-A Certificateholders to receive
distributions in respect of such Class 1-A Certificates. Each Class of Class 1-M Certificates
(other than the Class 1-M1 Certificates) is subordinated to the Class 1-A Certificates and each
Class of Class 1-M Certificates having a lower numerical Class designation than such Class of Class
1-M Certificates. The rights of the Servicer, as servicer, to receive funds from the Collection
Account, pursuant to Section 5.09, on account of the Servicing Fee (except as provided in Section
6.05) in respect of each Pool 1 Mortgage Loan, assumption fees, late payment charges and other
mortgagor charges, reimbursement of Advances and expenses or otherwise, shall not be subordinated
to the rights of the Class 1-A, Class 1-M or Class 1-B Certificateholders. Amounts held by the
Servicer or the Paying Agent for future distribution to the Class 1-M or Class 1-B
Certificateholders, including, without limitation, in the Collection Account, shall not be
distributed in respect of the Class 1-M or Class 1-B Certificates except in accordance with the
terms of this Agreement. The Class 1-B Certificateholders are deemed to have granted a security
interest in such amounts to the Class 1-A and Class 1-M Certificateholders to secure the rights of
the Class 1-A and Class 1-M Certificateholders to receive distributions in priority over the Class
1-B Certificateholders. The Class 1-M Certificateholders are deemed to have granted a security
interest in such amounts to the Class 1-A Certificateholders to secure the rights of the Class 1-A
Certificateholders to receive distributions in priority over the Class 1-A Certificateholders.

     Section 6.06A Subordination with Respect to the Pool 2 Certificates. The rights of
any Holder of the Class 2-CE Certificates to receive distributions in respect of the Class 2-CE
Certificates on any Distribution Date shall be subordinated to the rights of the Class 2-A, Class
2-M and Class 2-B Certificateholders to receive distributions in respect of the Class 2-A, Class
2-M and Class 2-B Certificates, respectively. The rights of the Class 2-B Certificateholders to
receive distributions in respect of the Class 2-B Certificates on any Distribution Date shall be
subordinated to the rights of the Class 2-A and Class 2-M Certificateholders to receive
distributions in respect of the Class 2-A and Class 2-M Certificates. The rights of the Class 2-M
Certificateholders to receive distributions in respect of the Class 2-M Certificates on any
Distribution Date shall be subordinated to the rights of the Class 2-A Certificateholders to
receive distributions in respect of the Class 2-A Certificates. The rights of the Class 2-B1
Certificateholders to receive distributions in respect of the Class 2-B1 Certificates on any
Distribution Date shall be subordinate to the rights of the Class 2-A and Class 2-M
Certificateholders to receive distributions in respect of such Class 2-A and Class 2-M
Certificates. Each Class of Class 2-B

113

 

Certificates (other than the Class 2-B1 Certificates) is
subordinated to the Class 2-A Certificates, the Class 2-M Certificates and each Class of Class 2-B
Certificates having a lower numerical Class designation than such Class of Class 2-B Certificates.
The rights of the Class 2-M1 Certificateholders to receive distributions in respect of the Class
2-M1 Certificates on any Distribution Date shall be subordinate to the rights of the Class 2-A
Certificateholders to receive distributions in respect of such Class 2-A Certificates. Each Class
of Class 2-M Certificates (other than the Class 2-M1 Certificates) is subordinated to the Class 2-A
Certificates and each Class of Class 2-M Certificates having a lower numerical Class designation
than such Class of Class 2-M Certificates. The rights of the Servicer, as
servicer, to receive funds from the Collection Account, pursuant to Section 5.09, on account of the
Servicing Fee (except as provided in Section 6.05) in respect of each Pool 2 Mortgage Loan,
assumption fees, late payment charges and other mortgagor charges, reimbursement of Advances and
expenses or otherwise, shall not be subordinated to the rights of the Class 2-A, Class 2-M or Class
2-B Certificateholders. Amounts held by the Servicer or the Paying Agent for future distribution
to the Class 2-M or Class 2-B Certificateholders, including, without limitation, in the Collection
Account, shall not be distributed in respect of the Class 2-M or Class 2-B Certificates except in
accordance with the terms of this Agreement. The Class 2-B Certificateholders are deemed to have
granted a security interest in such amounts to the Class 2-A and Class 2-M Certificateholders to
secure the rights of the Class 2-A and Class 2-M Certificateholders to receive distributions in
priority over the Class 2-B Certificateholders. The Class 2-M Certificateholders are deemed to
have granted a security interest in such amounts to the Class 2-A Certificateholders to secure the
rights of the Class 2-A Certificateholders to receive distributions in priority over the Class 2-A
Certificateholders.

     Section 6.07 Determination of LIBOR. The meaning of LIBOR applicable to the
calculation of the Certificate Rates on the Certificates for any Accrual Period (other than the
initial Accrual Period) will be determined by the Servicer or its designee on each Rate Adjustment
Date as follows:

          For any Accrual Period other than the first Accrual Period, “LIBOR” means, with respect to a
Distribution Date, the rate determined by the Swap Counterparty to be (i) the per annum rate for
deposits in U.S. dollars for a period of one month which appears on the Reuters Page LIBOR01 as of
11:00 a.m., London time, on the day that is two London Business Days prior to the first day of the
Accrual Period relating to such Distribution Date (rounded upwards, if necessary, to the nearest
1/100,000 of 1%); (ii) if such rate does not appear on the Reuters Page LIBOR01, LIBOR shall be the
arithmetic mean (rounded as aforesaid) of the offered quotations obtained by the Swap Counterparty
from the Reference Banks for deposits in U.S. dollars to leading banks in the London interbank
market as of approximately 11:00 a.m., London time, on the day that is two London Business Days
prior to the first day of the Accrual Period relating to such Distribution Date; or (iii) if fewer
than two Reference Banks provide the Swap Counterparty with such quotations, LIBOR shall be the
rate per annum which the Swap Counterparty determines to be the arithmetic mean (rounded as
aforesaid) of the offered quotations which leading banks in New York City selected by the Swap
Counterparty are quoting in the New York interbank market on the first day of the Accrual Period
relating to such Distribution Date for deposits in U.S. dollars to the Reference Banks or, if fewer
than two such quotations are available, to leading European and Canadian banks.

     The establishment of LIBOR on any Rate Adjustment Date and the Servicer’s subsequent
calculation of the Certificate Rates applicable to the Certificates for the relevant Accrual
Period, in the absence of manifest error, will be final and binding.

[END OF ARTICLE VI]

114

 

ARTICLE VII

REPORTS TO BE PREPARED BY THE SERVICER

     Section 7.01 Servicer Shall Provide Information as Reasonably Required. The Servicer
shall furnish to the Trustee or, if a Paying Agent has been appointed pursuant to Section 4.05, the
Paying Agent, during
the term of this Agreement, such periodic, special, or other reports or information, whether
or not provided for herein, as shall be necessary, reasonable, or appropriate in respect to the
Trustee or, if a Paying Agent has been appointed pursuant to Section 4.05, the Paying Agent, or
otherwise in respect to the purposes of this Agreement, all such reports or information to be as
provided by and in accordance with such applicable instructions and directions as the Trustee or,
if a Paying Agent has been appointed pursuant to Section 4.05, the Paying Agent may reasonably
require.

     Section 7.02 Federal Information Returns and Reports to Certificateholders.

     (a) For federal income tax purposes, the taxable year of each REMIC Pool shall be a calendar
year and the Servicer shall maintain or cause the maintenance of the books of each REMIC Pool on
the accrual method of accounting.

     (b) The Servicer or anyone acting on its behalf pursuant to Section 2.04(h) shall prepare and
file or cause to be filed with the Internal Revenue Service federal tax or information returns with
respect to the Trust Fund, each REMIC Pool and the Certificates containing such information and at
the times and in the manner as may be required by the Code or applicable Treasury regulations, and
shall furnish to each Certificateholder at any time during the calendar year for which such returns
or reports are made such statements or information at the times and in the manner as may be
required thereby. Without limitation on any other requirement of this Section 7.02, the Servicer
shall make available the information necessary for the application of Section 860E(e) of the Code
within 60 days of such request. With respect to the Class A-R Certificate, the Servicer shall
provide such information or cause such information to be provided to (i) the Internal Revenue
Service, (ii) the transferor of a Class A-R Certificate to a Disqualified Organization and (iii) a
Pass-Thru Entity that holds a Class A-R Certificate with one or more record holders that are
Disqualified Organizations. The Servicer also shall provide or cause to be provided promptly the
above described computation and information relating to the tax on transfers to Disqualified
Organizations or holdings by Pass-Thru Entities within sixty (60) days after becoming aware of the
transfer to a Disqualified Organization or Pass-Thru Entity with one or more Disqualified
Organization owners, as the case may be. In addition, except as may be provided in Treasury
Regulations, any Person holding an interest in a Pass-Thru Entity as a nominee for another will,
with respect to such interest, be treated as a Pass-Thru Entity. In connection with the foregoing,
the Servicer shall provide the name, address and telephone number of the person who can be
contacted to obtain information required to be reported to the holders of regular interests in any
REMIC created hereunder (the “REMIC Reporting Agent”) as required by IRS Form 8811. The Trustee
hereby designates the Servicer to serve as the REMIC Reporting Agent. The Servicer shall indicate
the elections to treat each of the REMIC Pools as a REMIC (which elections shall apply to the
taxable period ending December 31, 2007 and each calendar year thereafter) in such manner as the
Code or applicable Treasury regulations may prescribe. The Trustee shall sign all tax and
information returns filed pursuant to this Section 7.02 and any other returns as may be required by
the Code, and in doing so shall rely entirely upon, and shall have no liability for information
provided by, or calculations provided by, the Servicer. The Servicer is hereby designated as the
agent of the Holder of the Class A-R Certificate who shall be the “tax matters person” (within the
meaning of Treas. Reg. §1.860F-4(d)) for each REMIC Pool. Any Holder of a Class A-R Certificate
will by acceptance thereof so appoint the Servicer as agent and attorney-in-fact for the purpose of
acting as tax matters person. In the event that the Code or applicable Treasury regulations
prohibit the Trustee from signing tax or information returns or other statements, or the Servicer
from acting as tax matters person

115

 

(as an agent or otherwise), the Trustee or the Servicer, as the
case may be, shall take whatever action that in its sole good faith judgment is necessary for the
proper filing of such information returns or for the provision of a tax matters person, including
designation of the Holder of a Class A-R Certificate to sign such returns or act as tax matters
person. Each Holder of a Class A-R Certificate shall be bound by this Section 7.02 by virtue of
its acceptance of a Class A-R Certificate.

[END OF ARTICLE VII]

ARTICLE VIII

THE DEPOSITOR AND THE SERVICER 

     Section 8.01 Indemnification; Third Party Claims. The Servicer agrees to indemnify
the Depositor and the Trustee and hold the Depositor and the Trustee, their officers, directors,
employees and agents harmless against any and all claims, losses, penalties, fines, forfeitures,
legal fees and related costs, judgments, and any other costs, fees and expenses that the Depositor
or the Trustee, or their officers, directors, employees or agents may sustain in any way related to
failure of the Servicer to perform its duties and service the Mortgage Loans in compliance with the
terms of this Agreement; provided that no such indemnification shall be required with respect to
acts of a prior Servicer. The Servicer shall immediately notify the Depositor and the Trustee if a
claim is made by a third party with respect to this Agreement or the Mortgage Loans, assume (with
the consent of the Depositor and the Trustee) the defense of any such claim and pay all expenses in
connection therewith, including counsel fees, and promptly pay, discharge and satisfy any judgment
or decree which may be entered against it, the Depositor or the Trustee, their officers, directors,
employees or agents in respect of such claim. This right to indemnification shall survive the
termination of this Agreement.

     Section 8.02 Merger or Consolidation of the Depositor or the Servicer. The Depositor
and the Servicer will each keep in full effect its existence, rights and franchises as a
corporation, and will obtain and preserve its qualification to do business as a foreign corporation
in each jurisdiction in which such qualification is or shall be necessary to protect the validity
and enforceability of this Agreement, the Certificates or any of the Mortgage Loans and to perform
its duties under this Agreement. The Servicer will not sell all or substantially all of its assets
without the prior written consent of the Depositor and the Trustee which shall not be unreasonably
withheld or delayed.

     Any Person into which the Depositor or the Servicer may be merged or consolidated, or to whom
the Depositor or the Servicer has sold substantially all of its assets, or any corporation
resulting from any merger, conversion or consolidation to which the Depositor or the Servicer shall
be a party, or any Person succeeding to the business of the Depositor or the Servicer, shall be the
successor of the Depositor or the Servicer hereunder, without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person to the Servicer shall
satisfy the requirements of Section 8.05 with respect to the qualifications of a successor to the
Servicer.

     Notwithstanding anything else in this Section 8.02 and Section 8.04 to the contrary, the
Servicer may assign its rights and delegate its duties and obligations under this Agreement;
provided that the Person accepting such assignment or delegation shall be a Person which is
qualified to service mortgage loans on behalf of FNMA or FHLMC, is approved in advance in writing
by the Trustee and the Depositor, is willing to service the Mortgage Loans and executes and
delivers to the Depositor and the Trustee an agreement, in form and substance reasonably
satisfactory to the Depositor and the Trustee, which contains an assumption by such Person of the
due and punctual performance and observance of

116

 

each covenant and condition to be performed or
observed by the Servicer under this Agreement; provided further that each Rating Agency’s rating of
any of the Classes of Certificates that have been rated in effect immediately prior to such
assignment and delegation will not be qualified or reduced or withdrawn as a
result of such assignment and delegation. In the case of any such assignment and delegation,
the Servicer shall be released from its obligations as Servicer under this Agreement, except that
the Servicer shall remain liable for all liabilities and obligations incurred by it as Servicer
hereunder prior to the satisfaction of the conditions to such assignment and delegation set forth
in the next preceding sentence.

     Section 8.03 Limitation on Liability of the Depositor, the Servicer, the Trustee and
Others. Neither the Depositor, the Servicer nor any of the directors, officers, employees or
agents of the Depositor or the Servicer shall be under any liability to the Trustee or the
Certificateholders for any action taken, or for refraining from the taking of any action, in good
faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor or the Servicer against any breach of warranties or representations
made herein, or failure to perform its obligations in strict compliance with this Agreement, or any
liability which would otherwise be imposed by reason of any breach of the terms and conditions of
this Agreement. The Depositor, the Servicer, the Trustee, and any director, officer, employee or
agent of the Depositor, the Servicer or the Trustee may rely in good faith on any document of any
kind prima facie properly executed and submitted by any Person respecting any matters arising
hereunder. Neither the Depositor, the Servicer nor the Trustee shall be under any obligation to
appear in, prosecute or defend any legal action which is not incidental to its respective duties to
service the Mortgage Loans in accordance with this Agreement and which in its opinion may cause it
to incur any expenses or liability; provided, however, that the Depositor, the Servicer or the
Trustee may in its discretion (and, in the case of the Depositor or the Servicer, with the consent
of the Trustee, which consent shall not be unreasonably withheld) undertake any such action which
it may deem necessary or desirable with respect to this Agreement and the rights and duties of the
parties hereto. In such event, the legal expenses and costs of such action and any liability
resulting therefrom shall be expenses, costs and liabilities payable from the Collection Account
and the Depositor, the Servicer or the Trustee shall be entitled to be reimbursed therefor out of
the Collection Account as provided by Section 5.09; provided that no such right of reimbursement
shall exist with respect to the Servicer when such claim relates to the failure of the Servicer to
service the Mortgage Loans in strict compliance with the terms of this Agreement or to a breach of
a representation or warranty made by the Servicer hereunder.

     Section 8.04 Depositor and Servicer Not to Resign. Except as described in Section
8.02, neither the Depositor nor the Servicer shall assign this Agreement or resign from the
obligations and duties hereby imposed on it except by mutual consent of the Depositor, the Servicer
and all of the Certificateholders unless the determination is made that its duties hereunder are no
longer permissible under applicable law and such incapacity cannot be cured by the Depositor or the
Servicer. Any such determination permitting the resignation of the Depositor or the Servicer shall
be evidenced by an opinion of independent counsel to such effect delivered to the Trustee which
opinion of counsel shall be in form and substance acceptable to the Trustee. Upon any such
assignment or resignation, the Depositor or the Servicer, as appropriate, shall send notice to all
Certificateholders of the effect of such assignment or resignation upon the then current rating of
the Class of Certificates by each Rating Agency whose rating on such Class is then in effect. No
such resignation shall become effective until a successor shall have assumed the Depositor’s or the
Servicer’s responsibilities and obligations hereunder in the manner provided in Section 8.05. Any
purported assignment or resignation which does not comply with the requirements of this Section
shall be of no effect.

     Section 8.05 Successor to the Servicer. In connection with the termination of the
Servicer’s responsibilities and duties under this Agreement pursuant to Section 8.04 or 9.01, the
Trustee shall succeed to and assume all of the Servicer’s responsibilities, rights, duties and
obligations as Servicer (but not in any other capacity) under this Agreement (except that the
Trustee shall not be obligated to make

117

 

Advances if prohibited by applicable
law nor to effectuate repurchases or substitutions of Mortgage Loans pursuant to Section 2.02
and except that the Trustee makes no representations and warranties pursuant to Sections 3.01 and
3.02). Prior to the termination of the Servicer’s responsibilities, duties and liabilities under
this Agreement, the Trustee may appoint a successor having a net worth of not less than $15,000,000
and which is a FNMA or FHLMC approved seller/servicer in good standing and which shall succeed to
all rights and assume all of the responsibilities, duties and liabilities of the Servicer under
this Agreement, except as aforesaid, if the Trustee receives a letter from each Rating Agency that
such appointment would not result in a reduction or withdrawal of the current rating of any Class
of Certificates that is rated by a Rating Agency. Any co-trustee appointed pursuant to Section
10.10 for purposes of this Section 8.05 shall have an obligation to make Advances pursuant to
Section 6.03 during such time as the Trustee is the Servicer, which obligation shall be joint and
several with that of the Trustee as Servicer. If the Trustee has become the successor to the
Servicer in accordance with this Section or Section 9.03, then notwithstanding the above, the
Trustee may, if it shall be unwilling to so act, or shall, if it is unable to so act, appoint, or
petition a court of competent jurisdiction to appoint, any established housing and home finance
institution having a net worth of not less than $15,000,000 and which is a FNMA or FHLMC approved
seller/servicer in good standing as the successor to the Servicer hereunder in the assumption of
all of the responsibilities, duties or liabilities of the Servicer hereunder. In connection with
any such appointment and assumption, the Trustee may make such arrangements for the compensation of
such successor out of payments on Mortgage Loans as it and such successor shall agree or such court
shall determine; provided, however, that no such compensation shall be in excess of that permitted
under this Agreement without the consent of all of the Certificateholders. If the Trustee is
acting as Servicer, the Trustee shall be entitled to all compensation of the Servicer hereunder,
and all such compensation due to the Trustee as Servicer shall be in addition to all compensation
it is entitled to as Trustee under this Agreement. If the Servicer’s duties, responsibilities and
liabilities under this Agreement should be terminated pursuant to Section 8.02, 8.04 or 9.01, the
Servicer shall discharge such duties and responsibilities during the period from the date it
acquires knowledge of such termination until the effective date thereof with the same degree of
diligence and prudence which it is obligated to exercise under this Agreement, and shall take no
action whatsoever that might impair or prejudice the rights or financial condition of its successor
or the Trust Fund. The resignation or removal of the Servicer pursuant to Section 8.02, 8.04 or
9.01 shall not become effective until a successor shall be appointed pursuant to this Section and
shall in no event relieve the Servicer of liability for breach of the representations and
warranties made pursuant to Section 3.02.

     Any successor appointed as provided herein shall execute, acknowledge and deliver to the
Servicer and to the Trustee an instrument accepting such appointment, whereupon such successor
shall become fully vested with all the rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer, with like effect as if originally named as a party to this Agreement
and the Certificates. Any termination or resignation of the Servicer or this Agreement pursuant to
Section 8.02, 8.04, 9.01 or 11.01 shall not affect any claims that the Trustee may have against the
Servicer for events or actions taken or not taken by the Servicer arising prior to any such
termination or resignation.

     The Servicer shall timely deliver to the successor the funds that were, or were required to
be, in the Collection Account and the Escrow Account, if any, and all Mortgage Files and related
documents, statements and recordkeeping held by it hereunder and the Servicer shall account for all
funds and shall execute and deliver such instruments and do such other things as may reasonably be
required to more fully and definitely vest and confirm in the successor all such rights, powers,
duties, responsibilities, obligations and liabilities of the Servicer.

     Upon a successor’s acceptance of appointment as such, the Servicer shall notify, in writing,
the Trustee, the Certificateholders and each Rating Agency of such appointment.

118

 

     Section 8.06 Maintenance of Ratings. The Servicer shall cooperate with the Depositor
and take any action that may be reasonably necessary to maintain the current rating or ratings on
the Certificates.

[END OF ARTICLE VIII]

ARTICLE IX

DEFAULT

     Section 9.01 Events of Default. If one or more of the following Events of Default
shall occur and be continuing, that is to say:

     (a) any failure by the Servicer to remit any payment required to be made or distributed under
the terms of this Agreement which continues unremedied for a period of three (3) Business Days
after the date upon which written notice of such failure, requiring the same to be remedied, shall
have been given to the Servicer by the Trustee, the Paying Agent or the Depositor or to the
Servicer, the Trustee, the Paying Agent and the Depositor by the Holders of Certificates of any
Class evidencing, as to such Class, Percentage Interests aggregating not less than 25%; or

     (b) a breach by the Servicer in a material respect of any representation or warranty set forth
in Section 3.02, or failure on the part of the Servicer duly to observe or perform in any material
respect any other of the covenants or agreements on the part of the Servicer set forth in this
Agreement, which continues unremedied for a period of 60 days after the date on which written
notice of such breach or failure, requiring the same to be remedied, shall have been given to the
Servicer by the Trustee or the Depositor or to the Servicer, the Trustee and the Depositor by the
Holders of Certificates of any Class evidencing, as to such Class, Percentage Interests aggregating
not less than 25%; or

     (c) the Servicer shall notify the Trustee and any Paying Agent appointed pursuant to Section
4.05 in writing that it is unable to make an Advance required to be made in accordance with Section
6.03; or;

     (d) a decree or order of a court or agency or supervisory authority having jurisdiction for
the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation
of its affairs, shall have been entered against the Servicer and such decree or order shall have
remained in force undischarged or unstayed for a period of 60 days; or

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

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

then, and in each and every such case, so long as an Event of Default shall not have been remedied,
upon receiving notice or knowledge of such event, the Trustee shall notify the Certificateholders
and each Rating Agency of such Event of Default. The Trustee may, upon receipt of such notice or
knowledge, and at the written direction of the Holders of Certificates evidencing Percentage
Interests aggregating

119

 

more than 50% (with respect to a particular Mortgage Pool), shall, by notice in writing to the
Servicer, terminate all the rights and obligations of the Servicer under this Agreement and in and
to the Mortgage Loans and the proceeds thereof. On or after the receipt by the Servicer of such
written notice, all authority and power of the Servicer under this Agreement, whether with respect
to the Mortgage Loans or otherwise, shall pass to and be vested in the successor appointed pursuant
to Section 8.05. Upon written request from the Trustee, the Servicer shall prepare, execute and
deliver, any and all documents and other instruments, place in such successor’s possession all
Mortgage Files, and do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and endorsement or
assignment of the Mortgage Loans and related documents, or otherwise, at the Servicer’s sole
expense. The Servicer agrees to cooperate with the Trustee and any co-trustee in effecting the
termination of the Servicer’s responsibilities and rights hereunder, including, without limitation,
the transfer to such successor for administration by it of all cash amounts which shall at the time
be credited or should have been credited by the Servicer to the Collection Account or Escrow
Account or thereafter received with respect to the Mortgage Loans. The Trustee will have no
obligation to take any action or institute, conduct or defend any litigation under this Agreement
at the request, order or direction of any of the Holders of Certificates unless such
Certificateholders have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which the Trustee may incur. The Paying Agent shall provide information
regarding the Certificateholders available to the Paying Agent in order to allow the Trustee to
comply with the provisions above.

     Section 9.02 Waiver of Defaults. The Trustee may waive any default by the Servicer in
the performance of its obligations hereunder and its consequences, except that a default in the
making of any required distribution on any of the Certificates may only be waived by the Holders of
a majority of the Percentage Interests of the affected Certificateholders. Upon any such waiver of
a past default, such default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend
to any subsequent or other default or impair any right consequent thereon except to the extent
expressly so waived.

     Section 9.03 Trustee to Act; Appointment of Successor. On and after the time the
Servicer receives a notice of termination pursuant to Section 9.01, the Trustee or a successor
servicer appointed by it shall be the successor in all respects to the Servicer to the extent
provided in Section 8.05.

     Section 9.04 Notification to Certificateholders and the Rating Agencies.

     (a) Upon any such termination pursuant to Section 9.01, the Trustee shall give prompt written
notice thereof to Certificateholders at their respective addresses appearing in the Certificate
Register and to each Rating Agency.

     (b) Within sixty (60) days of a Responsible Officer of the Trustee having received written
notice of the occurrence of any Event of Default, the Trustee shall transmit by mail to all Holders
of Certificates notice of each such Event of Default hereunder known to the Trustee, unless such
Event of Default shall have been cured or waived.

     (c) The Paying Agent shall provide information regarding the Certificateholders available to
the Paying Agent in order to allow the Trustee to comply with the provisions above.

[END OF ARTICLE IX]

120

 

ARTICLE X

CONCERNING THE TRUSTEE

     Section 10.01 Duties of Trustee. The Trustee, prior to the occurrence of an Event of
Default and after the curing of all Events of Default which may have occurred, undertakes to, and
is empowered to, perform such duties and only such duties as are specifically set forth in this
Agreement. Any permissive right of the Trustee as enumerated in this Agreement shall not be
construed as a duty; provided that in case an Event of Default has occurred (which has not been
cured), the Trustee shall exercise such of the rights and powers vested in it by this Agreement,
and use the same degree of care and skill in their exercise as a prudent man would exercise or use
under the circumstances in the conduct of such man’s own affairs.

     No provision of this Agreement shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act or its own willful misconduct; provided,
however, that:

     (i) Prior to the occurrence of an Event of Default, and after the curing of all such
Events of Default which may have occurred, the duties and obligations of the Trustee shall
be determined solely by the express provisions of this Agreement, the Trustee shall not be
liable except for the performance of such duties and obligations as are specifically set
forth in this Agreement, no implied covenants or obligations shall be read into this
Agreement against the Trustee and, in the absence of bad faith on the part of the Trustee,
the Trustee may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon any certificates or opinions furnished to the Trustee
and conforming to the requirements of this Agreement;

     (ii) The Trustee shall not be liable for an error of judgment made in good faith by a
Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts; and

     (iii) The Trustee shall not be liable with respect to any action taken, suffered or
omitted to be taken by it in good faith in accordance with the direction of
Certificateholders of any Class holding Certificates which evidence, as to such Class,
Percentage Interests aggregating not less than 25% as to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Agreement.

     (iv) The Trustee shall execute the Letter of Representations, a form of which is
attached hereto as Exhibit P, on behalf of the Depositor.

     Section 10.02 Certain Matters Affecting the Trustee. Except as otherwise provided in
Section 10.01:

     (a) The Trustee may rely upon and shall be protected in acting or refraining from acting upon
any resolution, Officers’ Certificate, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or
parties;

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

121

 

     (c) The Trustee shall be under no obligation to exercise any of the trusts or powers vested in
it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation
hereto at the request, order or direction of any of the Certificateholders, pursuant to the
provisions of this Agreement, unless such Certificateholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby;

     (d) Neither the Trustee nor any of its directors, officers, employees or agents shall be
personally liable for any action taken, suffered or omitted by it in good faith and believed by it
or any of them to be authorized or within the discretion or rights or powers conferred upon the
Trustee by this Agreement;

     (e) Prior to the occurrence of an Event of Default hereunder and after the curing of all
Events of Default which may have occurred, the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond or other paper or document, unless
requested in writing to do so by Holders of Certificates of any Class evidencing, as to such Class,
Percentage Interests aggregating not less than 25% (in the case of conflicting requests by two or
more 25% or greater Percentage Interests, the Trustee shall act in accordance with the first such
request); provided, however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it
by the terms of this Agreement, the Trustee may require reasonable indemnity against such expense
or liability as a condition to such proceeding. The reasonable expense of every such examination
shall be paid by the Servicer, if an Event of Default shall have occurred and is continuing, and
otherwise by the Certificateholder requesting the investigation;

     (f) The Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, subcontractors or attorneys; and

     (g) Nothing in this Agreement shall be construed to require the Trustee (except as might
otherwise be required in its capacity as successor Servicer) to expend its own funds.

     Section 10.03 Trustee Not Liable for Certificates or Mortgage Loans. The recitals
contained herein shall be taken as the statements of the Depositor or the Servicer, as the case may
be, and the Trustee assumes no responsibility for their correctness. The Trustee makes no
representations or warranties as to the validity or sufficiency of this Agreement or of the
Certificates, of any Mortgage Loan or related document or the Trust. The Trustee shall not be
accountable for the use or application by the Depositor or the Servicer of any of the Certificates
or of the proceeds of such Certificates, or for the use or application of any funds paid to the
Depositor or the Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the
Collection Account by the Depositor or the Servicer or the Certificate Account by the Paying Agent.
The Trustee shall have no responsibility for the timeliness or the amount of payments made by the
Paying Agent to the Certificateholders.

     Section 10.04 Trustee May Own Certificates. The Trustee in its individual or any
other capacity may become the owner or pledgee of Certificates with the same rights it would have
if it were not Trustee.

     Section 10.05 Fees and Expenses. The Paying Agent, from moneys received from the
Servicer, covenants and agrees to pay to the Trustee and its agents a monthly fee (which shall not
be limited by any provision of law in regard to the compensation of a trustee of an express trust)
equal to the product of (a) the aggregate Principal Balance of the Mortgage Loans as of the
Determination Date in the preceding month and (b) one-twelfth of 0.000010, and the Servicer will
pay or reimburse the Trustee, or its agents

122

 

upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee or its agents in accordance with any of
the provisions of this Agreement (including the reasonable compensation and the expenses and
disbursements of its counsel and of all persons not regularly in its employ, and the expenses
incurred by the Trustee in connection with the appointment of an office or agency pursuant to
Section 10.11) and the Servicer shall indemnify and hold harmless the Trustee its officers,
directors, employees and agents from and against any and all claims, liabilities, losses or
expenses (including but not limited to reasonable attorneys fees) incurred in connection with the
administration of this Trust and the performance of its duties hereunder provided that the Servicer
shall not be required to reimburse any such expense or indemnify against any such loss or liability
incurred by the Trustee through the Trustee’s own negligence or bad faith. Notwithstanding
anything to the contrary in this Agreement, this Section shall survive the termination of this
Agreement.

     Section 10.06 Eligibility Requirements for Trustee. The Trustee hereunder shall at
all times be an entity having its principal office in a state and city acceptable to the Depositor
and organized and doing business under the laws of such state or the United States of America,
authorized under such laws to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by federal or state
authority. The Trustee shall not be an Affiliate of either Seller or the Depositor. If such
entity publishes reports of condition at least annually, pursuant to law or to the requirements of
the aforesaid supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee
shall resign immediately in the manner and with the effect specified in Section 10.07.

     Section 10.07 Resignation and Removal of the Trustee. The Trustee, and any co-trustee
may at any time resign and be discharged from the trusts hereby created by giving written notice
thereof to the Depositor, the Servicer and each Rating Agency. Upon receiving such notice of
resignation, the Depositor shall promptly appoint a successor trustee or co-trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Trustee
and one copy to the successor trustee; provided that such appointment does not result in a
reduction or withdrawal of the rating of any of the Classes of Certificates that have been rated.
If no successor trustee shall have been so appointed and have accepted appointment within thirty
(30) days after the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee.

     If at any time, the Trustee shall cease to be eligible in accordance with the provisions of
Section 10.06 and shall fail to resign after written request therefor by the Depositor, or if at
any time the Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent,
or a receiver of the Trustee or of its property shall be appointed, or any public officer shall
take charge or control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Depositor may remove the Trustee and appoint
a successor trustee by written instrument, in duplicate, one copy of which instrument shall be
delivered to the Trustee so removed and one copy to the successor trustee.

     The Holders of Certificates evidencing in the aggregate more than 50% of Percentage Interest
with respect to a particular Mortgage Pool may at any time remove the Trustee and appoint a
successor trustee by written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which instruments shall be delivered
to the Depositor, one complete set to the Trustee so removed and one complete set to the successor
so appointed.

123

 

     Any resignation or removal of the Trustee or any resignation of any co-trustee and appointment
of a successor trustee or co-trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee as provided in Section 10.08, or
upon acceptance of appointment by a co-trustee, as applicable, unless with respect to a co-trustee,
the Trustee receives written notice from each Rating Agency that the failure to appoint a successor
co-trustee would not result in a withdrawal or reduction of the rating of any of the Classes of
Certificates that have been rated, in which case the resignation of any co-trustee shall be
effective upon receipt of such written notice. Any co-trustee may not be removed unless the
Depositor and the Trustee each receive written notice from each Rating Agency that such removal
would not result in a withdrawal or reduction of the rating of any of the Classes of Certificates
that have been rated, in which case the removal of any co-trustee shall be effective upon receipt
of such written notice.

     Section 10.08 Successor Trustee. Any successor trustee appointed as provided in
Section 10.07 shall execute, acknowledge and deliver to the Depositor and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the predecessor trustee shall become effective, and such successor trustee shall become
effective and such successor trustee, without any further act, deed or conveyance, shall become
fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with
the like effect as if originally named as trustee herein. The predecessor trustee shall deliver to
the successor trustee all Mortgage Files and related documents and statements held by it hereunder,
and the Depositor, the Servicer and the predecessor trustee shall execute and deliver such
instruments and do such other things as may reasonably be required for more fully and certainly
vesting and confirming in the successor trustee all such rights, powers, duties and obligations.

     No successor trustee shall accept appointment as provided in this Section unless at the time
of such acceptance such successor trustee shall be eligible under the provisions of Section 10.06.
Prior to the appointment of any successor trustee becoming effective, the Depositor shall have
received from each Rating Agency written confirmation that such appointment would not result in a
reduction of the rating of the Class A or Class M Certificates.

     Upon acceptance of appointment by a successor trustee as provided in this Section, the
Servicer shall mail notice of the succession of such trustee hereunder to all Holders of
Certificates at their addresses as shown in the Certificate Register, to the Servicer, any
Sub-Servicer and to each Rating Agency. If the Depositor fails to mail such notice within ten (10)
days after acceptance of appointment by the successor trustee, the successor trustee shall cause
such notice to be mailed at the expense of the Depositor.

     Section 10.09 Merger or Consolidation of Trustee. Any entity into which the Trustee
may be merged or converted or with which it may be consolidated or any entity resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or any entity succeeding
to the business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be eligible under the provisions of Section 10.06, without the execution or
filing of any paper or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding.

     Section 10.10 Appointment of Co-Trustee or Separate Trustee. At any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Fund
or property securing the same may at the time be located, the Depositor and the Trustee acting
jointly shall have the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee to act as co-trustee or co-trustees, jointly with the Trustee, of
any part of the Trust Fund, and to vest in such Person or Persons, in such capacity, such title to
the Trust Fund, or any part thereof, and, subject to the other provisions of this Section 10.10,
such powers, duties, obligations, rights and trusts as

124

 

the Depositor and the Trustee may consider
necessary or desirable. If the Depositor shall not have joined in such appointment within fifteen
(15) days after the receipt by it of a request so to do, or in case an Event of Default shall have
occurred and be continuing, the Trustee alone shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 10.06, hereunder, and no notice to Holders of Certificates of the
appointment of co-trustee(s) or separate trustee(s) shall be required under Section 10.08 hereof.

     In the case of any appointment of a co-trustee or separate trustee pursuant to this Section
10.10, all rights, powers, duties and obligations conferred or imposed upon the Trustee shall be
conferred or imposed upon and exercised or performed by the Trustee and such separate trustee or
co-trustee jointly and severally, except to the extent that under any law of any jurisdiction in
which any particular act or acts are to be performed (whether as Trustee hereunder or as successor
to the Servicer hereunder), the Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations (including the holding of title to
the Trust Fund or any portion thereof in any such jurisdiction) shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

     Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement
and the conditions of this Article X. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in its instrument of
appointment, either jointly with the Trustee or separately, as may be provided therein, subject to
all the provisions of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection to, the Trustee.
Every such instrument shall be filed with the Trustee.

     Any separate trustee or co-trustee may, at any time, constitute the Trustee, its agent or
attorney-in-fact, with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect of this Agreement on its behalf and in its name.

     Section 10.11 Appointment of Office or Agency. The Trustee may appoint an office or
agency in The City of New York where Certificates may be surrendered for registration of transfer
or exchange. The Trustee will maintain an office at the address stated in Section 12.07 hereof
where notices and demands to or upon the Trustee in respect of the Certificates may be served.

     Section 10.12 Indemnification.

          (a) The Paying Agent shall indemnify and hold harmless the Trustee, the Depositor, the
Servicer and their respective officers, directors, agents and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments
and other costs and expenses arising out of or based upon a failure of the Paying Agent to deliver
when required any Assessment of Compliance required of it pursuant to Section 5.26 or any material
misstatement or omission contained in any Assessment of Compliance provided on its behalf pursuant
to Section 5.26. If
the indemnification provided for herein is unavailable or insufficient to hold harmless the
indemnified parties, then the Paying Agent agrees that it shall contribute to the amount paid or
payable by the indemnified parties as a result of the losses, claims, damages or liabilities of the
indemnified parties in such proportion as is appropriate to reflect the relative fault of the
Paying Agent on the one hand and of the indemnified parties on the other.

          (b) The Servicer shall indemnify and hold harmless the Trustee, the Paying Agent and the
Depositor and their respective officers, directors, agents and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments
and other

125

 

costs and expenses arising out of or based upon a breach by the Servicer or any of its
officers, directors, agents or Affiliates of its obligations under Sections 5.24, 5.25, and 5.26,
any material misstatement or omission in any documents prepared thereunder (to the extent the
Servicer is responsible for providing information or calculating amounts included in such
information), the failure of the Servicer to deliver when required any Assessment of Compliance or
Accountant’s Attestation required of it pursuant to Section 5.26 or Annual Statement of Compliance
required pursuant to Section 5.25, as applicable, or any material misstatement or omission
contained in any Assessment of Compliance, Accountant’s Attestation or Annual Statement of
Compliance provided on its behalf pursuant to Section 5.25 or 5.26, as applicable, or the
negligence, bad faith or willful misconduct of the Servicer in connection therewith. If the
indemnification provided for herein is unavailable or insufficient to hold harmless the indemnified
parties, then the Servicer agrees that it shall contribute to the amount paid or payable by the
indemnified parties as a result of the losses, claims, damages or liabilities of the indemnified
parties in such proportion as is appropriate to reflect the relative fault of the Servicer on the
one hand and of the indemnified parties on the other.

[END OF ARTICLE X]

ARTICLE XI

TERMINATION

     Section 11.01 Termination. With respect to each Mortgage Pool, the respective
obligations and responsibilities of the Depositor, the Servicer (except the duty to pay the
Trustee’s fees and expenses and indemnification hereunder) and the Trustee shall terminate upon (i)
the later of the final payment or other liquidation (or any Advance with respect thereto) of the
last Mortgage Loan in such Mortgage Pool or the disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan in such Mortgage Pool and the
remittance of all funds due hereunder; or (ii) at the option of the Servicer, on any Distribution
Date which occurs in the month next following a Due Date on which the aggregate unpaid Principal
Balance of all Outstanding Mortgage Loans in a particular Mortgage Pool is less than 10% of the
aggregate unpaid Principal Balance of the Mortgage Loans in such Mortgage Pool on the Cut-off Date,
so long as the Servicer deposits or causes to be deposited in the Collection Account during the
Principal Prepayment Period related to such Distribution Date (and provides notice to the Trustee
with a copy to the Paying Agent appointed pursuant to Section 4.05 of its intention to so deposit
on or before 20th day of such Principal Prepayment Period) an amount equal to the Purchase Price
for each Outstanding Mortgage Loan in such Mortgage Pool plus, in the case of Mortgage Pool 1, any
unpaid Net Swap Payments and any Swap Termination Payment owed to the Swap Counterparty, less any
unreimbursed Advances made with respect to any Mortgage Loan in such Mortgage Pool (which amount
shall offset completely any unreimbursed Advances for which the Servicer is otherwise entitled to
reimbursement), and, with respect to all property acquired in respect of any Mortgage Loan in such
Mortgage Pool remaining in the portion of the Trust Fund relating to such Mortgage Pool, an amount
equal to the fair market value of such property, as determined by an
appraisal to be conducted by an appraiser selected by the Trustee, less unreimbursed Advances
made with respect to any Mortgage Loan in such Mortgage Pool with respect to which property has
been acquired; provided, however, that in no event shall the trust created hereby continue beyond
the expiration of 21 years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late ambassador of the United States to the Court of St. James’s, living on the date
hereof. Notwithstanding the foregoing, amounts paid by the Servicer pursuant to this paragraph in
respect of unpaid Net Swap Payments and Swap Termination Payments owed to the Swap Counterparty
shall not be part of any REMIC. Notwithstanding the foregoing, a termination may be
effected by the making of such optional repurchases only if the termination satisfies the
requirement for a “qualified liquidation” of the applicable portion of the Trust Fund within the

126

 

meaning of Section 860F(a)(4) of the Code and the purchases of the Outstanding Mortgage Loans
pursuant to this Section 11.01 will not constitute “prohibited transactions” within the meaning of
Section 860F(a)(2) of the Code.

     Notice of any termination, specifying the Distribution Date upon which all related
Certificateholders may surrender their Certificates to the Trustee or, if a Paying Agent has been
appointed pursuant to Section 4.05, the Paying Agent for payment and cancellation, shall be given
promptly by the Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying
Agent, (upon direction by the Depositor ten (10) days prior to the date such notice is to be
mailed) by signed letter to such Certificateholders and each Rating Agency mailed no later than the
25th day of the month preceding the month of such final distribution specifying (i) the
Distribution Date upon which final payment on the related Certificates will be made upon
presentation and surrender of such Certificates at the office or agency of the Trustee or, if a
Paying Agent has been appointed under Section 4.05, the Paying Agent, therein designated and (ii)
that the Record Date otherwise applicable to such Distribution Date is not applicable, payments
being made only upon presentation and surrender of the related Certificates at the office or agency
of the Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying Agent,
therein specified. The Servicer shall indicate the date of adoption of the plan of qualified
liquidation in a statement attached to the final federal income tax return of each applicable REMIC
Pool. After giving such notice, the Trustee or if a Paying Agent has been appointed under Section
4.05, the Paying Agent shall not register the transfer or exchange of any Certificates relating to
such terminated Mortgage Pool in the portion of the Trust Fund being terminated. If such notice is
given in connection with the Servicer’s election to purchase the Outstanding Mortgage Loans, the
Servicer shall deposit in the Collection Account after adoption of the plan during the applicable
Principal Prepayment Period an amount equal to the purchase price as determined as provided in
clause (ii) of the preceding paragraph and on the Distribution Date on which such termination is to
occur, related Certificateholders will be entitled to the amount of such purchase price but not
amounts in excess thereof, all as provided herein. Upon presentation and surrender of the related
Certificates, the Trustee, or if a Paying Agent has been appointed under Section 4.05, the Paying
Agent shall notify the Servicer and the Servicer shall cause to be distributed to the related
Certificateholders an amount equal to (a) the amount otherwise distributable on such Distribution
Date, if not in connection with a purchase; or (b) if the Servicer elected to so purchase, the
purchase price determined as provided in clause (ii) of the preceding paragraph. Following such
final deposit the Trustee shall promptly release to the Servicer the Mortgage Files relating to
such terminated Mortgage Pool in the portion of the Trust Fund being terminated for the remaining
Mortgage Loans, and the Trustee shall execute all assignments, endorsements and other instruments
necessary to effectuate such transfer and shall have no further responsibility with regard to said
Mortgage Files.

     If all of the Related Certificateholders shall not surrender their Certificates for
cancellation within three (3) months after the time specified in the above-mentioned written
notice, at the close of the 90 day period beginning after the written notice is given, each
remaining Related Certificateholder will be credited with an amount that would have been otherwise
distributed to such Certificateholder, and the Trustee or, if a Paying Agent has been appointed
under Section 4.05, the Paying Agent, shall give a second written notice to the remaining Related
Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within three (3)
months after the second notice all the related Certificates shall not have been surrendered for
cancellation, the Trustee or, if a Paying Agent has been appointed under Section 4.05, the Paying
Agent, shall appoint an agent to take appropriate and reasonable steps to contact the remaining
Related Certificateholders concerning surrender of their Certificates, and the cost thereof shall
be paid out of the funds and other assets which remain in that portion of the Trust Fund being
terminated hereunder.

[END OF ARTICLE XI]

127

 

ARTICLE XII

MISCELLANEOUS PROVISIONS

     Section 12.01 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.

     Section 12.02 Limitation on Rights of Certificateholders. The death or incapacity of
any Certificateholder shall not operate to terminate this Agreement or the Trust Fund, nor entitle
such Certificateholder’s legal representatives or heirs to claim an accounting or to take any
action or proceeding in any court for a partition or winding-up of the Trust Fund, nor otherwise
affect the rights, obligations and liabilities of the parties hereto or any of them.

     No Certificateholder shall have any right to vote (except as expressly provided herein) or in
any manner otherwise control the operation and management of the Trust Fund, or the obligations of
the parties hereto, nor shall anything herein set forth, or contained in the terms of the
Certificates, be construed so as to constitute the Certificateholders from time to time as partners
or members of an association; nor shall any Certificateholder be under any liability to any third
Person by reason of any action taken by the parties to this Agreement pursuant to any provision
hereof.

     No Certificateholder shall have any right by virtue of any provision of this Agreement to
institute any suit, action or proceeding in equity or at law upon or under or with respect to this
Agreement, unless such Holder previously shall have given to the Trustee a written notice of
default and of the continuance thereof, as hereinbefore provided, and the Holders of Certificates
of any Class evidencing in the aggregate not less than 25% of the Percentage Interests of such
Class shall have made written request upon the Trustee to institute such action, suit or proceeding
in its own name as Trustee hereunder (in the case of conflicting requests by two or more 25% or
greater Percentage Interests, the Trustee shall act in accordance with the first such request) and
shall have offered to the Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby, and the Trustee, for sixty (60) days
after its receipt of such notice, request and offer of indemnity, shall have neglected or refused
to institute any such action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other Certificateholder and the Trustee,
that no one or more Holders of Certificates of any Class shall have any right in any manner
whatever by virtue of any provision of this Agreement to affect, disturb or prejudice the rights of
the Holders of any other of such Certificates of such Class or any other Class, or to obtain or
seek to obtain priority over or preference to any other such Holder, or to enforce any right under
this Agreement, except in the manner
herein provided and for the common benefit of Certificateholders of such Class or all Classes,
as the case may be. For the protection and enforcement of the provisions of this Section, each and
every Certificateholder and the Trustee shall be entitled to such relief as can be given either at
law or in equity.

     Section 12.03 Amendment. This Agreement may be amended from time to time by the
Depositor, the Servicer and the Trustee, without the consent of any of the Certificateholders (but
with the consent of the Swap Counterparty to the extent any such amendment would have a materially
adverse effect on the Swap Counterparty, in such capacity), to cure any ambiguity, to correct or
supplement any provisions herein which may be inconsistent with any other provisions herein, to
ensure continuing treatment of each REMIC created hereunder as a REMIC to avoid or minimize the
risk of imposition of any tax on any REMIC created hereunder pursuant to the Code, or to make any
other provisions with respect to matters or questions arising under this Agreement which shall not
be materially inconsistent

128

 

with the provisions of this Agreement, provided that such actions shall
not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests
of any Certificateholder of a Class having an Outstanding Certificate Principal Balance of greater
than zero or cause any REMIC created hereunder to fail to qualify as a REMIC.

     This Agreement may also be amended from time to time by the Depositor, the Servicer and the
Trustee with the consent of the Holders of Certificates evidencing in the aggregate not less than
66-2/3% of the Percentage Interest of each Class of Certificates having an Outstanding Certificate
Principal Balance greater than zero and affected thereby, and with the consent of the Swap
Counterparty to the extent any such amendment would have a materially adverse effect on the Swap
Counterparty, in such capacity, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in any manner the
rights of the Holders of Certificates of such Class; provided, however, that no such amendment
shall (i) reduce in any manner the amount of, or delay the timing of, payments received on Mortgage
Loans which are required to be distributed on any Certificate without the consent of the Holder of
such Certificate, (ii) reduce the aforesaid percentage of Certificates of any Class the Holders of
which are required to consent to any such amendment or (iii) change the percentage specified in
clause (ii) of the first paragraph of Section 11.01, without the consent of the Holders of all
Certificates of such Class then outstanding.

     Notwithstanding anything to the contrary in this Agreement, this Agreement may be amended from
time to time by the Depositor, the Servicer and the Trustee with the consent of Certificateholders
evidencing not less than 66-2/3% of the interests held by parties other than the Depositor, its
Affiliates or its agents, and with the consent of the Swap Counterparty to the extent any such
amendment would have a materially adverse effect on the Swap Counterparty, in such capacity, for
the purposes of significantly changing the Permitted Activities of the Trust.

     Promptly after the execution of any such amendment the Trustee shall furnish written
notification of the substance of such amendment to each Certificateholder and each Rating Agency.

     It shall not be necessary for the consent of Certificateholders under this Section 12.03 to
approve the particular form of any proposed amendment but it shall be sufficient if such consent
shall approve the substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe. In connection with any amendment pursuant to this
Section 12.03 the Trustee, Paying Agent and Depositor shall be entitled to receive an Opinion of
Counsel to the effect that such amendment is authorized or permitted by this Agreement and that all
conditions precedent to the execution of such amendment in accordance with this Section 12.03 have
been met.

     Section 12.04 Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which counterparts shall be deemed to be an original, and such
counterparts shall constitute but one and the same instrument.

     Section 12.05 Duration of Agreement. This Agreement shall continue in existence and
effect until terminated as herein provided.

     Section 12.06 Governing Law. This Agreement shall be construed in accordance with the
laws of the State of New York and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws.

     Section 12.07 Notices. All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at or mailed by first
class or

129

 

registered mail, postage prepaid, to (i) in the case of the Depositor, Chase Mortgage
Finance Corporation, 300 Tice Boulevard, 3rd Floor North, Woodcliff Lake, New Jersey 07675,
Attention: Structured Finance, (ii) in the case of the Servicer, JPMorgan Chase Bank, N.A., 1111
Polaris Parkway, Columbus, Ohio 43240, (iii) in the case of the Custodian, JPMorgan Chase Bank,
N.A., 1080 Oliver Road, Monroe, Louisiana, 71201, (iv) in the case of the Trustee, The Bank of New
York Trust Company, N.A., 601 Travis, 16th Floor, Houston, Texas 77002, (v) in the case
of the Paying Agent, The Bank of New York Trust Company, N.A., 601 Travis, 16th Floor,
Houston, Texas 77002, (vi) in the case of Moody’s, Moody’s Investors Service, Inc., 99 Church
Street, 4th Floor, New York, New York 10007 (vii) [Reserved] (viii) in the case of S&P,
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street,
New York, New York 10041 and (ix) in the case of any of the foregoing persons, such other addresses
as may hereafter be furnished by any such persons to the other parties to this Agreement.

     Section 12.08 Further Assurances. The Seller and the Servicer agree to do and
perform, from time to time, any and all acts and to execute any and all further instruments
required or reasonably requested by the Trustee more fully to effect the purposes of this
Agreement, including, without limitation, the execution of any financing statements and the
preparation for execution by the Trustee of any continuation statements relating to the Co-op Loans
for filing under the provisions of the Uniform Commercial Code as in effect in the jurisdiction in
which the underlying Mortgaged Property related to the affected Co-op Loan is located. The Trustee
agrees that it shall promptly execute and redeliver to the Seller or the Servicer for filing any
such continuation statement so prepared by the Seller relating to the Co-op Loans.

     The Swap Counterparty shall be deemed a third-party beneficiary of this Agreement to the same
extent as if it were a party hereto and shall have the right to enforce its rights under this
Agreement, which rights include but are not limited to, the obligation of the Paying Agent (A) to
pay any Net Swap Payment and any Swap Termination Payment to the Swap Counterparty and (B) to
establish and maintain the Supplemental Interest Trust, to make such deposits thereto, investments
therein and distributions therefrom as are required pursuant to Article VI. For the protection and
enforcement of the provisions of this Section, the Swap Counterparty shall be entitled to relief as
can be given either at law or in equity.

[END OF ARTICLE XII]

130

 

     IN WITNESS WHEREOF, the Depositor, the Servicer, the Paying Agent and the Trustee have
caused their names to be signed hereto by their respective officers thereunto duly authorized as of
the day and year first above written.

	 	 	 
	 

	 	CHASE MORTGAGE FINANCE

CORPORATION,
	 

	 	as Depositor
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	Name:
	 

	 	Title:
	 
	 	 
	 

	 	JPMORGAN CHASE BANK, N.A.,
	 

	 	as Servicer
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	Name:
	 

	 	Title:
	 
	 	 
	 

	 	THE BANK OF NEW YORK TRUST 
COMPANY, N.A.
	 

	 	as Trustee and Paying Agent
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	Name:
	 

	 	Title:
	 
	 	 
	 

	 	JPMORGAN CHASE BANK, N.A.,
	 

	 	as Custodian
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	Name:
	 

	 	Title:

 

 

EXHIBITS A-1 AND A-2

MORTGAGE LOAN SCHEDULES

[INTENTIONALLY OMITTED]

 

 

EXHIBIT B

CONTENTS OF MORTGAGE FILE

     (i) With respect to each Mortgage Loan which is not a Co-op Loan:

     (A) (I) Original Mortgage Note bearing all intervening endorsements, endorsed, “Pay to the
order of                     , without recourse” and signed in the name of the last endorsee by an
authorized officer.

     (B) The
original Mortgage (including all riders thereto) with evidence of recording thereon,
or a copy thereof certified by the public recording office in which such Mortgage has been
recorded or, if the original Mortgage has not been returned from the applicable public recording
office, a true certified copy of the original that was sent for recording, certified by the Seller.

     (C) With respect
to each Non-MERS Mortgage Loan which is not a Co-op Loan, the original
Assignment of Mortgage to “The Bank of New York Trust Company, N.A., as trustee (Chase Mortgage
Finance Corporation),” or in blank which assignment shall be in form and substance acceptable for recording, or
a copy certified by the Seller as a true and correct copy of the original Assignment of Mortgage
which has been sent for recordation. Subject to the foregoing,
such assignments may, if permitted by law, be by blanket assignments for Mortgage Loans covering
Mortgaged Properties situated within the same county. If the Assignment of Mortgage is in blanket
form, a copy of the Assignment of Mortgage shall be included in the related individual Mortgage
File.

     (D) The
original policy of title insurance, or in the event such original title policy is
unavailable a copy of the related policy (provided that use of a copy is acceptable to the related
title insurance or escrow company), including riders and endorsements thereto, or if the policy has
not yet been issued, a written commitment or interim binder or preliminary report of title issued
by the title insurance or escrow company.

     (E) Originals
of all recorded intervening Assignments of Mortgage, or copies thereof,
certified by the public recording office in which such Assignments or Mortgage have been recorded
showing a complete chain of title from the originator to the Depositor, with evidence of recording,
thereon, or a copy thereof certified by the public recording office in which such Assignment of
Mortgage has been recorded or, if the original Assignment of Mortgage has not been returned from
the applicable public recording office, a true certified copy, certified by the Seller of the
original Assignment of Mortgage together with a certificate of the Seller certifying that the
original Assignment of Mortgage has been delivered for recording in the appropriate public
recording office of the jurisdiction in which the Mortgaged Property is located.

     (F) Originals, or copies thereof certified by the public recording office in which such
documents have been recorded, of each assumption, extension, modification, written assurance or
substitution agreements, if applicable, or if the original of such document has not been returned
from the applicable public recording office, a true certified copy, certified by the Seller, of
such original document together with certificate of such Seller certifying the original of such
document has been delivered for recording in the appropriate recording office of the jurisdiction
in which the Mortgaged Property is located.

     (G) Certified, true copy of original power of attorney sent for recording.

B-1

 

     (ii) With respect to each Co-op Loan:

     (A)(I) The original Mortgage Note endorsed “Pay to the order of ___, without
recourse” and signed in the name of the last endorsee by an authorized officer.

     (B) The original loan security agreement entered into by the Mortgagor with respect to
such Co-op Loan.

     (C) Original Form UCC-1 and any continuation statements with evidence of filing thereon
entered into by the Mortgagor with respect to such Co-op Loan or if the original of such
document has not been returned from the applicable public recording office, a true certified
copy of the document sent for recording.

     (D) Form UCC-3 (or copy thereof) by the applicable Mortgage Loan Seller or its agent
assigning the security interest covered by such Form UCC-1 to “The Bank of New York as
trustee” or to blank, together with all Forms UCC-3 (or copies thereof) showing a complete
chain of assignment from the originator of the related Co-op Loan to the Seller, with
evidence of recording thereon.

     (E) Stock certificate representing the stock allocated to the related dwelling unit in
the related residential cooperative housing corporation and pledged by the related Mortgagor
to the originator of such Co-op Loan with a stock power in blank attached.

     (F) Original proprietary lease.

     (G) Original assignment of proprietary lease, to the Trustee or to blank, and all
intervening assignments thereof.

     (H) Original recognition agreement of the interests of the mortgagee with respect to
the Co-op Loan by the residential cooperative housing corporation, the stock of which was
pledged by the related Mortgagor to the originator of such Co-op Loan.

     (I) Originals of any assumption, consolidation or modification agreements relating to
any of the items specified in (A) through (F) above with respect to such Co-op Loan.

     (J) Certified true copy of power of attorney sent for recording.

B-2

 

EXHIBIT C

FORM OF CLASS A CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE PAYING AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”).

[FOR POOL 1 CERTIFICATES ONLY] [UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE
OF THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE DEPOSITOR AND THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING FOR,
ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY PLAN SUBJECT
TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR (B) THE
TRANSFEREE’S ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE.]

THIS CERTIFICATE IS PAYABLE SOLELY FROM THE ASSETS OF THE TRUST FUND, AND DOES NOT REPRESENT
AN OBLIGATION OF OR INTEREST IN CHASE MORTGAGE FINANCE CORPORATION (THE “DEPOSITOR”), JPMORGAN
CHASE BANK, N.A. (THE “SERVICER”) OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES.
NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE
LOANS ARE GUARANTEED OR INSURED BY THE DEPOSITOR, THE SERVICER, THE TRUSTEE OR BY ANY OF THEIR
AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OR NOTIONAL AMOUNT OF
THIS CERTIFICATE WILL BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW. ANYONE ACQUIRING

C-1

 

THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE OR NOTIONAL AMOUNT, AS APPLICABLE, BY
INQUIRY OF THE PAYING AGENT.

THIS CERTIFICATE DOES NOT PURPORT TO SUMMARIZE THE POOLING AND SERVICING AGREEMENT (THE
“AGREEMENT”) AND REFERENCE IS MADE TO THE AGREEMENT FOR THE INTERESTS, RIGHTS AND LIMITATIONS OF
RIGHTS, BENEFITS, OBLIGATIONS AND DUTIES EVIDENCED THEREBY, AND THE RIGHTS, DUTIES AND IMMUNITIES
OF THE TRUSTEE AND THE PAYING AGENT.

TO THE EXTENT NOT DEFINED HEREIN, THE CAPITALIZED TERMS USED HEREIN HAVE THE MEANINGS ASSIGNED IN
THE AGREEMENT.

C-2

 

CLASS [ ]-A[ ] CERTIFICATE

	 	 	 
	Number: 07-M1-[ ]-A[ ]-1

	 	Original Denomination:
	 

	 	$
	 
	 	 
	Cut-off Date: July 1, 2007

	 	Final Scheduled
	 

	 	Distribution Date:
	 
	 	 
	Initial Distribution Date:

	 	Aggregate Original Principal
	August 27, 2007

	 	Balance or Notional Amount
	 

	 	of all Class [ ]-A[ ] Certificates:
	 

	 	$
	 
	 	 
	Certificate Rate:

	 	CUSIP:
	 
	 	 
	Registered Owner:
	 	 

CHASEFLEX TRUST SERIES 2007-M1

MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE

     This certifies that the Registered Owner identified above is the registered owner of the
ownership interest (the “Ownership Interest”) evidenced by this Certificate in certain
distributions with respect to a pool of Mortgage Loans formed and sold by Chase Mortgage Finance
Corporation (the “Depositor”), and certain other property held in trust for the benefit of
Certificateholders (collectively, the “Trust Fund”), as described in the Agreement. The Mortgage
Loans are serviced by JPMorgan Chase Bank, N.A. (the “Servicer”) and are secured by liens on the
Mortgaged Properties. The Trust Fund was created pursuant to a Pooling and Servicing Agreement
(the “Agreement”), dated as of the Cut-off Date among the Depositor, the Servicer, the Custodian
and The Bank of New York Trust Company, N.A., as Paying Agent and Trustee.

     This Certificate is one of a duly authorized issue of Certificates, as designated above, and
is issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
Agreement such Holder is bound. Anyone acquiring this Certificate may ascertain its current
Principal Balance or Notional Amount, as applicable, by inquiry of the Paying Agent.

     Pursuant to the terms of the Agreement, the Paying Agent will distribute from funds in the
Certificate Account the amount specified in the Agreement on the 25th day of each month or, if such
25th day is not a Business Day, the Business Day immediately following (the “Distribution Date”),
commencing on the Initial Distribution Date.

     Distributions on this Certificate will be made in the manner specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be made after due notice
by the Paying Agent of the pendency of such distribution, and only upon presentation and

C-3

 

surrender of this Certificate at the office of the Paying Agent specified in such notice of
final distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New York, New York, or
at the office of its designated agent, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the registration of Certificates
and of transfers and exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such purpose, the Paying
Agent will, subject to the limitations set forth in the Agreement, authenticate and deliver, in the
name of the designated transferee or transferees, a Certificate of a like class and dated the date
of authentication by the Authenticating Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look solely to the
Trust Fund for payment hereunder and that neither the Trustee nor the Paying Agent is liable to the
Holders for any amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     No service charge will be made to the Holder for any transfer or exchange of the Certificate,
but the Paying Agent may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer or exchange of the Certificate. Prior
to due presentation of a Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate is registered as
the owner of such Certificate and the Percentage Interest in the Trust Fund evidenced thereby for
the purpose of receiving distributions pursuant to the Agreement and for all other purposes
whatsoever, and neither the Depositor, the Servicer, the Paying Agent nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the Servicer and the Trustee
in the manner specified in the Agreement.

     The Agreement provides that the Trust Fund will elect to be treated as one or more “real
estate mortgage investment conduits” for federal income tax purposes (each, a “REMIC”).

     The respective obligations and responsibilities of the Depositor, the Servicer (except the
duty to pay the Trustee’s fees and expenses and indemnification hereunder) and the Trustee shall
terminate in the manner specified in the Agreement; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James’s, living on the date hereof.

     Unless the certificate of authentication has been executed by the Authenticating Agent, by
manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose.

C-4

 

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly executed.

	 	 	 
	Dated: [     ]

	 	CHASE MORTGAGE FINANCE

CORPORATION
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	            Authorized Officer

C-5

 

	 	 	 
	Dated: [     ]

	 	CERTIFICATE OF AUTHENTICATION
	 
	 	 
	 

	 	This is one of the
Certificates referred to
in the within-mentioned
Agreement.
	 
	 	 
	 

	 	THE BANK OF NEW YORK TRUST 
COMPANY, N.A.
	 

	 	as Authenticating Agent
	 
	 

	 	By:
	 

	 	 

	 

	 	          Authorized Signatory

C-6

 

[FORM OF ASSIGNMENT]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

 

 

(Please Print or Type Name and Address of Assignee)

 

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

                                                                 
           
    Attorney to transfer the within Certificate on the books
kept for the registration thereof, with full power of substitution in the
premises. 

Dated:

	 	 	 
	(Signature guaranty)
	 	 
	 

	 	 

	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Certificate in every
particular, without alteration or enlargement
or any change whatever.

 

			
	(*	 	This information, which is voluntary, is being requested to ensure that the assignee will not be
subject to backup withholding under Section 3406 of the Code.)

C-7

 

EXHIBIT D

FORM OF CLASS M CERTIFICATE

THIS CLASS M CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN OTHER CLASSES OF
CERTIFICATES AS DESCRIBED IN THE AGREEMENT.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE PAYING AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”).

[FOR POOL 1 CERTIFICATES ONLY] [UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF
THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE DEPOSITOR AND THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING FOR,
ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY PLAN SUBJECT
TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR (B) THE
TRANSFEREE’S ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE].

THIS CERTIFICATE IS PAYABLE SOLELY FROM THE ASSETS OF THE TRUST FUND, AND DOES NOT REPRESENT AN
OBLIGATION OF OR INTEREST IN CHASE MORTGAGE FINANCE CORPORATION (THE “DEPOSITOR”), JPMORGAN CHASE
BANK, N.A. (THE “SERVICER”) OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER
THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS
ARE GUARANTEED OR INSURED BY THE DEPOSITOR, THE SERVICER, THE TRUSTEE OR BY ANY OF THEIR AFFILIATES
OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

 

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OR NOTIONAL AMOUNT OF
THIS CERTIFICATE WILL BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW. ANYONE ACQUIRING
THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE OR NOTIONAL AMOUNT, AS APPLICABLE, BY
INQUIRY OF THE PAYING AGENT.

THIS CERTIFICATE DOES NOT PURPORT TO SUMMARIZE THE POOLING AND SERVICING AGREEMENT (THE
“AGREEMENT”) AND REFERENCE IS MADE TO THE AGREEMENT FOR THE INTERESTS, RIGHTS AND LIMITATIONS OF
RIGHTS, BENEFITS, OBLIGATIONS AND DUTIES EVIDENCED THEREBY, AND THE RIGHTS, DUTIES AND IMMUNITIES
OF THE TRUSTEE AND THE PAYING AGENT.

TO THE EXTENT NOT DEFINED HEREIN, THE CAPITALIZED TERMS USED HEREIN HAVE THE MEANINGS ASSIGNED IN
THE AGREEMENT.

CLASS [ ]-M[ ] CERTIFICATE

	 	 	 
	Number: 07-M1-[ ]-M[ ]-1

	 	Original Denomination:
	 

	 	$
	 
	 	 
	Cut-off Date: July 1, 2007

	 	Final Scheduled
	 

	 	Distribution Date:
	 
	 	 
	Initial Distribution Date:

	 	Aggregate Original Principal
	August 27, 2007

	 	Balance or Notional Amount
	 

	 	of all Class [ ]-M[ ] Certificates:
	 

	 	$
	 
	 	 
	Certificate Rate:

	 	CUSIP:
	 
	 	 
	Registered Owner:
	 	 

CHASEFLEX TRUST SERIES 2007-M1

MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE

     This certifies that the Registered Owner identified above is the registered owner of the
ownership interest (the “Ownership Interest”) evidenced by this Certificate in certain
distributions with respect to a pool of Mortgage Loans formed and sold by Chase Mortgage Finance
Corporation (the “Depositor”), and certain other property held in trust for the benefit of
Certificateholders (collectively, the “Trust Fund”), as described in the Agreement. The Mortgage
Loans are serviced by JPMorgan Chase Bank, N.A. (the “Servicer”) and are secured by liens on the
Mortgaged Properties. The Trust Fund was created pursuant to a Pooling and Servicing Agreement
(the “Agreement”), dated as of the Cut-off Date among the Depositor, the Servicer, the Custodian
and The Bank of New York Trust Company, N.A., as Paying Agent and Trustee.

D-2

 

     This Certificate is one of a duly authorized issue of Certificates, as designated above, and
is issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
Agreement such Holder is bound. Anyone acquiring this Certificate may ascertain its current
Principal Balance or Notional Amount, as applicable, by inquiry of the Paying Agent.

     Pursuant to the terms of the Agreement, the Paying Agent will distribute from funds in the
Certificate Account the amount specified in the Agreement on the 25th day of each month or, if such
25th day is not a Business Day, the Business Day immediately following (the “Distribution Date”),
commencing on the Initial Distribution Date.

     Distributions on this Certificate will be made in the manner specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be made after due notice
by the Paying Agent of the pendency of such distribution, and only upon presentation and surrender
of this Certificate at the office of the Paying Agent specified in such notice of final
distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New York, New York, or
at the office of its designated agent, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the registration of Certificates
and of transfers and exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such purpose, the Paying
Agent will, subject to the limitations set forth in the Agreement, authenticate and deliver, in the
name of the designated transferee or transferees, a Certificate of a like class and dated the date
of authentication by the Authenticating Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look solely to the
Trust Fund for payment hereunder and that neither the Trustee nor the Paying Agent is liable to the
Holders for any amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     No service charge will be made to the Holder for any transfer or exchange of the Certificate,
but the Paying Agent may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer or exchange of the Certificate. Prior
to due presentation of a Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate is registered as
the owner of such Certificate and the Percentage Interest in the Trust Fund evidenced thereby for
the purpose of receiving distributions pursuant to the Agreement and for all other purposes
whatsoever, and neither the Depositor, the Servicer, the Paying Agent nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the Servicer and the Trustee
in the manner specified in the Agreement.

     The Agreement provides that the Trust Fund will elect to be treated as one or more “real
estate mortgage investment conduits” for federal income tax purposes (each, a “REMIC”).

D-3

 

     The respective obligations and responsibilities of the Depositor, the Servicer (except the
duty to pay the Trustee’s fees and expenses and indemnification hereunder) and the Trustee shall
terminate in the manner specified in the Agreement; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James’s, living on the date hereof.

     Unless the certificate of authentication has been executed by the Authenticating Agent, by
manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose.

D-4

 

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly executed.

	 	 	 
	Dated: [          ]

	 	CHASE MORTGAGE FINANCE
	 

	 	CORPORATION
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	          Authorized Officer

D-5

 

	 	 	 
	Dated: [          ]

	 	CERTIFICATE OF AUTHENTICATION
	 
	 	 
	 

	 	This is one of the
Certificates referred to
in the within-mentioned
Agreement.
	 
	 	 
	 

	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.
	 

	 	as Authenticating Agent
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	          Authorized Signatory

D-6

 

[FORM OF ASSIGNMENT]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

 

 

(Please Print or Type Name and Address of Assignee)

 

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

   
                                                                    
 
        Attorney to transfer the within Certificate on the books
kept for the registration thereof, with full power of substitution in the
premises.

	 	 	 
	Dated:
	 	 
	 
	 	 
	 
	 	 
	(Signature guaranty)
	 	 
	 

	 	 

	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Certificate in every
particular, without alteration or enlargement
or any change whatever.

 

			
	(*	 	This information, which is voluntary, is being requested to ensure that the assignee will not be
subject to backup withholding under Section 3406 of the Code.)

D-7

 

EXHIBIT E

FORM OF CLASS B CERTIFICATE

THIS CLASS B CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN OTHER CLASSES OF
CERTIFICATES AS DESCRIBED IN THE AGREEMENT.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE PAYING AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”).

[FOR POOL 1 CERTIFICATES ONLY] [UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF
THIS CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE CERTIFICATE, SHALL
REPRESENT) TO THE DEPOSITOR AND THE TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT, AND IS NOT ACTING FOR,
ON BEHALF OF OR WITH ANY ASSETS OF, ANY EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR ANY PLAN SUBJECT
TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR (B) THE
TRANSFEREE’S ACQUISITION AND HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE].

[FOR POOL 2 CERTIFICATES ONLY.] NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE DEPOSITOR
AND THE TRUSTEE SHALL HAVE RECEIVED (A) A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS
CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR A PLAN SUBJECT TO
ANY PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE
SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”)

F-1

 

(COLLECTIVELY, A “PLAN”), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE FOR, ON
BEHALF OF OR WITH ANY ASSETS OF ANY SUCH PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN
ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS AN
INSURANCE COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN “INSURANCE COMPANY GENERAL
ACCOUNT” AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60 AND
THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED AND EXEMPT UNDER SECTIONS I AND III OF
PTCE 95-60 OR (C) SOLELY IN THE CASE OF A DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL
SATISFACTORY TO THE DEPOSITOR AND THE TRUSTEE, AND UPON WHICH THE DEPOSITOR AND THE TRUSTEE SHALL
BE ENTITLED TO RELY, TO THE EFFECT THAT THE ACQUISITION AND HOLDING OF THIS CERTIFICATE BY THE
PROSPECTIVE TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER
ERISA OR THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE, THE DEPOSITOR OR
THE SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND
SERVICING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE DEPOSITOR
OR THE SERVICER.

THIS CERTIFICATE IS PAYABLE SOLELY FROM THE ASSETS OF THE TRUST FUND, AND DOES NOT REPRESENT AN
OBLIGATION OF OR INTEREST IN CHASE MORTGAGE FINANCE CORPORATION (THE “DEPOSITOR”), JPMORGAN CHASE
BANK, N.A. (THE “SERVICER”) OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER
THIS CERTIFICATE, THE REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS
ARE GUARANTEED OR INSURED BY THE DEPOSITOR, THE SERVICER, THE TRUSTEE OR BY ANY OF THEIR AFFILIATES
OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OR NOTIONAL AMOUNT OF
THIS CERTIFICATE WILL BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW. ANYONE ACQUIRING
THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE OR NOTIONAL AMOUNT, AS APPLICABLE, BY
INQUIRY OF THE PAYING AGENT.

THIS CERTIFICATE DOES NOT PURPORT TO SUMMARIZE THE POOLING AND SERVICING AGREEMENT (THE
“AGREEMENT”) AND REFERENCE IS MADE TO THE AGREEMENT FOR THE INTERESTS, RIGHTS AND LIMITATIONS OF
RIGHTS, BENEFITS, OBLIGATIONS AND DUTIES EVIDENCED THEREBY, AND THE RIGHTS, DUTIES AND IMMUNITIES
OF THE TRUSTEE AND THE PAYING AGENT.

TO THE EXTENT NOT DEFINED HEREIN, THE CAPITALIZED TERMS USED HEREIN HAVE THE MEANINGS ASSIGNED IN
THE AGREEMENT.

E-2

 

CLASS [ ]-B[ ] CERTIFICATE

	 	 	 
	Number: 07-M1-[ ]-B[ ]-1

	 	Original Denomination:
	 

	 	$
	 
	 	 
	Cut-off Date: July 1, 2007

	 	Final Scheduled
	 

	 	Distribution Date:
	 
	 	 
	Initial Distribution Date:

	 	Aggregate Original Principal
	August 27, 2007

	 	Balance or Notional Amount
	 

	 	of all Class [ ]-B[ ] Certificates:
	 

	 	$
	 
	 	 
	Certificate Rate:

	 	CUSIP:
	 
	 	 
	Registered Owner:
	 	 

E-3

 

CHASEFLEX TRUST SERIES 2007-M1

MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE

     This certifies that the Registered Owner identified above is the registered owner of the
ownership interest (the “Ownership Interest”) evidenced by this Certificate in certain
distributions with respect to a pool of Mortgage Loans formed and sold by Chase Mortgage Finance
Corporation (the “Depositor”), and certain other property held in trust for the benefit of
Certificateholders (collectively, the “Trust Fund”), as described in the Agreement. The Mortgage
Loans are serviced by JPMorgan Chase Bank, N.A. (the “Servicer”) and are secured by liens on the
Mortgaged Properties. The Trust Fund was created pursuant to a Pooling and Servicing Agreement
(the “Agreement”), dated as of the Cut-off Date among the Depositor, the Servicer, the Custodian
and The Bank of New York Trust Company, N.A., as Paying Agent and Trustee.

     This Certificate is one of a duly authorized issue of Certificates, as designated above, and
is issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
Agreement such Holder is bound. Anyone acquiring this Certificate may ascertain its current
Principal Balance or Notional Amount, as applicable, by inquiry of the Paying Agent.

     Pursuant to the terms of the Agreement, the Paying Agent will distribute from funds in the
Certificate Account the amount specified in the Agreement on the 25th day of each month or, if such
25th day is not a Business Day, the Business Day immediately following (the “Distribution Date”),
commencing on the Initial Distribution Date.

     Distributions on this Certificate will be made in the manner specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be made after due notice
by the Paying Agent of the pendency of such distribution, and only upon presentation and surrender
of this Certificate at the office of the Paying Agent specified in such notice of final
distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New York, New York, or
at the office of its designated agent, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the registration of Certificates
and of transfers and exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such purpose, the Paying
Agent will, subject to the limitations set forth in the Agreement, authenticate and deliver, in the
name of the designated transferee or transferees, a Certificate of a like class and dated the date
of authentication by the Authenticating Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look solely to the
Trust Fund for payment hereunder and that neither the Trustee nor the Paying Agent is liable to the
Holders for any amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

E-4

 

     No service charge will be made to the Holder for any transfer or exchange of the Certificate,
but the Paying Agent may require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer or exchange of the
Certificate. Prior to due presentation of a Certificate for registration of transfer, the
Depositor, the Servicer, the Paying Agent and the Trustee may treat the Person in whose name any
Certificate is registered as the owner of such Certificate and the Percentage Interest in the Trust
Fund evidenced thereby for the purpose of receiving distributions pursuant to the Agreement and for
all other purposes whatsoever, and neither the Depositor, the Servicer, the Paying Agent nor the
Trustee will be affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the Servicer and the Trustee
in the manner specified in the Agreement.

     The Agreement provides that the Trust Fund will elect to be treated as one or more “real
estate mortgage investment conduits” for federal income tax purposes (each, a “REMIC”).

     The respective obligations and responsibilities of the Depositor, the Servicer (except the
duty to pay the Trustee’s fees and expenses and indemnification hereunder) and the Trustee shall
terminate in the manner specified in the Agreement; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James’s, living on the date hereof.

     Unless the certificate of authentication has been executed by the Authenticating Agent, by
manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose.

E-5

 

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly executed.

	 	 	 
	Dated: [          ]

	 	CHASE MORTGAGE FINANCE

CORPORATION
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	          Authorized Officer

E-6

 

	 	 	 
	Dated: [          ]

	 	CERTIFICATE OF AUTHENTICATION
	 
	 	 
	 

	 	This is one of the
Certificates referred to
in the within-mentioned
Agreement.
	 
	 	 
	 

	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.
	 

	 	as Authenticating Agent
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	          Authorized Signatory

E-7

 

[FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

 

 

(Please Print or Type Name and Address of Assignee)

 

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

                                                                    
    
        Attorney to transfer the within Certificate on the books
kept for the registration thereof, with full power of substitution in the
premises.

Dated:

(Signature guaranty)

	 	 	 
	 

	 	 
	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Certificate in every
particular, without alteration or enlargement
or any change whatever.

 

			
	(*	 	This information, which is voluntary, is being requested to ensure that the assignee will not be
subject to backup withholding under Section 3406 of the Code.)

E-8

 

EXHIBIT E-1

FORM OF CLASS CE CERTIFICATE

THIS CLASS [CE] CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A CERTIFICATES AND THE
CLASS M CERTIFICATES AND THE CLASS B CERTIFICATES AS DESCRIBED IN THE AGREEMENT.

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”).

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN CHASE MORTGAGE FINANCE
CORPORATION (THE “DEPOSITOR”), JPMORGAN CHASE BANK, N.A. (THE “SERVICER”) OR THE TRUSTEE REFERRED
TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC REGULAR INTEREST
REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE DEPOSITOR,
THE SERVICER, THE TRUSTEE OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

THIS CLASS [CE] CERTIFICATE HAS NOT AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD
OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER
APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4.02 OF THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE DEPOSITOR AND THE TRUSTEE SHALL HAVE
RECEIVED (A) A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR A PLAN SUBJECT TO ANY PROVISIONS UNDER ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE
FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”) (COLLECTIVELY, A “PLAN”), AND IS NOT
DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF OR WITH ANY ASSETS OF ANY SUCH
PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A
REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT IS ACQUIRING
THE CERTIFICATE WITH ASSETS OF AN “INSURANCE COMPANY GENERAL ACCOUNT” AS DEFINED IN SECTION V(E) OF
PROHIBITED TRANSACTION CLASS EXEMPTION

E-1-1 

 

(“PTCE”) 95-60 AND THE ACQUISITION AND HOLDING OF THE
CERTIFICATE ARE
COVERED AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A DEFINITIVE
CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE DEPOSITOR AND THE TRUSTEE, AND UPON WHICH
THE DEPOSITOR AND THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE ACQUISITION AND
HOLDING OF THIS CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN A
NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT
SUBJECT THE TRUSTEE, THE DEPOSITOR OR THE SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE
UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING AGREEMENT, WHICH OPINION OF COUNSEL SHALL
NOT BE AN EXPENSE OF THE TRUSTEE, THE DEPOSITOR OR THE SERVICER.

THIS CERTIFICATE DOES NOT PURPORT TO SUMMARIZE THE POOLING AND SERVICING AGREEMENT (THE
“AGREEMENT”) AND REFERENCE IS MADE TO THE AGREEMENT FOR THE INTERESTS, RIGHTS AND LIMITATIONS OF
RIGHTS, BENEFITS, OBLIGATIONS AND DUTIES EVIDENCED THEREBY, AND THE RIGHTS, DUTIES AND IMMUNITIES
OF THE TRUSTEE AND THE PAYING AGENT.

TO THE EXTENT NOT DEFINED HEREIN, THE CAPITALIZED TERMS USED HEREIN HAVE THE MEANINGS ASSIGNED IN
THE AGREEMENT.

CLASS CE CERTIFICATE

	 	 	 
	Number: 07-M1-[ ]-CE-1

	 	Original Denomination:

$[ 0.00]1
	 
	 	 
	Cut-off Date: July 1, 2007

	 	Final Scheduled

Distribution Date: [     ]
	 
	 	 
	First Distribution Date:

August 27, 2007

	 	Initial Notional Amount

of all Class CE

Certificates: $[ 0.00]
	 
	 	 
	 

	 	CUSIP: [     ]

Registered Owner: J.P. Morgan Securities Inc.

CHASEFLEX TRUST SERIES 2007-M1

MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE

     This certifies that the Registered Owner identified above is the registered owner of the
ownership interest (the “Ownership Interest”) evidenced by this Certificate in certain
distributions with respect to a pool of Mortgage Loans formed and sold by Chase Mortgage

 

			
	1	 	The Class [     ]-CE Certificates will not have a
principal balance, but will be entitled to receive net monthly excess
cashflow on the pool [     ] mortgage loans.

E-1-2 

 

Finance
Corporation (the “Depositor”), and certain other property held in trust for the benefit of
Certificateholders (collectively, the “Trust Fund”), as described in the Agreement. The
Mortgage Loans are serviced by JPMorgan Chase Bank, N.A. (the “Servicer”) and are secured by
liens on the Mortgaged Properties. The Trust Fund was created pursuant to a Pooling and Servicing
Agreement (the “Agreement”), dated as of the Cut-off Date among the Depositor, the Servicer, the
Custodian and The Bank of New York Trust Company, N.A., as Paying Agent and Trustee.

     This Certificate is one of a duly authorized issue of Certificates, as designated above, and
is issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
Agreement such Holder is bound. Anyone acquiring this Certificate may ascertain its current
Principal Balance or Notional Amount, as applicable, by inquiry of the Paying Agent.

     Pursuant to the terms of the Agreement, the Paying Agent will distribute from funds in the
Certificate Account the amount specified in the Agreement on the 25th day of each month or, if such
25th day is not a Business Day, the Business Day immediately following (the “Distribution Date”),
commencing on the Initial Distribution Date.

     Distributions on this Certificate will be made in the manner specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be made after due notice
by the Paying Agent of the pendency of such distribution, and only upon presentation and surrender
of this Certificate at the office of the Paying Agent specified in such notice of final
distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New York, New York, or
at the office of its designated agent, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the registration of Certificates
and of transfers and exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such purpose, the Paying
Agent will, subject to the limitations set forth in the Agreement, authenticate and deliver, in the
name of the designated transferee or transferees, a Certificate of a like class and dated the date
of authentication by the Authenticating Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look solely to the
Trust Fund for payment hereunder and that neither the Trustee nor the Paying Agent is liable to the
Holders for any amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     No service charge will be made to the Holder for any transfer or exchange of the Certificate,
but the Paying Agent may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer or exchange of the Certificate. Prior
to due presentation of a Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate is registered as
the owner of such Certificate and the Percentage Interest in the Trust Fund evidenced thereby for
the purpose of receiving distributions pursuant to the Agreement and for all other purposes
whatsoever, and neither the Depositor, the Servicer, the Paying Agent nor the Trustee will be
affected by notice to the contrary.

E-1-3 

 

     The Agreement may be amended from time to time by the Depositor, the Servicer and the Trustee
in the manner specified in the Agreement.

     The Agreement provides that the Trust Fund will elect to be treated as one or more “real
estate mortgage investment conduits” for federal income tax purposes (each, a “REMIC”).

     The respective obligations and responsibilities of the Depositor, the Servicer (except the
duty to pay the Trustee’s fees and expenses and indemnification hereunder) and the Trustee shall
terminate in the manner specified in the Agreement; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James’s, living on the date hereof.

     Unless the certificate of authentication has been executed by the Authenticating Agent, by
manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose.

E-1-4 

 

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly executed.

	 	 	 	 	 
	Dated:  [     ] 	CHASE MORTGAGE FINANCE CORPORATION

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

E-1-5 

 

	 	 	 	 	 

	 	 	 	 	 
	Dated:  [     ] 	CERTIFICATE OF AUTHENTICATION

This is one of the

Certificates referred to

in the within-mentioned

Agreement.

THE BANK OF NEW YORK TRUST COMPANY, N.A.

as Authenticating Agent

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

E-1-6 

 

	 	 	 	 	 

[FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

 

 

(Please Print or Type Name and Address of Assignee)

 

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

    
                                                                   
         Attorney to
transfer the within Certificate on the books kept for the registration thereof, with full power of substitution in the
premises.

Dated:

(Signature guaranty)

	 	 	 
	 

	 	 
	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Certificate in every
particular, without alteration or enlargement
or any change whatever.

 

			
	(*	 	This information, which is voluntary, is being requested to ensure that the assignee will not be
subject to backup withholding under Section 3406 of the Code.)

E-1-7 

 

EXHIBIT F

FORM OF CLASS A-R CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “RESIDUAL INTEREST” IN
MULTIPLE “REAL ESTATE MORTGAGE INVESTMENT CONDUITS,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”).

THIS CERTIFICATE IS PAYABLE SOLELY FROM THE ASSETS OF THE TRUST FUND, AND DOES NOT REPRESENT AN
OBLIGATION OF OR INTEREST IN CHASE MORTGAGE FINANCE CORPORATION (THE “DEPOSITOR”), JPMORGAN CHASE
BANK, N.A. (THE “SERVICER”) OR THE TRUSTEE REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER
THIS CERTIFICATE, THE REMIC RESIDUAL INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS
ARE GUARANTEED OR INSURED BY THE DEPOSITOR, THE SERVICER, THE TRUSTEE OR BY ANY OF THEIR AFFILIATES
OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE DEPOSITOR AND THE TRUSTEE SHALL HAVE
RECEIVED A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT THAT SUCH
TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN
SUBJECT TO ANY PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS
THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A
“PLAN”), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH
ANY ASSETS OF ANY SUCH PLAN.

TRANSFERABILITY OF THIS CERTIFICATE IS RESTRICTED UNDER THE PROVISIONS OF THE AGREEMENT.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY INQUIRY OF THE PAYING AGENT.

F-1 

 

CLASS A-R CERTIFICATE

	 	 	 
	Number: 07-M1-A-R-1

	 	Original Denomination:

$100.00
	 
	 	 
	Cut-off Date: July 1, 2007

	 	Final Scheduled

Distribution Date: [     ]
	 
	 	 
	Initial Distribution Date:

August 27, 2007

	 	Aggregate Original Principal

Balance of Class A-R

Certificate: $100.00
	 
	 	 
	Certificate Rate:

	 	CUSIP:
	 
	 	 
	Registered Owner:
	 	 

CHASEFLEX TRUST SERIES 2007-M1

MULTI-CLASS MORTGAGE PASS-THROUGH CERTIFICATE

     This certifies that the Registered Owner identified above is the registered owner of the
ownership interest (the “Ownership Interest”) evidenced by this Certificate in certain
distributions with respect to a pool of Mortgage Loans formed and sold by Chase Mortgage Finance
Corporation (the “Depositor”), and certain other property held in trust for the benefit of
Certificateholders (collectively, the “Trust Fund”), as described in the Agreement. The Mortgage
Loans are serviced by JPMorgan Chase Bank, N.A. (the “Servicer”) and are secured by liens on the
Mortgaged Properties. The Trust Fund was created pursuant to a Pooling and Servicing Agreement
(the “Agreement”), dated as of the Cut-off Date among the Depositor, the Servicer, the Custodian
and The Bank of New York Trust Company, N.A., as Paying Agent and Trustee.

     This Certificate is one of a duly authorized issue of Certificates, as designated above, and
is issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
Agreement such Holder is bound. Anyone acquiring this Certificate may ascertain its current
Principal Balance or Notional Amount, as applicable, by inquiry of the Paying Agent.

     Pursuant to the terms of the Agreement, the Paying Agent will distribute from funds in the
Certificate Account the amount specified in the Agreement on the 25th day of each month or, if such
25th day is not a Business Day, the Business Day immediately following (the “Distribution Date”),
commencing on the Initial Distribution Date.

     Distributions on this Certificate will be made in the manner specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be made after due notice
by the Paying Agent of the pendency of such distribution, and only upon presentation and

F-2 

 

surrender of this Certificate at the office of the Paying Agent specified in such notice of
final distribution.

     The Paying Agent will cause to be kept at its Agency & Trust Office in New York, New York, or
at the office of its designated agent, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Paying Agent will provide for the registration of Certificates
and of transfers and exchanges of Certificates. Upon surrender for registration of transfer of any
Certificate at any office or agency of the Paying Agent, maintained for such purpose, the Paying
Agent will, subject to the limitations set forth in the Agreement, authenticate and deliver, in the
name of the designated transferee or transferees, a Certificate of a like class and dated the date
of authentication by the Authenticating Agent.

     The Holder, by its acceptance of this Certificate, agrees that it will look solely to the
Trust Fund for payment hereunder and that neither the Trustee nor the Paying Agent is liable to the
Holders for any amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     No service charge will be made to the Holder for any transfer or exchange of the Certificate,
but the Paying Agent may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer or exchange of the Certificate. Prior
to due presentation of a Certificate for registration of transfer, the Depositor, the Servicer, the
Paying Agent and the Trustee may treat the Person in whose name any Certificate is registered as
the owner of such Certificate and the Percentage Interest in the Trust Fund evidenced thereby for
the purpose of receiving distributions pursuant to the Agreement and for all other purposes
whatsoever, and neither the Depositor, the Servicer, the Paying Agent nor the Trustee will be
affected by notice to the contrary.

     The Agreement may be amended from time to time by the Depositor, the Servicer and the Trustee
in the manner specified in the Agreement.

     The Agreement provides that the Trust Fund will elect to be treated as one or more “real
estate mortgage investment conduits” for federal income tax purposes (each, a “REMIC”).

     The respective obligations and responsibilities of the Depositor, the Servicer (except the
duty to pay the Trustee’s fees and expenses and indemnification hereunder) and the Trustee shall
terminate in the manner specified in the Agreement; provided, however, that in no event shall the
trust created by the Agreement continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James’s, living on the date hereof.

     Unless the certificate of authentication has been executed by the Authenticating Agent, by
manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose.

F-3 

 

     IN WITNESS WHEREOF, the Depositor has caused this Certificate to be duly executed.

	 	 	 	 	 
	Dated:  [     ] 	CHASE MORTGAGE FINANCE CORPORATION

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

F-4 

 

	 	 	 	 	 

	 	 	 	 	 
	Dated:  [     ] 	CERTIFICATE OF AUTHENTICATION

This is one of the

Certificates referred to

in the within-mentioned

Agreement.

THE BANK OF NEW YORK TRUST COMPANY, N.A.

as Authenticating Agent

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

F-5 

 

	 	 	 	 	 

[FORM OF ASSIGNMENT]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

 

 

(Please Print or Type Name and Address of Assignee)

 

the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

                                                                     
         
  Attorney to transfer the within Certificate on the books
kept for the registration thereof, with full power of substitution in the
premises.

Dated:

(Signature guaranty)

	 	 	 
	 

	 	 
	 

	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Certificate in every
particular, without alteration or enlargement
or any change whatever.

 

			
	(*	 	This information, which is voluntary, is being requested to ensure that the assignee will not be
subject to backup withholding under Section 3406 of the Code.)

F-6 

 

EXHIBIT G

FORM OF TRUSTEE CERTIFICATION

[DATE]

     The Bank of New York Trust Company, N.A., as trustee (the “Trustee”) under the Pooling and
Servicing Agreement dated as of July 1, 2007 (the “Agreement”) among Chase Mortgage Finance
Corporation (the “Company”), the Trustee, the Paying Agent and JPMorgan Chase Bank, N.A., regarding
ChaseFlex Trust Series 2007-M1, hereby certifies that, except as noted in the Exception Report:

     1. The Trustee or the Custodian on behalf of the Trustee took the Mortgage Notes and other
property in the Trust Fund in good faith for value and without notice or knowledge (i) of any
adverse claims, liens or encumbrances, (ii) that any Mortgage Note was overdue or had been
dishonored or subject to any security interest or other right or interest therein, or (iii) of any
defense against or claim to the Mortgage Notes or other property in the Trust Fund on the part of
any entity;

     2. The Trustee or the Custodian on behalf of the Trustee received actual possession of the
Mortgage Notes; and

     3. The Trustee or the Custodian on behalf of the Trustee took possession of the Mortgage Notes
in the ordinary course of its business.

     Capitalized words used herein shall have the respective meanings assigned to them in the
Agreement.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

G-1 

 

     IN WITNESS WHEREOF, the undersigned executed this Trustee’s Certificate as of the 26th day of
July, 2007.

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., 

as Trustee

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

G-2 

 

EXHIBIT H

FORM OF INVESTMENT LETTER

(Accredited Investor)

[DATE]

JPMorgan Chase Bank, N.A.

1111 Polaris Parkway

Columbus, Ohio 43240

JPMorgan Chase Bank, N.A.

Global Trust Services

Four New York Plaza

6th Floor

New York, New York 10004

J.P. Morgan Securities Inc.

270 Park Avenue, 7th Floor

New York, New York 10017

The Bank of New York Trust Company, N.A., as trustee

601 Travis, 16th Floor

Houston, TX 77002

Attn: Corporate Trust Services/CFLX 2007-M1

			
	          Re:	 	ChaseFlex Trust Series 2007-M1,

Multi-Class Mortgage Pass-Through Certificates, [Class [ ]-CE- ]

Ladies and Gentlemen:

                    
      (the “Purchaser”) intends to purchase from                                               
               (the
“Transferor”) $                     by original principal balance (the “Transferred Certificates”) of ChaseFlex
Trust Series 2007-M1, Multi-Class Mortgage Pass-Through Certificates [Class [ ]-CE- ] (the
“Certificates”), issued pursuant to a pooling and servicing agreement, dated as of July 1, 2007
(the “Pooling and Servicing Agreement”), among Chase Mortgage Finance Corporation (the
“Depositor”), JPMorgan Chase Bank, N.A. (“Chase”), as servicer and custodian, The Bank of New York
Trust Company, N.A., as paying agent and The Bank of New York Trust Company, N.A., as trustee (the
“Trustee”). [The Purchaser intends to register the Transferred Certificate in the name of
                                        , as nominee for                                   
      .] All terms used and not otherwise defined
herein shall have the meanings set forth in the Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Purchaser certifies, represents and warrants to, and covenants with, the
Depositor and the Trustee that:

H-1 

 

     1. The Purchaser understands that (a) the Certificates have not been registered or qualified
under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any
state, (b) neither the Depositor nor the Trustee is required, and neither of them intends, to so
register or qualify the Certificates, (c) the Certificates cannot be resold unless (i) they are
registered and qualified under the Securities Act and the applicable state securities laws or (ii)
an exemption from registration and qualification is available and (d) the Pooling and Servicing
Agreement contains restrictions regarding the transfer of the Certificates.

     2. The Certificates will bear a legend to the following effect:

THIS CLASS [CE] CERTIFICATE HAS NOT AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT
FROM REGISTRATION UNDER SUCH ACT OR UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 4.02 OF THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.

[THIS LEGEND WILL APPEAR ON THE CERTIFICATE ONLY IF SUCH CERTIFICATE IS AN ERISA
RESTRICTED CERTIFICATE.] NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE
DEPOSITOR SHALL HAVE RECEIVED (A) A REPRESENTATION LETTER FROM THE TRANSFEREE OF
THIS CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”), OR A PLAN SUBJECT TO ANY PROVISIONS UNDER ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY
SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”)
(COLLECTIVELY, A “PLAN”), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS
CERTIFICATE FOR, ON BEHALF OF OR WITH ANY ASSETS OF ANY SUCH PLAN, (B) IF THE
CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A
REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY
THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN “INSURANCE COMPANY GENERAL
ACCOUNT” AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION
(“PTCE”) 95-60 AND THE ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED AND
EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A
DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE DEPOSITOR, AND
UPON WHICH THE DEPOSITOR SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE
ACQUISITION AND HOLDING OF THIS CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL NOT
CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR THE CODE
OR A VIOLATION OF SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE, THE DEPOSITOR OR THE
SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE
POOLING AND SERVICING AGREEMENT, WHICH

H-2 

 

OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE DEPOSITOR OR THE
SERVICER.

     3. The Purchaser is acquiring the Transferred Certificates for its own account [for investment
only]*/ and not with a view to or for sale or other transfer in connection with any distribution of
the Transferred Certificates in any manner that would violate the Securities Act or any applicable
state securities laws, subject, nevertheless, to the understanding that disposition of the
Purchaser’s property shall at all times be and remain within its control.

     4. The Purchaser (a) is a substantial, sophisticated institutional investor having such
knowledge and experience in financial and business matters, and in particular in such matters
related to securities similar to the Certificates, such that it is capable of evaluating the merits
and risks of investment in the Certificates, (b) is able to bear the economic risks of such an
investment and (c) is an “accredited investor” within the meaning of Rule 501(a) promulgated
pursuant to the Securities Act.

     5. The Purchaser will not nor has it authorized nor will it authorize any Person to (a) offer,
pledge, sell, dispose of or otherwise transfer any Certificate, any interest in any Certificate or
any other similar security to any Person in any manner, (b) solicit any offer to buy or to accept a
pledge, disposition or other transfer of any Certificate, any interest in any Certificate or any
other similar security from any person in any manner, (c) otherwise approach or negotiate with
respect to any Certificate, any interest in any Certificate or any other similar security with any
person in any manner, (d) make any general solicitation by means of general advertising or in any
other manner, or (e) take any other action, that would constitute a distribution of any Certificate
under the Securities Act or the Investment Company Act of 1940, as amended (the “1940 Act”), that
would render the disposition of any Certificate a violation of Section 5 of the Securities Act or
any state securities law, or that would require registration or qualification pursuant thereto.
Neither the Purchaser nor anyone acting on its behalf has offered the Certificates for sale or made
any general solicitation by means of general advertising or in any other manner with respect to the
Certificates. The Purchaser will not sell or otherwise transfer any of the Certificates, except in
compliance with the provisions of the Pooling and Servicing Agreement.

     6. If the Purchaser is acquiring ERISA Restricted Certificates, the Purchaser is not a Plan
and is not acquiring the ERISA Restricted Certificates for, on behalf of or with any assets of any
such Plan, except as may be permitted in accordance with Section 4.02(d) of the Pooling and
Servicing Agreement.

     7. Prior to the sale or transfer by the Purchaser of any of the Certificates, the Purchaser
will obtain from any subsequent purchaser substantially the same certifications, representations,
warranties and covenants contained in the foregoing paragraphs and in this letter or a letter
substantially in the form of Exhibit I to the Pooling and Servicing Agreement.

     8. The Purchaser agrees to indemnify the Trustee, the Servicer and the Depositor against any
liability that may result from any misrepresentation made herein.

     9. The Purchaser has received such information as Purchaser deems necessary in order to make
its investment decision.

 

			
	*/	 	Not required of a broker/dealer purchaser.

H-3 

 

	 	 	 	 	 
	 	

Very truly yours,

[PURCHASER]

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

H-4 

 

EXHIBIT I

FORM OF RULE 144A INVESTMENT LETTER

(Qualified Institutional Buyer)

[DATE]

JPMorgan Chase Bank, N.A.

1111 Polaris Parkway

Columbus, Ohio 43240

JPMorgan Chase Bank, N.A.

Global Trust Services

Four New York Plaza

6th Floor

New York, New York 10004

J.P. Morgan Securities Inc.

270 Park Avenue, 7th Floor

New York, New York 10017

The Bank of New York Trust Company, N.A., as trustee

601 Travis, 16th Floor

Houston, TX 77002

Attn: Corporate Trust Services/CFLX 2007-M1

			
	           Re:	 	ChaseFlex Trust Series 2007-M1,

Multi-Class Mortgage Pass-Through Certificates, [Class [ ]-CE- ]

Ladies and Gentlemen:

                          (the “Purchaser”) intends to purchase from                                     
                         (the
“Transferor”) $___by original principal balance (the “Transferred Certificates”) of ChaseFlex
Trust Series 2007-M1, Multi-Class Mortgage Pass-Through Certificates [Class [ ]-CE-] (the
“Certificates”), issued pursuant to a pooling and servicing agreement, dated as of July 1, 2007
(the “Pooling and Servicing Agreement”), among Chase Mortgage Finance Corporation (the
“Depositor”), JPMorgan Chase Bank, N.A. (“Chase”), as servicer (the “Servicer”) and custodian, The
Bank of New York Trust Company, N.A., as paying agent and The Bank of New York Trust Company, N.A.,
as trustee (the “Trustee”). [The Purchaser intends to register the Transferred Certificate in the
name of                                         , as nominee for                                  
       .] All terms used and not otherwise
defined herein shall have the meanings set forth in the Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Purchaser certifies, represents and warrants to, and covenants with, the
Depositor and the Trustee that:

I-1 

 

In connection with our acquisition of the above Transferred Certificates we certify that (a) we
understand that the Certificates are not being registered under the Securities Act of 1933, as
amended (the “Act”), or any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable of evaluating the
merits and risks of investments in the Certificates, (c) we have had the opportunity to ask
questions of and receive answers from the Depositor concerning the purchase of the Transferred
Certificates and all matters relating thereto or any additional information deemed necessary to our
decision to purchase the Transferred Certificates, (d) solely with respect to an ERISA Restricted
Certificate, we (A) are not an employee benefit plan within the meaning of Title I of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), a plan subject to Section 4975 of the
Internal Revenue Code of 1986, as amended (the “Code”) or a plan subject to any provisions under
any federal, state, local, non-U.S. or other laws or regulations that are substantively similar to
the foregoing provisions of ERISA or the Code (“Similar Law”) (collectively, a “Plan”), and is not
directly or indirectly acquiring the Certificate for, on behalf of or with any assets of any such
Plan, (B) if the Certificate has been the subject of an ERISA-Qualifying Underwriting, are an
insurance company that is acquiring the Certificate with assets of an “insurance company general
account” as defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”),
and the acquisition and holding of the Certificate are covered and exempt under Sections I and III
of PTCE 95-60, or (C) solely in the case of a Definitive Certificate, will deliver herewith an
Opinion of Counsel satisfactory to the Depositor and the Trustee, and upon which the Depositor and
the Trustee shall be entitled to rely, to the effect that the acquisition and holding of this
Certificate by the prospective transferee will not constitute or result in a nonexempt prohibited
transaction under ERISA or the Code or a violation of Similar Law and will not subject the Trustee,
the Depositor or the Servicer to any obligation in addition to those undertaken by such entities in
the Pooling and Servicing Agreement, which Opinion of Counsel shall not be an expense of the
Trustee, the Depositor or the Servicer,(e) we have not, nor has anyone acting on our behalf
offered, transferred, pledged, sold or otherwise disposed of the Certificates, any interest in the
Certificates or any other similar security to, or solicited any offer to buy or accept a transfer,
pledge or other disposition of the Certificates, any interest in the Certificates or any other
similar security from, or otherwise approached or negotiated with respect to the Certificates, any
interest in the Certificates or any other similar security with, any person in any manner, or made
any general solicitation by means of general advertising or in any other manner, or taken any other
action, that would constitute a distribution of the Certificates under the Securities Act or that
would render the disposition of the Certificates a violation of Section 5 of the Securities Act or
require registration pursuant thereto, nor will act, nor has authorized or will authorize any
person to act, in such manner with respect to the Certificates, (f) we are a “qualified
institutional buyer” as that term is defined in Rule 144A under the Securities Act and have
completed one of the forms of certification to that effect attached hereto as Annex 1 or Annex 2.
We are aware that the sale of the Transferred Certificates to us
is being made in reliance on Rule
144A. We are acquiring the Transferred Certificates for our own account or for resale pursuant to
Rule 144A and further understand that such Certificates may be resold, pledged or transferred only
(i) to a person reasonably believed by us, based upon certifications of such purchaser or
information we have in our possession, to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another
exemption from registration under the Securities Act. We have received such information as we deem
necessary in order to make our investment decision.

I-2 

 

     We agree to indemnify the Trustee, the Servicer and the Depositor against any liability that
may result from any misrepresentation made herein.

	 	 	 	 	 
	 	Very truly yours,

[PURCHASER]

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

I-3 

 

ANNEX 1

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

     The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule
144A Transferee Certificate to which this certification relates with respect to the Certificates
described therein:

     1. As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice
President or other executive officer of the Buyer.

     2. In connection with the purchases by the Buyer, the Buyer is a “qualified institutional
buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as amended (“Rule
144A”) because (i) the Buyer owned and/or invested on a discretionary basis $___*/ in
securities (except for the excluded securities referred to below) as of the end of the Buyer’s most
recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Buyer
satisfies the criteria in the category marked below.

	 	___	 	Corporation, etc. The Buyer is a corporation (other
than a bank, savings and loan association or similar institution),
Massachusetts or similar business trust, partnership, or charitable
organization described in Section 501(c)(3) of the Internal Revenue Code of
1986, as amended.
	 
	 	___	 	Bank. The Buyer (a) is a national bank or banking
institution organized under the laws of any State, territory or the District of
Columbia, the business of which is substantially confined to banking and is
supervised by Federal, State or territorial banking commission or similar
official or is a foreign bank or equivalent institution, and (b) has an audited
net worth of at least $25,000,000 as demonstrated in its latest annual
financial statements, a copy of which is attached hereto.
	 
	 	___	 	Savings and Loan. The Buyer (a) is a savings and loan
association, building and loan association, cooperative bank, homestead
association or similar institution, which is supervised and examined by a State
or Federal authority having supervision over such institution or is a foreign
savings and loan association or equivalent institution and (b) has an audited
net worth of at least $25,000,000 as demonstrated in its latest annual
financial statements, a copy of which is attached hereto.
	 
	 	___	 	Broker-dealer. The Buyer is a dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as amended.

 

			
	*	 	Buyer must own and/or invest on a
discretionary basis at least $100,000,000 in securities unless Buyer is a
dealer, and, in that case, Buyer must own and/or invest on a discretionary
basis at least $10,000,000 in securities.

I-4

 

	 	___	 	Insurance Company. The Buyer is an insurance company
whose primary and predominant business activity is the writing of insurance or
the reinsuring of risks underwritten by insurance companies and which is
subject to supervision by the insurance commissioner or a similar official or
agency of the State, territory or the District of Columbia.
	 
	 	___	 	State or Local Plan. The Buyer is a plan established
and maintained by a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the benefit of
its employees.
	 
	 	___	 	ERISA Plan. The Buyer is an employee benefit plan
within the meaning of Title I of the Employee Retirement Income Security Act of
1974, as amended.
	 
	 	___	 	Investment Advisor. The Buyer is an investment advisor
registered under the Investment Advisors Act of 1940, as amended.
	 
	 	___	 	Small Business Investment Company. Buyer is a small
business investment company licensed by the U.S. Small Business Administration
under Section 301(c) or (d) of the Small Business Investment Act of 1958, as
amended.
	 
	 	___	 	Business Development Company. Buyer is a business
development company as defined in Section 202(a)(22) of the Investment Advisors
Act of 1940, as amended.

     3. The term “securities” as used for purposes of the calculation of the dollar amount
in paragraph 2 excludes: (i) securities of issuers that are affiliated with the Buyer, (ii)
securities that are part of an unsold allotment to or subscription by the Buyer, if the Buyer is a
dealer, (iii) securities issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi) repurchase agreements,
(vii) securities owned but subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.

     4. For purposes of determining the aggregate amount of securities owned and/or invested on a
discretionary basis by the Buyer, the Buyer used the cost of such securities to the Buyer and did
not include any of the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those securities has been
published. If clause (ii) in the preceding sentence applies, the securities may be valued at
market. Further, in determining such aggregate amount, the Buyer may have included securities
owned by subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer
in its financial statements prepared in accordance with generally accepted accounting principles
and if the investments of such subsidiaries are managed under the Buyer’s direction. However, such
securities were not included if the Buyer is a majority-owned, consolidated subsidiary of another
enterprise and the Buyer is not itself a reporting company under the Securities Exchange Act of
1934, as amended.

     5. The Buyer acknowledges that it is familiar with Rule 144A and understands that the seller
to it and other parties related to the Certificates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer may be in reliance on Rule 144A.

     6. Until the date of purchase of the Rule 144A Securities, the Buyer will notify each of the
parties to which this certification is made of any changes in the information and conclusions
herein. Until such notice is given, the Buyer’s purchase of the Certificates will constitute a
reaffirmation of this certification as of the date of such purchase. In addition, if the Buyer is
a bank or savings and loan as

I-5

 

provided above, the Buyer agrees that it will furnish to such parties updated annual financial
statements promptly after they become available.

	 	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	 
 

	 	 

I-6

 

ANNEX 2

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees That are Registered Investment Companies]

     The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule
144A Transferee Certificate to which this certification relates with respect to the Certificates
described therein:

     1. As indicated below, the undersigned is the President, Chief Financial Officer or Senior
Vice President of the Buyer or, if the Buyer is a “qualified institutional buyer” as that term is
defined in Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”), because Buyer is
part of a Family of Investment Companies (as defined below), is such an officer of the Adviser.

     2. In connection with purchases by Buyer, the Buyer is a “qualified institutional buyer” as
defined in Rule 144A because (i) the Buyer is an investment company registered under the Investment
Company Act of 1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer’s Family of
Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer’s most recent fiscal year. For purposes of
determining the amount of securities owned by the Buyer or the Buyer’s Family of Investment
Companies, the cost of such securities was used, except (i) where the Buyer or the Buyer’s Family
of Investment Companies reports its securities holdings in its financial statements on the basis of
their market value, and (ii) no current information with respect to the cost of those securities
has been published. If clause (ii) in the preceding sentence applies, the securities may be valued
at market.

	 	___	 	The Buyer owned $___in securities (other than the
excluded securities referred to below) as of the end of the Buyer’s most recent
fiscal year (such amount being calculated in accordance with Rule 144A).
	 
	 	___	 	The Buyer is part of a Family of Investment Companies which
owned in the aggregate $___in securities (other than the excluded
securities referred to below) as of the end of the Buyer’s most recent fiscal
year (such amount being calculated in accordance with Rule 144A).

     3. The term “Family of Investment Companies” as used herein means two or more registered
investment companies (or series thereof) that have the same investment adviser or investment
advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or
because one investment adviser is a majority owned subsidiary of the other).

     4. The term “securities” as used herein does not include (i) securities of issuers that are
affiliated with the Buyer or are part of the Buyer’s Family of Investment Companies, (ii)
securities issued or guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit
notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi)
securities owned but subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

     5. The Buyer is familiar with Rule 144A and understands that the parties listed in the Rule
144A Transferee Certificate to which this certification relates are relying and will continue to
rely on the

I-7

 

statements made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer’s own account.

     6. Until the date of purchase of the Certificates, the undersigned will notify the parties
listed in the Rule 144A Transferee Certificate to which this certification relates of any changes
in the information and conclusions herein. Until such notice is given, the Buyer’s purchase of the
Certificates will constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

	 	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 	 	IF AN ADVISER:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Print Name of Buyer	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	 
 

	 	 

I-8

 

EXHIBIT J

FORM OF SPECIAL SERVICING AND COLLATERAL FUND AGREEMENT

     This SPECIAL SERVICING AND COLLATERAL FUND AGREEMENT (the “Agreement”) is made and entered
into as of [DATE], between JPMorgan Chase Bank, N.A., (the “Company”) and ___
(the “Purchaser”).

PRELIMINARY STATEMENT

     ___(the “Owner”) is the holder of the entire interest in ChaseFlex Trust
Series 2007-M1, Multi-Class Mortgage Pass-Through Certificates, Class [ ] (the “Class [ ]
Certificates”). The Class [ ] Certificates were issued pursuant to a Pooling and Servicing
Agreement dated as of July 1, 2007 (the “Pooling and Servicing Agreement”) among Chase Mortgage
Finance Corporation, (the “Company”), JPMorgan Chase Bank, N.A., as servicer (the “Servicer”),
JPMorgan Chase Bank, N.A., as custodian, (the “Custodian”), The Bank of New York Trust Company,
N.A., as paying agent (the “Paying Agent”) and The Bank of New York Trust Company, N.A., as trustee
(the “Trustee”).

     The Owner intends to resell all of the Class [ ] Certificates directly to the Purchaser on
or promptly after the date hereof.

     In connection with such sale, the parties hereto have agreed that the Company, as Servicer,
will engage in certain special servicing procedures relating to foreclosures for benefit of the
Purchaser, and that the Purchaser will deposit funds in a collateral fund to cover any losses
attributable to such procedures as well as all advances and costs in connection therewith, as set
forth herein.

     In consideration of the mutual agreements herein contained, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Purchaser agree to the following:

ARTICLE I

DEFINITIONS

     Section 1.01 Defined Terms.

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

     Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which
banking institutions in the State of New York are required or authorized by law or executive order
to be closed.

     Collateral Fund: The fund established and maintained pursuant to Section 3.01 hereof.

     Collateral Fund Permitted Investments: Either: (i) obligations of, or obligations
fully guaranteed as to principal and interest by, the United States, or any agency or
instrumentality thereof, provided such obligations are backed by the full faith and credit of the
United States, (ii) a money market fund rated in the highest rating category by a nationally
recognized rating agency selected by the Company, (iii) cash, (iv) mortgage pass-through
certificates issued or guaranteed by GNMA, FNMA or FHLMC, (v) commercial paper (including both
non-interest bearing discount obligations and interest bearing obligations payable on demand or on
a specified date), the issuer of which may be an affiliate of the

J-1

 

Company, having at the time of such investment a rating of at least Prime-1 by Moody’s
Investors Service, Inc. (“Moody’s”) or at least D-1 by Fitch Ratings and (vi) demand and time
deposits in, certificates of deposit of, any depository institution or trust company (which may be
an affiliate of the Company) incorporated under the laws of the United States of America or any
state thereof and subject to supervision and examination by federal and/or state banking
authorities, so long as at the time of such investment either (x) the long-term debt obligations of
such depository institution or trust company have a rating of at least Aa by Moody’s or at least AA
by Fitch Ratings or (y) the certificate of deposit or other unsecured short-term debt obligations
of such depository institution or trust company have a rating of at least A-1 by Fitch Ratings or
Prime-1 by Moody’s and, for each of the preceding clauses (i), (iv), (v) and (vi), the maturity
thereof shall be not later than the earlier to occur of (A) 30 days from the date of the related
investment and (B) the next succeeding Distribution Date.

     Commencement of Foreclosure: The first official action required under local law in
order to commence foreclosure proceedings or to schedule a trustee’s sale under a deed of trust,
including (i) in the case of a mortgage, any filing or service of process necessary to commence an
action to foreclose, or (ii) in the case of a deed of trust, the posting, publishing, filing or
delivery of a notice of sale, but not including in either case (x) any notice of default, notice of
intent to foreclose or sell or any other action prerequisite to the actions specified in (i) or
(ii) above and upon the consent of the Purchaser which will be deemed given unless expressly
withheld within two Business Days of notification, (y) the acceptance of a deed-in-lieu of
foreclosure (whether in connection with a sale of the related property or otherwise) or (z)
initiation and completion of a short pay-off.

     Current Appraisal: With respect to any Mortgage Loan as to which the Purchaser has
made an Election to Delay Foreclosure, an appraisal of the related Mortgaged Property (or
underlying Mortgaged Property, in the case of a Co-op Loan), obtained by the Purchaser at its
expense from an appraiser (which shall not be an affiliate of the Purchaser) acceptable to the
Company as nearly contemporaneously as practicable to the time of the Purchaser’s election,
prepared based on the Company’s customary requirements for such appraisals.

     Election to Delay Foreclosure: Any election by the Purchaser to delay the
Commencement of Foreclosure, made in accordance with Section 2.02(b).

     Election to Foreclose: Any election by the Purchaser to proceed with the Commencement
of Foreclosure, made in accordance with Section 2.03(a).

     Required Collateral Fund Balance: As of any date of determination, an amount equal to
the aggregate of all amounts previously required to be deposited in the Collateral Fund pursuant to
Section 2.02(d) (after adjustment for all withdrawals and deposits pursuant to Section 2.02(e)) and
Section 2.03(b) (after adjustment for all withdrawals and deposits pursuant to Section 2.03(c)) and
Section 3.03 to be reduced by all withdrawals therefrom pursuant to Section 2.02(g) and Section
2.03(d).

     Section 1.02. Definitions Incorporated by Reference.

     All capitalized terms not otherwise defined in this Agreement shall have the meanings assigned
in the Pooling and Servicing Agreement.

J-2

 

ARTICLE II

SPECIAL SERVICING PROCEDURES

     Section 2.01 Reports and Notices.

     1. In connection with the performance of its duties under the Pooling and Servicing Agreement
relating to the realization upon defaulted Mortgage Loans, the Company, as Servicer, shall provide
to the Purchaser the following notices and reports:

	 	(a)	 	Within five Business Days after each Distribution Date (or
included in or with the monthly statement to Certificateholders pursuant to the
Pooling and Servicing Agreement), the Company shall provide to the Purchaser a
report indicating for the Trust the number of Mortgage Loans that are (A)
thirty days, (B) sixty days, (C) ninety days or more delinquent or (D) in
foreclosure, and indicating for each such Mortgage Loan the outstanding
principal balance.
	 
	 	(b)	 	Prior to the Commencement of Foreclosure in connection with any
Mortgage Loan, the Company shall provide the Purchaser with a notice (sent by
telecopier) of such proposed and imminent foreclosure, stating the loan number
and the aggregate amount owing under the Mortgage Loan.

     2. If requested by the Purchaser, the Company shall make its servicing personnel available
(during their normal business hours) to respond to reasonable inquiries by the Purchaser in
connection with any Mortgage Loan identified in a report under subsection (a)(i)(B), (a)(i)(C),
(a)(i)(D) or (a)(ii) which has been given to the Purchaser; provided, that (1) the Company shall
only be required to provide information that is readily accessible to its servicing personnel and
is non-confidential and (2) the Company shall not be required to provide any written information
under this subsection.

     3. In addition to the foregoing, the Company shall provide to the Purchaser such information
as the Purchaser may reasonably request concerning each Mortgage Loan that is at least sixty days
delinquent and each Mortgage Loan which has become real estate owned, through the final liquidation
thereof; provided that the Company shall only be required to provide information that is readily
accessible to its servicing personnel and is non-confidential.

	 	(a)	 	With respect to all Mortgage Loans which are serviced at any
time by the Company through a Subservicer, the Company shall be entitled to
rely for all purposes hereunder, including for purposes of fulfilling its
reporting obligations under this Section 2.01 on the accuracy and completeness
of any information provided to it by the applicable Subservicer.

     Section 2.02 Purchaser’s Election to Delay Foreclosure Proceedings.

     1. The Purchaser directs the Company that in the event that the Company does not receive
written notice of the Purchaser’s election pursuant to subsection (b) below within 24 hours
(exclusive of any intervening non-Business Days) of transmission of the notice provided by
the Company under Section 2.01(a)(ii), subject to extension as set forth in Section 2.02(b), the
Company shall proceed with the Commencement of Foreclosure in respect of such Mortgage Loan in
accordance with its normal foreclosure policies without further notice to the Purchaser. Any
foreclosure that has been initiated may be discontinued (i) without notice to the Purchaser, if the
Mortgage Loan has been brought current or if a refinancing or prepayment occurs with respect to the
Mortgage Loan (including by means of a short payoff approved by the Company) (ii) with notice to
the Purchaser if the Company has reached the terms of a forbearance agreement with the borrower.
In such latter case the Company may complete such

J-3

 

forbearance agreement unless instructed otherwise by the Purchaser within one Business Day of
notification.

     2. In connection with any Mortgage Loan with respect to which a notice under Section
2.01(a)(ii) has been given to the Purchaser, the Purchaser may elect, for reasonable cause as
determined by the Purchaser, to instruct the Company to delay the Commencement of Foreclosure until
such term as the Purchaser determines that the Company may proceed with the Commencement of
Foreclosure. Such election must be evidenced by written notice received within 24 hours (exclusive
of any intervening non-Business Days) of transmission of the notice provided by the Company under
Section 2.01(a)(ii). Such 24 hour period shall be extended for no longer than an additional four
Business Days after the receipt of the information if the Purchaser requests additional information
related to such foreclosure; provided, however that the Purchaser will have at least one Business
Day to respond to any requested additional information. Any such additional information shall (i)
not be confidential in nature and (ii) be obtainable by the Company from existing reports,
certificates or statements or otherwise be readily accessible to its servicing personnel. The
Purchaser agrees that it has no right to deal with the Mortgagor. If the Company’s normal
foreclosure policy includes acceptance of a deed-in-lieu of foreclosure or short payoff, the
Purchaser will be notified and given one Business Day to respond.

     3. With respect to any Mortgage Loan as to which the Purchaser has made an Election to Delay
Foreclosure, the Purchaser shall obtain a Current Appraisal as soon as practicable, and shall
provide the Company with a copy of such Current Appraisal.

     4. Within two Business Days of making any Election to Delay Foreclosure, the Purchaser shall
remit by wire transfer to the Company, for deposit in the Collateral Fund, an amount, as calculated
by the Company, equal to the sum of (i) 125% of the greater of the outstanding Principal Balance of
the Mortgage Loan and the value shown in the Current Appraisal referred to in subsection (c) above
(or, if such Current Appraisal has not yet been obtained, the Company’s estimate thereof, in which
case the required deposit under this subsection shall be adjusted upon obtaining of such Current
Appraisal), and (ii) three months’ interest on the Mortgage Loan at the applicable Mortgage Rate.
If any Election to Delay Foreclosure extends for a period in excess of three months (such excess
period being referred to herein as the “Excess Period”), the Purchaser shall remit by wire transfer
in advance to the Company for deposit in the Collateral Fund the amount, as calculated by the
Company, equal to interest on the Mortgage Loan at the applicable Mortgage Rate for the Excess
Period. The terms of this Agreement shall no longer apply to the servicing of any Mortgage Loan
upon the failure of the Purchaser to deposit the above amounts relating to the Mortgage Loan within
two Business Days of the Election to Delay Foreclosure.

     5. With respect to any Mortgage Loan as to which the Purchaser has made an Election to Delay
Foreclosure, the Company may withdraw from the Collateral Fund from time to time amounts necessary
to reimburse the Company for all Advances and Liquidation Expenses thereafter made by the Company
as Servicer in accordance with the Pooling and Servicing Agreement. To the extent that the amount
of any such Liquidation Expense is determined by the Company based on estimated costs, and the
actual costs are subsequently determined to be higher, the Company may withdraw the additional
amount from the Collateral Fund. In the event that the Mortgage Loan is brought current by the
Mortgagor and the foreclosure action is discontinued, the amounts so withdrawn from the Collateral
Fund shall be redeposited therein as and to the extent that reimbursement therefor from amounts
paid by the Mortgagor is not prohibited pursuant to the Pooling and Servicing Agreement. Except as
provided in the preceding sentence, amounts withdrawn from the Collateral Fund to cover Advances
and Liquidation Expenses shall not be redeposited therein or otherwise reimbursed to the Purchaser.
If and when any such Mortgage Loan is brought current by the Mortgagor, all amounts remaining in
the Collateral Fund in respect of such

J-4

 

Mortgage Loan (after adjustment for all withdrawals and deposits pursuant to this subsection)
shall be released to the Purchaser.

     6. With respect to any Mortgage Loan as to which the Purchaser has made an Election to Delay
Foreclosure, the Company shall continue to service the Mortgage Loan in accordance with its
customary procedures (other than the delay in Commencement of Foreclosure as provided herein). If
and when the Purchaser shall notify the Company that it believes that it is appropriate to do so,
the Company shall proceed with the Commencement of Foreclosure. In any event, if the Mortgage Loan
is not brought current by the Mortgagor by the time the loan becomes 6 months delinquent, the
Purchaser’s election shall no longer be effective and at the Purchaser’s option, either (i) the
Purchaser shall purchase the Mortgage Loan from the Trust Fund at a purchase price equal to the
fair market value as shown on the Current Appraisal, to be paid by (x) applying any balance in the
Collateral Fund to such purchase price, and (y) to the extent of any deficiency, by wire transfer
of immediately available funds to the Company or Trustee; or (ii) the Company shall proceed with
the Commencement of Foreclosure.

     7. Upon the occurrence of a liquidation with respect to any Mortgage Loan as to which the
Purchaser made an Election to Delay Foreclosure and as to which the Company proceeded with the
Commencement of Foreclosure in accordance with subsection (f) above, the Company shall calculate
the amount, if any, by which the value shown on the Current Appraisal obtained under subsection (c)
exceeds the actual sales price obtained for the related Mortgaged Property (or stock allocated to a
dwelling unit in the case of a Co-op Loan) (net of Liquidation Expenses and accrued interest
related to the extended foreclosure period), and the Company shall withdraw the amount of such
excess from the Collateral Fund, shall remit the same to the Trust Fund and in its capacity as
Servicer shall apply such amount as additional Liquidation Proceeds pursuant to the Pooling and
Servicing Agreement. After making such withdrawal, all amounts remaining in the Collateral Fund in
respect of such Mortgage Loan (after adjustment for all withdrawals and deposits pursuant to
subsection (e)) shall be released to the Purchaser.

     Section 2.03 Purchaser’s Election to Commence Foreclosure Proceedings.

     1. In connection with any Mortgage Loan identified in a report under Section 2.01(a)(i)(B),
the Purchaser may elect, for reasonable cause as determined by the Purchaser, to instruct the
Company to proceed with the Commencement of Foreclosure as soon as practicable. Such election must
be evidenced by written notice received by the Company by 5:00 p.m., New York City time, on the
third Business Day following the delivery of such report under Section 2.01(a)(i).

     2. Within two Business Days of making any Election to Foreclose, the Purchaser shall remit to
the Company, for deposit in the Collateral Fund, an amount, as calculated by the Company, equal to
125% of the current Principal Balance of the Mortgage Loan and three months’ interest on the
Mortgage Loan at the applicable Mortgage Rate. If and when any such Mortgage Loan is brought
current by the Mortgagor, all amounts in the Collateral Fund in respect of such Mortgage Loan shall
be released to the Purchaser. The terms of this Agreement shall no longer apply to the servicing
of any Mortgage Loan upon the failure of the Purchaser to deposit the above amounts relating to the
Mortgage Loans within two Business Days at the Election to Foreclose.

     3. With respect to any Mortgage Loan as to which the Purchaser has made an Election to
Foreclose, the Company shall continue to service the Mortgage Loan in accordance with its customary
procedures (other than to proceed with the Commencement of Foreclosure as provided herein). In
connection therewith, the Company shall have the same rights to make withdrawals for Advances and
Liquidation Expenses from the Collateral Fund as are provided under Section 2.02(e), and the
Company shall make reimbursements thereto to the limited extent provided under such subsection.
The Company shall not be required to proceed with the Commencement of Foreclosure if (i) the same
is stayed as a result of the Mortgagor’s bankruptcy or is otherwise barred by applicable law, or to
the extent that all

J-5

 

legal conditions precedent thereto have not yet been complied with or (ii) the Company believes
there is a breach of representation or warranties by the Company, which may result in a repurchase
or substitution of such Mortgage Loan, or (iii) the Company reasonably believes the Mortgaged
Property (or underlying Mortgaged Property, in the case of a Co-op Loan) may be contaminated with
or affected by hazardous wastes or hazardous substances (and the Company supplies the Purchaser
with information supporting such belief). The Company will repurchase or substitute a Mortgage
Loan pursuant to the preceding clause (ii) within the time period specified in the Pooling and
Servicing Agreement. Any foreclosure that has been initiated may be discontinued (i) without
notice to the Purchaser if the Mortgage Loan has been brought current or if a refinancing or
prepayment occurs with respect to the Mortgage Loan (including by means of a short payoff approved
by the Company), or (ii) with notice to the Purchaser if the Company has reached the terms of a
forbearance agreement unless instructed otherwise by the Purchaser within two Business Days of
notification.

     4. Upon the occurrence of a liquidation with respect to any Mortgage Loan as to which the
Purchaser made an Election to Foreclose and as to which the Company proceeded with the Commencement
of Foreclosure in accordance with subsection (c) above, the Company shall calculate the amount, if
any, by which the Principal Balance of the Mortgage Loan at the time of liquidation (plus all
unreimbursed Advances and Liquidation Expenses in connection therewith other than those paid from
the Collateral Fund) exceeds the actual sales price obtained for the related Mortgaged Property (or
stock allocated to a dwelling unit in the case of a Co-op Loan), and the Company shall withdraw the
amount of such excess from the Collateral Fund, shall remit the same to the Trust Fund and in its
capacity as Servicer shall apply such amount as additional Liquidation Proceeds pursuant to the
Pooling and Servicing Agreement. After making such withdrawal, all amounts remaining in the
Collateral Fund (after adjustment for all withdrawals and deposits pursuant to subsection (c)) in
respect of such Mortgage Loan shall be released to the Purchaser.

     Section 2.04 Termination.

     1. With respect to all Mortgage Loans included in the Trust Fund, the Purchaser’s rights to
make any Election to Delay Foreclosure or any Election to Foreclose and the Company’s obligations
under Section 2.01 shall terminate (i) at such time as the Outstanding Certificate Principal
Balance of the Class B-5 Certificates has been reduced to zero, (ii) if the greater of (x) ___% (or
such lower or higher percentages that represents the Company’s actual historical loss experience
with respect to the Mortgage Loans in the related pool) of the aggregate principal balance of all
Mortgage Loans that are in foreclosure or are more than 90 days delinquent on a contractual basis
and REO properties or if the aggregate amount that the Company estimates will be required to be
withdrawn from the Collateral Fund with respect to Mortgage Loans as to which the Purchaser has
made an Election to Delay Foreclosure or an Election to Foreclose exceeds (z) the Outstanding
Certificate Principal Balance of the Class [ ] Certificates, or (iii) upon any transfer by the
Purchaser of any interest (other than the minority interest therein, but only if the transferee
provides written acknowledgment to the Company of the Purchaser’s right hereunder and that such
transferee will have no rights hereunder) in the Class [ ] Certificates (whether or not such
transfer is registered under the Pooling and Servicing Agreement), including any such transfer in
connection with a termination of the Trust Fund. Except as set forth above, this Agreement and the
respective rights, obligations and responsibilities of the Purchaser and the Company hereunder
shall terminate upon the later to occur of (i) the final liquidation of the last Mortgage Loan as
to which the Purchaser made any Election to Delay Foreclosure or any Election to Foreclose and the
withdrawal of all remaining amounts in the Collateral Fund as provided herein and (ii) ten (10)
Business Day’s notice.

     2. Purchaser’s rights pursuant to Section 2.02 or 2.03 of this Agreement shall terminate with
respect to a Mortgage loan as to which the Purchaser has exercised its rights under Section 2.02 or
2.03 hereof, upon Purchaser’s failure to deposit any amounts required pursuant to Section 2.02(d)
or 2.03(b).

J-6

 

     3. Neither the Servicer nor any of its directors, officers, employees or agents shall be under
any liability for any action taken or for refraining from the taking of any action in good faith
pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall
not protect the Servicer or any such Person against any liability which would otherwise be imposed
by reason of willful misfeasance, bad faith or gross negligence in the performance of duties or by
reason of reckless disregard of obligations and duties hereunder. The Servicer and any director,
officer, employee or agent thereof may rely in good faith on any document of any kind prima facie
properly executed and submitted by an Person respecting any matters arising hereunder.

ARTICLE III

COLLATERAL FUND; SECURITY INTEREST

     Section 3.01 Collateral Fund.

     1. Upon receipt from the Purchaser of the initial amount required to be deposited in the
Collateral Fund pursuant to Article 11, the Company shall establish and maintain with itself as a
segregated account on its books and records an account (the “Collateral Fund”), entitled “JPMorgan
Chase Bank, N.A., as Servicer, for the benefit of registered holders of ChaseFlex Trust Series
2007-M1, Multi-Class Mortgage Pass-Through Certificates, Series 2007-M1, Class [ ].” Amounts in
the Collateral Fund shall continue to be the property of the Purchaser, subject to the first
priority security interest granted hereunder for the benefit of the Certificate holders, until
withdrawn from the Collateral Fund pursuant to Section 2.02 or 2.03 hereof.

     2. Upon the termination of this Agreement and the liquidation of all Mortgage Loans as to
which the Purchaser has made any Election to Delay Foreclosure or any Election to Foreclose
pursuant to Section 2.04 hereof, the Company shall distribute to the Purchaser all amounts
remaining in the Collateral Fund together with any investment earnings thereon.

     3. The Collateral Fund shall be an “outside reserve fund” within the meaning of the REMIC
Provisions, beneficially owned by the Purchaser, who shall report all income, gain or loss with
respect thereto. Any amounts transferred from the Trust Fund to the Collateral Fund shall be
deemed to be transferred to the Purchaser, as beneficial owner of the Collateral Fund. In no event
shall the Purchaser (i) take or cause the Trustee or the Company to take any action that could
cause any REMIC established under the Trust Agreement to fail to qualify as a REMIC or cause the
imposition on any such REMIC of any “prohibited transaction” or “prohibited contribution” taxes or
(ii) cause the Trustee or the Company to fail to take any action necessary to maintain the status
of any such REMIC as a REMIC.

     Section 3.02. Collateral Fund Permitted Investments.

     1. The Company shall, at the written direction of the Purchaser invest the funds in the
Collateral Fund in Collateral Fund Permitted Investments. Such direction shall not be changed more
frequently than quarterly. In the absence of any direction, the Company shall select such
investments in accordance with the definition of Collateral Fund Permitted Investments in its
discretion.

     2. All income and gain realized from any investment as well as any interest earned on deposits
in the Collateral Fund (net of any losses on such investments) and any payments of principal made
in respect of any Collateral Fund Permitted Investment shall be deposited in the Collateral Fund
upon receipt. All costs and realized losses associated with the purchase and sale of Collateral
Fund Permitted Investments shall be borne by the Purchaser and the amount of net realized losses
shall be deposited by the Purchaser in the Collateral Fund. The Company shall periodically (but
not more frequently than monthly) distribute to the Purchaser upon request an amount of cash, to
the extent cash is

J-7

 

available therefor in the Collateral Fund, equal to the amount by which the balance of the
Collateral Fund, after giving effect to all other distributions to be made from the Collateral Fund
on such date, exceeds the Required Collateral Fund Balance. Any amounts so distributed shall be
released from the lien and security interest of this Agreement.

     Section 3.03 Grant of Security Interest.

     1. The Purchaser grants to the Company and the Trustee for the benefit of the
Certificateholders a security interest in and lien on all of the Purchaser’s right, title and
interest, whether now owned or hereafter acquired, in and to: (1) the Collateral Fund, (2) all
amounts deposited in the Collateral Fund and Collateral Fund Permitted Investments in which such
amounts are invested (and the distributions and proceeds of such investments) and (3) all cash and
non-cash proceeds of any of the foregoing, including proceeds of the voluntary or involuntary
conversion thereof (all of the foregoing collectively, the “Collateral”).

     2. The Purchaser acknowledges the lien on and security interest in the Collateral for the
benefit of the Certificateholders. The Purchaser shall take all actions requested by the Company
or the Trustee as may be reasonably necessary to perfect the security interest created under this
Agreement in the Collateral and cause it to be prior to all other security interests and liens,
including the execution and delivery to the Company for filing of appropriate financing statements
in accordance with applicable law. The Company shall file appropriate continuation statements, or
appoint an agent on its behalf to file such statements, in accordance with applicable law.

     Section 3.04 Collateral Shortfalls.

     In the event that amounts on deposit in the Collateral Fund at any time are insufficient to
cover any withdrawals therefrom that the Company or the Trustee is then entitled to make hereunder,
the Purchaser shall be obligated to pay such amounts to the Company or the Trustee immediately upon
demand. Such obligation shall constitute a general corporate obligation of the Purchaser.

ARTICLE IV

MISCELLANEOUS PROVISIONS

     Section 4.01 Amendment.

     This Agreement may be amended from time to time by the Company and the Purchaser by written
agreement signed by the Company and the Purchaser.

     Section 4.02 Counterparts.

     This Agreement may be executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

     Section 4.03 Governing Law.

     This Agreement shall be construed in accordance with the laws of the State of New York and the
obligations, rights and remedies of the parties hereunder shall be determined in accordance with
such laws.

     Section 4.04 Notices.

J-8

 

     All demands, notices and direction hereunder shall be in writing or by telecopy and shall be
deemed effective upon receipt to:

in the case of the Company,

JPMorgan Chase Bank, N.A.

1111 Polaris Parkway

Columbus, Ohio 43240

such other address as may hereafter be furnished in writing by the Company, or

in the case of the Purchaser, with respect to notices pursuant to Section 2.01,

	 	 	 	 	 	 	 
	 	 	[PURCHASER]	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[ADDRESS]	 	 
	 

	 	Attn:
	 	 
 

	 	 
	 

	 	Phone:
	 	 
 

	 	 
	 

	 	Fax:
	 	 
 

	 	 

with respect to all other notices pursuant to this Agreement,

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[ADDRESS]	 	 
	 

	 	Attn:
	 	 
 

	 	 
	 

	 	Phone:
	 	 
 

	 	 
	 

	 	Fax:
	 	 
 

	 	 

or such other address as may hereafter be furnished in writing by the Purchaser.

     Section 4.05 Severability of Provisions.

     If any one or more of the covenants, agreements, provisions or terms of this Agreement shall
be for any reason whatsoever, including regulatory, held invalid, then such covenants, agreements,
provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement.

     Section 4.06 Successors and Assigns.

     The provisions of this Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the parties hereto, and all such provisions shall inure to the
benefit of the Certificateholders; provided, however, that the rights under this Agreement cannot
be assigned by the Purchaser without the consent of the Company.

     Section 4.07 Article and Section Headings.

     The article and section headings herein are for convenience of reference only, and shall not
limit or otherwise affect the meaning hereof.

J-9

 

     Section 4.08 Confidentiality.

     The Purchaser agrees that all information supplied by or on behalf of the Company pursuant to
Sections 2.01 or 2.02, including individual account information, is the property of the Company and
the Purchaser agrees to hold such information confidential and not to disclose such information.

J-10

 

     IN WITNESS WHEREOF, the Company and the Purchaser have caused their names to be signed hereto
by their respective officers thereunto duly authorized, all as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 

J-11

 

EXHIBIT K

FORM OF CLASS A-R TRANSFEREE’S LETTER

CHASEFLEX TRUST SERIES 2007-M1

[DATE]

Chase Mortgage Finance Corporation

300 Tice Boulevard, Third Floor

Woodcliff Lake, New Jersey 07675

JPMorgan Chase Bank, N.A.

Global Trust Services

Four New York Plaza

6th Floor

New York, New York 10004

The Bank of New York Trust Company, N.A., as trustee

601 Travis, 16th Floor

Houston, TX 77002

Attn: Corporate Trust Services/CFLX 2007-M1

Ladies and Gentlemen:

     We propose to purchase Chase Mortgage Finance Corporation’s ChaseFlex Trust Series 2007-M1,
Multi-Class Mortgage Pass-Through Certificates, Class A-R, described in the Prospectus Supplement,
dated July 25, 2007 and Prospectus, dated July 13, 2007.

     1. We certify that (a) we are not a disqualified organization, (b) we are not purchasing such
Class A-R Certificate on behalf of a disqualified organization and (c) we are not an entity that
holds such Class A-R Certificate as nominee to facilitate the clearance and settlement of such
securities through electronic book-entry changes in accounts of participating organizations; for
this purpose the term “disqualified organization” means the United States, any state or political
subdivision thereof, any foreign government, any international organization, any agency or
instrumentality of any of the foregoing (except any entity treated as other than an instrumentality
of the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code of 1986, as
amended (the “Code”)), any organization (other than a cooperative described in Section 521 of the
Code) that is exempt from taxation under the Code (unless such organization is subject to tax on
excess inclusions) and any organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable for an excise tax
imposed upon transfers to disqualified organizations.

     2. We certify that we are not an employee benefit plan subject to Title I of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), a plan subject to Section 4975 of the
Internal Revenue Code of 1986, as amended (the “Code”) or a plan or arrangement subject to any
provisions under any federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to the

K-1

 

foregoing provisions of ERISA or the Code (collectively, a “Plan”), and are not directly or
indirectly acquiring the Class A-R Certificate for, on behalf of or with any assets of any such
Plan.

     3. We certify that (a) we have historically paid our debts as they became due, (b) we intend,
and believe that we will be able, to continue to pay our debts as they become due in the future,
(c) we understand that, as beneficial owner of the Class A-R Certificate, we may incur tax
liabilities in excess of any cash flows generated by the Class A-R Certificate, (d) we intend to
pay any taxes associated with holding the Class A-R Certificate as they become due and (e) we will
not cause income from the Class A-R Certificate to be attributable to a foreign permanent
establishment or fixed base (within the meaning of an applicable income tax treaty) of ours or
another U.S. taxpayer.

     4. We acknowledge that we will be the beneficial owner of the Class A-R Certificate and:*/

	 	 	 	___The Class A-R Certificate will be registered in our name.
	 
	 	 	 	___The Class A-R Certificate will be held in the name of our nominee,
___, which is not a disqualified organization.

     5. Unless Chase Mortgage Finance Corporation (“CMFC”) has consented to the transfer to us by
executing the form of Consent affixed hereto as Appendix B, we certify that we are a U.S. person;
for this purpose the term “U.S. Person” means a citizen or resident of the United States, a
corporation or partnership (unless, in the case of a partnership, Treasury regulations are adopted
that provide otherwise) created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, including an entity treated as a corporation or partnership
for federal income tax purposes, an estate whose income is subject to Unites States federal income
tax regardless of its source, or a trust if a court within the United States is able to exercise
primary supervision over the administration of such trust, and one or more such U.S. Persons have
the authority to control all substantial decisions of such trust, (or, to the extent provided in
applicable Treasury regulations, certain trusts in existence on August 20, 1996 which are eligible
to elect to be treated as U.S. Persons). We agree that any breach by us of this certification
shall render the transfer of any interest in the Class A-R Certificate to us absolutely null and
void and shall cause no rights in the Class A-R Certificate to vest in us.

     6. We agree that in the event that at some future time we wish to transfer any interest in the
Class A-R Certificate, we will transfer such interest in the Class A-R Certificate only (a) to a
transferee that (i) is not a disqualified organization and is not purchasing such interest in the
Class A-R Certificate on behalf of a disqualified organization, (ii) is a U.S. person and (iii) has
delivered to CMFC a letter in the form of this letter (including the affidavit appended hereto)
and, if requested by CMFC, an opinion of counsel (in a form acceptable to CMFC) that the proposed
transfer will not cause the interest in the Class A-R Certificate to be held by a disqualified
organization or a person who is not a U.S. person or (b) with the written consent of CMFC.

     7. We hereby designate JPMorgan Chase Bank, N.A. as our fiduciary to act as the tax matters
person for the Series 2007-M1 REMICs.

	 	 	 
	 

	 	Very truly yours,
	 
	 	 
	 

	 	[PURCHASER]

 

			
	*/	 	Check appropriate box and if necessary fill in the name of the Transferee’s nominee.

K-2

 

	 	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 

Accepted as of                     , 200_

CHASE MORTGAGE FINANCE CORPORATION

	 	 	 	 	 
	By:

	 	 
 

	 	 
	Name:

	 	 
 

	 	 
	Title:

	 	 
 

	 	 

K-3

 

APPENDIX A

Affidavit pursuant to (i) Section 860E(e)(4) of the Internal Revenue Code of 1986, as amended, and
(ii) certain provisions of the Pooling and Servicing Agreement

     Under penalties of perjury, the undersigned declares that the following is true:

	 	(1)	 	He or she is an officer of ___(the
“Transferee”),
	 
	 	(2)	 	the Transferee’s Employee Identification number is ___,
	 
	 	(3)	 	the Transferee is not a “disqualified organization” (as defined below),
has no plan or intention of becoming a disqualified organization, and is not
acquiring any of its interest in the ChaseFlex Trust Series 2007-M1,
Multi-Class Mortgage Pass-Through Certificates, Class A-R on behalf of a
disqualified organization or any other entity,
	 
	 	(4)	 	unless Chase Mortgage Finance Corporation (“CMFC”) has consented to the
transfer to the Transferee by executing the form of Consent affixed as Appendix
B to the Transferee’s Letter to which this Certificate is affixed as Appendix
A, the Transferee is a “U.S. Person” (as defined below),
	 
	 	(5)	 	that no purpose of the transfer is to avoid or impede the assessment or
collection of tax,
	 
	 	(6)	 	the Transferee has historically paid its debts as they became due,
	 
	 	(7)	 	the Transferee intends, and believes that it will be able, to continue
to pay its debts as they become due in the future,
	 
	 	(8)	 	the Transferee understands that, as beneficial owner of the Class A-R
Certificate, it may incur tax liabilities in excess of any cash flows generated
by the Class A-R Certificate,
	 
	 	(9)	 	the Transferee intends to pay any taxes associated with holding the
Class A-R Certificate as they become due,
	 
	 	(10)	 	the Transferee consents to any amendment of the Pooling and Servicing
Agreement that shall be deemed necessary by CMFC (upon advice of counsel) to
constitute a reasonable arrangement to ensure that the Class A-R Certificate
will not be owned directly or indirectly by a disqualified organization, and
	 
	 	(11)	 	IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
transfer is not a direct or indirect transfer of the Class A-R Certificate to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Transferee, and as to each of the residual
interests represented by the Class A-R Certificate, the present value of the
anticipated tax liabilities associated with holding such residual interest does
not exceed the sum of:

     the present value of any consideration given to the Transferee to acquire such residual
interest;

     the present value of the expected future distributions on such residual interest; and

     the present value of the anticipated tax savings associated with holding such residual
interest as the related REMIC generates losses.

K-4

 

	 	 	 	For purposes of this declaration, (i) the Transferee is assumed to pay tax at a rate
equal to the highest rate of tax specified in Section 11(b)(1) of the Code, but the
tax rate specified in Section 55(b)(1)(B) of the Code may be used in lieu of the
highest rate specified in Section 11(b)(1) of the Code if the Transferee has been
subject to the alternative minimum tax under Section 55 of the Code in the preceding
two years and will compute its taxable income in the current taxable year using the
alternative minimum tax rate, and (ii) present values are computed using a discount
rate equal to the Federal short-term rate prescribed by Section 1274(d) of the Code
for the month of the transfer and the compounding period used by the Transferee;]

			
	[Alternative(11)	 	(A) at the time of the transfer, and at the close of each of the
Transferee’s two fiscal years preceding the year of transfer, the Transferee’s gross assets
for financial reporting purposes exceed $100 million and its net assets for financial
reporting purposes exceed $10 million; and

	 	(B)	 	the Transferee is an eligible corporation as defined in Treasury regulation Section
1.860E-1(c)(6)(i) and has agreed in writing that any subsequent transfer of the
Class A-R Certificate will be to another eligible corporation in a transaction that
satisfies Treasury regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a direct or
indirect transfer to a foreign permanent establishment (within the meaning of an
applicable income tax treaty) of a domestic corporation.
	 
	 	 	 	For purposes of this declaration, (i) the gross assets and net assets of the
Transferee do not include any obligation of any related person (as defined in
Treasury regulation section 1.860E-1(c)(6)(ii)) or any other asset if a principal
purpose for holding or acquiring the other asset is to permit the Transferee to make
this declaration or to satisfy the requirements of Treasury regulation section
1.860E-1(c)(5)(i);]

[Alternative (11) Intentionally left blank;]

     (12) the Transferee represents that it will not cause income from the Class A-R Certificate to
be attributable to a foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Transferee or another U.S. taxpayer;

	 	 	 	For purpose of this affidavit, the term “disqualified organization” means the United
States, any state or political subdivision thereof, any foreign government, any
international organization, any agency or instrumentality of any of the foregoing
(except any entity treated as other than an instrumentality of the foregoing for
purposes of Section 168(h)(2)(D) of the Internal Revenue Code of 1986, as amended
(the “Code”)), any organization (other than a cooperative described in Section 521
of the Code) that is exempt from taxation under the Code (unless such organization
is subject to tax on excess inclusions) and any organization that is described in
Section 1381(a)(2)(C) of the Code and the term “U.S. Person” means a citizen or
resident of the United States, a corporation or partnership (unless, in the case of
a partnership, Treasury regulations are adopted that provide otherwise) created or
organized in or under the laws of the United States, any state thereof or the
District of Columbia, including an entity treated as a corporation or partnership
for federal income tax purposes, an estate whose income is subject to Unites States
federal income tax regardless of its source, or a trust if a court within the United
States is able to exercise primary supervision over the administration of such
trust, and one or more such U.S. Persons have the authority to control all
substantial decisions of

K-5

 

	 	 	 	such trust, (or, to the extent provided in applicable Treasury regulations, certain
trusts in existence on August 20, 1996 which are eligible to elect to be treated as
U.S. Persons).

K-6

 

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	 
	 
	By:

	 	 
 

	 	 
	 	 	 
	 	 	 

Address of Investor for receipt of distribution:

Address of Investor for receipt of tax information:

(Corporate Seal)

Attest:

                                        

                                         , Secretary

Personally appeared before me the above-named ___, known or proved to me to be the same
person who executed the foregoing instrument and to be the ___of the Investor, and
acknowledged to me that he executed the same as his free act and deed and the free act and deed of
the Investor.

Subscribed and sworn before me this                      day of                      , 200__.

Notary Public

County of                                         

State of                                         

My commission expires the                      day of                     

	 	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 

Dated:                                         

K-7

 

APPENDIX B

CONSENT

                                                            (Transferee)

                                                            

                                                            

                                                            

Ladies and Gentlemen:

     Chase Mortgage Finance Corporation (“CMFC”) hereby consents to the transfer to, and
registration in the name of, the Transferee (or, if applicable, registration in the name of such
Transferee’s nominee of the Multi-Class Mortgage Pass-Through Certificates, Series 2007-M1, Class
A-R described in the Transferee’s Letter to which this Consent is appended, notwithstanding CMFC’s
knowledge that the Transferee is not a U.S. Person (as defined in such Transferee’s Letter).

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	CHASE MORTGAGE FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 
 

	 	 	 	 	 	 	 	 

K-8

 

EXHIBIT K-1

FORM OF CLASS A-R TRANSFEROR’S LETTER

CHASEFLEX TRUST SERIES 2007-M1

[DATE]

JPMorgan Chase Bank, N.A.

Global Trust Services

Four New York Plaza

6th Floor

New York, New York 10004

The Bank of New York Trust Company, N.A., as trustee

601 Travis, 16th Floor

Houston, TX 77002

Attn: Corporate Trust Services/CMFT 2007-M1

     We propose to transfer to ___(the “Transferee”) Chase Mortgage Finance
Corporation’s ChaseFlex Trust Series 2007-M1, Multi-Class Mortgage Pass-Through Certificates, Class
A-R, described in the Prospectus Supplement, dated July 25, 2007 and Prospectus, dated July 13,
2007. We have reviewed the attached affidavit of the Transferee, and have no actual knowledge that
such affidavit is not true, and have no reason to believe that the Transferee has the intention to
impede the assessment or collection of any federal, state or local taxes legally required to be
paid with respect to the Class A-R Certificate referred to in the attached affidavit. In addition,
we have conducted a reasonable investigation at the time of the transfer and found that the
Transferee has historically paid its debts as they came due and we found no significant evidence to
indicate that the Transferee will not continue to pay its debts as they become due.

	 	 	 	 	 
	 

	 	Very truly yours,	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

K-1-1

 

EXHIBIT L

REQUEST FOR RELEASE OF DOCUMENTS

			
	To:	 	JPMorgan Chase Bank, N.A.

1040 Oliver Road

Monroe, LA 71201

	 	 	 	 	 
	 

	 	Re:
	 	Pooling and Servicing Agreement, dated as of July 1, 2007, by and
among Chase Mortgage Finance Corporation, JPMorgan Chase Bank, N.A. and
The Bank of New York Trust Company, N.A. relating to the issuance
of the ChaseFlex Trust Series 2007-M1, Multi-Class Mortgage
Pass-Through Certificates

     In connection with the administration of the Mortgage Loans held by you, as Custodian on
behalf of the Trustee, pursuant to the above-captioned Pooling and Servicing Agreement, we request
the release, and hereby acknowledge receipt, of the Mortgage File for the Mortgage Loan described
below, for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

	 	 	 	 	 	 	 
	___

	 	 	1.	 	 	Mortgage Paid in Full
	___

	 	 	2.	 	 	Foreclosure
	___

	 	 	3.	 	 	Substitution
	___

	 	 	4.	 	 	Other Liquidation
	___

	 	 	5.	 	 	Nonliquidation Reason:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 	 	(authorized signatory)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Issuer:
	 	 
 

	 	 
	 

	 	Address:
	 	 
 

	 	 
	 	 	 	 	 
	 	 	 	 	 
	 

	 	Date:
	 	 
 

	 	 

L-1

 

Custodian

JPMorgan Chase Bank, N.A.

Please acknowledge the execution of the above request by your signature and date below:

	 	 	 	 	 
	Signature

	 	 
 

Date
	 	 
	 
	 	 	 	 
	Documents returned to Custodian:
	 	 	 	 
	 
	 	 	 	 
	Custodian

	 	 
 

Date
	 	 

L-2

 

EXHIBIT M

FORM OF TRANSFEREE ERISA REPRESENTATION LETTER

[DATE]

The Bank of New York Trust Company, N.A.

601 Travis, 16th Floor

Houston, TX 77002

Attn: Corporate Trust Services/CFLX 2007-M1

Chase Mortgage Finance Corporation

300 Tice Boulevard, Third Floor

Woodcliff Lake, New Jersey 07675

	 	 	 	 	 
	 

	 	Re:
	 	ChaseFlex Trust Series 2007-M1,

Multi-Class Mortgage Pass-Through Certificates [Class
— ]

Ladies and Gentlemen:

     ___(the “Purchaser”) intends to purchase from ___(the
“Transferor”) $___by original principal balance (the “Transferred Certificate”) of ChaseFlex
Trust Series 2007-M1, Multi-Class Mortgage Pass-Through Certificates [Class -___] (the
“Certificates”), issued pursuant to a pooling and servicing agreement, dated as of July 1, 2007
(the “Pooling and Servicing Agreement”), among Chase Mortgage Finance Corporation (the
“Depositor”), JPMorgan Chase Bank, N.A. (“Chase”), as servicer (the “Servicer”) and Custodian, and
The Bank of New York Trust Company, N.A., as trustee (the “Trustee”) and paying agent. [The
Purchaser intends to register the Transferred Certificate in the name of ___, as
nominee for ___.] All terms used and not otherwise defined herein shall have the
meanings set forth in the Pooling and Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, we hereby certify, represent and warrant to, and covenant with, the Depositor that
we:

     I. Solely in the case of ERISA Restricted Certificates, (A) are not an employee benefit plan
within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), a plan subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”) or a plan subject to any provisions under any federal, state, local, non-U.S. or other laws
or regulations that are substantively similar to the foregoing provisions of ERISA or the Code
(“Similar Law”) (collectively, a “Plan”), and is not directly or indirectly acquiring the
Certificate for, on behalf of or with any assets of any such Plan, (B) if the Certificate has been
the subject of an ERISA-Qualifying Underwriting, are an insurance company that is acquiring the
Certificate with assets of an “insurance company general account” as defined in Section V(e) of
Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”), and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or (C) solely in the
case of a Definitive Certificate, will deliver herewith an Opinion of Counsel satisfactory to the
Depositor, and upon which the Depositor shall be entitled to rely, to the effect that the
acquisition and holding of this Certificate by the prospective transferee will not constitute or

M-1

 

result in a nonexempt prohibited transaction under ERISA or the Code or a violation of Similar Law
and will not subject the Trustee, the Depositor or the Servicer to any obligation in addition to
those undertaken by such entities in the Pooling and Servicing Agreement, which Opinion of Counsel
shall not be an expense of the Trustee, the Depositor or the Servicer.

     II. Solely in the case of Pool 1 Certificates (other than Class 1-CE Certificates), either (i)
are not, and are not acting for, on behalf of or with any assets of, an employee benefit plan or
other arrangement subject to Title I of ERISA or plan subject to Section 4975 of the Code, or (ii)
until the termination of the Swap Agreement, our acquisition and holding of the Certificate will
not constitute or result in a non-exempt prohibited transaction under Title I of ERISA or Section
4975 of the Code.

     We agree to indemnify the Trustee, the Servicer and the Depositor against any liability that
may result from any misrepresentation made herein.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[PURCHASER]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 

M-2

 

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[PURCHASER]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Name:
	 	 
 

	 	 
	 

	 	Title:
	 	 
 

	 	 

M-3

 

EXHIBIT N

[RESERVED]

N-1

 

EXHIBIT O

FORM OF OFFICER’S CERTIFICATE (PAYING AGENT)

[DATE]

Chase Mortgage Finance Corporation

300 Tice Boulevard, Third Floor

Woodcliff Lake, New Jersey 07675

     Reference is made to each pooling and servicing agreement listed on Exhibit A hereto (each, an
“Agreement”) in which The Bank of New York Trust Company, N.A. has been appointed the paying agent
(the “Paying Agent”). I, [     ], an [     ] of the Paying Agent, hereby certify to Chase
Mortgage Finance Corporation (the “Depositor”), and its officers, directors and affiliates, and
with the knowledge and intent that they will rely upon this certification that:

1. The Bank of New York Trust Company, N.A. has served as Paying agent for the Depositor
during the period of time from [     ] through [     ] and the following certifications and
statements of the Paying Agent set forth below relate solely to that period of time and for
no other periods.

2. I have reviewed (i) the annual report on Form 10-K (including the exhibits provided by
the Depositor to the Paying Agent for attachment thereto) for the fiscal year [     ] (the
“Annual Report”), (ii) all reports on Form 10-D containing distribution reports filed in
respect of periods included in the year covered by that annual report, relating to each of
the trusts created pursuant to each Agreement and (iii) all reports on Form 8-K (if any)
containing information provided by the Paying Agent, required to be filed in respect of the
period covered by the Annual Report (collectively with the related reports on Form 10-D and
Form 8-K (if any), the “Reports”);

3. Based on my knowledge, the information included in the Reports, taken as a whole, does
not contain any untrue statement of a material fact or omit to state a material fact
required by the respective pooling and servicing agreement to be included therein and
necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading as of the last day of the period covered by the
Reports; and

4. In compiling the distribution information, the Paying Agent has relied upon information
furnished to it by the Servicer under each pooling and servicing agreement. The Paying
Agent shall have no responsibility or liability for any inaccuracy in such reports resulting
from information so provided by the Servicer.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 

O-1

 

EXHIBIT P

LETTER OF REPRESENTATIONS

[INTENTIONALLY OMITTED]

P-1

 

EXHIBIT Q

[RESERVED]

Q-1

 

EXHIBIT R

SERVICING CRITERIA TO BE ADDRESSED

IN ASSESSMENT OF COMPLIANCE

(RMBS unless otherwise noted)

[TO BE UPDATED]

	 	 	 
	Definitions

	 	Key:
	Primary Servicer – transaction party having borrower contact

	 	         X - obligation

Custodian – safe keeper of certain pool assets

Trustee – fiduciary of the transaction

Paying Agent – agent of the Trustee

Where there are multiple checks for criteria the attesting party will identify in their
management assertion that they are attesting only to the portion of the distribution chain they are
responsible for in the related transaction agreements.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of	 	The Bank of	 	 
	 	 	 	 	 	 	New York	 	New York	 	 
	 	 	 	 	JPMorgan*	 	Trust	 	Trust	 	JPMorgan
	 	 	 	 	Chase Bank,	 	Company,	 	Company,	 	Chase Bank,
	Reg AB	 	 	 	N.A.	 	N.A. (Paying	 	N.A.	 	N.A.
	Reference	 	Servicing Criteria	 	(Servicer)	 	Agent)	 	(Trustee)	 	(Custodian)
	 

	 	General Servicing Considerations	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(1)(i)

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

	 	If any material servicing
activities are outsourced to
third parties, policies and
procedures are instituted to
monitor the third party’s
performance and compliance with
such servicing activities.
	 	X
	 	If applicable

for a transaction

participant
	 	 	 	If applicable

for a

transaction

participant
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the
transaction agreements to
maintain a back-up servicer for
the Pool Assets are maintained.
	 	X
	 	N/A
	 	N/A	 	 
	 
	1122(d)(1)(iv)     

	 	A fidelity bond and errors and
omissions policy is in effect on
the party participating in the
servicing function throughout
the reporting period in the
amount of coverage required by
and otherwise in accordance with
the terms of the transaction
agreements.
	 	X	 	 	 	 	 	 

R-1

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of	 	The Bank of	 	 
	 	 	 	 	 	 	New York	 	New York	 	 
	 	 	 	 	JPMorgan*	 	Trust	 	Trust	 	JPMorgan
	 	 	 	 	Chase Bank,	 	Company,	 	Company,	 	Chase Bank,
	Reg AB	 	 	 	N.A.	 	N.A. (Paying	 	N.A.	 	N.A.
	Reference	 	Servicing Criteria	 	(Servicer)	 	Agent)	 	(Trustee)	 	(Custodian)
	 

	 	Cash Collection and
Administration	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(2)(i)

	 	Payments on pool assets are
deposited into the appropriate
custodial bank accounts and
related bank clearing accounts
no more than two business days
following receipt, or such other
number of days specified in the
transaction agreements.
	 	X
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(2)(ii)

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

	 	Advances of funds or guarantees
regarding collections, cash
flows or distributions, and any
interest or other fees charged
for such advances, are made,
reviewed and approved as
specified in the transaction
agreements.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(2)(iv)

	 	The related accounts for the
transaction, such as cash
reserve accounts or accounts
established as a form of over
collateralization, are
separately maintained (e.g.,
with respect to commingling of
cash) as set forth in the
transaction agreements.
	 	X
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(2)(v)**

	 	Each custodial account is
maintained at a federally
insured depository institution
as set forth in the transaction
agreements. For purposes of this
criterion, “federally insured
depository institution” with
respect to a foreign financial
institution means a foreign
financial institution that meets
the requirements of Rule
13k-1(b)(1) of the Securities
Exchange Act.
	 	X
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded
so as to prevent unauthorized
access.
	 	X
	 	If applicable	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(2)(vii)      

	 	Reconciliations are prepared on
a monthly basis for all
asset-backed securities related
bank accounts, including
custodial accounts and related
bank clearing accounts. These
reconciliations are (A)
mathematically accurate; (B)
prepared within 30 calendar days
after the bank statement cutoff
date, or such other number of
days specified in the
transaction agreements; (C)
reviewed and approved by someone
other than the person who
prepared the reconciliation; and
(D) contain explanations for
reconciling items. These
reconciling items are resolved
within 90 calendar days of their
original identification, or such
other number of days specified
in the transaction agreements.
	 	X
	 	X	 	 	 	 

R-2

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of	 	The Bank of	 	 
	 	 	 	 	 	 	New York	 	New York	 	 
	 	 	 	 	JPMorgan*	 	Trust	 	Trust	 	JPMorgan
	 	 	 	 	Chase Bank,	 	Company,	 	Company,	 	Chase Bank,
	Reg AB	 	 	 	N.A.	 	N.A. (Paying	 	N.A.	 	N.A.
	Reference	 	Servicing Criteria	 	(Servicer)	 	Agent)	 	(Trustee)	 	(Custodian)
	 

	 	Investor Remittances and
Reporting	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(3)(i)

	 	Reports to investors, including
those to be filed with the
Commission, are maintained in
accordance with the transaction
agreements and applicable
Commission requirements.
Specifically, such reports (A)
are prepared in accordance with
timeframes and other terms set
forth in the transaction
agreements; (B) provide
information calculated in
accordance with the terms
specified in the transaction
agreements; (C) are filed with
the Commission as required by
its rules and regulations; and
(D) agree with investors’ or the
trustee’s records as to the
total unpaid principal balance
and number of Pool Assets
serviced by the Servicer.
	 	X
	 	X

(not

including (c))	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(3)(ii)

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

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

	 	Amounts remitted to investors
per the investor reports agree
with cancelled checks, or other
form of payment, or custodial
bank statements.
	 	X
	 	X	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Pool Asset Administration	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on pool
assets is maintained as required
by the transaction agreements or
related pool asset documents.
	 	X
	 	 	 	 	 	X
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(ii)

	 	Pool assets and related
documents are safeguarded as
required by the transaction
agreements
	 	X
	 	 	 	 	 	X

R-3

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of	 	The Bank of	 	 
	 	 	 	 	 	 	New York	 	New York	 	 
	 	 	 	 	JPMorgan*	 	Trust	 	Trust	 	JPMorgan
	 	 	 	 	Chase Bank,	 	Company,	 	Company,	 	Chase Bank,
	Reg AB	 	 	 	N.A.	 	N.A. (Paying	 	N.A.	 	N.A.
	Reference	 	Servicing Criteria	 	(Servicer)	 	Agent)	 	(Trustee)	 	(Custodian)
	1122(d)(4)(iii)     

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

	 	Payments on pool assets,
including any payoffs, made in
accordance with the related pool
asset documents are posted to
the Servicer’s obligor records
maintained no more than two
business days after receipt, or
such other number of days
specified in the transaction
agreements, and allocated to
principal, interest or other
items (e.g., escrow) in
accordance with the related pool
asset documents.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(v)

	 	The Servicer’s records regarding
the pool assets agree with the
Servicer’s records with respect
to an obligor’s unpaid principal
balance.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the
terms or status of an obligor’s
pool assets (e.g., loan
modifications or re-agings) are
made, reviewed and approved by
authorized personnel in
accordance with the transaction
agreements and related pool
asset documents.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(vii)

	 	Loss mitigation or recovery
actions (e.g., forbearance
plans, modifications and deeds
in lieu of foreclosure,
foreclosures and repossessions,
as applicable) are initiated,
conducted and concluded in
accordance with the timeframes
or other requirements
established by the transaction
agreements.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(viii)

	 	Records documenting collection
efforts are maintained during
the period a pool asset is
delinquent in accordance with
the transaction agreements. Such
records are maintained on at
least a monthly basis, or such
other period specified in the
transaction agreements, and
describe the entity’s activities
in monitoring delinquent pool
assets including, for example,
phone calls, letters and payment
rescheduling plans in cases
where delinquency is deemed
temporary (e.g., illness or
unemployment).
	 	X	 	 	 	 	 	 

R-4

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of	 	The Bank of	 	 
	 	 	 	 	 	 	New York	 	New York	 	 
	 	 	 	 	JPMorgan*	 	Trust	 	Trust	 	JPMorgan
	 	 	 	 	Chase Bank,	 	Company,	 	Company,	 	Chase Bank,
	Reg AB	 	 	 	N.A.	 	N.A. (Paying	 	N.A.	 	N.A.
	Reference	 	Servicing Criteria	 	(Servicer)	 	Agent)	 	(Trustee)	 	(Custodian)
	1122(d)(4)(ix)     

	 	Adjustments to interest rates or
rates of return for pool assets
with variable rates are computed
based on the related pool asset
documents.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(x)

	 	Regarding any funds held in
trust for an obligor (such as
escrow accounts): (A) such funds
are analyzed, in accordance with
the obligor’s pool asset
documents, on at least an annual
basis, or such other period
specified in the transaction
agreements; (B) interest on such
funds is paid, or credited, to
obligors in accordance with
applicable pool asset documents
and state laws; and (C) such
funds are returned to the
obligor within 30 calendar days
of full repayment of the related
pool assets, or such other
number of days specified in the
transaction agreements.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(xi)

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

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

	 	Disbursements made on behalf of
an obligor are posted within two
business days to the obligor’s
records maintained by the
servicer, or such other number
of days specified in the
transaction agreements.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and
uncollectible accounts are
recognized and recorded in
accordance with the transaction
agreements.
	 	X	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1122(d)(4)(xv)

	 	Any external enhancement or
other support, identified in
Item 1114(a)(1) through (3) or
Item 1115 of Regulation AB, is
maintained as set forth in the
transaction agreements.
	 	X	 	 	 	 	 	 

R-5

 

 

			
	*	 	Certain obligations will be satisfied by Chase Home Finance LLC as subservicer.

	 
	**	 	Subject to further interpretation by the SEC.

R-6

 

EXHIBIT S

FORM OF SARBANES-OXLEY CERTIFICATION

[DATE]

Chase Mortgage Finance Corporation

300 Tice Boulevard, Third Floor

Woodcliff Lake, New Jersey 07675

			
	Re:	 	ChaseFlex Trust Series 2007-M1,

Multi-Class Mortgage Pass-Through Certificates

I, [identify the certifying individual], certify that:

     I have reviewed the report on Form 10-K and all reports on Form 10-D required to be filed in
respect of the period covered by this report on Form 10-K of [identify the issuing entity] (the
“Exchange Act periodic reports”);

     1. Based on my knowledge, the Exchange Act periodic reports, taken as a whole, do not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

     2. Based on my knowledge, all of the distribution, servicing and other information required to
be provided under Form 10-D for the period covered by this report is included in the Exchange Act
periodic reports;

     3. [I am responsible for reviewing the activities performed by the servicer(s) and based on my
knowledge and the compliance review(s) conducted in preparing the servicer compliance statement(s)
required in this report under Item 1123 of Regulation AB, and except as disclosed in the Exchange
Act periodic reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the
servicing agreement(s); and]

     4. All of the reports on assessment of compliance with servicing criteria for ABS and their
related attestation reports on assessment of compliance with servicing criteria for asset-backed
securities required to be included in this report in accordance with Item 1122 of Regulation AB and
Exchange Act Rules 13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance described in such
reports have been disclosed in this report on Form 10-K.

     [In giving the certifications above, I have reasonably relied on information provided to me by the
following unaffiliated parties [name of servicer, sub-servicer, co-servicer, depositor or
trustee].]

	 	 	 	 	 
	     Date:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	[Signature]
	 

	 	 	 	[Title]

S-1

 

EXHIBIT T

FORM OF ITEM 1123 CERTIFICATION OF SERVICER

[DATE]

Chase Mortgage Finance Corporation

300 Tice Boulevard, Third Floor

Woodcliff Lake, New Jersey 07675

			
	Re:	 	ChaseFlex Trust Series 2007-M1,

Multi-Class Mortgage Pass-Through Certificates

I, [identify name of certifying individual], [title of certifying individual] of JPMorgan Chase
Bank, N.A. (the “Servicer”), hereby certify that:

(1) A review of the activities of the Servicer during the preceding calendar year and of the
performance of the Servicer under the Agreement has been made under my supervision; and

(2) To the best of my knowledge, based on such review, the Servicer has fulfilled all its
obligations under the Agreement in all material respects throughout such year or a portion
thereof[, or, if there has been a failure to fulfill any such obligation in any material respect, I
have specified below each such failure known to me and the nature and status thereof].

Date:

	 	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A.,

as Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

T-1

 

EXHIBIT U

FORM OF CLASS 2-AV1, CLASS 2-AV2 AND CLASS 2-AV3 YIELD MAINTENANCE

AGREEMENT

July 26, 2007

Rate Collar Transaction

ChaseFlex Trust 2007-M1

Attn:

Re: Interest Rate Transaction No: [ ]

Ladies and Gentlemen:

The purpose of this letter agreement is to set forth the terms and conditions of the rate collar
transaction (the “Interest Rate Transaction”) entered into between JPMorgan Chase Bank, N.A. (the
“Derivative Provider”) and The Bank of New York Trust Company, N.A., not in its individual
capacity, but solely as Paying Agent on behalf of ChaseFlex Trust 2007-M1 (the “Counterparty”) on
July 26, 2007. This agreement constitutes a “Confirmation” as referred to in and supplements, forms
part of, and is subject to, the ISDA Master Agreement between the parties hereto.

The particular Interest Rate Transaction to which this Confirmation relates is a Rate Collar
Transaction, the terms of which are set forth below.

The definitions and provisions contained in the [ ] ISDA Definitions, as published by the
International Swaps and Derivatives Association, Inc. are incorporated into this Confirmation. In
the event of any inconsistency between those definitions and provisions and this Confirmation, this
Confirmation will govern. The Interest Rate Transaction relates to the Class 2-AV1, Class 2-AV2 and
Class 2-AV3 Certificates issued pursuant to the Pooling and Servicing Agreement dated as of July 1,
2007 among Chase Mortgage Finance Corporation, as Depositor, The Bank of New York Trust Company,
N.A, as Trustee and Paying Agent and JPMorgan Chase Bank, N.A., as Servicer (the “Pooling and
Servicing Agreement”).

In consideration of the payment of the sum of USD $ [ ] (the “Premium”) by J.P. Morgan
Securities, Inc. on behalf of Chase Home Finance, LLC to the Derivative Provider on or about July
26, 2007 and in consideration of the promise by the Derivative Provider to make payments to the
Counterparty in accordance with Section 2 hereof, the parties hereto agree as follows

	1.	 	Definitions

	 	a.	 	“Ceiling Rate” means, with respect to any Calculation Period, the rate set forth as the
“Ceiling Rate” on the attached Schedule I.
	 
	 	b.	 	“Floor Rate” means, with respect to any Calculation Period, the rate set forth as the
“Strike Rate” on the attached Schedule I.

U-1

 

	 	c.	 	“Business Day” means any day which is both a New York Business Day and a London
Business Day.
	 
	 	d.	 	“Calculation Period” means, with respect to a Payment Date, the period, as set forth on
the attached Schedule I, from the Calculation Period Start Date to but excluding the
Calculation Period End Date, and including such Payment Date.
	 
	 	e.	 	“Designated Maturity” means 1 month(s).
	 
	 	f.	 	“Effective Date” means the first Calculation Period Start Date.
	 
	 	g.	 	“Floating Rate” means, with respect to a Payment Date, the rate determined by the
Derivative Provider to be (i) the per annum rate for deposits in U.S. dollars for a period
of the Designated Maturity which appears on the Telerate Page 3750 Screen as of 11:00 a.m.,
London time, on the day that is two London Business Days prior to the Reset Date of the
Calculation Period of such Payment Date (rounded upwards, if necessary, to the nearest
1/100,000 of 1%); (ii) if such rate does not appear on the Telerate Page 3750 Screen, the
Floating Rate shall be the arithmetic mean (rounded as aforesaid) of the offered quotations
obtained by the Derivative Provider from the Reference Banks for deposits in U.S. dollars
to leading banks in the London interbank market as of approximately 11:00 a.m., London
time, on the day that is two London Business Days prior to the Reset Date of the
Calculation Period of such Payment Date; or (iii) if fewer than two Reference Banks provide
the Derivative Provider with such quotations, the Floating Rate shall be the rate per annum
which the Derivative Provider determines to be the arithmetic mean (rounded as aforesaid)
of the offered quotations which leading banks in New York City selected by the Derivative
Provider are quoting in the New York interbank market on the Reset Date of the Calculation
Period of such Payment Date for deposits in U.S. dollars to the Reference Banks or, if
fewer than two such quotations are available, to leading European and Canadian Banks.
	 
	 	h.	 	“London Business Day” means any day on which banks are open for business in London and
on which dealings in deposits in U.S. dollars are transacted in the London interbank
market.
	 
	 	i.	 	“New York Business Day” means any day on which banks are not required or authorized by
law to close in New York City.
	 
	 	j.	 	“Notional Principal Amount” means, with respect to any Calculation Period, the notional
amount set forth in the attached Schedule I.
	 
	 	k.	 	“Payment Date” means the day that is two New York business days prior to each
Calculation Period End Date, provided that if such Payment Date is not a Business Day, such
Payment Date shall be the next preceding Business Day.
	 
	 	l.	 	“Reference Banks” means four major banks in the London interbank market selected by the
Derivative Provider.
	 
	 	m.	 	“Reset Date” means the first day of each Calculation Period.
	 
	 	n.	 	“Telerate Page 3750 Screen” means the display designated as “Page 3750” on the Dow
Jones Telerate Service (or such other page as may replace Page 3750 on that service or such
other

U-2

 

	 	 	 	service as may be nominated by the British Bankers’ Association as the information vendor
for the purpose of displaying British Bankers’ Association Interest Settlement Rates for
U.S. Dollar deposits).
	 
	 	o.	 	“Termination Date” means the last Calculation Period End Date.

	2.	 	Payments

	 	a.	 	The Derivative Provider agrees, subject to the payment to the Derivative Provider of
the Premium, to pay to the Counterparty, on each Payment Date on which the related Floating
Rate is determined to be greater than the Floor Rate and less than the Ceiling Rate, an
amount equal to the product of (x) the amount by which the Floating Rate exceeds the Floor
Rate with respect to the Calculation Period ending on or nearest such Payment Date, (y) the
Notional Principal Amount and (z) the actual number of days in that Calculation Period
divided by 360.
	 
	 	b.	 	All payments to the Derivative Provider shall be made as follows.
	 
	 	 	 	Payments in USD

JPMORGAN CHASE BANK NA 

JPMORGAN CHASE BANK NA
	 
	 	c.	 	All payments to the Counterparty shall be made as follows:

	 	 	     Wire Transfer:

	 	 	 	The Bank of New York

ABA:
	 
	 	 	 	REF: CFLX 2007-M1 Cap

Attn:

	3.	 	Notices. Any notices hereunder 1) shall be in writing and hand-delivered or sent by
first-class mail, postage prepaid, return receipt requested, and shall be addressed to the
intended recipient at its address set forth on the signature page hereof or at such other
address as such party shall have last specified by notice to the other party and 2) shall be
effective (a) if delivered by hand or sent by overnight courier, on the day it is delivered,
unless delivery is made after the close of business or on a day that is not a Business Day, in
which case such notice will be effective on the next Business Day, or (b) if sent by certified
or registered mail or the equivalent (return receipt requested), three Business Days after
dispatch.

	 	 	All notices and queries to the Derivative Provider should be sent to: 

     JPMorgan Chase Bank, N.A. Client Service Group

U-3

 

	 	 	 	Telephone:

Facsimile:

Please quote the JPMorgan deal number(s):

	 	 	All notices and queries to the Counterparty should be sent to:

Bank of New York Trust Company, N.A.
	 
	 	 	601 Travis 16th Floor

Houston, Texas 77002

	4.	 	Governing Law. This letter agreement shall be governed by and construed in
accordance with the laws of the State of New York.
	 
	5.	 	Assignments. Neither party shall have the right to assign its rights or obligations
under this letter agreement without the prior written consent of the other party.
	 
	6.	 	Set-off; Counterclaim. All payments under this letter agreement will be made without
set-off or counterclaim, except that each party will have the right to set-off, counterclaim
or withhold payment in respect of any default by the other party under this letter agreement
or under any other agreement between the parties.
	 
	7.	 	Each Party’s Reliance on its Own Judgment. Each party has entered into this Rate
Collar Transaction solely in reliance on its own judgment. Neither party has any fiduciary
obligation to the other party relating to this Rate Collar Transaction. In addition, neither
party has held itself out as advising, or has held out any of its employees or agents as
having the authority to advise, the other party as to whether or not the other party should
enter into this Rate Collar Transaction, any subsequent actions relating to this Rate Collar
Transaction or any other matters relating to this Rate Collar Transaction. Neither party
shall have any responsibility or liability whatsoever in respect of any advice of this nature
given, or views expressed, by it or any of such persons to the other party relating to this
Rate Collar Transaction, whether or not such advice is given or such views are expressed at
the request of the other party.
	 
	8.	 	Waiver of Right to Trial by Jury. Each party hereby irrevocably waives any and all
rights to trial by jury with respect to any legal proceeding arising out of or relating to
this letter agreement or the Rate Collar Transaction.
	 
	9.	 	Limitation of Liability. It is expressly understood and agreed by the parties hereto
that (a) this Rate Collar Transaction is executed and delivered by the Counterparty, not
individually or personally but solely as Paying Agent of the Trust, in the exercise of the
powers and authority conferred and vested in it under the Pooling and Servicing Agreement, (b)
each of the representations, undertakings and agreements herein made on the part of the Trust
is made and intended for the purpose of binding only the Trust (c) nothing herein shall be
construed as creating any liability on the Counterparty, individually or personally, to
perform any covenant either expressed or implied contained herein, all such liability, if any,
being expressly waived by the parties who are signatories to this letter agreement and by any
person claiming by, through or under such parties, and (d) under no circumstances shall the
Counterparty be personally liable for the payment of any indebtedness or expenses of the Trust
or be liable for the breach or failure of any obligation, representation, warranty or covenant
made or undertaken by the Trust under this Rate Collar Transaction.

U-4

 

	10.	 	Reporting. Counterparty agrees to deliver, promptly upon request by the Derivative
Provider, or with respect to any particular type of report or other document as to which the
Derivative Provider has previously made request to receive all reports or documents of that
type, promptly upon delivery or receipt of such report or document by the Counterparty, any
report or other document required to be delivered by or to the Counterparty under the terms of
the Pooling and Servicing Agreement, other than those required to be delivered directly by the
Counterparty to the Derivative Provider thereunder.
	 
	11.	 	Written confirmation. No later than each Reset Date, the Derivative Provider agrees
to deliver to the Counterparty a written confirmation containing the results of the
Calculations performed on each Reset Date and the amount which is to be paid to the
Counterparty on the next Payment Date.
	 
	12.	 	Compliance with Regulation AB.

	 	(i)	 	If at any time after the date hereof for so long as the Counterparty is required to
file periodic reports under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) with respect to the Certificates, in the reasonable determination made in good faith
of Chase Mortgage Finance Corporation the aggregate “significance percentage” (as defined
in Regulation AB (“Regulation AB”) under the Securities Act of 1933, as amended, and the
Exchange Act) of all derivative instruments (contemplated by Item 1115 of Regulation AB)
provided by the Derivative Provider and any of its affiliates to the Counterparty is at
least 10% but less than 20%, the Derivative Provider shall, subject to subparagraph (iii)
below, within five (5) Business Days following request therefor provide the financial
information required under Item 1115(b)(1) of Regulation AB for the Derivative Provider
(and for the group of affiliated entities, if applicable) (the “Item 1115(b)(1)
Information”). Any such Item 1115(b)(1) Information shall be in a form suitable for
conversion to the format required for filing by the Depositor with the Securities and
Exchange Commission via the Electronic Data Gathering and Retrieval System (EDGAR).
	 
	 	(ii)	 	If at any time after the date hereof for so long as the Counterparty is required to
file periodic reports under the Exchange Act with respect to the Certificates, in the
reasonable determination made in good faith of Chase Mortgage Finance Corporation, the
aggregate “significance percentage” of all derivative instruments (contemplated by Item
1115 of Regulation AB) provided by the Derivative Provider and any of its affiliates to the
Counterparty is at least 20%, the Derivative Provider shall, subject to subparagraph (iii)
below, within five (5) Business Days following request therefor provide the financial
information required under Item 1115(b)(2) of Regulation AB for the Derivative Provider
(and for the group of affiliated entities, if applicable) (the “Item 1115(b)(2)
Information”, and together with the Item 1115(b)(1) Information, the “Additional
Information”). Any such Item 1115(b)(2) Information shall be in a form suitable for
conversion to the format required for filing by the Depositor with the Securities and
Exchange Commission via the Electronic Data Gathering and Retrieval System (EDGAR). In
addition, any such Item 1115(b)(2) Information shall be accompanied by any necessary
auditor’s consents.
	 
	 	(iii)	 	If the Derivative Provider is unable to provide any such Additional Information if, as
and when required, the Derivative Provider shall, at its option, within ten (10) Business
Days following request therefor, (1) promptly post collateral satisfactory to Chase
Mortgage Finance Corporation in an amount which is reasonably determined in good faith to
be sufficient to reduce the aggregate “significance percentage” to (x) in the case of
subparagraph (A) above, below 10%, and (y) in the case of subparagraph (B) above, provided
the Derivative Provider is able to meet the requirements of subparagraph (A) above, below
20%, in each case pursuant to a credit support

U-5

 

	 	 	 	annex or similar agreement reasonably satisfactory to the Chase Mortgage Finance
Corporation, or (2) at the sole expense of the Derivative Provider, without any expense or
liability to the Counterparty, transfer or assign its obligations under this Agreement to a
substitute counterparty reasonably acceptable to the Counterparty that (x) is able to
provide such Additional Information if, as and when required, and (y) enters into an
agreement similar in form to this Agreement pursuant to which such substitute counterparty
agrees to provide the Additional Information if, as and when required.
	 
	 	(iv)	 	The Derivative Provider’s obligation to provide any such Additional Information shall
terminate beginning in any such year in which the Counterparty’s obligation to file
periodic reports under the Exchange Act has terminated.

	 	 	 	 	 
	JPMorgan Chase Bank, N.A.	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

ChaseFlex Trust 2007-M1

By: Bank of New York Trust Company, N.A, not in its individual capacity, but solely as Paying Agent
on behalf of ChaseFlex Trust 2007-M1

	 	 	Name:

Title:

U-6

 

EXHIBIT V

SCHEDULE I TO YIELD MAINTENANCE AGREEMENT

CLASS 2-AV1 YIELD MAINTENANCE AGREEMENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Scheduled	 	 	 	 
	Calculation Period	 	Calculation Period	 	Notional Amount	 	Cap Strike	 	Rate Cap
	Start Date	 	End Date	 	($)	 	Rate (%)	 	Ceiling (%)
	July 25, 2007
	 	August 25, 2007	 	 	136,689,000.00	 	 	 	N/A	 	 	 	N/A	 
	August 25, 2007
	 	September 25, 2007	 	 	132,684,408.75	 	 	 	6.337	 	 	 	11.50	 
	September 25, 2007
	 	October 25, 2007	 	 	128,237,403.95	 	 	 	6.553	 	 	 	11.50	 
	October 25, 2007
	 	November 25, 2007	 	 	123,355,443.48	 	 	 	6.337	 	 	 	11.50	 
	November 25, 2007
	 	December 25, 2007	 	 	118,047,124.07	 	 	 	6.553	 	 	 	11.50	 
	December 25, 2007
	 	January 25, 2008	 	 	112,322,521.20	 	 	 	6.337	 	 	 	11.50	 
	January 25, 2008
	 	February 25, 2008	 	 	106,193,330.51	 	 	 	6.337	 	 	 	11.50	 
	February 25, 2008
	 	March 25, 2008	 	 	99,672,404.35	 	 	 	6.785	 	 	 	11.50	 
	March 25, 2008
	 	April 25, 2008	 	 	92,775,022.39	 	 	 	6.337	 	 	 	11.50	 
	April 25, 2008
	 	May 25, 2008	 	 	85,519,445.42	 	 	 	6.554	 	 	 	11.50	 
	May 25, 2008
	 	June 25, 2008	 	 	77,931,223.85	 	 	 	6.337	 	 	 	11.50	 
	June 25, 2008
	 	July 25, 2008	 	 	70,101,938.46	 	 	 	6.554	 	 	 	11.50	 
	July 25, 2008
	 	August 25, 2008	 	 	62,317,058.67	 	 	 	6.338	 	 	 	11.50	 
	August 25, 2008
	 	September 25, 2008	 	 	54,677,760.99	 	 	 	6.338	 	 	 	11.50	 
	September 25, 2008
	 	October 25, 2008	 	 	47,181,335.59	 	 	 	6.554	 	 	 	11.50	 
	October 25, 2008
	 	November 25, 2008	 	 	39,825,122.95	 	 	 	6.338	 	 	 	11.50	 
	November 25, 2008
	 	December 25, 2008	 	 	32,606,512.89	 	 	 	6.554	 	 	 	11.50	 
	December 25, 2008
	 	January 25, 2009	 	 	25,522,943.65	 	 	 	6.338	 	 	 	11.50	 
	January 25, 2009
	 	February 25, 2009	 	 	18,571,901.03	 	 	 	6.338	 	 	 	11.50	 
	February 25, 2009
	 	March 25, 2009	 	 	11,750,917.48	 	 	 	7.033	 	 	 	11.50	 
	March 25, 2009
	 	April 25, 2009	 	 	5,057,571.24	 	 	 	6.338	 	 	 	11.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Thereafter
	 	 	 	 	0.00	 	 	 	N/A	 	 	 	N/A	 

V-1

 

CLASS 2-AV2 YIELD MAINTENANCE AGREEMENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Scheduled	 	 	 	 
	Calculation Period	 	Calculation Period	 	Notional Amount	 	Cap Strike	 	Rate Cap
	Start Date	 	End Date	 	($)	 	Rate (%)	 	Ceiling (%)
	July 25, 2007
	 	August 25, 2007	 	 	71,622,000.00	 	 	 	N/A	 	 	 	N/A	 
	August 25, 2007
	 	September 25, 2007	 	 	71,622,000.00	 	 	 	6.257	 	 	 	11.50	 
	September 25, 2007
	 	October 25, 2007	 	 	71,622,000.00	 	 	 	6.473	 	 	 	11.50	 
	October 25, 2007
	 	November 25, 2007	 	 	71,622,000.00	 	 	 	6.257	 	 	 	11.50	 
	November 25, 2007
	 	December 25, 2007	 	 	71,622,000.00	 	 	 	6.473	 	 	 	11.50	 
	December 25, 2007
	 	January 25, 2008	 	 	71,622,000.00	 	 	 	6.257	 	 	 	11.50	 
	January 25, 2008
	 	February 25, 2008	 	 	71,622,000.00	 	 	 	6.257	 	 	 	11.50	 
	February 25, 2008
	 	March 25, 2008	 	 	71,622,000.00	 	 	 	6.705	 	 	 	11.50	 
	March 25, 2008
	 	April 25, 2008	 	 	71,622,000.00	 	 	 	6.257	 	 	 	11.50	 
	April 25, 2008
	 	May 25, 2008	 	 	71,622,000.00	 	 	 	6.474	 	 	 	11.50	 
	May 25, 2008
	 	June 25, 2008	 	 	71,622,000.00	 	 	 	6.257	 	 	 	11.50	 
	June 25, 2008
	 	July 25, 2008	 	 	71,622,000.00	 	 	 	6.474	 	 	 	11.50	 
	July 25, 2008
	 	August 25, 2008	 	 	71,622,000.00	 	 	 	6.258	 	 	 	11.50	 
	August 25, 2008
	 	September 25, 2008	 	 	71,622,000.00	 	 	 	6.258	 	 	 	11.50	 
	September 25, 2008
	 	October 25, 2008	 	 	71,622,000.00	 	 	 	6.474	 	 	 	11.50	 
	October 25, 2008
	 	November 25, 2008	 	 	71,622,000.00	 	 	 	6.258	 	 	 	11.50	 
	November 25, 2008
	 	December 25, 2008	 	 	71,622,000.00	 	 	 	6.474	 	 	 	11.50	 
	December 25, 2008
	 	January 25, 2009	 	 	71,622,000.00	 	 	 	6.258	 	 	 	11.50	 
	January 25, 2009
	 	February 25, 2009	 	 	71,622,000.00	 	 	 	6.258	 	 	 	11.50	 
	February 25, 2009
	 	March 25, 2009	 	 	71,622,000.00	 	 	 	6.953	 	 	 	11.50	 
	March 25, 2009
	 	April 25, 2009	 	 	71,622,000.00	 	 	 	6.258	 	 	 	11.50	 
	April 25, 2009
	 	May 25, 2009	 	 	70,111,485.49	 	 	 	6.474	 	 	 	11.50	 
	May 25, 2009
	 	June 25, 2009	 	 	63,666,327.55	 	 	 	6.258	 	 	 	11.50	 
	June 25, 2009
	 	July 25, 2009	 	 	57,341,808.01	 	 	 	6.474	 	 	 	11.50	 
	July 25, 2009
	 	August 25, 2009	 	 	51,135,679.96	 	 	 	6.258	 	 	 	11.50	 
	August 25, 2009
	 	September 25, 2009	 	 	45,045,738.21	 	 	 	6.258	 	 	 	11.50	 
	September 25, 2009
	 	October 25, 2009	 	 	39,069,818.49	 	 	 	6.474	 	 	 	11.50	 
	October 25, 2009
	 	November 25, 2009	 	 	33,205,796.73	 	 	 	6.258	 	 	 	11.50	 
	November 25, 2009
	 	December 25, 2009	 	 	27,451,588.28	 	 	 	6.474	 	 	 	11.50	 
	December 25, 2009
	 	January 25, 2010	 	 	21,805,147.18	 	 	 	6.258	 	 	 	11.50	 
	January 25, 2010
	 	February 25, 2010	 	 	16,264,465.48	 	 	 	6.258	 	 	 	11.50	 
	February 25, 2010
	 	March 25, 2010	 	 	10,827,572.50	 	 	 	6.953	 	 	 	11.50	 
	March 25, 2010
	 	April 25, 2010	 	 	5,492,534.15	 	 	 	6.258	 	 	 	11.50	 
	April 25, 2010
	 	May 25, 2010	 	 	257,452.26	 	 	 	6.475	 	 	 	11.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Thereafter
	 	 	 	 	0.00	 	 	 	N/A	 	 	 	N/A	 

V-2

 

CLASS 2-AV3 YIELD MAINTENANCE AGREEMENT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Scheduled	 	 	 	 
	Calculation Period	 	Calculation Period	 	Notional Amount	 	Cap Strike	 	Rate Cap
	Start Date	 	End Date	 	($)	 	Rate (%)	 	Ceiling (%)
	July 25, 2007
	 	August 25, 2007	 	 	48,474,000.00	 	 	 	N/A	 	 	 	N/A	 
	August 25, 2007
	 	September 25, 2007	 	 	48,474,000.00	 	 	 	6.157	 	 	 	11.50	 
	September 25, 2007
	 	October 25, 2007	 	 	48,474,000.00	 	 	 	6.373	 	 	 	11.50	 
	October 25, 2007
	 	November 25, 2007	 	 	48,474,000.00	 	 	 	6.157	 	 	 	11.50	 
	November 25, 2007
	 	December 25, 2007	 	 	48,474,000.00	 	 	 	6.373	 	 	 	11.50	 
	December 25, 2007
	 	January 25, 2008	 	 	48,474,000.00	 	 	 	6.157	 	 	 	11.50	 
	January 25, 2008
	 	February 25, 2008	 	 	48,474,000.00	 	 	 	6.157	 	 	 	11.50	 
	February 25, 2008
	 	March 25, 2008	 	 	48,474,000.00	 	 	 	6.605	 	 	 	11.50	 
	March 25, 2008
	 	April 25, 2008	 	 	48,474,000.00	 	 	 	6.157	 	 	 	11.50	 
	April 25, 2008
	 	May 25, 2008	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	May 25, 2008
	 	June 25, 2008	 	 	48,474,000.00	 	 	 	6.157	 	 	 	11.50	 
	June 25, 2008
	 	July 25, 2008	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	July 25, 2008
	 	August 25, 2008	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	August 25, 2008
	 	September 25, 2008	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	September 25, 2008
	 	October 25, 2008	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	October 25, 2008
	 	November 25, 2008	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	November 25, 2008
	 	December 25, 2008	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	December 25, 2008
	 	January 25, 2009	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	January 25, 2009
	 	February 25, 2009	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	February 25, 2009
	 	March 25, 2009	 	 	48,474,000.00	 	 	 	6.853	 	 	 	11.50	 
	March 25, 2009
	 	April 25, 2009	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	April 25, 2009
	 	May 25, 2009	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	May 25, 2009
	 	June 25, 2009	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	June 25, 2009
	 	July 25, 2009	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	July 25, 2009
	 	August 25, 2009	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	August 25, 2009
	 	September 25, 2009	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	September 25, 2009
	 	October 25, 2009	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	October 25, 2009
	 	November 25, 2009	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	November 25, 2009
	 	December 25, 2009	 	 	48,474,000.00	 	 	 	6.374	 	 	 	11.50	 
	December 25, 2009
	 	January 25, 2010	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	January 25, 2010
	 	February 25, 2010	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	February 25, 2010
	 	March 25, 2010	 	 	48,474,000.00	 	 	 	6.853	 	 	 	11.50	 
	March 25, 2010
	 	April 25, 2010	 	 	48,474,000.00	 	 	 	6.158	 	 	 	11.50	 
	April 25, 2010
	 	May 25, 2010	 	 	48,474,000.00	 	 	 	6.375	 	 	 	11.50	 
	May 25, 2010
	 	June 25, 2010	 	 	43,594,463.91	 	 	 	6.158	 	 	 	11.50	 
	June 25, 2010
	 	July 25, 2010	 	 	38,553,740.78	 	 	 	6.375	 	 	 	11.50	 
	July 25, 2010
	 	August 25, 2010	 	 	33,607,488.49	 	 	 	6.159	 	 	 	11.50	 
	August 25, 2010
	 	September 25, 2010	 	 	29,469,008.41	 	 	 	6.159	 	 	 	11.50	 
	September 25, 2010
	 	October 25, 2010	 	 	25,416,580.57	 	 	 	6.375	 	 	 	11.50	 

V-3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Scheduled	 	 	 	 
	Calculation Period	 	Calculation Period	 	Notional Amount	 	Cap Strike	 	Rate Cap
	Start Date	 	End Date	 	($)	 	Rate (%)	 	Ceiling (%)
	October 25, 2010
	 	November 25, 2010	 	 	21,448,565.41	 	 	 	6.159	 	 	 	11.50	 
	November 25, 2010
	 	December 25, 2010	 	 	17,787,493.04	 	 	 	6.375	 	 	 	11.50	 
	December 25, 2010
	 	January 25, 2011	 	 	14,473,793.88	 	 	 	6.159	 	 	 	11.50	 
	January 25, 2011
	 	February 25, 2011	 	 	11,228,535.94	 	 	 	6.159	 	 	 	11.50	 
	February 25, 2011
	 	March 25, 2011	 	 	8,050,390.58	 	 	 	6.854	 	 	 	11.50	 
	March 25, 2011
	 	April 25, 2011	 	 	4,938,054.29	 	 	 	6.159	 	 	 	11.50	 
	April 25, 2011
	 	May 25, 2011	 	 	1,890,248.23	 	 	 	6.375	 	 	 	11.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Thereafter
	 	 	 	 	0.00	 	 	 	N/A	 	 	 	N/A	 

V-4

 

EXHIBIT W

[RESERVED]

W-1

 

EXHIBIT W-1

FORM OF SWAP CONFIRMATION

Barclays Bank PLC

5 The North Colonnade

Canary Wharf

London E14 4BB

Tel +44 (0)20 7623 2323

	 	 	 
	DATE:

	 	July 26, 2007
	 
	 	 
	TO:

	 	The Bank of New York Trust Company, not individually,
but solely as trustee of the supplemental interest trust
with respect to the ChaseFlex Trust Series 2007-M1,
Multi-Class Mortgage Pass-Through Certificates (Mortgage
Pool I)
	TELEPHONE:

	 	713-483-6216
	FACSIMILE:

	 	713-483-6627
	 
	 	 
	FROM:

	 	Barclays Bank PLC
	 
	 	 
	SUBJECT:

	 	Fixed Income Derivatives Confirmation
	 
	 	 
	REFERENCE NUMBER:

	 	[•]B

The purpose of this long-form confirmation (“Confilimation”) is to confirm the terms and
conditions of the Transaction entered into on the Trade Date specified below (the “Transaction”)
between Barclays Bank PLC (“Party A”) and The Bank of New York Trust Company, not individually, but
solely as trustee (the “Trustee”) on behalf of the supplemental interest trust with respect to the
ChaseFlex Trust Series 2007-M1, Multi-Class Mortgage Pass-Through Certificates (Mortgage Pool I)
(the “Trust”) (“Party B”) created under the Pooling and Servicing Agreement, dated as of July 1,
2007, among Chase Mortgage Finance Corporation, as Depositor, JPMorgan Chase Bank, N.A., as
Servicer and Custodian, and The Bank of New York Trust Company, N.A., as Trustee and Paying Agent
(the “Base Agreement”). This Confirmation evidences a complete and binding agreement between you
and us to enter into the Transaction on the terms set forth below and replaces any previous
agreement between us with respect to the subject matter hereof. Item 2 of this Confirmation
constitutes a “Confirmation” as referred to in the ISDA Master Agreement (defined below); Item 3 of
this Confirmation constitutes a “Schedule” as referred to in the ISDA Master Agreement; and Annex A
hereto constitutes Paragraph 13 of a Credit Support Annex to the Schedule.

	1.	 	The Confirmation set forth at Item 2 hereof shall supplement, form a part of, and be subject
to an agreement in the form of the ISDA Master Agreement (Multicurrency — Cross Border) as
published and copyrighted in 1992 by the International Swaps and Derivatives Association, Inc.
(the “ISDA Master Agreement”), as if Party A and Party B had executed an agreement in such
form on the date hereof, with a Schedule as set forth in Item 3 of this Confirmation, and an
ISDA Credit Support Annex (Bilateral Form — ISDA Agreements Subject to New York Law Only
version) as published and copyrighted in 1994 by the International Swaps and Derivatives
Association, Inc., with Paragraph 13 thereof as set forth in Annex A hereto (the “Credit
Support Annex”). For the avoidance of doubt, the Transaction described herein shall be the
sole Transaction governed by such ISDA Master Agreement.

 

 

	2.	 	The terms of the particular Transaction to which this Confirmation relates are as follows:

	 	 	 	 	 
	 

	 	Notional Amount:
	 	With respect to any Calculation Period, the lesser of (a) the amount set
forth for such period on Schedule I attached hereto and (b) the Outstanding Certificate
Principal Balance of the Pool 1 Certificates (excluding the Class 1-CE Certificates).
	 
	 	 	 	 
	 

	 	Trade Date:
	 	July 16, 2007
	 
	 	 	 	 
	 

	 	Effective Date:
	 	July 31, 2007
	 
	 	 	 	 
	 

	 	Termination Date:
	 	November 25, 2016, subject to adjustment in accordance with the Business
Day Convention; provided, however, that for the purpose of determining the final Fixed
Rate Payer Period End Date, Termination Date shall be subject to No Adjustment.
	 
	 	 	 	 
	 

	 	Fixed Amounts:	 	 
	 
	 	 	 	 
	 

	 	Fixed Rate Payer:

	 	Party B
	 
	 	 	 	 
	 

	 	Fixed Rate Payer
	 	 
	 

	 	Period End Dates:

	 	The 25th calendar day of each month during the Term of
this Transaction, commencing August 25, 2007, and ending on the Termination
Date, with No Adjustment.
	 
	 	 	 	 
	 

	 	Fixed Rate Payer
	 	 
	 

	 	Payment Dates:

	 	The 25th calendar day of each month during the Term of
this Transaction, commencing August 25, 2007, and ending on the Termination
Date, subject to adjustment in accordance with the Business Day Convention.
	 
	 	 	 	 
	 

	 	Fixed Rate:

	 	5.5625%
	 
	 	 	 	 
	 

	 	Fixed Rate Day
	 	 
	 

	 	Count Fraction:

	 	30/360
	 
	 	 	 	 
	 

	 	Floating Amounts:	 	 
	 
	 	 	 	 
	 

	 	Floating Rate Payer:

	 	Party A
	 
	 	 	 	 
	 

	 	Floating Rate Payer
	 	 
	 

	 	Period End Dates:

	 	The 25th calendar day of each month during the Term of
this Transaction, commencing August 25, 2007, and ending on the Termination
Date, with No Adjustment.
	 
	 	 	 	 
	 

	 	Floating Rate Payer
	 	 
	 

	 	Payment Dates:

	 	Early Payment shall be applicable. Each Floating Rate Payer Payment
Date shall be two Business Days preceding each Floating Rate Payer Period End
Date. Notwithstanding anything to the contrary in Section 2(c) of the ISDA
Master Agreement, amounts that are payable with respect to the same
Calculation Period shall be netted, as provided in Section 2(c) of the ISDA
Master Agreement, even if such amounts are not due on the same Payment Date.
	 
	 	 	 	 
	 

	 	Floating Rate Option:

	 	USD-LIBOR-BBA

3

 

	 	 	 	 	 
	 

	 	Designated Maturity:

	 	One month
	 
	 	 	 	 
	 

	 	Floating Rate Day
	 	 
	 

	 	Count Fraction:

	 	Actual/360
	 
	 	 	 	 
	 

	 	Reset Dates:

	 	The first day of each Calculation Period.
	 
	 	 	 	 
	 

	 	Compounding:

	 	Inapplicable
	 
	 	 	 	 
	 

	 	Business Days:

	 	New York
	 
	 	 	 	 
	 

	 	Business Day Convention:

	 	Following
	 
	 	 	 	 
	 

	 	Calculation Agent:

	 	Party A

	 	 	 	 	 
	 	 	Account Details and Settlement Information:
	 
	 	 	 	 
	 

	 	Payments to Party A:

	 	Correspondent: BARCLAYS BANK PLC NEW YORK

FEED: 026002574

Beneficiary: BARCLAYS SWAPS

Beneficiary Account: [ ]

	 
	 	 	 	 
	 

	 	Payments to Party B:

	 	The Bank of New York

ABA: 021-000-018

For credit to GLA: 211705

For final credit to: 226107

Account Name: CFLX 2007-M1 Supplemental Trust

Details of Payment: [ ]

4

 

	3.	 	Provisions Deemed Incorporated in a Schedule to the ISDA Master Agreement:

Part 1. Termination Provisions.

For the purposes of this Agreement:-

	(a)	 	“Specified Entity” will not apply to Party A or Party B for any purpose.
	 
	(b)	 	“Specified Transaction” will have the meaning specified in Section 14.
	 
	(c)	 	Events of Default.
	 
	 	 	The statement below that an Event of Default will apply to a specific party means that upon
the occurrence of such an Event of Default with respect to such party, the other party shall
have the rights of a Non-defaulting Party under Section 6 of this Agreement; conversely, the
statement below that such event will not apply to a specific party means that the other
party shall not have such rights.

	 	(i)	 	The “Failure to Pay or Deliver” provisions of Section 5(a)(i) will apply to
Party A and will apply to Party B.
	 
	 	(ii)	 	The “Breach of Agreement” provisions of Section 5(a)(ii) will apply to Party A
and will not apply to Party B; provided, however, that notwithstanding anything to the
contrary in Section 5(a)(ii), any failure by Party A to comply with or perform any
obligation to be complied with or performed by Party A under the Credit Support Annex
shall not constitute an Event of Default under Section 5(a)(ii) unless (A) a Moody’s
Second Trigger Downgrade Event has occurred and been continuing for 30 or more Local
Business Days, (B) an S&P Required Ratings Downgrade Event has occurred and been
continuing for 10 or more Local Business Days, (C) a Fitch Required Ratings Downgrade
Event has occurred and been continuing for 30 or more days, or (D) a DBRS Required
Ratings Downgrade Event has occurred and been continuing for 30 or more days.
	 
	 	(iii)	 	The “Credit Support Default” provisions of Section 5(a)(iii) will apply to
Party A and will not apply to Party B except that Section 5(a)(iii)(1) will apply to
Party B solely in respect of Party B’s obligations under Paragraph 3(b) of the Credit
Support Annex; provided, however, that notwithstanding anything to the contrary in
Section 5(a)(iii)(1), any failure by Party A to comply with or perform any obligation
to be complied with or performed by Party A under the Credit Support Annex shall not
constitute an Event of Default under Section 5(a)(iii) unless (A) a Moody’s Second
Trigger Downgrade Event has occurred and been continuing for 30 or more Local Business
Days, (B) an S&P Required Ratings Downgrade Event has occurred and been continuing for
10 or more Local Business Days, (C) a Fitch Required Ratings Downgrade Event has
occurred and been continuing for 30 or more days, or (D) a DBRS Required Ratings
Downgrade Event has occurred and been continuing for 30 or more days.
	 
	 	(iv)	 	The “Misrepresentation” provisions of Section 5(a)(iv) will apply to Party A
and will not apply to Party B.
	 
	 	(v)	 	The “Default under Specified Transaction” provisions of Section 5(a)(v) will
not apply to Party A and will not apply to Party B.
	 
	 	(vi)	 	The “Cross Default” provisions of Section 5(a)(vi) will apply to Party A and
will not apply to Party B. For purposes of Section 5(a)(vi), solely with respect to
Party A:
	 
	 	 	 	“Specified Indebtedness” will have the meaning specified in Section 14, except that
such term shall not include obligations in respect of deposits received in the
ordinary course of Party A’s banking business.
	 
	 	 	 	“Threshold Amount” means with respect to Party A an amount equal to three percent
(3%) of the Shareholders’ Equity of Party A or, if applicable, a guarantor under an
Eligible Guarantee with credit ratings at least equal to the S&P Required Ratings
Threshold, the Moody’s Second Trigger Threshold,

5

 

	 	 	 	the Fitch Approved Ratings Threshold and the DBRS Approved Ratings Threshold.
	 
	 	 	 	“Shareholders’ Equity” means with respect to an entity, at any time, such party’s
shareholders’ equity (on a consolidated basis) determined in accordance with
generally accepted accounting principles in such party’s jurisdiction of
incorporation or organization as at the end of such party’s most recently completed
fiscal year.
	 
	 	(vii)	 	The “Bankruptcy” provisions of Section 5(a)(vii) will apply to Party A and
will apply to Party B; provided, however, that, for purposes of applying Section
5(a)(vii) to Party B: (A) Section 5(a)(vii)(2) shall not apply, (B) Section
5(a)(vii)(3) shall not apply to any assignment, arrangement or composition that is
effected by or pursuant to the Base Agreement, (C) Section 5(a)(vii)(4) shall not apply
to a proceeding instituted, or a petition presented, by Party A or any of its
Affiliates (notwithstanding anything to the contrary in this Agreement, for purposes of
Section 5(a)(vii)(4), Affiliate shall have the meaning set forth in Section 14 of the
ISDA Master Agreement), (D) Section 5(a)(vii)(6) shall not apply to any appointment
that is effected by or pursuant to the Base Agreement, or any appointment to which
Party B has not yet become subject; (E) Section 5(a)(vii) (7) shall not apply; (F)
Section 5(a)(vii)(8) shall apply only to the extent of any event which has an effect
analogous to any of the events specified in clauses (1), (3), (4), (5) or (6) of
Section 5(a)(vii), in each case as modified in this Part 1(c)(vii), and (G) Section
5(a)(vii)(9) shall not apply.
	 
	 	(viii)	 	The “Merger Without Assumption” provisions of Section 5(a)(viii) will apply to Party
A and will not apply to Party B.

	(d)	 	Termination Events.
	 
	 	 	The statement below that a Termination Event will apply to a specific party means that upon
the occurrence of such a Termination Event, if such specific party is the Affected Party
with respect to a Tax Event, the Burdened Party with respect to a Tax Event Upon Merger
(except as noted below) or the non-Affected Party with respect to a Credit Event Upon
Merger, as the case may be, such specific party shall have the right to designate an Early
Termination Date in accordance with Section 6 of this Agreement; conversely, the statement
below that such an event will not apply to a specific party means that such party shall not
have such right; provided, however, with respect to “Illegality” the statement that such
event will apply to a specific party means that upon the occurrence of such a Termination
Event with respect to such party, either party shall have the right to designate an Early
Termination Date in accordance with Section 6 of this Agreement.

	 	(i)	 	The “Illegality” provisions of Section 5(b)(i) will apply to Party A and will apply to
Party B.
	 
	 	(ii)	 	The “Tax Event” provisions of Section 5(b)(ii) will apply to Party A except
that, for purposes of the application of Section 5(b)(ii) to Party A, Section 5(b)(ii)
is hereby amended by deleting the words “(x) any action taken by a taxing authority, or
brought in a court of competent jurisdiction, on or after the date on which a
Transaction is entered into (regardless of whether such action is taken or brought with
respect to a party to this Agreement) or (y)”, and the “Tax Event” provisions of
Section 5(b)(ii) will apply to Party B.
	 
	 	(iii)	 	The “Tax Event Upon Merger” provisions of Section 5(b)(iii) will apply to
Party A and will apply to Party B, provided that Party A shall not be entitled to
designate an Early Termination Date by reason of a Tax Event upon Merger in respect of
which it is the Affected Party.
	 
	 	(iv)	 	The “Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply to
Party A and will not apply to Party B.

	(e)	 	The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A and
will not apply to Party B.
	 
	(f)	 	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement:

	 	(i)	 	Market Quotation will apply, provided, however, that, in the event of a
Derivative Provider Trigger Event, the following provisions will apply:

6

 

	 	(A)	 	The definition of Market Quotation in Section 14 shall be deleted
in its entirety and replaced with the following:
	 
	 	 	 	“Market Quotation” means, with respect to one or more Terminated
Transactions, a Firm Offer which is (1) made by a Reference Market-maker that
is an Eligible Replacement, (2) for an amount that would be paid to Party B
(expressed as a negative number) or by Party B (expressed as a positive
number) in consideration of an agreement between Party B and such Reference
Market-maker to enter into a Replacement Transaction, and (3) made on the
basis that Unpaid Amounts in respect of the Terminated Transaction or group
of Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included.
	 
	 	(B)	 	The definition of Settlement Amount shall be deleted in its
entirety and replaced with the following:
	 
	 	 	 	“Settlement Amount” means, with respect to any Early Termination Date, an
amount (as determined by Party B) equal to:

	 	(a)	 	if, on or prior to such Early Termination Date, a
Market Quotation for the relevant Terminated Transaction or group of
Terminated Transactions is accepted by Party B so as to become legally
binding, the Termination Currency Equivalent of the amount (whether
positive or negative) of such Market Quotation;
	 
	 	(b)	 	if, on such Early Termination Date, no Market
Quotation for the relevant Terminated Transaction or group of Terminated
Transactions has been accepted by Party B so as to become legally
binding and one or more Market Quotations from Approved Replacements
have been communicated to Party B and remain capable of becoming legally
binding upon acceptance by Party B, the Termination Currency Equivalent
of the amount (whether positive or negative) of the lowest of such
Market Quotations (for the avoidance of doubt, (i) a Market Quotation
expressed as a negative number is lower than a Market Quotation
expressed as a positive number and (ii) the lower of two Market
Quotations expressed as negative numbers is the one with the largest
absolute value); or
	 
	 	(c)	 	if, on such Early Termination Date, no Market
Quotation for the relevant Terminated Transaction or group of Terminated
Transactions is accepted by Party B so as to become legally binding and
no Market Quotation from an Approved Replacement has been communicated
to Party B and remains capable of becoming legally binding upon
acceptance by Party B, Party B’s Loss (whether positive or negative and
without reference to any Unpaid Amounts) for the relevant Terminated
Transaction or group of Terminated Transactions.”

	 	(C)	 	If Party B requests Party A in writing to obtain Market
Quotations, Party A shall use its reasonable efforts to do so before the Early
Termination Date.
	 
	 	(D)	 	If the Settlement Amount is a negative number, Section 6(e)(i)(3)
shall be deleted in its entirety and replaced with the following:

7

 

	 	 	 	“(3) Second Method and Market Quotation. If the Second Method and Market
Quotation apply, (I) Party B shall pay to Party A an amount equal to the
absolute value of the Settlement Amount in respect of the Terminated
Transactions, (II) Party B shall pay to Party A the Termination Currency
Equivalent of the Unpaid Amounts owing to Party A and (III) Party A shall pay
to Party B the Termination Currency Equivalent of the Unpaid Amounts owing to
Party B; provided, however, that (x) the amounts payable under the
immediately preceding clauses (II) and (III) shall be subject to netting in
accordance with Section 2(c) of this Agreement and (y) notwithstanding any
other provision of this Agreement, any amount payable by Party A under the
immediately preceding clause (III) shall not be netted against any amount
payable by Party B under the immediately preceding clause (I).”
	 
	 	(E)	 	At any time on or before the Early Termination Date at which two
or more Market Quotations from Approved Replacements have been communicated to
Party B and remain capable of becoming legally binding upon acceptance by Party
B, Party B shall be entitled to accept only the lowest of such Market Quotations
(for the avoidance of doubt, (i) a Market Quotation expressed as a negative
number is lower than a Market Quotation expressed as a positive number and (ii)
the lower of two Market Quotations expressed as negative numbers is the one with
the largest absolute value).

	 	(ii)	 	The Second Method will apply.

	(g)	 	“Termination Currency” means USD.
	 
	(h)	 	Additional Termination Events. Additional Termination Events will apply as provided in Part
5(c).

8

 

Part 2. Tax Matters.

	(a)	 	Tax Representations.

	 	(i)	 	Payer Representations. For the purpose of Section 3(e) of this Agreement:

	 	(A)	 	Party A makes the following representation(s):
	 
	 	 	 	None.
	 
	 	(B)	 	Party B makes the following representation(s):
	 
	 	 	 	None.

	 	(ii)	 	Payee Representations. For the purpose of Section 3(f) of this Agreement:

	 	(A)	 	Party A makes the following representation(s):
	 
	 	 	 	None.
	 
	 	(B)	 	Party B makes the following representation(s):
	 
	 	 	 	None.

	(b)	 	Tax Provisions.

	 	(i)	 	Indemnifiable Tax. Notwithstanding the definition of “Indemnifiable Tax” in
Section 14 of this Agreement, all Taxes in relation to payments by Party A shall be
Indemnifiable Taxes unless (i) such Taxes are assessed directly against Party B and not
by deduction or withholding by Party A or (ii) arise as a result of a Change in Tax Law
(in which case such Tax shall be an Indemnifiable Tax only if such Tax satisfies the
definition of Indemnifiable Tax provided in Section 14). In relation to payments by
Party B, no Tax shall be an Indemnifiable Tax, unless the Tax is due to a Change in Tax
Law and otherwise satisfies the definition of Indemnifiable Tax provided in Section 14.

9

 

Part 3. Agreement to Deliver Documents.

	(a)	 	For the purpose of Section 4(a)(i), tax forms, documents, or certificates to be delivered
are:

	 	 	 	 	 
	Party required to	 	Form/Document/	 	Date by which to
	deliver document	 	Certificate	 	be delivered
	 
	 	 	 	 
	Party A and Party B

	 	Any form or document
required or reasonably
requested to allow the
other party to make
payments under the
Agreement without any
deduction or
withholding for or on
account of any Tax, or
with such deduction or
withholding at a
reduced rate.
	 	Promptly upon
reasonable demand by
the other party.

	(b)	 	For the purpose of Section 4(a)(ii), other documents to be delivered are:

	 	 	 	 	 	 	 
	Party required	 	 	 	 	 	Covered by
	to deliver	 	Form/Document/	 	Date by which to	 	Section 3(d)
	document	 	Certificate	 	be delivered	 	Representation
	 
	 	 	 	 	 	 
	Party A and
Party B

	 	Any documents required by the
receiving party to evidence the
authority of the delivering party or
its Credit Support Provider, if any,
for it to execute and deliver the
Agreement, each Confirmation, and any
Credit Support Documents to which it
is a party, and to evidence the
authority of the delivering party or
its Credit Support Provider to
perform its obligations under the
Agreement, each Confirmation and any
Credit Support Document, as the case
may be
	 	Upon the execution
and delivery of
this Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Party A and
Party B

	 	A certificate of an authorized
officer of the party, as to the
incumbency and authority of the
respective officers of the party
signing the Agreement, each
Confirmation, and any relevant Credit
Support Document, as the case may be
	 	Upon the execution
and delivery of
this Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	Annual Report of Party A containing
consolidated financial statements
certified by independent certified
public accountants and prepared in
accordance with generally accepted
accounting principles in the country
in which Party A is organized
	 	Promptly upon
request after
becoming publicly
available
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	Opinions of counsel to Party A
substantially in the form of Exhibit
A to this Confirmation
	 	Upon the execution
and delivery of
this Agreement
	 	No
	 
	 	 	 	 	 	 
	Party B

	 	An opinion of counsel to Party B
reasonably satisfactory to Party A.
	 	Upon the execution
and delivery of
this Agreement
	 	No
	 
	 	 	 	 	 	 
	Party B

	 	An executed copy of the Base Agreement
	 	Within 30 days
after the date of
this Agreement.
	 	No

10

 

Part 4. Miscellaneous.

	(a)	 	Address for Notices: For the purposes of Section 12(a) of this Agreement:
	 
	 	 	Address for notices or communications to Party A:

	 	 	 	 	 
	 

	 	Address:

Facsimile:
Phone: 
(For all purposes)
	 	5 The North Colonnade

Canary Wharf

London E14 4BB

44(20) 777 36461

44(20) 777 36810

	 
	 	 	 	 
	 	 	Address for notices or communications to Party B:
	 
	 	 	 	 
	 

	 	Address:
	 	The Bank of New York Trust Company

601 Travis, 16th Floor

Houston, Texas 77002
	 

	 	Facsimile:
	 	(713) 483-6627
	 

	 	Phone:
	 	(713) 483-6216

	 	 	(For all purposes)
	 
	(b)	 	Process Agent. For the purpose of Section 13(c):
	 
	 	 	Party A appoints as its Process Agent: Not applicable.
	 
	 	 	Party B appoints as its Process Agent: Not applicable.
	 
	(c)	 	Offices. The provisions of Section 10(a) will apply to this Agreement.
	 
	(d)	 	Multibranch Party. For the purpose of Section 10(c) of this Agreement:
	 
	 	 	Party A is a Multibranch Party and may act through its London and New York Offices.
	 
	 	 	Party B is not a Multibranch Party.
	 
	(e)	 	Calculation Agent. The Calculation Agent is Party A; provided, however, that if an Event of
Default shall have occurred with respect to Party A, Party B shall have the right to appoint
as Calculation Agent a financial institution which would qualify as a Reference Market-maker,
reasonably acceptable to Party A, the cost for which shall be borne by Party A.
	 
	(f)	 	Credit Support Document.

	 	  Party A: 	 	 The Credit Support Annex, and any guarantee in support of Party A’s
obligations under this Agreement.
	 
	 	  Party B:  	 	The Credit Support Annex, solely in respect of Party B’s obligations under
Paragraph 3(b) of the Credit Support Annex.

11

 

	(g)	 	Credit Support Provider.

	 	Party A: 	 	 The guarantor under any guarantee in support of Party A’s obligations under
this Agreement.
	 
	 	Party B: 	 	 None.

	(h)	 	Governing Law. The parties to this Agreement hereby agree that the law of the State of New
York shall govern their rights and duties in whole (including any claim or controversy arising
out of or relating to this Agreement), without regard to the conflict of law provisions
thereof other than New York General Obligations Law Sections 5-1401 and 5-1402.
	 
	(i)	 	Netting of Payments. Subparagraph (ii) of Section 2(c) will apply to each Transaction
hereunder.
	 
	(j)	 	Affiliate. “Affiliate” shall have the meaning assigned thereto in Section 14; provided,
however, that Party B shall be deemed to have no Affiliates for purposes of this Agreement,
including for purposes of Section 6(b)(ii).

12

 

Part 5. Other Provisions.

	(a)	 	Definitions. Unless otherwise specified in a Confirmation, this Agreement and each
Transaction under this Agreement are subject to the 2000 ISDA Definitions as published and
copyrighted in 2000 by the International Swaps and Derivatives Association, Inc. (the
“Definitions”), and will be governed in all relevant respects by the provisions set forth in
the Definitions, without regard to any amendment to the Definitions subsequent to the date
hereof. The provisions of the Definitions are hereby incorporated by reference in and shall
be deemed a part of this Agreement, except that (i) references in the Definitions to a “Swap
Transaction” shall be deemed references to a “Transaction” for purposes of this Agreement, and
(ii) references to a “Transaction” in this Agreement shall be deemed references to a “Swap
Transaction” for purposes of the Definitions. Each term capitalized but not defined in this
Agreement shall have the meaning assigned thereto in the Base Agreement.
	 
	 	 	Each reference herein to a “Section” (unless specifically referencing the Base Agreement) or
to a “Section” “of this Agreement” will be construed as a reference to a Section of the ISDA
Master Agreement; each herein reference to a “Part” will be construed as a reference to the
Schedule to the ISDA Master Agreement; each reference herein to a “Paragraph” will be
construed as a reference to a Paragraph of the Credit Support Annex.
	 
	(b)	 	Amendments to ISDA Master Agreement.

	 	(i)	 	Single Agreement. Section 1(c) is hereby amended by the adding the words
“including, for the avoidance of doubt, the Credit Support Annex” after the words
“Master Agreement”.
	 
	 	(ii)	 	Change of Account. Section 2(b) is hereby amended by the addition of the
following after the word “delivery” in the first line thereof: “to another account in
the same legal and tax jurisdiction as the original account”.
	 
	 	(iii)	 	Representations. Section 3 is hereby amended by adding at the end thereof the
following subsection (g):

	 	 	 	“(g) Relationship Between Parties.

	 	(1)	 	Non-Reliance. It is acting for its own account,
and it has made its own independent decisions to enter into that
Transaction and as to whether that Transaction is appropriate or proper
for it based upon its own judgment and upon advice from such advisors as
it has deemed necessary. It is not relying on any communication
(written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction, it being understood that
information and explanations related to the terms and conditions of a
Transaction will not be considered investment advice or a recommendation
to enter into that Transaction. No communication (written or oral)
received from the other party will be deemed to be an assurance or
guarantee as to the expected results of that Transaction.
	 
	 	(2)	 	Assessment and Understanding. It is capable of
assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the
terms, conditions and risks of that Transaction. It is also capable of
assuming, and assumes, the risks of that Transaction.
	 
	 	(3)	 	Purpose. It is entering into the Transaction for
the purposes of managing its borrowings or investments, hedging its
underlying assets or liabilities or in connection with a line of
business.
	 
	 	(4)	 	Status of Parties. The other party is not acting
as fiduciary for or advisor to it in respect of the Transaction.
	 
	 	(5)	 	Eligible Contract Participant. It is an
“eligible contract participant” as defined in Section 1a(12) of the
Commodity Exchange Act, as amended.”

	 	(v)	 	Transfer to Avoid Termination Event. Section 6(b)(ii) is hereby amended by (i)
deleting the words “or if a Tax Event Upon Merger occurs and the Burdened Party is the
Affected Party,” and (ii) by

13

 

	 	 	 	deleting the words “to transfer” and inserting the words “to effect a Permitted
Transfer” in lieu thereof.
	 
	 	(vi)	 	Jurisdiction. Section 13(b) is hereby amended by: (i) deleting in the second
line of subparagraph (i) thereof the word “non-”, (ii) deleting “; and” from the end of
subparagraph (i) and inserting “.” in lieu thereof, and (iii) deleting the final
paragraph thereof.
	 
	 	(vii)	 	Local Business Day. The definition of Local Business Day in Section 14 is
hereby amended by the addition of the words “or any Credit Support Document” after
“Section 2(a)(i)” and the addition of the words “or Credit Support Document” after
“Confirmation”.

	(c)	 	Additional Termination Events. The following Additional Termination Events will apply:

	 	(i)	 	First Rating Trigger Collateral. If Party A has failed to comply with or
perform any obligation to be complied with or performed by Party A in accordance with
the Credit Support Annex and such failure has not given rise to an Event of Default
under Section 5(a)(i) or Section 5(a)(iii), then an Additional Termination Event shall
have occurred with respect to Party A and Party A shall be the sole Affected Party with
respect to such Additional Termination Event.
	 
	 	(ii)	 	Second Rating Trigger Replacement. The occurrence of any event described in
this Part 5(c)(ii) shall constitute an Additional Termination Event with respect to
Party A and Party A shall be the sole Affected Party with respect to such Additional
Termination Event.

	 	(A)	 	A Moody’s Second Trigger Downgrade Event has occurred and been
continuing for 30 or more Local Business Days and at least one Eligible
Replacement has made a Firm Offer that would, assuming the occurrence of an
Early Termination Date, qualify as a Market Quotation (on the basis that
paragraphs (i) and (ii) of Part 1(f) (Payments on Early Termination) apply) and
which remains capable of becoming legally binding upon acceptance.
	 
	 	(B)	 	An S&P Required Ratings Downgrade Event has occurred and been
continuing for 60 or more calendar days.
	 
	 	(C)	 	A Fitch Required Ratings Downgrade Event has occurred and been
continuing for 30 or more calendar days.
	 
	 	(D)	 	A DBRS Required Ratings Downgrade Event has occurred and been
continuing for 30 or more calendar days.

	 	(iii)	 	Amendment of Base Agreement. If, without the prior written consent of Party A
where such consent is required under the Base Agreement, an amendment is made to the
Base Agreement which amendment could reasonably be expected to have a material adverse
effect on the interests of Party A (excluding, for the avoidance of doubt, any
amendment to the Base Agreement that is entered into solely for the purpose of
appointing a successor servicer, master servicer, securities administrator, trustee or
other service provider) under this Agreement, an Additional Termination Event shall
have occurred with respect to Party B and Party B shall be the sole Affected Party with
respect to such Additional Termination Event; provided, however, that notwithstanding
Section 6(b)(iv) of this Agreement, both Party A and Party B shall have the right to
designate an Early Termination Date in respect of this Additional Termination Event.
	 
	 	(iv)	 	Termination of Trust. If, the Trust is terminated pursuant to the Base
Agreement and all rated certificates or notes, as applicable, have been paid in
accordance with the terms of the Base Agreement, an Additional Termination Event shall
have occurred with respect to Party B and Party B shall be the sole Affected Party with
respect to such Additional Termination Event; provided, however, that notwithstanding
Section 6(b)(iv) of this Agreement, both Party A and Party B shall have the right to
designate an Early Termination Date in respect of this Additional Termination Event.
	 
	 	(v)	 	Securitization Unwind. If a Securitization Unwind (as hereinafter defined)
occurs, an Additional Termination Event shall have occurred with respect to Party B and
Party B shall be the sole Affected

14

 

	 	 	 	Party with respect to such Additional Termination Event; provided, however, that
notwithstanding Section 6(b)(iv) of this Agreement, both Party A and Party B shall
have the right to designate an Early Termination Date in respect of this Additional
Termination Event. The Early Termination Date in respect of such Additional
Termination Event shall be not earlier than the latest possible date that the amount
of a termination payment may be submitted to a party exercising a clean-up call in
order to be included in the clean-up call price. As used herein, “Securitization
Unwind” means notice of the requisite amount of a party’s intention to exercise its
option to purchase the underlying mortgage loans pursuant the Base Agreement is given
by the Trustee to certificateholders or noteholders, as applicable, pursuant to the
Base Agreement.
	 
	 	(vi)	 	Regulation AB. If, upon the occurrence of a Swap Disclosure Event (as defined
below) Party A has not, within 10 days after such Swap Disclosure Event complied with
any of the provisions set forth in clause 3 of this Part 5(c)(vi), then an Additional
Termination Event shall have occurred with respect to Party A and Party A shall be the
sole Affected Party with respect to such Additional Termination Event.

	 	1.	 	Party A agrees and acknowledges that Chase Mortgage Finance
Corporation, not in its individual capacity but solely as depositor (the
“Depositor”), is required under Regulation AB under the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) (“Regulation AB”), to disclose certain financial information regarding
Party A or its group of affiliated entities, if applicable, depending on the
aggregate “significance percentage” of this Agreement and any other derivative
contracts between Party A or its group of affiliated entities, if applicable,
and Counterparty, as calculated from time to time in accordance with Item 1115
of Regulation AB.
	 
	 	2.	 	It shall be a swap disclosure event (“Swap Disclosure Event”) if,
on any Business Day after the date hereof, Depositor requests from Party A the
applicable financial information described in Item 1115 of Regulation AB (the
“Swap Financial Disclosure”).
	 
	 	3.	 	Upon the occurrence of a Swap Disclosure Event, Party A will, if
such Swap Financial Disclosure is not reasonably publicly available on “EDGAR”
or Party A’s internet home page, promptly upon reasonable written request (and
at its own expense), (a) provide to Depositor the Swap Financial Disclosure, (b)
secure another entity to replace Party A as party to this Agreement on terms
substantially similar to this Agreement and subject to prior notification to the
Rating Agencies, which entity (or a guarantor therefor) meets or exceeds the
Approved Rating Thresholds (and which satisfies the Rating Agency Condition) and
which entity (x) is able to comply with the requirements of Item 1115 of
Regulation AB and (y) indemnifies and holds harmless Depositor, its respective
directors or officers and any person controlling Depositor, from and against any
and all losses, claims, damages and liabilities caused by any untrue statement
or alleged untrue statement of a material fact contained in any Swap Financial
Disclosure or caused by any omission or alleged omission to state in any such
Swap Financial Disclosure a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, or (c) obtain a guaranty of Party A’s
obligations under this Agreement from an affiliate of Party A that satisfies the
Rating Agency Condition and that is able to comply with the financial
information disclosure requirements of Item 1115 of Regulation AB, such that
disclosure provided in respect of the affiliate will satisfy any disclosure
requirements applicable to the Swap Provider, and cause such affiliate to
provide Swap Financial Disclosure. If permitted by Regulation AB, any required
Swap Financial Disclosure may be provided by incorporation by reference from
reports filed pursuant to the Exchange Act.
	 
	 	4.	 	Party A and any guarantor agree that, in the event that Party A
provides Swap Financial Disclosure to Depositor in accordance with Part
5(c)(vi)(3) or causes its affiliate to provide Swap Financial Disclosure to
Depositor in accordance with Part 5(c)(vi)(3), Party A and any such guarantor
will indemnify and hold harmless Depositor, its respective directors or officers
and any person controlling Depositor, from and against any and all losses,
claims, damages and liabilities caused by any untrue statement or alleged untrue
statement of a material fact contained in such Swap Financial Disclosure or
caused by any omission or alleged omission to state in such Swap

15

 

	 	 	 	Financial Disclosure a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading.

	(d)	 	Required Ratings Downgrade Event. In the event that no Relevant Entity has credit ratings at
least equal to the Required Ratings Threshold of each relevant Rating Agency (such event, a
“Required Ratings Downgrade Event”), then Party A shall, as soon as reasonably practicable and
so long as a Required Ratings Downgrade Event is in effect, at its own expense, use
commercially reasonable efforts to procure either (A) a Permitted Transfer or (B) an Eligible
Guarantee.
	 
	(e)	 	Transfers.

	 	(i)	 	Section 7 is hereby amended to read in its entirety as follows:
	 
	 	 	 	“Subject to Section 6(b)(ii), neither Party A nor Party B is permitted to assign,
novate or transfer (whether by way of security or otherwise) as a whole or in part
any of its rights, obligations or interests under the Agreement or any Transaction
without (a) the prior written consent of the other party and (b) satisfaction of the
Rating Agency Condition, except that:

	 	(a)	 	a party may make such a transfer of this Agreement pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity (but without prejudice to any
other right or remedy under this Agreement);
	 
	 	(b)	 	a party may make such a transfer of all or any part of its
interest in any amount payable to it from a Defaulting Party under Section 6(e);
and
	 
	 	(c)	 	Party A may transfer or assign this Agreement to any Person,
including, without limitation, another of Party A’s offices, branches or
affiliates (any such Person, office, branch or affiliate, a “Transferee”) on at
least five Business Days’ prior written notice to Party B and the Trustee;
provided that, with respect to this clause (c), (A) as of the date of such
transfer the Transferee will not be required to withhold or deduct on account of
a Tax from any payments under this Agreement unless the Transferee will be
required to make payments of additional amounts pursuant to Section 2(d)(i)(4)
of this Agreement in respect of such Tax (B) a Termination Event or Event of
Default does not occur under this Agreement as a result of such transfer; (C)
such notice is accompanied by a written instrument pursuant to which the
Transferee acquires and assumes the rights and obligations of Party A so
transferred; (D) Party A will be responsible for any costs or expenses incurred
in connection with such transfer and (E) Party A obtains in respect of such
transfer a written acknowledgement of satisfaction of the Rating Agency
Condition (except for Moody’s). Party B will execute such documentation as is
reasonably deemed necessary by Party A for the effectuation of any such
transfer.”

	 	(ii)	 	If an Eligible Replacement has made a Firm Offer (which remains an offer that
will become legally binding upon acceptance by Party B) to be the transferee pursuant
to a Permitted Transfer, Party B shall, at Party A’s written request and at Party A’s
expense, take any reasonable steps required to be taken by Party B to effect such
transfer.

	(f)	 	Non-Recourse. Party A acknowledges and agree that, notwithstanding any provision in this
Agreement to the contrary, the obligations of Party B hereunder are limited recourse
obligations of Party B, payable solely from the Trust and the proceeds thereof, in accordance
with the priority of payments and other terms of the Base Agreement and that Party A will not
have any recourse to any of the directors, officers, employees, shareholders or affiliates of
Party B with respect to any claims, losses, damages, liabilities, indemnities or other
obligations in connection with any transactions contemplated hereby. In the event that the
Trust and the proceeds thereof, should be insufficient to satisfy all claims outstanding and
following the realization of the account held by the Trust and the proceeds thereof, any
claims against or obligations of Party B under the ISDA Master Agreement or any other
confirmation thereunder still outstanding shall be extinguished and thereafter not revive.
The Trustee shall not have liability for any failure or delay in making a payment hereunder to
Party A due to any failure or delay in receiving amounts in the account held by the Trust from
the

16

 

	 	 	Trust created pursuant to the Base Agreement. This provision will survive the termination
of this Agreement.
	 
	(g)	 	Rating Agency Notifications. Notwithstanding any other provision of this Agreement,
no Early Termination Date shall be effectively designated hereunder by Party B and no transfer
of any rights or obligations under this Agreement shall be made by either party unless each
Rating Agency has been given prior written notice of such designation or transfer.
	 
	(h)	 	No Set-off. Except as expressly provided for in Section 2(c), Section 6 or Part
1(f)(i)(D) hereof, and notwithstanding any other provision of this Agreement or any other
existing or future agreement, each party irrevocably waives any and all rights it may have to
set off, net, recoup or otherwise withhold or suspend or condition payment or performance of
any obligation between it and the other party hereunder against any obligation between it and
the other party under any other agreements. Section 6(e) shall be amended by deleting the
following sentence: “The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off.”.
	 
	(i)	 	Amendment. Notwithstanding any provision to the contrary in this Agreement, no amendment of
either this Agreement or any Transaction under this Agreement shall be permitted by either
party unless each of the Rating Agencies has been provided prior written notice of the same
and such amendment satisfies the Rating Agency Condition with respect to S&P, Fitch and DBRS.
	 
	(j)	 	Notice of Certain Events or Circumstances. Each Party agrees, upon learning of the
occurrence or existence of any event or condition that constitutes (or that with the giving of
notice or passage of time or both would constitute) an Event of Default or Termination Event
with respect to such party, promptly to give the other Party and to each Rating Agency notice
of such event or condition; provided that failure to provide notice of such event or condition
pursuant to this Part 5(j) shall not constitute an Event of Default or a Termination Event.
	 
	(k)	 	Proceedings. No Relevant Entity shall institute against, or cause any other person to
institute against, or join any other person in instituting against Party B, the Trust, or the
trust formed pursuant to the Base Agreement, in any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings under any federal or state
bankruptcy or similar law for a period of one year (or, if longer, the applicable preference
period) and one day following payment in full of the Certificates and any Notes; provided,
however, that nothing will preclude, or be deemed to stop, Party A (i) from taking any action
prior to the expiration of the aforementioned one year and one day period, or if longer the
applicable preference period then in effect, in (A) any case or proceeding voluntarily filed
or commenced by Party B or (B) any involuntary insolvency proceeding filed or commenced by a
Person other than Party A, or (ii) from commencing against Party B or any of the Collateral
any legal action which is not a bankruptcy, reorganization, arrangement, insolvency,
moratorium, liquidation or similar proceeding. This provision will survive the termination of
this Agreement.
	 
	(l)	 	Trustee Liability Limitations. It is expressly understood and agreed by the parties hereto
that (a) this Agreement is executed by The Bank of New York Trust Company (“X”) not in its
individual capacity, but solely as Trustee under the Base Agreement in the exercise of the
powers and authority conferred and invested in it thereunder; (b) X has been directed pursuant
to the Base Agreement to enter into this Agreement and to perform its obligations hereunder;
(c) each of the representations, undertakings and agreements herein made on behalf of the
Trust is made and intended not as personal representations of the Trustee but is made and
intended for the purpose of binding only the Trust; and (d) under no circumstances shall X in
its individual capacity be personally liable for any payments hereunder or for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken under this
Agreement.
	 
	(m)	 	Severability. If any term, provision, covenant, or condition of this Agreement, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable
(in whole or in part) in any respect, the remaining terms, provisions, covenants, and
conditions hereof shall continue in full force and effect as if this Agreement had been
executed with the invalid or unenforceable portion eliminated, so long as this Agreement as so
modified continues to express, without material change, the original intentions of the parties
as to the subject matter of this Agreement and the deletion of such portion of this Agreement
will not substantially impair the respective benefits or expectations of the parties;
provided, however, that this severability provision shall not be applicable if any provision
of Section 2, 5, 6, or 13 (or any definition or provision in Section 14 to the extent it
relates to, or is used in or in connection with any such Section) shall be so held to be
invalid or

17

 

	 	 	unenforceable.
	 
	 	 	The parties shall endeavor to engage in good faith negotiations to replace any invalid or
unenforceable term, provision, covenant or condition with a valid or enforceable term,
provision, covenant or condition, the economic effect of which comes as close as possible to
that of the invalid or unenforceable term, provision, covenant or condition.
	 
	(n)	 	Consent to Recording. Each party hereto consents to the monitoring or recording, at any time
and from time to time, by the other party of any and all communications between trading,
marketing, and operations personnel of the parties and their Affiliates, waives any further
notice of such monitoring or recording, and agrees to notify such personnel of such monitoring
or recording.
	 
	(o)	 	Waiver of Jury Trial. Each party waives any right it may have to a trial by jury in respect
of any in respect of any suit, action or proceeding relating to this Agreement or any Credit
Support Document.
	 
	(p)	 	Regarding Party A. Party B acknowledges and agrees that Party A, in its capacity as swap
provider, has had and will have no involvement in and, accordingly Party A accepts no
responsibility for: (i) the establishment, structure, or choice of assets of Party B; (ii)
the selection of any person performing services for or acting on behalf of Party B; (iii) the
selection of Party A as the Counterparty; (iv) the terms of the Certificates; (v) the
preparation of or passing on the disclosure and other information (other than disclosure and
information furnished by Party A) contained in any offering circular for the Certificates, the
Base Agreement, or any other agreements or documents used by Party B or any other party in
connection with the marketing and sale of the Certificates; (vi) the ongoing operations and
administration of Party B, including the furnishing of any information to Party B which is not
specifically required under this Agreement; or (vii) any other aspect of Party B’s existence.
	 
	(q)	 	Rating Agency Requirements. Notwithstanding anything to the contrary herein, to the extent
any Rating Agency does not assign a rating to the notes or certificates, as applicable, issued
pursuant to the Base Agreement, references to the requirements of such Rating Agency herein
shall be ignored for purposes of this Agreement.
	 
	(r)	 	Additional Definitions.
	 
	 	 	As used in this Agreement, the following terms shall have the meanings set forth below,
unless the context clearly requires otherwise:

“Approved Ratings Threshold” means each of the S&P Approved Ratings Threshold, the Moody’s
First Trigger Ratings Threshold, the Fitch Approved Ratings Threshold and the DBRS Approved Ratings
Threshold.

“Approved Replacement” means, with respect to a Market Quotation, an entity making such Market
Quotation, which entity would satisfy conditions (a), (b), (c) and (d) of the definition of
Permitted Transfer (as determined by Party B in its sole discretion, acting in a commercially
reasonable manner) if such entity were a Transferee, as defined in the definition of Permitted
Transfer.

“DBRS” means Dominion Bond Rating Service, or any successor thereto.

18

 

“DBRS Approved Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
DBRS of “AA(low)” and a short-term unsecured and unsubordinated debt rating from DBRS of
“R-1(middle)”.

“DBRS Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings from DBRS
at least equal to the DBRS Required Ratings Threshold.

“DBRS Required Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
DBRS of “BBB”.

“Derivative Provider Trigger Event” means (i) an Event of Default with respect to which Party A is
a Defaulting Party, (ii) a Termination Event (other than an Illegality or Tax Event) with respect
to which Party A is the sole Affected Party or (iii) an Additional Termination Event with respect
to which Party A is the sole Affected Party.

“Eligible Guarantee” means an unconditional and irrevocable guarantee of all present and future
obligations of Party A under this Agreement (or, solely for purposes of the definition of Eligible
Replacement, all present and future obligations of such Eligible Replacement under this Agreement
or its replacement, as applicable) which is provided by a guarantor as principal debtor rather than
surety and which is directly enforceable by Party B, the form and substance of which guarantee are
subject to the Rating Agency Condition with respect to S&P, Fitch and DBRS, and either (A) a law
firm has given a legal opinion confirming that none of the guarantor’s payments to Party B under
such guarantee will be subject to deduction or Tax collected by withholding, or (B) such guarantee
provides that, in the event that any of such guarantor’s payments to Party B are subject to
deduction or Tax collected by withholding, such guarantor is required to pay such additional amount
as is necessary to ensure that the net amount actually received by Party B (free and clear of any
Tax collected by withholding) will equal the full amount Party B would have received had no such
deduction or withholding been required, or (C) in the event that any payment under such guarantee
is made net of deduction or withholding for Tax, Party A is required, under Section 2(a)(i), to
make such additional payment as is necessary to ensure that the net amount actually received by
Party B from the guarantor will equal the full amount Party B would have received had no such
deduction or withholding been required.

“Eligible Replacement” means an entity (A) (I) (x) which has credit ratings from S&P at least equal
to the S&P Required Ratings Threshold or (y) all present and future obligations of which entity
owing to Party B under this Agreement (or its replacement, as applicable) are guaranteed pursuant
to an Eligible Guarantee provided by a guarantor with credit ratings from S&P at least equal to the
S&P Required Ratings Threshold, in either case if S&P is a Rating Agency, (II) (x) which has credit
ratings from Moody’s at least equal to the Moody’s Second Trigger Ratings Threshold or (y) all
present and future obligations of which entity owing to Party B under this Agreement (or its
replacement, as applicable) are guaranteed pursuant to an Eligible Guarantee provided by a
guarantor with credit ratings from Moody’s at least equal to the Moody’s Second Trigger Ratings
Threshold, in either case if Moody’s is a Rating Agency, (III) (x) which has credit ratings from
Fitch at least equal to the applicable Fitch Approved Ratings Threshold or (y) all present and
future obligations of which entity owing to Party B under this Agreement (or its replacement, as
applicable) are guaranteed pursuant to an Eligible Guarantee provided by a guarantor with credit
ratings from Fitch at least equal to the Fitch Approved Ratings Threshold, in either case if Fitch
is a Rating Agency, and (IV) (x) which has credit ratings from DBRS at least equal to the
applicable DBRS Approved Ratings Threshold or (y) all present and future obligations of which
entity owing to Party B under this Agreement (or its replacement, as applicable) are guaranteed
pursuant to an Eligible Guarantee provided by a guarantor with credit ratings from DBRS at least
equal to the DBRS Approved Ratings

19

 

Threshold, in either case if DBRS is a Rating Agency, and (B) that has executed or agrees to
execute a Regulation AB indemnification agreement, if applicable.

“Financial Institution” means a bank, broker/dealer, insurance company, structured
investment company or derivative product company.

“Firm Offer” means a quotation from an Eligible Replacement (i) in an amount equal to the actual
amount payable by or to Party B in consideration of an agreement between Party B and such Eligible
Replacement to replace Party A as the counterparty to this Agreement by way of novation or, if such
novation is not possible, an agreement between Party B and such Eligible Replacement to enter into
a Replacement Transaction (assuming that all Transactions hereunder become Terminated
Transactions), and (ii) that constitutes an offer by such Eligible Replacement to replace Party A
as the counterparty to this Agreement or enter a Replacement Transaction that will become legally
binding upon such Eligible Replacement upon acceptance by Party B.

“Fitch” means Fitch Ratings Ltd., or any successor thereto.

“Fitch Approved Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
Fitch of “A” and a short-term unsecured and unsubordinated debt rating from Fitch of “F1”.

“Fitch Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings from
Fitch at least equal to the Fitch Required Ratings Threshold.

“Fitch Required Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
Fitch of “BBB-”.

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

“Moody’s First Trigger Ratings Threshold” means, with respect to Party A, the guarantor under an
Eligible Guarantee, or an Eligible Replacement, (i) if such entity has a short-term unsecured and
unsubordinated debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating or
counterparty rating from Moody’s of “A2” and a short-term unsecured and unsubordinated debt rating
from Moody’s of “Prime-1”, or (ii) if such entity does not have a short-term unsecured and
unsubordinated debt rating or counterparty rating from Moody’s, a long-term unsecured and
unsubordinated debt rating or counterparty rating from Moody’s of “A1”.

“Moody’s Second Trigger Downgrade Event” means that no Relevant Entity has credit ratings from
Moody’s at least equal to the Moody’s Second Trigger Ratings Threshold.

“Moody’s Second Trigger Ratings Threshold” means, with respect to Party A, the guarantor under an
Eligible Guarantee, or an Eligible Replacement, (i) if such entity has a short-term unsecured and
unsubordinated debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating or
counterparty rating from Moody’s of “A3” and a short-term unsecured and unsubordinated debt rating
from Moody’s of “Prime-2”, or (ii) if such entity does not have a

20

 

short-term unsecured and unsubordinated debt rating from Moody’s, a long-term unsecured and
unsubordinated debt rating or counterparty rating from Moody’s of “A3”.

“Permitted Transfer” means a transfer by novation by Party A to a transferee (the “Transferee”) of
all, but not less than all, of Party A’s rights, liabilities, duties and obligations under this
Agreement, with respect to which transfer each of the following conditions is satisfied: (a) the
Transferee is an Eligible Replacement that is a recognized dealer in interest rate swaps, (b) as of
the date of such transfer the Transferee would not be required to withhold or deduct on account of
Tax from any payments under this Agreement or would be required to gross up for such Tax under
Section 2(d)(i)(4), (c) an Event of Default or Termination Event would not occur as a result of
such transfer (d) pursuant to a written instrument (the “Transfer Agreement”), the Transferee
acquires and assumes all rights and obligations of Party A under the Agreement and the relevant
Transaction, (e) such Transfer Agreement is effective to transfer to the Transferee all, but not
less than all, of Party A’s rights and obligations under the Agreement and all relevant
Transactions; (f) Party A will be responsible for any costs or expenses incurred in connection with
such transfer (including any replacement cost of entering into a replacement transaction); (g)
Moody’s has been given prior written notice of such transfer and the Rating Agency Condition (other
than with respect to Moody’s) is satisfied; and (h) such transfer otherwise complies with the terms
of the Base Agreement.

“Rating Agencies” means, with respect to any date of determination, each of S&P, Moody’s, Fitch
and DBRS, to the extent that each such rating agency is then providing a rating for any of the
related notes or certificates, as applicable.

“Rating Agency Condition” means, with respect to any particular proposed act or omission to act
hereunder and each Rating Agency specified in connection with such proposed act or omission, that
the party proposing such act or failure to act must consult with each of the specified Rating
Agencies and receive from each such Rating Agency prior written confirmation that the proposed
action or inaction would not cause a downgrade or withdrawal of the then-current rating of any
Certificates or Notes.

“Relevant Entity” means Party A and, to the extent applicable, a guarantor under an Eligible
Guarantee.

“Replacement Transaction” means, with respect to any Terminated Transaction or group of Terminated
Transactions, a transaction or group of transactions that (i) would have the effect of preserving
for Party B the economic equivalent of any payment or delivery (whether the underlying obligation
was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by
the parties under Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
Transactions that would, but for the occurrence of the relevant Early Termination Date, have been
required after that date, and (ii) has terms which are substantially the same as this Agreement,
including, without limitation, rating triggers, Regulation AB compliance, and credit support
documentation, save for the exclusion of provisions relating to Transactions that are not
Terminated Transactions.

“Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings at least equal
to the Required Ratings Threshold.

“Required Ratings Threshold” means each of the S&P Required Ratings Threshold, the Moody’s Second
Trigger Ratings Threshold, the Fitch Required Ratings Threshold and the DBRS Required Ratings
Threshold.

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or
any successor thereto.

21

 

“S&P Approved Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a short-term unsecured and unsubordinated debt rating of
“A-1” from S&P, or, if such entity does not have a short-term unsecured and unsubordinated debt
rating from S&P, a long-term unsecured and unsubordinated debt rating or counterparty rating of
“A+” from S&P.

“S&P Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings from S&P at
least equal to the S&P Required Ratings Threshold.

“S&P Required Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, (I) if such entity is a Financial Institution, a short-term
unsecured and unsubordinated debt rating of “A-2” from S&P, or, if such entity does not have a
short-term unsecured and unsubordinated debt rating from S&P, a long-term unsecured and
unsubordinated debt rating or counterparty rating of “BBB+” from S&P, or (II) if such entity is not
a Financial Institution, a short-term unsecured and unsubordinated debt rating of “A-1” from S&P,
or, if such entity does not have a short-term unsecured and unsubordinated debt rating from S&P, a
long-term unsecured and unsubordinated debt rating or counterparty rating of “A+” from S&P;

[Remainder of this page intentionally left blank.]

22

 

The time of dealing will be confirmed by Party A upon written request. Barclays is regulated by
the Financial Services Authority. Barclays is acting for its own account in respect of this
Transaction.

Please confirm that the foregoing correctly sets forth all the terms and conditions of our
agreement with respect to the Transaction by responding within three (3) Business Days by promptly
signing in the space provided below and both (i) faxing the signed copy to Incoming Transaction
Documentation, Barclays Capital Global OTC Transaction Documentation & Management, Global
Operations, Fax +(44) 20-7773-6810/6857, Tel +(44) 20-7773-6901/6904/6965, and (ii) mailing the
signed copy to Barclays Bank PLC, 5 The North Colonnade, Canary Wharf, London E14 4BB, Attention of
Incoming Transaction Documentation, Barclays Capital Global OTC Transaction Documentation &
Management, Global Operation. Your failure to respond within such period shall not affect the
validity or enforceability of the Transaction against you. This facsimile shall be the only
documentation in respect of the Transaction and accordingly no hard copy versions of this
Confirmation for this Transaction shall be provided unless Party B requests such a copy.

	 	 	 
	For and on behalf of
BARCLAYS BANK PLC

	 	For and on behalf of

ChaseFlex Trust Series 2007-M1, Multi-Class
Pass-Through Certificates (Mortgage Pool I)

By: The Bank of New York Trust Company, N.A., not
in its individual capacity but solely as Supplemental
Interest Trust Trustee on behalf of the Supplemental
Interest Trust with respect to ChaseFlex Trust Series
2007-M1 (Mortgage Pool 1)
	 
	 	 
	Name:

	 	Name:
	Title:

	 	Title:
	Date:

	 	Date:

Barclays Bank PLC and its Affiliates, including Barclays Capital Inc., may share with each other
information, including non-public credit information, concerning its clients and prospective
clients. If you do not want such information to be shared, you must write to the Director of
Compliance, Barclays Bank PLC, 200 Park Avenue, New York, NY 10166.

23

 

SCHEDULE I

	 	 	 	 	 
	From and including	 	To but excluding	 	Notional Amount (USD)
	07/31/07
	 	08/25/07
	 	466,661,000.00
	08/25/07
	 	09/25/07
	 	458,880,623.07
	09/25/07
	 	10/25/07
	 	450,717,399.21
	10/25/07
	 	11/25/07
	 	442,189,548.05
	11/25/07
	 	12/25/07
	 	433,316,133.98
	12/25/07
	 	01/25/08
	 	424,117,246.88
	01/25/08
	 	02/25/08
	 	414,613,929.38
	02/25/08
	 	03/25/08
	 	404,828,098.59
	03/25/08
	 	04/25/08
	 	394,782,462.72
	04/25/08
	 	05/25/08
	 	384,500,433.10
	05/25/08
	 	06/25/08
	 	374,006,031.85
	06/25/08
	 	07/25/08
	 	363,323,795.83
	07/25/08
	 	08/25/08
	 	352,478,677.36
	08/25/08
	 	09/25/08
	 	341,951,592.72
	09/25/08
	 	10/25/08
	 	331,733,217.88
	10/25/08
	 	11/25/08
	 	321,814,502.12
	11/25/08
	 	12/25/08
	 	312,186,660.01
	12/25/08
	 	01/25/09
	 	302,841,163.64
	01/25/09
	 	02/25/09
	 	293,769,735.07
	02/25/09
	 	03/25/09
	 	284,964,339.00
	03/25/09
	 	04/25/09
	 	276,417,175.68
	04/25/09
	 	05/25/09
	 	268,120,673.99
	05/25/09
	 	06/25/09
	 	260,067,484.72
	06/25/09
	 	07/25/09
	 	252,250,474.11
	07/25/09
	 	08/25/09
	 	244,662,717.49
	08/25/09
	 	09/25/09
	 	237,297,493.21
	09/25/09
	 	10/25/09
	 	230,148,276.62
	10/25/09
	 	11/25/09
	 	223,208,734.35
	11/25/09
	 	12/25/09
	 	215,755,564.98
	12/25/09
	 	01/25/10
	 	207,838,947.95
	01/25/10
	 	02/25/10
	 	201,294,649.99
	02/25/10
	 	03/25/10
	 	193,363,817.13
	03/25/10
	 	04/25/10
	 	187,046,543.96
	04/25/10
	 	05/25/10
	 	179,477,994.98
	05/25/10
	 	06/25/10
	 	171,220,603.83
	06/25/10
	 	07/25/10
	 	165,081,609.29
	07/25/10
	 	08/25/10
	 	158,847,420.04
	08/25/10
	 	09/25/10
	 	156,055,347.49
	09/25/10
	 	10/25/10
	 	151,476,783.95
	10/25/10
	 	11/25/10
	 	147,032,506.68
	11/25/10
	 	12/25/10
	 	142,718,578.24
	12/25/10
	 	01/25/11
	 	138,531,176.63
	01/25/11
	 	02/25/11
	 	134,466,591.86
	02/25/11
	 	03/25/11
	 	130,521,222.74
	03/25/11
	 	04/25/11
	 	126,691,573.60
	04/25/11
	 	05/25/11
	 	122,974,251.29

24

 

	 	 	 	 	 
	From and including	 	To but excluding	 	Notional Amount (USD)
	05/25/11
	 	06/25/11
	 	119,365,962.10
	06/25/11
	 	07/25/11
	 	115,863,508.90
	07/25/11
	 	08/25/11
	 	112,463,788.28
	08/25/11
	 	09/25/11
	 	109,163,787.80
	09/25/11
	 	10/25/11
	 	105,960,583.34
	10/25/11
	 	11/25/11
	 	102,851,336.50
	11/25/11
	 	12/25/11
	 	99,833,292.11
	12/25/11
	 	01/25/12
	 	96,903,775.74
	01/25/12
	 	02/25/12
	 	94,060,191.40
	02/25/12
	 	03/25/12
	 	91,016,479.74
	03/25/12
	 	04/25/12
	 	88,325,605.38
	04/25/12
	 	05/25/12
	 	84,661,867.77
	05/25/12
	 	06/25/12
	 	72,858,303.40
	06/25/12
	 	07/25/12
	 	56,458,629.80
	07/25/12
	 	08/25/12
	 	52,344,185.65
	08/25/12
	 	09/25/12
	 	50,739,027.27
	09/25/12
	 	10/25/12
	 	49,180,947.52
	10/25/12
	 	11/25/12
	 	47,668,565.98
	11/25/12
	 	12/25/12
	 	46,200,542.73
	12/25/12
	 	01/25/13
	 	44,775,577.08
	01/25/13
	 	02/25/13
	 	43,392,406.52
	02/25/13
	 	03/25/13
	 	42,049,805.51
	03/25/13
	 	04/25/13
	 	40,746,584.45
	04/25/13
	 	05/25/13
	 	39,481,588.64
	05/25/13
	 	06/25/13
	 	38,253,697.18
	06/25/13
	 	07/25/13
	 	37,061,822.08
	07/25/13
	 	08/25/13
	 	35,904,907.21
	08/25/13
	 	09/25/13
	 	34,781,927.42
	09/25/13
	 	10/25/13
	 	33,691,887.61
	10/25/13
	 	11/25/13
	 	32,633,821.86
	11/25/13
	 	12/25/13
	 	31,343,075.69
	12/25/13
	 	01/25/14
	 	30,194,975.48
	01/25/14
	 	02/25/14
	 	28,991,739.06
	02/25/14
	 	03/25/14
	 	27,930,562.74
	03/25/14
	 	04/25/14
	 	26,828,075.99
	04/25/14
	 	05/25/14
	 	24,695,737.20
	05/25/14
	 	06/25/14
	 	16,551,897.06
	06/25/14
	 	07/25/14
	 	5,739,607.30
	07/25/14
	 	08/25/14
	 	3,021,545.75
	08/25/14
	 	09/25/14
	 	2,862,912.17
	09/25/14
	 	10/25/14
	 	2,708,945.33
	10/25/14
	 	11/25/14
	 	2,559,508.06
	11/25/14
	 	12/25/14
	 	2,414,467.21
	12/25/14
	 	01/25/15
	 	2,273,693.55
	01/25/15
	 	02/25/15
	 	2,137,061.65
	02/25/15
	 	03/25/15
	 	2,004,449.76
	03/25/15
	 	04/25/15
	 	1,875,739.69
	04/25/15
	 	05/25/15
	 	1,750,816.74
	05/25/15
	 	06/25/15
	 	1,629,569.59
	06/25/15
	 	07/25/15
	 	1,511,890.16

25

 

	 	 	 	 	 
	From and including	 	To but excluding	 	Notional Amount (USD)
	07/25/15
	 	08/25/15
	 	1,397,673.56
	08/25/15
	 	09/25/15
	 	1,286,818.00
	09/25/15
	 	10/25/15
	 	1,179,224.64
	10/25/15
	 	11/25/15
	 	1,074,797.59
	11/25/15
	 	12/25/15
	 	973,443.73
	12/25/15
	 	01/25/16
	 	875,072.73
	01/25/16
	 	02/25/16
	 	779,596.86
	02/25/16
	 	03/25/16
	 	686,930.99
	03/25/16
	 	04/25/16
	 	596,992.51
	04/25/16
	 	05/25/16
	 	509,701.22
	05/25/16
	 	06/25/16
	 	424,979.26
	06/25/16
	 	07/25/16
	 	342,751.09
	07/25/16
	 	08/25/16
	 	262,943.37
	08/25/16
	 	09/25/16
	 	185,484.91
	09/25/16
	 	10/25/16
	 	110,306.64
	10/25/16
	 	11/25/16
	 	37,341.49
	11/25/16
	 	12/25/16
	 	0.00

26

 

Annex A

Paragraph 13 of the Credit Support Annex

W-1-1

 

EXHIBIT W-2

FORM OF SWAP CREDIT SUPPORT ANNEX

Barclays Bank PLC

5 The North Colonnade

Canary Wharf

London E14 4BB

Tel +44 (0)20 7623 2323

	 	 	 
	DATE:

	 	July 26, 2007
	 
	 	 
	TO:

	 	The Bank of New York Trust Company, not individually,
but solely as trustee of the supplemental interest trust
with respect to the ChaseFlex Trust Series 2007-M1,
Multi-Class Mortgage Pass-Through Certificates 
(Mortgage
Pool I)
	TELEPHONE:

	 	713-483-6216
	FACSIMILE:

	 	713-483-6627
	 
	 	 
	FROM:

	 	Barclays Bank PLC
	 
	 	 
	SUBJECT:

	 	Fixed Income Derivatives Confirmation
	 
	 	 
	REFERENCE NUMBER:

	 	[•]B

The purpose of this long-form confirmation (“Confilimation”) is to confirm the terms and
conditions of the Transaction entered into on the Trade Date specified below (the “Transaction”)
between Barclays Bank PLC (“Party A”) and The Bank of New York Trust Company, not individually, but
solely as trustee (the “Trustee”) on behalf of the supplemental interest trust with respect to the
ChaseFlex Trust Series 2007-M1, Multi-Class Mortgage Pass-Through Certificates (Mortgage Pool I)
(the “Trust”) (“Party B”) created under the Pooling and Servicing Agreement, dated as of July 1,
2007, among Chase Mortgage Finance Corporation, as Depositor, JPMorgan Chase Bank, N.A., as
Servicer and Custodian, and The Bank of New York Trust Company, N.A., as Trustee and Paying Agent
(the “Base Agreement”). This Confirmation evidences a complete and binding agreement between you
and us to enter into the Transaction on the terms set forth below and replaces any previous
agreement between us with respect to the subject matter hereof. Item 2 of this Confirmation
constitutes a “Confirmation” as referred to in the ISDA Master Agreement (defined below); Item 3 of
this Confirmation constitutes a “Schedule” as referred to in the ISDA Master Agreement; and Annex A
hereto constitutes Paragraph 13 of a Credit Support Annex to the Schedule.

	2.	 	The Confirmation set forth at Item 2 hereof shall supplement, form a part of, and be subject
to an agreement in the form of the ISDA Master Agreement (Multicurrency — Cross Border) as
published and copyrighted in 1992 by the International Swaps and Derivatives Association, Inc.
(the “ISDA Master Agreement”), as if Party A and Party B had executed an agreement in such
form on the date hereof, with a Schedule as set forth in Item 3 of this Confirmation, and an
ISDA Credit Support Annex (Bilateral Form — ISDA Agreements Subject to New York Law Only
version) as published and copyrighted in 1994 by the International Swaps and Derivatives
Association, Inc., with Paragraph 13 thereof as set forth in Annex A hereto (the “Credit
Support Annex”). For the avoidance of doubt, the Transaction described herein shall be the
sole Transaction governed by such ISDA Master Agreement.

 

 

	2.	 	The terms of the particular Transaction to which this Confirmation relates are as follows:

	 	 	 	 	 
	 

	 	Notional Amount:
	 	With respect to any Calculation Period, the lesser of (a) the amount set
forth for such period on Schedule I attached hereto and (b) the Outstanding Certificate
Principal Balance of the Pool 1 Certificates (excluding the Class 1-CE Certificates).
	 
	 	 	 	 
	 

	 	Trade Date:
	 	July 16, 2007
	 
	 

	 	Effective Date:
	 	July 31, 2007
	 
	 	 	 	 
	 

	 	Termination Date:
	 	November 25, 2016, subject to adjustment in accordance with the Business
Day Convention; provided, however, that for the purpose of determining the final Fixed
Rate Payer Period End Date, Termination Date shall be subject to No Adjustment.
	 
	 	 	 	 
	 

	 	Fixed Amounts:	 	 
	 
	 	 	 	 
	 

	 	Fixed Rate Payer:

	 	Party B
	 
	 	 	 	 
	 

	 	Fixed Rate Payer
	 	 
	 

	 	Period End Dates:

	 	The 25th calendar day of each month during the Term of
this Transaction, commencing August 25, 2007, and ending on the Termination
Date, with No Adjustment.
	 
	 	 	 	 
	 

	 	Fixed Rate Payer
	 	 
	 

	 	Payment Dates:

	 	The 25th calendar day of each month during the Term of
this Transaction, commencing August 25, 2007, and ending on the Termination
Date, subject to adjustment in accordance with the Business Day Convention.
	 
	 	 	 	 
	 

	 	Fixed Rate:

	 	5.5625%
	 
	 	 	 	 
	 

	 	Fixed Rate Day
	 	 
	 

	 	Count Fraction:

	 	 30/360
	 
	 	 	 	 
	 

	 	Floating Amounts:	 	 
	 
	 

	 	Floating Rate Payer:

	 	 Party A
	 
	 	 	 	 
	 

	 	Floating Rate Payer
	 	 
	 

	 	Period End Dates:

	 	The 25th calendar day of each month during the Term of
this Transaction, commencing August 25, 2007, and ending on the Termination
Date, with No Adjustment.
	 
	 	 	 	 
	 

	 	Floating Rate Payer
	 	 
	 

	 	Payment Dates:

	 	Early Payment shall be applicable. Each Floating Rate Payer Payment
Date shall be two Business Days preceding each Floating Rate Payer Period End
Date. Notwithstanding anything to the contrary in Section 2(c) of the ISDA
Master Agreement, amounts that are payable with respect to the same
Calculation Period shall be netted, as provided in Section 2(c) of the ISDA
Master Agreement, even if such amounts are not due on the same Payment Date.
	 
	 	 	 	 
	 

	 	Floating Rate Option:

	 	USD-LIBOR-BBA

3

 

	 	 	 	 	 
	 

	 	Designated Maturity:

	 	One month
	 
	 	 	 	 
	 

	 	Floating Rate Day
	 	 
	 

	 	Count Fraction:

	 	Actual/360
	 
	 	 	 	 
	 

	 	Reset Dates:

	 	The first day of each Calculation Period.
	 
	 	 	 	 
	 

	 	Compounding:

	 	Inapplicable
	 
	 

	 	Business Days:

	 	New York
	 
	 	 	 	 
	 

	 	Business Day Convention: 

	 	Following
	 
	 	 	 	 
	 

	 	Calculation Agent:

	 	Party A

	 	 	 	 	 
	 	 	Account Details and Settlement Information:
	 

	 	Payments to Party A:

	 	Correspondent: BARCLAYS BANK PLC NEW YORK
	 

	 	 	 	FEED: 026002574
	 

	 	 	 	Beneficiary: BARCLAYS SWAPS
	 

	 	 	 	Beneficiary Account: 050-01922-8
	 
	 	 	 	 
	 

	 	Payments to Party B:

	 	The Bank of New York
	 

	 	 	 	ABA: 021-000-018
	 

	 	 	 	For credit to GLA: 211705
	 

	 	 	 	For final credit to: 226107
	 

	 	 	 	Account Name: CFLX 2007-M1 Supplemental Trust
	 

	 	 	 	Details of Payment: Mary Jo Davis, 713-483-6216

4

 

	3.	 	Provisions Deemed Incorporated in a Schedule to the ISDA Master Agreement:

Part 1. Termination Provisions.

For the purposes of this Agreement:-

	(a)	 	“Specified Entity” will not apply to Party A or Party B for any purpose.
	 
	(b)	 	“Specified Transaction” will have the meaning specified in Section 14.
	 
	(c)	 	Events of Default.
	 
	 	 	The statement below that an Event of Default will apply to a specific party means that upon
the occurrence of such an Event of Default with respect to such party, the other party shall
have the rights of a Non-defaulting Party under Section 6 of this Agreement; conversely, the
statement below that such event will not apply to a specific party means that the other
party shall not have such rights.

	 	(ix)	 	The “Failure to Pay or Deliver” provisions of Section 5(a)(i) will apply to
Party A and will apply to Party B.
	 
	 	(x)	 	The “Breach of Agreement” provisions of Section 5(a)(ii) will apply to Party A
and will not apply to Party B; provided, however, that notwithstanding anything to the
contrary in Section 5(a)(ii), any failure by Party A to comply with or perform any
obligation to be complied with or performed by Party A under the Credit Support Annex
shall not constitute an Event of Default under Section 5(a)(ii) unless (A) a Moody’s
Second Trigger Downgrade Event has occurred and been continuing for 30 or more Local
Business Days, (B) an S&P Required Ratings Downgrade Event has occurred and been
continuing for 10 or more Local Business Days, (C) a Fitch Required Ratings Downgrade
Event has occurred and been continuing for 30 or more days, or (D) a DBRS Required
Ratings Downgrade Event has occurred and been continuing for 30 or more days.
	 
	 	(xi)	 	The “Credit Support Default” provisions of Section 5(a)(iii) will apply to
Party A and will not apply to Party B except that Section 5(a)(iii)(1) will apply to
Party B solely in respect of Party B’s obligations under Paragraph 3(b) of the Credit
Support Annex; provided, however, that notwithstanding anything to the contrary in
Section 5(a)(iii)(1), any failure by Party A to comply with or perform any obligation
to be complied with or performed by Party A under the Credit Support Annex shall not
constitute an Event of Default under Section 5(a)(iii) unless (A) a Moody’s Second
Trigger Downgrade Event has occurred and been continuing for 30 or more Local Business
Days, (B) an S&P Required Ratings Downgrade Event has occurred and been continuing for
10 or more Local Business Days, (C) a Fitch Required Ratings Downgrade Event has
occurred and been continuing for 30 or more days, or (D) a DBRS Required Ratings
Downgrade Event has occurred and been continuing for 30 or more days.
	 
	 	(xii)	 	The “Misrepresentation” provisions of Section 5(a)(iv) will apply to Party A
and will not apply to Party B.
	 
	 	(xiii)	 	The “Default under Specified Transaction” provisions of Section 5(a)(v) will not
apply to Party A and will not apply to Party B.
	 
	 	(xiv)	 	The “Cross Default” provisions of Section 5(a)(vi) will apply to Party A and
will not apply to Party B. For purposes of Section 5(a)(vi), solely with respect to
Party A:
	 
	 	 	 	“Specified Indebtedness” will have the meaning specified in Section 14, except that
such term shall not include obligations in respect of deposits received in the
ordinary course of Party A’s banking business.
	 
	 	 	 	“Threshold Amount” means with respect to Party A an amount equal to three percent
(3%) of the Shareholders’ Equity of Party A or, if applicable, a guarantor under an
Eligible Guarantee with credit ratings at least equal to the S&P Required Ratings
Threshold, the Moody’s Second Trigger Threshold,

5

 

	 	 	 	the Fitch Approved Ratings Threshold and the DBRS Approved Ratings Threshold.
	 
	 	 	 	“Shareholders’ Equity” means with respect to an entity, at any time, such party’s
shareholders’ equity (on a consolidated basis) determined in accordance with
generally accepted accounting principles in such party’s jurisdiction of
incorporation or organization as at the end of such party’s most recently completed
fiscal year.
	 
	 	(xv)	 	The “Bankruptcy” provisions of Section 5(a)(vii) will apply to Party A and will
apply to Party B; provided, however, that, for purposes of applying Section 5(a)(vii)
to Party B: (A) Section 5(a)(vii)(2) shall not apply, (B) Section 5(a)(vii)(3) shall
not apply to any assignment, arrangement or composition that is effected by or pursuant
to the Base Agreement, (C) Section 5(a)(vii)(4) shall not apply to a proceeding
instituted, or a petition presented, by Party A or any of its Affiliates
(notwithstanding anything to the contrary in this Agreement, for purposes of Section
5(a)(vii)(4), Affiliate shall have the meaning set forth in Section 14 of the ISDA
Master Agreement), (D) Section 5(a)(vii)(6) shall not apply to any appointment that is
effected by or pursuant to the Base Agreement, or any appointment to which Party B has
not yet become subject; (E) Section 5(a)(vii) (7) shall not apply; (F) Section
5(a)(vii)(8) shall apply only to the extent of any event which has an effect analogous
to any of the events specified in clauses (1), (3), (4), (5) or (6) of Section
5(a)(vii), in each case as modified in this Part 1(c)(vii), and (G) Section
5(a)(vii)(9) shall not apply.
	 
	 	(xvi)	 	The “Merger Without Assumption” provisions of Section 5(a)(viii) will apply to
Party A and will not apply to Party B.

	(d)	 	Termination Events.
	 
	 	 	The statement below that a Termination Event will apply to a specific party means that upon
the occurrence of such a Termination Event, if such specific party is the Affected Party
with respect to a Tax Event, the Burdened Party with respect to a Tax Event Upon Merger
(except as noted below) or the non-Affected Party with respect to a Credit Event Upon
Merger, as the case may be, such specific party shall have the right to designate an Early
Termination Date in accordance with Section 6 of this Agreement; conversely, the statement
below that such an event will not apply to a specific party means that such party shall not
have such right; provided, however, with respect to “Illegality” the statement that such
event will apply to a specific party means that upon the occurrence of such a Termination
Event with respect to such party, either party shall have the right to designate an Early
Termination Date in accordance with Section 6 of this Agreement.

	 	(i)	 	The “Illegality” provisions of Section 5(b)(i) will apply to Party A and will apply to
Party B.
	 
	 	(ii)	 	The “Tax Event” provisions of Section 5(b)(ii) will apply to Party A except
that, for purposes of the application of Section 5(b)(ii) to Party A, Section 5(b)(ii)
is hereby amended by deleting the words “(x) any action taken by a taxing authority, or
brought in a court of competent jurisdiction, on or after the date on which a
Transaction is entered into (regardless of whether such action is taken or brought with
respect to a party to this Agreement) or (y)”, and the “Tax Event” provisions of
Section 5(b)(ii) will apply to Party B.
	 
	 	(iii)	 	The “Tax Event Upon Merger” provisions of Section 5(b)(iii) will apply to
Party A and will apply to Party B, provided that Party A shall not be entitled to
designate an Early Termination Date by reason of a Tax Event upon Merger in respect of
which it is the Affected Party.
	 
	 	(iv)	 	The “Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply to
Party A and will not apply to Party B.

	(e)	 	The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A and
will not apply to Party B.
	 
	(f)	 	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement:

	 	(iii)	 	Market Quotation will apply, provided, however, that, in the event of a
Derivative Provider Trigger Event, the following provisions will apply:

6

 

	 	(A)	 	The definition of Market Quotation in Section 14 shall be deleted
in its entirety and replaced with the following:
	 
	 	 	 	“Market Quotation” means, with respect to one or more Terminated
Transactions, a Firm Offer which is (1) made by a Reference Market-maker that
is an Eligible Replacement, (2) for an amount that would be paid to Party B
(expressed as a negative number) or by Party B (expressed as a positive
number) in consideration of an agreement between Party B and such Reference
Market-maker to enter into a Replacement Transaction, and (3) made on the
basis that Unpaid Amounts in respect of the Terminated Transaction or group
of Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included.
	 
	 	(B)	 	The definition of Settlement Amount shall be deleted in its
entirety and replaced with the following:
	 
	 	 	 	“Settlement Amount” means, with respect to any Early Termination Date, an
amount (as determined by Party B) equal to:

	 	(a)	 	if, on or prior to such Early Termination Date, a
Market Quotation for the relevant Terminated Transaction or group of
Terminated Transactions is accepted by Party B so as to become legally
binding, the Termination Currency Equivalent of the amount (whether
positive or negative) of such Market Quotation;
	 
	 	(b)	 	if, on such Early Termination Date, no Market
Quotation for the relevant Terminated Transaction or group of Terminated
Transactions has been accepted by Party B so as to become legally
binding and one or more Market Quotations from Approved Replacements
have been communicated to Party B and remain capable of becoming legally
binding upon acceptance by Party B, the Termination Currency Equivalent
of the amount (whether positive or negative) of the lowest of such
Market Quotations (for the avoidance of doubt, (i) a Market Quotation
expressed as a negative number is lower than a Market Quotation
expressed as a positive number and (ii) the lower of two Market
Quotations expressed as negative numbers is the one with the largest
absolute value); or
	 
	 	(c)	 	if, on such Early Termination Date, no Market
Quotation for the relevant Terminated Transaction or group of Terminated
Transactions is accepted by Party B so as to become legally binding and
no Market Quotation from an Approved Replacement has been communicated
to Party B and remains capable of becoming legally binding upon
acceptance by Party B, Party B’s Loss (whether positive or negative and
without reference to any Unpaid Amounts) for the relevant Terminated
Transaction or group of Terminated Transactions.”

	 	(C)	 	If Party B requests Party A in writing to obtain Market
Quotations, Party A shall use its reasonable efforts to do so before the Early
Termination Date.
	 
	 	(D)	 	If the Settlement Amount is a negative number, Section 6(e)(i)(3)
shall be deleted in its entirety and replaced with the following:

7

 

	 	 	 	“(3) Second Method and Market Quotation. If the Second Method and Market
Quotation apply, (I) Party B shall pay to Party A an amount equal to the
absolute value of the Settlement Amount in respect of the Terminated
Transactions, (II) Party B shall pay to Party A the Termination Currency
Equivalent of the Unpaid Amounts owing to Party A and (III) Party A shall pay
to Party B the Termination Currency Equivalent of the Unpaid Amounts owing to
Party B; provided, however, that (x) the amounts payable under the
immediately preceding clauses (II) and (III) shall be subject to netting in
accordance with Section 2(c) of this Agreement and (y) notwithstanding any
other provision of this Agreement, any amount payable by Party A under the
immediately preceding clause (III) shall not be netted against any amount
payable by Party B under the immediately preceding clause (I).”
	 
	 	(E)	 	At any time on or before the Early Termination Date at which two
or more Market Quotations from Approved Replacements have been communicated to
Party B and remain capable of becoming legally binding upon acceptance by Party
B, Party B shall be entitled to accept only the lowest of such Market Quotations
(for the avoidance of doubt, (i) a Market Quotation expressed as a negative
number is lower than a Market Quotation expressed as a positive number and (ii)
the lower of two Market Quotations expressed as negative numbers is the one with
the largest absolute value).

	 	(iv)	 	The Second Method will apply.

	(g)	 	“Termination Currency” means USD.
	 
	(h)	 	Additional Termination Events. Additional Termination Events will apply as provided in Part
5(c).

8

 

Part 2. Tax Matters.

	(a)	 	Tax Representations.

	 	(i)	 	Payer Representations. For the purpose of Section 3(e) of this Agreement:

	 	(A)	 	Party A makes the following representation(s):
	 
	 	 	 	None.
	 
	 	(B)	 	Party B makes the following representation(s):
	 
	 	 	 	None.

	 	(ii)	 	Payee Representations. For the purpose of Section 3(f) of this Agreement:

	 	(A)	 	Party A makes the following representation(s):
	 
	 	 	 	None.
	 
	 	(B)	 	Party B makes the following representation(s):
	 
	 	 	 	None.

	(b)	 	Tax Provisions.

	 	(i)	 	Indemnifiable Tax. Notwithstanding the definition of “Indemnifiable Tax” in
Section 14 of this Agreement, all Taxes in relation to payments by Party A shall be
Indemnifiable Taxes unless (i) such Taxes are assessed directly against Party B and not
by deduction or withholding by Party A or (ii) arise as a result of a Change in Tax Law
(in which case such Tax shall be an Indemnifiable Tax only if such Tax satisfies the
definition of Indemnifiable Tax provided in Section 14). In relation to payments by
Party B, no Tax shall be an Indemnifiable Tax, unless the Tax is due to a Change in Tax
Law and otherwise satisfies the definition of Indemnifiable Tax provided in Section 14.

9

 

Part 3. Agreement to Deliver Documents.

	(a)	 	For the purpose of Section 4(a)(i), tax forms, documents, or certificates to be delivered
are:

	 	 	 	 	 
	Party required to	 	Form/Document/	 	Date by which to
	deliver document	 	Certificate	 	be delivered
	Party A and Party B

	 	Any form or document
required or reasonably
requested to allow the
other party to make
payments under the
Agreement without any
deduction or
withholding for or on
account of any Tax, or
with such deduction or
withholding at a
reduced rate.
	 	Promptly upon
reasonable demand by
the other party.

	(b)	 	For the purpose of Section 4(a)(ii), other documents to be delivered are:

	 	 	 	 	 	 	 
	Party required	 	 	 	 	 	Covered by
	to deliver	 	Form/Document/	 	Date by which to	 	Section 3(d)
	document	 	Certificate	 	be delivered	 	Representation
	Party A and
Party B

	 	Any documents required by the
receiving party to evidence the
authority of the delivering party or
its Credit Support Provider, if any,
for it to execute and deliver the
Agreement, each Confirmation, and any
Credit Support Documents to which it
is a party, and to evidence the
authority of the delivering party or
its Credit Support Provider to
perform its obligations under the
Agreement, each Confirmation and any
Credit Support Document, as the case
may be
	 	Upon the execution
and delivery of
this Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Party A and
Party B

	 	A certificate of an authorized
officer of the party, as to the
incumbency and authority of the
respective officers of the party
signing the Agreement, each
Confirmation, and any relevant Credit
Support Document, as the case may be
	 	Upon the execution
and delivery of
this Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	Annual Report of Party A containing
consolidated financial statements
certified by independent certified
public accountants and prepared in
accordance with generally accepted
accounting principles in the country
in which Party A is organized
	 	Promptly upon

request after

becoming publicly

available
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	Opinions of counsel to Party A
substantially in the form of Exhibit
A to this Confirmation
	 	Upon the execution
and delivery of
this Agreement
	 	No
	 
	 	 	 	 	 	 
	Party B

	 	An opinion of counsel to Party B
reasonably satisfactory to Party A.
	 	Upon the execution
and delivery of
this Agreement
	 	No
	 
	 	 	 	 	 	 
	Party B

	 	An executed copy of the Base Agreement
	 	Within 30 days
after the date of
this Agreement.
	 	No

Part 4. Miscellaneous.

	(a)	 	Address for Notices: For the purposes of Section 12(a) of this Agreement:
	 
	 	 	Address for notices or communications to Party A:

	 	 	 	 	 
	 

	 	Address:
	 	5 The North Colonnade
	 

	 	 	 	Canary Wharf
	 

	 	 	 	London E14 4BB

10

 

	 	 	 	 	 
	 

	 	Facsimile:
	 	44(20) 777 36461
	 

	 	Phone:
	 	44(20) 777 36810
	 
	 	 	 	 
	 	 	(For all purposes)
	 
	 	 	 	 
	 	 	Address for notices or communications to Party B:

	 	 	 	 	 
	 

	 	Address:
	 	The Bank of New York Trust Company
	 

	 	 	 	601 Travis, 16th Floor
	 

	 	 	 	Houston, Texas 77002
	 

	 	Facsimile:
	 	(713) 483-6627
	 

	 	Phone:
	 	(713) 483-6216

	 	 	(For all purposes)
	 
	(b)	 	Process Agent. For the purpose of Section 13(c):
	 
	 	 	Party A appoints as its Process Agent: Not applicable.
	 
	 	 	Party B appoints as its Process Agent: Not applicable.
	 
	(c)	 	Offices. The provisions of Section 10(a) will apply to this Agreement.
	 
	(d)	 	Multibranch Party. For the purpose of Section 10(c) of this Agreement:
	 
	 	 	Party A is a Multibranch Party and may act through its London and New York Offices.
	 
	 	 	Party B is not a Multibranch Party.
	 
	(e)	 	Calculation Agent. The Calculation Agent is Party A; provided, however, that if an Event of
Default shall have occurred with respect to Party A, Party B shall have the right to appoint
as Calculation Agent a financial institution which would qualify as a Reference Market-maker,
reasonably acceptable to Party A, the cost for which shall be borne by Party A.
	 
	(f)	 	Credit Support Document.

	 	 	 	 	 
	 

	 	Party A:
	 	The Credit Support Annex, and any guarantee in support of Party A’s
obligations under this Agreement.
	 
	 	 	 	 
	 

	 	Party B:
	 	The Credit Support Annex, solely in respect of Party B’s obligations under
Paragraph 3(b) of the Credit Support Annex.

	(g)	 	Credit Support Provider.

	 	 	 	 	 
	 

	 	Party A:
	 	The guarantor under any guarantee in support of Party A’s obligations under
this Agreement.
	 
	 	 	 	 
	 

	 	Party B:
	 	None.

	(h)	 	Governing Law. The parties to this Agreement hereby agree that the law of the State of New
York shall govern their rights and duties in whole (including any claim or controversy arising
out of or relating to this Agreement), without regard to the conflict of law provisions
thereof other than New York General Obligations Law Sections 5-1401 and 5-1402.
	 
	(i)	 	Netting of Payments. Subparagraph (ii) of Section 2(c) will apply to each Transaction
hereunder.
	 
	(j)	 	Affiliate. “Affiliate” shall have the meaning assigned thereto in Section 14; provided,
however, that Party B shall be deemed to have no Affiliates for purposes of this Agreement,
including for purposes of Section 6(b)(ii).

11

 

Part 5. Other Provisions.

	(a)	 	Definitions. Unless otherwise specified in a Confirmation, this Agreement and each
Transaction under this Agreement are subject to the 2000 ISDA Definitions as published and
copyrighted in 2000 by the International Swaps and Derivatives Association, Inc. (the
“Definitions”), and will be governed in all relevant respects by the provisions set forth in
the Definitions, without regard to any amendment to the Definitions subsequent to the date
hereof. The provisions of the Definitions are hereby incorporated by reference in and shall
be deemed a part of this Agreement, except that (i) references in the Definitions to a “Swap
Transaction” shall be deemed references to a “Transaction” for purposes of this Agreement, and
(ii) references to a “Transaction” in this Agreement shall be deemed references to a “Swap
Transaction” for purposes of the Definitions. Each term capitalized but not defined in this
Agreement shall have the meaning assigned thereto in the Base Agreement.
	 
	 	 	Each reference herein to a “Section” (unless specifically referencing the Base Agreement) or
to a “Section” “of this Agreement” will be construed as a reference to a Section of the ISDA
Master Agreement; each herein reference to a “Part” will be construed as a reference to the
Schedule to the ISDA Master Agreement; each reference herein to a “Paragraph” will be
construed as a reference to a Paragraph of the Credit Support Annex.
	 
	(b)	 	Amendments to ISDA Master Agreement.

	 	(i)	 	Single Agreement. Section 1(c) is hereby amended by the adding the words
“including, for the avoidance of doubt, the Credit Support Annex” after the words
“Master Agreement”.
	 
	 	(ii)	 	Change of Account. Section 2(b) is hereby amended by the addition of the
following after the word “delivery” in the first line thereof: “to another account in
the same legal and tax jurisdiction as the original account”.
	 
	 	(iii)	 	Representations. Section 3 is hereby amended by adding at the end thereof the
following subsection (g):

	 	“(g)	 	Relationship Between Parties.

	 	(1)	 	Non-Reliance. It is acting for its own account,
and it has made its own independent decisions to enter into that
Transaction and as to whether that Transaction is appropriate or proper
for it based upon its own judgment and upon advice from such advisors as
it has deemed necessary. It is not relying on any communication
(written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction, it being understood that
information and explanations related to the terms and conditions of a
Transaction will not be considered investment advice or a recommendation
to enter into that Transaction. No communication (written or oral)
received from the other party will be deemed to be an assurance or
guarantee as to the expected results of that Transaction.
	 
	 	(2)	 	Assessment and Understanding. It is capable of
assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the
terms, conditions and risks of that Transaction. It is also capable of
assuming, and assumes, the risks of that Transaction.
	 
	 	(3)	 	Purpose. It is entering into the Transaction for
the purposes of managing its borrowings or investments, hedging its
underlying assets or liabilities or in connection with a line of
business.
	 
	 	(4)	 	Status of Parties. The other party is not acting
as fiduciary for or advisor to it in respect of the Transaction.
	 
	 	(5)	 	Eligible Contract Participant. It is an
“eligible contract participant” as defined in Section 1a(12) of the
Commodity Exchange Act, as amended.”

	 	(v)	 	Transfer to Avoid Termination Event. Section 6(b)(ii) is hereby amended by (i)
deleting the words “or if a Tax Event Upon Merger occurs and the Burdened Party is the
Affected Party,” and (ii) by deleting the words “to transfer” and inserting the words
“to effect a Permitted Transfer” in lieu thereof.

12

 

	 	(vi)	 	Jurisdiction. Section 13(b) is hereby amended by: (i) deleting in the second
line of subparagraph (i) thereof the word “non-”, (ii) deleting “; and” from the end of
subparagraph (i) and inserting “.” in lieu thereof, and (iii) deleting the final
paragraph thereof.
	 
	 	(vii)	 	Local Business Day. The definition of Local Business Day in Section 14 is
hereby amended by the addition of the words “or any Credit Support Document” after
“Section 2(a)(i)” and the addition of the words “or Credit Support Document” after
“Confirmation”.

	(c)	 	Additional Termination Events. The following Additional Termination Events will apply:

	 	(iii)	 	First Rating Trigger Collateral. If Party A has failed to comply with or
perform any obligation to be complied with or performed by Party A in accordance with
the Credit Support Annex and such failure has not given rise to an Event of Default
under Section 5(a)(i) or Section 5(a)(iii), then an Additional Termination Event shall
have occurred with respect to Party A and Party A shall be the sole Affected Party with
respect to such Additional Termination Event.
	 
	 	(iv)	 	Second Rating Trigger Replacement. The occurrence of any event described in
this Part 5(c)(ii) shall constitute an Additional Termination Event with respect to
Party A and Party A shall be the sole Affected Party with respect to such Additional
Termination Event.

	 	(A)	 	A Moody’s Second Trigger Downgrade Event has occurred and been
continuing for 30 or more Local Business Days and at least one Eligible
Replacement has made a Firm Offer that would, assuming the occurrence of an
Early Termination Date, qualify as a Market Quotation (on the basis that
paragraphs (i) and (ii) of Part 1(f) (Payments on Early Termination) apply) and
which remains capable of becoming legally binding upon acceptance.
	 
	 	(B)	 	An S&P Required Ratings Downgrade Event has occurred and been
continuing for 60 or more calendar days.
	 
	 	(C)	 	A Fitch Required Ratings Downgrade Event has occurred and been
continuing for 30 or more calendar days.
	 
	 	(D)	 	A DBRS Required Ratings Downgrade Event has occurred and been
continuing for 30 or more calendar days.

	 	(iii)	 	Amendment of Base Agreement. If, without the prior written consent of Party A
where such consent is required under the Base Agreement, an amendment is made to the
Base Agreement which amendment could reasonably be expected to have a material adverse
effect on the interests of Party A (excluding, for the avoidance of doubt, any
amendment to the Base Agreement that is entered into solely for the purpose of
appointing a successor servicer, master servicer, securities administrator, trustee or
other service provider) under this Agreement, an Additional Termination Event shall
have occurred with respect to Party B and Party B shall be the sole Affected Party with
respect to such Additional Termination Event; provided, however, that notwithstanding
Section 6(b)(iv) of this Agreement, both Party A and Party B shall have the right to
designate an Early Termination Date in respect of this Additional Termination Event.
	 
	 	(iv)	 	Termination of Trust. If, the Trust is terminated pursuant to the Base
Agreement and all rated certificates or notes, as applicable, have been paid in
accordance with the terms of the Base Agreement, an Additional Termination Event shall
have occurred with respect to Party B and Party B shall be the sole Affected Party with
respect to such Additional Termination Event; provided, however, that notwithstanding
Section 6(b)(iv) of this Agreement, both Party A and Party B shall have the right to
designate an Early Termination Date in respect of this Additional Termination Event.
	 
	 	(vii)	 	Securitization Unwind. If a Securitization Unwind (as hereinafter defined)
occurs, an Additional Termination Event shall have occurred with respect to Party B and
Party B shall be the sole Affected Party with respect to such Additional Termination
Event; provided, however, that notwithstanding Section 6(b)(iv) of this Agreement, both
Party A and Party B shall have the right to designate an Early Termination Date in
respect of this Additional Termination Event. The Early Termination Date in

13

 

	 	 	 	respect of such Additional Termination Event shall be not earlier than the latest
possible date that the amount of a termination payment may be submitted to a party
exercising a clean-up call in order to be included in the clean-up call price. As
used herein, “Securitization Unwind” means notice of the requisite amount of a
party’s intention to exercise its option to purchase the underlying mortgage loans
pursuant the Base Agreement is given by the Trustee to certificateholders or
noteholders, as applicable, pursuant to the Base Agreement.
	 
	 	(viii)	 	Regulation AB. If, upon the occurrence of a Swap Disclosure Event (as defined below)
Party A has not, within 10 days after such Swap Disclosure Event complied with any of
the provisions set forth in clause 3 of this Part 5(c)(vi), then an Additional
Termination Event shall have occurred with respect to Party A and Party A shall be the
sole Affected Party with respect to such Additional Termination Event.

	 	1.	 	Party A agrees and acknowledges that Chase Mortgage Finance
Corporation, not in its individual capacity but solely as depositor (the
“Depositor”), is required under Regulation AB under the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) (“Regulation AB”), to disclose certain financial information regarding
Party A or its group of affiliated entities, if applicable, depending on the
aggregate “significance percentage” of this Agreement and any other derivative
contracts between Party A or its group of affiliated entities, if applicable,
and Counterparty, as calculated from time to time in accordance with Item 1115
of Regulation AB.
	 
	 	2.	 	It shall be a swap disclosure event (“Swap Disclosure Event”) if,
on any Business Day after the date hereof, Depositor requests from Party A the
applicable financial information described in Item 1115 of Regulation AB (the
“Swap Financial Disclosure”).
	 
	 	3.	 	Upon the occurrence of a Swap Disclosure Event, Party A will, if
such Swap Financial Disclosure is not reasonably publicly available on “EDGAR”
or Party A’s internet home page, promptly upon reasonable written request (and
at its own expense), (a) provide to Depositor the Swap Financial Disclosure, (b)
secure another entity to replace Party A as party to this Agreement on terms
substantially similar to this Agreement and subject to prior notification to the
Rating Agencies, which entity (or a guarantor therefor) meets or exceeds the
Approved Rating Thresholds (and which satisfies the Rating Agency Condition) and
which entity (x) is able to comply with the requirements of Item 1115 of
Regulation AB and (y) indemnifies and holds harmless Depositor, its respective
directors or officers and any person controlling Depositor, from and against any
and all losses, claims, damages and liabilities caused by any untrue statement
or alleged untrue statement of a material fact contained in any Swap Financial
Disclosure or caused by any omission or alleged omission to state in any such
Swap Financial Disclosure a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, or (c) obtain a guaranty of Party A’s
obligations under this Agreement from an affiliate of Party A that satisfies the
Rating Agency Condition and that is able to comply with the financial
information disclosure requirements of Item 1115 of Regulation AB, such that
disclosure provided in respect of the affiliate will satisfy any disclosure
requirements applicable to the Swap Provider, and cause such affiliate to
provide Swap Financial Disclosure. If permitted by Regulation AB, any required
Swap Financial Disclosure may be provided by incorporation by reference from
reports filed pursuant to the Exchange Act.
	 
	 	4.	 	Party A and any guarantor agree that, in the event that Party A
provides Swap Financial Disclosure to Depositor in accordance with Part
5(c)(vi)(3) or causes its affiliate to provide Swap Financial Disclosure to
Depositor in accordance with Part 5(c)(vi)(3), Party A and any such guarantor
will indemnify and hold harmless Depositor, its respective directors or officers
and any person controlling Depositor, from and against any and all losses,
claims, damages and liabilities caused by any untrue statement or alleged untrue
statement of a material fact contained in such Swap Financial Disclosure or
caused by any omission or alleged omission to state in such Swap Financial
Disclosure a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading.

	(d)	 	Required Ratings Downgrade Event. In the event that no Relevant Entity has credit ratings at
least equal to the Required Ratings Threshold of each relevant Rating Agency (such event, a
“Required Ratings Downgrade Event”), then Party A shall, as soon as reasonably practicable and
so long as a Required Ratings Downgrade Event is in effect, at its own expense, use
commercially reasonable efforts to procure either (A) a Permitted Transfer or (B) an Eligible
Guarantee.

14

 

	(e)	 	Transfers.

	 	(i)	 	Section 7 is hereby amended to read in its entirety as follows:
	 
	 	 	 	“Subject to Section 6(b)(ii), neither Party A nor Party B is permitted to assign,
novate or transfer (whether by way of security or otherwise) as a whole or in part
any of its rights, obligations or interests under the Agreement or any Transaction
without (a) the prior written consent of the other party and (b) satisfaction of the
Rating Agency Condition, except that:

	 	(d)	 	a party may make such a transfer of this Agreement pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity (but without prejudice to any
other right or remedy under this Agreement);
	 
	 	(e)	 	a party may make such a transfer of all or any part of its
interest in any amount payable to it from a Defaulting Party under Section 6(e);
and
	 
	 	(f)	 	Party A may transfer or assign this Agreement to any Person,
including, without limitation, another of Party A’s offices, branches or
affiliates (any such Person, office, branch or affiliate, a “Transferee”) on at
least five Business Days’ prior written notice to Party B and the Trustee;
provided that, with respect to this clause (c), (A) as of the date of such
transfer the Transferee will not be required to withhold or deduct on account of
a Tax from any payments under this Agreement unless the Transferee will be
required to make payments of additional amounts pursuant to Section 2(d)(i)(4)
of this Agreement in respect of such Tax (B) a Termination Event or Event of
Default does not occur under this Agreement as a result of such transfer; (C)
such notice is accompanied by a written instrument pursuant to which the
Transferee acquires and assumes the rights and obligations of Party A so
transferred; (D) Party A will be responsible for any costs or expenses incurred
in connection with such transfer and (E) Party A obtains in respect of such
transfer a written acknowledgement of satisfaction of the Rating Agency
Condition (except for Moody’s). Party B will execute such documentation as is
reasonably deemed necessary by Party A for the effectuation of any such
transfer.”

	 	(ii)	 	If an Eligible Replacement has made a Firm Offer (which remains an offer that
will become legally binding upon acceptance by Party B) to be the transferee pursuant
to a Permitted Transfer, Party B shall, at Party A’s written request and at Party A’s
expense, take any reasonable steps required to be taken by Party B to effect such
transfer.

	(f)	 	Non-Recourse. Party A acknowledges and agree that, notwithstanding any provision in this
Agreement to the contrary, the obligations of Party B hereunder are limited recourse
obligations of Party B, payable solely from the Trust and the proceeds thereof, in accordance
with the priority of payments and other terms of the Base Agreement and that Party A will not
have any recourse to any of the directors, officers, employees, shareholders or affiliates of
Party B with respect to any claims, losses, damages, liabilities, indemnities or other
obligations in connection with any transactions contemplated hereby. In the event that the
Trust and the proceeds thereof, should be insufficient to satisfy all claims outstanding and
following the realization of the account held by the Trust and the proceeds thereof, any
claims against or obligations of Party B under the ISDA Master Agreement or any other
confirmation thereunder still outstanding shall be extinguished and thereafter not revive.
The Trustee shall not have liability for any failure or delay in making a payment hereunder to
Party A due to any failure or delay in receiving amounts in the account held by the Trust from
the Trust created pursuant to the Base Agreement. This provision will survive the termination
of this Agreement.
	 
	(g)	 	Rating Agency Notifications. Notwithstanding any other provision of this Agreement, no Early
Termination Date shall be effectively designated hereunder by Party B and no transfer of any
rights or obligations under this Agreement shall be made by either party unless each Rating
Agency has been given prior written notice of such designation or transfer.
	 
	(h)	 	No Set-off. Except as expressly provided for in Section 2(c), Section 6 or Part 1(f)(i)(D)
hereof, and notwithstanding any other provision of this Agreement or any other existing or
future agreement, each party irrevocably waives any and all rights it may have to set off,
net, recoup or otherwise withhold or suspend or condition payment or performance of any
obligation between it and the other party hereunder against any

15

 

	 	 	obligation between it and the other party under any other agreements. Section 6(e) shall be
amended by deleting the following sentence: “The amount, if any, payable in respect of an
Early Termination Date and determined pursuant to this Section will be subject to any
Set-off.”.
	 
	(i)	 	Amendment. Notwithstanding any provision to the contrary in this Agreement, no amendment of
either this Agreement or any Transaction under this Agreement shall be permitted by either
party unless each of the Rating Agencies has been provided prior written notice of the same
and such amendment satisfies the Rating Agency Condition with respect to S&P, Fitch and DBRS.
	 
	(j)	 	Notice of Certain Events or Circumstances. Each Party agrees, upon learning of the
occurrence or existence of any event or condition that constitutes (or that with the giving of
notice or passage of time or both would constitute) an Event of Default or Termination Event
with respect to such party, promptly to give the other Party and to each Rating Agency notice
of such event or condition; provided that failure to provide notice of such event or condition
pursuant to this Part 5(j) shall not constitute an Event of Default or a Termination Event.
	 
	(k)	 	Proceedings. No Relevant Entity shall institute against, or cause any other person to
institute against, or join any other person in instituting against Party B, the Trust, or the
trust formed pursuant to the Base Agreement, in any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings under any federal or state
bankruptcy or similar law for a period of one year (or, if longer, the applicable preference
period) and one day following payment in full of the Certificates and any Notes; provided,
however, that nothing will preclude, or be deemed to stop, Party A (i) from taking any action
prior to the expiration of the aforementioned one year and one day period, or if longer the
applicable preference period then in effect, in (A) any case or proceeding voluntarily filed
or commenced by Party B or (B) any involuntary insolvency proceeding filed or commenced by a
Person other than Party A, or (ii) from commencing against Party B or any of the Collateral
any legal action which is not a bankruptcy, reorganization, arrangement, insolvency,
moratorium, liquidation or similar proceeding. This provision will survive the termination of
this Agreement.
	 
	(l)	 	Trustee Liability Limitations. It is expressly understood and agreed by the parties hereto
that (a) this Agreement is executed by The Bank of New York Trust Company (“X”) not in its
individual capacity, but solely as Trustee under the Base Agreement in the exercise of the
powers and authority conferred and invested in it thereunder; (b) X has been directed pursuant
to the Base Agreement to enter into this Agreement and to perform its obligations hereunder;
(c) each of the representations, undertakings and agreements herein made on behalf of the
Trust is made and intended not as personal representations of the Trustee but is made and
intended for the purpose of binding only the Trust; and (d) under no circumstances shall X in
its individual capacity be personally liable for any payments hereunder or for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken under this
Agreement.
	 
	(m)	 	Severability. If any term, provision, covenant, or condition of this Agreement, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable
(in whole or in part) in any respect, the remaining terms, provisions, covenants, and
conditions hereof shall continue in full force and effect as if this Agreement had been
executed with the invalid or unenforceable portion eliminated, so long as this Agreement as so
modified continues to express, without material change, the original intentions of the parties
as to the subject matter of this Agreement and the deletion of such portion of this Agreement
will not substantially impair the respective benefits or expectations of the parties;
provided, however, that this severability provision shall not be applicable if any provision
of Section 2, 5, 6, or 13 (or any definition or provision in Section 14 to the extent it
relates to, or is used in or in connection with any such Section) shall be so held to be
invalid or unenforceable.
	 
	 	 	The parties shall endeavor to engage in good faith negotiations to replace any invalid or
unenforceable term, provision, covenant or condition with a valid or enforceable term,
provision, covenant or condition, the economic effect of which comes as close as possible to
that of the invalid or unenforceable term, provision, covenant or condition.
	 
	(n)	 	Consent to Recording. Each party hereto consents to the monitoring or recording, at any time
and from time to time, by the other party of any and all communications between trading,
marketing, and operations personnel of the parties and their Affiliates, waives any further
notice of such monitoring or recording, and agrees to notify such personnel of such monitoring
or recording.

16

 

	(o)	 	Waiver of Jury Trial. Each party waives any right it may have to a trial by jury in respect
of any in respect of any suit, action or proceeding relating to this Agreement or any Credit
Support Document.
	 
	(p)	 	Regarding Party A. Party B acknowledges and agrees that Party A, in its capacity as swap
provider, has had and will have no involvement in and, accordingly Party A accepts no
responsibility for: (i) the establishment, structure, or choice of assets of Party B; (ii)
the selection of any person performing services for or acting on behalf of Party B; (iii) the
selection of Party A as the Counterparty; (iv) the terms of the Certificates; (v) the
preparation of or passing on the disclosure and other information (other than disclosure and
information furnished by Party A) contained in any offering circular for the Certificates, the
Base Agreement, or any other agreements or documents used by Party B or any other party in
connection with the marketing and sale of the Certificates; (vi) the ongoing operations and
administration of Party B, including the furnishing of any information to Party B which is not
specifically required under this Agreement; or (vii) any other aspect of Party B’s existence.
	 
	(q)	 	Rating Agency Requirements. Notwithstanding anything to the contrary herein, to the extent
any Rating Agency does not assign a rating to the notes or certificates, as applicable, issued
pursuant to the Base Agreement, references to the requirements of such Rating Agency herein
shall be ignored for purposes of this Agreement.
	 
	(r)	 	Additional Definitions.
	 
	 	 	As used in this Agreement, the following terms shall have the meanings set forth below,
unless the context clearly requires otherwise:

“Approved Ratings Threshold” means each of the S&P Approved Ratings Threshold, the Moody’s First
Trigger Ratings Threshold, the Fitch Approved Ratings Threshold and the DBRS Approved Ratings
Threshold.

“Approved Replacement” means, with respect to a Market Quotation, an entity making such Market
Quotation, which entity would satisfy conditions (a), (b), (c) and (d) of the definition of
Permitted Transfer (as determined by Party B in its sole discretion, acting in a commercially
reasonable manner) if such entity were a Transferee, as defined in the definition of Permitted
Transfer.

“DBRS” means Dominion Bond Rating Service, or any successor thereto.

“DBRS Approved Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
DBRS of “AA(low)” and a short-term unsecured and unsubordinated debt rating from DBRS of
“R-1(middle)”.

“DBRS Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings from DBRS
at least equal to the DBRS Required Ratings Threshold.

“DBRS Required Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
DBRS of “BBB”.

“Derivative Provider Trigger Event” means (i) an Event of Default with respect to which Party A is
a Defaulting Party, (ii) a Termination Event (other than an Illegality or Tax Event) with respect
to which Party A is the sole Affected Party or (iii) an Additional Termination Event with respect
to which Party A is the sole Affected Party.

“Eligible Guarantee” means an unconditional and irrevocable guarantee of all present and future
obligations of Party A under this Agreement (or, solely for purposes of the definition of Eligible
Replacement, all present and future obligations of such Eligible Replacement under this Agreement
or its replacement, as applicable) which is provided by a guarantor as principal debtor rather than
surety and which is directly enforceable by Party B, the form and substance of which

17

 

guarantee are subject to the Rating Agency Condition with respect to S&P, Fitch and DBRS, and
either (A) a law firm has given a legal opinion confirming that none of the guarantor’s payments to
Party B under such guarantee will be subject to deduction or Tax collected by withholding, or (B)
such guarantee provides that, in the event that any of such guarantor’s payments to Party B are
subject to deduction or Tax collected by withholding, such guarantor is required to pay such
additional amount as is necessary to ensure that the net amount actually received by Party B (free
and clear of any Tax collected by withholding) will equal the full amount Party B would have
received had no such deduction or withholding been required, or (C) in the event that any payment
under such guarantee is made net of deduction or withholding for Tax, Party A is required, under
Section 2(a)(i), to make such additional payment as is necessary to ensure that the net amount
actually received by Party B from the guarantor will equal the full amount Party B would have
received had no such deduction or withholding been required.

“Eligible Replacement” means an entity (A) (I) (x) which has credit ratings from S&P at least equal
to the S&P Required Ratings Threshold or (y) all present and future obligations of which entity
owing to Party B under this Agreement (or its replacement, as applicable) are guaranteed pursuant
to an Eligible Guarantee provided by a guarantor with credit ratings from S&P at least equal to the
S&P Required Ratings Threshold, in either case if S&P is a Rating Agency, (II) (x) which has credit
ratings from Moody’s at least equal to the Moody’s Second Trigger Ratings Threshold or (y) all
present and future obligations of which entity owing to Party B under this Agreement (or its
replacement, as applicable) are guaranteed pursuant to an Eligible Guarantee provided by a
guarantor with credit ratings from Moody’s at least equal to the Moody’s Second Trigger Ratings
Threshold, in either case if Moody’s is a Rating Agency, (III) (x) which has credit ratings from
Fitch at least equal to the applicable Fitch Approved Ratings Threshold or (y) all present and
future obligations of which entity owing to Party B under this Agreement (or its replacement, as
applicable) are guaranteed pursuant to an Eligible Guarantee provided by a guarantor with credit
ratings from Fitch at least equal to the Fitch Approved Ratings Threshold, in either case if Fitch
is a Rating Agency, and (IV) (x) which has credit ratings from DBRS at least equal to the
applicable DBRS Approved Ratings Threshold or (y) all present and future obligations of which
entity owing to Party B under this Agreement (or its replacement, as applicable) are guaranteed
pursuant to an Eligible Guarantee provided by a guarantor with credit ratings from DBRS at least
equal to the DBRS Approved Ratings Threshold, in either case if DBRS is a Rating Agency, and (B)
that has executed or agrees to execute a Regulation AB indemnification agreement, if applicable.

“Financial Institution” means a bank, broker/dealer, insurance company, structured investment
company or derivative product company.

“Firm Offer” means a quotation from an Eligible Replacement (i) in an amount equal to the actual
amount payable by or to Party B in consideration of an agreement between Party B and such Eligible
Replacement to replace Party A as the counterparty to this Agreement by way of novation or, if such
novation is not possible, an agreement between Party B and such Eligible Replacement to enter into
a Replacement Transaction (assuming that all Transactions hereunder become Terminated
Transactions), and (ii) that constitutes an offer by such Eligible Replacement to replace Party A
as the counterparty to this Agreement or enter a Replacement Transaction that will become legally
binding upon such Eligible Replacement upon acceptance by Party B.

“Fitch” means Fitch Ratings Ltd., or any successor thereto.

“Fitch Approved Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
Fitch of “A” and a short-term unsecured and unsubordinated debt rating from Fitch of “F1”.

“Fitch Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings from
Fitch at least equal to the Fitch Required Ratings Threshold.

18

 

“Fitch Required Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a long-term unsecured and unsubordinated debt rating from
Fitch of “BBB-”.

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

“Moody’s First Trigger Ratings Threshold” means, with respect to Party A, the guarantor under an
Eligible Guarantee, or an Eligible Replacement, (i) if such entity has a short-term unsecured and
unsubordinated debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating or
counterparty rating from Moody’s of “A2” and a short-term unsecured and unsubordinated debt rating
from Moody’s of “Prime-1”, or (ii) if such entity does not have a short-term unsecured and
unsubordinated debt rating or counterparty rating from Moody’s, a long-term unsecured and
unsubordinated debt rating or counterparty rating from Moody’s of “A1”.

“Moody’s Second Trigger Downgrade Event” means that no Relevant Entity has credit ratings from
Moody’s at least equal to the Moody’s Second Trigger Ratings Threshold.

“Moody’s Second Trigger Ratings Threshold” means, with respect to Party A, the guarantor under an
Eligible Guarantee, or an Eligible Replacement, (i) if such entity has a short-term unsecured and
unsubordinated debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating or
counterparty rating from Moody’s of “A3” and a short-term unsecured and unsubordinated debt rating
from Moody’s of “Prime-2”, or (ii) if such entity does not have a short-term unsecured and
unsubordinated debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating or
counterparty rating from Moody’s of “A3”.

“Permitted Transfer” means a transfer by novation by Party A to a transferee (the “Transferee”) of
all, but not less than all, of Party A’s rights, liabilities, duties and obligations under this
Agreement, with respect to which transfer each of the following conditions is satisfied: (a) the
Transferee is an Eligible Replacement that is a recognized dealer in interest rate swaps, (b) as of
the date of such transfer the Transferee would not be required to withhold or deduct on account of
Tax from any payments under this Agreement or would be required to gross up for such Tax under
Section 2(d)(i)(4), (c) an Event of Default or Termination Event would not occur as a result of
such transfer (d) pursuant to a written instrument (the “Transfer Agreement”), the Transferee
acquires and assumes all rights and obligations of Party A under the Agreement and the relevant
Transaction, (e) such Transfer Agreement is effective to transfer to the Transferee all, but not
less than all, of Party A’s rights and obligations under the Agreement and all relevant
Transactions; (f) Party A will be responsible for any costs or expenses incurred in connection with
such transfer (including any replacement cost of entering into a replacement transaction); (g)
Moody’s has been given prior written notice of such transfer and the Rating Agency Condition (other
than with respect to Moody’s) is satisfied; and (h) such transfer otherwise complies with the terms
of the Base Agreement.

“Rating Agencies” means, with respect to any date of determination, each of S&P, Moody’s, Fitch
and DBRS, to the extent that each such rating agency is then providing a rating for any of the
related notes or certificates, as applicable.

“Rating Agency Condition” means, with respect to any particular proposed act or omission to act
hereunder and each Rating Agency specified in connection with such proposed act or omission, that
the party proposing such act or failure to act must consult with each of the specified Rating
Agencies and receive from each such Rating Agency prior written confirmation that the proposed
action or inaction would not cause a downgrade or withdrawal of the then-current rating of any
Certificates or Notes.

“Relevant Entity” means Party A and, to the extent applicable, a guarantor under an Eligible
Guarantee.
 

“Replacement Transaction” means, with respect to any Terminated Transaction or group of Terminated
Transactions, a transaction or group of transactions that (i) would have the effect of preserving
for Party B the economic equivalent of any payment or delivery (whether the underlying obligation
was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by
the parties under Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
Transactions that would, but for the occurrence of the relevant Early Termination Date, have been

19

 

required after that date, and (ii) has terms which are substantially the same as this Agreement,
including, without limitation, rating triggers, Regulation AB compliance, and credit support
documentation, save for the exclusion of provisions relating to Transactions that are not
Terminated Transactions.

“Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings at least equal
to the Required Ratings Threshold.

“Required Ratings Threshold” means each of the S&P Required Ratings Threshold, the Moody’s Second
Trigger Ratings Threshold, the Fitch Required Ratings Threshold and the DBRS Required Ratings
Threshold.

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or
any successor thereto.

“S&P Approved Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, a short-term unsecured and unsubordinated debt rating of
“A-1” from S&P, or, if such entity does not have a short-term unsecured and unsubordinated debt
rating from S&P, a long-term unsecured and unsubordinated debt rating or counterparty rating of
“A+” from S&P.

“S&P Required Ratings Downgrade Event” means that no Relevant Entity has credit ratings from S&P at
least equal to the S&P Required Ratings Threshold.

“S&P Required Ratings Threshold” means, with respect to Party A, the guarantor under an Eligible
Guarantee, or an Eligible Replacement, (I) if such entity is a Financial Institution, a short-term
unsecured and unsubordinated debt rating of “A-2” from S&P, or, if such entity does not have a
short-term unsecured and unsubordinated debt rating from S&P, a long-term unsecured and
unsubordinated debt rating or counterparty rating of “BBB+” from S&P, or (II) if such entity is not
a Financial Institution, a short-term unsecured and unsubordinated debt rating of “A-1” from S&P,
or, if such entity does not have a short-term unsecured and unsubordinated debt rating from S&P, a
long-term unsecured and unsubordinated debt rating or counterparty rating of “A+” from S&P;

[Remainder of this page intentionally left blank.]

20

 

The time of dealing will be confirmed by Party A upon written request. Barclays is regulated by
the Financial Services Authority. Barclays is acting for its own account in respect of this
Transaction.

Please confirm that the foregoing correctly sets forth all the terms and conditions of our
agreement with respect to the Transaction by responding within three (3) Business Days by promptly
signing in the space provided below and both (i) faxing the signed copy to Incoming Transaction
Documentation, Barclays Capital Global OTC Transaction Documentation & Management, Global
Operations, Fax +(44) 20-7773-6810/6857, Tel +(44) 20-7773-6901/6904/6965, and (ii) mailing the
signed copy to Barclays Bank PLC, 5 The North Colonnade, Canary Wharf, London E14 4BB, Attention of
Incoming Transaction Documentation, Barclays Capital Global OTC Transaction Documentation &
Management, Global Operation. Your failure to respond within such period shall not affect the
validity or enforceability of the Transaction against you. This facsimile shall be the only
documentation in respect of the Transaction and accordingly no hard copy versions of this
Confirmation for this Transaction shall be provided unless Party B requests such a copy.

	 	 	 
	For and on behalf of

BARCLAYS BANK PLC

	 	For and on behalf of

ChaseFlex Trust Series 2007-M1, Multi-Class
Pass-Through Certificates (Mortgage Pool I)

By: The Bank of New York Trust Company, N.A., not
in its individual capacity but solely as Supplemental
Interest Trust Trustee on behalf of the Supplemental
Interest Trust with respect to ChaseFlex Trust Series
2007-M1 (Mortgage Pool 1)
	 
	 	 
	Name:

	 	Name:
	Title:

	 	Title:
	Date:

	 	Date:

Barclays Bank PLC and its Affiliates, including Barclays Capital Inc., may share with each other
information, including non-public credit information, concerning its clients and prospective
clients. If you do not want such information to be shared, you must write to the Director of
Compliance, Barclays Bank PLC, 200 Park Avenue, New York, NY 10166.

21

 

SCHEDULE I

	 	 	 	 	 
	From and including	 	To but excluding	 	Notional Amount (USD)
	07/31/07
	 	08/25/07
	 	466,661,000.00
	08/25/07
	 	09/25/07
	 	458,880,623.07
	09/25/07
	 	10/25/07
	 	450,717,399.21
	10/25/07
	 	11/25/07
	 	442,189,548.05
	11/25/07
	 	12/25/07
	 	433,316,133.98
	12/25/07
	 	01/25/08
	 	424,117,246.88
	01/25/08
	 	02/25/08
	 	414,613,929.38
	02/25/08
	 	03/25/08
	 	404,828,098.59
	03/25/08
	 	04/25/08
	 	394,782,462.72
	04/25/08
	 	05/25/08
	 	384,500,433.10
	05/25/08
	 	06/25/08
	 	374,006,031.85
	06/25/08
	 	07/25/08
	 	363,323,795.83
	07/25/08
	 	08/25/08
	 	352,478,677.36
	08/25/08
	 	09/25/08
	 	341,951,592.72
	09/25/08
	 	10/25/08
	 	331,733,217.88
	10/25/08
	 	11/25/08
	 	321,814,502.12
	11/25/08
	 	12/25/08
	 	312,186,660.01
	12/25/08
	 	01/25/09
	 	302,841,163.64
	01/25/09
	 	02/25/09
	 	293,769,735.07
	02/25/09
	 	03/25/09
	 	284,964,339.00
	03/25/09
	 	04/25/09
	 	276,417,175.68
	04/25/09
	 	05/25/09
	 	268,120,673.99
	05/25/09
	 	06/25/09
	 	260,067,484.72
	06/25/09
	 	07/25/09
	 	252,250,474.11
	07/25/09
	 	08/25/09
	 	244,662,717.49
	08/25/09
	 	09/25/09
	 	237,297,493.21
	09/25/09
	 	10/25/09
	 	230,148,276.62
	10/25/09
	 	11/25/09
	 	223,208,734.35
	11/25/09
	 	12/25/09
	 	215,755,564.98
	12/25/09
	 	01/25/10
	 	207,838,947.95
	01/25/10
	 	02/25/10
	 	201,294,649.99
	02/25/10
	 	03/25/10
	 	193,363,817.13
	03/25/10
	 	04/25/10
	 	187,046,543.96
	04/25/10
	 	05/25/10
	 	179,477,994.98
	05/25/10
	 	06/25/10
	 	171,220,603.83
	06/25/10
	 	07/25/10
	 	165,081,609.29
	07/25/10
	 	08/25/10
	 	158,847,420.04
	08/25/10
	 	09/25/10
	 	156,055,347.49
	09/25/10
	 	10/25/10
	 	151,476,783.95
	10/25/10
	 	11/25/10
	 	147,032,506.68
	11/25/10
	 	12/25/10
	 	142,718,578.24
	12/25/10
	 	01/25/11
	 	138,531,176.63
	01/25/11
	 	02/25/11
	 	134,466,591.86
	02/25/11
	 	03/25/11
	 	130,521,222.74
	03/25/11
	 	04/25/11
	 	126,691,573.60
	04/25/11
	 	05/25/11
	 	122,974,251.29

22

 

	 	 	 	 	 
	From and including	 	To but excluding	 	Notional Amount (USD)
	05/25/11
	 	06/25/11
	 	119,365,962.10
	06/25/11
	 	07/25/11
	 	115,863,508.90
	07/25/11
	 	08/25/11
	 	112,463,788.28
	08/25/11
	 	09/25/11
	 	109,163,787.80
	09/25/11
	 	10/25/11
	 	105,960,583.34
	10/25/11
	 	11/25/11
	 	102,851,336.50
	11/25/11
	 	12/25/11
	 	99,833,292.11
	12/25/11
	 	01/25/12
	 	96,903,775.74
	01/25/12
	 	02/25/12
	 	94,060,191.40
	02/25/12
	 	03/25/12
	 	91,016,479.74
	03/25/12
	 	04/25/12
	 	88,325,605.38
	04/25/12
	 	05/25/12
	 	84,661,867.77
	05/25/12
	 	06/25/12
	 	72,858,303.40
	06/25/12
	 	07/25/12
	 	56,458,629.80
	07/25/12
	 	08/25/12
	 	52,344,185.65
	08/25/12
	 	09/25/12
	 	50,739,027.27
	09/25/12
	 	10/25/12
	 	49,180,947.52
	10/25/12
	 	11/25/12
	 	47,668,565.98
	11/25/12
	 	12/25/12
	 	46,200,542.73
	12/25/12
	 	01/25/13
	 	44,775,577.08
	01/25/13
	 	02/25/13
	 	43,392,406.52
	02/25/13
	 	03/25/13
	 	42,049,805.51
	03/25/13
	 	04/25/13
	 	40,746,584.45
	04/25/13
	 	05/25/13
	 	39,481,588.64
	05/25/13
	 	06/25/13
	 	38,253,697.18
	06/25/13
	 	07/25/13
	 	37,061,822.08
	07/25/13
	 	08/25/13
	 	35,904,907.21
	08/25/13
	 	09/25/13
	 	34,781,927.42
	09/25/13
	 	10/25/13
	 	33,691,887.61
	10/25/13
	 	11/25/13
	 	32,633,821.86
	11/25/13
	 	12/25/13
	 	31,343,075.69
	12/25/13
	 	01/25/14
	 	30,194,975.48
	01/25/14
	 	02/25/14
	 	28,991,739.06
	02/25/14
	 	03/25/14
	 	27,930,562.74
	03/25/14
	 	04/25/14
	 	26,828,075.99
	04/25/14
	 	05/25/14
	 	24,695,737.20
	05/25/14
	 	06/25/14
	 	16,551,897.06
	06/25/14
	 	07/25/14
	 	5,739,607.30
	07/25/14
	 	08/25/14
	 	3,021,545.75
	08/25/14
	 	09/25/14
	 	2,862,912.17
	09/25/14
	 	10/25/14
	 	2,708,945.33
	10/25/14
	 	11/25/14
	 	2,559,508.06
	11/25/14
	 	12/25/14
	 	2,414,467.21
	12/25/14
	 	01/25/15
	 	2,273,693.55
	01/25/15
	 	02/25/15
	 	2,137,061.65
	02/25/15
	 	03/25/15
	 	2,004,449.76
	03/25/15
	 	04/25/15
	 	1,875,739.69
	04/25/15
	 	05/25/15
	 	1,750,816.74
	05/25/15
	 	06/25/15
	 	1,629,569.59
	06/25/15
	 	07/25/15
	 	1,511,890.16

23

 

	 	 	 	 	 
	From and including	 	To but excluding	 	Notional Amount (USD)
	07/25/15
	 	08/25/15
	 	1,397,673.56
	08/25/15
	 	09/25/15
	 	1,286,818.00
	09/25/15
	 	10/25/15
	 	1,179,224.64
	10/25/15
	 	11/25/15
	 	1,074,797.59
	11/25/15
	 	12/25/15
	 	973,443.73
	12/25/15
	 	01/25/16
	 	875,072.73
	01/25/16
	 	02/25/16
	 	779,596.86
	02/25/16
	 	03/25/16
	 	686,930.99
	03/25/16
	 	04/25/16
	 	596,992.51
	04/25/16
	 	05/25/16
	 	509,701.22
	05/25/16
	 	06/25/16
	 	424,979.26
	06/25/16
	 	07/25/16
	 	342,751.09
	07/25/16
	 	08/25/16
	 	262,943.37
	08/25/16
	 	09/25/16
	 	185,484.91
	09/25/16
	 	10/25/16
	 	110,306.64
	10/25/16
	 	11/25/16
	 	37,341.49
	11/25/16
	 	12/25/16
	 	0.00

24

 

Annex A

Paragraph 13 of the Credit Support Annex

W-2-1

 

SCHEDULE X

	 	 	 
	Item on Form 8-K	 	Party Responsible
	*Item 1.01- Entry into a Material Definitive
Agreement

	 	All parties
	 
	 	 
	*Item 1.02- Termination of a Material Definitive
Agreement

	 	All parties
	 
	 	 
	Item 1.03- Bankruptcy or Receivership

	 	Depositor
	 
	 	 
	Item 2.04- Triggering Events that Accelerate or
Increase a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet
Arrangement

	 	Depositor
	 
	 	 
	*Item 3.03- Material Modification to Rights of
Security Holders

	 	Depositor, Servicer
	 
	 	 
	Item 5.03- Amendments of Articles of
Incorporation or Bylaws; Change of Fiscal Year

	 	Depositor
	 
	 	 
	Item 6.01- ABS Informational and Computational
Material

	 	Depositor
	 
	 	 
	*Item 6.02- Change of Servicer or Trustee

	 	Servicer, Trustee (as
to change of Trustee
only), Paying Agent (as
to change of Paying
Agent only)
	 
	 	 
	*Item 6.03- Change in Credit Enhancement or
External Support

	 	Depositor
	 
	 	 
	*Item 6.04- Failure to Make a Required
Distribution

	 	Paying Agent
	 
	 	 
	Item 6.05- Securities Act Updating Disclosure

	 	Depositor
	 
	 	 
	Item 7.01- Reg FD Disclosure

	 	Depositor
	 
	 	 
	Item 8.01

	 	Depositor
	 
	 	 
	Item 9.01

	 	Depositor

X-1

 

SCHEDULE Y

	 	 	 
	Item on Form 10-D	 	Party Responsible
	Item 1: Distribution and Pool Performance
Information

Plus any information required by Item 1121 which
is NOT included on the monthly statement to
Certificateholders

	 	Paying Agent through the
Item 602 statement based
on information provided
to it by the Servicer 

Servicer
	 
	 	 
	Item 2: Legal Proceedings per Item 1117 of Reg AB

	 	All parties to the PSA
(as to themselves), the
depositor/trustee/paying
agent/servicer (to the
extent known) as to the
issuing entity, the
depositor/servicer as to
the sponsor, 1106(b)
originator and any
1100(d)(1) party
	 
	 	 
	Item 3: Sale of Securities and Use of Proceeds

	 	Depositor
	 
	 	 
	Item 4: Defaults Upon Senior Securities

	 	Servicer, Paying Agent
(except as to 9.01(b) or
(d)) and Trustee (to the
extent of knowledge
thereof)
	 
	 	 
	Item 5: Submission of Matters to a Vote of
Security Holders

	 	Depositor, Paying Agent
(to the extent it is
submitting a matter to
vote) and the Trustee
(to the extent it is
submitting a matter to
vote)
	 
	 	 
	Item 6: Significant Obligors of Pool Assets

	 	Depositor/Sponsor/Mortgage Loan Seller/ Servicer
	 
	 	 
	Item 7: Significant Enhancement Provider
Information

	 	Depositor/Sponsor
	 
	 	 
	Item 8: Other Information

	 	Servicer, Paying Agent
and any other party
responsible for
disclosure items on Form
10-D
	 
	 	 
	Item 9: Exhibits

	 	Servicer

Y-1

 

SCHEDULE Z

	 	 	 
	Item on Form 10-K	 	Party Responsible
	Item 1B: Unresolved Staff Comments

	 	Depositor
	 
	 	 
	*Item 9B: Other Information

	 	Servicer, Paying Agent and any
other party responsible for
disclosure items on Form 8-K
	 
	 	 
	*Item 15: Exhibits, Financial
Statement Schedules

	 	Servicer/subservicers/Depositor
	 
	 	 
	*Additional Item:

Disclosure per Item 1117 of Reg AB

	 	All parties to the PSA (as to
themselves), the
Depositor/Trustee/Paying
Agent/Servicer (to the extent
known) as to the issuing entity,
the depositor/servicer as to the
sponsor, 1106(b) originator, any
1100(d)(1) party
	 
	 	 
	*Additional Item:

Disclosure per Item 1119 of Reg AB

	 	All parties to the PSA, the
sponsor, originator, significant
obligor, enhancement or support
provider
	 
	 	 
	Additional Item:

Disclosure per Item 1112(b) of Reg AB

	 	Depositor/Sponsor/Mortgage Loan Seller/Servicer
	 
	 	 
	Additional Item:

Disclosure per Items 1114(b) and
1115(b) of Reg AB

	 	Depositor/Sponsor

Z-1f8kuhc080907tpex41.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 4.1

AMENDED AND RESTATED DECLARATION OF TRUST

OF

UMPQUA MASTER TRUST I

Dated as of August 9, 2007

(9)Umpqua Holdings Corporation 

AU\4265172.3

	ARTICLE I 
	INTERPRETATION AND DEFINITIONS 
	Section 1.1  	  	Definitions  	  	  	  	2  
	ARTICLE II 
	ORGANIZATION 
	Section 2.1  	  	Name  	  	  	  	10  
	Section 2.2  	  	Office  	  	  	  	10  
	Section 2.3  	  	Purpose  	  	  	  	10  
	Section 2.4  	  	Authority  	  	  	  	11  
	Section 2.5  	  	Title to Property of a Series  	  	  	  	11  
	Section 2.6  	  	Powers and Duties of the Trustees and the Administrators  	  	  	  	11  
	Section 2.7  	  	Prohibition of Actions by the Master Trust, each Series and the  	  	  	  	  
	  	  	Trustees  	  	  	  	17  
	Section 2.8  	  	Powers and Duties of the Institutional Trustee  	  	  	  	18  
	Section 2.9  	  	Certain Duties and Responsibilities of the Trustees and the  	  	  	  	  
	  	  	Administrators  	  	  	  	20  
	Section 2.10  	  	Certain Rights of Institutional Trustee  	  	  	  	22  
	Section 2.11  	  	Delaware Trustee  	  	  	  	24  
	Section 2.12  	  	Execution of Documents  	  	  	  	24  
	Section 2.13  	  	Not Responsible for Recitals or Issuance of Securities  	  	  	  	25  
	Section 2.14  	  	Term  	  	  	  	25  
	Section 2.15  	  	Mergers  	  	  	  	25  
	ARTICLE III 
	SPONSOR 
	Section 3.1  	  	Sponsor’s Purchase of Common Securities  	  	  	  	27  
	Section 3.2  	  	Responsibilities of the Sponsor  	  	  	  	27  
	ARTICLE IV 
	TRUSTEES AND ADMINISTRATORS 
	Section 4.1  	  	Number of Trustees  	  	  	  	28  
	Section 4.2  	  	Delaware Trustee  	  	  	  	28  
	Section 4.3  	  	Institutional Trustee; Eligibility  	  	  	  	28  
	Section 4.4  	  	Administrators  	  	  	  	29  
	Section 4.5  	  	Appointment, Removal and Resignation of the Trustees and the  	  	  	  	  
	  	  	Administrators  	  	  	  	29  
	Section 4.6  	  	Vacancies Among Trustees  	  	  	  	31  
	  
	  	  	-ii-  	  	 	  	AU\4265172.3  

	Section 4.7  	  	Effect of Vacancies  	  	31  
	Section 4.8  	  	Meetings of the Trustees and the Administrators  	  	32  
	Section 4.9  	  	Delegation of Power  	  	32  
	Section 4.10  	  	Merger, Conversion, Consolidation or Succession to Business  	  	32  
	ARTICLE V 
	DISTRIBUTIONS 
	Section 5.1  	  	Distributions  	  	33  
	ARTICLE VI 
	ISSUANCE OF SECURITIES SECTION 
	Section 6.1  	  	General Provisions Regarding Securities  	  	33  
	Section 6.2  	  	Paying Agent, Transfer Agent, Calculation Agent and Registrar  	  	35  
	Section 6.3  	  	Form and Dating  	  	35  
	Section 6.4  	  	Book-Entry Capital Securities  	  	36  
	Section 6.5  	  	Mutilated, Destroyed, Lost or Stolen Certificates  	  	38  
	Section 6.6  	  	Temporary Certificates  	  	38  
	Section 6.7  	  	Cancellation  	  	39  
	Section 6.8  	  	Rights of Holders; Waivers of Past Defaults  	  	39  
	ARTICLE VII 
	DISSOLUTION AND TERMINATION OF MASTER TRUST AND SERIES  	  	  
	Section 7.1  	  	Dissolution and Termination of Master Trust and each Series  	  	41  
	ARTICLE VIII 
	TRANSFER OF INTERESTS 
	Section 8.1  	  	General  	  	42  
	Section 8.2  	  	Transfer Procedures and Restrictions  	  	43  
	Section 8.3  	  	Deemed Security Holders  	  	47  

ARTICLE IX

LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

	Section 9.1  	  	Liability  	  	47  
	Section 9.2  	  	Exculpation  	  	48  
	Section 9.3  	  	Fiduciary Duty  	  	49  
	Section 9.4  	  	Indemnification  	  	49  
	Section 9.5  	  	Outside Businesses  	  	52  
	Section 9.6  	  	Compensation; Fee  	  	53  

(9)Umpqua Holdings Corporation 

AU\4265172.3

	ARTICLE X 
	ACCOUNTING 
	Section 10.1  	  	Fiscal Year  	  	53  
	Section 10.2  	  	Certain Accounting Matters  	  	53  
	Section 10.3  	  	Banking  	  	54  
	Section 10.4  	  	Withholding  	  	55  
	ARTICLE XI 
	AMENDMENTS AND MEETINGS 
	Section 11.1  	  	Amendments  	  	55  
	Section 11.2  	  	Meetings of the Holders of the Securities; Action by Written Consent  	  	57  
	ARTICLE XII 
	REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE  	  	  
	Section 12.1  	  	Representations and Warranties of Institutional Trustee  	  	59  
	Section 12.2  	  	Representations and Warranties of Delaware Trustee  	  	60  
	ARTICLE XIII 
	MISCELLANEOUS 
	Section 13.1  	  	Notices  	  	61  
	Section 13.2  	  	Governing Law  	  	62  
	Section 13.3  	  	Submission to Jurisdiction  	  	62  
	Section 13.4  	  	Intention of the Parties  	  	63  
	Section 13.5  	  	Headings  	  	63  
	Section 13.6  	  	Successors and Assigns  	  	63  
	Section 13.7  	  	Partial Enforceability  	  	63  
	Section 13.8  	  	Counterparts  	  	63  
	  
	ANNEX AND EXHIBITS  	  	  
	ANNEX I  	  	         FORM OF SERIES SUPPLEMENT  	  	  
	EXHIBIT A-1  	  	         FORM OF CAPITAL SECURITY CERTIFICATE  	  	  
	EXHIBIT A-2  	  	         FORM OF COMMON SECURITY CERTIFICATE  	  	  
	EXHIBIT B  	  	         FORM OF ADMINISTRATOR’S CERTIFICATE OF THE MASTER  	  	  
	  	  	         TRUST  	  	  

(9)Umpqua Holdings Corporation 

AU\4265172.3

AMENDED AND RESTATED DECLARATION OF TRUST

	OF

	UMPQUA MASTER TRUST I

	August 9, 2007

     AMENDED AND RESTATED DECLARATION OF TRUST (as amended or supplemented from time to time in accordance with the terms hereof, this “Declaration”), dated and effective as of August 9, 2007, by the Trustees (as defined herein), the Administrators (as defined herein), the Sponsor (as defined herein) and the holders from time to time of undivided beneficial interests in the assets of one or more Series (as defined herein) of the Master Trust (as defined herein) to be issued pursuant to this Declaration.

     WHEREAS, certain of the Trustees and the Sponsor established Umpqua Master Trust I (the “Master Trust”), a statutory trust under the Statutory Trust Act (as defined herein), pursuant to a Declaration of Trust, dated as of August 1, 2007 (the “Original Declaration”), and a Certificate of Trust filed with the Secretary of State of the State of Delaware on August 1, 2007, for the sole purpose of issuing and selling the Securities (as defined herein) of one or more Series (as defined herein) representing undivided beneficial interests in the assets of the Master Trust associated with that Series, investing the proceeds thereof in the Debentures (as defined herein) of the Debenture Issuer (as defined herein) associated with such Series and engaging in those activities necessary, advisable or incidental thereto;

     WHEREAS, prior to the execution of this Declaration, no interests in the assets of the Master Trust or in the assets associated with any Series have been issued; and

     WHEREAS, all of the Trustees, the Administrators and the Sponsor, by this Declaration, amend and restate each and every term and provision of the Original Declaration.

     NOW, THEREFORE, it being the intention of the parties hereto that (i) the Master Trust continue as a series statutory trust under the Statutory Trust Act and that this Declaration constitute the governing instrument of such statutory trust, (ii) one or more Series be issued from time to time in accordance with this Declaration and that each such Series receive the full benefit of the limitations on liability as set forth in §3804 of the Statutory Trust Act and (iii) all assets associated with a Series will be held in trust for the benefit of the Holders (as defined herein) of the Securities of such Series, subject to the provisions of this Declaration, and, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties, intending to be legally bound hereby, amend and restate in its entirety the Original Declaration and agree as follows:

(9)Umpqua Holdings Corporation 

AU\4265172.3

	ARTICLE I

	INTERPRETATION AND DEFINITIONS

      Section 1.1 Definitions. Unless the context otherwise requires:

     (a) capitalized terms used in this Declaration but not defined in the preamble above or elsewhere herein have the respective meanings assigned to them in this Section 1.1 or, if not defined in this Section 1.1 or elsewhere herein, in the Indenture;

     (b)  a term defined anywhere in this Declaration has the same meaning  

throughout;      

  

     (c)  all references to “the Declaration” or “this Declaration” are to this Declaration and each Exhibit hereto and each Series Supplement, as modified, supplemented or amended from time to time;

     (d) all references in this Declaration to Articles and Sections and Exhibits are to Articles and Sections of and Exhibits to this Declaration unless otherwise specified;

     (e) a term defined in the Trust Indenture Act (as defined herein) has the same meaning when used in this Declaration unless otherwise defined in this Declaration or unless the context otherwise requires;

     (f) a reference to the singular includes the plural and vice versa; and 

 

     (g) the word “or” is always used inclusively.

     “Additional Amounts” has the meaning set forth in Section 3.06 of the Indenture.

     “Administrative Action” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Administrators” means each of Ronald L. Farnsworth and Neal T. McLaughlin, solely in such Person’s capacity as an Administrator of the Master Trust and each Series and not in such Person’s individual capacity, or such Administrator’s successor in interest in such capacity, or any successor appointed as herein provided.

     “Affiliate” has the same meaning as given to that term in Rule 405 under the Securities Act or any successor rule thereunder.

     “Applicable Depositary Procedures” means, with respect to any transfer or transaction involving a Book-Entry Capital Security, the rules and procedures of the Depositary for such Book-Entry Capital Security, in each case to the extent applicable to such transaction and as in effect from time to time.

“Authorized Officer” of a Person means any Person that is authorized to bind such Person.

2

(9)Umpqua Holdings Corporation  

AU\4265172.3

     “Bankruptcy Event” means, with respect to any Person:

     (a) a court having jurisdiction in the premises enters a decree or order for relief in respect of such Person in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person or for any substantial part of its property, or orders the winding-up or liquidation of its affairs, and such decree, appointment or order remains unstayed and in effect for a period of 90 consecutive days; or

     (b) such Person commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, consents to the entry of an order for relief in an involuntary case under any such law, or consents to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of such Person or of any substantial part of its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts as they become due.

     “Beneficial Owner” means each Person who is the beneficial owner of Book-Entry Capital Securities as reflected in the records of the Depositary or, if a Depositary Participant is not the beneficial owner, then the beneficial owner as reflected in the records of the applicable Depositary Participant.

     “Book-Entry Capital Security” means a Capital Security the ownership and transfers of which shall be reflected and made, as applicable, through book entries by the Depositary.

     “Business Day” means any day other than Saturday, Sunday or any other day on which banking institutions in Wilmington, Delaware, The City of New York or the city of the Corporate Trust Office are permitted or required by law or executive order to close.

     “Capital Securities” means the class of preferred undivided beneficial interests in the Trust Property of the applicable Series.

     “Capital Security Certificate” means a definitive Certificate registered in the name of the Holder representing a Capital Security substantially in the form of Exhibit A-l.

     “Capital Treatment Event” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Certificate” means any certificate evidencing Securities of the applicable Series.

     “Certificate of Trust” means the certificate of trust filed with the Secretary of State of the State of Delaware with respect to the Master Trust, as amended and restated from time to time.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor legislation.

     “Commission” means the United States Securities and Exchange Commission.

3

	(9)Umpqua Holdings Corporation 

AU\4265172.3    

  

     “Common Securities” means the class of common undivided beneficial interests in the Trust Property of the applicable Series.

     “Common Security Certificate” means a definitive Certificate registered in the name of the Holder representing a Common Security substantially in the form of Exhibit A-2.

     “Company Indemnified Person” means (a) any Administrator, (b) any Affiliate of any Administrator, (c) any officers, directors, shareholders, members, partners, employees, representatives or agents of any Administrator or (d) any officer, employee or agent of the Master Trust or any of their Affiliates.

     “Corporate Trust Office” means the office of the Institutional Trustee at which at any particular time its corporate trust business shall be principally administered, which at all times shall be located within the United States and at the time of execution of this Declaration shall be LaSalle Bank National Association, 135 S. LaSalle Street, Suite 1511, Chicago, Illinois 60603, Attention: CDO Trust Services Group – Umpqua Master Trust I.

     “Coupon Rate” has the meaning set forth in paragraph 2(a) of the applicable Series Supplement.

     “Covered Person” means (a) any Administrator, officer, director, shareholder, partner, member, representative, employee or agent of the Master Trust or any Affiliate of the Master Trust or (b) any Holder of Securities.

     “Debenture Issuer” means Umpqua Holdings Corporation, a bank holding company incorporated in the State of Oregon, in its capacity as issuer of Debentures under the Indenture from time to time, and any permitted successor under the Indenture.

     “Debenture Trustee” means LaSalle Bank National Association, a Delaware banking corporation, not in its individual capacity but solely as trustee under the Indenture until a successor is appointed thereunder, and thereafter means such successor trustee.

     “Debentures” means the series of Junior Subordinated Debt Securities to be issued and sold by the Debenture Issuer under the Indenture to the Master Trust for, with respect to, and on behalf of the applicable Series.

     “Default” means any event, act or condition that with notice or lapse of time, or both, would constitute an Event of Default.

     “Deferred Interest” means any interest on the applicable Debentures that would have been overdue and unpaid for more than one Distribution Payment Date but for the imposition of an Extension Period, and the interest that shall accrue (to the extent that the payment of such interest is legally enforceable) on such interest at the Coupon Rate applicable during such Extension Period, compounded on the same frequency on which Distributions are payable from the date on which such Deferred Interest would otherwise have been due and payable until paid or made available for payment.

     “Definitive Capital Securities” means any Capital Securities in definitive form.

4  

	(9)Umpqua Holdings Corporation  

AU\4265172.3    

     “Delaware Trustee” has the meaning set forth in Section 4.2.

     “Depositary” means an organization registered as a clearing agency under the Exchange Act that is designated as Depositary by the Sponsor. Unless otherwise specified in the Series Supplement, DTC will be the initial Depositary.

     “Depositary Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time the Depositary effects book-entry transfers and pledges of securities deposited with or on behalf of the Depositary.

     “Direct Action” has the meaning set forth in Section 2.8(e) .

     “Distribution” means a distribution payable to Holders of Securities of the applicable Series in accordance with Section 5.1.

     “Distribution Payment Date” has the meaning set forth in paragraph 2(e) of the applicable Series Supplement.

     “Distribution Period” has the meaning set forth in paragraph 2(a) of the applicable Series Supplement.

     “DTC” means The Depository Trust Company or any successor thereto.

     “Event of Default” means the occurrence of an Indenture Event of Default.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor legislation.

     “Extension Period” has the meaning set forth in paragraph 2(e) of the applicable Series Supplement.

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

     “Fiduciary Indemnified Person” shall mean each of the Institutional Trustee (including in its individual capacity), the Delaware Trustee (including in its individual capacity), any Affiliate of the Institutional Trustee or the Delaware Trustee, and any officers, directors, shareholders, members, partners, employees, representatives, custodians, nominees or agents of the Institutional Trustee or the Delaware Trustee.

     “Fiscal Year” has the meaning set forth in Section 10.1.

     “Global Capital Security” means a global Certificate evidencing ownership of Book-Entry Capital Securities.

     “Guarantee” means the Guarantee Agreement to be executed by the Sponsor (the “Guarantor”) in respect of the Capital Securities of the applicable Series.

5

	(9)Umpqua Holdings Corporation    

AU\4265172.3    

     “Holder” means a Person in whose name a Certificate representing a Security of the applicable Series is registered on the Securities Register maintained by or on behalf of the Registrar, such Person being a beneficial owner within the meaning of the Statutory Trust Act.

     “Indemnified Person” means a Company Indemnified Person or a Fiduciary Indemnified Person.

     “Indenture” means the Indenture, dated as of the Closing Date, between the Debenture Issuer and the Debenture Trustee, and any indenture supplemental thereto establishing or governing the terms of the applicable Debentures.

     “Indenture Event of Default” means an “Event of Default,” as defined in the Indenture, with respect to the applicable Debentures.

     “Institutional Trustee” means a Trustee meeting the eligibility requirements set forth in Section 4.3.

     “Investment Company” means an investment company as defined in the Investment Company Act.

     “Investment Company Act” means the Investment Company Act of 1940, as amended from time to time, or any successor legislation.

     “Investment Company Event” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Legal Action” has the meaning set forth in Section 2.8(e) .

     “LIBOR Determination Date” has the meaning set forth in paragraph 2 of the applicable Series Supplement.

     “Liquidation” has the meaning set forth in paragraph 3 of the applicable Series Supplement.

     “Liquidation Distribution” has the meaning set forth in paragraph 3 of the applicable Series Supplement.

     “Master Trust” has the meaning set forth in the recitals.

     “Majority in liquidation amount” means, as applicable, (a) with respect to Securities, Holders of outstanding Securities of the applicable Series, voting together as a single class, who are record owners of more than 50% of the aggregate liquidation amount (including the amount that would be paid upon the redemption, liquidation or otherwise on the date upon which the voting percentages are determined, plus unpaid Distributions accrued thereon to such date) of all outstanding Securities of the applicable Series; (b) with respect to Capital Securities, Holders of outstanding Capital Securities of the applicable Series, voting together as a single class, who are record owners of more than 50% of the aggregate liquidation amount (including the amount that would be paid upon the redemption, liquidation or otherwise on the date upon

6

	(9)Umpqua Holdings Corporation    

AU\4265172.3    

which the voting percentages are determined, plus unpaid Distributions accrued thereon to such date) of all outstanding Capital Securities of the applicable Series; or (c) with respect to Common Securities, Holders of outstanding Common Securities of the applicable Series, voting together as a single class, who are record owners of more than 50% of the aggregate liquidation amount (including the amount that would be paid upon the redemption, liquidation or otherwise on the date upon which the voting percentages are determined, plus unpaid Distributions accrued thereon to such date) of all outstanding Common Securities of the applicable Series.

     “Maturity Date” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Maturity Redemption Price” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by two Authorized Officers of such Person or, in the case of a natural Person, such Person. Any Officers’ Certificate delivered with respect to compliance with a condition or covenant provided for in this Declaration shall include:

     (c) a statement that each Authorized Officer or Person, as the case may be, signing the Officers’ Certificate has read the covenant or condition and the definitions relating thereto;

     (d) a brief statement of the nature and scope of the examination or investigation undertaken by each Authorized Officer or Person, as the case may be, in rendering the Officers’ Certificate;

     (e) a statement that each Authorized Officer or Person, as the case may be, has made such examination or investigation as, in his or her opinion, is necessary to enable such Authorized Officer or Person, as the case may be, to express an informed opinion as to whether or not such covenant or condition has been complied with; and

     (f) a statement as to whether, in the opinion of each Authorized Officer or Person, as the case may be, such condition or covenant has been complied with.

     “Optional Redemption Date” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Optional Redemption Price” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “OTS” means the Office of Thrift Supervision.

     “Paying Agent” has the meaning set forth in Section 6.2.

     “Payment Amount” has the meaning set forth in Section 5.1.

7

	(9)Umpqua Holdings Corporation    

AU\4265172.3    

     “Person” means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature.

     “PORTAL” has the meaning set forth in Section 2.6(a)(i) .

     “Property Account” has the meaning set forth in Section 2.8(c) .

     “Pro Rata” has the meaning set forth in paragraph 8 of the applicable Series Supplement.

     “QIB” means a “qualified institutional buyer” as defined under Rule 144A.

     “Quorum” means a majority of the Administrators or, if there are only two Administrators, both of them.

     “Redemption/Distribution Notice” has the meaning set forth in paragraph 4(e) of the applicable Series Supplement.

     “Registrar” has the meaning set forth in Section 6.2.

     “Relevant Trustee” has the meaning set forth in Section 4.5(a) .

      “Responsible Officer” means, with respect to the Institutional Trustee, any officer within the Corporate Trust Office of the Institutional Trustee with direct responsibility for the administration of this Declaration, including any vice-president, any assistant vice-president, any secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or other officer of the Corporate Trust Office of the Institutional Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject.

     “Restricted Securities Legend” has the meaning set forth in Section 8.2(c) .

     “Rule 144A” means Rule 144A under the Securities Act.

     “Rule 3a-5” means Rule 3a-5 under the Investment Company Act.

     “Rule 3a-7” means Rule 3a-7 under the Investment Company Act.

     “Securities” means the Common Securities and the Capital Securities of the applicable Series.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor legislation.

     “Securities Register” has the meaning set forth in Section 6.2(a) .

8 

	(9)Umpqua Holdings Corporation   

AU\4265172.3    

     “Series” means a designated series of beneficial interests in the Master Trust established by or in accordance with this Declaration and the applicable Series Supplement, comprised of a class of Capital Securities and a class of Common Securities.

     “Series Obligations” means, with respect to a particular Series, the debts, liabilities, obligations, and expenses of the Master Trust incurred, contracted for or otherwise existing with respect to that Series.

     “Series Supplement” means the instrument, substantially in the form of Annex I hereto, pursuant to which the terms of the Securities of the applicable Series are established.

     “Special Redemption Date” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Special Redemption Price” has the meaning set forth in paragraph 4(a) of the applicable Series Supplement.

     “Sponsor” means Umpqua Holdings Corporation, a bank holding company that is incorporated in the State of Oregon, or any permitted successor of the Debenture Issuer under the Indenture, in its capacity as sponsor of the Master Trust.

     “Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code §3801 et seq., as it may be amended from time to time, or any successor legislation.

     “Successor Delaware Trustee” has the meaning set forth in Section 4.5(e) . “Successor Entity” has the meaning set forth in Section 2.15(b) . “Successor Institutional Trustee” has the meaning set forth in Section 4.5(b) . “Successor Securities” has the meaning set forth in Section 2.15(b) .

     “Super Majority” has the meaning set forth in the applicable Series Supplement.

     “Tax Event” has the meaning set forth in the applicable Series Supplement.

     “10% in liquidation amount” means, as applicable, (a) with respect to Securities, Holders of outstanding Securities of the applicable Series, voting together as a single class, who are record owners of 10% or more of the aggregate liquidation amount (including the amount that would be paid upon the redemption, liquidation or otherwise on the date upon which the voting percentages are determined, plus unpaid Distributions accrued thereon to such date) of all outstanding Securities of the applicable Series; or (b) with respect to Capital Securities, Holders of outstanding Capital Securities of the applicable Series, voting together as a single class, who are record owners of 10% or more of the aggregate liquidation amount (including the amount that would be paid upon the redemption, liquidation or otherwise on the date upon which the voting percentages are determined, plus unpaid Distributions accrued thereon to such date) of all outstanding Capital Securities of the applicable Series.

9

	(9)Umpqua Holdings Corporation    

AU\4265172.3    

     “Transfer Agent” has the meaning set forth in Section 6.2.

     “Treasury Regulations” means the income tax regulations, including temporary and proposed regulations, promulgated under the Code by the United States Treasury, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended from time-to-time, or any successor legislation.

     “Trust Property,” with respect to any Series, means (a) the Debentures purchased by the Master Trust for, with respect to, and on behalf of the applicable Series from the Debenture Issuer, (b) any cash on deposit in, or owing to, the Property Account in respect of such Debentures and (c) all proceeds and rights in respect of the foregoing and any other property and assets for the time being held or deemed to be held by the Institutional Trustee for the benefit of the Holders of the Securities of such Series pursuant to the trusts of this Declaration.

     “Trustee” or ‘Trustees” means each Person who has signed this Declaration as a trustee, so long as such Person shall continue in office in accordance with the terms hereof, and all other Persons who may from time to time be duly appointed, qualified and serving as Trustees in accordance with the provisions hereof, and references herein to a Trustee or the Trustees shall refer to such Person or Persons solely in their capacity as trustees hereunder.

“U.S. Person” means a United States Person as defined in Section 7701(a)(30) of the Code.

 

	ARTICLE II

ORGANIZATION

     Section 2.1 Name. The Master Trust is named “Umpqua Master Trust I,” as such name may be modified from time to time by the Administrators following written notice to the Institutional Trustee and the Holders of the Securities. The Master Trust’s activities may be conducted under the name of the Master Trust or any other name deemed advisable by the Administrators.

     Section 2.2 Office. The address of the principal office of the Master Trust, which shall be in a state of the United States or the District of Columbia, is One SW Columbia Street, Suite 1200, Portland, Oregon 97258. On ten Business Days’ written notice to the Institutional Trustee and the Holders of the Securities, the Administrators may designate another principal office, which shall be in a state of the United States or the District of Columbia.

     Section 2.3 Purpose. The exclusive purposes and functions of the Master Trust are (a) to establish, from time to time, one or more Series, and to issue and sell Securities of such Series, each such Series representing undivided beneficial interests in the assets of the Master Trust associated with such Series, (b) to invest the gross proceeds from such sale in a newly issued series of Debentures by the Debenture Issuer and (c) except as otherwise limited herein, to

10 

(9)Umpqua Holdings Corporation  

AU\4265172.3    

engage in only those other activities deemed necessary, advisable or incidental thereto by the Institutional Trustee, including, without limitation, those activities specified in this Declaration. The Master Trust may not borrow money, incur debt, issue equity securities other than the Securities, reinvest proceeds derived from investments, pledge, or otherwise permit any lien on, any of the assets of the Master Trust (including, without limitation, those associated with any Series), or otherwise undertake (or permit to be undertaken) any activity that would cause the Master Trust or any Series to violate the limitations referred to in Section 2.6(d) .

     Section 2.4 Authority. Except as specifically provided in this Declaration, the Institutional Trustee shall have exclusive and complete authority to carry out the purposes of the Master Trust. An action taken by a Trustee on behalf of the Master Trust (including, without limitation, for, with respect to, or on behalf of any Series) and in accordance with such Trustee’s powers shall constitute the act of and serve to bind the Master Trust and the Trust Property of the applicable Series. In dealing with the Trustees acting on behalf of the Master Trust (including, without limitation, for, with respect to, or on behalf of any Series), no Person shall be required to inquire into the authority of the Trustees to bind the Master Trust (including, without limitation, for, with respect to, or on behalf of any Series). Persons dealing with the Master Trust (including, without limitation, for, with respect to, or on behalf of any Series) are entitled to rely conclusively on the power and authority of the Trustees as set forth in this Declaration. The Administrators shall have only those ministerial duties set forth herein with respect to accomplishing the purposes of the Master Trust and are not intended to be trustees or fiduciaries with respect to the Master Trust or any Series or the Holders. The Institutional Trustee shall have the right, but shall not be obligated except as provided in Section 2.6, to perform those duties assigned to the Administrators.

     Section 2.5 Title to Property of a Series. Except as provided in Section 2.6(g) and Section 2.8 with respect to the Debentures and the Property Accounts or as otherwise provided in this Declaration, legal title to all assets associated with a Series shall be vested in the Master Trust for, with respect to, and on behalf of such Series. The Holders of the Securities comprising any Series shall not have legal title to any part of the assets of the Master Trust associated with that Series or any other Series, but shall have an undivided beneficial interest in the assets of the Master Trust associated with that Series.

     Section 2.6 Powers and Duties of the Trustees and the Administrators.

     (a) The Trustees and the Administrators shall conduct the affairs of the Master Trust in accordance with the terms of this Declaration. Subject to the limitations set forth in paragraph (b) of this Section, and in accordance with the following provisions (i) and (ii), the Administrators and, at the direction of the Administrators, the Trustees, shall have the authority to enter into all transactions and agreements determined by the Administrators to be appropriate in exercising the authority, express or implied, otherwise granted to the Trustees or the Administrators, as the case may be, under this Declaration, and to perform all acts in furtherance thereof, including without limitation, the following:

               (i) Each Administrator shall have the power, duty and authority, and is hereby authorized, to act on behalf of the Master Trust (for itself and/or for,

11 

(9)Umpqua Holdings Corporation  

AU\4265172.3    

with respect to, and on behalf of any Series), with respect to the following matters:

     (A)  the issuance and sale of the Securities comprising any Series; 

      

     (B)  to cause the Master Trust (for itself and/or for, with respect to, and on behalf of such Series) to enter into, and to execute, deliver and perform on behalf of the Master Trust and/or such Series, such agreements as may be necessary or desirable in connection with the purposes and function of the Master Trust and/or such Series, including agreements with the Paying Agent, a subscription agreement for Debentures between the Master Trust (for itself and/or for, with respect to, and on behalf of such Series) and the Sponsor, a purchase or subscription agreement for Capital Securities between the Master Trust (for itself and/or for, with respect to, and on behalf of such Series) and the purchaser(s) thereof, a subscription agreement for Common Securities between the Master Trust (for itself and/or for, with respect to, and on behalf of such Series) and the Sponsor and a Guarantee for the Capital Securities of each Series;

     (C) ensuring compliance with the Securities Act and applicable securities or blue sky laws of states and other jurisdictions;

     (D) if and at such time determined solely by the Sponsor at the request of the purchasers, assisting in the designation of the Capital Securities of a Series for trading in the Private Offering, Resales and Trading through the Automatic Linkages (“PORTAL”) system if available;

     (E) the sending of notices (other than notices of default) and other information regarding the Securities and the related Debentures to the Holders of such Securities in accordance with this Declaration, including notice of any notice received from the Debenture Issuer of its election to defer payments of interest on such Debentures by extending the interest payment period under the Indenture;

     (F) the appointment of a Paying Agent, Transfer Agent and Registrar in accordance with this Declaration;

     (G) execution and delivery of the Certificates and the related Series Supplement in accordance with this Declaration;

     (H) execution and delivery of closing certificates pursuant to any purchase or placement agreement and the application for a taxpayer identification number;

     (I)  unless otherwise determined by the Holders of a Majority in  liquidation amount of the Securities of a particular Series or as

12

(9)Umpqua Holdings Corporation  

AU\4265172.3   

otherwise required by the Statutory Trust Act, to execute in the name of the Master Trust for, with respect to, and on behalf of such Series (either acting alone or together with any or all of the Administrators) any documents
that the Administrators have the power to execute pursuant to this Declaration;

     (J) the taking of any action as the Sponsor or an Administrator may from time to time determine is necessary, advisable or incidental to the foregoing to give effect to the terms of this Declaration
for the benefit of the Holders (without consideration of the effect of any such action on any particular Holder);

     (K) to establish a record date with respect to all actions to be taken hereunder that require a record date be established, including Distributions, voting rights, redemptions and exchanges, and to
issue relevant notices to the Holders of the applicable Securities as to such actions and applicable record dates;

     (L) to duly prepare and file on behalf of the Master Trust (for itself and/or for, with respect to, and on behalf of the Series) all applicable tax returns and tax information reports that are
required to be filed with respect to it;

     (M) to negotiate the terms of, and the execution and delivery of, any purchase or placement agreement and any other related agreements providing for the sale of Capital Securities;

     (N) to employ or otherwise engage employees, agents (who may be designated as officers with titles), managers, contractors, advisors, attorneys and consultants and pay reasonable compensation for such
services;

     (O) to incur expenses that are necessary, advisable or incidental to carry out any of the purposes of the Master Trust and each Series;

     (P) to give the certificate, substantially in the form of Exhibit B attached hereto, required by §314(a)(4) of the Trust Indenture Act to the Institutional Trustee, which certificate may be
executed by an Administrator;

     (Q) to take all action that may be necessary or appropriate for the preservation and the continuation of the valid existence, rights, franchises and privileges of the Master Trust as a statutory trust
or any Series as a series of the Master Trust under the laws of each jurisdiction (other than the State of Delaware) in which such existence is necessary to protect the limited liability of the Holders of the Capital Securities or to enable the
Master Trust (for itself or for, with respect to, and on behalf of any Series) to effect the purposes for which they were created; and

13

(9)Umpqua Holdings Corporation  

AU\4265172.3   

     (R) in the event that there are any debts, liabilities, obligations, or expenses incurred, contracted for or otherwise existing with respect to the Master Trust, or any charges or reserves attributable to the Master Trust, that are not readily identifiable as liabilities belonging to any particular Series and that cannot be satisfied or provided for in full by or out of assets of the Master Trust other than assets associated with each particular Series (collectively, “General Liabilities”), to allocate such General Liabilities, only to the extent that the same cannot be satisfied or provided for in full by or out of assets of the Master Trust other than assets associated with each particular Series, to, between, or among any one or more Series on a pro rata basis based on the liquidation amount of each outstanding Series and, to the fullest extent permitted by law, any General Liabilities so allocated to a particular Series shall belong to that Series and that Series only and each such allocation by the Administrator shall be conclusive and binding upon the Master Trust, all Series and all Holders of Securities for all purposes. The assets associated with each particular Series shall be charged exclusively with the debts, liabilities, obligations, and expenses incurred, contracted for or otherwise existing with respect to that Series (including, without limitation, all Series Obligations of that particular Series), and charges and reserves attributable to that Series, if any; all such debts, liabilities, obligations, and expenses incurred, contracted for or otherwise existing with respect to a particular Series (including, without limitation, all Series Obligations of that particular Series), and all such charges and reserves attributable to that Series, together with any General Liabilities allocated to that Series as provided in the immediately preceding sentence, are herein referred to as “liabilities belonging to” that Series.

     (ii) As among the Trustees and the Administrators, the Institutional Trustee shall have the power, duty and authority, and is hereby authorized, to act on behalf of the Master Trust (for itself and/or for, with respect to, and on behalf of any Series) with respect to the following matters:

     (A) the establishment of the Property Accounts; 

 

     (B) the receipt of Debentures from time to time; 

 

     (C) the collection of interest, principal and any other payments made in respect of Debentures in a Property Account;

     (D) the distribution through the Paying Agent of amounts owed to the Holders in respect of their Securities;

     (E) the exercise of all of the rights, powers and privileges of a registered holder of Debentures;

14  

(9)Umpqua Holdings Corporation  

AU\4265172.3   

     (F) the sending of notices of default and other information regarding the Securities and the Debentures to the Holders in accordance with this Declaration;

     (G) the distribution of the Trust Property in accordance with the terms of this Declaration;

     (H) to the extent provided in this Declaration, the winding up of the affairs of and liquidation of the Master Trust and each Series and the preparation, execution and filing of the certificate of
cancellation with the Secretary of State of the State of Delaware;

     (I) after any Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)), the taking of any action that the Institutional Trustee may from time to time
determine is necessary, advisable or incidental for the foregoing to give effect to the terms of this Declaration and protect and conserve the Trust Property for the benefit of the Holders of the Securities to which such Event of Default relates
(without consideration of the effect of any such action on any particular Holder);

     (J) to take all action that may be necessary or appropriate for the preservation and the continuation of the valid existence, rights, franchises and privileges of the Master Trust as a statutory trust
or any Series as a series of the Master Trust under the laws of the State of Delaware to protect the limited liability of the Holders of the Capital Securities or to enable the Master Trust (for itself and/or for, with respect to, and on behalf of
any Series) to effect the purposes for which it was created; and

     (K) to undertake any actions set forth in §317(a) of the Trust Indenture Act.

     (iii) The Institutional Trustee shall have the power and authority, and is hereby authorized, to act on behalf of the Master Trust and each Series with respect to any of the duties, liabilities,
powers or the authority of the Administrators set forth in Section 2.6(a)(i)(E) and (F) herein but shall not have a duty to do any such act unless specifically requested to do so in writing by the Sponsor, and shall then be fully protected in acting
pursuant to such written request; and in the event of a conflict between the action of the Administrators and the action of the Institutional Trustee, the action of the Institutional Trustee shall prevail.

     (b) So long as this Declaration remains in effect, neither the Master Trust, nor the Trustees or Administrators acting on behalf of the Master Trust (for itself and/or for, with respect to and on
behalf of any Series) shall undertake any business, activities or transaction except as expressly provided herein or contemplated hereby. In particular, the Master Trust (for

15 

(9)Umpqua Holdings Corporation  

AU\4265172.3 

itself and/or for, with respect to and on behalf of any Series) may not, and neither the Trustees nor the Administrators may cause the Master Trust (for itself and/or for, with respect to and on behalf of any Series) to, (i)
acquire any investments or engage in any activities not authorized by this Declaration, (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise dispose of any of the Trust Property or interests therein, including to Holders,
except as expressly provided herein, (iii) incur any indebtedness for borrowed money or incur any debt or issue any equity securities other than the Securities, (iv) take or consent to any action that would result in the placement of a lien on any
of the Trust Property or (v) take or consent to any action that (in the case of the Institutional Trustee, to the actual knowledge of a Responsible Officer) is inconsistent with the limitations specified in Section 2.6(d) . The Institutional Trustee
shall, at the sole cost and expense of the applicable Series subject to reimbursement under Section 9.6(a), defend all claims and demands of all Persons at any time claiming any lien on any of the Trust Property of such Series that is adverse to the
interest of such Series or the Holders of the Securities of such Series in their capacity as Holders.

     (c) In connection with the issuance and sale of Capital Securities, the Sponsor shall have the right and responsibility to assist the Master Trust with respect to, or effect on behalf of the Master
Trust, the following (and any actions taken by the Sponsor in furtherance of the following prior to the date of this Declaration are hereby ratified and confirmed in all respects):

     (i) the taking of any action necessary to obtain an exemption from the Securities Act;

     (ii) the determination of the jurisdictions in which to take appropriate action to qualify or register for sale all or part of such Capital Securities and the determination of any and all such acts,
other than actions which must be taken by or on behalf of such Master Trust (for itself and/or for, with respect to and on behalf of the applicable Series), and the advisement of and direction to the Trustees of actions they must take on behalf of
such Master Trust (for itself and/or for, with respect to and on behalf of the applicable Series), and the preparation for execution and filing of any documents to be executed and filed by such Master Trust (for itself and/or for, with respect to
and on behalf of the applicable Series), or on behalf of such Master Trust (for itself and/or for, with respect to and on behalf of the applicable Series), as the Sponsor deems necessary or advisable in order to comply with the applicable laws of
any such jurisdictions in connection with the sale of such Capital Securities; and

     (iii) the taking of any other actions necessary or desirable to carry out any of the foregoing activities.

     (d) Notwithstanding anything herein to the contrary, the Administrators, the Institutional Trustee and the Holders of a Majority in liquidation amount of the Common Securities are authorized and
directed to conduct the affairs of the Master Trust and each Series and to operate the Master Trust and each Series so that (i) neither the Master Trust nor any Series will be deemed to be an Investment Company required to be registered under the
Investment Company Act (in the case of the Institutional Trustee, to the actual knowledge of a Responsible

16

(9)Umpqua Holdings Corporation  

AU\4265172.3 

Officer), (ii) neither the Master Trust nor any Series will fail to be classified as a grantor trust for United States federal income tax purposes (in the case of the Institutional Trustee, to the actual knowledge of a Responsible Officer), (iii) neither the Master Trust nor any Series will take any action inconsistent with the treatment of the Debentures as indebtedness of the Debenture Issuer for United States federal income tax purposes (in the case of the Institutional Trustee, to the actual knowledge of a Responsible Officer) or (iv) the requirements to preserve the limitations on liability set forth in §3804 of the Statutory Trust Act are not contravened in any manner whatsoever (in the case of the Institutional Trustee, to the actual knowledge of a Responsible Officer). In this connection, with respect to either the Master Trust or any Series, the Institutional Trustee, the Administrators and the Holders of a Majority in liquidation amount of the Common Securities are authorized to take any action, not inconsistent with applicable laws or this Declaration, as amended from time to time, that each of the Institutional Trustee, the Administrators and such Holders determine in their discretion to be necessary or desirable for such purposes, even if such action adversely affects the interests of the Holders of the applicable Capital Securities.

     (e) All expenses incurred by the Administrators or the Trustees pursuant to this Section 2.6 shall be reimbursed by the Sponsor, and the Trustees shall have no obligations with respect to such expenses.

     (f) The assets of each Series shall consist of the Trust Property of such Series.

     (g) Legal title to all Trust Property of each Series shall be vested at all times in the Institutional Trustee (in its capacity as such) for, with respect to, and on behalf of such Series and shall be held and administered by such Institutional Trustee for the benefit of the Holders of the Securities of such Series in accordance with this Declaration, and the Institutional Trustee accepts each trust created hereby.

     (h) If the Institutional Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Declaration and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Institutional Trustee or to such Holder, then and in every such case the Sponsor, the Institutional Trustee and the Holders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Institutional Trustee and the Holders shall continue as though no such proceeding had been instituted.

     Section 2.7 Prohibition of Actions by the Master Trust, each Series and the Trustees. The Master Trust (for itself and/or for, with respect to or on behalf of any Series) shall not, and the Institutional Trustee and the Administrators shall not, and the Administrators shall cause the Master Trust (for itself and/or for, with respect to or on behalf of and each Series) not to, engage in any activity other than as required or authorized by this Declaration. In particular, neither the Master Trust nor any Series shall, and neither the Institutional Trustee nor the Administrators shall cause Master Trust or any Series to:

     (a) invest any proceeds received by the Master Trust (for itself and/or with respect to or on behalf of a Series) from holding Debentures, but shall distribute all such

17

(9)Umpqua Holdings Corporation  

AU\4265172.3 

proceeds to Holders of the Securities of the applicable Series pursuant to the terms of this Declaration and of such Securities;

     (b) acquire any assets other than as expressly provided herein; 

 

     (c) possess Trust Property for other than a purpose specified herein; 

 

     (d) make any loans or incur any indebtedness other than loans represented by Debentures purchased by the Master Trust (for itself and/or with respect to or on behalf of a Series);

     (e) possess any power or otherwise act in such a way as to vary the Trust Property or the terms of any Securities;

     (f) issue any securities or other evidences of beneficial ownership of, or beneficial interest in, the Master Trust other than the Securities; or

     (g) other than as provided in this Declaration, (i) direct the time, method and place of exercising any trust or power conferred upon the Debenture Trustee with respect to the Debentures, (ii) waive any past default that is waivable under the Indenture, (iii) exercise any right to rescind or annul any declaration that the principal of all the Debentures shall be due and payable, or (iv) consent to any amendment, modification or termination of the Indenture or the Debentures where such consent shall be required unless the Master Trust shall have received a written opinion of counsel experienced in such matters to the effect that such amendment, modification or termination will not cause the Master Trust or any Series to cease to be classified as a grantor trust for United States federal income tax purposes.

     Section 2.8 Powers and Duties of the Institutional Trustee.

     (a) The legal title to the Trust Property associated with a Series shall be owned by and held of record in the name of the Institutional Trustee for, with respect to, and on behalf of such Series in trust for the benefit of the Holders of the Securities of such Series. The right, title and interest of the Institutional Trustee to such Trust Property shall vest automatically in each Person who may hereafter be appointed as Institutional Trustee in accordance with Section 4.5. Such vesting and cessation of title shall be effective whether or not conveyancing documents with regard to such Trust Property have been executed and delivered.

     (b) The Institutional Trustee shall not transfer its right, title and interest in any Trust Property to the Administrators or to the Delaware Trustee.

     (c) The Institutional Trustee shall: 

 

           (i) establish and maintain a segregated non-interest bearing trust account in the name of the Master Trust for, with respect to and on behalf of each Series (each, a “Property Account”) in the United States (as defined in Treasury Regulations §301.7701 -7), in the name of and under the exclusive control of the Institutional Trustee, and maintained in the Institutional Trustee’s trust department, on behalf of the Holders of the Securities of such Series and, upon the

18

(9)Umpqua Holdings Corporation  

AU\4265172.3 

receipt of payments of funds made in respect of the Trust Property of such Series held by the Institutional Trustee, deposit such funds into such Property Account and make payments to the Holders of the Capital Securities and Holders of the Common Securities of such Series from such Property Account in accordance with Section 5.1. Funds in each Property Account shall be held uninvested until disbursed in accordance with this Declaration;

     (ii) engage in such ministerial activities as shall be necessary or appropriate to effect the redemption of the Capital Securities and the Common Securities of each Series to the extent the Debentures purchased by such Series are redeemed or mature; and

     (iii) upon written notice of distribution issued by the Administrators in accordance with the terms of the Securities of a Series, engage in such ministerial activities as shall be necessary or appropriate to effect the distribution of the Debentures purchased by such Series to Holders of such Securities upon the occurrence of the circumstances specified therefor under the terms of such Securities.

     (d) The Institutional Trustee shall take all actions and perform such duties as may be specifically required of the Institutional Trustee pursuant to the terms of the Securities.

     (e) The Institutional Trustee may bring or defend, pay, collect, compromise, arbitrate, resort to legal action with respect to, or otherwise adjust claims or demands of or against, the Master Trust (for itself and/or for, with respect to or on behalf of a Series) (a “Legal Action”) which arise out of or in connection with any default or Event of Default with respect to the Securities of such Series of which a Responsible Officer of the Institutional Trustee has actual knowledge or the Institutional Trustee’s duties and obligations under this Declaration or the Trust Indenture Act; provided, however, that if an Event of Default with respect to the Securities of such Series has occurred and is continuing and such event is attributable to the failure of the Debenture Issuer to pay interest or premium, if any, on or principal of the Debentures purchased by the Master Trust (for itself and/or for, with respect to or on behalf of a Series) on the date such interest, premium, if any, or principal is otherwise payable (or in the case of redemption, on the date of redemption), then a Holder of the Capital Securities of such Series may directly institute a proceeding for enforcement of payment to such Holder of the principal of or premium, if any, or interest that is so payable on such Debentures having a principal amount equal to the aggregate liquidation amount of the Capital Securities of such Holder (a “Direct Action”) on or after the respective due date specified in such Debentures. In connection with such Direct Action, the rights of the Holders of the Common Securities of such Series will be subrogated to the rights of such Holder of the Capital Securities of such Series to the extent of any payment made by the Debenture Issuer to such Holder of such Capital Securities in such Direct Action; provided, however, that a Holder of such Common Securities may exercise such right of subrogation only if no Event of Default with respect to such Capital Securities has occurred and is continuing.

(f) The Institutional Trustee shall continue to serve as a Trustee of the Master Trust (including with respect to each Series) until either:

19

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (i) the Master Trust or such Series, as the case may be, has been completely liquidated and the proceeds of the liquidation distributed to the Holders of the Securities of all Series, in the case of the Master Trust, or such Series, in the case of such Series, pursuant to the terms of such Securities and this Declaration; or

     (ii) a Successor Institutional Trustee has been appointed and has accepted that appointment in accordance with Section 4.5.

     (g) The Institutional Trustee shall have the legal power to exercise all of the rights, powers and privileges of a registered holder of Debentures under the Indenture and, if an Event of Default occurs and is continuing with respect to such Debentures, the Institutional Trustee may, for the benefit of Holders of the Securities of the Series on whose behalf the Master Trust purchased such Debentures, enforce its rights as registered holder of such Debentures subject to the rights of the Holders pursuant to this Declaration and the terms of such Securities.

     (h) The Institutional Trustee must exercise the powers set forth in this Section 2.8 in a manner that is consistent with the purposes and functions set out in Section 2.3, and the Institutional Trustee shall not take any action that is inconsistent with such purposes and functions.

     Section 2.9  Certain  Duties  and  Responsibilities  of  the  Trustees  and  the  Administrators.

     (a) The Institutional Trustee, before the occurrence of any Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)) with respect to a particular Series and after the curing of all such Events of Default that may have occurred, shall undertake with respect to that Series to perform only such duties as are specifically set forth in this Declaration and no implied covenants shall be read into this Declaration against the Institutional Trustee. In case an Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)) has occurred (that has not been cured or waived pursuant to Section 6.7) with respect to a particular Series, the Institutional Trustee shall with respect to that Series exercise such of the rights and powers vested in it by this Declaration, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

     (b) The duties and responsibilities of the Trustees and the Administrators shall be as provided by this Declaration and, in the case of the Institutional Trustee, by the Trust Indenture Act. Notwithstanding the foregoing, no provision of this Declaration shall require any Trustee or Administrator to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risk or liability is not reasonably assured to it. Whether or not therein expressly so provided, every provision of this Declaration relating to the conduct or affecting the liability of or affording protection to the Trustees or the Administrators shall be subject to the provisions of this Article. Nothing in this Declaration shall be construed to release

20

(9)Umpqua Holdings Corporation  

AU\4265172.3  

a Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct or bad faith.  Nothing in this Declaration shall be construed to release an Administrator from liability for
its own grossly negligent action, its own grossly negligent failure to act, or its own willful misconduct or bad faith.  To the extent that, at law or in equity, a Trustee or an Administrator has duties (including fiduciary duties) to the Master
Trust or to the Holders, such Trustee’s or Administrator’s duties may be restricted or eliminated by provisions in this Declaration, except that this Declaration may not eliminate the implied contractual covenant of good faith and fair
dealing. A Trustee or Administrator shall not be liable to the Master Trust or a Holder or another Person that is party to or is otherwise bound by the Declaration for breach of fiduciary duty for the Trustee’s or Administrator’s good
faith reliance on the provisions of the Declaration. The provisions of this Declaration, to the extent that they restrict or eliminate the liabilities of the Administrators or the Trustees otherwise existing at law or in equity, are agreed by the
Sponsor and the Holders to replace such other liabilities of the Administrators or the Trustees, except that no provision of this Declaration may limit or eliminate liability for any act or omission that constitutes a bad faith violation of the
implied contractual covenant of good faith and fair dealing.

     (c) All payments made by the Institutional Trustee or a Paying Agent in respect of any Securities of a Series shall be made only from the revenue and proceeds from the Trust Property of that Series
and only to the extent that there shall be sufficient revenue or proceeds from such Trust Property to enable the Institutional Trustee or a Paying Agent to make payments in accordance with the terms hereof. Each Holder, by its acceptance of a
Security, agrees that it will look solely to the revenue and proceeds from the Trust Property of that Series to the extent legally available for distribution to it as herein provided and that the Trustees and the Administrators are not personally
liable to it for any amount distributable in respect of any Security or for any other liability in respect of any Security. This Section 2.9(c) does not limit the liability of the Trustees expressly set forth elsewhere in this Declaration or, in the
case of the Institutional Trustee, in the Trust Indenture Act.

     (d) No provision of this Declaration shall be construed to relieve the Institutional Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct or bad faith with respect to matters that are within the authority of the Institutional Trustee under this Declaration, except that:

     (i) the Institutional Trustee shall not be liable for any error or judgment made in good faith by an Authorized Officer of the Institutional Trustee, unless it shall be proved that the Institutional
Trustee was negligent in ascertaining the pertinent facts;

     (ii) the Institutional Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a Majority in
liquidation amount of the Capital Securities or the Common Securities, as applicable, comprising any Series relating to the time, method and place of conducting any proceeding for any remedy available to the Institutional Trustee, or exercising any
trust or power conferred upon the Institutional Trustee under this Declaration;

21

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (iii) the Institutional Trustee’s sole duty with respect to the custody, safe keeping and physical preservation of any Trust Property shall be to deal with such property in a similar manner as the Institutional Trustee deals with similar property for its own account, subject to the protections and limitations on liability afforded to the Institutional Trustee under this Declaration and the Trust Indenture Act;

     (iv) the Institutional Trustee shall not be liable for any interest on any money received by it except as it may otherwise agree in writing with the Sponsor; and money held by the Institutional Trustee need not be segregated from other funds held by it except in relation to the Property Accounts maintained by the Institutional Trustee pursuant to Section 2.8(c)(i) and except to the extent otherwise required by law; and

     (v) the Institutional Trustee shall not be responsible for monitoring the compliance by the Administrators or the Sponsor with their respective duties under this Declaration, nor shall the Institutional Trustee be liable for any default or misconduct of the Administrators or the Sponsor.

     Section 2.10 Certain Rights of Institutional Trustee. Subject to the provisions of Section 2.9:

     (a) the Institutional Trustee may conclusively rely and shall fully be protected in acting or refraining from acting in good faith upon any resolution, written opinion of counsel, certificate, written representation of a Holder or transferee, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, appraisal, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, sent or presented by the proper party or parties;

     (b) if (i) in performing its duties under this Declaration, the Institutional Trustee is required to decide between alternative courses of action, (ii) in construing any of the provisions of this Declaration, the Institutional Trustee finds the same ambiguous or inconsistent with any other provisions contained herein, or (iii) the Institutional Trustee is unsure of the application of any provision of this Declaration, then, except as to any matter as to which Holders of the Capital Securities comprising any Series are entitled to vote under the terms of this Declaration, the Institutional Trustee may deliver a notice to the Sponsor requesting the Sponsor’s opinion as to the course of action to be taken and the Institutional Trustee shall take such action, or refrain from taking such action, as the Institutional Trustee in its sole discretion shall deem advisable and in the best interests of such Holders, in which event the Institutional Trustee shall have no liability except for its own negligence, willful misconduct or bad faith;

     (c) any direction or act of the Sponsor or the Administrators contemplated by this Declaration shall be sufficiently evidenced by an Officers’ Certificate;

     (d) whenever in the administration of this Declaration, the Institutional Trustee shall deem it desirable that a matter be proved or established before undertaking,

22

(9)Umpqua Holdings Corporation  

AU\4265172.3 

suffering or omitting any action hereunder, the Institutional Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and conclusively rely upon an Officers’
Certificate which, upon receipt of such request, shall be promptly delivered by the Sponsor or the Administrators;

     (e) the Institutional Trustee shall have no duty to see to any recording, filing or registration of any instrument (including any financing or continuation statement or any filing under tax or
securities laws) or any rerecording, refiling or reregistration thereof;

     (f) the Institutional Trustee may consult with counsel of its selection (which counsel may be counsel to the Sponsor or any of its Affiliates) and the advice of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon and in accordance with such advice; the Institutional Trustee shall have the right at any time to seek
instructions concerning the administration of this Declaration from any court of competent jurisdiction;

     (g) the Institutional Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Declaration at the request or direction of the Holders of the Capital Securities
comprising any Series pursuant to this Declaration, unless such Holders shall have offered to the Institutional Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction; provided, that nothing contained in this Section 2.10(g) shall be taken to relieve the Institutional Trustee, upon the occurrence of an Event of Default (of which the Institutional Trustee has knowledge (as
provided in Section 2.10(m) hereof)) that has not been cured or waived, of its obligation to exercise the rights and powers vested in it by this Declaration;

     (h) the Institutional Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
consent, order, approval, bond, debenture, note or other evidence of indebtedness or other paper or document, unless requested in writing to do so by one or more Holders, but the Institutional Trustee may make such further inquiry or investigation
into such facts or matters as it may see fit;

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

     (j) whenever in the administration of this Declaration the Institutional Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other
action hereunder affecting a series, the Institutional Trustee (i) may request instructions from the Holders of the Common Securities and the Capital Securities comprising such Series, which instructions may be given only by the Holders of the same
proportion in liquidation amount of such Common Securities and Capital Securities as would be entitled to direct the Institutional Trustee under the terms of such Common Securities and Capital Securities

23

(9)Umpqua Holdings Corporation  

AU\4265172.3 

in respect of such remedy, right or action, (ii) may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (iii) shall be fully protected in acting in accordance with such instructions;

     (k) except as otherwise expressly provided in this Declaration, the Institutional Trustee shall not be under any obligation to take any action that is discretionary under the provisions of this Declaration;

     (l) when the Institutional Trustee incurs expenses or renders services in connection with a Bankruptcy Event, such expenses (including the fees and expenses of its counsel) and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or law relating to creditors rights generally;

     (m) the Institutional Trustee shall not be charged with knowledge of an Event of Default unless a Responsible Officer of the Institutional Trustee has actual knowledge of such event or the Institutional Trustee receives written notice of such event from any Holder, except that the Institutional Trustee shall be deemed to have knowledge of any Event of Default pursuant to Sections 5.01(a), 5.01(b) or 5.01(c) of the Indenture (other than an Event of Default resulting from the default in the payment of Additional Amounts if the Institutional Trustee does not have actual knowledge or written notice that such payment is due and payable);

     (n) any action taken by the Institutional Trustee or its agents hereunder shall bind the Master Trust and the Series and the Holders of the Securities to which such action relates, and the signature of the Institutional Trustee or its agents alone shall be sufficient and effective to perform any such action and no third party shall be required to inquire as to the authority of the Institutional Trustee to so act or as to its compliance with any of the terms and provisions of this Declaration, both of which shall be conclusively evidenced by the Institutional Trustee’s or its agent’s taking such action; and

     (o) no provision of this Declaration shall be deemed to impose any duty or obligation on the Institutional Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or imposed on it, in any jurisdiction in which it shall be illegal, or in which the Institutional Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such act or acts, or to exercise any such right, power, duty or obligation, and no permissive power or authority available to the Institutional Trustee shall be construed to be a duty.

     Section 2.11 Delaware Trustee. Notwithstanding any other provision of this Declaration other than Section 4.2, the Delaware Trustee shall not be entitled to exercise any powers, and the Delaware Trustee shall not have any of the duties and responsibilities of any of the Trustees or the Administrators specified in this Declaration (except as may be required under the Statutory Trust Act). Except as set forth in Section 4.2, the Delaware Trustee shall be a Trustee for the sole and limited purpose of fulfilling the requirements of §3807 of the Statutory Trust Act.

     Section 2.12 Execution of Documents. Unless otherwise determined in writing by the Institutional Trustee, and except as otherwise required by the Statutory Trust Act, the

24

(9)Umpqua Holdings Corporation  

AU\4265172.3 

Institutional Trustee, or any one or more of the Administrators, as the case may be, is authorized to execute and deliver on behalf of the Master Trust (for itself and/or for, with respect to, and on behalf of any Series), any documents, agreements, instruments or certificates that the Trustees or the Administrators, as the case may be, have the power and authority to execute pursuant to Section 2.6.

     Section 2.13 Not Responsible for Recitals or Issuance of Securities. The recitals contained in this Declaration and the Securities shall be taken as the statements of the Sponsor, and the Trustees do not assume any responsibility for their correctness. The Trustees make no representations as to the value or condition of any Trust Property or any part thereof. The Trustees make no representations as to the validity or sufficiency of this Declaration, the Debentures or the Securities.

     Section 2.14 Term. The Institutional Trustee has filed a certificate of trust as required by §3810 of the Statutory Trust Act in connection with the formation of the Master Trust under the Statutory Trust Act, which includes a notice of limitations on liability as set forth in §3804 of the Statutory Trust Act. Upon such filing, the statutory provisions of §3804 of the Statutory Trust Act relating to limitations on liability (and the statutory effect under §3804 of including such notice) have become applicable to the Master Trust and each Series. Subject to the provisions of Article VII hereof, the term of the Master Trust shall terminate no later than five (5) years after the Maturity Date of the Securities comprising the last outstanding Series.

     Section 2.15 Mergers. (a) The Master Trust may not consolidate, amalgamate, merge with or into, or be replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to any corporation or other Person, except as described in this Section 2.15 and except with respect to the distribution of Debentures to Holders of Securities pursuant to Section 7.1(a)(iv) of this Declaration or Section 4 of the Series Supplement.

     (b) The Master Trust may, with the consent of the Administrators (which consent will not be unreasonably withheld) and without the consent of the Institutional Trustee, the Delaware Trustee or the Holders of the Capital Securities of any Series, consolidate, amalgamate, merge with or into, or be replaced by, or convey, transfer or lease its properties and assets as an entirety or substantially as an entirety to a trust organized as such under the laws of any state; provided, that:

     (i) if the Master Trust is not the survivor, such successor entity (the “Successor Entity”) either:

     (A) expressly assumes all of the obligations of the Master Trust under the Securities comprising each Series; or

     (B) substitutes for the Securities comprising each Series other securities in series having substantially the same terms as such Securities (the “Successor Securities”) so that the Successor Securities of each series rank the same as the Securities comprising the related Series rank with respect to Distributions and payments upon Liquidation, redemption and otherwise;

25

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (ii) the Sponsor expressly appoints, as the registered holder of the Debentures of each series related to the Securities, a trustee of the Successor Entity that possesses the same powers and duties as the Institutional Trustee;

     (iii) the Capital Securities of each Series or any Successor Securities of the related series are listed or quoted, or any such Successor Securities will be listed or quoted upon notification of issuance, on any national securities exchange or with another organization on which such Capital Securities are then listed or quoted, if any;

     (iv) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not cause the rating on the Capital Securities of any Series or any Successor Securities of the related series to be downgraded or withdrawn by any nationally recognized statistical rating organization, if such Capital Securities are then rated;

     (v) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences and privileges of the Holders of the Capital Securities of any Series or any Successor Securities of the related series in any material respect (other than with respect to any dilution of such Holders’ interests in the Successor Entity);

     (vi) such Successor Entity, if any, has a purpose substantially identical to that of the Master Trust;

     (vii) prior to such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, the Master Trust has received a written opinion of a nationally recognized independent counsel to the Master Trust experienced in such matters to the effect that:

     (A) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences and privileges of the Holders of the Capital Securities of any Series or any Successor Securities of the related series in any material respect (other than with respect to any dilution of such Holders’ interests in the Successor Entity);

     (B) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, none of the Master Trust, each Series, the Successor Entity or each series of a Successor Entity will be required to register as an Investment Company under the Investment Company Act;

     (C) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, the Master Trust, any Series, the Successor Entity or any series of a Successor Entity will continue to be classified as a grantor trust for United States federal income tax purposes; and

26

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (D) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, the requirements to preserve the limitations on liability set forth in §3804 of the Statutory
Trust Act are not contravened in any manner whatsoever;

     (viii) the Sponsor guarantees the obligations of the Successor Entity under the Successor Securities to the same extent provided by the Indenture, the applicable Guarantees, the Debentures and this
Declaration; and

     (ix) prior to such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, the Institutional Trustee shall have received an Officers’ Certificate of the Administrators
and an opinion of counsel, each to the effect that all conditions precedent of this paragraph (b) to such transaction have been satisfied.

     (c) Notwithstanding Section 2.15(b), the Master Trust shall not, except with the consent of Holders of 100% in liquidation amount of the Securities of each Series, consolidate, amalgamate, merge with
or into, or be replaced by, or convey, transfer or lease its properties and assets as an entirety or substantially as an entirety to, any other Person or permit any other Person to consolidate, amalgamate, merge with or into, or replace it if such
consolidation, amalgamation, merger, replacement, conveyance, transfer or lease would violate the limitations specified in Section 2.15 (b) (vii) (B), (C) or (D).

	
ARTICLE III

SPONSOR

     Section 3.1 Sponsor’s Purchase of Common Securities.  On the closing date for the issuance and sale of Capital Securities of a
particular Series, the Sponsor will purchase all of the Common Securities of such Series, in an amount at least equal to 3% of the capital of such Series, at the same time as such Capital Securities are sold.

     Section 3.2 Responsibilities of the Sponsor. In connection with the issuance and sale of Capital Securities of any Series, the Sponsor shall
have the exclusive right and responsibility and sole decision to engage in, or direct the Administrators to engage in, the following activities:

     (a) to determine the jurisdictions in which to take appropriate action to qualify or register for sale all or part of such Capital Securities and to do any and all such acts, other than actions which
must be taken by the Master Trust, and advise the Master Trust of actions it must take (for itself and/or for, with respect to or on behalf of such Series), and prepare for execution and filing any documents to be executed and filed by the Master
Trust (for itself and/or for, with respect to or on behalf of such Series), as the Sponsor deems necessary, advisable or incidental thereto in order to comply with the applicable laws of any such jurisdictions;

     (b) to ensure the filing and request the Administrators to cause the filing by the Master Trust (for itself and/or for, with respect to or on behalf of such Series), as may be appropriate, of an
application to the PORTAL system, for listing or quotation upon notice of

27

(9)Umpqua Holdings Corporation  

AU\4265172.3 

issuance of such Capital Securities, as requested by the Holders of not less than a Majority in liquidation amount of such Capital Securities;

     (c) to negotiate the terms of and/or execute and deliver on behalf of the Master Trust (for itself and/or for, with respect to or on behalf of such Series), the placement, purchase, subscription and other related agreements providing for the issuance and sale of such Capital Securities and the related Debentures; and

     (d) to establish the terms of the Securities of any Series by the execution and delivery of a Series Supplement to the Institutional Trustee, as well as the related Guarantee.

	ARTICLE IV

TRUSTEES AND ADMINISTRATORS

Section 4.1  Number of Trustees. The number of Trustees initially shall be two, and:      

     (a)  at any time before the issuance of any Securities, the Sponsor may, by written instrument, increase or decrease the number of Trustees; and

     (b) after the issuance of any Securities, the number of Trustees may be increased or decreased by the act of the Holders of more than 50% of the aggregate liquidation amount of the Common Securities of all Series then outstanding, voting together as a single class, at a meeting of the Holders of the Common Securities; provided, however, that there shall be a Delaware Trustee if required by Section 4.2; and there shall always be one Trustee who shall be the Institutional Trustee, and such Trustee may also serve as Delaware Trustee if it meets the applicable requirements, in which case Section 2.11 shall have no application to such entity in its capacity as Institutional Trustee.

Section 4.2 Delaware Trustee. If required by the Statutory Trust Act, one Trustee (the “Delaware Trustee”) shall be:

     (a) a natural person who is a resident of the State of Delaware and a U.S. Person at least 21 years of age; or

     (b) if not a natural person, an entity which is organized under the laws of the United States or any state thereof or the District of Columbia, has its principal place of business in the State of Delaware, and otherwise meets the requirements of applicable law, including §3807 of the Statutory Trust Act.

     The initial Delaware Trustee shall be LaSalle National Trust Delaware.

     Section 4.3  Institutional Trustee; Eligibility. 

      (a)  There shall at all times be one Trustee that shall act as Institutional Trustee which shall:

28

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (i)      not be an Affiliate of the Sponsor; 

     (ii)      not offer or provide credit or credit enhancement to the Master Trust or any Series; and

     (iii) be a banking corporation or national association organized and doing business under the laws of the United States of America or any state thereof or of the District of Columbia and authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000), and subject to supervision or examination by federal, state or District of Columbia authority. If such corporation or national association publishes reports of condition at least annually, pursuant to law or to the requirements of the supervising or examining authority referred to above, then for the purposes of this Section 4.3(a)(iii), the combined capital and surplus of such corporation or national association shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

     (b) If at any time the Institutional Trustee shall cease to be eligible to so act under Section 4.3(a), the Institutional Trustee shall immediately resign in the manner and with the effect set forth in Section 4.5.

     (c) If the Institutional Trustee has or shall acquire any “conflicting interest” within the meaning of §310(b) of the Trust Indenture Act, the Institutional Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to this Declaration.

     (d) The initial Institutional Trustee shall be LaSalle Bank National Association

     Section 4.4 Administrators. Each Administrator shall be a U.S. Person. There shall at all times be at least one Administrator. Except where a requirement for action by a specific number of Administrators is expressly set forth in this Declaration and except with respect to any action the taking of which is the subject of a meeting of the Administrators, any action required or permitted to be taken by the Administrators may be taken by, and any power of the Administrators may be exercised by, or with the consent of, any one such Administrator acting alone.

     Section 4.5  Appointment, Removal and Resignation of the Trustees and the Administrators.  

     (a) No resignation or removal of any Trustee (the “Relevant Trustee”) and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of this Section.

     (b) Subject to Section 4.5(a), a Relevant Trustee may resign at any time by giving written notice thereof to the Holders of the Securities of all Series and by appointing a successor Relevant Trustee. Upon the resignation of the Institutional Trustee, the Institutional

29

(9)Umpqua Holdings Corporation  

AU\4265172.3 

Trustee shall appoint a successor by requesting from at least three Persons meeting the eligibility requirements their expenses and charges to serve as the successor Institutional Trustee on a form provided by the Administrators, and selecting the Person who agrees to the lowest expense and charges (the “Successor Institutional Trustee”). If the instrument of acceptance by the successor Relevant Trustee required by this Section shall not have been delivered to the Relevant Trustee within 60 days after the giving of such notice of resignation or delivery of the instrument of removal, the Relevant Trustee may petition, at the expense of the Master Trust, any federal, state or District of Columbia court of competent jurisdiction for the appointment of a successor Relevant Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Relevant Trustee. The Institutional Trustee shall have no liability for the selection of such successor pursuant to this Section.

     (c) Unless an Event of Default shall have occurred and be continuing with respect to the Capital Securities of any Series, any Trustee may be removed at any time by an act of the Holders of more than 50% of the aggregate liquidation amount of the Common Securities of all Series then outstanding, voting together as a single class. If any Trustee shall be so removed, the Holders of the Common Securities, by act of the Holders of more than 50% of the aggregate liquidation amount of the Common Securities of all Series then outstanding, voting together as a single class, delivered to the Relevant Trustee, shall promptly appoint a successor Relevant Trustee, and such successor Relevant Trustee shall comply with the applicable requirements of this Section. If an Event of Default with respect to the Capital Securities of one or more Series shall have occurred and be continuing, the Institutional Trustee or the Delaware Trustee, or both of them, may be removed by the act of the Holders of more than 50% of the aggregate liquidation amount of the Capital Securities of all Series then outstanding, voting together as a single class, delivered to the Relevant Trustee (in its individual capacity and on behalf of the Series). If any Trustee shall be so removed, the Holders of Capital Securities, by act of the Holders of more than 50% of the aggregate liquidation amount of the Capital Securities of all Series then outstanding, voting together as a single class, delivered to the Relevant Trustee, shall promptly appoint a successor Relevant Trustee or Trustees, and such successor Relevant Trustee shall comply with the applicable requirements of this Section. If no successor Relevant Trustee shall have been so appointed by the Holders of more than 50% of the aggregate liquidation amount of the Capital Securities of all Series then outstanding, voting together as a single class, and accepted appointment in the manner required by this Section within 30 days after delivery of an instrument of removal, the Relevant Trustee or any Holder who has been a Holder of Securities for at least six months may, on behalf of himself and all others similarly situated, at the expense of the Master Trust, petition any federal, state or District of Columbia court of competent jurisdiction for the appointment of a successor Relevant Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a successor Relevant Trustee or Trustees.

     (d) The Institutional Trustee shall give notice of each resignation and each removal of a Trustee and each appointment of a successor Trustee to all Holders and to the Sponsor. Each notice shall include the name of the successor Relevant Trustee and the address of its Corporate Trust Office if it is the Institutional Trustee.

     (e) Notwithstanding the foregoing or any other provision of this Declaration, in the event a Delaware Trustee who is a natural person dies or is adjudged by a court to have

30

(9)Umpqua Holdings Corporation  

AU\4265172.3 

become incompetent or incapacitated, the vacancy created by such death, incompetence or incapacity may be filled by the Institutional Trustee following the procedures in this Section (with the successor being a Person who
satisfies the eligibility requirement for a Delaware Trustee set forth in this Declaration) (the “Successor Delaware Trustee”).

     (f) In case of the appointment hereunder of a successor Relevant Trustee, the retiring Relevant Trustee and each successor Relevant Trustee with respect to the Securities shall execute and deliver an
amendment hereto wherein each successor Relevant Trustee shall accept such appointment and which (a) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Relevant Trustee all the
rights, powers, trusts and duties of the retiring Relevant Trustee with respect to the Securities of each Series and the Master Trust and (b) shall add to or change any of the provisions of this Declaration as shall be necessary to provide for or
facilitate the administration of the Master Trust and the Series established from time to time by more than one Relevant Trustee, it being understood that nothing herein or in such amendment shall constitute such Relevant Trustees co-trustees and
upon the execution and delivery of such amendment the resignation or removal of the retiring Relevant Trustee shall become effective to the extent provided therein and each such successor Relevant Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Relevant Trustee; but, on request of the Master Trust or any successor Relevant Trustee, such retiring Relevant Trustee shall duly assign, transfer and
deliver to such successor Relevant Trustee all Trust Property, all proceeds thereof and money held by such retiring Relevant Trustee hereunder with respect to the Securities and each Series subject to the payment of all unpaid fees, expenses and
indemnities of such retiring Relevant Trustee.

     (g) No Institutional Trustee or Delaware Trustee shall be liable for the acts or omissions to act of any Successor Institutional Trustee or Successor Delaware Trustee, as the case may be.

     (h) Holders of Capital Securities will have no right to vote to appoint, remove or replace the Administrators, which voting rights are vested exclusively in the Holders of the Common
Securities.

     (i) Any Successor Delaware Trustee shall file an amendment to the Certificate of Trust with the Secretary of State of the State of Delaware identifying the name and principal place of business of such
Delaware Trustee in the State of Delaware.

     Section 4.6 Vacancies Among Trustees. If a Trustee ceases to hold office for any reason and the number of Trustees is not reduced pursuant to
Section 4.1, or if the number of Trustees is increased pursuant to Section 4.1, a vacancy shall occur. A resolution certifying the existence of such vacancy by the Trustees or, if there are more than two, a majority of the Trustees shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be filled with a Trustee appointed in accordance with Section 4.5.

     Section 4.7 Effect of Vacancies. The death, resignation, retirement, removal, bankruptcy, dissolution, liquidation, incompetence or
incapacity to perform the duties of a Trustee shall not operate to dissolve, terminate or annul the Master Trust or any Series or

31

(9)Umpqua Holdings Corporation  

AU\4265172.3 

terminate this Declaration.  Whenever a vacancy in the number of Trustees shall occur, until such vacancy is filled by the appointment of a Trustee in accordance with Section 4.5, the Institutional Trustee shall have all the
powers granted to the Trustees and shall discharge all the duties imposed upon the Trustees by this Declaration.

     Section 4.8 Meetings of the Trustees and the Administrators. Meetings of the Trustees or the Administrators shall be held from time to time
upon the call of any Trustee or Administrator, as applicable.  Regular meetings of the Trustees and the Administrators, respectively, may be in person in the United States or by telephone, at a place (if applicable) and time fixed by resolution of
the Trustees or the Administrators, as applicable. Notice of any in-person meetings of the Trustees or the Administrators shall be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier) not
less than 48 hours before such meeting.  Notice of any telephonic meetings of the Trustees or the Administrators or any committee thereof shall be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 24 hours before a meeting.  Notices shall contain a brief statement of the time, place and anticipated purposes of the meeting. The presence (whether in person or by telephone) of a Trustee or an Administrator, as
the case may be, at a meeting shall constitute a waiver of notice of such meeting except where a Trustee or an Administrator, as the case may be, attends a meeting for the express purpose of objecting to the transaction of any activity on the ground
that the meeting has not been lawfully called or convened. Unless provided otherwise in this Declaration, any action of the Trustees or the Administrators, as the case may be, may be taken at a meeting by vote of a majority of the Trustees or the
Administrators present (whether in person or by telephone) and eligible to vote with respect to such matter; provided, that, in the case of the Administrators, a Quorum is present, or without a meeting by the unanimous written consent of the
Trustees or the Administrators, as the case may be.  Meetings of the Trustees and the Administrators together shall be held from time to time upon the call of any Trustee or Administrator.

     Section 4.9 Delegation of Power. (a) Any Trustee or any Administrator, as the case may be, may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 that is a U.S. Person his or her power for the purpose of executing any documents, instruments or other writings contemplated in Section 2.6.

     (b) The Trustees shall have power to delegate from time to time to such of their number or to any officer of the Master Trust that is a U.S. Person, the doing of such things and the execution of such
instruments or other writings either in the name of the Master Trust (for itself and/or for, in respect of or on behalf of any Series),or the names of the Trustees or otherwise as the Trustees may deem expedient, to the extent such delegation is not
prohibited by applicable law or contrary to the provisions of this Declaration, as set forth herein.

     Section 4.10 Merger, Conversion, Consolidation or Succession to Business. Any Person into which the Institutional Trustee or the Delaware
Trustee, as the case may be, may be merged or converted or with which either may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Institutional Trustee or the Delaware Trustee, as the case may be,
shall be a party, or any Person succeeding to all or substantially all the corporate trust business of the Institutional Trustee or the Delaware Trustee, as the case may

32

(9)Umpqua Holdings Corporation  

AU\4265172.3 

be, shall be the successor of the Institutional Trustee or the Delaware Trustee, as the case may be, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided
such Person shall be otherwise qualified and eligible under this Article and, provided, further, that such Person shall file an amendment to the Certificate of Trust with the Secretary of State of the State of Delaware as contemplated in Section
4.5(i) .

	
ARTICLE V

DISTRIBUTIONS

     Section 5.1 Distributions. Holders of the Securities of any Series shall receive Distributions in accordance with the applicable terms of
such Securities and solely with respect to the Trust Property of such Series. Distributions shall be made on the Capital Securities and the Common Securities in accordance with the preferences set forth in their respective terms. If and to the
extent that the Institutional Trustee receives any payment on or in connection with the Trust Property of any Series (the amount of any such payment being a “Payment Amount” in respect of such Trust Property), the Institutional Trustee
shall and is directed, to the extent funds are available in the Property Account for such Series for that purpose, to make a distribution (a “Distribution”) of the Payment Amount to Holders of the Securities of such Series.  For the
avoidance of doubt, funds in such Property Account shall not be distributed to Holders to the extent of any taxes payable by such Series, in the case of withholding taxes, as determined by the Institutional Trustee or any Paying Agent and, in the
case of taxes other than withholding taxes, as determined by the Administrators in a written notice to the Institutional Trustee.

     The Administrators shall cause separate and distinct records to be maintained for each Series and shall cause the assets associated with each Series to be held in such separate and distinct records
(directly or indirectly, including through a nominee or otherwise) and accounted for in such separate and distinct records separately from the assets of any other Series or the Master Trust generally.  Holders of the Securities of any Series shall
only be entitled to the benefit of the Trust Property of such Series, and not the assets of the Master Trust generally or any other Series, and the Trust Property of such Series shall be charged with the liabilities belonging to such Series as
contemplated in Section 2.6(a)(i)(R), and such liabilities shall be enforceable against the assets of such Series only, and not against the assets of any other Series or the Master Trust generally, and none of the debts, liabilities, obligations and
expenses incurred, contracted for or otherwise existing with respect to any other Series or, except as contemplated in Section 2.6(a)(i)(R), the Master Trust generally, shall be enforceable against the assets of such Series.

	
ARTICLE VI

	
ISSUANCE OF SECURITIES SECTION

Section 6.1 General Provisions Regarding Securities.

     (a) The equity interests of the Master Trust shall be divided into series, each a Series, as provided in §3806(b)(2) of the Statutory Trust Act. It is the intent of the parties hereto, and upon
acceptance of its Security each Holder’s intent shall be deemed to be, that the Master

33

(9)Umpqua Holdings Corporation  

AU\4265172.3 

Trust and each Series receive the full benefit of the limitations on liability as set forth in §3804 of the Statutory Trust Act. Each Administrator shall have the power and authority to establish and designate such separate and distinct Series and to fix the rights, preferences and powers of the Securities of each such Series, and the establishment and designation of the particular separate and distinct Series and the applicable rights, preferences and powers of its Securities shall become effective upon an Administrator’s execution and delivery of a Series Supplement (substantially in the form of Annex I) to the Institutional Trustee. Each Series Supplement shall be deemed to be part of this Declaration with respect to the Series established thereunder. The number of Series shall be unlimited.

     An Administrator shall on behalf of the Master Trust issue one or more Series, each such Series to be comprised of a class of preferred undivided beneficial interests in the assets of such Series and having such terms as are set forth in the Series Supplement applicable to such Series and evidenced by a Certificate substantially in the form of Exhibit A-l (the “Capital Securities”), and a class of common undivided beneficial interests in the assets of such Series and having such terms as are set forth in the Series Supplement applicable to such Series and evidenced by a Certificate substantially in the form of Exhibit A-2 (the “Common Securities”). No securities or other interests in the assets of the Master Trust or any Series may be issued other than the Capital Securities and the Common Securities of each Series. The Capital Securities of any Series rank pari passu with, and payment thereon shall be made Pro Rata with, the Common Securities of such Series with respect to the Trust Property of such Series except that, where an Event of Default has occurred and is continuing with respect to such Securities, the rights of Holders of such Common Securities to payment in respect of the related Distributions and payments upon liquidation of such Series, redemption of such Securities and otherwise are subordinated to the rights to payment of the Holders of such Capital Securities.

     (b) Each Series Supplement and related Certificates shall be signed on behalf of the Master Trust by one or more Administrators. Such signature shall be the facsimile or manual signature of any Administrator. In case any Administrator who shall have signed any of the Certificates shall cease to be such Administrator before the Certificates so signed shall be delivered by the Master Trust, such Certificates nevertheless may be delivered as though the person who signed such Certificates had not ceased to be such Administrator. Any Certificate may be signed on behalf of the Master Trust by such person who, at the actual date of execution of such Certificate, shall be an Administrator, although at the date of the execution and delivery of this Declaration any such person was not such an Administrator. A Capital Security shall not be valid until the Certificate evidencing it is authenticated by the manual or facsimile signature of an Authorized Officer of the Institutional Trustee. Such signature shall be conclusive evidence that the Certificate evidencing such Capital Security has been authenticated under this Declaration. Upon written order of the Master Trust signed by one Administrator, the Institutional Trustee shall authenticate one or more Certificates evidencing the Capital Securities of a particular Series for original issue. The Institutional Trustee may appoint an authenticating agent that is a U.S. Person acceptable to the Sponsor to authenticate Certificates evidencing Capital Securities. A Common Security need not be so authenticated and shall be valid upon execution by one or more Administrators.

     (c) The Capital Securities issued pursuant to Regulation S of the Securities Act or to QIBs shall be, except as provided in Section 6.4, Book-Entry Capital Securities issued

34

(9)Umpqua Holdings Corporation  

AU\4265172.3 

in the form of one or more Global Capital Securities registered in the name of the Depositary or its nominee and deposited with the Depositary or, if not so deposited, held by the Institutional Trustee as a custodian for the Depositary, for credit by the Depositary to the respective accounts of the Depositary Participants (or such other accounts as they may direct). The Master Trust, as issuer, and the Institutional Trustee, as custodian, are hereby authorized to execute, deliver and perform any letter of representations and other similar agreements or writings in connection with Capital Securities of a Series issued in the form of Global Capital Securities.

     (d) The consideration received by the Master Trust for the issuance of the Securities comprising any Series shall constitute a contribution to the capital of such Master Trust and shall not constitute a loan to such Master Trust.

     (e) Upon issuance of the Securities as provided in this Declaration, the Securities so issued shall be deemed to be validly issued, fully paid and non-assessable, and each Holder thereof shall be entitled to the benefits provided by this Declaration.

     (f) Every Person, by virtue of having become a Holder in accordance with the terms of this Declaration, shall be deemed to have expressly assented and agreed to the terms of, and shall be bound by, this Declaration and the related Guarantee.

     Section 6.2 Paying Agent, Transfer Agent, Calculation Agent and Registrar.

     (a) The Master Trust shall maintain (i) an office or agency where the Securities may be presented for payment (the “Paying Agent”) and (ii) an office or agency where Securities may be presented for registration of transfer or exchange (the “Transfer Agent”). The Master Trust shall keep or cause to be kept at such office or agency a register (the “Securities Register”) for the purpose of registering Securities and transfers and exchanges of Securities, such Securities Register to be held by a registrar (the “Registrar”). The Administrators may appoint the Paying Agent, the Registrar and the Transfer Agent, and may appoint one or more additional Paying Agents, one or more co-Registrars, or one or more co-Transfer Agents in such other locations as it shall determine. The term “Paying Agent” includes any additional Paying Agent, the term “Registrar” includes any additional Registrar or co-Registrar and the term “Transfer Agent” includes any additional Transfer Agent or co-Transfer Agent. The Administrators may change any Paying Agent, Transfer Agent or Registrar at any time without prior notice to any Holder. The Administrators shall notify the Institutional Trustee of the name and address of any Paying Agent, Transfer Agent and Registrar not a party to this Declaration. The Administrators hereby initially appoint the Institutional Trustee to act as Paying Agent, Transfer Agent and Registrar for the Capital Securities and the Common Securities of each Series at its Corporate Trust Office. The Institutional Trustee or any of its Affiliates in the United States may act as Paying Agent, Transfer Agent or Registrar.

     (b) Whenever the Master Trust issues Securities of any Series with a Coupon Rate that is not fixed, it shall also appoint a Calculation Agent, which shall determine the Coupon Rate in accordance with the terms of such Securities.

     Section 6.3 Form and Dating.

35

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (a) The Capital Securities of each Series shall be evidenced by one or more Certificates, and the Institutional Trustee’s certificate of authentication thereon shall be, substantially in the form of Exhibit A-l, and the Common Securities of each Series shall be evidenced by one or more Certificates substantially in the form of Exhibit A-2, each of which is hereby incorporated in and expressly made a part of this Declaration. Certificates may be typed, printed, lithographed or engraved or may be produced in any other manner as is reasonably acceptable to the Administrators, as conclusively evidenced by their execution thereof. Certificates evidencing Securities of each Series may have letters, numbers, notations or other marks of identification or designation and such legends or endorsements required by law, stock exchange rule, agreements to which the Master Trust (for itself and/or for, with respect to or on behalf of such Series) is subject, if any, or usage (provided, that any such notation, legend or endorsement is in a form acceptable to the Sponsor). The Master Trust at the direction of the Sponsor shall furnish any such legend not contained in Exhibit A-l to the Institutional Trustee in writing. Each Capital Security Certificate shall be dated the date of its authentication. The terms and provisions of the Securities set forth in the applicable Series Supplement and the forms of Certificates set forth in Exhibits A-l and A-2 are expressly made part of the terms of this Declaration and to the extent applicable, the Institutional Trustee, the Delaware Trustee, the Administrators and the Sponsor, by their execution and delivery of this Declaration, expressly agree to such terms and provisions and to be bound thereby. Capital Securities will be issued only in blocks having an aggregate liquidation amount of not less than $100,000.

     (b) The Capital Securities being offered and sold by the Master Trust initially will be issued in registered form, without coupons and with the Restricted Securities Legend.

     Section 6.4  Book-Entry Capital Securities.

     (a) Book-Entry Capital Securities and Definitive Capital Securities of the same Series may be exchanged or transferred, in whole or in part, for one another only if such exchange or transfer complies with such procedures as are substantially consistent with this Section 6.4 and Article VIII. In addition, if (i) the Depositary advises the Administrators and the Institutional Trustee in writing that the Depositary is no longer willing or able to properly discharge its responsibilities with respect to a Global Capital Security, and no qualified successor is appointed by the Administrators within ninety (90) days of receipt of such notice, (ii) the Depositary ceases to be a clearing agency registered under the Exchange Act and the Administrators fail to appoint a qualified successor within ninety (90) days of obtaining knowledge of such event or (iii) an Indenture Event of Default has occurred and is continuing, a Global Capital Security may be exchanged, in whole or in part, for Definitive Capital Securities of the same Series registered in the names of the Beneficial Owners of the Book-Entry Capital Securities evidenced thereby. Upon the occurrence of any event specified in clause (i), (ii) or (iii) above, the Administrators shall notify the Depositary and instruct the Depositary to notify all Beneficial Owners and the Institutional Trustee of the occurrence of such event and of the availability of Definitive Capital Securities Certificates to Beneficial Owners. Upon the issuance of Definitive Capital Securities Certificates evidencing Capital Securities of the same Series, the Administrators and the Institutional Trustee shall recognize the Holders of the Definitive Capital Securities as Holders. Notwithstanding the foregoing, if an Owner of a beneficial interest in a Global Capital Security wishes at any time to transfer an interest in such Global Capital Security to a Person other than a QIB, such transfer shall be effected, subject to the Applicable Depository

36

(9)Umpqua Holdings Corporation  

AU\4265172.3 

Procedures, in accordance with the provisions of this Section 6.4 and Article VIII, and the transferee shall receive a Definitive Capital Securities Certificate in connection with such transfer. A holder of a Definitive Capital
Securities Certificate that is a QIB may, upon request, and in accordance with the provisions of this Section 6.4 and Article VIII, exchange such Definitive Capital Securities Certificate for a beneficial interest in a Global Capital
Security.

     (b) If (A) any Global Capital Security is to be exchanged or transferred for Definitive Capital Securities Certificates evidencing Capital Securities of the same Series or canceled in part or (B) any
Definitive Capital Securities Certificate is to be exchanged in whole or in part for any Global Capital Security evidencing Capital Securities of the same Series, then (i) such Global Capital Security, in the case of clause (A), or such Definitive
Capital Securities Certificate, in the case of clause (B), shall be so surrendered for exchange, transfer or cancellation as provided in this Section 6.4 and Article VIII, (ii) subject to Section 8.2(d), the aggregate liquidation amount represented
by such Global Capital Security so surrendered for exchange, transfer or cancellation shall be reduced by an amount equal to the liquidation amount represented by that portion of the Global Capital Security to be so exchanged, transferred or
canceled, or the aggregate liquidation amount represented by any Global Capital Security evidencing Capital Securities of the same Series shall be increased by an amount equal to the liquidation amount represented by such Definitive Capital
Securities Certificates so exchanged for such Global Capital Security, as the case may be, by means of an appropriate adjustment made on the records of the Registrar, whereupon the Institutional Trustee, in accordance with the Applicable Depositary
Procedures, shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records and (iii) upon receipt of registration instructions, the Administrators, or any one of them, shall execute and the
Institutional Trustee shall authenticate and deliver (1) Definitive Capital Securities Certificates evidencing Capital Securities of the same Series in exchange for the Global Capital Security (or any portion thereof) so surrendered for exchange in
accordance with the instructions of the Depositary or (2) a new Global Capital Security evidencing Capital Securities of the same Series if no Global Capital Security evidencing Capital Securities of the same Series is then outstanding.  The
Registrar, Administrators and the Institutional Trustee may conclusively rely on, and shall be fully protected in relying on, such instructions.

     (c) Every Definitive Capital Securities Certificate executed and delivered upon registration or transfer of, or in exchange for or in lieu of, a Global Capital Security evidencing Capital Securities
of the same Series or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Capital Security, unless such Definitive Capital Securities Certificate is registered in the name of a Person other than the Depositary
for such Global Capital Security or a nominee thereof.

     (d) The Depositary or its nominee, as registered owner of a Global Capital Security, shall be the Holder of such Global Capital Security for all purposes under this Declaration and such Global Capital
Security, and Beneficial Owners with respect to a Global Capital Security shall hold their interests pursuant to the Applicable Depositary Procedures. The Registrar, the Administrators and the Institutional Trustee shall be entitled to deal with the
Depositary for all purposes of this Declaration relating to such Global Capital Securities (including the payment of the liquidation amount of and Distributions on the Book Entry Capital Securities represented thereby and the giving of instructions
or directions by Owners of Book-

37

(9)Umpqua Holdings Corporation  

AU\4265172.3 

Entry Capital Securities represented thereby and the giving of notices) as the sole Holder of the Book-Entry Capital Securities represented thereby and shall have no obligations to the Beneficial Owners thereof. None of the Administrators, the Institutional Trustee or the Registrar shall have any liability in respect of any book-entry transfers effected by the Depositary.

     (e) The rights of the Beneficial Owners of Book-Entry Capital Securities shall be exercised only through the Depositary and shall be limited to those established by law, the Applicable Depositary Procedures and agreements between such Beneficial Owners and the Depositary and/or its Depositary Participants; provided, solely for the purpose of determining whether the Holders of the requisite liquidation amount of Capital Securities of the applicable Series have voted on any matter provided for in this Declaration, to the extent that Capital Securities are represented by a Global Capital Security, the Administrators and the Institutional Trustee may conclusively rely on, and shall be fully protected in relying on, any written instrument (including a proxy) delivered to the Institutional Trustee by the Depositary setting forth the Beneficial Owners’ votes or assigning the right to vote on any matter to any other Persons either in whole or in part. To the extent that Capital Securities are represented by a Global Capital Security, subject to this Section 6.4, the initial Depositary will make book-entry transfers among the Depositary Participants and receive and transmit payments on the Capital Securities that are represented by such Global Capital Security to such Depositary Participants, and none of the Sponsor, the Administrators or the Institutional Trustee shall have any responsibility or obligation with respect thereto.

     (f) To the extent that a notice or other communication to the Holders is required under this Declaration, for so long as Capital Securities are represented by a Global Capital Security, the Administrator and the Institutional Trustee shall give all such notices and communications in respect of such Capital Securities to the Depositary, and shall have no obligations to the Beneficial Owners.

     Section 6.5 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated Certificate should be surrendered to the Registrar, or if the Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate and (b) the related Holder shall deliver to the Registrar, the Administrators and the Institutional Trustee such security or indemnity as may be reasonably required by them to keep each of them harmless, then, in the absence of notice that such Certificate shall have been acquired by a bona fide purchaser, an Administrator on behalf of the Master Trust shall execute (and in the case of a Capital Security Certificate, the Institutional Trustee shall authenticate) and deliver to such Holder, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate evidencing Securities of the same Series of like denomination. In connection with the issuance of any new Certificate under this Section, the Registrar or the Administrators may require such Holder to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. Any Certificate executed and delivered pursuant to this Section shall constitute conclusive evidence of an ownership interest in the relevant Securities, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

     Section 6.6 Temporary Certificates. Until definitive Certificates are ready for delivery, the Administrators may prepare and execute on behalf of the Master Trust and, in the

38

(9)Umpqua Holdings Corporation  

AU\4265172.3 

case of Capital Security Certificates, the Institutional Trustee shall authenticate, temporary Certificates. Temporary Certificates shall be substantially in the form of definitive Certificates but may have variations that the Administrators consider appropriate for temporary Certificates. Without unreasonable delay, the Administrators shall prepare and execute on behalf of the Master Trust and, in the case of the Capital Security Certificates, the Institutional Trustee shall authenticate definitive Certificates in exchange for temporary Certificates.

     Section 6.7 Cancellation. The Administrators at any time may deliver Certificates evidencing Securities to the Institutional Trustee for cancellation. The Registrar shall forward to the Institutional Trustee any Certificates evidencing Securities surrendered to it for registration of transfer, redemption or payment. The Institutional Trustee shall promptly cancel all Certificates surrendered for registration of transfer, payment, replacement or cancellation and shall dispose of such canceled Certificates as the Administrators direct. The Administrators may not issue new Certificates to replace Certificates evidencing Securities that have been paid or, except for Certificates surrendered for purposes of the transfer or exchange of the Securities evidenced thereby, that have been delivered to the Institutional Trustee for cancellation.

     Section 6.8 Rights of Holders; Waivers of Past Defaults.

     (a) The legal title to the Trust Property of any Series is vested exclusively in the Institutional Trustee (in its capacity as such) in accordance with Section 2.5 and Section 2.6, and the Holders of the Securities of such Series shall not have any right or title therein other than the undivided beneficial interest in the assets associated with such Series conferred by their Securities and they shall have no right to call for any partition or division of property, profits or rights of the Master Trust or such Series except as described below. The Securities shall be personal property giving only the rights specifically set forth therein and in this Declaration. The Securities shall have no, and the issuance of the Securities shall not be subject to, preemptive or other similar rights and when issued and delivered to Holders against payment of the purchase price therefor, the Securities will be validly issued, fully paid and nonassessable.

     (b) For so long as the Capital Securities of any Series remain outstanding, if, upon an Indenture Event of Default pursuant to Sections 5.01(b), (e), (f), (g), (h) or (i) of the Indenture, the Debenture Trustee fails or the registered holders of not less than 25% in principal amount of the outstanding Debentures purchased by the Master Trust for, with respect to or on behalf of such Series fail to declare the principal of such Debentures to be immediately due and payable, the Holders of not less than 25% (in liquidation amount) of the Capital Securities of such Series then outstanding shall have the right to make such declaration by a notice in writing to the Institutional Trustee, the Sponsor and the Debenture Trustee.

     (c) At any time after the acceleration of maturity of such Debentures has been made and before a judgment or decree for payment of the money due has been obtained by the Debenture Trustee as provided in the Indenture, if the Institutional Trustee, subject to the provisions hereof, fails to annul any such acceleration and waive such default, the Holders of not less than 25% (in liquidation amount) of the Capital Securities of such Series then outstanding, by written notice to the Institutional Trustee, the Sponsor and the Debenture Trustee, may rescind and annul such acceleration and its consequences if:

39

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (i) the Sponsor has paid or deposited with the Debenture Trustee a sum sufficient to pay

     (A) all overdue installments of interest on all of the outstanding Debentures of the series to which the Securities relate;

     (B) any accrued Deferred Interest on all of the outstanding Debentures of the series to which the Securities relate;

     (C) all payments on the outstanding Debentures of the series to which the Securities relate that have become due otherwise than by such acceleration and interest and Deferred Interest thereon at the
rate borne by such Debentures; and

     (D) all sums paid or advanced by the Debenture Trustee under the Indenture and the reasonable compensation, documented expenses, disbursements and advances of the Debenture Trustee and the
Institutional Trustee, their agents and counsel; and

     (ii) all Events of Default with respect to the outstanding Debentures of the series to which the Securities relate, other than the non-payment of the principal of or premium, if any, on such
Debentures that has become due solely by such acceleration, have been cured or waived as provided in Section 5.07 of the Indenture.

     (d) The Holders of a Majority in liquidation amount of the Capital Securities of any Series may, on behalf of the Holders of all of the Capital Securities of such Series, waive any past Default or
Event of Default relating to such Capital Securities, except a Default or Event of Default arising from the non-payment of principal of or premium, if any, or interest on the Debentures purchased by the Master Trust for, with respect to or on behalf
of such Series (unless such Default or Event of Default has been cured and a sum sufficient to pay all matured installments of interest, premium and principal due otherwise than by acceleration has been deposited with the Debenture Trustee) or a
Default or Event of Default relating to such Capital Securities in respect of a covenant or provision that under the Indenture cannot be modified or amended without the consent of the registered holder of each outstanding Debenture. No such
rescission shall affect any subsequent default or impair any right consequent thereon.

     (e) Upon receipt by the Institutional Trustee of written notice declaring such an acceleration, or rescission and annulment thereof, by Holders of the Capital Securities of any Series, a record date
shall be established for determining Holders of outstanding Capital Securities of such Series entitled to join in such notice, which record date shall be at the close of business on the day the Institutional Trustee receives such notice. Such
Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether or not such Holders remain Holders after such record date; provided, that, unless such declaration of
acceleration, or rescission and annulment, as the case may be, shall have become effective by virtue of the requisite percentage having joined in such notice prior to the day that is 90 days after such record date, such notice of declaration of
acceleration, or rescission

40

(9)Umpqua Holdings Corporation  

AU\4265172.3 

and annulment, as the case may be, shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent any such Holder, or a proxy of any such Holder, from giving, after expiration of such 90-day period, a new written notice of declaration of acceleration, or rescission and annulment thereof, as the case may be, that is identical to a written notice that has been canceled pursuant to the proviso to the preceding sentence, in which event a new record date shall be established pursuant to the provisions of this Section.

     (f) Except as otherwise provided in this Section, the Holders of a Majority in liquidation amount of the Capital Securities of any Series then outstanding may, on behalf of the Holders of all of the Capital Securities of such Series, waive any past Default or Event of Default relating to such Capital Securities and its consequences. Upon such waiver, any such Default or Event of Default shall cease to exist, and any Default or Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Declaration, but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon.

	ARTICLE VII

DISSOLUTION AND TERMINATION OF MASTER TRUST AND SERIES

     Section 7.1 Dissolution and Termination of Master Trust and each Series. (a) Subject to the last sentence in Section 2.14, the Master Trust and each Series shall dissolve on the first to occur of:

     (i) a Bankruptcy Event with respect to the Sponsor, the Master Trust or the Debenture Issuer;

     (ii) other than in connection with a merger, consolidation or similar transaction not prohibited by the Indenture or this Declaration, as the case may be, the filing of a certificate of dissolution or its equivalent with respect to the Sponsor or upon the revocation of the charter of the Sponsor and the expiration of 90 days after the date of revocation without a reinstatement thereof;

     (iii) the entry of a decree of judicial dissolution of the Sponsor, the Master Trust or the Debenture Issuer; or

     (iv) before the issuance of any Securities, with the consent of all of the Trustees and the Sponsor.

     In addition, if any of the following events occur with respect to a Series prior to any of the events specified in the immediately preceding paragraph, such Series shall dissolve on the first to occur of:

          (1)      a Bankruptcy Event with respect to such Series; 

 

          (2)      the distribution of all of the Debentures purchased by the Master Trust for, with respect to, or on behalf of such Series to the

41

(9)Umpqua Holdings Corporation  

AU\4265172.3 

Holders of the Securities comprising such Series, upon exercise of the right of the Holders of the Common Securities of such Series to dissolve such Series if provided in the applicable Series Supplement;

     (3) the entry of a decree of judicial dissolution of any Holder of Common Securities of such Series; or

     (4) when all of the Securities comprising such Series are then subject to redemption and the amounts necessary for the redemption thereof shall have been paid to the Holders thereof in accordance with
the terms of such Securities.

     (b) As soon as is practicable after the occurrence of an event referred to in Section 7.1(a), and after satisfaction of liabilities to creditors of the dissolved Master Trust or the dissolved Series,
as the case may be, as required by applicable law, including §3808 of the Statutory Trust Act, and subject to the terms set forth in this Declaration (including the Series Supplement for any Series), (i) in the case of dissolution and
completion of winding up of the Master Trust and each Series pursuant to Section 2.14 or Section 7.1(a)(i), (ii), (iii) or (iv), each Series shall thereby terminate and the Institutional Trustee shall terminate the Master Trust by filing a
certificate of cancellation with the Secretary of State of the State of Delaware, and (ii) in the case of dissolution and completion of winding up of any Series pursuant to Section 7.1(a)(1), (2), (3) or (4), the applicable Series shall thereby
terminate and an Administrator shall notify the Institutional Trustee of the termination of such Series.

     (c) The provisions of Section 2.9 and Article IX shall survive the termination of the Master Trust and each Series.

	
ARTICLE VIII

	
TRANSFER OF INTERESTS

     Section 8.1 General.  (a) Subject to Section 6.4 and Section 8.1(c), when a Holder of Capital Securities delivers to the Registrar in
accordance with this Declaration a request to register a transfer of such Holder’s Capital Securities or to exchange them for an equal aggregate liquidation amount of Capital Securities of the same Series represented by different Certificates,
the Registrar shall register the transfer or make the exchange when the requirements provided for herein for such transfer or exchange are met. To facilitate registrations of transfers and exchanges, the Master Trust shall execute and the
Institutional Trustee shall authenticate Capital Security Certificates of such Series at the Registrar’s request.

     (b) For so long as the Capital Securities of any Series remain outstanding, the Sponsor shall maintain 100% ownership of the Common Securities of such Series; provided, however, that any permitted
successor of the Debenture Issuer under the Indenture may succeed to the Sponsor’s ownership of all Common Securities.

     (c) Capital Securities may only be transferred, in whole or in part, in accordance with the terms and conditions set forth in this Declaration and in the terms of such Capital Securities. To the
fullest extent permitted by applicable law, any transfer or purported

42

(9)Umpqua Holdings Corporation  

AU\4265172.3 

transfer of any Capital Security not made in accordance with this Declaration shall be null and void and will be deemed to be of no legal effect whatsoever and any such purported transferee shall be deemed not to be the Holder of
such Capital Securities for any purpose, including, but not limited to, the receipt of Distributions on such Capital Securities, and such transferee shall be deemed to have no interest whatsoever in such Capital Securities.

     (d) The Registrar shall provide for the registration of Securities and transfers of Securities, which will be effected without charge but only upon payment (with such indemnity as the Registrar may
require) in respect of any tax or other governmental charges that may be imposed in relation to it. Upon surrender of a Certificate for registration of transfer of any Securities of a Series evidenced thereby, the Registrar shall cause one or more
new Certificates to be issued in the name of the designated transferee or transferees. Any Certificate issued upon any registration of transfer or exchange of a Security pursuant to the terms of this Declaration shall evidence the same Security as
the Security so transferred or exchanged, and, upon such registration of transfer or exchange, the Security represented by such new Certificate shall be entitled to the same benefits under this Declaration as the Security so transferred or
exchanged. Every Certificate surrendered for registration of transfer of the Security evidenced thereby shall be accompanied by a written instrument of transfer in form satisfactory to the Registrar duly executed by the Holder or such Holder's
attorney duly authorized in writing. Each Certificate surrendered for registration of transfer of the Security evidenced thereby shall be canceled by the Institutional Trustee pursuant to Section 6.7. A transferee of a Security shall be entitled to
the rights and subject to the obligations of a Holder hereunder upon the receipt by such transferee of a Certificate evidencing the transferred Security. By acceptance of such Certificate, each transferee shall be deemed to have agreed to be bound
by this Declaration.

     (e) Neither the Master Trust nor the Registrar shall be required (i) to issue Certificates representing Securities or register the transfer of or exchange any Securities during a period beginning at
the opening of business 15 days before the day of any selection of Securities for redemption and ending at the close of business on the earliest date on which the relevant notice of redemption is deemed to have been given to all Holders of the
Securities of the applicable Series to be redeemed, or (ii) to register the transfer or exchange of any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.

Section 8.2 Transfer Procedures and Restrictions.

     (a) Certificates evidencing Capital Securities shall bear the Restricted Securities Legend (as defined below), which shall not be removed unless there is delivered to the Master Trust such
satisfactory evidence, which may include an opinion of counsel reasonably acceptable to the Administrators and the Institutional Trustee, as may be reasonably required by the Master Trust or the Institutional Trustee, that neither the legend nor the
restrictions on transfer set forth therein are required to ensure that transfers thereof comply with the provisions of the Securities Act or that such Securities are not "restricted" within the meaning of Rule 144 under the Securities Act. Upon
provision of such satisfactory evidence, the Institutional Trustee, at the written direction of the Administrators, shall authenticate and deliver Capital Security Certificates that do not bear the Restricted Securities Legend (other than the legend
contemplated by Section 8.2(d)) .

43

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (b) When a Capital Security Certificate is presented to the Registrar (x) to register the transfer of the Capital Securities represented thereby, or (y) to exchange such Capital Securities for an equal number of Capital Securities of that Series represented by different Certificates, the Registrar shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Capital Security Certificate surrendered for registration of such transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Administrators, the Institutional Trustee and the Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing.

(c) Except as permitted by Section 8.2(a), each Capital Security Certificate shall bear a legend (the "Restricted Securities Legend") in substantially the following form:

     [THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR CAPITAL SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION, AND NO TRANSFER OF THIS CAPITAL SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN THE CIRCUMSTANCES SPECIFIED IN THE DECLARATION.

     UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE MASTER TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]1

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION

__________________________________________________

1 Only applicable to Global Capital Securities

44

(9)Umpqua Holdings Corporation  

AU\4265172.3 

HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (I) TWO YEARS (OR SUCH
SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(K) UNDER THE SECURITIES ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST DATE ON WHICH THE MASTER TRUST OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE SECURITIES
ACT) OF THE MASTER TRUST WAS THE HOLDER OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (II) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE DEBENTURE ISSUER
OR THE MASTER TRUST, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER,” AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) (1), (2), (3), (7) OR (8) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED
INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES PURSUANT
TO REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE DEBENTURE ISSUER'S AND THE MASTER TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH MAY BE
OBTAINED FROM THE DEBENTURE ISSUER OR THE MASTER TRUST. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

     THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE
BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS

45

(9)Umpqua Holdings Corporation  

AU\4265172.3 

INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, UNLESS
SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS
SECURITY OR SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING.  ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE
DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE, THAT EITHER (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE,
A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (II) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

     IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE AMENDED AND RESTATED
DECLARATION OF TRUST TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF.  ANY ATTEMPTED TRANSFER
OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.  ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR
ANY INTEREST OR PARTICIPATION HEREIN.

     (d) Capital Securities may only be transferred in minimum blocks of $100,000 aggregate liquidation amount (100 Capital Securities) and multiples of $1,000 in excess thereof. Any attempted
transfer of Capital Securities in a block having an aggregate liquidation amount of less than $100,000 shall be deemed to be void and of no legal effect whatsoever. Any such purported transferee shall be deemed not to be a Holder of such Capital
Securities for any

46

(9)Umpqua Holdings Corporation  

AU\4265172.3 

purpose, including, but not limited to, the receipt of Distributions on such Capital Securities, and such purported transferee shall be deemed to have no interest whatsoever in such Capital Securities.

     (e) Each party hereto understands and hereby agrees that the initial purchaser is intended solely to be an interim holder of the Capital Securities and is purchasing such securities to facilitate consummation of the transactions contemplated herein and in the documents ancillary hereto. Notwithstanding any provision in this Declaration to the contrary, the initial purchaser shall have the right upon notice (a "Transfer Notice") to the Institutional Trustee and the Sponsor to transfer title in and to the Capital Securities; provided the initial purchaser shall take reasonable steps to ensure that such transfer is exempt from registration under the Securities Act of 1933, as amended, and rules promulgated thereunder. Any Transfer Notice delivered to the Institutional Trustee and Sponsor pursuant to the preceding sentence shall indicate the aggregate liquidation amount of Capital Securities being transferred, the name and address of the transferee thereof (the "Transferee") and the date of such transfer. Notwithstanding any provision in this Declaration to the contrary, the transfer by the initial purchaser of title in and to the Capital Securities pursuant to a Transfer Notice shall not be subject to any requirement relating to opinions of counsel, certificates of transfer or any other opinion or certificate applicable to transfers hereunder and relating to Capital Securities.

     (f) Neither the Institutional Trustee nor the Registrar shall be responsible for ascertaining whether any transfer hereunder complies with the registration provisions of or any exemptions from the Securities Act, applicable state securities laws or the applicable laws of any other jurisdiction, ERISA, the Code or the Investment Company Act. 

     Section 8.3 Deemed Security Holders. The Master Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the Registrar may treat the Person in whose name any Security shall be registered on the Securities Register of the Master Trust as the sole Holder and owner of such Security for purposes of receiving Distributions and for all other purposes whatsoever and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such Security on the part of any other Person, whether or not the Master Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the Registrar shall have actual or other notice thereof.

	ARTICLE IX

LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

     Section 9.1  Liability. (a) Except as expressly set forth in this Declaration, any Guarantee and the terms of the Securities, the Sponsor shall not be: 

     (i) personally liable for the return of any portion of the capital contributions (or any return thereon) of the Holders of Securities, which shall be made solely from assets of the applicable Series; and

47

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (ii) required to pay to the Master Trust or to any Holder of Securities any deficit upon dissolution of the Master Trust or any Series or otherwise.

     (b) The Holder of the Common Securities of any Series shall be liable for all of the debts and obligations of the Master Trust associated with such Series (other than with respect to the Securities of such Series) to the extent not satisfied out of the Series’ assets.

     (c) Pursuant to §3803(a) of the Statutory Trust Act, the Holders of Securities shall be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of Delaware, except as otherwise specifically set forth herein.

     Section 9.2 Exculpation. (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Master Trust or any Series or any Covered Person for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Indemnified Person in good faith on behalf of the Master Trust or such Series and in a manner such Indemnified Person reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Declaration or by law, except that an Indemnified Person (other than an Administrator) shall be liable for any such loss, damage or claim incurred by reason of such Indemnified Person’s negligence, willful misconduct or bad faith with respect to such acts or omissions and except that an Administrator shall be liable for any such loss, damage or claim incurred by reason of such Administrator’s gross negligence, willful misconduct or bad faith with respect to such acts or omissions.

     (b) An Indemnified Person shall be fully protected in relying in good faith upon the records of the Master Trust (including those pertaining to any Series) and upon such information, opinions, reports or statements presented to the Master Trust by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence and, if selected by such Indemnified Person, has been selected by such Indemnified Person with reasonable care by or on behalf of the Master Trust, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses or any other facts pertinent to the existence and amount of the Trust Property of any Series from which Distributions to the Holders of Securities of such Series might properly be paid.

     (c) It is expressly understood and agreed by the parties hereto that insofar as any document, agreement or certificate is executed on behalf of the Master Trust by any Trustee (i) such document, agreement or certificate is executed and delivered by such Trustee, not in its individual capacity, but solely as Trustee under this Declaration in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements made on the part of the Master Trust is made and intended not as representations, warranties, covenants, undertakings and agreements by any Trustee in its individual capacity, but is made and intended for the purpose of binding only the Master Trust and (iii) under no circumstances shall any Trustee in its individual capacity be personally liable for the payment of any indebtedness or expenses of the Master Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Master Trust under this Declaration or any other document, agreement or certificate. This Section 9.2(c) shall not

48

(9)Umpqua Holdings Corporation  

AU\4265172.3 

limit the liability of a Trustee to a Holder for breach of any representations made or obligations undertaken by such Trustee specifically in its individual capacity under this Declaration.

     Section 9.3 Fiduciary Duty.  (a)  To the extent that, at law or in equity, an Indemnified Person has duties (including fiduciary duties) to
the Master Trust or to any other Covered Person, or to any Person that is a party to or is otherwise bound by this Declaration such Indemnified Person’s duties (other than the duties imposed on the Institutional Trustee under the Trust
Indenture Act) may be restricted or eliminated by provisions in this Declaration, except that this Declaration may not eliminate the implied contractual covenant of good faith and fair dealing. An Indemnified Person shall not be liable to the Master
Trust, to any other Covered Person, or to any other Person that is party to or is otherwise bound by this Declaration for breach of fiduciary duty for the Indemnified Person’s good faith reliance on the provisions of this Declaration. The
provisions of this Declaration, to the extent that they restrict or eliminate the duties and liabilities of an Indemnified Person otherwise existing at law or in equity (other than the duties imposed on the Institutional Trustee under the Trust
Indenture Act), are agreed by the parties hereto to replace such other duties and liabilities of the Indemnified Person, except that no provision of this Declaration (i) may eliminate the implied contractual covenant of good faith and fair dealing,
or (ii) may limit or eliminate liability for any act or omission that constitutes a bad faith violation of the implied contractual covenant of good faith and fair dealing.

     (b) Whenever in this Declaration an Indemnified Person is permitted or required to make a decision:

     (i) in its “discretion” or under a grant of similar authority, the Indemnified Person shall be entitled to consider such interests and factors as it desires, including its own interests, and
shall have no duty or obligation to give any consideration to any interest of or factors affecting the Master Trust or any other Person; or

     (ii) in its “good faith” or under another express standard, the Indemnified Person shall act under such express standard and shall not be subject to any other or different standard imposed
by this Declaration or by applicable law.

     Section 9.4 Indemnification. (a) (i) The Sponsor shall indemnify, to the fullest extent permitted by law, any Indemnified Person who was or
is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Master Trust for itself
and/or for, with respect to or on behalf of any Series) by reason of the fact that such Person is or was an Indemnified Person against expenses (including attorneys’ fees and expenses), judgments, fines and amounts paid in settlement actually
and reasonably incurred by such Person in connection with such action, suit or proceeding if such Person acted in good faith and in a manner such Person reasonably believed to be in or not opposed to the best interests of the Master Trust or such
Series, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its

49

(9)Umpqua Holdings Corporation  

AU\4265172.3 

equivalent, shall not, of itself, create a presumption that the Indemnified Person did not act in good faith and in a manner which such Person reasonably believed to be in or not opposed to the best interests of the Master Trust or such Series, and, with respect to any criminal action or proceeding, had reasonable cause to believe that such conduct was unlawful.

     (ii) The Sponsor shall indemnify, to the fullest extent permitted by law, any Indemnified Person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Master Trust for itself and/or for, with respect to or on behalf of any Series to procure a judgment in its favor by reason of the fact that such Person is or was an Indemnified Person against expenses (including attorneys’ fees and expenses) actually and reasonably incurred by such Person in connection with the defense or settlement of such action or suit if such Person acted in good faith and in a manner such Person reasonably believed to be in or not opposed to the best interests of the Master Trust or such Series and except that no such indemnification shall be made in respect of any claim, issue or matter as to which such Indemnified Person shall have been adjudged to be liable to the Master Trust or such Series unless and only to the extent that the Court of Chancery of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such Person is fairly and reasonably entitled to indemnity for such expenses which such Court of Chancery or such other court shall deem proper.

     (iii) To the extent that an Indemnified Person shall be successful on the merits or otherwise (including dismissal of an action without prejudice or the settlement of an action without admission of liability) in defense of any action, suit or proceeding referred to in paragraphs (i) and (ii) of this Section 9.4(a), or in defense of any claim, issue or matter therein, such Person shall be indemnified, to the fullest extent permitted by law, against expenses (including attorneys’ fees and expenses) actually and reasonably incurred by such Person in connection therewith.

     (iv) Any indemnification of an Administrator under paragraphs (i) and (ii) of this Section 9.4(a) (unless ordered by a court) shall be made by the Sponsor only as authorized in the specific case upon a determination that indemnification of the Indemnified Person is proper in the circumstances because such Person has met the applicable standard of conduct set forth in paragraphs (i) and (ii). Such determination shall be made (A) by the Administrators by a majority vote of a Quorum consisting of such Administrators who were not parties to such action, suit or proceeding, (B) if such a Quorum is not obtainable, or, even if obtainable, if a Quorum of disinterested Administrators so directs, by independent legal counsel in a written opinion, or (C) by the Common Security Holder of the applicable Series.

     (v) To the fullest extent permitted by law, expenses (including attorneys’ fees and expenses) incurred by an Indemnified Person in defending a

50

(9)Umpqua Holdings Corporation  

AU\4265172.3 

civil, criminal, administrative or investigative action, suit or proceeding referred to in paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the Sponsor in advance of the final disposition of such action, suit or
proceeding upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined that such Person is not entitled to be indemnified by the Sponsor as authorized in this Section 9.4(a) .
Notwithstanding the foregoing, no advance shall be made by the Sponsor if a determination is reasonably and promptly made (1) in the case of a Company Indemnified Person (A) by the Administrators by a majority vote of a Quorum of disinterested
Administrators, (B) if such a Quorum is not obtainable, or, even if obtainable, if a Quorum of disinterested Administrators so directs, by independent legal counsel in a written opinion or (C) by the Common Security Holder of the applicable Series,
that, based upon the facts known to the Administrators, counsel or the Common Security Holder at the time such determination is made, such Indemnified Person acted in bad faith or in a manner that such Person either believed to be opposed to or did
not believe to be in the best interests of the Master Trust or such Series, or, with respect to any criminal proceeding, that such Indemnified Person believed or had reasonable cause to believe such conduct was unlawful, or (2) in the case of a
Fiduciary Indemnified Person, by independent legal counsel in a written opinion that, based upon the facts known to the counsel at the time such determination is made, such Indemnified Person acted in bad faith or in a manner that such Indemnified
Person either believed to be opposed to or did not believe to be in the best interests of the Master Trust or such Series, or, with respect to any criminal proceeding, that such Indemnified Person believed or had reasonable cause to believe such
conduct was unlawful. In no event shall any advance be made (i) to a Company Indemnified Person in instances where the Administrators, independent legal counsel or the Common Security Holder reasonably determine that such Person deliberately
breached such Person’s duty to the Master Trust or the Common or Capital Security Holders of such Series or (ii) to a Fiduciary Indemnified Person in instances where independent legal counsel promptly and reasonably determines in a written
opinion that such Person deliberately breached such Person’s duty to the Master Trust or the Common or Capital Security Holders.

     (b) The Sponsor shall indemnify, to the fullest extent permitted by applicable law, each Indemnified Person from and against any and all loss, damage, liability, tax (other than taxes based on the
income of such Indemnified Person), penalty, expense or claim of any kind or nature whatsoever incurred by such Indemnified Person arising out of or in connection with or by reason of the creation, administration or termination of the Master Trust
or any Series, or any act or omission of such Indemnified Person in good faith on behalf of the Master Trust or any Series and in a manner such Indemnified Person reasonably believed to be within the scope of authority conferred on such Indemnified
Person by this Declaration, except that no Indemnified Person shall be entitled to be indemnified in respect of any loss, damage, liability, tax, penalty, expense or claim incurred by such Indemnified Person by reason of negligence, willful
misconduct or bad faith with respect to such acts or omissions.

51

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (c) The indemnification and advancement of expenses provided by, or granted pursuant to, the other paragraphs of this Section shall not be deemed exclusive of any other rights to which those seeking
indemnification and advancement of expenses may be entitled under any agreement, vote of stockholders or disinterested directors of the Sponsor or Capital Security Holders of the applicable Series or otherwise, both as to action in such
Person’s official capacity and as to action in another capacity while holding such office.  All rights to indemnification under this Section shall be deemed to be provided by a contract between the Sponsor and each Indemnified Person who serves
in such capacity at any time while this Section is in effect. Any repeal or modification of this Section shall not affect any rights or obligations then existing.

     (d) The Sponsor or the Master Trust (for itself and/or for, with respect to, and on behalf of one or more Series) may purchase and maintain insurance on behalf of any Person who is or was an
Indemnified Person against any liability asserted against such Person and incurred by such Person in any such capacity, or arising out of such Person’s status as such, whether or not the Sponsor would have the power to indemnify such Person
against such liability under the provisions of this Section.

     (e) For purposes of this Section, references to the Master Trust shall include, in addition to the resulting or surviving entity, any constituent entity (including any constituent of a constituent)
absorbed in a consolidation or merger, so that any Person who is or was a director, trustee, officer or employee of such constituent entity, or is or was serving at the request of such constituent entity as a director, trustee, officer, employee or
agent of another entity, shall stand in the same position under the provisions of this Section with respect to the resulting or surviving entity as such Person would have with respect to such constituent entity if its separate existence had
continued.

     (f) The indemnification and advancement of expenses provided by, or granted pursuant to, this Section shall, unless otherwise provided when authorized or ratified, continue as to a Person who has
ceased to be an Indemnified Person and shall inure to the benefit of the heirs, executors and administrators of such a Person.

     (g) The provisions of this Section shall survive the termination of this Declaration or the earlier resignation or removal of the Institutional Trustee. The obligations of the Sponsor under this
Section to compensate and indemnify the Trustees and to pay or reimburse the Trustees for expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that
of the Securities upon all property and funds held or collected by the Trustees as such, except funds held in trust for the benefit of the Holders of particular Capital Securities, provided, that the Sponsor is the Holder of the Common
Securities.

     Section 9.5 Outside Businesses.  Any Covered Person, the Sponsor, the Delaware Trustee and the Institutional Trustee (subject to Section
4.3(c)) may engage in or possess an interest in other business ventures of any nature or description, independently or with others, similar or dissimilar to the business of the Master Trust or any Series thereof, and none of the Master Trust, any
Series or the Holders of Securities shall have any rights by virtue of this Declaration in and to such independent ventures or the income or profits derived therefrom, and

52

(9)Umpqua Holdings Corporation  

AU\4265172.3 

the pursuit of any such venture, even if competitive with the business of the Master Trust or any Series thereof, shall not be deemed wrongful or improper. None of any Covered Person, the Sponsor, the Delaware Trustee or the Institutional Trustee shall be obligated to present any particular investment or other opportunity to the Master Trust or any Series thereof even if such opportunity is of a character that, if presented to such Master Trust or Series, could be taken by such Master Trust or Series, and any Covered Person, the Sponsor, the Delaware Trustee and the Institutional Trustee shall have the right to take for its own account (individually or as a partner or fiduciary) or to recommend to others any such particular investment or other opportunity. Any Covered Person, the Delaware Trustee and the Institutional Trustee may engage or be interested in any financial or other transaction with the Sponsor or any Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or act on any committee or body of holders of, securities or other obligations of the Sponsor or its Affiliates.

Section 9.6 Compensation; Fee. (a) The Sponsor agrees:

     (i) to pay to the Trustees from time to time such compensation for all services rendered by them hereunder as the parties shall agree in writing from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); and

     (ii) except as otherwise expressly provided herein, to reimburse each of the Trustees upon request for all reasonable, documented expenses, disbursements and advances incurred or made by such Person in accordance with any provision of this Declaration (including the reasonable compensation and the expenses and disbursements of such Person’s agents and counsel), except any such expense, disbursement or advance attributable to such Person’s negligence, willful misconduct or bad faith.

     (b) The provisions of this Section shall survive the dissolution of the Master Trust or any Series and the termination of this Declaration and the removal or resignation of any Trustee.

	ARTICLE X

ACCOUNTING

     Section 10.1 Fiscal Year. The fiscal year (the “Fiscal Year”) of the Master Trust shall be the calendar year, or such other year as is required by the Code.

     Section 10.2 Certain Accounting Matters.

     (a) At all times during the existence of the Master Trust, the Administrators shall keep, or cause to be kept, at the principal office of the Master Trust in the United States, as defined for purposes of Treasury Regulations §301.7701 -7, full books of account, records and supporting documents, which shall reflect in reasonable detail each transaction of the Master Trust and each Series. The books of account shall be maintained on the accrual method of accounting, in accordance with generally accepted accounting principles, consistently applied.

53

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (b) The Sponsor shall cause the Administrators to deliver, by hardcopy or electronic transmission, (i) to each Holder or Beneficial Owner of Securities each Report on Form 10-K and Form 10-Q, if any,
prepared by the Sponsor and filed with the Commission in accordance with the Exchange Act, within 10 Business Days after the filing thereof or (ii) if the Sponsor is (a) not then subject to Section 13 or 15(d) of the Exchange Act (a “Private
Entity”) or (b) exempt from reporting pursuant to Rule 12g3-2(b) thereunder, the information required by Rule 144A(d)(4) under the Securities Act. Notwithstanding the foregoing, the Sponsor shall (i) deliver within 90 days after the end of each
fiscal year, beginning with the fiscal year in which this Declaration becomes effective, by hardcopy or electronic transmission, to each Holder or Beneficial Owner of Capital Securities, unless otherwise provided pursuant to the preceding sentence,
(A) a copy of the Sponsor’s audited consolidated financial statements (including balance sheet and income statement) covering the related annual period and (B) the report of the independent accountants with respect to such financial statements
and (ii) deliver within 45 days after the end of each fiscal quarter, beginning with the fiscal quarter in which this Declaration becomes effective, by hardcopy or electronic transmission, to each Holder or Beneficial Owner of Capital Securities,
unless otherwise provided pursuant to the preceding sentence, a copy of the Sponsor’s unaudited consolidated interim financial statements (including balance sheet and income statement) covering the related quarterly period.  In addition to the
foregoing, the Sponsor shall deliver to each Holder or Beneficial Owner of Capital Securities of any Series within 90 days after the end of each Fiscal Year of the Master Trust, annual financial statements of such Series, including a balance sheet
of such Series as of the end of such Fiscal Year and the statements of income or loss for the Fiscal Year then ended, that are prepared at the principal office of such Series in the United States, as defined for purposes of Treasury Regulations
§301.7701 -7.

     (c) The Administrators shall cause to be duly prepared and delivered to each of the Holders of Securities Form 1099 or such other annual United States federal income tax information statement required
by the Code, containing such information with regard to the Securities held by each Holder as is required by the Code and the Treasury Regulations. Notwithstanding any right under the Code to deliver any such statement at a later date, the
Administrators shall endeavor to deliver all such statements within 30 days after the end of each Fiscal Year of the Master Trust.

     (d) The Administrators shall cause to be duly prepared in the United States, as defined for purposes of Treasury Regulations §301.7701 -7, and filed an annual United States federal income tax
return on a Form 1041 or such other form required by United States federal income tax law, and any other annual income tax returns required to be filed by the Administrators on behalf of the applicable Series with any state or local taxing
authority.

     (e) The Sponsor shall cause the Administrators to deliver regulatory reports to Securityholders promptly following their filing with the OTS, Federal Reserve or other regulatory authorities.

     Section 10.3 Banking.  The Master Trust shall maintain one or more bank accounts in the United States, as defined for purposes of Treasury
Regulations §301.7701 -7, for, with respect to, on behalf of, and for the sole benefit of each Series; provided, however, that all payments of funds in respect of the Trust Property of a Series held by the Institutional Trustee

54

(9)Umpqua Holdings Corporation  

AU\4265172.3 

shall be made directly to the Property Account to which the Holders of Securities of such Series have an interest and no other funds shall be deposited in such Property Account. The sole signatories for such accounts (including the Property Accounts) shall be designated by the Institutional Trustee.

     Section 10.4 Withholding. The Institutional Trustee or any Paying Agent and the Administrators shall comply with all withholding requirements under United States federal, state and local law. The Institutional Trustee or any Paying Agent shall request, and each Holder shall provide to the Institutional Trustee or any Paying Agent, such forms or certificates as are necessary to establish an exemption from withholding with respect to such Holder, and any representations and forms as shall reasonably be requested by the Institutional Trustee or any Paying Agent to assist it in determining the extent of, and in fulfilling, its withholding obligations. The Administrators shall file required forms with applicable jurisdictions and, unless an exemption from withholding is properly established by a Holder, shall remit amounts withheld with respect to such Holder to applicable jurisdictions. To the extent that the Institutional Trustee or any Paying Agent is required to withhold and pay over any amounts to any authority with respect to distributions or allocations to any Holder, the amount withheld shall be deemed to be a Distribution to such Holder in the amount of the withholding. In the event of any claimed overwithholding, Holders shall be limited to an action against the applicable jurisdiction. If the amount required to be withheld was not withheld from actual Distributions made, the Institutional Trustee or any Paying Agent may reduce subsequent Distributions by the amount of such withholding.

	ARTICLE XI

	AMENDMENTS AND MEETINGS

     Section 11.1 Amendments. (a) Except as otherwise provided in this Declaration or by any applicable terms of the Securities, this Declaration may only be amended by a written instrument approved and executed by

     (i) the Institutional Trustee:

     (ii) if the amendment affects the rights, powers, duties, obligations or immunities of the Delaware Trustee, the Delaware Trustee;

     (iii) if the amendment affects the rights, powers, duties, obligations or immunities of the Administrators, the Administrators; and

     (iv) the Holders of more than 50% of the aggregate liquidation amount of the Common Securities of all Series, then outstanding.

     (b) Notwithstanding any other provision of this Article XI, no amendment (including any Series Supplement) shall be made, and any such purported amendment shall be void and ineffective:

     (i)  unless the Institutional Trustee shall have first received

55

(9)Umpqua Holdings Corporation  

AU\4265172.3 

          (A) an Officers’ Certificate from each of the Master Trust and the Sponsor that such amendment is permitted by, and conforms to, the terms of this Declaration (including the terms of the Securities); and

          (B) except in the case of an amendment to this Declaration resulting exclusively from the execution of a Series Supplement, an opinion of counsel (who may be counsel to the Sponsor or the Master Trust) that such amendment is permitted by, and conforms to, the terms of this Declaration (including the terms of the Securities) and that all conditions precedent to the execution and delivery of such amendment have been satisfied; or

     (ii) if the result of such amendment would be to 

 

          (A) cause the Master Trust or any Series to cease to be classified for purposes of United States federal income taxation as a grantor trust;

          (B) reduce or otherwise adversely affect the powers of the Institutional Trustee in contravention of the Trust Indenture Act;

          (C) cause the Master Trust or any Series to be deemed to be an Investment Company required to be registered under the Investment Company Act;

          (D) cause the Debenture Issuer to be unable to treat an amount equal to the liquidation amount of the Capital Securities of any Series as “Tier 1 Capital” (or its then equivalent if the Debenture Issuer (or its successor) were subject to such capital requirement applied as if the Debenture Issuer (or its successor) were a bank holding company for purposes of the capital adequacy guidelines of the Federal Reserve (or any successor regulatory authority with jurisdiction over bank holding companies), or any capital adequacy guidelines as then in effect and applicable to the Debenture Issuer; or

          (E) contravene the requirements to preserve the limitations on liability set forth in §3804 of the Statutory Trust Act in any manner whatsoever.

     (c) Except as provided in Section 11.1 (d), (e) or (g), no amendment other than a Series Supplement in the form attached as Annex I hereof shall be made, and any such purported amendment shall be void and ineffective, unless the Holders of a Majority in liquidation amount of the Capital Securities of each Series affected thereby then outstanding, voting as separate classes, shall have consented to such amendment.

     (d) In addition to and notwithstanding any other provision in this Declaration, without the consent of each affected Holder of Securities, this Declaration may not be amended to (i) change the amount or timing of any Distribution on such Securities or any redemption or

56

(9)Umpqua Holdings Corporation  

AU\4265172.3 

liquidation provisions applicable to such Securities or otherwise adversely affect the amount of any Distribution required to be made in respect of such Securities as of a specified date or change the Trust Property to which such Securities are entitled or (ii) restrict the right of such Holder to institute suit for the enforcement of any Distributions or other amounts on or after their due date.

     (e) Sections 9.1(b) and 9.1(c) and this Section shall not be amended without the consent of all of the Holders of the Securities then outstanding.

     (f) The rights of the Holders of the Capital Securities and Common Securities, as applicable, under Article IV to increase or decrease the number of, and appoint and remove, Trustees shall not be amended without the consent of the Holders of a Majority in liquidation amount of the Capital Securities or Common Securities, as applicable, of each Series then outstanding, voting as separate classes.

     (g) This Declaration may be amended by the Institutional Trustee and the Sponsor without the consent of the Holders of any Capital Securities to:

     (i) cure any ambiguity;

     (ii) correct or supplement any provision in this Declaration that may be defective or inconsistent with any other provision of this Declaration;

     (iii) add to the covenants, restrictions or obligations of the Sponsor; or 

 

     (iv) modify, eliminate or add to any provision of this Declaration to such extent as may be necessary or desirable to ensure that the Master Trust and each Series will be classified for United States federal income tax purposes at all times as a grantor trust and will not be required to register as an Investment Company under the Investment Company Act (including without limitation to conform to any change in Rule 3a-5, Rule 3a-7 or any other applicable rule under the Investment Company Act or written change in interpretation or application thereof by any legislative body, court, government agency or regulatory authority) and that the limitations on liability set forth in §3804 of the Statutory Trust Act are preserved;

provided, however, that no such amendment contemplated in clause (i), (ii), (iii) or (iv) shall adversely affect the powers, preferences, rights or interests of Holders of the Capital Securities of any Series then outstanding.

     Section 11.2 Meetings of the Holders of the Securities; Action by Written Consent.

     (a) Meetings of the Holders of the Capital Securities or the Common Securities of any Series may be called at any time by the Administrators (or as provided in the terms of such Securities) to consider and act on any matter on which Holders of such Securities are entitled to act under the terms of this Declaration, the terms of such Securities or the rules of any stock exchange on which the Capital Securities of such Series are listed or admitted for

57

(9)Umpqua Holdings Corporation  

AU\4265172.3 

trading, if any.  The Administrators shall call a meeting of the Holders of such Securities if directed to do so by the Holders of not less than 10% in liquidation amount of such Securities. Such direction shall be given by
delivering to the Administrators one or more notices in a writing stating that the signing Holders of such Securities wish to call a meeting and indicating the general or specific purpose for which the meeting is to be called. Any Holders of
Securities calling a meeting shall specify in writing the Certificates held by the Holders of the Securities exercising the right to call a meeting and only those Securities represented by such Certificates shall be counted for purposes of
determining whether the required percentage set forth in the second sentence of this paragraph has been met.

     (b) Except to the extent otherwise provided in the terms of the Securities, the following provisions shall apply to meetings of Holders of the Securities of any Series:

     (i) Notice of any such meeting shall be given to all of the Holders of the Securities of such Series having a right to vote thereat at least 7 days and not more than 60 days before the date of such
meeting. Whenever a vote, consent or approval of the Holders of the Securities of such Series is permitted or required under this Declaration or the rules of any stock exchange on which the Capital Securities of such Series are listed or admitted
for trading, if any, such vote, consent or approval may be given at a meeting of the Holders of the Securities of such Series.  Any action that may be taken at a meeting of the Holders of the Securities of such Series may be taken without a meeting
if a consent in writing setting forth the action so taken is signed by the Holders of the Securities of such Series owning not less than the minimum liquidation amount of Securities that would be necessary to authorize or take such action at a
meeting at which all Holders of the Securities of such Series having a right to vote thereon were present and voting. Prompt notice of the taking of action without a meeting shall be given to the Holders of the Securities of such Series entitled to
vote who have not consented in writing. The Administrators may specify that any written ballot submitted to the Holders of the Securities of such Series for the purpose of taking any action without a meeting shall be returned to such Series within
the time specified by the Administrators.

     (ii) Each Holder of a Security may authorize any Person to act for it by proxy on all matters in which a Holder of such Securities is entitled to participate, including waiving notice of any meeting,
or voting or participating at a meeting. No proxy shall be valid after the expiration of 11 months from the date thereof unless otherwise provided in the proxy.  Every proxy shall be revocable at the pleasure of the Holder of the Securities
executing it.  Except as otherwise provided herein, all matters relating to the giving, voting or validity of proxies shall be governed by the General Corporation Law of the State of Delaware relating to proxies, and judicial interpretations
thereunder, as if the Master Trust and each Series were Delaware corporations and the Holders of the Securities were stockholders of a Delaware corporation.  Each meeting of Holders of the Securities shall be conducted by the Administrators or by
such other Person that the Administrators may designate.

58

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (iii) Unless the Statutory Trust Act, this Declaration, the terms of the Securities, the Trust Indenture Act or the listing rules of any stock exchange on which any Capital Securities are then listed or admitted for trading, if any, otherwise provides, the Administrators, in their sole discretion, shall establish all other provisions relating to meetings of Holders of Securities, including notice of the time, place or purpose of any meeting at which any matter is to be voted on by any Holders of the Securities, waiver of any such notice, action by consent without a meeting, the establishment of a record date, quorum requirements, voting in person or by proxy or any other matter with respect to the exercise of any such right to vote; provided, however, that each meeting shall be conducted in the United States (as that term is defined in Treasury Regulations §301.7701 -7).

	ARTICLE XII

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

     Section 12.1 Representations and Warranties of Institutional Trustee. The Trustee that acts as initial Institutional Trustee represents and warrants to the Master Trust and to the Sponsor at the date of this Declaration and the date of each Series Supplement, and each Successor Institutional Trustee represents and warrants to the Master Trust and the Sponsor at the time of the Successor Institutional Trustee’s acceptance of its appointment as Institutional Trustee, that:

     (a) the Institutional Trustee is a banking corporation or national association with trust powers, duly organized, validly existing and in good standing under the laws of the State of Delaware or the United States of America, respectively, with trust power and authority to execute and deliver, and to carry out and perform its obligations under the terms of, this Declaration;

     (b) the Institutional Trustee has a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000);

     (c) the Institutional Trustee is not an Affiliate of the Sponsor, nor does the Institutional Trustee offer or provide credit or credit enhancement to the Master Trust or any Series;

     (d) the execution, delivery and performance by the Institutional Trustee of this Declaration has been duly authorized by all necessary action on the part of the Institutional Trustee, and this Declaration has been duly executed and delivered by the Institutional Trustee, and under Delaware law (excluding any securities laws) constitutes a legal, valid and binding obligation of the Institutional Trustee, enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency and other similar laws affecting creditors’ rights generally and to general principles of equity and the discretion of the court (regardless of whether considered in a proceeding in equity or at law);

59

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (e) the execution, delivery and performance of this Declaration by the Institutional Trustee does not conflict with or constitute a breach of the charter or by-laws of the Institutional Trustee;
and

     (f) no consent, approval or authorization of, or registration with or notice to, any state or federal banking authority governing the trust powers of the Institutional Trustee is required for the
execution, delivery or performance by the Institutional Trustee of this Declaration.

     Section 12.2 Representations and Warranties of Delaware Trustee. The Trustee that acts as initial Delaware Trustee represents and warrants to
the Master Trust and to the Sponsor at the date of this Declaration and the date of each Series Supplement, and each Successor Delaware Trustee represents and warrants to the Master Trust and the Sponsor at the time of the Successor Delaware
Trustee’s acceptance of its appointment as Delaware Trustee that:

     (a) if it is not a natural person, the Delaware Trustee is a banking corporation or national association with trust powers, duly organized, validly existing and in good standing under the laws of the
State of Delaware or the United States of America;

     (b) if it is not a natural person, the execution, delivery and performance by the Delaware Trustee of this Declaration has been duly authorized by all necessary corporate action on the part of the
Delaware Trustee, and this Declaration has been duly executed and delivered by the Delaware Trustee, and under Delaware law (excluding any securities laws) constitutes a legal, valid and binding obligation of the Delaware Trustee, enforceable
against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency and other similar laws affecting creditors’ rights generally and to general principles of equity and the discretion of the court
(regardless of whether considered in a proceeding in equity or at law);

     (c) if it is not a natural person, the execution, delivery and performance of this Declaration by the Delaware Trustee does not conflict with or constitute a breach of the articles of association or
by-laws of the Delaware Trustee;

     (d) it has trust power and authority to execute and deliver, and to carry out and perform its obligations under the terms of, this Declaration;

     (e) no consent, approval or authorization of, or registration with or notice to, any state or federal banking authority governing the trust powers of the Delaware Trustee is required for the
execution, delivery or performance by the Delaware Trustee of this Declaration; and

     (f) the Delaware Trustee is a natural person who is a resident of the State of Delaware or, if not a natural person, it is an entity which has its principal place of business in the State of Delaware
and, in either case, a Person that satisfies for the Master Trust the requirements of §3807 of the Statutory Trust Act.

60

(9)Umpqua Holdings Corporation  

AU\4265172.3 

	
ARTICLE XIII

MISCELLANEOUS

     Section 13.1 Notices.  All notices provided for in this Declaration shall be in writing, duly signed by the party giving such notice, and
shall be delivered, telecopied (which telecopy shall be followed by notice delivered or mailed by first class mail) or mailed by first class mail, as follows:

     (a) if given to the Master Trust or any Series, in care of the Administrators at the Master Trust’s mailing address set forth below (or such other address as the Master Trust may give notice of
to the Holders of the Securities): 

	 	
Umpqua Master Trust I

c/o Umpqua Holdings Corporation

One SW Columbia Street, Suite 1200

Portland, Oregon 97258

Attention: Ron Farnsworth

Telecopy: (503) 727-4233

Telephone: (503) 727-4108

     (b) if given to the Delaware Trustee, at the mailing address set forth below (or such other address as the Delaware Trustee may give notice of to the Holders of the Securities):

	 	
LaSalle National Trust Delaware

1201 North Orange Street, Suite 1000

Wilmington, Delaware 19801

Attn: Robert W. Eaddy

Telecopy: 302-427-1414

Telephone: 302-427-1401

     (c) if given to the Institutional Trustee, at the Institutional Trustee’s mailing address set forth below (or such other address as the Institutional Trustee may give notice of to the Holders of
the Securities): 

	 	
LaSalle Bank National Association

135 S. LaSalle Street, Suite 1511

Chicago, Illinois 60603

Attention: CDO Trust Services Group

Umpqua Master Trust I

Telecopy: 312-904-0524

Telephone: 312-904-0283

     (d) if given to the Holder of any Common Securities, at the mailing address of the Sponsor set forth below (or such other address as the Holder of any Common Securities may give notice of to the
Master Trust):

61

(9)Umpqua Holdings Corporation  

AU\4265172.3 

	 	Umpqua Holdings Corporation

One SW Columbia Street, Suite 1200

Portland, Oregon 97258

Attention: Ron Farnsworth

Telecopy: (503) 727-4233

Telephone: (503) 727-4108

     (e) if given to any other Holder, at the address set forth on the books and records of the Master Trust. All such notices shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first class mail, postage prepaid, except that if a notice or other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the date of such refusal or inability to deliver.

     Section 13.2 Governing Law. This Declaration and the rights and obligations of the parties hereunder shall be governed by and interpreted in accordance with the law of the State of Delaware and all rights, obligations and remedies shall be governed by such laws without regard to the principles of conflict of laws of the State of Delaware or any other jurisdiction that would call for the application of the law of any jurisdiction other than the State of Delaware.

     Section 13.3 Submission to Jurisdiction.

     (a) Each of the parties hereto agrees that any suit, action or proceeding arising out of or based upon this Declaration, or the transactions contemplated hereby, may be instituted in any of the courts of the State of New York and the United States District Courts, in each case located in the Borough of Manhattan, City and State of New York, and further agrees to submit to the jurisdiction of any state or Federal court in Wilmington, Delaware and any competent court in the place of its corporate domicile in respect of actions brought against it as a defendant. In addition, each such party irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of such suit, action or proceeding brought in any such court and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum and irrevocably waives any right to which it may be entitled on account of its place of corporate domicile. Each such party hereby irrevocably waives any and all right to trial by jury in any legal proceeding arising out of or relating to this Declaration or the transactions contemplated hereby. Each such party agrees that final judgment in any proceedings brought in such a court shall be conclusive and binding upon it and may be enforced in any court to the jurisdiction of which it is subject by a suit upon such judgment.

     (b) Each of the Sponsor, the Trustees, and the Administrators irrevocably consents, and the Holder of the Common Securities of each Series irrevocably consents and (upon acceptance thereof) will be deemed to have irrevocably consented, to the service of process on it in any such suit, action or proceeding by the mailing thereof by registered or certified mail, postage prepaid, to it at its address given in or pursuant to Section 13.1 hereof.

62

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     (c) To the extent permitted by law, nothing herein contained shall preclude any party from effecting service of process in any lawful manner or from bringing any suit, action or proceeding in respect
of this Declaration in any other state, country or place.

     Section 13.4 Intention of the Parties. It is the intention of the parties hereto that the Master Trust and each Series be classified for
United States federal income tax purposes as a grantor trust and that the limitations on liability set forth in §3804 of the Statutory Trust Act be applicable to each Series. The provisions of this Declaration shall be interpreted to further
this intention of the parties.

     Section 13.5 Headings. Headings contained in this Declaration are inserted for convenience of reference only and do not affect the
interpretation of this Declaration or any provision hereof.

     Section 13.6 Successors and Assigns. Whenever in this Declaration any of the parties hereto is named or referred to, the successors and
assigns of such party shall be deemed to be included, and all covenants and agreements in this Declaration by the Sponsor and the Trustees shall bind and inure to the benefit of their respective successors and assigns, whether or not so
expressed.

     Section 13.7 Partial Enforceability. If any provision of this Declaration, or the application of such provision to any Person or
circumstance, shall be held invalid, the remainder of this Declaration, or the application of such provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby.

     Section 13.8 Counterparts.  This Declaration may contain more than one counterpart of the signature page and this Declaration may be executed
by the affixing of the signature of each of the Trustees and Administrators to any of such counterpart signature pages. All of such counterpart signature pages shall be read as though one, and they shall have the same force and effect as though all
of the signers had signed a single signature page.

63

(9)Umpqua Holdings Corporation  

AU\4265172.3 

     IN WITNESS WHEREOF, the undersigned have caused this Declaration to be duly executed as of the day and year first above written.

 

		LASALLE NATIONAL TRUST DELAWARE,

as Delaware Trustee
		
 

By:_______________________________

     Name:__________________________

     Title:  ___________________________

		
		LASALLE BANK NATIONAL ASSOCIATION,

as Institutional Trustee
		
 By:_______________________________

     Name:__________________________

     Title:  ___________________________

 

		
		UMPQUA HOLDINGS CORPORATION, 

		as Sponsor
		
 By:_______________________________

     Name:__________________________

     Title:  ___________________________

		
		___________________________________

		Name: Ronald L. Farnsworth

as Administrator
		

____________________________________

Name: Neal T. McLaughlin

as Administrator

(9)Umpqua Holdings Corporation  

AU\4265172.3 

 

	ANNEX I

SERIES SUPPLEMENT RELATING TO THE TERMS OF 

CAPITAL SECURITIES AND COMMON SECURITIES 

OF SERIES _____

     Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust of Umpqua Master Trust I (the “Master Trust”), dated as of [CLOSING DATE] (as amended from time to time, the “Declaration”), the designation, rights, privileges, restrictions, preferences and other terms and provisions of the Capital Securities and the Common Securities of Series ____ (the “Series”) of the Master Trust (collectively, the “Securities”) are set out below (each capitalized term used but not defined herein has the meaning set forth in the Declaration):

     1. Designation and Number.

     (a) Capital Securities. [# OF CAPITAL SECURITIES] Capital Securities of the Series (the “Capital Securities”) shall have an aggregate liquidation amount of [CAPITAL DOLLAR AMOUNT] Dollars ($[CAPITAL $]) and a liquidation amount with respect to the assets of the Series of $1,000 per Capital Security. The Capital Security Certificates evidencing the Capital Securities shall be substantially in the form of Exhibit A-1 to the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice or to conform to the rules of any stock exchange on which the Capital Securities are listed, if any.

     (b) Common Securities. [# OF COMMON SHARES] Common Securities of the Series (the “Common Securities”) will be evidenced by Common Security Certificates substantially in the form of Exhibit A-2 to the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice. In the absence of an Event of Default relating to the Securities, the Common Securities will have an aggregate liquidation amount with respect to the assets of the Series of [COMMON DOLLAR AMOUNT] Dollars ($[COMMON $]) and a liquidation amount with respect to the assets of the Series of $1,000 per Common Security.

     2. Distributions

     (c) Distributions on each Security will be payable at a [variable per annum rate of interest, reset quarterly, equal to] [per annum rate (the “Coupon Rate”) equal to (i) with respect to any Distribution Period (as defined herein) prior to the Distribution Period commencing on the Distribution Payment Date (as defined herein) on [FIRST RESET], [FIXED RATE]% and (ii) with respect to any Distribution Period commencing on or after the Distribution Payment Date on [FIRST RESET],] [LIBOR] [OTHER INDEX], as determined on the LIBOR Determination Date for such Distribution Period, plus [INTEREST RATE]% (the “Coupon Rate”); provided, however, that the Coupon Rate for any Distribution Period [commencing on or after the Distribution Payment Date on [FIRST RESET],] may not exceed the Interest Rate (as defined in the Indenture) for the related Interest Period (as defined in the Indenture)]. Distributions in arrears for more than one Distribution Period will bear interest thereon, compounded quarterly, at the applicable Coupon Rate for each Distribution Period

A-I-1

(9)Umpqua Holdings Corporation  

AU\4265172.3 

thereafter (to the extent permitted by applicable law). The term “Distributions,” as used herein, includes cash Distributions, any such compounded Distributions and any Additional Amounts payable on the Debentures of the
series to which the Securities relate unless otherwise stated. A Distribution is payable only to the extent that payments are made in respect of the Trust Property of the Series in which Holders of the Securities have an interest that is held by the
Institutional Trustee and to the extent the Institutional Trustee has funds therefrom in the Property Account of the Series legally available therefor.  The amount of Distributions payable in respect of the Securities will be computed [(i) with
respect to any Distribution Period prior to the Distribution Period commencing on the Distribution Payment Date on [FIRST RESET], on the basis of a 360-day year consisting of twelve 30-day months and (ii) with respect to any Distribution Period
commencing on or after the Distribution Payment Date on [FIRST RESET],] on the basis of a 360-day year and the actual number of days elapsed in such Distribution Period.

     The term “Distribution Period,” as used herein, means (i) in the case of the first Distribution Period, the period from, and including, the date of original issuance of the Securities to,
but excluding, the initial Distribution Payment Date and (ii) thereafter, from, and including, the first day following the end of the preceding Distribution Period to, but excluding, the applicable Distribution Payment Date or, in the case of the
last Distribution Period, the related date of redemption.

     (d) LIBOR shall be determined by the Calculation Agent for each Distribution Period [commencing on or after the Distribution Payment Date on [FIRST RESET],] in accordance with the following
provisions:

     (1) On the second LIBOR Business Day (provided, that on such day commercial banks are open for business (including dealings in foreign currency deposits) in London (a “LIBOR Banking Day”),
and otherwise the next preceding LIBOR Business Day that is also a LIBOR Banking Day) prior to the [commencement of] [Distribution Payment Date that commences] such Distribution Period (or, with respect to the first Distribution Period, on [INITIAL
SET DATE])] (each such day, a “LIBOR Determination Date”), LIBOR shall equal the rate, as obtained by the Calculation Agent, for three-month U.S. Dollar deposits in Europe, which appears on Reuters Screen LIBOR 01 Page (as defined in the
International Swaps and Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange Definitions) or such other page as may replace such page, as of 11:00 a.m. (London time) on such LIBOR Determination Date, as reported by Bloomberg
Financial Markets Commodities News or any successor service (“Reuters Screen”). “LIBOR Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banking institutions in The City of New York or
Chicago, Illinois are authorized or obligated by law or executive order to be closed.  If such rate is superseded on Reuters Screen by a corrected rate before 12:00 noon (London time) on such LIBOR Determination Date, the corrected rate as so
substituted will be LIBOR for such LIBOR Determination Date.

A-I-2

(9)Umpqua Holdings Corporation  

AU\4265172.3  

     (2) If, on such LIBOR Determination Date, such rate does not appear on Reuters Screen, the Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference Banks (as
defined below) to leading banks in the London interbank market for three-month U.S. Dollar deposits in Europe (in an amount determined by the Calculation Agent) by reference to requests for quotations as of approximately 11:00 a.m. (London time) on
such LIBOR Determination Date made by the Calculation Agent to the Reference Banks. If, on such LIBOR Determination Date, at least two of the Reference Banks provide such quotations, LIBOR shall equal the arithmetic mean of such quotations. If, on
such LIBOR Determination Date, only one or none of the Reference Banks provide such a quotation, LIBOR shall be deemed to be the arithmetic mean of the offered quotations that at least two leading banks in The City of New York (as selected by the
Calculation Agent) are quoting on such LIBOR Determination Date for three-month U.S. Dollar deposits in Europe at approximately 11:00 a.m. (London time) (in an amount determined by the Calculation Agent). As used herein, “Reference Banks”
means four major banks in the London interbank market selected by the Calculation Agent.

     (3) If the Calculation Agent is required but is unable to determine a rate in accordance with at least one of the procedures provided above, LIBOR for such Distribution Period shall be LIBOR in effect
for the immediately preceding Distribution Period.

     (e) All percentages resulting from any calculations on the Securities will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a
percentage point rounded upward (e.g., 9.876545% being rounded to 9.87655%), and all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent (with one-half cent being rounded upward).

     (f) As soon as practicable following each LIBOR Determination Date, but in no event later than the 5th business day following such LIBOR Determination Date, the Calculation Agent shall notify, in
writing, the Sponsor and the Paying Agent of the applicable Coupon Rate that applies to the related Distribution Period. The Calculation Agent shall, upon the request of a Holder of any Securities, inform such Holder of the Coupon Rate that applies
to the related Distribution Period. All calculations made by the Calculation Agent in the absence of manifest error shall be conclusive for all purposes and binding on the Sponsor and the Holders of the Securities. Any error in a calculation of the
Coupon Rate by the Calculation Agent may be corrected at any time by the delivery of notice of such corrected Coupon Rate as provided above. The Paying Agent shall be entitled to rely on information received from the Calculation Agent or the Sponsor
as to the applicable Coupon Rate. The Sponsor shall, from time to time, provide any necessary information to the Paying Agent relating to any original issue discount and interest on the Securities that is included in any payment and reportable for
taxable income calculation purposes.

A-I-3

(9)Umpqua Holdings Corporation  

AU\4265172.3  

     (g) Distributions on the Securities will be cumulative, will accrue from the date of original issuance, and will be payable, subject to extension of Distribution Periods as described herein, quarterly
in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on [FIRST ACTUAL PAYMENT DATE] (each, a “Distribution Payment Date”), and on any earlier date of redemption, as applicable. The Debenture Issuer has the
right under the Indenture to defer payments of interest on the Debentures of the series to which the Securities relate by extending the interest payment period for up to 20 consecutive quarterly periods (each such extended interest payment period,
together with all previous and future consecutive extensions thereof, is referred to herein as an “Extension Period”) at any time and from time to time on such Debentures, subject to the conditions described below and in the Indenture. No
Extension Period may end on a date other than a Distribution Payment Date or extend beyond the Maturity Date, any Optional Redemption Date or the Special Redemption Date, as the case may be (each such term as defined herein).  During any Extension
Period, interest will continue to accrue on the Debentures of the series to which the Securities relate, and interest on such accrued interest (such accrued interest and interest thereon referred to herein as “Deferred Interest”) will
accrue, at an annual rate equal to the Coupon Rate applicable during such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable were it not for the Extension Period, to the extent permitted by applicable
law. At the end of any Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures of the series to which the Securities relate; provided, however, that during any Extension Period, the Debenture
Issuer may not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Debenture Issuer’s capital stock, (ii) make any payment of principal or premium or
interest on or repay, repurchase or redeem any debt securities of the Debenture Issuer that rank in all respects pari passu with or junior in interest to such Debentures or (iii) make any payment under any guarantees of the Debenture Issuer that
rank in all respects pari passu with or junior in interest to the Guarantee (other than (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Debenture Issuer (A) in connection with any employment contract, benefit
plan or other similar arrangement with or for the benefit of one or more employees, officers, directors or consultants, (B) in connection with a dividend reinvestment or stockholder stock purchase plan or (C) in connection with the issuance of
capital stock of the Debenture Issuer (or securities convertible into or exercisable for such capital stock), as consideration in an acquisition transaction entered into prior to the applicable Extension Period, (b) as a result of any exchange or
conversion of any class or series of the Debenture Issuer’s capital stock (or any capital stock of a subsidiary of the Debenture Issuer) for any class or series of the Debenture Issuer’s capital stock or of any class or series of the
Debenture Issuer’s indebtedness for any class or series of the Debenture Issuer’s capital stock, (c) the purchase of fractional interests in shares of the Debenture Issuer’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any stockholder’s rights plan, or the issuance of rights, stock or other property under any stockholder’s
rights plan, or the redemption or repurchase of rights pursuant thereto, or (e) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other
rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior in interest to such stock). Prior to the termination of any Extension Period, the Debenture Issuer may further extend such Extension Period,
provided, that no Extension

A-I-4 
	

(9)Umpqua Holdings Corporation  

AU\4265172.3  

Period (including all previous and further consecutive extensions that are part of such Extension Period) shall exceed 20 consecutive quarterly periods. Upon the termination of any Extension Period and upon the payment of all
Deferred Interest, the Debenture Issuer may commence a new Extension Period, subject to the requirements herein and in the Indenture. No interest or Deferred Interest (except any Additional Amounts that may be due and payable) shall be due and
payable during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of interest that would otherwise have been due and payable during such Extension Period until such installment is
paid.

     As a consequence of any Extension Period, Distributions will be deferred. Notwithstanding any such deferral, Distributions will continue to accrue on the Securities, and Distributions on such accrued
Distributions will accrue, at the Coupon Rate applicable during such Extension Period, compounded quarterly, to the extent permitted by applicable law.  If Distributions are deferred, the Distributions due shall be paid on the date that such
Extension Period terminates to Holders of the Securities as they appear on the books and records of the Master Trust on the regular record date immediately preceding the Distribution Payment Date on which such Extension Period terminates to the
extent that the Series has funds legally available for the payment of such Distributions in the Property Account of the Series.

     The Master Trust’s funds available for Distributions to the Holders of the Securities will be limited to payments received from or in respect of the Trust Property of the Series in which Holders
of the Securities have an interest. The payment of Distributions out of moneys held by the Master Trust for such Series is guaranteed by the Guarantor pursuant to the Guarantee.

     (h) Distributions on the Securities on any Distribution Payment Date will be payable to the Holders thereof as they appear on the books and records of the Registrar on the relevant regular record
dates. The relevant “regular record dates” shall be 15 days before the relevant Distribution Payment Dates.  Distributions payable on any Securities that are not punctually paid on any Distribution Payment Date will cease to be payable to
the Person in whose name such Securities are registered on the original relevant regular record date, and such defaulted Distributions will instead be payable to the Person in whose name such Securities are registered on the regular record date
preceding the Distribution Payment Date on which the related Extension Period terminates or, in the absence of an Extension Period, a special record date therefor selected by the Administrators.

     (i) In the event that there is any money or other property held by or for the Series that is not accounted for hereunder, such property shall be distributed Pro Rata (as defined herein) among the
Holders of the Securities.

     (j) If any Distribution Payment Date [on or prior to the Distribution Payment Date on [FIRST RESET],] falls on a day that is not a Business Day, then Distributions payable on such date will be paid on
the next succeeding Business Day, and no additional Distributions will accrue in respect of such payment on such next Business Day. If any Distribution Payment Date [after the Distribution Payment Date on [FIRST RESET],] other than any date of
redemption falls on a day that is not a Business Day, then Distributions payable will be paid on,

A-I-5 

9)Umpqua Holdings Corporation  

AU\4265172.3  

and such Distribution Payment Date will be moved to, the next succeeding Business Day, and additional Distributions will accrue for each day that such payment is delayed as a result thereof.

     3. Liquidation Distribution Upon Dissolution. In the event of the voluntary or involuntary liquidation, dissolution, winding-up or
termination of the Master Trust or the Series (each, a “Liquidation”), the Holders of the Securities will be entitled to receive out of the assets of the Series legally available for distribution to Holders of the Securities, after
satisfaction of liabilities to creditors of the Series (to the extent not satisfied by the Sponsor), an amount in cash equal to the aggregate of the liquidation amount of $1,000 per Security plus unpaid Distributions accrued thereon to the date
of payment (collectively, the “Liquidation Distribution”), unless: (i) the Securities have been redeemed in full in accordance with the terms hereof; or (ii) the Debentures of the series to which the Securities relate in an aggregate
principal amount equal to the aggregate liquidation amount of such Securities and bearing accrued and unpaid interest in an amount equal to the accrued and unpaid Distributions on such Securities, after paying or making reasonable provision to pay
all claims against and obligations of the Series in accordance with §3808(g) of the Statutory Trust Act, shall be distributed on a Pro Rata basis to the Holders of the Securities in exchange for such Securities.

     The Sponsor, as the Holder of all of the Common Securities, has the right at any time, upon receipt by it and the Institutional Trustee for the benefit of the Series of (i) an opinion of nationally
recognized tax counsel that Holders will not recognize any gain or loss for United States Federal income tax purposes as a result of the distribution of Debentures of the series to which the Securities relate, to dissolve the Series (including,
without limitation, upon the occurrence of a Tax Event, an Investment Company Event or a Capital Treatment Event, each as defined herein) and (ii) prior approval from the Federal Reserve or the OTS, as applicable, (if then required under applicable
capital guidelines or policies of the Federal Reserve or the OTS, as applicable) and, after satisfaction of liabilities to creditors of the Series, cause the Debentures of the series to which the Securities relate to be distributed to the Holders of
the Securities on a Pro Rata basis in accordance with the aggregate liquidation amount thereof.

     Notwithstanding the foregoing, if a Liquidation occurs, the Series shall be liquidated by the Institutional Trustee of the Series as expeditiously as such Trustee determines to be practical by
distributing, after satisfaction of liabilities to creditors of the Series (to the extent not satisfied by the Sponsor) as provided by applicable law, to the Holders of the Securities, the Debentures of the series to which the Securities relate on a
Pro Rata basis, unless such distribution is determined by the Institutional Trustee not to be practical, in which event such Holders will be entitled to receive on a Pro Rata basis, out of the assets of the Series legally available for distribution
to the Holders of the Securities, after satisfaction of liabilities to creditors of the Series (to the extent not satisfied by the Sponsor), an amount in cash equal to the Liquidation Distribution; provided, however, that a Liquidation of the Series
pursuant to clause (2) of Section 7.1(a) of the Declaration shall occur if the Institutional Trustee determines that such Liquidation is practical by distributing, after satisfaction of liabilities to creditors of the Series (to the extent not
satisfied by the Sponsor), to the Holders of the Securities on a Pro Rata basis, the Debentures of the series to which the Securities relate, and such distribution occurs.

     If, upon any Liquidation, the Liquidation Distribution can be paid only in part because the Series has insufficient assets available to pay in full the aggregate Liquidation

A-I-6

9)Umpqua Holdings Corporation  

AU\4265172.3  

Distribution, then the amounts payable directly by the Series on the Securities shall be paid to the Holders of the Securities on a Pro Rata basis, except that if an Event of Default relating to the Securities has occurred and is continuing, then the Capital Securities shall have a preference over the Common Securities with regard to such amounts.

     Upon any Liquidation involving a distribution of the Debentures of the series to which the Securities relate, if at the time of such Liquidation, the Capital Securities were rated by at least one nationally-recognized statistical rating organization, the Debenture Issuer will use its reasonable best efforts to obtain from at least one such or other rating organization a rating for such Debentures.

     After the date for any distribution of the Debentures of the series to which the Securities relate upon any Liquidation, (i) the Securities of the Series will be deemed to be no longer outstanding, (ii) any Certificates representing the Capital Securities will be deemed to represent undivided beneficial interests in such of the Debentures of the series to which the Securities relate as have an aggregate principal amount equal to the aggregate liquidation amount of such Capital Securities and bearing accrued and unpaid interest equal to accrued and unpaid Distributions on such Capital Securities until such Certificates are presented to the Debenture Issuer or its agent for transfer or reissuance (and until such Certificates are so surrendered, no payments shall be made to Holders of Securities in respect of any payments due and payable under the Debentures of the series to which the Securities relate) and (iii) all rights of Holders of Securities shall cease, except the right of such Holders to receive Debentures of the series to which the Securities relate upon surrender of Certificates representing such Securities.

4. Redemption and Distribution.

     (k) The Debentures of the series to which the Securities relate will mature on [MATURITY DATE] (the “Maturity Date”) at an amount in cash equal to 100% of the principal amount thereof plus unpaid interest accrued thereon to such date (the “Maturity Redemption Price”). The Debentures of the series to which the Securities relate may be redeemed by the Debenture Issuer, at its option, in whole or in part, on any Distribution Payment Date on or after [OPTIONAL REDEMPTION DATE] (each, an “Optional Redemption Date”), at the Optional Redemption Price, upon not less than 30 nor more than 60 days’ prior written notice to holders of such Debentures. In addition, upon the occurrence and continuation of a Tax Event, an Investment Company Event or a Capital Treatment Event, such Debentures may be redeemed by the Debenture Issuer, at its option, in whole or in part, at any time within 90 days following the occurrence of such Tax Event, Investment Company Event or Capital Treatment Event, as the case may be (the “Special Redemption Date”), at the Special Redemption Price, upon not less than 30 nor more than 60 days’ prior written notice to holders of such Debentures so long as such Tax Event, Investment Company Event or Capital Treatment Event, as the case may be, is continuing. In each case, the right of the Debenture Issuer to redeem such Debentures prior to maturity is subject to the Debenture Issuer and the Master Trust having received prior approval from the Federal Reserve or the OTS, if then required under applicable capital guidelines or policies thereof.

     “Tax Event” means the receipt by the Debenture Issuer and the Master Trust of an opinion of counsel experienced in such matters to the effect that, as a result of any amendment to

A-I-7

9)Umpqua Holdings Corporation  

AU\4265172.3  

or change (including any announced prospective change) in the laws or any regulations thereunder of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official
administrative pronouncement (including any private letter ruling, technical advice memorandum, regulatory procedure, notice or announcement) (an “Administrative Action”) or judicial decision interpreting or applying such laws or
regulations, regardless of whether such Administrative Action or judicial decision is issued to or in connection with a proceeding involving the Debenture Issuer, the Master Trust or any Series and whether or not subject to review or appeal, which
amendment, clarification, change, Administrative Action or decision is enacted, promulgated or announced, in each case on or after the date of original issuance of the Debentures of the series to which the Securities relate, there is more than an
insubstantial risk that: (i) the Master Trust or the Series is, or will be within 90 days of the date of such opinion, subject to United States federal income tax with respect to income received or accrued on such Debentures; (ii) if the Debenture
Issuer is organized and existing under the laws of the United States or any state thereof or the District of Columbia, interest payable by the Debenture Issuer on such Debentures is not, or within 90 days of the date of such opinion, will not be,
deductible by the Debenture Issuer, in whole or in part, for United States federal income tax purposes; or (iii) the Master Trust or the Series is, or will be within 90 days of the date of such opinion, subject to or otherwise required to pay, or
required to withhold from Distributions, more than a de minimis amount of other taxes (including withholding taxes), duties, assessments or other governmental charges.

     “Investment Company Event” means the receipt by the Debenture Issuer and the Master Trust of an opinion of counsel experienced in such matters to the effect that, as a result of a change in
law or regulation or written change in interpretation or application of law or regulation by any legislative body, court, governmental agency or regulatory authority, there is more than an insubstantial risk that the Master Trust or the Series is
or, within 90 days of the date of such opinion will be, considered an Investment Company that is required to be registered under the Investment Company Act, which change becomes effective on or after the date of the original issuance of the
Debentures of the series to which the Securities relate.

     “Capital Treatment Event” means, if the Debenture Issuer is organized and existing under the laws of the United States or any state thereof or the District of Columbia, the receipt by the
Debenture Issuer and the Master Trust of an opinion of counsel experienced in such matters to the effect that, as a result of (a) any amendment to, or change in, the laws, rules or regulations of the United States or any political subdivision
thereof or therein, or any rules, guidelines or policies of an applicable regulatory authority for the Debenture Issuer or (b) any official or administrative pronouncement or action or decision interpreting or applying such laws, rules or
regulations, which amendment or change is effective or which pronouncement, action or decision is announced on or after the date of original issuance of the Debentures of the series to which the Securities relate, there is more than an insubstantial
risk that the Debenture Issuer will not, within 90 days of the date of such opinion, be entitled to treat Capital Securities as “Tier 1 Capital” (or its then equivalent) if the Debenture Issuer (or its successor) were subject to such
capital requirement, applied as if the Debenture Issuer (or its successor) were a bank holding company for purposes of the capital adequacy guidelines of the Federal Reserve (or any successor regulatory authority with jurisdiction over bank holding
companies), or any capital adequacy guidelines as then in effect and applicable to the Debenture Issuer; provided, however, that the inability of the Debenture Issuer to treat all or any portion of the aggregate Liquidation

A-I-8 

9)Umpqua Holdings Corporation  

AU\4265172.3  

Amount of the Capital Securities as “Tier 1 Capital” shall not constitute the basis for a Capital Treatment Event if such inability results from the Debenture Issuer having preferred stock, minority interests in
consolidated subsidiaries and any other class of security or interest which the Federal Reserve (or any successor regulatory authority with jurisdiction over bank holding companies) may now or hereafter accord ‘Tier 1 Capital” treatment
that, in the aggregate, exceed the amount which may now or hereafter qualify for treatment as “Tier 1 Capital” under applicable capital adequacy guidelines of the Federal Reserve (or any successor regulatory authority with jurisdiction
over bank holding companies) applied as if the Debenture Issuer (or its successor) were a bank holding company for purposes of the capital adequacy guidelines of the Federal Reserve (or any successor regulatory authority with jurisdiction over bank
holding companies); provided, further, that the distribution of such Debentures in connection with the Liquidation of the Series by the Debenture Issuer shall not in and of itself constitute a Capital Treatment Event unless such Liquidation shall
have occurred in connection with a Tax Event or an Investment Company Event.

     “Optional Redemption Price” means an amount in cash equal to 100% of the principal amount of the Debentures of the series to which the Securities relate being redeemed plus unpaid interest
accrued on such Debentures to the related Optional Redemption Date.

     “Special Event” means any of a Tax Event, an Investment Company Event or a Capital Treatment Event.

     “Special Redemption Price” means, with respect to the redemption of the Debentures of the series to which the Securities relate following a Special Event, an amount in cash equal to 103.525%
of the principal amount of such Debentures to be redeemed prior to [SPECIAL REDEMPTION DATE] and thereafter equal to the percentage of the principal amount of such Debentures that is specified below for the Special Redemption Date plus, in each
case, unpaid interest accrued thereon to the Special Redemption Date:

	
Special Redemption During the 12-Month 
		
 		
 
		
 
	
	
Period Beginning [MONTH DAY] 
		
 		
Percentage of Principal Amount
		
 
	
	
 
	
	
20__ 
		
 		
103.140
		
% 
	
	
20__ 
		
 		
102.355
		
% 
	
	
20__ 
		
 		
101.570
		
% 
	
	
20__ 
		
 		
100.785
		
% 
	
	
20__ and thereafter 
		
 		
100.000
		
% 
	

     (l) Upon any repayment of the Debentures of the series to which the Securities relate at maturity or in whole or in part upon redemption (other than following the distribution of such Debentures to
the Holders of the Securities), the proceeds from such repayment shall concurrently be applied to redeem Pro Rata, at a redemption price corresponding to the applicable Maturity Redemption Price, Optional Redemption Price or Special Redemption Price
for such Debentures of the series to which the Securities relate, as the case may be, Securities having an aggregate liquidation amount equal to the aggregate principal amount of such Debentures so repaid; provided, however, that Holders of such
Securities shall be given not

A-I-9

9)Umpqua Holdings Corporation  

AU\4265172.3  

less than 30 nor more than 60 days’ prior written notice of such redemption (other than a redemption resulting from the maturity of such Debentures on the Maturity Date).

     (m) If fewer than all the outstanding Securities are to be so redeemed, the Common Securities and the Capital Securities will be redeemed Pro Rata and the Capital Securities to be redeemed will be as described in Section 4(e)(ii) below.

     (n) The Master Trust may not redeem fewer than all the outstanding Capital Securities unless all accrued and unpaid Distributions have been paid on all the outstanding Capital Securities for all Distribution Periods terminating on or before the related date of redemption.

     (o) Redemption or Distribution Procedures. 

 

     (i) Written notice of any redemption of, or written notice of distribution of the Debentures of the series to which the Securities relate in exchange for, the Securities (a “Redemption/Distribution Notice”) will be given by the Master Trust by mail to each Holder of Securities to be redeemed or exchanged not fewer than 30 nor more than 60 days before the date of redemption or exchange thereof which, in the case of a redemption, will be the date of maturity or redemption of such Debentures. For purposes of the calculation of the date of redemption or exchange and the dates on which notices are given pursuant to this Section 4(e)(i), a Redemption/Distribution Notice shall be deemed to be given on the day such notice is first mailed by first-class mail, postage prepaid, to Holders of such Securities. Each Redemption/Distribution Notice shall be addressed to the Holders of such Securities at the address of each such Holder appearing on the books and records of the Registrar. No defect in the Redemption/Distribution Notice or in the mailing thereof with respect to any Holder shall affect the validity of the redemption or exchange proceedings with respect to any other Holder.

     (ii) In the event that fewer than all the outstanding Capital Securities are to be redeemed, the Capital Securities to be redeemed shall be redeemed Pro Rata from each Holder.

     (iii) If the Securities are to be redeemed and the Master Trust gives a Redemption/Distribution Notice, which notice may only be issued if the Debentures of the series to which the Securities relate are redeemed or repaid as set out in this Section (which notice will be irrevocable), then, provided, that the Institutional Trustee has a sufficient amount of cash in connection with the related redemption or maturity of such Debentures, the Institutional Trustee will, with respect to Book-Entry Capital Securities, irrevocably deposit with the Depositary for such Book-Entry Capital Securities, the price payable upon redemption of the Securities, and will give such Depositary irrevocable instructions and authority to pay the price payable upon redemption of such Book-Entry Capital Securities to Beneficial Owners of the Capital Securities. With respect to Capital Securities that are not Book-Entry Capital Securities, the Institutional Trustee will pay the

A-I-10

9)Umpqua Holdings Corporation  

AU\4265172.3  

price payable upon redemption of such Securities to the Holders of such Securities by check mailed to the address of each such Holder appearing on the books and records of the Master Trust on the related date of redemption.  If a
Redemption/Distribution Notice shall have been given and funds deposited as required, then immediately prior to the close of business on the date of such deposit, Distributions will cease to accrue on the Securities so subject to redemption and all
rights of Holders of such Securities so subject to redemption will cease, except the right of the Holders of such Securities to receive the applicable price specified in Section 4(a), but without interest on such price. If any date of redemption of
the Securities falls on a day that is not a Business Day, then payment of all amounts payable on such date will be made on the next succeeding Business Day, and no additional Distributions will accrue in respect of such payment on such next
succeeding Business Day.  If any amount payable upon redemption of the Securities is improperly withheld or refused and not paid either by the Master Trust (for, with respect to, or on behalf of the Series), the Debenture Issuer or the Sponsor as
guarantor pursuant to the Guarantee, Distributions on such Securities will continue to accrue at the Coupon Rate applicable from the date of redemption to the actual date of payment, in which case the actual payment date will be considered the date
of redemption for purposes of calculating the price payable upon redemption of the Securities. In the event of any redemption of the Capital Securities issued by the Master Trust in part, the Master Trust shall not be required to (i) issue, register
the transfer of or exchange any Security during a period beginning at the opening of business 15 days before any selection for redemption of the Capital Securities and ending at the close of business on the earliest date on which the relevant notice
of redemption is deemed to have been given to all Holders of the Capital Securities to be so redeemed or (ii) register the transfer of or exchange any Capital Securities so selected for redemption, in whole or in part, except for the unredeemed
portion of any Capital Securities being redeemed in part.

     (iv) Redemption/Distribution Notices shall be sent by the Administrators on behalf of the Master Trust (for, with respect to, or on behalf of the Series) (A) in respect of the Capital Securities, to
the Holders thereof, and (B) in respect of the Common Securities, to the Holder thereof.

     (v) Subject to the foregoing and applicable law (including, without limitation, United States federal securities laws), and provided, that the acquiror is not the Holder of the Common Securities or
the obligor under the Indenture, the Sponsor or any of its subsidiaries may at any time and from time to time purchase outstanding Capital Securities by tender, in the open market or by private agreement.

     5. Voting Rights - Capital Securities. (a) Except as provided under Sections 5(b) and 7 and as otherwise required by law and the Declaration,
the Holders of the Capital Securities will have no voting rights. The Administrators are required to call a meeting of the Holders of the Capital Securities if directed to do so by Holders of not less than 10% in liquidation amount of the Capital
Securities.

A-I-11

9)Umpqua Holdings Corporation  

AU\4265172.3  

     (b) Subject to the requirements of obtaining a tax opinion by the Institutional Trustee in certain circumstances set forth in the penultimate sentence of this paragraph, the Holders of a Majority in
liquidation amount of the Capital Securities then outstanding, voting as a single class, have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Institutional Trustee, or exercising any trust
or power conferred upon the Institutional Trustee under the Declaration, in respect of the Capital Securities, including (i) directing the time, method, place of conducting any proceeding for any remedy available to the Debenture Trustee, or
exercising any trust or power conferred on the Debenture Trustee with respect to the Debentures of the series to which the Securities relate, (ii) waiving any past default and its consequences that are waivable under the Indenture, (iii) exercising
any right to rescind or annul an acceleration of the principal of all the Debentures of the series to which the Securities relate or (iv) consenting on behalf of all the Holders of the Capital Securities to any amendment, modification or termination
of the Indenture or the Debentures of the series to which the Securities relate where such consent shall be required; provided, however, that, where a consent or action under the Indenture would require the consent or act of the registered holders
of greater than a simple majority in principal amount of Debentures of the series to which the Securities relate (a “Super Majority”) affected thereby, the Institutional Trustee may only give such consent or take such action at the written
direction of the Holders of not less than the proportion in liquidation amount of the Capital Securities outstanding which the relevant Super Majority represents of the aggregate principal amount of the outstanding Debentures of the series to which
the Securities relate. If the Institutional Trustee fails to enforce its rights under such Debentures after the Holders of a Majority or Super Majority, as the case may be, in liquidation amount of such Capital Securities then outstanding have so
directed the Institutional Trustee, to the fullest extent permitted by law, a Holder of the Capital Securities may institute a legal proceeding directly against the Debenture Issuer to enforce the Institutional Trustee’s rights under such
Debentures without first instituting any legal proceeding against the Institutional Trustee or any other person or entity or may require the Institutional Trustee to take such action as would permit any such Holder to institute any such proceeding.
Notwithstanding the foregoing, if an Event of Default relating to the Securities has occurred and is continuing and such event is attributable to the failure of the Debenture Issuer to pay interest or premium, if any, on or principal of such
Debentures on the date such interest, premium, if any, or principal is payable (or in the case of redemption, the date of redemption), then a Holder of the Capital Securities may directly institute a proceeding for enforcement of payment, on or
after the respective due dates specified in such Debentures, to such Holder directly of the principal of or premium, if any, or interest on such Debentures having an aggregate principal amount equal to the aggregate liquidation amount of the Capital
Securities of such Holder.  The Institutional Trustee shall notify all Holders of the Capital Securities of any default actually known to the Institutional Trustee with respect to such Debentures unless (x) such default has been cured prior to the
giving of such notice or (y) the Institutional Trustee determines in good faith that the withholding of such notice is in the interest of the Holders of such Capital Securities, except where the default relates to a payment default. Such notice
shall state that such Indenture Event of Default also constitutes an Event of Default hereunder. Except with respect to directing the time, method and place of conducting a proceeding for a remedy, the Institutional Trustee shall not take any of the
actions described in clause (i), (ii), (iii) or (iv) above unless the Institutional Trustee has obtained, at the expense of the Sponsor, an opinion of tax counsel to the effect that, as a result of such action, neither the Master Trust nor the
Series will be classified as other than a

A-I-12

9)Umpqua Holdings Corporation  

AU\4265172.3  

grantor trust for United States federal income tax purposes. A waiver of an Indenture Event of Default relating to the Securities will constitute a waiver of the corresponding Event of Default hereunder.

     Any required approval or direction of Holders of the Capital Securities may be given at a separate meeting of Holders of the Capital Securities convened for such purpose, at a meeting of all of the
Holders of the Securities of the Series or pursuant to written consent. The Institutional Trustee will cause a notice of any meeting at which Holders of the Capital Securities are entitled to vote, or of any matter upon which action by written
consent of such Holders is to be taken, to be mailed to each Holder of the Capital Securities. Each such notice will include a statement setting forth the following information (i) the date of such meeting or the date by which such action is to be
taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or of such matter upon which written consent is sought and (iii) instructions for the delivery of proxies or consents.  No
vote or consent of the Holders of the Capital Securities will be required for the Master Trust to redeem and cancel Capital Securities or to distribute the Debentures of the series to which the Securities relate in accordance with the Declaration
and the terms of the Securities.

     Notwithstanding that Holders of the Capital Securities are entitled to vote or consent under any of the circumstances described above, any of the Capital Securities that are owned by the Sponsor or
any Affiliate of the Sponsor shall not entitle the Holder thereof to vote or consent and shall, for purposes of such vote or consent, be treated as if such Capital Securities were not outstanding.

     In no event will Holders of the Capital Securities have the right to vote to appoint, remove or replace the Administrators, which voting rights are vested exclusively in the Sponsor as the Holder of
all of the Common Securities of the Series.  Under certain circumstances as more fully described in the Declaration, Holders of Capital Securities have the right to vote to appoint, remove or replace the Institutional Trustee and the Delaware
Trustee.

     6. Voting Rights - Common Securities. (a) Except as provided under Sections 6(b), 6(c) and 7 and as otherwise required by law and the
Declaration, the Common Securities will have no voting rights.

     (b) The Holder of the Common Securities is entitled, in accordance with Article IV of the Declaration, to vote to appoint, remove or replace any Administrators.

     (c) Subject to Section 6.8 of the Declaration and only after each Event of Default (if any) with respect to the Capital Securities has been cured, waived or otherwise eliminated and subject to the
requirements of the penultimate sentence of this paragraph, the Holder of the Common Securities, voting as a single class, may direct the time, method, and place of conducting any proceeding for any remedy available to the Institutional Trustee, or
exercising any trust or power conferred upon the Institutional Trustee under the Declaration, in respect of the Common Securities, including (i) directing the time, method, place of conducting any proceeding for any remedy available to the Debenture
Trustee, or exercising any trust or power conferred on the Debenture Trustee with respect to the Debentures of the series to which the Securities relate, (ii) waiving any past default and its consequences that are waivable under

A-I-13

9)Umpqua Holdings Corporation  

AU\4265172.3  

the Indenture, or (iii) exercising any right to rescind or annul an acceleration of the principal of all the Debentures of the series to which the Securities relate. Notwithstanding this Section 6(c), the Institutional Trustee
shall not revoke any action previously authorized or approved by a vote or consent of the Holders of the Capital Securities. Other than with respect to directing the time, method and place of conducting any proceeding for any remedy available to the
Institutional Trustee or the Debenture Trustee as set forth above, the Institutional Trustee shall not take any action described in clause (i), (ii) or (iii) above, unless the Institutional Trustee has obtained, at the expense of the Sponsor, an
opinion of tax counsel to the effect that for the purposes of United States federal income tax neither the Master Trust nor the Series will be classified as other than a grantor trust on account of such action.  If the Institutional Trustee fails to
enforce its rights under the Declaration, to the fullest extent permitted by law, the Holder of the Common Securities may institute a legal proceeding directly against any Person to enforce the Institutional Trustee’s rights under the
Declaration, without first instituting a legal proceeding against the Institutional Trustee or any other Person.

     Any approval or direction of the Holder of the Common Securities may be given at a separate meeting of Holders of the Common Securities convened for such purpose, at a meeting of all of the Holders of
the Securities of the Series or pursuant to written consent. The Administrators will cause a notice of any meeting at which the Holder of the Common Securities is entitled to vote, or of any matter upon which action by written consent of such Holder
is to be taken, to be mailed to the Holder of the Common Securities. Each such notice will include a statement setting forth (i) the date of such meeting or the date by which such action is to be taken, (ii) a description of any resolution proposed
for adoption at such meeting on which such Holder is entitled to vote or of such matter upon which written consent is sought and (iii) instructions for the delivery of proxies or consents.

     No vote or consent of the Holder of the Common Securities will be required for the Master Trust to redeem and cancel Common Securities or to distribute the Debentures of the Series to which the
Securities relate in accordance with the Declaration and the terms of the Securities.

     7. Amendments to Declaration and Indenture. In addition to any requirements under Section 11.1 of the Declaration, if any proposed amendment
to the Declaration provides for, or the Trustees otherwise propose to effect, (i) any action that would adversely affect the powers, preferences or special rights of the Securities, whether by way of amendment to the Declaration or otherwise, or
(ii) the Liquidation of the Master Trust or the Series, other than as described in Section 7.1 of the Declaration, then the Holders of outstanding Securities, voting together as a single class, will be entitled to vote on such amendment or proposal
and such amendment or proposal shall not be effective except with the approval of the Holders of a Majority in liquidation amount of the outstanding Securities; provided, however, if any amendment or proposal referred to in clause (i) above would adversely affect only the Capital Securities or only the Common Securities, then only Holders of the affected Securities will be
entitled to vote on such amendment or proposal and such amendment or proposal shall not be effective except with the approval of the Holders of a Majority in liquidation amount of such Securities.

A-I-14

9)Umpqua Holdings Corporation  

AU\4265172.3  

     (p) In the event the consent of the Institutional Trustee, as the registered holder of the Debentures of the series to which the Securities relate, is required under the Indenture with respect to any
amendment, modification or termination of the Indenture or such Debentures, the Institutional Trustee shall request the written direction of the Holders of the Securities with respect to such amendment, modification or termination and shall vote
with respect to such amendment, modification, or termination as directed by a Majority in liquidation amount of the outstanding Securities, voting together as a single class; provided,
however, that where a consent under the Indenture would require a Super Majority, the Institutional Trustee may only give such consent at the written direction of the Holders of not less
than the proportion in liquidation amount of the outstanding Securities which the relevant Super Majority represents of the aggregate principal amount of such Debentures outstanding.

     (q) Notwithstanding the foregoing, no amendment or modification may be made to the Declaration or to the Securities if such amendment or modification would (i) cause the Master Trust or the Series to
be classified for purposes of United States federal income taxation as other than a grantor trust, (ii) reduce or otherwise adversely affect the powers of the Institutional Trustee, (iii) cause the Master Trust or the Series to be deemed an
Investment Company which is required to be registered under the Investment Company Act or (iv) contravene in any manner whatsoever the requirements to preserve the limitations on liability specified in §3804 of the Statutory Trust
Act.

     (r) Notwithstanding any provision of the Declaration, the right of any Holder of the Capital Securities to receive payment of Distributions and payments upon redemption, Liquidation or otherwise, on
or after their respective due dates, or to institute a suit for the enforcement of any such payment on or after such respective dates, in each case with respect to the Trust Property of the Series, shall not be impaired or affected without the
consent of such Holder. For the protection and enforcement of the foregoing provision, each and every Holder of the Capital Securities shall be entitled to such relief as can be given either at law or equity.

     8. Pro Rata. A reference in these terms of the Securities to any payment, distribution or treatment as being “Pro Rata” shall mean
pro rata to each Holder of the Securities according to the aggregate liquidation amount of the Securities held by such Holder in relation to the aggregate liquidation amount of all Securities outstanding unless, in relation to a payment, an Event of
Default relating to the Securities has occurred and is continuing, in which case any funds in the Property Account of the Series legally available to make such payment shall be paid first to each Holder of the Capital Securities Pro Rata according
to the aggregate liquidation amount of the Capital Securities held by such Holder relative to the aggregate liquidation amount of all Capital Securities outstanding, and only after satisfaction of all amounts owed to the Holders of the Capital
Securities, to each Holder of the Common Securities Pro Rata according to the aggregate liquidation amount of the Common Securities held by such Holder relative to the aggregate liquidation amount of all Common Securities outstanding.

     9. Ranking. The Capital Securities rank pari passu with, and payment thereon shall be made Pro Rata with, the Common Securities except that,
where an Event of Default relating to the Securities has occurred and is continuing, the rights of Holders of the Common Securities to receive payment of Distributions and payments upon Liquidation, redemption and otherwise, in each case with
respect to the Trust Property of the Series, are

A-I-15

9)Umpqua Holdings Corporation  

AU\4265172.3  

subordinated to the rights of the Holders of the Capital Securities with the result that no payment of any Distribution on, or any amount payable upon the redemption of, any Common Security, and no payment to the Holder of any
Common Security on account of the Liquidation of the Master Trust or the Series, shall be made unless payment in full in cash of (i) all accrued and unpaid Distributions on all outstanding Capital Securities for all Distribution Periods terminating
on or prior thereto, (ii) all amounts payable upon Capital Securities then subject to redemption and (iii) all amounts payable upon Capital Securities in the event of the Liquidation of the Master Trust or the Series, in each case, shall have been
made or provided for, and all funds immediately available to the Institutional Trustee shall first be applied to the payment in full in cash of the amounts specified in clause (i), (ii) and (iii) above that are then due and payable.

     10. Acceptance of Guarantee and Indenture. Each Holder of the Capital Securities and the Common Securities, by the acceptance of such
Securities, agrees to the provisions of the Declaration, the Guarantee and the Indenture, including the subordination provisions therein.

     11. No Preemptive Rights. The Holders of the Securities shall have no, and the issuance of the Securities is not subject to, preemptive or
similar rights to subscribe for any additional securities.

     12. Limitations on Liability. The Master Trust shall have separate and distinct records for the Series, and the assets of the Series shall be
held and accounted for separately from those of any other series of the Master Trust or those of any other entity.  Holders of the Securities shall only be entitled to the benefit of the Trust Property of the Series, and not the assets of the Master
Trust generally or any other series of the Master Trust, and the Trust Property of the Series shall be charged with the liabilities belonging to the Series as contemplated in Section 2.6(a)(i)(R) of the Declaration and such liabilities shall be
enforceable against the assets of the Series only, and not those of the Master Trust generally or any other series of the Master Trust, and none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with
respect to any other series of the Master Trust or, except as contemplated in Section 2.6(a)(i)(R) of the Declaration, the Master Trust generally, shall be enforceable against the assets of such Series, all in accordance with the full benefit of the
limitations on liability specified in §3804 of the Statutory Trust Act.

     13. Miscellaneous. These terms constitute a part of the Declaration.  The Sponsor will provide a copy of the Declaration, the Guarantee and
the Indenture to a Holder without charge on written request to the Sponsor at its principal place of business.

A-I-16

9)Umpqua Holdings Corporation  

AU\4265172.3  

     IN WITNESS WHEREOF, the undersigned has caused this Series ___ Series Supplement to be duly executed as of

this
______ day of ______________________, 20___.

Umpqua Master Trust I    

                                                                         
By:________________________________

                                                                         
Name:

                                                                         
Title: Administrator
 

A-I-17

9)Umpqua Holdings Corporation  

AU\4265172.3  

	EXHIBIT A-l

FORM OF CAPITAL SECURITY CERTIFICATE

	[FORM OF FACE OF SECURITY]

     [THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR CAPITAL SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION, AND NO TRANSFER OF THIS CAPITAL SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN THE CIRCUMSTANCES SPECIFIED IN THE DECLARATION.

     UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE MASTER TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]1

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (I) TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(K) UNDER THE SECURITIES ACT) AFTER THE LATER

________________________________

1 Only applicable to Global Capital Securities

A-1-1

9)Umpqua Holdings Corporation  

AU\4265172.3  

OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST DATE ON WHICH THE MASTER TRUST OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE SECURITIES ACT) OF THE MASTER TRUST WAS THE HOLDER OF THIS SECURITY OR SUCH INTEREST
OR PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (II) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE DEBENTURE ISSUER OR THE MASTER TRUST, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
(“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER,” AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) (1), (2), (3), (7) OR
(8) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE
IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE DEBENTURE ISSUER'S AND THE MASTER TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE MASTER TRUST. THE HOLDER OF THIS SECURITY
OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

     THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE
BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD
THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR

A-1-2

9)Umpqua Holdings Corporation  

AU\4265172.3  

PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING.  ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR THEREOF, AS THE CASE MAY
BE, THAT EITHER (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY
OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (II) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

     IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE AMENDED AND RESTATED
DECLARATION OF TRUST TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF.  ANY ATTEMPTED TRANSFER
OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.  ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR
ANY INTEREST OR PARTICIPATION HEREIN.

A-1-3

9)Umpqua Holdings Corporation  

AU\4265172.3  

	Certificate Number  	  	[  	  	     ]  	  	Number of Capital Securities [# OF CAPITAL  
	  	  	  	  	  	  	SECURITIES]  
	  
	  	  	  	  	CUSIP NO    _____________________________________
			

Certificate Evidencing Series _____ Capital Securities

	Of

	Umpqua Master Trust I

Series _____ Capital Securities

	(liquidation amount $1,000 per Capital Security)

     Umpqua Master Trust I, a statutory trust created under the laws of the State of Delaware (the “Master Trust”), hereby certifies that it has created a Series to which this Certificate pertains and that Cede & Co., as nominee on behalf of the Depository Trust Company (the “Holder”), is the registered owner of [# OF CAPITAL SECURITIES] Series ____ capital securities of the Master Trust representing preferred undivided beneficial interests in the assets of such Series (liquidation amount $1,000 per Capital Security) (the “Capital Securities”). Subject to the Declaration (as defined below), the Capital Securities are transferable on the books and records of the Master Trust, in person or by a duly authorized attorney, upon surrender of this Certificate duly endorsed and in proper form for transfer. The Capital Securities represented hereby are issued pursuant to, and the designation, rights, privileges, restrictions, preferences and other terms and provisions of the Capital Securities shall in all respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the Master Trust, dated as of [CLOSING DATE], among Ronald L. Farnsworth and Neal T. McLaughlin, as Administrators, LaSalle National Trust Delaware, as Delaware Trustee, LaSalle Bank National Association, as Institutional Trustee, Umpqua Holdings Corporation, as Sponsor, and the Holders from time to time of undivided beneficial interests in the assets of each series of the Master Trust, including the Series to which this Certificate pertains, including the designation of the terms of the Capital Securities and the Common Securities (collectively, the “Securities”) as set forth in the applicable Series Supplement, as the same may be amended from time to time (the “Declaration”). Capitalized terms used herein but not defined shall have the meaning given them in the Declaration. The Holder is entitled to the benefits of the Guarantee and the Indenture to the extent provided therein. The Sponsor will provide a copy of the Declaration, the Guarantee, and the Indenture to the Holder without charge upon written request to the Sponsor at its principal place of business.

     By acceptance of this Certificate, the Holder is bound by the Declaration and is entitled to the benefits thereunder.

     By acceptance of this Certificate, the Holder agrees to treat, for United States federal income tax purposes, the Debentures of the series to which the Securities relate as

A-1-4

9)Umpqua Holdings Corporation  

AU\4265172.3  

indebtedness and the Capital Securities as evidence of undivided beneficial ownership in such Debentures.

     The Master Trust shall have separate and distinct records for the Series, and the assets of the Series shall be held and accounted for separately from those of any other series of the Master Trust or
those of any other entity. Holders of the Securities shall only be entitled to the benefit of the Trust Property of the above-captioned Series, and not the assets of the Master Trust generally or any other series of the Master Trust, and the Trust
Property of the above-captioned Series shall be charged with the liabilities belonging to the above-captioned Series as contemplated in Section 2.6(a)(i)(R) of the Declaration and such liabilities shall be enforceable against the assets of the
above-captioned Series only, and not those of the Master Trust generally or any other series of the Master Trust, and none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to any other
series of the Master Trust or, except as contemplated in Section 2.6(a)(i)(R) of the Declaration, the Master Trust generally, shall be enforceable against the assets of the above-captioned Series, all in accordance with the full benefit of the
limitations on liability specified in §3804 of the Statutory Trust Act.

     This Certificate and the Capital Securities evidenced hereby are governed by, and shall be construed in accordance with, the laws of the State of Delaware, without regard to principles of conflict of
laws.

     This Certificate may contain more than one counterpart of the signature page and this Certificate may be executed and authenticated by the affixing of the signature of an Administrator on behalf of
the Master Trust, and the signature of the Institutional Trustee providing authentication, to any of such counterpart signature pages.  All of such counterpart signature pages shall be read as though one, and they shall have the same force and
effect as though the Master Trust had executed, and the Institutional Trustee had authenticated, a single signature page.

A-1-5

9)Umpqua Holdings Corporation  

AU\4265172.3  

IN WITNESS WHEREOF, the Master Trust has duly executed this Certificate.

Umpqua Master Trust I    

                                                                         
By:________________________________

                                                                         
Name:

                                                                         
Title: Administrator

                                                                         
Dated:____________________________

	
CERTIFICATE OF AUTHENTICATION

     This certificate represents Capital Securities of a series of the Master Trust referred to in the within-mentioned Declaration.

                                                                            

	                                                              
			LASALLE BANK NATIONAL ASSOCIATION,
		

		not in its individual capacity but solely 

		as Institutional Trustee
	 	By:
		________________________________________

      Authorized Officer
		Dated:_____________________________________

A-1-6

9)Umpqua Holdings Corporation  

AU\4265172.3  

	
[FORM OF REVERSE OF SECURITY]

     Distributions on each Capital Security will be payable at a [variable per annum rate of interest, reset quarterly, equal to] [per annum rate (the “Coupon Rate”) equal to (i) with respect to
any Distribution Period prior to the Distribution Period commencing on the Distribution Payment Date (as defined herein) on [FIRST RESET], [FIXED RATE]% and (ii) with respect to any Distribution Period commencing on or after the Distribution Payment
Date on [FIRST RESET],] LIBOR (as defined in the Declaration), [as determined on the LIBOR Determination Date for such Distribution Period,] plus [INTEREST RATE]% (the “Coupon Rate”); provided, however, that the Coupon Rate for any
Distribution Period [commencing on or after the Distribution Payment Date on [FIRST RESET]] may not exceed the Interest Rate (as defined in the Indenture) for the related Interest Period (as defined in the Indenture). Distributions in arrears for
more than one Distribution Period will bear interest thereon, compounded quarterly, at the applicable Coupon Rate for each Distribution Period thereafter (to the extent permitted by applicable law). The term “Distributions,” as used
herein, includes cash Distributions, any such compounded Distributions and any Additional Amounts payable on the Debentures of the series to which the Securities relate, unless otherwise stated. A Distribution is payable only to the extent that
payments are made in respect of the Trust Property to which the Holder of this Capital Security is entitled that is held by the Institutional Trustee and to the extent the Institutional Trustee has funds therefrom in the Property Account of the
Series legally available therefor.  The amount of Distributions payable for any Distribution Period [prior to [FIRST RESET],] will be computed [on the basis of a 360-day year consisting of twelve 30-day months and, thereafter,] on the basis of a
360-day year and the actual number of days elapsed in such Distribution Period.

     Except as otherwise described below, Distributions on the Capital Securities will be cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears on March 15,
June 15, September 15 and December 15 of each year, commencing on [FIRST ACTUAL PAYMENT DATE] (each, a “Distribution Payment Date”), and on any earlier date of redemption, subject, in each case, to the Business Day convention specified in
the Declaration. The Debenture Issuer has the right under the Indenture to defer payments of interest on the Debentures of the series to which the Securities relate by extending the interest payment period for up to 20 consecutive quarterly periods
(each such extended interest payment period, together with all previous and future consecutive extensions thereof, is referred to herein as an “Extension Period”) at any time and from time to time on the Debentures of the series to which
the Securities relate, subject to the conditions described below and in the Declaration and the Indenture. No Extension Period may end on a date other than a Distribution Payment Date or extend beyond the Maturity Date, any Optional Redemption Date
or the Special Redemption Date, as the case may be. During any Extension Period, interest will continue to accrue on the Debentures of the series to which the Securities relate, and interest on such accrued interest (such accrued interest and
interest thereon referred to herein as “Deferred Interest”) will accrue, at an annual rate equal to the Coupon Rate applicable during such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable
were it not for the Extension Period, to the extent permitted by applicable law. At the end of any Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures of the series to which the Securities
relate; provided, however, that prior to the termination of any Extension Period, the Debenture Issuer may further extend such Extension Period, provided,

A-1-7

9)Umpqua Holdings Corporation  

AU\4265172.3  

that no Extension Period (including all previous and further consecutive extensions that are part of such Extension Period) shall exceed 20 consecutive quarterly periods. Upon the termination of any Extension Period and upon the
payment of all Deferred Interest, the Debenture Issuer may commence a new Extension Period, subject to the requirements set forth herein and in the Declaration and the Indenture. No interest or Deferred Interest (except any Additional Amounts that
may be due and payable) shall be due and payable during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of interest that would otherwise have been due and payable during such Extension Period
until such installment is paid.

     As a consequence of any Extension Period, Distributions will be deferred.  If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates
to Holders of the Capital Securities as they appear on the books and records of the Master Trust (for, with respect to and on behalf of the above-captioned Series) on the regular record date immediately preceding the Distribution Payment Date on
which such Extension Period terminates to the extent that the above-captioned Series has funds legally available for the payment of such Distributions in the Property Account of the above-captioned Series.

     The Capital Securities shall be redeemable, and shall be entitled to the Liquidation Distribution, as provided in the Declaration.

A-1-8

9)Umpqua Holdings Corporation  

AU\4265172.3  

	ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers the Capital Securities evidenced by this Capital Security Certificate to:

___________________________________________

___________________________________________

___________________________________________

(Insert assignee’s social security or tax identification number)

___________________________________________

___________________________________________

___________________________________________

	(Insert address and zip code of assignee),

and irrevocably appoints _________________________________________________________ as agent to transfer the Capital Securities evidenced by this Capital Security Certificate on the books of the Master Trust. The agent may substitute another to act for it, him or her.

	 	Date: ________________________

Signature: _____________________

                                 (Sign exactly as your name appears on the other side of this Capital Security Certificate)

	 	Signature Guarantee:1__________________________

____________________________

1 Signature must be guaranteed by an “eligible guarantor institution” that is a bank, stockbroker, savings and loan association or credit union, meeting the requirements of the Security registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

A-1-9

9)Umpqua Holdings Corporation  

AU\4265172.3  

	
EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

     THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION.

     EXCEPT AS SET FORTH IN SECTION 8.1(b) OF THE DECLARATION (AS DEFINED BELOW), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED.

A-2-1

9)Umpqua Holdings Corporation  

AU\4265172.3  

	
Certificate Number 
		
 		
[ 
		
 		
] 
		
 		
Number of Common Securities [# OF 
	
	
 
		
 		
 
		
 		
 
		
 		
COMMON SHARES] 
	

Certificate Evidencing Series ____ Common Securities

	
of

	
Umpqua Master Trust I

     Umpqua Master Trust I, a statutory trust created under the laws of the State of Delaware (the “Master Trust”), hereby certifies that it has created a Series to which this Certificate
pertains and that Umpqua Holdings Corporation is the registered owner (the “Holder”) of [# OF COMMON SHARES] Series ____ common securities of the Master Trust representing common undivided beneficial interests in the assets of such Series
(liquidation amount $1,000 per Common Security) (the “Common Securities”).  The Common Securities represented hereby are issued pursuant to, and the designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities shall in all respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the Master Trust, dated as of [CLOSING DATE] among Ronald L. Farnsworth and Neal T. McLaughlin, as
Administrators, LaSalle National Trust Delaware, as Delaware Trustee, LaSalle Bank National Association, as Institutional Trustee, the Holder, as Sponsor, and the Holders from time to time of undivided beneficial interests in the assets of each
series of the Master Trust, including the Series to which this Certificate pertains, including the designation of the terms of the Common Securities and the Capital Securities of such Series (collectively, the “Securities”) as set forth in
the applicable Series Supplement, as the same may be amended from time to time (the “Declaration”). Capitalized terms used herein but not defined shall have the meaning given them in the Declaration. The Sponsor will provide a copy of the
Declaration and the Indenture to the Holder without charge upon written request to the Sponsor at its principal place of business.

     As set forth in the Declaration, when an Event of Default with respect to the Capital Securities of this Series has occurred and is continuing, the rights of the Holder of Common Securities to payment
in respect of Distributions and payments upon Liquidation, redemption or otherwise, in each case with respect to the Trust Property of this Series, are subordinated to the rights of payment of holders of the Capital Securities.

     By acceptance of this Certificate, the Holder is bound by the Declaration and is entitled to the benefits thereunder.

     By acceptance of this Certificate, the Holder agrees to treat, for United States federal income tax purposes, the Debentures of the series to which the Securities relate as indebtedness and the Common
Securities as evidence of undivided beneficial ownership in such Debentures.

     The Master Trust shall have separate and distinct records for the Series, and the assets of the Series shall be held and accounted for separately from those of any other series of the Master Trust or
those of any other entity. Holders of the Securities shall only be entitled to

A-2-2

9)Umpqua Holdings Corporation  

AU\4265172.3  

the benefit of the Trust Property of the above-captioned Series, and not the assets of the Master Trust generally or any other series of the Master Trust, and the Trust Property of the above-captioned Series shall be charged with
the liabilities belonging to the above-captioned Series as contemplated in Section 2.6(a)(i)(R) of the Declaration and such liabilities shall be enforceable against the assets of the above-captioned Series only, and not those of the Master Trust
generally or any other series of the Master Trust, and none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to any other series of the Master Trust or, except as contemplated in Section
2.6(a)(i)(R) of the Declaration, the Master Trust generally, shall be enforceable against the assets of the above-captioned Series, all in accordance with the full benefit of the limitations on liability specified in §3804 of the Statutory
Trust Act.

     This Certificate and the Common Securities evidenced hereby are governed by, and shall be construed in accordance with, the laws of the State of Delaware, without regard to principles of conflict of
laws.

A-2-3

9)Umpqua Holdings Corporation  

AU\4265172.3  

	                 IN WITNESS WHEREOF, the Master Trust has executed this Certificate this  
	day of  _________________________, 20___.  
	  
	  
	Umpqua Master Trust I 
	  
	  
	                                                 By:______________________________  
	
	                                                     Name:  
	                                                     Title: Administrator  

A-2-4

9)Umpqua Holdings Corporation  

AU\4265172.3  

	
[FORM OF REVERSE OF SECURITY]

     Distributions payable on each Common Security will be identical in amount to the Distributions payable on each Capital Security, which is at a [variable per annum rate of interest, reset quarterly,
equal to] [per annum rate (the “Coupon Rate”) equal to (i) with respect to any Distribution Period prior to the Distribution Period commencing on the Distribution Payment Date (as defined herein) on [FIRST RESET], [FIXED RATE]% and (ii)
with respect to any Distribution Period commencing on or after the Distribution Payment Date on [FIRST RESET], LIBOR (as defined in the Declaration), as determined on the LIBOR Determination Date for such Distribution Period,] plus [INTEREST RATE]%
(the “Coupon Rate”); provided, however, that the Coupon Rate for any Distribution Period [commencing on or after the Distribution Payment Date on [FIRST RESET]] may not exceed the Interest Rate (as defined in the Indenture) for the related
Interest Period (as defined in the Indenture).] Distributions in arrears for more than one Distribution Period will bear interest thereon, compounded quarterly, at the applicable Coupon Rate for each Distribution Period thereafter (to the extent
permitted by applicable law). The term “Distributions,” as used herein, includes cash Distributions, any such compounded Distributions and any Additional Amounts payable on the Debentures of the series to which the Securities relate,
unless otherwise stated.  A Distribution is payable only to the extent that payments are made in respect of the Trust Property to which the Holder of this Common Security is entitled that is held by the Institutional Trustee and to the extent the
Institutional Trustee has funds therefrom in the Property Account of the Series legally available therefor.  The amount of Distributions payable [for any Distribution Period prior to [FIRST RESET],] will be computed [on the basis of a 360-day year
consisting of twelve 30-day months, and thereafter,] on the basis of a 360-day year and the actual number of days elapsed in such Distribution Period.

     Except as otherwise described below, Distributions on the Common Securities will be cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears on March 15,
June 15, September 15 and December 15, commencing on [FIRST ACTUAL PAYMENT] (each, a “Distribution Payment Date”), and on any earlier date of redemption, subject, in each case, to the Business Day convention specified in the Declaration.
The Debenture Issuer has the right under the Indenture to defer payments of interest on the Debentures of the series to which the Securities relate by extending the interest payment period for up to 20 consecutive quarterly periods (each such
extended interest payment period, together with all previous and future consecutive extensions thereof, is referred to herein as an “Extension Period”) at any time and from time to time on the Debentures of the series to which the
Securities relate, subject to the conditions described below and in the Declaration and the Indenture. No Extension Period may end on a date other than a Distribution Payment Date or extend beyond the Maturity Date, any Optional Redemption Date or
the Special Redemption Date, as the case may be. During any Extension Period, interest will continue to accrue on the Debentures of the series to which the Securities relate, and interest on such accrued interest (such accrued interest and interest
thereon referred to herein as “Deferred Interest”) will accrue, at an annual rate equal to the Coupon Rate applicable during such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable were it
not for the Extension Period, to the extent permitted by applicable law. At the end of any Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures of the series to which the Securities relate;
provided, however, that prior to the termination of

A-2-5

9)Umpqua Holdings Corporation  

AU\4265172.3  

any Extension Period, the Debenture Issuer may further extend such Extension Period, provided, that no Extension Period (including all previous and further consecutive extensions that are part of such Extension Period) shall
exceed 20 consecutive quarterly periods. Upon the termination of any Extension Period and upon the payment of all Deferred Interest, the Debenture Issuer may commence a new Extension Period, subject to the requirements set forth herein and in the
Declaration and the Indenture. No interest or Deferred Interest (except any Additional Amounts that may be due and payable) shall be due and payable during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each
installment of interest that would otherwise have been due and payable during such Extension Period until such installment is paid.

     As a consequence of any Extension Period, Distributions will be deferred.  If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates
to Holders of the Securities as they appear on the books and records of the Master Trust (for, with respect to and on behalf of the above-captioned Series) on the regular record date immediately preceding the Distribution Payment Date on which such
Extension Period terminates to the extent that the above-captioned Series has funds legally available for the payment of such Distributions in the Property Account of the above-captioned Series.

     The Common Securities shall be redeemable, and shall be entitled to the Liquidation Distribution, as provided in the Declaration.

A-2-6

9)Umpqua Holdings Corporation  

AU\4265172.3  

	ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers the Common Securities evidenced by this Common Security Certificate to:

______________________________________

______________________________________

______________________________________

(Insert assignee’s social security or tax identification number)

_____________________________________

_____________________________________

_____________________________________

	(Insert address and zip code of assignee),

and irrevocably appoints _______________________________________ as agent to transfer the Common Securities evidenced by this Common Security Certificate on the books of the Master Trust. The agent may substitute another to act for it, him or her.

	 	Date: ________________________

Signature: _____________________

                                  (Sign exactly as your name appears on the other side of this Common Security Certificate)

                       Signature Guarantee: 1____________________________________

______________________________________________________

1 Signature must be guaranteed by an “eligible guarantor institution” that is a bank, stockbroker, savings and loan association or credit union, meeting the requirements of the Security registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

A-2-7

9)Umpqua Holdings Corporation  

AU\4265172.3  

	EXHIBIT B

FORM OF ADMINISTRATOR’S CERTIFICATE OF THE MASTER TRUST

     Pursuant to Section 2.6(a)(i)(P) of the Amended and Restated Declaration of Trust, dated as of [CLOSING DATE] (as amended or supplemented from time to time, the “Trust Agreement”), of Umpqua Master Trust I (the “Trust”) among Umpqua Holdings Corporation as Sponsor, LaSalle Bank National Association, as Institutional Trustee, LaSalle National Trust Delaware, as Delaware Trustee, the Administrators named therein, and the holders from time to time of beneficial interests in the assets of each Series of the Trust (each, a “Subtrust”), the undersigned (on behalf of the Trust and each Subtrust) hereby certifies that he/she is an Administrator of the Trust and that, to his/her knowledge under the terms of the Trust Agreement, each Trust and Subtrust has complied (without regard to any period of grace or requirement of notice provided under the Trust Agreement) with all conditions and covenants under the Trust Agreement for the year 20____.

     Capitalized terms used herein, and not otherwise defined herein, have respective meanings assigned thereto in the Trust Agreement.

     IN WITNESS WHEREOF, the undersigned has executed this Administrator’s Certificate as of  _________________ , 20_____.

                                                          Umpqua Master Trust I

                                                          __________________________

                                                          Name:

                                                          Title: Administrator

 

 

	AU\4265172.3

	B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]