Document:

Wolverine World Wide Exhibit 10.4 to Form 8-K - 02/17/06

Exhibit 10.4

	
 

	
 

	
Grantee:
	
Number of Shares:

	
 
	
 

	
 
	
Date of Award:

	
 
	
 

	
 
	
Restricted Option Number:

	
 

	
 

RESTRICTED STOCK AGREEMENT

                    This Restricted Stock Agreement ("Agreement") is made as of the award date set forth above, between WOLVERINE WORLD WIDE, INC., a Delaware corporation ("Wolverine"), and the employee named above ("Employee").

                    The Wolverine World Wide, Inc. Stock Incentive Plan (the "Plan") is administered by the Compensation Committee of Wolverine's Board of Directors (the "Committee"). The Committee has determined that Employee is eligible to participate in the Plan. The Committee has awarded restricted stock to Employee, subject to the terms and conditions contained in this Agreement and in the Plan.

                    Employee acknowledges receipt of a copy of the Plan and accepts this restricted stock award subject to all of the terms, conditions, and provisions of this Agreement and the Plan.

          1.          Award. Wolverine hereby awards to Employee shares of Wolverine's common stock, $1 par value, set forth above, and subject to restrictions imposed under this Agreement and the Plan (the "Restricted Stock").

          2.          Transferability. Until the restrictions lapse as set forth in paragraph 3 below, the Plan provides that Restricted Stock granted under this Agreement is generally not transferable by Employee except by will or according to the laws of descent and distribution, and further provides that all rights with respect to the Restricted Stock are exercisable during Employee's lifetime only by Employee, Employee's guardian, or legal representative. Wolverine shall place an appropriate legend upon any certificate representing shares of Restricted Stock awarded under this Agreement and may also issue appropriate stop transfer instructions to its transfer agent with respect to such shares.

          3.          Lapsing of Restrictions. Except as otherwise provided in this Agreement, the restrictions imposed on the Restricted Stock awarded pursuant to this Agreement shall lapse as follows: restrictions on twenty-five percent of the Restricted Stock shall lapse three years from the date of this Agreement; restrictions on an additional twenty-five percent of the Restricted Stock shall lapse four years from the date of this Agreement; and restrictions on the remaining fifty percent of the Restricted Stock shall lapse five years from the date of this Agreement. The periods during which Restricted Stock is subject to restrictions imposed by the Plan and under this Agreement shall be known as "Restricted Periods."

          4.          Registration and Listing; Securities Laws.

                    (a)          The Restricted Stock award under this Agreement is conditional upon (i) the effective registration or exemption of the Plan and the Restricted Stock granted there under the Securities Act of 1933 and applicable state or foreign securities laws, and (ii) the effective listing of the stock on the New York Stock Exchange and the Pacific Stock Exchange.

                    (b)          Employee hereby represents and warrants that Employee is acquiring the Restricted Stock awarded under this Agreement for Employee's own account and investment and without any intent to resell or distribute the Restricted Stock. Employee shall not resell or distribute the Restricted Stock after any Restricted Period except in compliance with such conditions as Wolverine may reasonably specify to ensure compliance with federal and state securities laws.

          5.          Termination of Employment or Officer Status. If the Employee's employment or officer status with Wolverine or any of its Subsidiaries is terminated during any Restricted Period, all Restricted Stock still subject to restrictions at the date of such termination shall either vest or automatically be forfeited and returned to Wolverine as provided in the Plan except as otherwise set forth in this Section. Notwithstanding any provisions of the Plan, a portion of the Restricted Stock subject to this Agreement shall vest upon the following events resulting in termination of employment or officer status: (a) death; (b) disability (as defined in Wolverine's Long-Term Disability Plan); or (c) voluntary termination by an Employee of all employment and/or officer status with Wolverine and its Subsidiaries after the Participant has attained (i) 50 years of age and seven years of service (as an employee and/or officer of Wolverine or its Subsidiaries), (ii) 62 years of age; or (iii) such other age or years of service as may be determined by the Committee in its sole discretion (collectively any of (a), (b), or (c) shall be an "Acceleration Event"). Upon the occurrence of an Acceleration Event, the percentage of this award of Restricted Stock that shall vest shall be determined by dividing the number of full calendar months between the date of this Agreement and the date of the Acceleration Event by 12 and in no event may the percentage accelerated exceed 100%. For example, if a Restricted Stock award occurs on February 15 of a given year and the Acceleration Event occurs on November 15 of such year, 66.67% of the Restricted Stock award would be accelerated (8 full calendar months divided by 12) upon the occurrence of the Acceleration Event.

If Employee is terminated for cause, Employee shall have no further right to receive any Restricted Stock and all Restricted Stock still subject to restrictions at the date of such termination shall automatically be forfeited and returned to Wolverine.

          6.          Employment by Wolverine. The award of Restricted Stock under this Agreement shall not impose upon Wolverine or any subsidiary any obligation to retain Employee in its employ for any given period or upon any specific terms of employment. Wolverine or any subsidiary may at any time dismiss Employee from employment, free from any liability or claim under the Plan or this Agreement, unless otherwise expressly provided in any written agreement with Employee.

          7.          Stockholder Rights.          During the Restricted Period, Employee shall have all voting, dividend, liquidation, and other rights with respect to the Restricted Stock held of record by Employee as if Employee held unrestricted common stock; provided, however, that the unvested portion of any Restricted Stock award shall be subject to any restrictions on transferability or risks of forfeiture imposed pursuant to this Agreement or the Plan. Any noncash dividends or distributions paid with respect to shares of unvested Restricted Stock shall be subject to the same restrictions as those relating to the Restricted Stock awarded under this Agreement. After the restrictions applicable to the Restricted Stock lapse, Employee shall have all stockholder rights, including the right to transfer the shares, subject to such conditions as Wolverine may reasonably specify to ensure compliance with federal and state securities laws.

          8.          Withholding. Wolverine or one of its Subsidiaries shall be entitled to (a) withhold and deduct from Employee's future wages (or from other amounts that may be due and owing to Employee from Wolverine or a subsidiary), or make other arrangements for the collection of, all legally required amounts necessary to satisfy any and all federal, state, and local withholding and employment-related tax requirements attributable to the Restricted Stock award under this Agreement, including, without

limitation, the award or vesting of, or payments of dividends with respect to, the Restricted Stock; or (b) require Employee promptly to remit the amount of such withholding to Wolverine or a subsidiary before taking any action with respect to the Restricted Stock. Unless the Committee provides otherwise, withholding may be satisfied by withholding common stock to be received or by delivery to Wolverine or a subsidiary of previously owned common stock of Wolverine.

          9.          Effective Date. This award of Restricted Stock shall be effective as of the date first set forth above.

          10.          Amendment. This Agreement shall not be modified except in a writing executed by the parties hereto.

          11.          Agreement Controls. The Plan is incorporated in this Agreement by reference. Capitalized terms not defined in this Agreement shall have those meanings provided in the Plan. In the event of any conflict between the terms of this Agreement and the terms of the Plan, the provisions of the Agreement shall control.

	
 
	
        WOLVERINE WORLD WIDE, INC.

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
By
	
/s/ Stephen L. Gulis, Jr.

	
 
	
 
	
Stephen L. Gulis, Jr., Exec. Vice President & CFO

	
 
	
 

	
 
	
 

	
 
	
Signature

	
 
	
 

	
 
	
 

	
 
	
Print nameEXHIBIT 4.1

                          MORGAN STANLEY CAPITAL I INC.

                                    Depositor

                    [WELLS FARGO BANK, NATIONAL ASSOCIATION]

                  Master Servicer and Securities Administrator

                                       and

                       [LASALLE BANK NATIONAL ASSOCIATION]

                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT

                          Dated as of ___________, 200_

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

                   MORGAN STANLEY MORTGAGE LOAN TRUST 200_-__

               MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 200_-__

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I DEFINITIONS..........................................................2

Section 1.01      Definitions..................................................2

ARTICLE II DECLARATION OF TRUST; ISSUANCE OF CERTIFICATES.....................42

Section 2.01  Creation and Declaration of Trust Fund;
              Conveyance of Mortgage Loans....................................42
Section 2.02  Acceptance of Trust Fund by Trustee; Review of
              Documentation for Trust Fund....................................45
Section 2.03  Representations and Warranties of the Depositor.................46
Section 2.04  Representations and Warranties of the Depositor
              and the Seller as to the Mortgage Loans.........................48
Section 2.05  Representations and Warranties of the Seller; Discovery of
              Breach; Repurchase or Substitution of Mortgage Loans............48
Section 2.06  Grant Clause....................................................51

ARTICLE III THE CERTIFICATES..................................................53

Section 3.01  The Certificates................................................53
Section 3.02  Registration....................................................53
Section 3.03  Transfer and Exchange of Certificates...........................54
Section 3.04  Cancellation of Certificates....................................57
Section 3.05  Replacement of Certificates.....................................57
Section 3.06  Persons Deemed Owners...........................................58
Section 3.07  Temporary Certificates..........................................58
Section 3.08  Appointment of Paying Agent.....................................58
Section 3.09  Book-Entry Certificates.........................................59

ARTICLE IV ADMINISTRATION OF THE TRUST FUND...................................60

Section 4.01  Custodial Accounts; Distribution Account........................60
Section 4.02  Permitted Withdrawals from the Custodial
              Accounts and the Distribution Account...........................62
Section 4.03  [Reserved]......................................................63
Section 4.04  [Reserved]......................................................63
Section 4.05  Reports to Trustee and Certificateholders.......................63

ARTICLE V DISTRIBUTIONS TO HOLDERS OF CERTIFICATES............................65

Section 5.01  Distributions Generally.........................................65
Section 5.02  Priorities of Distribution......................................66
Section 5.03  [Reserved]......................................................72
Section 5.04  Allocation of Losses............................................72

                                        i
<PAGE>

Section 5.05  Advances by the Master Servicer.................................74
Section 5.06  Compensating Interest Payments..................................74
Section 5.07  [Reserved]......................................................74
Section 5.08  Cross-Collateralization; Adjustments to Available Funds.........74
Section 5.09  Determination of Pass-Through Rates for LIBOR Certificates......75
Section 5.10  [Reserved]......................................................77
Section 5.11  [Reseved].......................................................77

ARTICLE VI CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR;
EVENTS OF DEFAULT.............................................................78

Section 6.01  Duties of Trustee and the Securities Administrator..............78
Section 6.02  Certain Matters Affecting the Trustee and
              the Securities Administrator....................................81
Section 6.03  Trustee and Securities Administrator Not Liable
              for Certificates................................................82
Section 6.04  Trustee and the Securities Administrator May
              Own Certificates................................................83
Section 6.05  Eligibility Requirements for Trustee............................83
Section 6.06  Resignation and Removal of Trustee and the
              Securities Administrator........................................83
Section 6.07  Successor Trustee and Successor Securities Administrator........86
Section 6.08  Merger or Consolidation of Trustee or the
              Securities Administrator........................................87
Section 6.09  Appointment of Co-Trustee, Separate Trustee or Custodian........87
Section 6.10  Authenticating Agents...........................................89
Section 6.11  Indemnification of the Trustee and the
              Securities Administrator........................................90
Section 6.12  Fees and Expenses of Master Servicer, Securities
              Administrator and the Trustee...................................90
Section 6.13  Collection of Monies............................................91
Section 6.14  Events of Default; Trustee To Act; Appointment of Successor.....91
Section 6.15  Additional Remedies of Trustee Upon Event of Default............96
Section 6.16  Waiver of Defaults..............................................96
Section 6.17  Notification to Holders.........................................97
Section 6.18  Directions by Certificateholders and Duties of
              Trustee During Event of Default.................................97
Section 6.19  Action Upon Certain Failures of the Master Servicer
              and Upon Event of Default.......................................97
Section 6.20  Preparation of Tax Returns and Reports..........................97

ARTICLE VII PURCHASE OF MORTGAGE LOANS AND TERMINATION OF THE TRUST FUND......98

Section 7.01  Purchase of Mortgage Loans; Termination of Trust Fund
              Upon Purchase or Liquidation of
              All Mortgage Loans..............................................98
Section 7.02  Procedure Upon Termination of Trust Fund........................99
Section 7.03  Additional Trust Fund Termination Requirements.................100

ARTICLE VIII RIGHTS OF CERTIFICATEHOLDERS....................................101

Section 8.01  Limitation on Rights of Holders................................101
Section 8.02  Access to List of Holders......................................102

                                       ii
<PAGE>

Section 8.03  Acts of Holders of Certificates................................102

ARTICLE IX ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY
THE MASTER SERVICER..........................................................103

Section 9.01  Duties of the Master Servicer; Enforcement of Servicers'
              and Master Servicer's
              Obligations....................................................103
Section 9.02  Assumption of Master Servicing by Trustee......................106
Section 9.03  Representations and Warranties of the Master Servicer..........106
Section 9.04  Compensation to the Master Servicer............................108
Section 9.05  Merger or Consolidation........................................109
Section 9.06  Resignation of Master Servicer and Securities Administrator....109
Section 9.07  Assignment or Delegation of Duties by the Master
              Servicer and Securities Administrator..........................110
Section 9.08  Limitation on Liability of the Master
              Servicer and Others............................................110
Section 9.09  Indemnification; Third-Party Claims............................111
Section 9.10  Eligibility Requirements for Securities Administrator..........111
Section 9.11  Annual Statement as to Compliance..............................112

ARTICLE X REMIC ADMINISTRATION...............................................113

Section 10.01  REMIC Administration..........................................113
Section 10.02  Prohibited Transactions and Activities........................115
Section 10.03  Indemnification with Respect to Prohibited
               Transactions or Loss of REMIC Status..........................116
Section 10.04  REO Property..................................................116
Section 10.05  Fidelity......................................................117

ARTICLE XI MISCELLANEOUS PROVISIONS..........................................117

Section 11.01  Binding Nature of Agreement; Assignment.......................117
Section 11.02  Entire Agreement..............................................117
Section 11.03  Amendment.....................................................117
Section 11.04  Voting Rights.................................................118
Section 11.05  Provision of Information......................................119
Section 11.06  Governing Law.................................................119
Section 11.07  Notices.......................................................119
Section 11.08  Severability of Provisions....................................120
Section 11.09  Indulgences; No Waivers.......................................120
Section 11.10  Headings Not To Affect Interpretation.........................120
Section 11.11  Benefits of Agreement.........................................120
Section 11.12  Special Notices to the Rating Agencies........................120
Section 11.13  Conflicts.....................................................121
Section 11.14  Counterparts..................................................121
Section 11.15  No Petitions..................................................121
Section 11.16  Indemnification by Trust......................................122

                                       iii
<PAGE>

ARTICLE XII EXCHANGE ACT REPORTING...........................................122

Section 12.01  Filing Obligations............................................122
Section 12.02  Form 10-D Reporting...........................................123
Section 12.03  Form 8-K Reporting............................................124
Section 12.04  Form 10-K Reporting...........................................125
Section 12.05  Sarbanes-Oxley Certification..................................126
Section 12.06  Reports on Assessment of Compliance and Attestation...........127
Section 12.07  Use of Servicers and Subcontractors...........................128
Section 12.08  Indemnification by the Master Servicer
               and the Securities Administrator..............................129

                                       iv
<PAGE>

                                   ATTACHMENTS

Exhibit A     Forms of Certificates
Exhibit B     Form of Residual Certificate Transfer Affidavit (Transferee)
Exhibit C     Form of Residual Certificate Transfer Affidavit (Transferor)
Exhibit D     [Reserved]
Exhibit E     List of Purchase and Servicing Agreements
Exhibit F     List of Custodial Agreements
Exhibit G     Assignment and Notice of Transfer with Respect to
              Additional Collateral Mortgage Loans
Exhibit H     Form of Rule 144A Transfer Certificate
Exhibit I     Form of Purchaser's Letter for Institutional Accredited Investors
Exhibit J     Form of ERISA Transfer Affidavit
Exhibit K     Form of Letter of Representations with the Depository
              Trust Company
Exhibit L     Form of Custodian Certification
Exhibit M     Assignment and Notice of Transfer with respect to each
              Additional Collateral Mortgage Loan
Exhibit N     List of Item 1119 Parties
Exhibit O     Form of Servicing Criteria to be Addressed in
              Assessment of Compliance Statement
Exhibit P     Form of Performance Certification (Servicer)
Schedule A    Mortgage Loan Schedule
Schedule B    Principal Balances Schedule

                                        v
<PAGE>

      This POOLING AND SERVICING AGREEMENT, dated as of ___________, 200_ (the
"Agreement"), by and among MORGAN STANLEY CAPITAL I INC., a Delaware
corporation, as depositor (the "Depositor"), [LASALLE BANK NATIONAL
ASSOCIATION], a national banking association, as trustee (the "Trustee"), and
[WELLS FARGO BANK, NATIONAL ASSOCIATION], in its dual capacities as master
servicer (the "Master Servicer") and securities administrator (the "Securities
Administrator"), and acknowledged by MORGAN STANLEY MORTGAGE CAPITAL INC., a New
York corporation, as seller (the "Seller"), for purposes of Section 2.05.

                                 WITNESSETH THAT

      In consideration of the mutual agreements herein contained, the parties
hereto agree as follows:

                              PRELIMINARY STATEMENT

                                The Master REMIC

      The following table sets forth characteristics of the Master REMIC
Certificates, together with the minimum denominations and integral multiples in
excess thereof in which such Classes shall be issuable (except that one
Certificate of each Class of Certificates may be issued in a different amount
and, in addition, one Residual Certificate representing the Tax Matters Person
Certificate may be issued in a different amount):

<TABLE>
<CAPTION>

                    Initial Class   Pass-Through
                      Principal         Rate           Minimum          Integral Multiples
Class Designation      Balance      (per annum)      Denomination      in Excess of Minimum
-------------------------------------------------------------------------------------------
<S>                 <C>             <C>            <C>                 <C>
Class [1-A-1]                $[o]       [o]%         $[25,000.00]         $[1,000.00]
Class [1-A-X]         Notional(1)       [o]%        $[100,000.00](2)      $[1,000.00](2)
Class [1-A-P]                $[o]       (3)        $[25,000.00]           $[1,000.00]
Class [2-A-1]                $[o]       (4)          $[25,000.00]         $[1,000.00]
Class [2-A-X]         Notional(1)       [o]%        $[100,000.00](2)      $[1,000.00](2)
Class [2-A-P]                $[o]       (3)        $[25,000.00]           $[1,000.00]
Class [A-R](5)          $[100.00]       [o]%               (6)                 (6)
Class [M-1]                  $[o]       (7)          $[25,000.00]         $[1,000.00]
Class [M-2]                  $[o]       (7)          $[25,000.00]         $[1,000.00]
Class [M-3]                  $[o]       (7)          $[25,000.00]         $[1,000.00]
Class [M-4]                  $[o]       (7)          $[25,000.00]         $[1,000.00]
Class [M-5]                  $[o]       (7)          $[25,000.00]         $[1,000.00]
Class [M-6]                  $[o]       (7)          $[25,000.00]         $[1,000.00]
Class [B-1]                  $[o]       (7)         $[100,000.00]         $[1,000.00]
Class [B-2]                  $[o]       (7)         $[100,000.00]         $[1,000.00]
Class [B-3]                  $[o]       (7)         $[100,000.00]         $[1,000.00]
Class [P]               $[100.00]       (8)             $[100.00]             N/A

</TABLE>

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

                                       vi
<PAGE>

(1)   The Class 1-A-X and Class 2-A-X Certificates will be Notional Amount
      Certificates, will have no Class Principal Balance and will bear interest
      on their respective initial Notional Amounts (initially, $[o] and $[o],
      respectively).

(2)   Minimum denomination is based on the Notional Amount of such Class.

(3)   The Class 1-A-P and Class 2-A-P Certificates are principal only
      certificates and are not entitled to receive any distributions of
      interest.

(4)   The Pass-Through Rate for the Class 2-A-1 Certificates for the Interest
      Accrual Period related to any Distribution Date will be a per annum rate
      equal to the sum of one-month LIBOR plus [o]%, subject to a maximum per
      annum rate of [o]% and a minimum rate of [o]%. The Pass-Through Rate for
      the Class 2-A-1 Certificates for the first Interest Accrual Period will be
      a per annum rate of [o]%.

(5)   The Class A-R Certificates represent the sole Class of residual interest
      in each REMIC.

(6)   The Class A-R Certificate shall be issued as two separate certificates,
      one with an initial Certificate Balance of $[99.99] and the Tax Matters
      Person Certificate with an initial Certificate Balance of $[0.01].

(7)   The Pass-Through Rate for each Class of Subordinated Certificates for the
      Interest Accrual Period related to any Distribution Date will be a per
      annum rate equal to the sum of: (A) the sum of: (1) [o]% multiplied by the
      excess of the aggregate Stated Principal Balance of the Collateral
      Allocation Group [1] Mortgage Loans as of the Due Date in the month
      preceding the month of that Distribution Date (after giving effect to
      prepayments received in the Prepayment Period related to such prior Due
      Date) over the aggregate of the Class Principal Balances of the Group [1]
      Senior Certificates immediately prior to that Distribution Date and (2)
      [o]% multiplied by the excess of the aggregate Stated Principal Balance of
      the Collateral Allocation Group [2] Mortgage Loans as of the Due Date in
      the month preceding the month of that Distribution Date (after giving
      effect to prepayments received in the Prepayment Period related to such
      prior Due Date) over the aggregate of the Class Principal Balances of the
      Group [2] Senior Certificates immediately prior to that Distribution Date.

(8)   The Class P Certificates will receive all payments in respect of
      prepayment penalties on all of the Mortgage Loans in each Loan Group owned
      by the Trust and are not entitled to receive any distributions of
      interest.

      The foregoing provisions in the Preliminary Statement are intended to
cause net interest and principal collections in respect of the Mortgage Loans to
be distributed from the Subsidiary REMIC to the Master REMIC and from the Master
REMIC to each Class of Certificates. The Preliminary Statement will be
interpreted and applied consistently with such intent.

      For any purpose for which the pass-through rates is calculated, the
interest rate on the Mortgage Loans shall be appropriately adjusted to account
for the difference between the monthly day count convention of the Mortgage
Loans and the monthly day count convention of the regular interests issued by
each of the REMICs. For purposes of calculating the pass-through rates for each
of the interests issued by the Subsidiary REMIC and the Master REMIC such rates
shall be adjusted to equal a monthly day count convention based on a 30 day
month for each Due Period and a 360-day year so that the Mortgage Loans and all
regular interests will be using the same monthly day count convention.

                                       vii
<PAGE>

      The fiscal year of each REMIC will end on December 31.

                                      viii
<PAGE>

Set forth below are designations of Classes or Components of Certificates and
other defined terms to the categories used herein:

Accretion Directed Certificates...........  None.

Accretion Directed Components.............  None.

Accrual Certificates......................  None.

Accrual Components........................  None.

Book-Entry Certificates...................  All Classes of Certificates other
                                            than the Definitive Certificates.

Combined Certificates.....................  None.

Component Certificates....................  None.

Components................................  None.

Delay Certificates........................  All interest-bearing Classes of
                                            Certificates other than the
                                            Non-Delay Certificates, if any.

ERISA-Restricted Certificates.............  The Residual Certificates and
                                            Private Certificates; and any
                                            Certificate of a Class that ceases
                                            to satisfy the applicable rating
                                            requirement under the Underwriter's
                                            Exemption.

Floating Rate Certificates................  None.

Group 1 Certificates......................  Group [1] Senior Certificates and
                                            the portions of the Subordinated
                                            Certificates related to Collateral
                                            Allocation Group [1].

Group [1] Senior Certificates.............  Class [1-A], Class [1-A-X] and Class
                                            [A-R] Certificates.

Group 2 Certificates......................  Group [2] Senior Certificates and
                                            the portions of the Subordinated
                                            Certificates related to Collateral
                                            Allocation Group [2].

Group [2] Senior Certificates.............  Class [2-A-1], Class [2-A-X] and
                                            Class [2-A-P] Certificates.

Inverse Floating Rate Certificates........  None.

LIBOR Certificates........................  Floating Rate and Inverse Floating
                                            Rate Certificates.

Non-Delay Certificates....................  LIBOR Certificates.

Notional Amount Certificates..............  Class [1-A-X] and Class [2-A-X].

Notional Amount Components................  None.

Offered Certificates......................  All Classes of Certificates other
                                            than the Private Certificates.

                                       1
<PAGE>

Definitive Certificates...................  Private Certificates and the
                                            Residual Certificates.

Planned Principal Classes.................  None.

Principal Only Certificates...............  Class [1-A-P] and Class [2-A-P]
                                            Certificates.

Principal Only Components.................  None.

Private Certificates......................  Class [B-1], Class [B-2], Class
                                            [B-3] and Class [P] Certificates.

Rating Agencies...........................  S&P and Moody's.

Regular Certificates......................  All Classes of Certificates, other
                                            than the Residual Certificates.

Residual Certificates.....................  Class [A-R] Certificates.

Scheduled Principal Classes...............  None.

Senior Certificate Group..................  The Group [1] Senior Certificates
                                            and Group [2] Senior Certificates,
                                            as applicable.

Senior Certificates.......................  Collectively, the Group [1] Senior
                                            Certificates and Group [2] Senior
                                            Certificates.

Subordinated Certificates.................  Class [M-1], Class [M-2], Class
                                            [M-3], Class [M-4], Class [M-5],
                                            Class [M-6], Class [B-1], Class
                                            [B-2] and Class [B-3] Certificates.

Targeted Principal Classes................  None.

Underwriter...............................  Morgan Stanley & Co. Incorporated.

      With respect to any of the foregoing designations as to which the
corresponding reference is "None," all defined terms and provisions herein
relating solely to such designations shall be of no force or effect, and any
calculations herein incorporating references to such designations shall be
interpreted without reference to such designations and amounts. Defined terms
and provisions herein relating to statistical rating agencies not designated
above as Rating Agencies shall be of no force or effect.

                                    ARTICLE I

                                   DEFINITIONS

      Section 1.01 Definitions.

      The following words and phrases, unless the context otherwise requires,
shall have the following meanings:

      A-P Formula Principal Amount: As to any Distribution Date and any
Collateral Allocation Group the sum of (i) the sum of the applicable A-P
Percentage of (a) the principal

                                       2
<PAGE>

portion of each Scheduled Payment (without giving effect, prior to the
Bankruptcy Coverage Termination Date, to any reductions thereof caused by any
Debt Service Reductions or Deficient Valuations) due on the Applicable Fraction
of each Mortgage Loan in the related Collateral Allocation Group on the related
Due Date, (b) the Stated Principal Balance of the Applicable Fraction of each
Mortgage Loan in the related Collateral Allocation Group that was repurchased by
the Seller or the related Originator or purchased by the Master Servicer
pursuant to this Agreement as of such Distribution Date, (c) the Substitution
Adjustment Amount in connection with any the Applicable Fraction of Deleted
Mortgage Loan in the related Collateral Allocation Group received with respect
to such Distribution Date, (d) any Insurance Proceeds or Liquidation Proceeds
allocable to recoveries of principal of the Applicable Fraction of Mortgage
Loans in the related Collateral Allocation Group that are not yet Liquidated
Mortgage Loans received during the calendar month preceding the month of such
Distribution Date, (e) with respect to the Applicable Fraction of each Mortgage
Loan in the related Collateral Allocation Group that became a Liquidated
Mortgage Loan during the calendar month preceding the month of such Distribution
Date, the amount of Liquidation Proceeds allocable to principal received with
respect to such Mortgage Loan allocable to that Collateral Allocation Group
during the calendar month preceding the month of such Distribution Date with
respect to such Mortgage Loan and, if such Liquidated Mortgage Loan is an
Additional Collateral Mortgage Loan, the principal portion of the proceeds of
any Additional Collateral allocated to the Collateral Allocation Group and (f)
the Applicable Fraction of all Principal Prepayments with respect to the
Mortgage Loans in the related Collateral Allocation Group received during the
related Prepayment Period, and (ii) with respect to Subsequent Recoveries
attributable to the Applicable Fraction of a Discount Mortgage Loan in the
related Collateral Allocation Group which incurred (1) an Excess Loss or (2) a
Realized Loss after the Senior Credit Support Depletion Date, the A-P Percentage
of the Applicable Fraction of any Subsequent Recoveries on the Mortgage Loans
related to such Collateral Allocation Group received during the calendar month
preceding the month of such Distribution Date.

      A-P Percentage: As to any Discount Mortgage Loan or Applicable Fraction
thereof in Collateral Allocation Group [1] or Collateral Allocation Group [2], a
fraction (expressed as a percentage) the numerator of which is the excess of the
Required Coupon for such Collateral Allocation Group over the Net Mortgage Rate
of such Discount Mortgage Loan and the denominator of which is such Required
Coupon. As to any Non-Discount Mortgage Loan or Applicable Fraction thereof in
Collateral Allocation Group [1] or Collateral Allocation Group [2], 0%.

      Accountant: A Person engaged in the practice of accounting who (except
when this Agreement provides that an Accountant must be Independent) may be
employed by or affiliated with the Depositor or an Affiliate of the Depositor.

      Acknowledgements: The Assignment, Assumption and Recognition Agreements,
each dated as of ___________, 200_, assigning rights under the Purchase and
Servicing Agreements from the Seller to the Depositor and from the Depositor to
the Trustee, for the benefit of the Certificateholders.

      Accretion Directed Certificates: As specified in the Preliminary
Statement.

                                       3
<PAGE>

      Accretion Direction Rule: Not Applicable.

      [Accrual Amount: With respect to any Class of Accrual Certificates or any
Accrual Component and any Distribution Date, the amount allocable to interest on
such Class of Accrual Certificates with respect to such Distribution Date
pursuant to Section 5.02(a)(1)(iii) and Section 5.02(a)(2)(iii), as applicable.]

      Accrual Certificates: As specified in the Preliminary Statement.

      Accrual Components: As specified in the Preliminary Statement.

      [Accrual Termination Date: The Senior Credit Support Depletion Date.]

      Act: The Securities Act of 1933, as amended.

      Additional Collateral: Not applicable.

      Additional Collateral Mortgage Loan: Not applicable.

      Additional Form 10-D Disclosure: As defined in Section 12.02 hereof.

      Additional Form 10-K Disclosure: As defined in Section 12.04 hereof.

      Additional Servicer: means each affiliate of each Servicer that Services
any of the Mortgage Loans and each Person who is not an affiliate of the any
Servicer, who Services 10% or more of the Mortgage Loans. For clarification
purposes, the Master Servicer and the Securities Administrator are Additional
Servicers.

      Advance: With respect to a Mortgage Loan, the payments required to be made
by the Master Servicer or the applicable Servicer with respect to any
Distribution Date pursuant to this Agreement or the applicable Purchase and
Servicing Agreement, as applicable, the amount of any such payment being equal
to the aggregate of the payments of principal and interest (net of the
applicable Servicing Fee and net of any net income in the case of any REO
Property) on the Mortgage Loans that were due on the related Due Date and not
received as of the close of business on the related Determination Date, less the
aggregate amount of any such delinquent payments that the Master Servicer or the
applicable Servicer has determined would constitute Nonrecoverable Advances if
advanced.

      Adverse REMIC Event: Either (i) loss of status as a REMIC, within the
meaning of Section 860D of the Code, for any group of assets identified as a
REMIC in the Preliminary Statement to this Agreement, or (ii) imposition of any
tax, including the tax imposed under Section 860F(a)(1) on prohibited
transactions, and the tax imposed under Section 860G(d) on certain contributions
to a REMIC, on any REMIC created hereunder to the extent such tax would be
payable from assets held as part of the Trust Fund.

      Affiliate: With respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified Person means the power to direct

                                       4
<PAGE>

the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the
terms "controlling" and "controlled" have meanings correlative to the foregoing.

      Aggregate Expense Rate: With respect to any Mortgage Loan, the applicable
Servicing Fee Rate and, with respect to any LPMI Mortgage Loan, the interest
premium charged by the mortgagee to obtain or maintain any Primary Insurance
Policy.

      Aggregate Planned Balance: With respect to any group of Planned Principal
Classes or Components and any Distribution Date, the amount set forth for such
group for such Distribution Date in Schedule B hereto.

      Aggregate Targeted Balance: With respect to any group of Targeted
Principal Classes or Components and any Distribution Date, the amount set forth
for such group for such Distribution Date in Schedule B hereto.

      Aggregate Voting Interests: The aggregate of the Voting Interests of all
the Certificates under this Agreement.

      Agreement: This Pooling and Servicing Agreement and all amendments or
supplements hereto.

      [Allocable Share: As to any Distribution Date and any Mortgage Loan (i)
with respect to Principal Only Certificates, zero, (ii) with respect to the
Class [1-A-X] and Class [2-A-X] Certificates, (a) the ratio that the excess, if
any, of the Net Mortgage Rate with respect to such Mortgage Loan or the
Applicable Fraction thereof, over the related Required Coupon bears to such Net
Mortgage Rate or (b) if the Net Mortgage Rate with respect to such Mortgage Loan
or the Applicable Fraction thereof does not exceed the related Required Coupon,
zero, (iii) with respect to each other Class of Group [1] or Group [2]
Certificates the product of (a) the lesser of (I) the ratio that the related
Required Coupon bears to the Net Mortgage Rate of such Mortgage Loan or the
Applicable Fraction thereof and (II) one, multiplied by (b) the ratio that the
amount calculated with respect to such Distribution Date (A) with respect to the
Senior Certificates of the related Senior Certificate Group, pursuant to clause
(i) of the definition of Class Optimal Interest Distribution Amount (without
giving effect to any reduction of such amount pursuant to Section 5.02 (d)) and
(B) with respect to the Subordinated Certificates, pursuant to the definition of
Assumed Interest Amount or after a Senior Termination Date, pursuant to clause
(i) of the definition of Class Optimal Interest Distribution Amount (without
giving effect to any reduction of such amount pursuant to Section 5.02(d)) bears
to the amount calculated with respect to such Distribution Date for each Class
of Certificates pursuant to clause (i) of the definition of Class Optimal
Interest Distribution Amount (without giving effect to any reduction of such
amount pursuant to Section 5.02(d)) or the definition of Assumed Interest Amount
for such Collateral Allocation Group and Class, as applicable and (iv) with
respect to any other Class of Certificates, the ratio that the amount calculated
with respect to such Distribution Date (A) with respect to the Senior
Certificates of the related Senior Certificate Group, pursuant to clause (i) of
the definition of Class Optimal Interest Distribution Amount (without giving
effect to any reduction of such amount pursuant to Section 5.02 (d)) and (B)
with respect to the Subordinated Certificates, pursuant to the definition of
Assumed Interest Amount or after a Senior Termination Date,

                                       5
<PAGE>

pursuant to clause (i) of the definition of Class Optimal Interest Distribution
Amount (without giving effect to any reduction of such amount pursuant to
Section 5.02(d)) bears to the amount calculated with respect to such
Distribution Date for each Class of Certificates pursuant to clause (i) of the
definition of Class Optimal Interest Distribution Amount (without giving effect
to any reduction of such amount pursuant to Section 5.02(d)) or the definition
of Assumed Interest Amount for such Collateral Allocation Group and Class, as
applicable.]

      [Amount Available for Senior Principal: As to any Distribution Date and
(a) Collateral Allocation Group [1], Available Funds for such Distribution Date
and Collateral Allocation Group, reduced by the aggregate amount distributable
(or allocable to the Accrual Amount, if applicable) on such Distribution Date in
respect of interest on the related Senior Certificates pursuant to Section
5.02(a)(1)(ii) or (b) Collateral Allocation Group [2], Available Funds for such
Distribution Date and Collateral Allocation Group, reduced by the aggregate
amount distributable (or allocable to the Accrual Amount, if applicable) on such
Distribution Date in respect of interest on the related Senior Certificates
pursuant to Section 5.02(a)(2)(ii).]

      Amount Held for Future Distribution: As to any Distribution Date and the
Mortgage Loans related to a Collateral Allocation Group, the aggregate amount
held in the Custodial Accounts at the close of business on the related
Determination Date on account of (i) Principal Prepayments received after the
related Prepayment Period and Liquidation Proceeds and Subsequent Recoveries
received in the month of such Distribution Date relating to such Collateral
Allocation Group and (ii) all Scheduled Payments due after the related Due Date
relating to such Collateral Allocation Group.

      Applicable Credit Support Percentage: As defined in Section 5.02(e).

      Applicable Fraction: With respect to any Mortgage Loan related to
Collateral Allocation Group [1] and Collateral Allocation Group [2], 100%

      Appraised Value: With respect to any Mortgage Loan, the Appraised Value of
the related Mortgaged Property shall be: (i) with respect to a Mortgage Loan
other than a Refinancing Mortgage Loan, the lesser of (a) the value of the
Mortgaged Property based upon the appraisal made at the time of the origination
of such Mortgage Loan and (b) the sales price of the Mortgaged Property at the
time of the origination of such Mortgage Loan; and (ii) with respect to a
Refinancing Mortgage Loan, the value of the Mortgaged Property based upon the
appraisal made at the time of the origination of such Refinancing Mortgage Loan.

      Assignment of Mortgage: An assignment of the Mortgage, notice of transfer
or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
sale of the Mortgage to the Trustee, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering the Mortgage Loans secured by Mortgaged Properties located in the same
jurisdiction, if permitted by law; provided, however, that the Trustee shall not
be responsible for determining whether any such assignment is in recordable form
or sufficient under the laws of the applicable jurisdiction to reflect the sale
of the Mortgage to the Trustee.

                                       6
<PAGE>

      Assignment of Proprietary Lease: With respect to a Cooperative Loan, an
assignment of the Proprietary Lease sufficient under the laws of the
jurisdiction wherein the related Cooperative Unit is located to reflect the
assignment of such Proprietary Lease; provided, however, that the Trustee shall
not be responsible for determining whether such assignment is sufficient to
reflect the assignment of the Proprietary Lease.

      Assignment of Recognition Agreement: With respect to a Cooperative Loan,
an assignment of the Recognition Agreement sufficient under the laws of the
jurisdiction wherein the related Cooperative Unit is located to reflect the
assignment of such Recognition Agreement; provided, however, that the Trustee
shall not be responsible for determining whether such assignment is sufficient
to reflect the assignment of the Recognition Agreement.

      Assumed Balance: With respect to any Distribution Date, Class of
Subordinated Certificates and Collateral Allocation Group, each such Class' pro
rata interest (based on their respective Class Principal Balances) in such
Collateral Allocation Group equal to the product of the Subordinated Percentage
for such Collateral Allocation Group as of such Distribution Date and the
aggregate of the applicable Non-A-P Percentage of the Stated Principal Balance
of each Mortgage Loan or Applicable Fraction thereof in such Collateral
Allocation Group as of the Due Date occurring in the month preceding the month
of such Distribution Date (after giving effect to Principal Prepayments received
in the related Prepayment Period).

      Assumed Interest Amount: With respect to any Distribution Date and Class
of Subordinated Certificates, one month's interest accrued during the related
Interest Accrual Period at the Pass-Through Rate for such Class on the
applicable Assumed Balance immediately prior to that Distribution Date.

      Authenticating Agent: Any authenticating agent appointed pursuant to
Section 6.10 until any successor authenticating agent for the Certificates is
named, and thereafter "Authenticating Agent" shall mean any such successor. The
initial Authenticating Agent shall be the Securities Administrator under this
Agreement.

      Authorized Officer: Any Person who may execute an Officer's Certificate on
behalf of the Depositor.

      Available Funds: As to any Distribution Date and the Mortgage Loans or
Applicable Fractions thereof in a Collateral Allocation Group, the sum, for that
Collateral Allocation Group, of (a) the aggregate amount held in the Custodial
Accounts at the close of business on the related Determination Date, including
any Subsequent Recoveries, in respect of such Mortgage Loans in the related Loan
Group in proportion to the Applicable Fraction of those Mortgage Loans in that
Collateral Allocation Group net of (i) the Amount Held for Future Distribution,
(ii) amounts permitted to be withdrawn from the Custodial Accounts pursuant to
Section 4.02(a) in respect of such Mortgage Loans or Applicable Fractions
thereof and (iii) amounts permitted to be withdrawn from the Distribution
Account pursuant to clauses (i)-(v) inclusive of Section 4.02(b), in each case
in the related Loan Group in proportion to the Applicable Fraction of those
Mortgage Loans in that Collateral Allocation Group, (b) the amount of all
related Advances made by the Servicers and the Master Servicer and all
Compensating Interest Payments or payments made in respect of Prepayment
Interest Shortfalls paid by the Servicers and the Master

                                       7
<PAGE>

Servicer, in each case, in respect of such Mortgage Loans in the related Loan
Group in proportion to the Applicable Fraction of those Mortgage Loans in that
Collateral Allocation Group, (c) in connection with Defective Mortgage Loans in
the related Loan Group, as applicable, the aggregate of the Purchase Prices and
Substitution Adjustment Amounts, in each case, in proportion to the Applicable
Fraction of those Mortgage Loans in that Collateral Allocation Group deposited
on the related Distribution Account Deposit Date minus (d) all related fees,
charges and other amounts payable or reimbursable to the Master Servicer, the
Securities Administrator, any Custodian or the Trustee under this Agreement or
the related Custodial Agreement or to the Servicers under the Purchase and
Servicing Agreements, or, if any amounts are not specifically related to the
Mortgage Loans or Applicable Fractions thereof in that Collateral Allocation
Group or the related Certificate Group, then the applicable Collateral
Allocation Group Percentage for such Collateral Allocation Group for such
Distribution Date of such amounts. The Holders of the Class P Certificates will
be entitled to all Prepayment Penalties received on the Mortgage Loans owned by
the Trust and such amounts will not be available for distribution to the Holders
of any other Class of Certificates.

      Bankruptcy: As to any Person, the making of an assignment for the benefit
of creditors, the filing of a voluntary petition in bankruptcy, adjudication as
a bankrupt or insolvent, the entry of an order for relief in a bankruptcy or
insolvency proceeding, the seeking of reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief, or seeking, consenting
to or acquiescing in the appointment of a trustee, receiver or liquidator,
dissolution, or termination, as the case may be, of such Person pursuant to the
provisions of either the Bankruptcy Code or any other similar state laws.

      Bankruptcy Code: The United States Bankruptcy Code of 1986, as amended.

      Bankruptcy Coverage Termination Date: The point in time at which the
Bankruptcy Loss Coverage Amount is reduced to zero.

      Bankruptcy Loss: With respect to any Mortgage Loan, a Deficient Valuation
or Debt Service Reduction reported to the Master Servicer by the related
Servicer; provided, however, that a Bankruptcy Loss shall not be deemed a
Bankruptcy Loss hereunder so long as the related Servicer has notified the
Master Servicer in writing that the related Servicer is diligently pursuing any
remedies that may exist in connection with the related Mortgage Loan and either
(A) the related Mortgage Loan is not in default with regard to payments due
thereunder or (B) delinquent payments of principal and interest under the
related Mortgage Loan and any related escrow payments in respect of such
Mortgage Loan are being advanced on a current basis by the Master Servicer or
the related Servicer, in either case without giving effect to any Debt Service
Reduction or Deficient Valuation, as reported by the related Servicer to the
Master Servicer.

      Bankruptcy Loss Coverage Amount: As of any date of determination, the
Bankruptcy Loss Coverage Amount shall equal the Initial Bankruptcy Coverage
Amount as reduced by (i) the aggregate amount of Bankruptcy Losses allocated to
the Certificates since the Cut-off Date and (ii) any permissible reductions in
the Bankruptcy Loss Coverage Amount as evidenced by a letter of each Rating
Agency to the Trustee and the Securities Administrator to the effect that any
such reduction will not result in a downgrading of the then current ratings
assigned to the Classes of Certificates rated by it.

                                       8
<PAGE>

      Book-Entry Certificates: Beneficial interests in Certificates designated
as "Book-Entry Certificates" in this Agreement, ownership and transfers of which
shall be evidenced or made through book entries by a Clearing Agency as
described in Section 3.09; provided, that after the occurrence of a Book-Entry
Termination whereupon book-entry registration and transfer are no longer
permitted and Definitive Certificates are to be issued to Certificate Owners,
such Book-Entry Certificates shall no longer be "Book-Entry Certificates." The
Classes of Certificates that constitute "Book-Entry Certificates" as of the
Closing Date are set forth in the Preliminary Statement.

      Book-Entry Termination: The date on which the Clearing Agency is no longer
willing or able to properly discharge its responsibilities with respect to the
Book Entry Certificates, and the Depositor is unable to locate a qualified
successor.

      Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day
on which banking institutions in New York, New York or, if other than New York,
the city in which the Corporate Trust Office of the Trustee is located, or the
States of Maryland or Minnesota, are authorized or obligated by law or executive
order to be closed.

      Calculation Rate: For each Distribution Date, in the case of the Class A
and Class B Interests, the product of (i) 10 and (ii) the weighted average rate
of the outstanding Class A and Class B Interests, treating each Class A Interest
as capped at zero or reduced by a fixed percentage of 100% of the interest
accruing on such Class.

      Certificate: Any one of the certificates signed by the Trustee, or the
Securities Administrator on the Trustee's behalf, and authenticated by the
Securities Administrator as Authenticating Agent in substantially the forms
attached hereto as Exhibit A.

      Certificate Balance: With respect to any Certificate at any date, the
maximum dollar amount of principal to which the Holder thereof is then entitled
hereunder, such amount being equal to the principal balance or notional amount,
as applicable, as of the Closing Date (A) plus any Subsequent Recoveries added
to the Certificate Balance of such Certificate pursuant to Section 5.02, (B)
minus the sum of (i) all distributions of principal previously made with respect
thereto and (ii) all Realized Losses allocated thereto and, in the case of any
Subordinated Certificates, all other reductions in Certificate Balance
previously allocated thereto pursuant to Section 5.04 and (C) in the case of any
Class of Accrual Certificates, increased by the Accrual Amount added to the
Class Principal Balance of such Class prior to such date.

      Certificate Group: As specified in the Preliminary Statement.

      Certificate Owner: With respect to a Book-Entry Certificate, the Person
who is the owner of such Book-Entry Certificate, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly or as an indirect participant, in accordance with
the rules of such Clearing Agency).

      Certificate Register and Certificate Registrar: The register maintained
and the registrar appointed pursuant to Section 3.02. The initial Certificate
Registrar is the Securities Administrator under this Agreement.

                                       9
<PAGE>

      Certificateholder: The meaning provided in the definition of "Holder."

      Certification Party: As defined in Section 12.05.

      Certifying Person: As defined in Section 12.05.

      Class: All Certificates bearing the same Class designation as set forth in
the Preliminary Statement.

      Class A-P Certificates: The Class [1-A-P] and Class [2-A-P] Certificates.

      Class A-P Deferred Amount: As to any Distribution Date and Collateral
Allocation Group, the aggregate of the applicable A-P Percentage of each
Realized Loss, other than any Excess Loss, on a Discount Mortgage Loan in that
Collateral Allocation Group to be allocated to the related Class A-P Component
on such Distribution Date on or prior to the Senior Credit Support Depletion
Date or previously allocated to but not yet paid to the Holders of the Class A-P
Certificates.

      Class Interest Shortfall: As to any Distribution Date and Class, the
amount by which the amount described in clause (i) of the definition of Class
Optimal Interest Distribution Amount for such Class exceeds the amount of
interest actually distributed on such Class on such Distribution Date pursuant
to such clause (i).

      Class Optimal Interest Distribution Amount: With respect to any
Distribution Date and interest bearing Class or, with respect to any interest
bearing Component, the sum of (i) one month's interest accrued during the
related Interest Accrual Period at the Pass-Through Rate for such Class on the
related Class Principal Balance, Component Balance, Notional Amount or Component
Notional Amount, as applicable, immediately prior to such Distribution Date,
subject to reduction as provided in Section 5.02(d) and (ii) any Class Unpaid
Interest Amounts for such Class or Component.

      Class Principal Balance: With respect to any Class and as to any date of
determination, the aggregate of the Certificate Balances of all Certificates of
such Class as of such date.

      Class Subordination Percentage: With respect to any Distribution Date and
each Class of Subordinated Certificates, the quotient (expressed as a
percentage) of (a) the Class Principal Balance of such Class of Certificates
immediately prior to such Distribution Date divided by (b) the aggregate of the
Class Principal Balances immediately prior to such Distribution Date of all
Classes of Certificates.

      Class Unpaid Interest Amounts: As to any Distribution Date and Class of
interest bearing Certificates, the amount by which the aggregate Class Interest
Shortfalls for such Class on prior Distribution Dates exceeds the amount
distributed on such Class on prior Distribution Dates pursuant to clause (ii) of
the definition of Class Optimal Interest Distribution Amount.

      Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended. As
of the Closing Date, the Clearing Agency shall be The Depository Trust Company.

                                       10
<PAGE>

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

      Closing Date: ___________, 200_.

      Code: The Internal Revenue Code of 1986, as amended, and as it may be
further amended from time to time, any successor statutes thereto, and
applicable U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

      Collateral Allocation Group: Any of Collateral Allocation Group [1],
Collateral Allocation Group [2], Collateral Allocation Group [3], Collateral
Allocation Group [4], Collateral Allocation Group [5], Collateral Allocation
Group [6] or Collateral Allocation Group [7].

      [Collateral Allocation Group [1]: The respective Applicable Fractions of
the Mortgage Loans in Loan Group [1] so identified on the Mortgage Loan
Schedule.]

      [Collateral Allocation Group [1] Mortgage Loans: The Mortgage Loans or
Applicable Fractions thereof in Collateral Allocation Group [1].]

      [Collateral Allocation Group [2]: The respective Applicable Fractions of
the Mortgage Loans in Loan Group [2] so identified on the Mortgage Loan
Schedule.]

      [Collateral Allocation Group [2] Mortgage Loans: The Mortgage Loans or
Applicable Fractions thereof in Collateral Allocation Group [2].]

      Collateral Allocation Group Percentage: As to any Collateral Allocation
Group and any Distribution Date, the fraction, expressed as a percentage, the
numerator of which is the aggregate Stated Principal Balance of the Applicable
Fractions of all the Mortgage Loans in that Collateral Allocation Group as of
the related Due Date, and the denominator of which is the aggregate Stated
Principal Balance of all of the Mortgage Loans as of that Due Date.

      Collateral Allocation Group Principal Balance: As to any Distribution Date
and Collateral Allocation Group, the sum of, with respect to each Mortgage Loan
related to that Collateral Allocation Group, the product of (x) the Stated
Principal Balance of that Mortgage Loan as of the Due Date in the month
preceding the month of the Distribution Date (after giving effect to prepayments
received in the Prepayment Period related to such prior Due Date) and (y) the
Applicable Fraction for that Mortgage Loan.

      Commission: The U.S. Securities and Exchange Commission.

      Compensating Interest Payment: As to any Distribution Date and any
Servicer, an amount equal to the lesser of (i) the Prepayment Interest Shortfall
on the Mortgage Loans serviced by such Servicer with respect to such
Distribution Date and (ii) the portion of the applicable Servicing Fee that the
related Servicer is required to remit to the Trust as compensation therefor in
accordance with the terms of the related Purchase and Servicing Agreement.

                                       11
<PAGE>

      Component: As specified in the Preliminary Statement.

      Component Balance: With respect to any Component and any Distribution
Date, the Initial Component Balance thereof on the Closing Date, (A) plus any
Subsequent Recoveries added to the Component Balance of such Component pursuant
to Section 5.02, (B) minus the sum of all amounts applied in reduction of the
principal balance of such Component and Realized Losses allocated thereto on
previous Distribution Dates.

      Component Certificates: As specified in the Preliminary Statement.

      Component Notional Amount: Not applicable.

      Consent: A document executed by the Cooperative Corporation (i) consenting
to the sale of the Cooperative Unit to the Mortgagor and (ii) certifying that
all maintenance charges relating to the Cooperative Unit have been paid.

      Controlling Person: With respect to any Person, any other Person who
"controls" such Person within the meaning of the Securities Act.

      Cooperative Corporation: The entity that holds title (fee or an acceptable
leasehold estate) to the real property and improvements constituting the
Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

      Cooperative Loan: A Mortgage Loan secured by Cooperative Shares and a
Proprietary Lease, if any.

      Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, that includes the allocation of individual dwelling
units to the holders of the shares of the Cooperative Corporation.

      Cooperative Shares: Shares issued by a Cooperative Corporation.

      Cooperative Unit: With respect to any Cooperative Loan, a specific unit in
a Cooperative Property.

      Corporate Trust Office: With respect to the Trustee, the designated office
of the Trustee in the State of Illinois at which at any particular time its
corporate trust business with respect to this Agreement is administered, which
office at the date of the execution of this Agreement is located at [135 South
LaSalle Street, Suite 1625, Chicago, Illinois 60603, Attn: Global Securities and
Trust Services MSM 200_-_], and which is the address to which notices to and
correspondence with the Trustee should be directed, or at such other address as
the Trustee may designate from time to time by notice to the Certificateholders,
the Depositor, the Master Servicer and the Securities Administrator or the
principal corporate trust office of any successor Trustee. With respect to the
Certificate Registrar and presentment of Certificates for registration of
transfer, exchange or final payment, [Wells Fargo Bank, National Association,
Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479, Attention:
Corporate Trust, Morgan Stanley Mortgage Loan Trust 200_-_, and for all other
purposes, P.O. Box 98, Columbia,

                                       12
<PAGE>

Maryland 21046 (or for overnight deliveries, 9062 Old Annapolis Road, Columbia,
Maryland 21045), Attention: Corporate Trust, Morgan Stanley Mortgage Loan Trust
200_-_].

      Cross-Over Situation: For any Distribution Date and for each Loan Group
(after taking into account principal distributions on such Distribution Date)
with respect to the Class A and Class B Interests, the Class A and Class B
Interests corresponding to any Loan Group are in the aggregate less than 1% of
the Subordinate Component Balance of the Loan Group to which they correspond.

      Custodial Account: Each custodial account (other than an Escrow Account)
established and maintained by a Servicer pursuant to a Purchase and Servicing
Agreement.

      Custodial Agreement: The Custodial Agreements, listed in Exhibit F hereof,
as each such agreement may be amended or supplemented from time to time as
permitted hereunder.

      Custodian: A Person who is at anytime appointed by the Depositor as a
custodian of the Mortgage Documents and the Trustee Mortgage Files. The initial
Custodians are [LaSalle Bank National Association] and [JPMorgan Chase Bank,
National Association]. "Custodian" shall refer to each Custodian or all
Custodians, as the context requires.

      Custodian Certification: As defined in Section 2.01.

      Cut-off Date: ___________, 200_.

      Cut-off Date Pool Principal Balance: $[o].

      Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

      Debt Service Reduction: With respect to any Mortgage Loan, a reduction by
a court of competent jurisdiction in a proceeding under the Bankruptcy Code in
the Scheduled Payment for such Mortgage Loan which became final and
non-appealable, except such a reduction resulting from a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

      Deceased Holder: Not applicable.

      Defective Mortgage Loan: The meaning specified in Section 2.05(a).

      Deficient Valuation: With respect to any Mortgage Loan, a valuation of the
related Mortgaged Property by a court of competent jurisdiction in an amount
less than the then outstanding indebtedness under the Mortgage Loan, or any
reduction in the amount of principal to be paid in connection with any Scheduled
Payment that results in a permanent forgiveness of principal, which valuation or
reduction results from an order of such court which is final and non-appealable
in a proceeding under the Bankruptcy Code.

      Definitive Certificate: A Certificate of any Class issued in definitive,
fully registered, certificated form. As of the Closing Date the Classes of
Certificates being issued as "Definitive Certificates" are set forth in the
Preliminary Statement.

                                       13
<PAGE>

      Delay Certificates: As specified in the Preliminary Statement.

      Deleted Mortgage Loan: A Mortgage Loan that is repurchased, or replaced or
to be replaced with a Replacement Mortgage Loan.

      Delinquent: Any Mortgage Loan with respect to which the Scheduled Payment
due on a Due Date is not received.

      Depositor: Morgan Stanley Capital I Inc., a Delaware corporation having
its principal place of business in New York, or its successors in interest.

      Depository: Cede & Co., or any other organization registered as a
"clearing agency" pursuant to Section 17A of the Securities Exchange Act of
1934, as amended. The Depository shall initially be the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(a)(5) of the Uniform Commercial Code of
the State of New York.

      Determination Date: With respect to each Servicer, the "Determination
Date" set forth in the related Purchase and Servicing Agreement.

      Discount Mortgage Loan: Any Mortgage Loan or Applicable Fraction thereof
in Collateral Allocation Group [1] or Collateral Allocation Group [2], as
applicable, with a Net Mortgage Rate that is less than the Required Coupon for
that Loan Group.

      Disqualified Organization: A "disqualified organization" as defined in
Section 860E(e)(5) of the Code.

      Distribution Account: The separate Eligible Account created and maintained
by the Securities Administrator, on behalf of the Trustee, pursuant to Section
4.01. Funds in the Distribution Account (exclusive of any earnings on
investments made with funds deposited in the Distribution Account) shall be held
in trust for the Trustee and the Certificateholders for the uses and purposes
set forth in this Agreement.

      Distribution Account Deposit Date: With respect to each Servicer, not
later than 1:00 p.m., New York time, on 18th day of each calendar month after
the initial issuance of the Certificates or, if such 18th day is not a Business
Day, either the immediately preceding or following Business Day, as set forth in
the related assignment, assumption and recognition agreement, commencing in
___________ 200_.

      Distribution Date: The 25th day of each month or, if such 25th day is not
a Business Day, the next succeeding Business Day, commencing in ___________
200_.

      Due Date: With respect to any Distribution Date, the first day of the
month in which such Distribution Date occurs. With respect to any Mortgage Loan,
the date on which a Scheduled Payment is due under the related Mortgage Note as
indicated in the applicable Purchase and Servicing Agreement.

                                       14
<PAGE>

      Due Period: As to any Distribution Date, the period beginning on the
second day of the month preceding the month of such Distribution Date, and
ending on the first day of the month of such Distribution Date.

      EDGAR: The Commission's Electronic Data Gathering, Analysis and Retrieval
system.

      Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the debt obligations of such holding company) have the highest
short-term ratings of each Rating Agency at the time any amounts are held on
deposit therein, or (ii) an account or accounts in a depository institution or
trust company in which such accounts are insured by the FDIC or the SAIF (to the
limits established by the FDIC or the SAIF) and the uninsured deposits in which
accounts are otherwise secured such that, as evidenced by an Opinion of Counsel
delivered to the Trustee and to each Rating Agency, the Certificateholders have
a claim with respect to the funds in such account or a perfected first priority
security interest against any collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution or trust company in which
such account is maintained, or (iii) a trust account or accounts maintained with
the trust department of a federal or state chartered depository institution or
trust company, acting in its fiduciary capacity or (iv) any other account
acceptable to each Rating Agency, as evidenced by a signed writing delivered by
each Rating Agency. Eligible Accounts may bear interest, and may include, if
otherwise qualified under this definition, accounts maintained with the Trustee,
the Paying Agent, the Securities Administrator or the Master Servicer.

      Eligible Institution: An institution having the highest short-term debt
rating, and one of the two highest long-term debt ratings of the Rating Agencies
or the approval of the Rating Agencies.

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

      ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the requirements of an
Underwriter's Exemption.

      ERISA-Restricted Certificate: As specified in the Preliminary Statement.

      Escrow Account: With respect to each Mortgage Loan, as defined in Article
I of the related Purchase and Servicing Agreement.

      Estoppel Letter: A document executed by the Cooperative Corporation
certifying, with respect to a Cooperative Unit, (i) the appurtenant Proprietary
Lease will be in full force and effect as of the date of issuance thereof, (ii)
the related stock certificate was registered in the Mortgagor's name and the
Cooperative Corporation has not been notified of any lien upon, pledge of, levy
of execution on or disposition of such stock certificate, and (iii) the
Mortgagor is not in default under the appurtenant Proprietary Lease and all
charges due the Cooperative Corporation have been paid.

                                       15
<PAGE>

      Event of Default: Any one of the conditions or circumstances enumerated in
Section 6.14.

      Excess Loss: The amount of any (i) Fraud Loss realized after the Fraud
Loss Coverage Termination Date, (ii) Special Hazard Loss realized after the
Special Hazard Coverage Termination Date or (iii) Bankruptcy Loss realized after
the Bankruptcy Coverage Termination Date.

      Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

      Exchange Act Reports: Any reports on Form 10-D, Form 8-K and Form 10-K
required to be filed with respect to the Trust Fund under the Exchange Act.

      Fannie Mae: The entity formerly known as the Federal National Mortgage
Association, a federally chartered and privately owned corporation organized and
existing under the Federal National Mortgage Association Charter Act, or any
successor thereto.

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

      FHLMC: The Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States created and existing under Title III of the
Emergency Home Finance Act of 1970, as amended, or any successor thereto.

      Final Custodian Certification: As defined in Section 2.02.

      Fiscal Agent: Not applicable.

      Form 8-K Disclosure: As defined in Section 12.03 hereof.

      Fraud Loan: A Liquidated Mortgage Loan as to which a Fraud Loss has
occurred, as reported by the related Servicer to the Master Servicer.

      Fraud Loss Coverage Amount: As of the Closing Date, $[o], subject to
reduction from time to time, by the amount of Fraud Losses allocated to the
Certificates. In addition, on each anniversary of the Cut-off Date, the Fraud
Loss Coverage Amount for the Mortgage Loans will be reduced as follows: (a) on
the first, second, third and fourth anniversaries of the Cut-off Date, to an
amount equal to the lesser of (i) [2]%, for the first anniversaries, and [1]%,
for the second, third and fourth anniversaries, of the then current aggregate
Stated Principal Balance of the Mortgage Loans on such anniversary and (ii) the
excess of the Fraud Loss Coverage Amount as of the preceding anniversary of the
Cut-off Date over the cumulative amount of Fraud Losses allocated to the
Certificates since such preceding anniversary; and (b) on the fifth anniversary
of the Cut-off Date, to zero.

      Fraud Loss Coverage Termination Date: The point in time at which the Fraud
Loss Coverage Amount is reduced to zero.

                                       16
<PAGE>

      Fraud Losses: Realized Losses on Mortgage Loans as to which a loss is
sustained by reason of a default arising from fraud, dishonesty or
misrepresentation in connection with the related Mortgage Loan, including a loss
by reason of the denial of coverage under any related Primary Mortgage Insurance
Policy because of such fraud, dishonesty or misrepresentation.

      Global Securities: The global certificates representing the Book-Entry
Certificates.

      Group [1] Certificates: As specified in the Preliminary Statement.

      Group [1] Mortgage Loans: The Mortgage Loans in Loan Group [1].

      Group [1] Senior Certificates: As specified in the Preliminary Statement.

      Group [2] Certificates: As specified in the Preliminary Statement.

      Group [2] Mortgage Loans: The Mortgage Loans in Loan Group [2].

      Group [2] Senior Certificates: As specified in the Preliminary Statement.

      Holder: The registered owner of any Certificate as recorded on the books
of the Certificate Registrar except that, solely for the purposes of taking any
action or giving any consent pursuant to this Agreement, any Certificate
registered in the name of the Depositor, the Trustee, the Master Servicer, the
Securities Administrator and any Servicer, or any Affiliate thereof shall be
deemed not to be outstanding in determining whether the requisite percentage
necessary to effect any such consent has been obtained, except that, in
determining whether the Trustee or the Securities Administrator shall be
protected in relying upon any such consent, only Certificates that a Responsible
Officer of the Trustee or the Securities Administrator, respectively, knows to
be so owned shall be disregarded. The Trustee or the Securities Administrator
may request and conclusively rely on certifications by the Depositor, the Master
Servicer, the Securities Administrator or any Servicer in determining whether
any Certificates are registered to an Affiliate of the Depositor, the Master
Servicer, the Securities Administrator or any Servicer.

      HUD: The United States Department of Housing and Urban Development, or any
successor thereto.

      Indemnifying Party: As specified in Section 12.08 hereof.

      Independent: When used with respect to any Accountants, a Person who is
"independent" within the meaning of Rule 2-01(b) of the Securities and Exchange
Commission's Regulation S-X. When used with respect to any other Person, a
Person who (a) is in fact independent of another specified Person and any
Affiliate of such other Person, (b) does not have any material direct financial
interest in such other Person or any Affiliate of such other Person, and (c) is
not connected with such other Person or any Affiliate of such other Person as an
officer, employee, promoter, underwriter, trustee, partner, director or Person
performing similar functions.

      Initial Bankruptcy Coverage Amount: $[o].

                                       17
<PAGE>

      Initial Component Balance: As specified in the Preliminary Statement.

      Initial Custodian Certification: As defined in Section 2.02.

      Initial Optional Purchase Date: The first Distribution Date following the
date on which the aggregate Stated Principal Balance of the Mortgage Loans is
equal to or less than 1% of the aggregate Stated Principal Balance thereof as of
the Cut-off Date.

      Insurance Policy: With respect to any Mortgage Loan, any insurance policy,
including all names and endorsements thereto in effect, including any
replacement policy or policies for any Insurance Policies.

      Insurance Proceeds: Proceeds paid by any Insurance Policy (excluding
proceeds required to be applied to the restoration and repair of the related
Mortgaged Property or released to the Mortgagor), in each case other than any
amount included in such Insurance Proceeds in respect of Insured Expenses and
the proceeds from any Limited Purpose Surety Bond.

      Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.

      Insured Payment: Not applicable.

      Interest Accrual Period: With respect to each Class of Delay Certificates,
its corresponding REMIC 2 REMIC Regular Interest and any Distribution Date, the
calendar month prior to the month of such Distribution Date. With respect to any
Class of Non-Delay Certificates, its corresponding REMIC 2 REMIC Regular
Interest and any Distribution Date, the one month period commencing on the 25th
day of the month preceding the month in which such Distribution Date occurs and
ending on the 24th day of the month in which such Distribution Date occurs.

      Interest Determination Date: With respect to any Interest Accrual Period
for any Class of LIBOR Certificates, the second Business Day prior to the first
day of such Interest Accrual Period.

      Interest Distribution Amount: Not applicable.

      Interest Transfer Amount: For any Distribution Date and for any
Undercollateralized Group, an amount equal to one month's interest on the
applicable Principal Transfer Amount at the weighted average Pass-Through Rate
of the applicable Undercollateralized Group, plus any interest accrued on such
Undercollateralized Group remaining unpaid from prior Distribution Dates.

      Last Scheduled Distribution Date: The Distribution Date in ___________
20__.

      Latest Possible Maturity Date: The Distribution Date in ___________ 20__.

      LIBOR: The London interbank offered rate for one-month United States
dollar deposits calculated in the manner described in Section 5.09.

                                       18
<PAGE>

      LIBOR Certificates: As specified in the Preliminary Statement.

      LIBOR Business Day: Any day on which banks in London, England and The City
of New York are open and conducting transactions in foreign currency and
exchange.

      Limited Purpose Surety Bond: Collectively, Ambac Assurance Corporation
Surety Bond No. AB0039BE and any other Limited Purpose Surety Bond securing an
Additional Collateral Mortgage Loan.

      Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated in the
calendar month preceding the month of such Distribution Date and as to which the
related Servicer has certified (in accordance with its Purchase and Servicing
Agreement) that it has received all amounts it expects to receive in connection
with the liquidation of such Mortgage Loan including the final disposition of an
REO Property.

      Liquidation Proceeds: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of defaulted Mortgage Loans,
whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property and any other proceeds received in connection with an REO Property.

      Living Holders: Not applicable.

      Loan Group: Any of Loan Group [1] or Loan Group [2], as applicable.

      Loan Group [1]: All Mortgage Loans identified as Loan Group [1] Mortgage
Loans on the Mortgage Loan Schedule.

      Loan Group [2]: All Mortgage Loans identified as Loan Group [2] Mortgage
Loans on the Mortgage Loan Schedule.

      Loan Group Percentage: As to any Loan Group and any Distribution Date, the
fraction, expressed as a percentage, the numerator of which is the aggregate
Stated Principal Balance of all the Mortgage Loans in that Loan Group as of the
related Due Date, and the denominator of which is the aggregate Stated Principal
Balance of all of the Mortgage Loans as of that Due Date.

      Loan Group Principal Balance: As to any Distribution Date and Loan Group,
the aggregate Stated Principal Balance of the Mortgage Loans in that Loan Group
outstanding on the Due Date in the month preceding the month of the Distribution
Date (after giving effect to prepayments received in the Prepayment Period
related to such prior Due Date).

      Loan-To-Value Ratio: With respect to any Mortgage Loan and as to any date
of determination, the fraction (expressed as a percentage) the numerator of
which is the principal balance of the related Mortgage Loan at such date of
determination and the denominator of which is the Appraised Value of the related
Mortgaged Property.

                                       19
<PAGE>

      LPMI Mortgage Loan: Certain Mortgage Loans as to which the lender (rather
than the borrower) acquires the Primary Mortgage Insurance Policy and charges
the related borrower an interest premium.

      Master REMIC: As described in the Preliminary Statement.

      Master Servicer: [Wells Fargo Bank, National Association], a national
banking association organized under the laws of the United States in its
capacity as Master Servicer and any Person succeeding as Master Servicer
hereunder or any successor in interest, or if any successor master servicer
shall be appointed as herein provided, then such successor master servicer.

      Master Servicer Compensation: With respect to any Master Servicer that is
a successor to [Wells Fargo Bank, National Association] as Master Servicer, the
portion of the earnings on the funds on deposit in the Distribution Account
payable on each Distribution Date pursuant to Section 4.02(b)(ii) hereof agreed
to by and between such successor Master Servicer and the successor securities
administrator; provided, that the sum of such Master Servicer Compensation and
the Securities Administrator Compensation payable on each Distribution Date
shall not exceed the total earnings on funds in the Distribution Account payable
pursuant to Section 4.02(b)(ii) hereof earned since the prior Distribution Date.

      Memorandum: The private placement memorandum dated ___________, 200_
relating to the Private Certificates.

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

      MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the MERS(R)
System.

      MERS(R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

      MIN: The mortgage identification number for any MERS Mortgage Loan.

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

      Moody's: Moody's Investors Service, Inc., or any successor thereto. If
Moody's is designated as a Rating Agency in the Preliminary Statement, for
purposes of Section 11.07 the address for notices to Moody's shall be Moody's
Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:
Residential Pass-Through Monitoring, or such other address as Moody's may
hereafter furnish to the Depositor or the Master Servicer.

      Mortgage: A mortgage, deed of trust or other instrument encumbering a fee
simple interest in real property securing a Mortgage Note, together with
improvements thereto.

                                       20
<PAGE>

      Mortgage Documents: With respect to each Mortgage Loan, the mortgage
documents required to be delivered to the Custodian pursuant to each Custodial
Agreement.

      Mortgage Loan: A Mortgage and the related notes or other evidences of
indebtedness secured by each such Mortgage conveyed, transferred, sold, assigned
to or deposited with the Trustee pursuant to Section 2.01 (including any REO
Property), including without limitation, each Mortgage Loan listed on the
Mortgage Loan Schedule, as amended from time to time.

      Mortgage Loan Schedule: The schedule attached hereto as Schedule A, which
shall identify each Mortgage Loan, as such schedule may be amended by the
Depositor or a Servicer from time to time to reflect the addition of Replacement
Mortgage Loans to, or the deletion of Deleted Mortgage Loans from, the Trust
Fund. Such schedule shall, among other things (i) designate the Servicer
servicing such Mortgage Loan and the applicable Servicing Fee Rate; (ii)
identify the designated Loan Group in which such Mortgage Loan is included,
(iii) identify any LPMI Mortgage Loan and designate the rate at which the
premium for such insurance is calculated, (iv) separately identify the
Additional Collateral Mortgage Loans, (v) identify the Applicable Fraction and
related Collateral Allocation Group or Collateral Allocation Groups for such
Mortgage Loan.

      Mortgage Note: The original executed note or other evidence of the
indebtedness of a Mortgagor secured by a Mortgage under a Mortgage Loan.

      Mortgaged Property: The underlying property, including any Additional
Collateral, securing a Mortgage Loan which, with respect to a Cooperative Loan,
is the related Cooperative Shares and Proprietary Lease.

      Mortgage Rate: As to any Mortgage Loan, the annual rate of interest borne
by the related Mortgage Notes.

      Mortgagor: The obligor on a Mortgage Note.

      MSMCI Mortgage Loan: A Mortgage Loan sold by the Seller to the Depositor
pursuant to the MSMCI Purchase Agreement.

      MSMCI Purchase Agreement: The Mortgage Loan Purchase Agreement listed in
Exhibit E hereto between the Seller and the Depositor.

      Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan or
any other disposition of related Mortgaged Property, the related Liquidation
Proceeds net of Advances, Servicer Advances and Servicing Fees and any other
accrued and unpaid servicing fees received and retained in connection with the
liquidation of such Mortgage Loan or Mortgaged Property.

      Net Mortgage Rate: With respect to any Mortgage Loan and any Distribution
Date, the related Mortgage Rate as of the Due Date in the month preceding the
month of such Distribution Date reduced by the Aggregate Expense Rate for such
Mortgage Loan.

      Net Prepayment Interest Shortfalls: As to any Distribution Date and
Collateral Allocation Group, the amount by which the aggregate of Prepayment
Interest Shortfalls for the

                                       21
<PAGE>

Mortgage Loans in such Collateral Allocation Group exceeds the Compensating
Interest Payments for the Mortgage Loans or Applicable Fractions thereof in such
Collateral Allocation Group (and any amounts paid by the Master Servicer in
respect of such shortfalls pursuant to Section 5.06) and that Distribution Date,
in each case, based upon the Applicable Fractions thereof that are part of such
Collateral Allocation Group.

      Non-A-P Formula Principal Amount: As to any Distribution Date and
Collateral Allocation Group, the sum of (i) the sum of (x) the applicable
Non-A-P Percentage of (a) the principal portion of each Scheduled Payment
(without giving effect, prior to the Bankruptcy Coverage Termination Date, to
any reductions thereof caused by any Debt Service Reductions or Deficient
Valuations) due on the Applicable Fraction of each Mortgage Loan in the related
Collateral Allocation Group on the related Due Date, (b) the Stated Principal
Balance of the Applicable Fraction of each Mortgage Loan in the related
Collateral Allocation Group that was repurchased by the Seller or an Originator
or purchased by the Master Servicer pursuant to this Agreement as of such
Distribution Date, (c) the Substitution Adjustment Amount in connection with any
Deleted Mortgage Loan in such Collateral Allocation Group received with respect
to such Distribution Date, (d) any Insurance Proceeds or Liquidation Proceeds
allocable to recoveries of principal of the Applicable Fraction of Mortgage
Loans in the related Collateral Allocation Group that are not yet Liquidated
Mortgage Loans received during the calendar month preceding the month of such
Distribution Date, (e) with respect to the Applicable Fraction of each Mortgage
Loan in the related Collateral Allocation Group that became a Liquidated
Mortgage Loan during the calendar month preceding the month of such Distribution
Date, the amount of Liquidation Proceeds allocable to principal received with
respect to such Mortgage Loan allocable to that Collateral Allocation Group
during the calendar month preceding the month of such Distribution Date with
respect to such Mortgage Loan and, if such Liquidated Mortgage Loan is an
Additional Collateral Mortgage Loan, the principal portion of the proceeds of
any Additional Collateral allocated to the Collateral Allocation Group, and (f)
the Applicable Fraction of all Principal Prepayments with respect to the
Mortgage Loans in the related Collateral Allocation Group received during the
related Prepayment Period, and (ii) (A) any Subsequent Recoveries for such Loan
Group received during the calendar month preceding the month of such
Distribution Date, or (B) with respect to Subsequent Recoveries attributable to
the Applicable Fraction of a Discount Mortgage Loan in the related Collateral
Allocation Group which incurred (1) an Excess Loss or (2) a Realized Loss after
the Senior Credit Support Depletion Date, the Non-A-P Percentage of the
Applicable Fraction of any Subsequent Recoveries on the Mortgage Loans related
to such Collateral Allocation Group received during the calendar month preceding
the month of such Distribution Date.

      Non-A-P Percentage: As to the Applicable Fraction any Discount Mortgage
Loan in Collateral Allocation Group [1] or Collateral Allocation Group [2], a
fraction (expressed as a percentage) the numerator of which is the Net Mortgage
Rate of such Discount Mortgage Loan and the denominator of which is the Required
Coupon for such Collateral Allocation Group. As to any Non-Discount Mortgage in
Collateral Allocation Group [1] or Collateral Allocation Group [2], 100%.

      Non-A-P Pool Balance: With respect to Collateral Allocation Group [1] and
Collateral Allocation Group [2] and any Due Date is equal to the excess, if any,
of (x) the Applicable Fraction of the aggregate Stated Principal Balance of all
Mortgage Loans in the related Collateral

                                       22
<PAGE>

Allocation Group over (y) the sum of the product of the A-P Percentage of the
Applicable Fraction of the Stated Principal Balance of each Discount Mortgage
Loan in that Collateral Allocation Group.

      Non-Book-Entry Certificate: Any Certificate other than a Book-Entry
Certificate.

      Non-Delay Certificates: As specified in the Preliminary Statement.

      Non-Discount Mortgage Loan: Any Mortgage Loan in Collateral Allocation
Group [1] or Collateral Allocation Group [2] with a Net Mortgage Rate that is
greater than or equal to the Required Coupon for that Collateral Allocation
Group.

      Non-permitted Foreign Holder: As defined in Section 3.03(f).

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

      Nonrecoverable Advance: Any portion of an Advance or Servicer Advance
previously made or proposed to be made by the Master Servicer and/or a Servicer
(as certified in an Officer's Certificate of such Servicer), which in the good
faith judgment of such party, shall not be ultimately recoverable by such party
from the related Mortgagor, related Liquidation Proceeds or otherwise.

      Notional Amount: With respect to any Distribution Date and the Class
[1-A-X] Certificates, an amount equal to the product of (i) a fraction, the
numerator of which is the excess of (a) weighted average of the Net Mortgage
Rates for the Non-Discount Mortgage Loans in Collateral Allocation Group [1] as
of the Due Date in the preceding calendar month (after giving effect to
prepayments received in the related Prepayment Period) over (b) [o] %, and the
denominator of which is [o]% and (ii) the aggregate of the Stated Principal
Balances of the Non-Discount Mortgage Loans in Collateral Allocation Group [1]
as of the Due Date (after giving effect to prepayments received in the related
Prepayment Period).

      With respect to any Distribution Date and the Class [2-A-X] Certificates,
an amount equal to the product of (i) a fraction, the numerator of which is the
excess of (a) weighted average of the Net Mortgage Rates for each Mortgage Loan
in Loan Group [2] with a Net Mortgage Rate greater than [o]% as of the Due Date
in the preceding calendar month (after giving effect to prepayments received in
the related Prepayment Period) over (b) [o]%, and the denominator of which is
[o]% and (ii) the aggregate of the Stated Principal Balances of each Mortgage
Loan in Loan Group [4] with a Net Mortgage Rate greater than [o]% as of that Due
Date (after giving effect to prepayments received in the related Prepayment
Period).

      Notional Amount Certificates: As specified in the Preliminary Statement.

      Offered Certificates: As specified in the Preliminary Statement.

      Offering Document: The Prospectus or the Memorandum, as applicable.

                                       23
<PAGE>

      Officer's Certificate: A certificate signed by two Authorized Officers of
the Depositor or the Chairman of the Board, any Vice Chairman, the President,
any Vice President or any Assistant Vice President of the Master Servicer or the
Securities Administrator or in the case of any other Person, signed by an
authorized officer of such Person, and in each case delivered to the Trustee or
the Securities Administrator, as applicable or in the case of any other Person,
signed by an authorized officer of that Person.

      Officer's Certificate of a Servicer: A certificate (i) signed by the
Chairman of the Board, the Vice Chairman of the Board, the President, a Managing
Director, a Vice President (however denominated), an Assistant Vice President,
the Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant
Secretaries of a Servicer, or (ii) if provided for herein, signed by a Servicing
Officer, as the case may be, and delivered to the Trustee, the Securities
Administrator or the Master Servicer, as required hereby.

      Opinion of Counsel: A written opinion of counsel, reasonably acceptable in
form and substance to the Trustee, the Securities Administrator or the Master
Servicer, as required hereby, and who may be in-house or outside counsel to the
Depositor, the Master Servicer, the Securities Administrator or the Trustee but
which must be Independent outside counsel with respect to any such opinion of
counsel concerning the transfer of any Residual Certificate or concerning
certain matters with respect to ERISA, or the taxation, or the federal income
tax status, of each REMIC.

      Original Applicable Credit Support Percentage: With respect to each of the
following Classes of Subordinated Certificates, the corresponding percentage
described below, as of the Closing Date:

                Class [M-1]......  [o]%
                Class [M-2]......  [o]%
                Class [M-3]......  [o]%
                Class [M-4]......  [o]%
                Class [M-5]......  [o]%
                Class [M-6]......  [o]%
                Class [B-1]......  [o]%
                Class [B-2]......  [o]%
                Class [B-3]......  [o]%

      Original Subordinate Principal Balance: On or prior to a Senior
Termination Date, the Subordinated Percentage for a Collateral Allocation Group
of the aggregate of the Stated Principal Balances of the Mortgage Loans or
Applicable Fractions thereof in such Collateral Allocation Group, in each case
as of the Cut-off Date; or if such date is after a Senior Termination Date, the
aggregate of the Class Principal Balances of the Subordinated Certificates as of
the Closing Date.

      [Originator: Any one of [o], as applicable.]

      Overcollateralized Group: As defined in Section 5.08(b) hereof.

                                       24
<PAGE>

      Pass-Through Rate: For any interest bearing Class of Certificates or
Component, the per annum rate set forth or calculated in the manner described in
the Preliminary Statement.

      Paying Agent: Any paying agent appointed pursuant to Section 3.08. The
initial Paying Agent shall be the Securities Administrator under this Agreement.

      PCOAB: The Public Company Accounting Oversight Board.

      Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face thereof or equal to the
percentage obtained by dividing the initial principal balance or notional
amount, as applicable, of such Certificate by the aggregate of the Class
Principal Balance or Notional Amount, as applicable, of all Certificates of the
same Class.

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

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

            (ii) general obligations of or obligations guaranteed by any state
      of the United States or the District of Columbia receiving the highest
      long-term debt rating of each Rating Agency, or such lower rating as shall
      not result in the downgrading or withdrawal of the ratings then assigned
      to the Certificates by the Rating Agencies, as evidenced by a signed
      writing delivered by each Rating Agency;

            (iii) commercial or finance company paper which is then receiving
      the highest commercial or finance company paper rating of each Rating
      Agency rating such paper, or such lower rating as shall not result in the
      downgrading or withdrawal of the ratings then assigned to the Certificates
      by the Rating Agencies, as evidenced by a signed writing delivered by each
      Rating Agency;

            (iv) certificates of deposit, demand or time deposits, or bankers'
      acceptances issued by any depository institution or trust company
      incorporated under the laws of the United States or of any state thereof
      and subject to supervision and examination by federal and/or state banking
      authorities, provided that the commercial paper and/or long-term unsecured
      debt obligations of such depository institution or trust company (or in
      the case of the principal depository institution in a holding company
      system, the commercial paper or long-term unsecured debt obligations of
      such holding company, but only if Moody's is not the applicable Rating
      Agency) are then rated one of the two highest long-term and the highest
      short-term ratings of each Rating Agency for such securities, or such
      lower ratings as shall not result in the downgrading or withdrawal of the
      ratings then assigned to the Certificates by the Rating Agencies, as
      evidenced by a signed writing delivered by each Rating Agency;

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

                                       25
<PAGE>

            (vi) guaranteed reinvestment agreements issued by any bank,
      insurance company or other corporation acceptable to the Rating Agencies
      at the time of the issuance of such agreements, as evidenced by a signed
      writing delivered by each Rating Agency;

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

            (viii) securities (other than stripped bonds, stripped coupons or
      instruments sold at a purchase price in excess of 115% of the face amount
      thereof) bearing interest or sold at a discount issued by any corporation
      incorporated under the laws of the United States or any state thereof
      which, at the time of such investment, have one of the two highest ratings
      of each Rating Agency (except if the Rating Agency is Moody's, such rating
      shall be the highest commercial paper rating of Moody's for any such
      series), or such lower rating as shall not result in the downgrading or
      withdrawal of the ratings then assigned to the Certificates by the Rating
      Agencies, as evidenced by a signed writing delivered by each Rating
      Agency;

            (ix) interests in any money market fund which at the date of
      acquisition of the interests in such fund and throughout the time such
      interests are held in such fund has the highest applicable rating by each
      Rating Agency rating such fund or such lower rating as shall not result in
      a change in the rating then assigned to the Certificates by each Rating
      Agency, as evidenced by a signed writing delivered by each Rating Agency,
      including funds for which the Trustee, the Master Servicer, the Securities
      Administrator or any of its Affiliates is investment manager or adviser;

            (x) short-term investment funds sponsored by any trust company or
      national banking association incorporated under the laws of the United
      States or any state thereof which on the date of acquisition has been
      rated by each applicable Rating Agency in their respective highest
      applicable rating category or such lower rating as shall not result in a
      change in the rating then specified stated maturity and bearing interest
      or sold at a discount acceptable to each Rating Agency as shall not result
      in the downgrading or withdrawal of the ratings then assigned to the
      Certificates by the Rating Agencies, as evidenced by a signed writing
      delivered by each Rating Agency; and

            (xi) such other investments having a specified stated maturity and
      bearing interest or sold at a discount acceptable to the Rating Agencies
      as shall not result in the downgrading or withdrawal of the ratings then
      assigned to the Certificates by the Rating Agencies, as evidenced by a
      signed writing delivered by each Rating Agency;

provided, that no such instrument shall be a Permitted Investment if (i) such
instrument evidences the right to receive interest only payments with respect to
the obligations underlying such instrument or (ii) such instrument would require
the Depositor to register as an investment company under the Investment Company
Act of 1940, as amended.

                                       26
<PAGE>

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

      Plan Asset Regulations: The Department of Labor regulations set forth in
29 C.F.R. 2510.3-101.

      Planned Balance: With respect to any group of Planned Principal Classes or
Components in the aggregate and any Distribution Date appearing in Schedule B
hereto, the Aggregate Planned Balance for such group and Distribution Date. With
respect to any other Planned Principal Class or Component and any Distribution
Date appearing in Schedule B hereto, the applicable amount appearing opposite
such Distribution Date for such Class or Component.

      Planned Principal Classes: As specified in the Preliminary Statement.

      Prepayment Interest Shortfall: With respect to each Mortgage Loan, the
amount of the shortfall in interest payable on such Mortgage Loan that occurs as
a result of the prepayment by the related Mortgagor of such Mortgage Loan
calculated in accordance with formula set forth in the related Purchase and
Servicing Agreement.

      Prepayment Penalty: As to a Mortgage Loan, any penalty payable by a
Mortgagor in connection with certain partial prepayments and all prepayments in
full made within the related Prepayment Penalty Period, the Prepayment Penalties
with respect to each applicable Mortgage Loan so held by the Trust Fund being
identified in the Prepayment Penalty Schedule.

      Prepayment Penalty Period: As to any Mortgage Loan, the period of time
during which a Prepayment Penalty may be imposed.

      Prepayment Penalty Schedule: As of any date, the list of Prepayment
Penalties included in the Trust Fund on that date (including the Prepayment
Penalty summary attached thereto). The Prepayment Penalty Schedule shall set
forth the following information with respect to each Prepayment Penalty:

      o     the Mortgage Loan account number;

      o     a code indicating the type of Prepayment Penalty;

      o     the state of origination in which the related Mortgage Property is
            located;

      o     the first date on which a monthly payment is or was due under the
            related Mortgage Note;

      o     the term of the Prepayment Penalty;

      o     the original principal amount of the related Mortgage Loan; and

      o     the Cut-off Date Principal Balance of the related Mortgage Loan.

                                       27
<PAGE>

      The Prepayment Penalty Schedule shall be amended from time to time by the
Seller in accordance with this Agreement.

      Prepayment Period: With respect to any Mortgage Loan and any Distribution
Date, the calendar month preceding that Distribution Date.

      Prepayment Shift Percentage: Not applicable

      Primary Mortgage Insurance Policy: Each policy of primary mortgage
guaranty insurance or any replacement policy therefor with respect to any
Mortgage Loan.

      Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment.

      Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

      Principal Reductions: For each Collateral Allocation Group, the sum of the
Non-A-P Formula Principal Distribution Amount and the Non-A-P Percentage of any
Realized Losses allocated to such Collateral Allocation Group.

      Principal Relocation Payment: A payment from any Collateral Allocation
Group to a Subsidiary REMIC Regular Interest other than a Regular Interest
corresponding to that Collateral Allocation Group as provided in the Preliminary
Statement. Principal Relocation Payments shall be made of principal allocations
comprising the Non-A-P Formula Principal Distribution Amount from a Collateral
Allocation Group and shall include a proportionate allocation of Realized Losses
from the Mortgage Loans or Applicable Fractions thereof related to such
Collateral Allocation Group.

      Principal Transfer Amount: For any Distribution Date and for any
Undercollateralized Group, the excess, if any, of the aggregate Class Principal
Balance of such Undercollateralized Group immediately prior to such Distribution
Date, over the aggregate Stated Principal Balance of the related Collateral
Allocation Group immediately prior to such Distribution Date.

      Priority Amount: Not applicable.

      Priority Percentage: Not applicable.

      Private Certificate: As specified in the Preliminary Statement.

      Pro Rata Share: As to any Distribution Date and the Subordinated Principal
Distribution Amount of a Class of Subordinated Certificates, the portion of the
related Subordinated Principal Distribution Amount allocable to such Class,
equal to the product of the related Subordinated Principal Distribution Amount
on such Distribution Date and a fraction, the numerator of which is the related
Class Principal Balance thereof and the denominator of which is the aggregate of
the Class Principal Balances of the Subordinated Certificates.

                                       28
<PAGE>

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

      Proprietary Lease: With respect to any Cooperative Property, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Cooperative Shares.

      Prospectus: The prospectus supplement dated ___________, 200_, together
with the accompanying prospectus dated ___________, 200_, relating to the
Certificates.

      Purchase and Servicing Agreements: Collectively, the mortgage loan
purchase and servicing agreements, each as amended by the related
Acknowledgement, listed in Exhibit E hereto, as each such agreement may be
amended or supplemented from time to time as permitted hereunder.

      Purchase Date: As defined in Section 7.01(c).

      Purchase Price: With respect to any Mortgage Loan required or permitted to
be purchased by the Seller or Depositor pursuant to this Agreement, or by the
related Originator or Servicer pursuant to the related Purchase and Servicing
Agreement, an amount equal to the sum of (i) 100% of the unpaid principal
balance of the Mortgage Loan on the date of such purchase and (ii) accrued
interest thereon at the applicable Net Mortgage Rate from the date through which
interest was last paid by the Mortgagor to the Due Date in the month in which
the Purchase Price is to be distributed to Certificateholders, or such other
amount as may be specified in the related Purchase and Servicing Agreement and
(iii) costs and damages incurred by the Trust Fund in connection with a
repurchase pursuant to Section 2.05 hereof that arises out of a violation of any
predatory or abusive lending law with respect to the related Mortgage Loan.

      Rating Agency: Each of the Rating Agencies specified in the Preliminary
Statement. If any such organization or a successor is no longer in existence,
"Rating Agency" shall be such nationally recognized statistical rating
organization, or other comparable Person, as is designated by the Depositor,
notice of which designation shall be given to the Trustee. References herein to
a given rating category of a Rating Agency shall mean such rating category
without giving effect to any modifiers.

      Realized Loss: With respect to each Liquidated Mortgage Loan, an amount
(not less than zero or more than the Stated Principal Balance of the related
Mortgage Loan) as of the date of such liquidation, equal to (i) the Stated
Principal Balance of the Liquidated Mortgage Loan as of the date of such
liquidation, plus (ii) interest at the Net Mortgage Rate from the Due Date as to
which interest was last paid or advanced (and not reimbursed) to
Certificateholders up to the Due Date in the month in which Liquidation Proceeds
are required to be distributed on the Stated Principal Balance of such
Liquidated Mortgage Loan from time to time, minus (iii) the Liquidation
Proceeds, if any, received during the month in which such liquidation occurred,
to the extent applied as recoveries of interest at the Net Mortgage Rate and to
principal of the Liquidated Mortgage Loan. With respect to each Mortgage Loan
which has become the subject of a Deficient Valuation, if the principal amount
due under the related Mortgage Note has been reduced, the difference between the
principal balance of the Mortgage Loan outstanding immediately prior to such
Deficient Valuation and the principal balance of the Mortgage Loan as reduced by
the Deficient Valuation. With respect to each Mortgage Loan which has become the
subject of a Debt Service Reduction and any Distribution Date, the amount, if
any, by which the principal portion of the related Scheduled Payment has been
reduced.

                                       29
<PAGE>

To the extent the Master Servicer or a Servicer receives Subsequent Recoveries
with respect to any Mortgage Loan, the amount of the Realized Loss with respect
to that Mortgage Loan will be reduced by such Subsequent Recoveries.

      Recognition Agreement: An agreement among a Cooperative Corporation, a
lender and a Mortgagor with respect to a Cooperative Loan whereby such parties
(i) acknowledge that such lender may make, or intends to make, such Cooperative
Loan, and (ii) make certain agreements with respect to such Cooperative Loan.

      Record Date: As to any Distribution Date (i) with respect to the Non-Delay
Certificates, the last Business Day preceding such Distribution Date (or the
Closing Date, in the case of the first Distribution Date) unless such
Certificates shall no longer be Book-Entry Certificates, in which case the
Record Date shall be the last Business Day of the month preceding the month of
such Distribution Date and (ii) in the case of the Delay Certificates (including
the Non-Delay Certificates that are subsequently reissued as Definitive
Certificates), the last Business Day of the month preceding the month of each
Distribution Date.

      Redemption Price: With respect to any Class of Certificates to be
redeemed, an amount equal to 100% of the related Class Principal Balance of the
Certificates to be so redeemed, together with interest on such amount at the
applicable Pass-Through Rate through the related Accrual Period (as increased by
any Class Unpaid Interest Amounts), and including, in the case of the Redemption
Price payable in connection with the redemption and retirement of all of the
Certificates, the payment of all amounts (including, without limitation, all
previously unreimbursed Advances and Servicer Advances and accrued and unpaid
Servicing Fees) payable or reimbursable to the Trustee, the Securities
Administrator, the Master Servicer and the Servicers pursuant to this Agreement
and the Purchase and Servicing Agreements, or to the Custodian under the
Custodial Agreements (to the extent such amounts are not paid to the Custodian
by the Seller).

      Refinancing Mortgage Loan: Any Mortgage Loan originated in connection with
the refinancing of an existing mortgage loan.

      Regular Certificates: As specified in the Preliminary Statement.

      Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. ss.ss.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.

      Relevant Servicing Criteria: The Servicing Criteria applicable to the
various parties, as set forth on Exhibit O attached hereto. For clarification
purposes, multiple parties can have responsibility for the same Relevant
Servicing Criteria. With respect to a Servicing Function

                                       30
<PAGE>

Participant engaged by the Master Servicer, the Securities Administrator, any
Servicer or any Custodian, the term "Relevant Servicing Criteria" may refer to a
portion of the Relevant Servicing Criteria applicable to such parties.

      Relief Act: The Servicemembers Civil Relief Act (formerly known as the
Soldiers' and Sailors' Civil Relief Act of 1940), as amended, and any similar
state laws.

      Relief Act Shortfalls: 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.

      REMIC: Each pool of assets in the Trust Fund designated as a REMIC as
described in the Preliminary Statement.

      REMIC Provisions: The provisions of the federal income tax law relating to
real estate mortgage investment conduits, which appear at Sections 860A through
860G of the Code, and related provisions, and regulations, including proposed
regulations and rulings, and administrative pronouncements promulgated
thereunder, as the foregoing may be in effect from time to time.

      REO Property: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan or otherwise treated as having been acquired pursuant to the REMIC
Provisions.

      Replacement Mortgage Loan: A mortgage loan substituted by an Originator or
the Seller for a Deleted Mortgage Loan which must, on the date of such
substitution, as confirmed in a request for release, substantially in the form
attached to the related Custodial Agreement, (i) have a Stated Principal
Balance, after deduction of all Scheduled Payments due in the month of
substitution, not in excess of the Stated Principal Balance of the Deleted
Mortgage Loan, (ii) have a Mortgage Rate not less than (and not more than two
percentage points greater than) the mortgage rate of the Deleted Mortgage Loan,
(iii) have a Loan-to-Value Ratio equal to or less than that of the Deleted
Mortgage Loan, (iv) have a remaining term to maturity not greater than (and not
more than one year less than) that of the Deleted Mortgage Loan, (v) is
otherwise acceptable to the Seller, (vi) comply with all of the representations
and warranties set forth in the related underlying servicing agreement, as
modified by any related assignment thereof, and (vii) shall be accompanied by an
Opinion of Counsel that such Replacement Mortgage Loan would not adversely
affect the REMIC status of any REMIC created hereunder or would not otherwise be
prohibited by this Pooling and Servicing Agreement.

      Reportable Event: As defined in Section 12.03 hereof.

      Reporting Party: The Depositor, any Originator, the Master Servicer, the
Trustee, any Custodian, any Servicer, any originator identified in the
Prospectus Supplement, the Corridor Contract Counterparty and any other material
transaction party.

                                       31
<PAGE>

      Reporting Subcontractor: With respect to the Master Servicer, the
Securities Administrator or any Custodian, any Subcontractor determined by such
Person pursuant to Section 12.08(b) to be "participating in the servicing
function" within the meaning of Item 1122 of Regulation AB. References to a
Reporting Subcontractor shall refer only to the Subcontractor of such Person and
shall not refer to Subcontractors generally.

      [Required Coupon: With respect to the Collateral Allocation Group [1]
Mortgage Loans, [o]% per annum and with respect to the Collateral Allocation
Group [2] Mortgage Loans [o]% per annum.

      Required Distributions: Not applicable.

      Reserve Fund Deposit: Not applicable.

      Reserve Fund: A fund created as part of the Trust Fund pursuant to Section
5.10 of this Agreement but which is not an asset of any of the REMICs.

      Residual Certificate: The Class A-R Certificates.

      Responsible Officer: With respect to the Trustee, any officer in the
corporate trust department or similar group of the Trustee with direct
responsibility for the administration of this Agreement and also, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the particular
subject. With respect to the Master Servicer, any officer in its master
servicing operations with direct responsibility for the Administration of this
Agreement. With respect to the Securities Administrator, any officer in the
corporate trust department or similar group of the Securities Administrator with
direct responsibility for the administration of this Agreement and also, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his or her knowledge of and familiarity with the
particular subject.

      Restricted Classes: As defined in Section 5.02(e).

      Restricted Global Security: As defined in Section 3.01(c).

      Rounding Amount: Not applicable.

      Rule 144A: Rule 144A under the Securities Act.

      SAIF: The Saving's Association Insurance Fund, or any successor thereto.

      Sarbanes-Oxley Act: The Sarbanes-Oxley Act of 2002 and the rules and
regulations of the Commission promulgated thereunder (including any
interpretations thereof by the Commission's staff).

      Sarbanes-Oxley Certification: As defined in Section 12.05.

      S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc. If
S&P is designated as a Rating Agency in the Preliminary Statement, for purposes
of Section 11.07 the

                                       32
<PAGE>

address for notices to S&P shall be Standard & Poor's, 55 Water Street, New
York, New York 10041, Attention: Mortgage Surveillance Monitoring, or such other
address as S&P may hereafter furnish to the Depositor and the Master Servicer.

      Scheduled Balances: Not applicable.

      Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on
any Due Date allocable to principal and/or interest on such Mortgage Loan which,
unless otherwise specified in the related Purchase and Servicing Agreement,
shall give effect to any related Debt Service Reduction and any Deficient
Valuation that affects the amount of the monthly payment due on such Mortgage
Loan.

      Scheduled Principal Classes: As specified in the Preliminary Statement.

      Scheduled Principal Distribution Amount: As to any Distribution Date and a
Collateral Allocation Group, an amount equal to the Non-A-P Percentage of all
amounts described in subclauses (a) through (d) of clause (i) of the definition
of "Non-A-P Formula Principal Amount" for such Distribution Date and such
Collateral Allocation Group; provided, however, that if a Bankruptcy Loss that
is an Excess Loss is sustained with respect to a Mortgage Loan in the related
Loan Group that is not a Liquidated Mortgage Loan, the Scheduled Principal
Distribution Amount for such Collateral Allocation Group will be reduced on the
related Distribution Date by the applicable Non-A-P Percentage of the principal
portion of such Bankruptcy Loss based on the Applicable Fraction of such
Mortgage Loan.

      Securities Act: The Securities Act of 1933, as amended, and the rules and
regulations thereunder.

      Securities Administrator: [Wells Fargo Bank, National Association], not in
its individual capacity but solely as Securities Administrator, or any successor
in interest, or if any successor Securities Administrator shall be appointed as
herein provided, then such successor Securities Administrator.

      Securities Administrator Compensation: With respect to any Securities
Administrator that is a successor to [Wells Fargo Bank, National Association] as
Securities Administrator, the portion of the earnings on the funds on deposit in
the Distribution Account payable on each Distribution Date pursuant to Section
4.02(b)(ii) hereof agreed to by and between such Securities Administrator and
the successor master servicer; provided, that (x) such Securities Administrator
Compensation payable on each Distribution Date shall equal at least one day's
earnings accrued since the prior Distribution Date and (y) the sum of such
Securities Administrator Compensation and the Master Servicer Compensation
payable on each Distribution Date shall not exceed the total earnings on the
funds on deposit in the Distribution Account payable on each Distribution Date
pursuant to Section 4.02(b)(ii) hereof earned since the prior Distribution Date.

      Seller: Morgan Stanley Mortgage Capital Inc., a New York corporation.

      Senior Certificate Group: As specified in the Preliminary Statement.

      Senior Certificates: As specified in the Preliminary Statement.

                                       33
<PAGE>

      Senior Credit Support Depletion Date: The date on which the Class
Principal Balance of each Class of Subordinated Certificates has been reduced to
zero.

      Senior Percentage: As to any Senior Certificate Group and Distribution
Date, the percentage equivalent of a fraction the numerator of which is the
aggregate of the Class Principal Balances of each Class of Senior Certificates
in that Senior Certificate Group (other than the related Class of Class A-P
Certificates and Notional Amount Certificates) immediately prior to such
Distribution Date and the denominator of which is the aggregate of the
applicable Non-A-P Percentage of the Stated Principal Balance of each Mortgage
Loan or the Applicable Fraction thereof in the related Collateral Allocation
Group as of the Due Date occurring in the month prior to the month of such
Distribution Date (after giving effect to prepayments received in the Prepayment
Period related to such prior Due Date); provided, however, that on any
Distribution Date after a Senior Termination Date, the Senior Percentage for the
Senior Certificates of the remaining Senior Certificate Group is the percentage
equivalent of a fraction, the numerator of which is the aggregate of the Class
Principal Balances of each such Class of Senior Certificates (other than the
related Class of Class A-P Certificates and Notional Amount Certificates) of
such remaining Senior Certificate Group immediately prior to such Distribution
Date and the denominator is the aggregate of the Class Principal Balances of all
Classes of Certificates (other than the related Class of Class A-P Certificates
and related Classes of Notional Amount Certificates), immediately prior to such
Distribution Date.

      Senior Prepayment Percentage: As to a Senior Certificate Group and any
Distribution Date during the five years beginning on the first Distribution
Date, 100%. The Senior Prepayment Percentage for any Distribution Date occurring
on or after the fifth anniversary of the first Distribution Date will, except as
provided herein, be as follows: for any Distribution Date in the first year
thereafter, the related Senior Percentage plus 70% of the related Subordinated
Percentage for such Distribution Date; for any Distribution Date in the second
year thereafter, the related Senior Percentage plus 60% of the related
Subordinated Percentage for such Distribution Date; for any Distribution Date in
the third year thereafter, the related Senior Percentage plus 40% of the related
Subordinated Percentage for such Distribution Date; for any Distribution Date in
the fourth year thereafter, the related Senior Percentage plus 20% of the
related Subordinated Percentage for such Distribution Date; and for any
Distribution Date thereafter, the related Senior Percentage for such
Distribution Date (unless on any Distribution Date the Senior Percentage exceeds
the initial Senior Percentage of such Senior Certificate Group, in which case
the Senior Prepayment Percentage for such Distribution Date will once again
equal 100%). Notwithstanding the foregoing, no decrease in any Senior Prepayment
Percentage will occur unless both of the Senior Step Down Conditions are
satisfied with respect to all of the Mortgage Loans.

      Senior Principal Distribution Amount: As to any Distribution Date and
Senior Certificate Group, the sum of (i) the sum, not less than zero, of the
related Senior Percentage of the applicable Non-A-P Percentage of all amounts
described in subclauses (a) through (d) of clause (i) of the definition of
Non-A-P Formula Principal Amount with respect to the related Collateral
Allocation Group for such Distribution Date, (ii) with respect to any Mortgage
Loan in the related Loan Group that became a Liquidated Mortgage Loan during the
calendar month preceding the month of such Distribution Date, the lesser of (x)
the related Senior Percentage of the applicable Non-A-P Percentage of the Stated
Principal Balance of the Applicable Fraction of

                                       34
<PAGE>

such Mortgage Loan and (y) either (A) the related Senior Prepayment Percentage
of the applicable Non-A-P Percentage of the amount of the Liquidation Proceeds
allocable to principal received on the Applicable Fraction of the Mortgage Loan,
or (B) if an Excess Loss was sustained with respect to such Liquidated Mortgage
Loan during such prior calendar month, the related Senior Percentage, of the
applicable Non-A-P Percentage of the amount of the Liquidation Proceeds
allocable to principal received with respect to the Applicable Fraction of such
Mortgage Loan, and (iii) the sum of (x) the related Senior Prepayment Percentage
of the applicable Non-A-P Percentage of the amounts described in subclause (f)
of clause (i) of the definition of Non-A-P Formula Principal Amount with respect
to the related Collateral Allocation Group for such Distribution Date plus (y)
the related Senior Prepayment Percentage of any Subsequent Recoveries described
in clause (ii) of the definition of Non-A-P Formula Principal Amount for such
Distribution Date; provided, however, that if a Bankruptcy Loss that is an
Excess Loss is sustained on a Mortgage Loan or the Applicable Fraction thereof
in the related Collateral Allocation Group that is not a Liquidated Mortgage
Loan, the Senior Principal Distribution Amount will be reduced on the related
Distribution Date by the related Senior Percentage of the applicable Non-A-P
Percentage of the principal portion of such Bankruptcy Loss; provided further,
however, on any Distribution Date after a Senior Termination Date, the Senior
Principal Distribution Amount for the remaining Senior Certificate Group will be
calculated pursuant to the above formula based on all the Mortgage Loans in the
Mortgage Pool, as opposed to the Mortgage Loans or Applicable Fractions thereof
in the related Collateral Allocation Group and, if such Distribution Date is
after a Senior Termination Date, shall be reduced by the amount of the principal
distribution made pursuant to (a) if the Group [1] Senior Certificates are
reduced to zero on such date, Section 5.02(a)(1)(iv)(y) or (b) if the Group [2]
Senior Certificates are reduced to zero on such date, Section 5.02(a)(2)(iv)(y).

      Senior Step Down Conditions: With respect to all Mortgage Loans or
Applicable Fractions thereof and a Collateral Allocation Group: (i) the
outstanding principal balance of all Mortgage Loans or Applicable Fractions
thereof in a Collateral Allocation Group delinquent 60 days or more (including
Mortgage Loans in foreclosure, REO Property and Mortgage Loans the mortgagors of
which are in bankruptcy) (averaged over the preceding six month period), as a
percentage of (a) if such date is on or prior to a Senior Termination Date, the
Subordinated Percentage for such Collateral Allocation Group of the aggregate of
the applicable Non-A-P Percentage of the aggregate Stated Principal Balance of
the Mortgage Loans or Applicable Fractions thereof in that Collateral Allocation
Group, or (b) if such date is after a Senior Termination Date, the aggregate
Class Principal Balance of the Subordinated Certificates, does not equal or
exceed 50%, and (ii) cumulative Realized Losses on the Mortgage Loans or
Applicable Fractions thereof in each Collateral Allocation Group do not exceed:
(a) for the Distribution Date on the fifth anniversary of the first Distribution
Date, 30% of the Original Subordinate Principal Balance, (b) for the
Distribution Date on the sixth anniversary of the first Distribution Date, 35%
of the Original Subordinate Principal Balance, (c) for the Distribution Date on
the seventh anniversary of the first Distribution Date, 40% of the Original
Subordinate Principal Balance, (d) for the Distribution Date on the eighth
anniversary of the first Distribution Date, 45% of the Original Subordinate
Principal Balance, and (e) for the Distribution Date on the ninth anniversary of
the first Distribution Date, 50% of the Original Subordinate Principal Balance.

                                       35
<PAGE>

      Senior Termination Date: For Senior Certificate Group [1] , the
Distribution Date on which the aggregate Class Principal Balance of the Group
[1] Senior Certificates (other than the Class [1-A-P] Certificates) has been
reduced to zero. For Senior Certificate Group [2] , the Distribution Date on
which the aggregate Class Principal Balance of the Group [2] Senior Certificates
(other than the Class [2-A-P] Certificates) has been reduced to zero.

      Sequential Trigger: Not applicable.

      Servicer: Each servicer and its respective successors and/or assigns under
a Purchase and Servicing Agreement. As of the Closing Date, the Servicers of the
Mortgage Loans shall be [o].

      Servicer Advance: A "Servicer Advance" or "Servicing Advance" as defined
in the applicable Purchase and Servicing Agreement.

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

      Servicing Fee: As to any Distribution Date and each Mortgage Loan, an
amount equal to the product of (a) one-twelfth of the related Servicing Fee Rate
and (b) the Stated Principal Balance of such Mortgage Loan as of the first day
of the related Due Period.

      Servicing Fee Rate: With respect to each Mortgage Loan and any
Distribution Date, the per annum rate specified in the related Purchase and
Servicing Agreement.

      Servicing Function Participant: means any Sub-Servicer, Subcontractor or
any other Person, other than each Servicer, the Master Servicer, the Trustee,
the Securities Administrator and any Custodian, that is performing activities
addressed by the Servicing Criteria, unless such Person's activities relate only
to 5% or less of the Mortgage Loans.

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

      Shift Percentage: With respect to any Distribution Date occurring during
the five years beginning on the first Distribution Date, 0%. Thereafter, the
Shift Percentage for any Distribution Date occurring on or after the fifth
anniversary of the first Distribution Date will be as follows: for any
Distribution Date in the first year thereafter, 30%; for any Distribution Date
in the second year thereafter, 40%; for any Distribution Date in the third year
thereafter, 60%; for any Distribution Date in the fourth year thereafter, 80%;
for any Distribution Date thereafter, 100%.

      Special Hazard Coverage Termination Date: The point in time at which the
Special Hazard Loss Coverage Amount is reduced to zero.

      Special Hazard Loss: Any Realized Loss suffered by a Mortgaged Property on
account of direct physical loss, as reported by the related Servicer to the
Master Servicer, but not

                                       36
<PAGE>

including (i) any loss of a type covered by a hazard insurance policy or a flood
insurance policy required to be maintained with respect to such Mortgaged
Property to the extent of the amount of such loss covered thereby, or (ii) any
loss caused by or resulting from:

            (a) normal wear and tear;

            (b) fraud, conversion or other dishonest act on the part of the
      Trustee, the Master Servicer or any of their agents or employees (without
      regard to any portion of the loss not covered by any errors and omissions
      policy);

            (c) errors in design, faulty workmanship or faulty materials, unless
      the collapse of the property or a part thereof ensues and then only for
      the ensuing loss;

            (d) nuclear or chemical reaction or nuclear radiation or radioactive
      or chemical contamination, all whether controlled or uncontrolled, and
      whether such loss be direct or indirect, proximate or remote or be in
      whole or in part caused by, contributed to or aggravated by a peril
      covered by the definition of the term "Special Hazard Loss;"

            (e) hostile or warlike action in time of peace and war, including
      action in hindering, combating or defending against an actual, impending
      or expected attack:

                  1. by any government or sovereign power, de jure or de facto,
            or by any authority maintaining or using military, naval or air
            forces; or

                  2. by military, naval or air forces; or

                  3. by an agent of any such government, power, authority or
            forces;

            (f) any weapon of war employing nuclear fission, fusion or other
      radioactive force, whether in time of peace or war; or

            (g) insurrection, rebellion, revolution, civil war, usurped power or
      action taken by governmental authority in hindering, combating or
      defending against such an occurrence, seizure or destruction under
      quarantine or customs regulations, confiscation by order of any government
      or public authority or risks of contraband or illegal transportation or
      trade.

      Special Hazard Loss Coverage Amount: With respect to the first
Distribution Date, $[o]. With respect to any Distribution Date after the first
Distribution Date, the lesser of (a) the greatest of (i) 1% of the aggregate of
the principal balances of the Mortgage Loans, (ii) twice the principal balance
of the largest Mortgage Loan in the Trust Fund and (iii) the aggregate of the
principal balances of all Mortgage Loans secured by Mortgaged Properties located
in the single California postal zip code area having the highest aggregate
principal balance of any such zip code area and (b) the Special Hazard Loss
Coverage Amount as of the Closing Date less the amount, if any, of Special
Hazard Losses allocated to the Certificates since the Closing Date. All
principal balances for the purpose of this definition will be calculated as of
the first day of the calendar month preceding the month of such Distribution
Date after giving effect to Scheduled Payments on the Mortgage Loans then due,
whether or not paid.

                                       37
<PAGE>

      Special Hazard Mortgage Loan: A Liquidated Mortgage Loan as to which a
Special Hazard Loss has occurred.

      Startup Day: The day designated as such pursuant to Section 10.01(b)
hereof.

      Stated Principal Balance: As to any Mortgage Loan and 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 partial Principal Prepayments
and Liquidation Proceeds allocable to principal (other than with respect to any
Liquidated Mortgage Loan) 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 under the direction or authority of any
Servicer (including a Sub-Servicer of any Servicer), the Securities
Administrator, the Master Servicer or any Custodian, as the case may be.

      Subordinate Component Balance: For any Distribution Date and for each
Collateral Allocation Group, the excess of: the principal balance of such
Collateral Allocation Group as of the first day of the related Due Period over
the Certificate Balance of the Senior Certificates related to such Collateral
Allocation Group on such Distribution Date (prior to all distributions to be
made on such Distribution Date)(each adjusted as necessary to an effective rate
reflecting the accrual of interest on a 30/360 basis).

      Subordinated Certificates: As specified in the Preliminary Statement.

      Subordinated Percentage: As to any Distribution Date on or prior to a
Senior Termination Date and any Collateral Allocation Group, 100% minus the
Senior Percentage for the Senior Certificate Group relating to such Collateral
Allocation Group for such Distribution Date. As to any Distribution Date after a
Senior Termination Date, 100% minus the Senior Percentage for such Distribution
Date.

      Subordinated Prepayment Percentage: As to any Distribution Date and
Collateral Allocation Group, 100% minus the related Senior Prepayment Percentage
for such Distribution Date.

      Subordinated Principal Distribution Amount: With respect to any
Distribution Date and Collateral Allocation Group, an amount equal to the sum,
not less than zero, of (i) the Subordinated Percentage of the applicable Non-A-P
Percentage for such Collateral Allocation Group of all amounts described in
subclauses (a) through (d) of clause (i) of the definition of "Non-A-P Formula
Principal Amount" for such Distribution Date, (ii) with respect to the
Applicable Fraction of each Mortgage Loan in that Collateral Allocation Group
that became a Liquidated Mortgage Loan during the calendar month preceding the
month of such Distribution Date, the applicable Non-A-P Percentage of the amount
of the Liquidation Proceeds allocated to principal received with respect thereto
remaining after application thereof pursuant to clause (ii)

                                       38
<PAGE>

of the definition of Senior Principal Distribution Amount, up to the
Subordinated Percentage for such Collateral Allocation Group of the applicable
Non-A-P Percentage of the Stated Principal Balance of the Applicable Fraction
such Mortgage Loan, (iii) the Subordinated Prepayment Percentage of the
applicable Non-A-P Percentage of all amounts described in subclause (f) of
clause (i) of the definition of "Non-A-P Formula Principal Amount" for such
Collateral Allocation Group and Distribution Date, and (iv) the Subordinated
Prepayment Percentage of any Subsequent Recoveries described in clause (ii) of
the definition of "Non-A-P Formula Principal Amount" for such Collateral
Allocation Group and Distribution Date reduced by Class A-P Deferred Amounts;
provided, however, that on any Distribution Date after a Senior Termination
Date, the Subordinated Principal Distribution Amount will not be calculated by
Collateral Allocation Group but will equal the amount calculated pursuant to the
formula set forth above based on the applicable Subordinated Percentage or
Subordinated Prepayment Percentage, as applicable, for the Subordinated
Certificates for such Distribution Date with respect to all of the Mortgage
Loans as opposed to only the Applicable Fractions of the Mortgage Loans in the
related Collateral Allocation Group.

      Subsequent Recoveries: As to any Distribution Date, with respect to a
Liquidated Mortgage Loan that resulted in a Realized Loss in a prior calendar
month, amounts received by the Securities Administrator from the related
Servicer (net of any related expenses permitted to be reimbursed pursuant to
Section 4.02) specifically related to such Liquidated Mortgage Loan.

      Sub-Servicer: Any Person that (i) is considered to be a Servicing Function
Participant, (ii) services Mortgage Loans on behalf of any Servicer, and (iii)
is responsible for the performance (whether directly or through sub-servicers or
Subcontractors) of Servicing functions required to be performed under this
Agreement, any related Servicing Agreement or any sub-servicing agreement that
are identified in Item 1122(d) of Regulation AB.

      Substitution Adjustment Amount: As defined in the second paragraph of
Section 2.05(b).

      Targeted Balance: With respect to any group of Targeted Principal Classes
or Components in the aggregate and any Distribution Date appearing in Schedule B
hereto, the Aggregate Targeted Balance for such group and Distribution Date.
With respect to any other Targeted Principal Class or Component and any
Distribution Date appearing in Schedule B hereto, the applicable amount
appearing opposite such Distribution Date for such Class or Component.

      Tax Matters Person: The person designated as "tax matters person" in the
manner provided under Treasury regulation ss. 1.860F-4(d) and temporary Treasury
regulation ss.301.6231(a)(7)1T. Initially, the Tax Matters Person shall be the
Securities Administrator.

      Tax Matters Person Certificate: The Class A-R Certificate with a
Denomination of $0.01.

      Trust Fund: The corpus of the trust created pursuant to this Agreement
consisting of (i) the Mortgage Loans and all interest and principal received on
or with respect thereto after the Cut-off Date (other than Scheduled Payments
due on or prior to the Cut-off Date) to the extent not applied in computing the
Cut-off Date Principal Balance thereof; (ii) all cash, instruments or

                                       39
<PAGE>

property held or required to be held in the Custodial Accounts and the
Distribution Account and all amounts deposited therein pursuant to the
applicable provisions of this Agreement; (iii) property that secured a Mortgage
Loan and has been acquired by foreclosure, deed-in-lieu of foreclosure or
otherwise; (iv) the Depositor's rights assigned to the Trustee under the
Purchase and Servicing Agreements, as modified by the Acknowledgements and under
the Custodial Agreements; (v) all insurance policies related to the Mortgage
Loans and any insurance proceeds; (vi) the pledge, control and guaranty
agreements and the Limited Purpose Surety Bond relating to the Additional
Collateral Mortgage Loans; (vii) the Corridor Contract and the amounts on
deposit in the Reserve Fund; and (viii) all proceeds of the conversion,
voluntary or involuntary, of any of the foregoing.

      Trustee: [LaSalle Bank National Association, a national banking
association], organized under the laws of the United States and any Person
succeeding the Trustee hereunder, or if any successor trustee or any co-trustee
shall be appointed as herein provided, then such successor trustee and such
co-trustee, as the case may be.

      Trustee Mortgage Files: With respect to each Mortgage Loan, the Mortgage
Documents to be retained in the custody and possession of the Trustee or
Custodian on behalf of the Trustee.

      UCC: The Uniform Commercial Code as enacted in the relevant jurisdiction.

      Undercollateralized Group: As defined in Section 5.08(a).

      Undercollateralization Distribution: As defined in Section 5.08.

      Underwriter's Exemption: Prohibited Transaction Exemption 2002-41, 67 Fed.
Reg. 54487 (2002), as amended (or any successor thereto), or any substantially
similar administrative exemption granted by the U.S. Department of Labor.

      Underwriter: As specified in the Preliminary Statement.

      Underwriting Agreement: The Underwriting Agreement, dated ___________,
200_, among the Seller, the Depositor and the Underwriter.

      Unscheduled Principal Distribution Amount: As to any Distribution Date and
a Collateral Allocation Group, an amount equal to the sum of (1) with respect to
each Mortgage Loan in the related Loan Group that became a Liquidated Mortgage
Loan during the calendar month preceding the month of such Distribution Date,
the Non-A-P Percentage of the Liquidation Proceeds allocable to principal
received with respect to such Mortgage Loan based on the Applicable Fraction
thereof, (2) the applicable Non-A-P Percentage of the amount described in
subclause (f) of clause (i) of the definition of Non-A-P Formula Principal
Amount for such Collateral Allocation Group and Distribution Date and (3) the
amount described in clause (ii) of the definition of Non-A-P Formula Principal
Amount for such Collateral Allocation Group and that Distribution Date.

      Uniform Commercial Code: The Uniform Commercial Code as in effect in any
applicable jurisdiction from time to time.

                                       40
<PAGE>

      Voting Interests: The portion of the voting rights of all the Certificates
that is allocated to any Certificate for purposes of the voting provisions of
this Agreement. At all times during the term of this Agreement, 1.00% of all
Voting Interests shall be allocated to each Class of Notional Amount
Certificates and the Class A-R Certificates. Voting Interests shall be allocated
among all other Classes of Certificates pro rata based on Class Principal
Balances for each Class then outstanding. Voting Interests shall be allocated
among the Certificates within each such Class in proportion to their Certificate
Balances or Percentage Interests.

      Weighted Average Net Mortgage Rate: As to any Distribution Date and
Collateral Allocation Group, the average of the Net Mortgage Rate of the
Applicable Fraction of each Mortgage Loan in that Collateral Allocation Group,
weighted on the basis of the Applicable Fraction of its Stated Principal Balance
as of the end of the Prepayment Period related to the immediately preceding
Distribution Date.

                                       41
<PAGE>

                                   ARTICLE II

                              DECLARATION OF TRUST;
                            ISSUANCE OF CERTIFICATES

      Section 2.01 Creation and Declaration of Trust Fund; Conveyance of
Mortgage Loans.

      (a) Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby transfer, assign, set over, deposit with and otherwise
convey to the Trustee, without recourse, subject to Sections 2.02 and 2.05, in
trust, all the right, title and interest of the Depositor in and to the Trust
Fund. Such conveyance includes, without limitation, (i) the Mortgage Loans,
including the right to all payments of principal and interest received on or
with respect to the Mortgage Loans on and after the Cut-off Date (other than
Scheduled Payments due on or before such date), and all such payments due after
such date but received prior to such date and intended by the related Mortgagors
to be applied after such date; (ii) all of the Depositor's right, title and
interest in and to all amounts from time to time credited to and the proceeds of
the Distribution Account, any Custodial Accounts or any Escrow Account
established with respect to the Mortgage Loans; (iii) all of the rights and
obligations of the Depositor as assignee of the Seller with respect to the
Seller's rights and obligations under the Purchase and Servicing Agreements
pursuant to the Acknowledgements; (iv) all of the Depositor's right, title or
interest in REO Property and the proceeds thereof; (v) all of the Depositor's
rights under any Insurance Policies related to the Mortgage Loans; (vi) $100
(which amount has been delivered by the Depositor to the Securities
Administrator to be held in the Distribution Account until distributed to the
Holders of the Class P Certificates pursuant to Section 5.02(a)); and (vii) if
applicable, the Depositor's security interest in any collateral pledged to
secure the Mortgage Loans, including the Mortgaged Properties and any Additional
Collateral relating to the Additional Collateral Mortgage Loans, including, but
not limited to, the pledge, control and guaranty agreements and the Limited
Purpose Surety Bond, to have and to hold, in trust; and the Trustee declares
that, subject to the review provided for in Section 2.02, it has received and
shall hold the Trust Fund, as trustee, in trust, for the benefit and use of the
Holders of the Certificates and for the purposes and subject to the terms and
conditions set forth in this Agreement, and, concurrently with such receipt, has
caused to be executed, authenticated and delivered to or upon the order of the
Depositor, in exchange for the Trust Fund, Certificates in the authorized
denominations evidencing the entire ownership of the Trust Fund.

      The foregoing sale, transfer, assignment, set-over, deposit and conveyance
does not and is not intended to result in the creation or assumption by the
Trustee of any obligation of the Depositor, the Seller or any other Person in
connection with the Mortgage Loans or any other agreement or instrument relating
thereto except as specifically set forth therein.

      In connection with such transfer and assignment of the Mortgage Loans, the
Custodian acting on the Trustee's behalf, will continue to hold the documents or
instruments listed below with respect to each Mortgage Loan (each, a "Trustee
Mortgage File") so transferred and assigned:

                                       42
<PAGE>

      (i) with respect to each Mortgage Loan, the original Mortgage Note
endorsed without recourse in proper form to the order of the "[LaSalle Bank
National Association], as Trustee of Morgan Stanley Mortgage Loan Trust 200_-_,
Mortgage Pass-Through Certificates, without recourse", or in blank (in each
case, with all necessary intervening endorsements, as applicable);

      (ii) with respect to each Mortgage Loan (other than a Cooperative Loan)
that is not a MERS Mortgage Loan, the original Mortgage with evidence of
recording thereon, or if the original Mortgage has not yet been returned from
the recording office, a copy of such Mortgage certified by the applicable
Originator, title company, escrow agent or closing attorney to be a true copy of
the original of the Mortgage which has been sent for recording in the
appropriate jurisdiction in which the Mortgaged Property is located, and in the
case of the each MERS Mortgage Loan, the original Mortgage, noting the presence
of the MIN of the Mortgage Loans and either language indicating that the
Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan or if the
Mortgage Loan was not a MOM Loan at origination, the original Mortgage and the
assignment thereof to MERS, with evidence of recording indicated thereon;

      (iii) with respect to each Mortgage Loan (other than a Cooperative Loan)
that is not a MERS Mortgage Loan, the Assignment of Mortgage in form and
substance acceptable for recording in the relevant jurisdiction, such assignment
being either (A) in blank, without recourse, or (B) endorsed to "[LaSalle Bank
National Association], as Trustee of Morgan Stanley Mortgage Loan Trust 200_-_,
Mortgage Pass-Through Certificates, without recourse";

      (iv) with respect to each Mortgage Loan (other than a Cooperative Loan)
that is not a MERS Mortgage Loan, the originals of all intervening assignments
of the Mortgage, if any, with evidence of recording thereon, or if the original
intervening assignment has not yet been returned from the recording office, a
copy of such assignment certified by the applicable Originator, title company,
escrow agent or closing attorney to be a true copy of the original of the
assignment which has been sent for recording in the appropriate jurisdiction in
which the Mortgaged Property is located;

      (v) with respect to each Mortgage Loan (other than a Cooperative Loan),
the originals of all assumption, modification, consolidation or extension
agreements, if any, with evidence of recording thereon;

      (vi) if any, with respect to each Mortgage Loan (other than a Cooperative
Loan), the original policy of title insurance (or a true copy thereof) with
respect to any such Mortgage Loan, or, if such policy has not yet been delivered
by the insurer, the title commitment or title binder to issue same;

      (vii) if any, with respect to each Mortgage Loan (other than a Cooperative
Loan), the original power of attorney and guaranty agreement with respect to
such Mortgage Loan;

      (viii) [reserved];

      (ix) with respect to each Mortgage Loan which constitutes a Cooperative
Loan:

      (a) the original of any security agreement or similar document executed in
connection with the Cooperative Loan;

                                       43
<PAGE>

      (b) the original Recognition Agreement and the original Assignment of
Recognition Agreement;

      (c) UCC-1 financing statements with recording information thereon from the
appropriate governmental recording offices if necessary to perfect the security
interest of the Cooperative Loan under the Uniform Commercial Code in the
jurisdiction in which the Cooperative Property is located, accompanied by UCC-3
financing statements executed in blank for recordation of the change in the
secured party thereunder;

      (d) an Estoppel Letter and/or Consent;

      (e) a search for (i) federal tax liens, mechanics' liens, lis pendens,
judgments of record or otherwise against (x) the Cooperative Corporation and (y)
the seller of the Cooperative Unit, (ii) filings of financing statements and
(iii) the deed of the cooperative project into the Cooperative Corporation;

      (f) the guaranty of the Mortgage Note and Cooperative Loan, if any;

      (g) the original Proprietary Lease and the Assignment of Proprietary Lease
executed by the Mortgagor in blank or if the Proprietary Lease has been assigned
by the Mortgagor to the Seller, then the Seller must execute an assignment of
the Assignment of Proprietary Lease in blank; and

      (h) if any, the original or certified copy of the certificates evidencing
ownership of the Cooperative Shares issued by the Cooperative Corporation and
related assignment of such certificates or an assignment of such Cooperative
Shares, in blank, executed by the Mortgagor with such signature guaranteed;

      (x) [reserved]; and

      (xi) any other document or instruments required to be delivered under the
related Custodial Agreement.

      In addition, in connection with the assignment of any MERS Mortgage Loan,
it is understood that the related Originator will cause the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the related Originator
to the Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
the information required by the MERS(R) System to identify the series of
Certificates issued in connection with such Mortgage Loans. It is further
understood that the related Originator will not, and the Master Servicer hereby
agrees that it will not, alter the information referenced in this paragraph with
respect to any Mortgage Loan during the term of this Agreement unless and until
such Mortgage Loan is repurchased in accordance with the terms of this
Agreement.

      (b) As soon as is practicable after the Closing Date, the Depositor shall
cause the Servicer of any Additional Collateral Mortgage Loan to deliver to the
applicable Custodian the Assignment and Notice of Transfer with respect to each
Additional Collateral Mortgage Loan as

                                       44
<PAGE>

well as the assignments of any rights with respect to each Additional Collateral
Mortgage Loan under any Limited Purpose Surety Bond.

      (c) In instances where a title insurance policy is required to be
delivered to the applicable Custodian on behalf of the Trustee and is not so
delivered, the Depositor will provide a copy of such title insurance policy to
the applicable Custodian on behalf of the Trustee, as promptly as practicable
after the execution and delivery hereof, but in any case within 180 days of the
Closing Date.

      (d) For Mortgage Loans (if any) that have been prepaid in full after the
Cut-off Date and prior to the Closing Date, the Depositor, in lieu of delivering
the above documents, herewith delivers such amount to the Securities
Administrator, and delivers to the Securities Administrator, the Trustee, and
the applicable Custodian, an Officer's Certificate which shall include a
statement to the effect that all amounts received in connection with such
prepayment that are required to be deposited in the Distribution Account
pursuant to Section 4.01 have been so deposited. All original documents that are
not delivered to the applicable Custodian on behalf of the Trustee shall be held
by the Master Servicer or the related Servicer in trust for the benefit of the
Trustee and the Certificateholders.

      (e) Neither the Depositor nor the Trust will acquire or hold any Mortgage
Loan that would violate the representations made by the Seller set forth in
clauses (iv) through (vi) of Section 2.05(b) hereof.

      Section 2.02 Acceptance of Trust Fund by Trustee; Review of Documentation
                   for Trust Fund.

      (a) The Trustee, by execution and delivery hereof, acknowledges receipt by
it of notice from each of the Custodians that each holds the documents
identified in the Initial Custodian Certification in the form annexed hereto as
Exhibit L-1 (the "Initial Custodian Certification") pertaining to the Mortgage
Loans listed on the Mortgage Loan Schedule.

      (b) Nothing in this Agreement shall be construed to constitute an
assumption by the Trust Fund, the Trustee, any Custodian or the
Certificateholders of any unsatisfied duty, claim or other liability on any
Mortgage Loan or to any Mortgagor.

      (c) Each of the parties hereto acknowledges that (i) the Custodian has
delivered to the Depositor, the Master Servicer and the Trustee, the Initial
Custodian Certification, in the form annexed hereto as Exhibit L-1, stating that
it has performed the applicable review of the Mortgage Loans as required herein
and in the Custodial Agreements on the Closing Date and (ii) thereafter, if
applicable, the Custodian shall perform the applicable review of the Mortgage
Loans and deliver the further certifications (including but not limited to the
Final Custodian Certification) as provided herein and in the applicable
Custodial Agreements.

      With respect to the MSMCI Mortgage Loans only, not later than [180] days
after the Closing Date, the Trustee shall enforce the related Custodian's
obligation to the extent required by the related Custodial Agreement to deliver
to the Depositor, the Master Servicer and the Trustee a Final Custodian
Certification in the form annexed hereto as Exhibit L-2 (the "Final Custodian
Certification"), with any applicable exceptions noted thereon. To the extent
that a

                                       45
<PAGE>

Custodian must deliver a Final Certification under the related Custodial
Agreement, the Trustee shall enforce the related Custodian's obligation to make
available, upon request of any Certificateholder, a copy of any exceptions noted
on the related Initial Custodian Certification or the related Final Custodian
Certification.

      (d) Upon execution of this Agreement, the Depositor hereby delivers to the
Trustee (with a copy to the Master Servicer) and the Trustee acknowledges
receipt of the Acknowledgements, together with the related Purchase and
Servicing Agreements.

      Section 2.03 Representations and Warranties of the Depositor.

      (a) The Depositor hereby represents and warrants to the Trustee, for the
benefit of the Certificateholders, and to the Master Servicer and the Securities
Administrator as of the Closing Date or such other date as is specified, that:

            (i) the Depositor is a corporation duly organized, validly existing
      and in good standing under the laws governing its creation and existence
      and has full corporate power and authority to own its property, to carry
      on its business as presently conducted, to enter into and perform its
      obligations under this Agreement, and to create the trust pursuant hereto;

            (ii) the execution and delivery by the Depositor of this Agreement
      have been duly authorized by all necessary corporate action on the part of
      the Depositor; neither the execution and delivery of this Agreement, nor
      the consummation of the transactions herein contemplated, nor compliance
      with the provisions hereof, will conflict with or result in a breach of,
      or constitute a default under, any of the provisions of any law,
      governmental rule, regulation, judgment, decree or order binding on the
      Depositor or its properties or the certificate of incorporation or bylaws
      of the Depositor;

            (iii) the execution, delivery and performance by the Depositor of
      this Agreement and the consummation of the transactions contemplated
      hereby do not require the consent or approval of, the giving of notice to,
      the registration with, or the taking of any other action in respect of,
      any state, federal or other governmental authority or agency, except such
      as has been obtained, given, effected or taken prior to the date hereof;

            (iv) this Agreement has been duly executed and delivered by the
      Depositor and, assuming due authorization, execution and delivery by the
      Trustee, the Master Servicer and the Securities Administrator, constitutes
      a valid and binding obligation of the Depositor enforceable against it in
      accordance with its terms except as such enforceability may be subject to
      (A) applicable bankruptcy and insolvency laws and other similar laws
      affecting the enforcement of the rights of creditors generally and (B)
      general principles of equity regardless of whether such enforcement is
      considered in a proceeding in equity or at law;

            (v) there are no actions, suits or proceedings pending or, to the
      knowledge of the Depositor, threatened or likely to be asserted against or
      affecting the Depositor, before or by any court, administrative agency,
      arbitrator or governmental body (A) with

                                       46
<PAGE>

      respect to any of the transactions contemplated by this Agreement or (B)
      with respect to any other matter which in the judgment of the Depositor
      will be determined adversely to the Depositor and will if determined
      adversely to the Depositor materially and adversely affect it or its
      business, assets, operations or condition, financial or otherwise, or
      adversely affect its ability to perform its obligations under this
      Agreement;

            (vi) immediately prior to the transfer and assignment of the
      Mortgage Loans to the Trustee, the Depositor was the sole owner of record
      and holder of each Mortgage Loan, and the Depositor had good and
      marketable title thereto, and had full right to transfer and sell each
      Mortgage Loan to the Trustee free and clear, subject only to (1) liens of
      current real property taxes and assessments not yet due and payable and,
      if the related Mortgaged Property is a condominium unit, any lien for
      common charges permitted by statute, (2) covenants, conditions and
      restrictions, rights of way, easements and other matters of public record
      as of the date of recording of such Mortgage acceptable to mortgage
      lending institutions in the area in which the related Mortgaged Property
      is located and specifically referred to in the lender's title insurance
      policy or attorney's opinion of title and abstract of title delivered to
      the originator of such Mortgage Loan, and (3) such other matters to which
      like properties are commonly subject which do not, individually or in the
      aggregate, materially interfere with the benefits of the security intended
      to be provided by the Mortgage, of any encumbrance, equity, participation
      interest, lien, pledge, charge, claim or security interest, and had full
      right and authority, subject to no interest or participation of, or
      agreement with, any other party, to sell and assign each Mortgage Loan
      pursuant to this Agreement;

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

            (viii) The Mortgage Loans constitute "instruments" within the
      meaning of the applicable UCC;

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

            (x) None of the Mortgage Loans have any marks or notations
      indicating that such Mortgage Loans have been pledged, assigned or
      otherwise conveyed to any Person other than the Trustee; and

            (xi) The Depositor has received all consents and approvals required
      by the terms of the Mortgage Loans to convey the Mortgage Loans hereunder
      to the Trustee.

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<PAGE>

      The foregoing representations made in this Section 2.03 shall survive the
termination of this Agreement and shall not be waived by any party hereto.

      Section 2.04 Representations and Warranties of the Depositor and the
                   Seller as to the Mortgage Loans.

      The Depositor hereby represents and warrants to the Trustee with respect
to the Mortgage Loans or each Mortgage Loan, as the case may be, as of the date
hereof or such other date set forth herein that as of the Closing Date:

      (a) Immediately prior to the transfer and assignment contemplated herein,
the Depositor was the sole owner and holder of the Mortgage Loans. The Mortgage
Loans were not assigned or pledged by the Depositor and the Depositor had good
and marketable title thereto, and the Depositor had full right to transfer and
sell the Mortgage Loans to the Trustee, for the benefit of the
Certificateholders, free and clear of any encumbrance, participation interest,
lien, equity, pledge, claim or security interest and had full right and
authority subject to no interest or participation in, or agreement with any
other party to sell or otherwise transfer the Mortgage Loans.

      (b) As of the Closing Date, the Depositor has transferred all right, title
and interest in the Mortgage Loans to the Trustee on behalf of the Trust.

      (c) As of the Closing Date, the Depositor has not transferred the Mortgage
Loans to the Trustee on behalf of the Trust with any intent to hinder, delay or
defraud an of its creditors.

      It is understood and agreed that the representations and warranties set
forth in this Section 2.04 shall survive delivery of the respective Mortgage
Files to the Trustee or the Custodian and shall inure to the benefit of the
Trustee, notwithstanding any restrictive or qualified endorsement or assignment.

      Section 2.05 Representations and Warranties of the Seller; Discovery of
                   Breach; Repurchase or Substitution of Mortgage Loans.

      (a) With respect to the MSMCI Mortgage Loans the Seller hereby makes the
representations and warranties contained in Section 3.01 of the MSMCI Purchase
Agreement to and for the benefit of the Depositor, the Trustee and the Trust
Fund. The Seller agrees to comply with the provisions of this Section 2.05 in
respect of a breach of any of such representations and warranties.

      The Seller hereby represents and warrants to the Trustee with respect to
the Mortgage Loans as of the date hereof or such other date set forth herein
that as of the Closing Date:

            (i) Each Mortgage Loan at origination complied in all material
      respects with applicable predatory and abusive lending laws and
      consummation of the transactions contemplated by this Agreement will not
      involve the violation of any such laws.

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<PAGE>

            (ii) All of the Mortgage Loans were originated in compliance with
      all applicable laws, including, but not limited to, all applicable
      anti-predatory and abusive lending laws.

            (iii) None of the Mortgage Loans is covered by the Home Ownership
      and Equity Protection Act of 1994 ("HOEPA").

            (iv) None of the Mortgage Loans is a "high cost" loan as defined by
      applicable predatory and abusive lending laws.

            (v) No Mortgage Loan is a High Cost Loan or Covered Loan, as
      applicable, and with respect to the foregoing, the terms "High Cost Loan"
      and "Covered Loan" have the meaning assigned to them in the then current
      version of Standard & Poor's LEVELS(R), which is now Version 5.6c Glossary
      Revised, Appendix E which is attached hereto as Exhibit Q (the "Glossary")
      where (x) a "High Cost Loan" is each loan identified in the column
      "Category under applicable anti-predatory lending law" of the table
      entitled "Standard & Poor's High Cost Loan Categorization" in the Glossary
      as each such loan is defined in the applicable anti-predatory lending law
      of the State or jurisdiction specified in such table and (y) a "Covered
      Loan" is each loan identified in the column "Category under applicable
      anti-predatory lending law" of the table entitled "Standard & Poor's High
      Covered Loan Categorization" in the Glossary as each such loan is defined
      in the applicable anti-predatory lending law of the State or jurisdiction
      specified in such table.

            (vi) No Mortgage Loan originated on or after October 1, 2002 through
      March 6, 2003 is governed by the Georgia Fair Lending Act.

      Upon discovery by the Depositor, the Seller or the related Originator or
receipt of written notice of any materially defective document in, or, following
the date of delivery to the Trustee of the Custodian's certifications as
required under the related Custodial Agreements, that a document is missing
from, a Trustee Mortgage File, or discovery by the Trustee, the Depositor, the
Seller or the related Originator of the breach by such Originator or Seller of
any representation or warranty under the related Purchase and Servicing
Agreement, as modified by the Acknowledgement, in the case of the Originator, or
under this Agreement, in the case of the Seller, in respect of any Mortgage Loan
which materially adversely affects the value of that Mortgage Loan or the
interest therein of the Certificateholders (a "Defective Mortgage Loan") (each
of the Depositor, the Seller and the related Originator hereby agreeing to give
written notice thereof to the Trustee and the other of such parties), the
Trustee, or its designee, shall promptly notify the Depositor and the Seller or
the related Originator, as applicable, in writing of such nonconforming or
missing document or breach and request that the Seller or related Originator
deliver such missing document or cure or cause the cure of such defect or breach
within a period of time specified in the related Purchase and Servicing
Agreement, and if the Seller or related Originator, as applicable, does not
deliver such missing document or cure such defect or breach in all material
respects during such period, the Trustee, shall enforce the obligations of the
related Originator under the related Purchase and Servicing Agreement, as
modified by the Acknowledgement, or the Seller under this Agreement, as
applicable, and cause the related Originator or the Seller, as the case may be,
to repurchase that Mortgage Loan from the Trust Fund at the Purchase Price on or
prior to the Determination Date following the

                                       49
<PAGE>

expiration of such specified period (subject to Section 2.05(c) below);
provided, however, that, in connection with any such breach that could not
reasonably have been cured within such specified period (unless permitted a
greater period of time to cure under the related Purchase and Servicing
Agreement), subject to Section 2.05(c) below, if the related Originator or the
Seller, as applicable, shall have commenced to cure such breach within such
specified period, the related Originator or the Seller shall be permitted to
proceed thereafter diligently and expeditiously to cure the same within such
additional time as is reasonably necessary to cure such breach. To the extent
that the amount by which the Purchase Price (as defined in this Agreement)
exceeds the repurchase price payable by the related Originator under the related
Purchase and Servicing Agreement, including any costs and damages that are
incurred by the Trust Fund as a result of any violation of any applicable
federal, state, or local predatory or abusive lending law arising from or in
connection with the origination of any Mortgage Loan repurchased by the related
Originator or the Seller, the payment of such excess shall be borne by the
Seller. The Purchase Price for the repurchased Mortgage Loan shall be deposited
in the related Distribution Account, and the Trustee, or its designee, upon
receipt of written certification from the Securities Administrator of such
deposit, shall release or cause the Custodian to release to the related
Originator or the Seller, as applicable, the related Trustee Mortgage File and
shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, representation or warranties, as either party shall
furnish to it and as shall be necessary to vest in such party any Mortgage Loan
released pursuant hereto and the Trustee, or its designee, shall have no further
responsibility with regard to such Trustee Mortgage File (it being understood
that the Trustee shall have no responsibility for determining the sufficiency of
such assignment for its intended purpose). If pursuant to the foregoing
provisions the related Originator or the Seller repurchases a Mortgage Loan that
is a MERS Mortgage Loan, the related Servicer shall cause MERS to designate on
the MERS(R) System the related Originator or the Seller, as applicable, as the
beneficial holder of such Mortgage Loan.

      In lieu of repurchasing any such Mortgage Loan as provided above, either
party may cause such Mortgage Loan to be removed from the Trust Fund (in which
case it shall become a Deleted Mortgage Loan) and substitute one or more
Replacement Mortgage Loans in the manner and subject to the limitations set
forth in Section 2.05(b) below. It is understood and agreed that the obligations
of the Originators and the Seller to cure or to repurchase (or to substitute
for) any related Mortgage Loan as to which a document is missing, a material
defect in a constituent document exists or as to which such a breach has
occurred and is continuing shall constitute the sole remedy against the such
party respecting such omission, defect or breach available to the Trustee on
behalf of the Certificateholders.

      (b) Any substitution of Replacement Mortgage Loans for Deleted Mortgage
Loans made pursuant to Section 2.05(a) above must be effected prior to the last
Business Day that is within two years after the Closing Date. As to any Deleted
Mortgage Loan for which the related Originator or the Seller substitutes a
Replacement Mortgage Loan or Loans, such substitution shall be effected by
delivering to the Custodian, on behalf of the Trustee, for such Replacement
Mortgage Loan or Loans, the Mortgage Note, the Mortgage, any related assignment
thereof and the Acknowledgement to the Trustee, and such other documents and
agreements, with all necessary endorsements thereon, together with an Officers'
Certificate stating that each such Replacement Mortgage Loan satisfies the
definition thereof and specifying the Substitution Adjustment Amount (as
described below), if any, in connection with such substitution. Monthly

                                       50
<PAGE>

Payments due with respect to Replacement Mortgage Loans in the month of
substitution shall not be included as part of the Trust Fund and shall be
retained by the related Originator or the Seller, as applicable. For the month
of substitution, distributions to the Certificateholders shall reflect the
collections and recoveries in respect of such Deleted Mortgage in the Due Period
preceding the month of substitution and the related Originator or the Seller, as
applicable, shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Mortgage Loan. Upon such substitution, such
Replacement Mortgage Loan shall constitute part of the Trust Fund and shall be
subject in all respects to the terms of this Agreement and the related Purchase
and Servicing Agreement, as modified by the related Acknowledgement, including
all representations and warranties thereof included in such Purchase and
Servicing Agreement, as modified by the Acknowledgement, in each case as of the
date of substitution.

      For any month in which an Originator or the Seller substitutes one or more
Replacement Mortgage Loans for one or more Deleted Mortgage Loans, the related
Servicer shall determine the excess (each, a "Substitution Adjustment Amount"),
if any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
exceeds the aggregate Stated Principal Balance of the Replacement Mortgage Loans
replacing such Deleted Mortgage Loans, together with one month's interest on
such excess amount at the applicable Net Mortgage Rate. On the date of such
substitution, the related Originator or Seller, as applicable, shall deliver or
cause to be delivered to the related Servicer for deposit in the related
Custodial Account an amount equal to the related Substitution Adjustment Amount,
if any, and the Custodian, on behalf of the Trustee, upon receipt of the related
Replacement Mortgage Loan or Loans and certification by such Servicer of such
deposit, shall release to the related Originator or the Seller, as applicable,
the related Trustee Mortgage File or Files and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as the
related Originator or Seller shall deliver to it and as shall be necessary to
vest therein any Deleted Mortgage Loan released pursuant hereto.

      In addition, the related Originator or the Seller, as applicable, shall
obtain at its own expense and deliver to the Trustee and the Securities
Administrator an Opinion of Counsel to the effect that such substitution (either
specifically or as a class of transactions) shall not cause an Adverse REMIC
Event. If such Opinion of Counsel cannot be delivered, then such substitution
may only be effected at such time as the required Opinion of Counsel can be
given.

      (c) Upon discovery by the related Originator, the Seller, the Master
Servicer, the Depositor or the Trustee that any Mortgage Loan does not
constitute a "qualified mortgage" within the meaning of Section 860G(a)(3) of
the Code, the party discovering such fact shall within two Business Days give
written notice thereof to the other parties. In connection therewith, the
applicable party shall repurchase or, subject to the limitations set forth in
Section 2.05(b), substitute one or more Replacement Mortgage Loans for the
affected Mortgage Loan within 90 days of the earlier of discovery or receipt of
such notice with respect to such affected Mortgage Loan. Any such repurchase or
substitution shall be made in the same manner as set forth in Section 2.05(a)
above and/or in accordance with this Section 2.05(c). The Trustee shall
re-convey to the related Originator or the Seller, as applicable, the Mortgage
Loan to be released pursuant hereto in the same manner, and on the same terms
and conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty.

      Section 2.06 Grant Clause.

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<PAGE>

      (a) It is intended that the conveyance of the Depositor's right, title and
interest in and to property constituting the Trust Fund pursuant to this
Agreement shall constitute, and shall be construed as, a sale of such property
and not a grant of a security interest to secure a loan. However, if such
conveyance is deemed to be in respect of a loan, it is intended that: (1) the
rights and obligations of the parties shall be established pursuant to the terms
of this Agreement; (2) the Depositor hereby grants to the Trustee for the
benefit of the Holders of the Certificates a first priority security interest in
all of the Depositor's right, title and interest in, to and under, whether now
owned or hereafter acquired, the Trust Fund and all proceeds of any and all
property constituting the Trust Fund to secure payment of the Certificates; and
(3) this Agreement shall constitute a security agreement under applicable law.
If such conveyance is deemed to be in respect of a loan and the trust created by
this Agreement terminates prior to the satisfaction of the claims of any Person
holding any Certificate, 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, and all proceeds shall be distributed as herein
provided.

      (b) The Depositor shall, to the extent consistent with this Agreement,
take such reasonable actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans and
the other property described above, such security interest would be deemed to be
a perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of this Agreement. The Depositor will, at
its own expense, make all initial filings on or about the Closing Date and shall
forward a copy of such filing or filings to the Trustee. Without limiting the
generality of the foregoing, the Depositor shall prepare and forward for filing,
or shall cause to be forwarded for filing, at the expense of the Depositor, all
filings necessary to maintain the effectiveness of any original filings
necessary under the relevant UCC to perfect the Trustee's security interest in
or lien on the Mortgage Loans, including without limitation (x) continuation
statements, and (y) such other statements as may be occasioned by (1) any change
of name of an Originator, the Depositor or the Trustee, (2) any change of
location of the place of business or the chief executive office of the Seller or
the Depositor, (3) any transfer of any interest of an Originator or the
Depositor in any Mortgage Loan or (4) any change under the relevant UCC or other
applicable laws. Neither the Originators nor the Depositor shall organize under
the law of any jurisdiction other than the State under which each is organized
as of the Closing Date (whether changing its jurisdiction of organization or
organizing under an additional jurisdiction) without giving 30 days prior
written notice of such action to its immediate and intermediate transferee,
including the Trustee. Before effecting such change, any Originator or the
Depositor proposing to change its jurisdiction of organization shall prepare and
file in the appropriate filing office any financing statements or other
statements necessary to continue the perfection of the interests of its
immediate and intermediate transferees, including the Trustee, in the Mortgage
Loans. In connection with the transactions contemplated by this Agreement, each
of the Originators and the Depositor authorizes its immediate or intermediate
transferee (but not the Trustee) to file in any filing office any initial
financing statements, any amendments to financing statements, any continuation
statements, or any other statements or filings described in this paragraph (b).

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<PAGE>

                                   ARTICLE III

                                THE CERTIFICATES

      Section 3.01 The Certificates.

      (a) The Certificates shall be issuable in registered form only and shall
be securities governed by Article 8 of the New York Uniform Commercial Code. The
Book-Entry Certificates will be evidenced by one or more certificates,
beneficial ownership of which will be held in the dollar denominations in
Certificate Balance, or Notional Amount, as applicable, or in the Percentage
Interests, specified herein. Each Class of Certificates will be issued in the
minimum denominations and integral multiples thereof of the initial Certificate
Balance (or Notional Amount) specified in the Preliminary Statement hereto.

      (b) The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer of the Trustee or of the
Securities Administrator on the Trustee's behalf. Each Certificate shall, on
original issue, be authenticated by the Authenticating Agent upon the order of
the Depositor upon receipt by the Trustee of the Trustee Mortgage Files
described in Section 2.01. No Certificate shall be entitled to any benefit under
this Agreement, or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form provided
for herein, executed by an authorized officer of the Authenticating Agent, by
manual signature, and such certification 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. At any time and from time to time after the execution
and delivery of this Agreement, the Depositor may deliver Certificates executed
by or on behalf of the Trustee to the Authenticating Agent for authentication
and the Authenticating Agent shall authenticate and deliver such Certificates as
in this Agreement provided and not otherwise.

      (c) The Class [B-1], Class [B-2], Class [B-3], Class [P] and Class [A-R]
Certificates offered and sold in reliance on the exemption from registration
under Rule 144A under the Act shall be issued initially in definitive, fully
registered form without interest coupons with the applicable legends set forth
in Exhibit A added to the forms of such Certificates (each, a "Restricted Global
Security").

      Section 3.02 Registration.

      The Securities Administrator is hereby appointed, and the Securities
Administrator hereby accepts its appointment as, initial Certificate Registrar
in respect of the Certificates and shall maintain books for the registration and
for the transfer of Certificates (the "Certificate Register"). The Trustee may
appoint a bank or trust company to act as successor Certificate Registrar. A
registration book shall be maintained for the Certificates collectively. The
Certificate Registrar may resign or be discharged or removed and a new successor
may be appointed in accordance with the procedures and requirements set forth in
Sections 6.06 and 6.07 hereof with respect to the resignation, discharge or
removal of the Securities Administrator and the appointment of a successor
Securities Administrator. The Certificate Registrar may appoint, by a written
instrument delivered to the Holders and the Master Servicer, any bank or trust

                                       53
<PAGE>

company to act as co-registrar under such conditions as the Certificate
Registrar may prescribe; provided, however, that the Certificate Registrar shall
not be relieved of any of its duties or responsibilities hereunder by reason of
such appointment.

      Section 3.03 Transfer and Exchange of Certificates.

      (a) A Certificate (other than Book-Entry Certificates which shall be
subject to Section 3.09 hereof) may be transferred by the Holder thereof only
upon presentation and surrender of such Certificate at the office of the
Certificate Registrar duly endorsed or accompanied by an assignment duly
executed by such Holder or his duly authorized attorney in such form as shall be
satisfactory to the Certificate Registrar. Upon the transfer of any Certificate
in accordance with the preceding sentence, the Securities Administrator on
behalf of the Trustee shall execute, and the Authenticating Agent shall
authenticate and deliver to the transferee, one or more new Certificates of the
same Class and evidencing, in the aggregate, the same aggregate Certificate
Balance (or Notional Amount) as the Certificate being transferred. No service
charge shall be made to a Certificateholder for any registration of transfer of
Certificates, but the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer of Certificates.

      (b) A Certificate may be exchanged by the Holder thereof for any number of
new Certificates of the same Class, in authorized denominations, representing in
the aggregate the same Certificate Balance (or Notional Amount) as the
Certificate surrendered, upon surrender of the Certificate to be exchanged at
the office of the Certificate Registrar duly endorsed or accompanied by a
written instrument of transfer duly executed by such Holder or his duly
authorized attorney in such form as is satisfactory to the Certificate
Registrar. Certificates delivered upon any such exchange will evidence the same
obligations, and will be entitled to the same rights and privileges, as the
Certificates surrendered. No service charge shall be made to a Certificateholder
for any exchange of Certificates, but the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any exchange of Certificates. Whenever any
Certificates are so surrendered for exchange, the Securities Administrator on
behalf of the Trustee shall execute, and the Authenticating Agent shall
authenticate, date and deliver the Certificates which the Certificateholder
making the exchange is entitled to receive.

      (c) By acceptance of a Restricted Certificate, whether upon original
issuance or subsequent transfer, each Holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth thereon and
agrees that it will transfer such a Certificate only as provided herein.

      The following restrictions shall apply with respect to the transfer and
registration of transfer of a Restricted Certificate to a transferee that takes
delivery in the form of a Definitive Certificate:

            (i) The Certificate Registrar shall register the transfer of a
      Restricted Certificate if the requested transfer is (x) to the Depositor
      or an affiliate (as defined in Rule 405 under the 1933 Act) of the
      Depositor or (y) being made to a "qualified

                                       54
<PAGE>

      institutional buyer" (a "QIB") as defined in Rule 144A under the
      Securities Act of 1933, as amended (the "Act") by a transferor that has
      provided the Certificate Registrar with a certificate in the form of
      Exhibit H hereto; and

            (ii) The Certificate Registrar shall register the transfer of a
      Restricted Certificate if the requested transfer is being made to an
      "accredited investor" under Rule 501(a)(1), (2), (3) or (7) under the Act,
      or to any Person all of the equity owners in which are such accredited
      investors, by a transferor who furnishes to the Certificate Registrar a
      letter of the transferee substantially in the form of Exhibit I hereto.

      (d) No transfer of an ERISA-Restricted Certificate in the form of a
Definitive Certificate shall be made to any Person or shall be effective unless
the Certificate Registrar, on behalf of the Trustee, has received (A) a
certificate substantially in the form of Exhibit J hereto (or Exhibit B, in the
case of a Residual Certificate) from such transferee or (B) an Opinion of
Counsel satisfactory to the Certificate Registrar and the Securities
Administrator to the effect that the purchase and holding of such a Certificate
will not constitute or result in any nonexempt prohibited transactions under
Title I of ERISA or Section 4975 of the Code and will not subject the
Certificate Registrar, the Trustee, the Master Servicer, the Depositor or the
Securities Administrator to any obligation in addition to those undertaken in
the Agreement; provided, however, that the Certificate Registrar will not
require such certificate or opinion in the event that, as a result of a change
of law or otherwise, counsel satisfactory to the Certificate Registrar has
rendered an opinion to the effect that the purchase and holding of an
ERISA-Restricted Certificate by a Plan or a Person that is purchasing or holding
such a Certificate with the assets of a Plan will not constitute or result in a
prohibited transaction under Title I of ERISA or Section 4975 of the Code and
will not subject the Certificate Registrar, the Trustee, the Master Servicer,
the Depositor or the Securities Administrator to any obligation in addition to
those undertaken in this Agreement. Each Transferee of an ERISA-Restricted
Certificate that is a Book-Entry Certificate shall be deemed to have made the
appropriate representation set forth in paragraph 2 and the representation set
forth in paragraph 3 of Exhibit J. The preparation and delivery of the
certificate and opinions referred to above shall not be an expense of the Trust
Fund, the Certificate Registrar, the Trustee, the Master Servicer, the Depositor
or the Securities Administrator.

      Notwithstanding the foregoing, no opinion or certificate shall be required
for the initial issuance of the ERISA-Restricted Certificates to the
Underwriter. The Certificate Registrar shall have no obligation to monitor
transfers of Book-Entry Certificates that are ERISA-Restricted Certificates and
shall have no liability for transfers of such Certificates in violation of the
transfer restrictions. The Certificate Registrar shall be under no liability to
any Person for any registration of transfer of any ERISA-Restricted Certificate
that is in fact not permitted by this Section 3.03(d) and neither the Securities
Administrator nor the Paying Agent shall have any liability for making any
payments due on such Certificate to the Holder thereof or taking any other
action with respect to such Holder under the provisions of this Agreement so
long as the transfer was registered by the Certificate Registrar in accordance
with the foregoing requirements. The Securities Administrator, on behalf of the
Trustee, shall be entitled, but not obligated, to recover from any Holder of any
ERISA-Restricted Certificate that was in fact a Plan or a Person acting on
behalf of a Plan any payments made on such ERISA-Restricted Certificate at and
after such time. Any such payments so recovered by the Securities Administrator,
on

                                       55
<PAGE>

behalf of the Trustee, shall be paid and delivered by the Securities
Administrator, on behalf of the Trustee, to the last preceding Holder of such
Certificate that is not such a Plan or Person acting on behalf of a Plan.

      (e) As a condition of the registration of transfer or exchange of any
Certificate, the Certificate Registrar may require the certified taxpayer
identification number of the owner of the Certificate and the payment of a sum
sufficient to cover any tax or other governmental charge imposed in connection
therewith; provided, however, that the Certificate Registrar shall have no
obligation to require such payment or to determine whether or not any such tax
or charge may be applicable. No service charge shall be made to the
Certificateholder for any registration, transfer or exchange of a Certificate.

      (f) Notwithstanding anything to the contrary contained herein, no Residual
Certificate may be owned, pledged or transferred, directly or indirectly, by or
to (i) a Disqualified Organization or (ii) an individual, corporation or
partnership or other person unless such person (A) is not a Non-U.S. Person or
(B) is a Non-U.S. Person that holds a Residual Certificate in connection with
the conduct of a trade or business within the United States and has furnished
the transferor and the Certificate Registrar with an effective Internal Revenue
Service Form W-8ECI or successor form at the time and in the manner required by
the Code (any such person who is not covered by clause (A) or (B) above is
referred to herein as a "Non-permitted Foreign Holder").

      Prior to and as a condition of the registration of any transfer, sale or
other disposition of a Residual Certificate, the proposed transferee shall
deliver to the Certificate Registrar an affidavit in substantially the form
attached hereto as Exhibit B representing and warranting, among other things,
that such transferee is neither a Disqualified Organization, an agent or nominee
acting on behalf of a Disqualified Organization, nor a Non-permitted Foreign
Holder (any such transferee, a "Permitted Transferee"), and the proposed
transferor shall deliver to the Trustee and the Certificate Registrar an
affidavit in substantially the form attached hereto as Exhibit C. In addition,
the Trustee or the Certificate Registrar may (but shall have no obligation to)
require, prior to and as a condition of any such transfer, the delivery by the
proposed transferee of an Opinion of Counsel, addressed to the Trustee and the
Certificate Registrar, that such proposed transferee or, if the proposed
transferee is an agent or nominee, the proposed beneficial owner, is not a
Disqualified Organization, agent or nominee thereof, or a Non-permitted Foreign
Holder. Notwithstanding the registration in the Certificate Register of any
transfer, sale, or other disposition of a Residual Certificate to a Disqualified
Organization, an agent or nominee thereof, or Non-permitted Foreign Holder, such
registration shall be deemed to be of no legal force or effect whatsoever and
such Disqualified Organization, agent or nominee thereof, or Non-permitted
Foreign Holder shall not be deemed to be a Certificateholder for any purpose
hereunder, including, but not limited to, the receipt of distributions on such
Residual Certificate. The Depositor and the Certificate Registrar shall be under
no liability to any Person for any registration or transfer of a Residual
Certificate to a Disqualified Organization, agent or nominee thereof or
Non-permitted Foreign Holder or for the Paying Agent making any payments due on
such Residual Certificate to the Holder thereof or for taking any other action
with respect to such Holder under the provisions of the Agreement, so long as
the transfer was effected in accordance with this Section 3.03(f), unless the
Certificate Registrar shall have actual knowledge at the time of such transfer
or the time of such payment or other action that the transferee is a
Disqualified

                                       56
<PAGE>

Organization, or an agent or nominee thereof, or Non-permitted Foreign Holder.
The Certificate Registrar shall be entitled to recover from any Holder of a
Residual Certificate that was a Disqualified Organization, agent or nominee
thereof, or Non-permitted Foreign Holder at the time it became a Holder or any
subsequent time it became a Disqualified Organization, agent or nominee thereof,
or Non-permitted Foreign Holder, all payments made on such Residual Certificate
at and after either such times (and all costs and expenses, including but not
limited to attorneys' fees, incurred in connection therewith). Any payment (not
including any such costs and expenses) so recovered by the Certificate Registrar
shall be paid and delivered to the last preceding Holder of such Residual
Certificate.

      If any purported transferee shall become a registered Holder of a Residual
Certificate in violation of the provisions of this Section 3.03(f), then upon
receipt of written notice to the Trustee or the Certificate Registrar that the
registration of transfer of such Residual Certificate was not in fact permitted
by this Section 3.03(f), the last preceding Permitted Transferee shall be
restored to all rights as Holder thereof retroactive to the date of such
registration of transfer of such Residual Certificate. The Depositor, the
Certificate Registrar and the Trustee shall be under no liability to any Person
for any registration of transfer of a Residual Certificate that is in fact not
permitted by this Section 3.03(f), or for the Paying Agent making any payment
due on such Certificate to the registered Holder thereof or for taking any other
action with respect to such Holder under the provisions of this Agreement so
long as the transfer was registered upon receipt of the affidavit described in
the preceding paragraph of this Section 3.03(f).

      (g) Each Holder or Certificate Owner of a Restricted Certificate,
ERISA-Restricted Certificate or Residual Certificate, or an interest therein, by
such Holder's or Owner's acceptance thereof, shall be deemed for all purposes to
have consented to the provisions of this section.

      Section 3.04 Cancellation of Certificates.

      Any Certificate surrendered for registration of transfer or exchange shall
be cancelled and retained in accordance with normal retention policies with
respect to cancelled certificates maintained by the Certificate Registrar.

      Section 3.05 Replacement of Certificates.

      If (i) any Certificate is mutilated and is surrendered to the Trustee or
the Certificate Registrar or (ii) the Certificate Registrar receives evidence to
its satisfaction of the destruction, loss or theft of any Certificate, and there
is delivered to the Trustee and the Certificate Registrar such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Depositor, the Trustee or the Certificate Registrar
that such destroyed, lost or stolen Certificate has been acquired by a protected
purchaser, the Securities Administrator on behalf of the Trustee shall execute
and the Authenticating 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 Certificate Balance. Upon the issuance of any new
Certificate under this Section 3.05, the Trustee, the Depositor or the
Certificate Registrar may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and

                                       57
<PAGE>

expenses of the Trustee, the Depositor or the Certificate Registrar) connected
therewith. Any replacement Certificate issued pursuant to this Section 3.05
shall constitute complete and indefeasible evidence of ownership in the
applicable Trust Fund, as if originally issued, whether or not the lost, stolen
or destroyed Certificate shall be found at any time.

      If after the delivery of such new Certificate, a protected purchaser of
the original Certificate in lieu of which such new Certificate was issued
presents for payment such original Certificate, the Depositor, the Certificate
Registrar and the Trustee or any agent shall be entitled to recover such new
Certificate from the Person to whom it was delivered or any Person taking
therefrom, except a protected purchaser, and shall be entitled to recover upon
the security or indemnity provided therefor to the extent of any loss, damage,
cost or expenses incurred by the Depositor, the Certificate Registrar, the
Trustee or any agent in connection therewith.

      Section 3.06 Persons Deemed Owners.

      Subject to the provisions of Section 3.09 with respect to Book-Entry
Certificates, the Depositor, the Master Servicer, the Securities Administrator,
the Trustee, the Certificate Registrar, the Paying Agent and any agent of any of
them shall treat the Person in whose name any Certificate is registered upon the
books of the Certificate Registrar as the owner of such Certificate for the
purpose of receiving distributions pursuant to Sections 5.01 and 5.02 and for
all other purposes whatsoever, and neither the Depositor, the Master Servicer,
the Securities Administrator, the Trustee, the Certificate Registrar, the Paying
Agent nor any agent of any of them shall be affected by notice to the contrary.

      Section 3.07 Temporary Certificates.

      (a) Pending the preparation of definitive Certificates, upon the order of
the Depositor, the Securities Administrator on behalf of the Trustee shall
execute and the Authenticating Agent shall authenticate and deliver temporary
Certificates that are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Certificates in lieu of which they are issued and with such
variations as the authorized officers executing such Certificates may determine,
as evidenced by their execution of such Certificates.

      (b) If temporary Certificates are issued, the Depositor will cause
definitive Certificates to be prepared without unreasonable delay. After the
preparation of definitive Certificates, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of the temporary
Certificates at the office or agency of the Certificate Registrar without charge
to the Holder. Upon surrender for cancellation of any one or more temporary
Certificates, the Securities Administrator on behalf of the Trustee shall
execute and the Authenticating Agent shall authenticate and deliver in exchange
therefor a like aggregate Certificate Balance of definitive Certificates of the
same Class in the authorized denominations. Until so exchanged, the temporary
Certificates shall in all respects be entitled to the same benefits under this
Agreement as definitive Certificates of the same Class.

      Section 3.08 Appointment of Paying Agent.

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<PAGE>

      The Securities Administrator is hereby appointed as the initial Paying
Agent. The Trustee may appoint a successor Paying Agent (which may be the
Trustee) for the purpose of making distributions to the Certificateholders
hereunder. The Trustee shall cause any Paying Agent, other than the Securities
Administrator, to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee that such Paying Agent will hold all
sums held by it for the payment to the Certificateholders in an Eligible Account
(which shall be the Distribution Account) in trust for the benefit of the
Certificateholders entitled thereto until such sums shall be paid to the
Certificateholders. All funds remitted by the Securities Administrator to any
such Paying Agent for the purpose of making distributions shall be paid to the
Certificateholders on each Distribution Date and any amounts not so paid shall
be returned on such Distribution Date to the Securities Administrator. If the
Paying Agent is not the Trustee or the Securities Administrator, the Securities
Administrator shall cause to be remitted to the Paying Agent on or before the
Business Day prior to each Distribution Date, by wire transfer in immediately
available funds, the funds to be distributed on such Distribution Date. Any
Paying Agent shall be either a bank or trust company or otherwise authorized
under law to exercise corporate trust powers.

      Section 3.09 Book-Entry Certificates.

      (a) Each Class of Book-Entry Certificates, upon original issuance, shall
be issued in the form of one or more typewritten Certificates representing the
Book-Entry Certificates. The Book-Entry Certificates shall initially be
registered on the Certificate Register in the name of the nominee of the
Clearing Agency, and no Certificate Owner will receive a definitive certificate
representing such Certificate Owner's interest in the Book-Entry Certificates,
except as provided in Section 3.09(c). Unless Definitive Certificates have been
issued to Certificate Owners of Book-Entry Certificates pursuant to Section
3.09(c):

            (i) the provisions of this Section 3.09 shall be in full force and
      effect;

            (ii) the Certificate Registrar, the Paying Agent and the Trustee
      shall deal with the Clearing Agency for all purposes (including the making
      of distributions on the Book-Entry Certificates) as the authorized
      representatives of the Certificate Owners and the Clearing Agency and
      shall be responsible for crediting the amount of such distributions to the
      accounts of such Persons entitled thereto, in accordance with the Clearing
      Agency's normal procedures;

            (iii) to the extent that the provisions of this Section 3.09
      conflict with any other provisions of this Agreement, the provisions of
      this Section 3.09 shall control; and

            (iv) the rights of Certificate Owners shall be exercised only
      through the Clearing Agency and the Clearing Agency Participants and shall
      be limited to those established by law and agreements between such
      Certificate Owners and the Clearing Agency and/or the Clearing Agency
      Participants. Unless and until Definitive Certificates are issued pursuant
      to Section 3.09(c), the initial Clearing Agency will make book-entry
      transfers among the Clearing Agency Participants and receive and transmit
      distributions of principal of and interest on the Book-Entry Certificates
      to such Clearing Agency Participants.

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<PAGE>

      (b) Whenever notice or other communication to the Certificateholders is
required under this Agreement, unless and until Definitive Certificates shall
have been issued to Certificate Owners pursuant to Section 3.09(c), the
Securities Administrator shall give all such notices and communications
specified herein to be given to Holders of the Book-Entry Certificates to the
Clearing Agency.

      (c) If (i) (A) the Clearing Agency or the Depositor advises the
Certificate Registrar in writing that the Clearing Agency is no longer willing
or able to discharge properly its responsibilities with respect to the
Book-Entry Certificates, and (B) the Depositor is unable to locate a qualified
successor satisfactory to the Depositor and the Certificate Registrar or (ii)
after the occurrence of an Event of Default, Certificate Owners representing
beneficial interests aggregating not less than 50% of the Class Principal
Balance of a Class of Book-Entry Certificates advise the Paying Agent and the
Clearing Agency through the Clearing Agency Participants in writing that the
continuation of a book-entry system through the Clearing Agency is no longer in
the best interests of the Certificate Owners of a Class of Book-Entry
Certificates, the Certificate Registrar shall notify the Clearing Agency to
effect notification to all Certificate Owners, through the Clearing Agency, of
the occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to the
Certificate Registrar of the Book-Entry Certificates by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency for
registration, the Certificate Registrar shall issue the Definitive Certificates.
Neither the Depositor, the Certificate Registrar 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. Upon the issuance of
Definitive Certificates all references herein to obligations imposed upon or to
be performed by the Clearing Agency shall be deemed to be imposed upon and
performed by the Certificate Registrar, to the extent applicable, with respect
to such Definitive Certificates and the Certificate Registrar shall recognize
the holders of the Definitive Certificates as Certificateholders hereunder.
Notwithstanding the foregoing, the Certificate Registrar, upon the instruction
of the Depositor, shall have the right to issue Definitive Certificates on the
Closing Date in connection with credit enhancement programs.

                                   ARTICLE IV

                        ADMINISTRATION OF THE TRUST FUND

      Section 4.01 Custodial Accounts; Distribution Account.

      (a) On or prior to the Closing Date, the Master Servicer shall have caused
each Servicer to establish and maintain one or more Custodial Accounts, as
provided in the related Purchase and Servicing Agreement, into which all
Scheduled Payments and unscheduled payments with respect to the related Mortgage
Loans, net of any deductions or reimbursements permitted under the related
Purchase and Servicing Agreement, shall be deposited. On each Distribution
Account Deposit Date, the Servicers shall remit to the Securities Administrator
for deposit into the Distribution Account, all amounts so required to be
deposited into such account in accordance with the terms of the related Purchase
and Servicing Agreements.

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<PAGE>

      (b) The Securities Administrator, as Paying Agent for the Trust, shall
establish and maintain an Eligible Account entitled "Distribution Account of
[LaSalle Bank National Association], as Trustee for the benefit of Morgan
Stanley Mortgage Loan Trust 200_-_, Holders of Mortgage Pass-Through
Certificates." The Securities Administrator shall, promptly upon receipt from
the Servicers on each related Distribution Account Deposit Date, deposit into
the Distribution Account and retain on deposit until the related Distribution
Date the following amounts:

            (i) the aggregate of collections with respect to the Mortgage Loans
      remitted by the Servicers from the related Custodial Accounts in
      accordance with the Purchase and Servicing Agreements;

            (ii) any amounts required to be deposited by the Master Servicer
      with respect to the Mortgage Loans for the related Due Period pursuant to
      this Agreement, including the amount of any Advances or Compensating
      Interest Payments with respect to the Mortgage Loans not paid by the
      Servicers; and

            (iii) any other amounts so required to be deposited in the
      Distribution Account in the related Due Period pursuant to this Agreement.

      (c) In the event the Master Servicer or a Servicer has remitted in error
to the Distribution Account any amount not required to be remitted in accordance
with the definition of Available Funds, it may at any time direct the Securities
Administrator to withdraw such amount from the Distribution Account for
repayment to the Master Servicer or Servicer, as applicable, by delivery of an
Officer's Certificate to the Securities Administrator and the Trustee which
describes the amount deposited in error.

      (d) On each Distribution Date and Initial Optional Purchase Date, the
Securities Administrator, as Paying Agent, shall withdraw from funds available
in the Distribution Account and distribute the Available Funds to the
Certificateholders and any other parties entitled thereto in the amounts and
priorities set forth in Section 5.02. The Securities Administrator may from time
to time withdraw from the Distribution Account and pay the Master Servicer, the
Trustee, the Custodians, the Securities Administrator or any Servicer any
amounts permitted to be paid or reimbursed to such Person from funds in the
Distribution Account pursuant to this Agreement, any Purchase and Servicing
Agreement or the Custodial Agreement.

      (e) [Reserved].

      (f) Funds in the Distribution Account may be invested in Permitted
Investments selected by and at the written direction of the Securities
Administrator, which shall mature not later than one Business Day prior to the
Distribution Date (except that if such Permitted Investment is an obligation of
the Securities Administrator or any of its Affiliates, or is managed or advised
by the Securities Administrator or any Affiliate, then such Permitted Investment
shall mature not later than such applicable Distribution Date) and any such
Permitted Investment shall not be sold or disposed of prior to its maturity. All
such Permitted Investments shall be made in the name of the Trustee (in its
capacity as such) or its nominee. All income and gain realized from any
Permitted Investment of amounts on deposit in the Distribution Account shall be
for

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<PAGE>

the benefit of the Securities Administrator, as additional compensation for its
duties hereunder, and shall be subject to its withdrawal or order from time to
time, and shall not be part of the Trust Fund; provided, however, that if [Wells
Fargo Bank, National Association] is no longer the Master Servicer and the
Securities Administrator, any such income and gain shall be used to pay the
successor Master Servicer and the successor Securities Administrator, the Master
Servicer Compensation and the Securities Administrator Compensation,
respectively. The amount of any losses incurred in respect of any such
investments shall be deposited in such Distribution Account by the Securities
Administrator out of its own funds, without any right of reimbursement therefor,
immediately as realized.

      Section 4.02 Permitted Withdrawals from the Custodial Accounts and the
                   Distribution Account.

      (a) Each Servicer may from time to time make withdrawals from its
Custodial Account for the following purposes:

            (i) to reimburse itself for unreimbursed Advances made by it, such
      right of reimbursement pursuant to this subclause (i) being limited to
      amounts received on the Mortgage Loan(s) in respect of which any such
      Advance was made;

            (ii) to reimburse itself for any Nonrecoverable Advance previously
      made by it;

            (iii) to reimburse itself for unreimbursed Servicer Advances, each
      Servicer's right to reimbursement pursuant to this clause (a) with respect
      to any Mortgage Loan being limited to amounts received on such Mortgage
      Loan(s) which represent late recoveries of the payments for which such
      advances were made pursuant to the related Purchase and Servicing
      Agreement;

            (iv) to reimburse itself for expenses incurred by it and
      reimbursable pursuant to the related Purchase and Servicing Agreement; and

            (v) to withdraw any amount deposited in the Custodial Account and
      not required to be deposited therein.

      To the extent required by the related Purchase and Servicing Agreement
each Servicer shall keep and maintain separate accounting, on a Mortgage Loan by
Mortgage Loan basis, for the purpose of justifying any withdrawal from its
Custodial Account pursuant to such subclauses (i), (ii), (iii), (iv) and (v).
Prior to making any withdrawal from its Custodial Account pursuant to subclause
(ii), the related Servicer shall deliver to the Master Servicer an Officer's
Certificate of a Servicing Officer indicating the amount of any previous Advance
determined by the Servicer to be a Nonrecoverable Advance and identifying the
related Mortgage Loans(s), and their respective portions of such Nonrecoverable
Advance.

      (b) The Securities Administrator shall withdraw funds from the
Distribution Account for distributions to Certificateholders in the manner
specified in this Agreement (and to withhold from the amounts so withdrawn, the
amount of any taxes that it is authorized to withhold

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<PAGE>

pursuant to Section 10.01). In addition, the Securities Administrator may from
time to time make withdrawals from the Distribution Account for the following
purposes:

            (i) to pay all costs and expenses described in clause (d) of the
      definition of "Available Funds";

            (ii) (x) for so long as [Wells Fargo Bank, National Association] is
      the Master Servicer and the Securities Administrator, to pay to the Master
      Servicer the investment earnings on the Distribution Account as its
      compensation for the related Distribution Date and (y) thereafter,
      concurrently, to the Master Servicer and the Securities Administrator, the
      Master Servicer Compensation and the Securities Administrator
      Compensation, respectively;

            (iii) to withdraw and return to the Master Servicer any amount
      deposited in the Distribution Account and not required to be deposited
      therein; and

            (iv) to clear and terminate the Distribution Account upon
      termination of the Agreement pursuant to Section 7.01 hereof.

            (v) [Reserved].

      Section 4.03 [Reserved].

      Section 4.04 [Reserved].

      Section 4.05 Reports to Trustee and Certificateholders.

      On each Distribution Date, the Securities Administrator shall have
prepared and shall make available to the Trustee, the Depositor, the Rating
Agencies and each Certificateholder a written report setting forth the following
information (on the basis of Mortgage Loan level information obtained from the
Master Servicer and the Servicers):

      (a) the amount of the distributions, separately identified, with respect
to each Class of Certificates;

      (b) the amount of the distributions set forth in the clause (a) allocable
to principal, separately identifying the aggregate amount of any Principal
Prepayments, liquidation proceeds or other unscheduled recoveries of principal
included in that amount;

      (c) the amount of the distributions set forth in the clause (a) allocable
to interest and how it was calculated;

      (d) the amount of any unpaid Class Interest Shortfall, both distributed
and remaining unpaid, and the related accrued interest thereon, with respect to
each Class of Certificates;

      (e) the Class Principal Balance or Notional Amount of each Class of
Certificates after giving effect to the distribution of principal on that
Distribution Date;

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<PAGE>

      (f) the aggregate Stated Principal Balance of the Mortgage Loans in each
Loan Group and in the Trust Fund and the Collateral Allocation Group Principal
Balance at the end of the related Prepayment Period, and the applicable Weighted
Average Net Mortgage Rate of each Loan Group and the Mortgage Pool and the
Applicable Fraction of each Mortgage Loan in each Collateral Allocation Group at
the beginning of the related Due Period and the weighted average remaining term
to maturity of each Loan Group and the Mortgage Pool and the Applicable Fraction
of each Mortgage Loan in each Collateral Allocation Group;

      (g) the Senior Percentage and the Subordinated Percentage for each
Collateral Allocation Group and for the Mortgage Pool for the following
Distribution Date;

      (h) the Senior Prepayment Percentage and Subordinate Prepayment Percentage
for each Collateral Allocation Group for the following Distribution Date;

      (i) in the aggregate and with respect to each Loan Group and each
Collateral Allocation Group, the amount of the Servicing Fee paid to or retained
by the Master Servicer and by each Servicer, respectively, and in the aggregate
with respect to each Loan Group;

      (j) in the aggregate and with respect to each Loan Group and Collateral
Allocation Group, the amount of Advances for the related Due Period;

      (k) in the aggregate and with respect to each Loan Group and Collateral
Allocation Group (based upon the Applicable Fractions of the Mortgage Loans),
determined by use of the MBA Method, the number and Stated Principal Balance of
the Mortgage Loans that were (A) Delinquent (exclusive of Mortgage Loans in
foreclosure) (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or more days, (B)
in foreclosure and Delinquent (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or
more days and (C) in bankruptcy as of the close of business on the last day of
the calendar month preceding that Distribution Date;

      (l) in the aggregate and with respect to each Loan Group and Collateral
Allocation Group (based upon the Applicable Fractions of the Mortgage Loans),
the total number and principal balance and market value (if available) of any
REO properties as of the close of business on the last day of the preceding Due
Period;

      (m) in the aggregate and with respect to each Loan Group and Collateral
Allocation Group (based upon the Applicable Fractions of the Mortgage Loans),
the amount of Realized Losses incurred during the preceding calendar month;

      (n) in the aggregate and with respect to each Loan Group and Collateral
Allocation Group (based upon the Applicable Fractions of the Mortgage Loans),
the cumulative amount of Realized Losses incurred since the Closing Date;

      (o) the Realized Losses, if any, allocated to each Class of Certificates
on that Distribution Date;

      (p) the Class Principal Balance or Notional Amount, as applicable, of each
Class of Certificates after giving effect to the distribution of principal on
the Distribution Date;

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<PAGE>

      (q) the Special Hazard Loss Coverage Amount, the Fraud Loss Coverage
Amount and the Bankruptcy Loss Coverage Amount, in each case as of the related
Determination Date;

      (r) the Pass-Through Rate for each Class of Certificates for that
Distribution Date;

      (s) the amount of any Principal Transfer Amounts or Interest Transfer
Amounts paid to an Undercollateralized Group or Principal Transfers between
Groups pursuant to Section 5.08 hereof;

      (t) the total amount of Prepayment Penalties collected, as reported by the
Servicers; and

      (u) the Record Date for each Class of Certificates for such Distribution
Date.

      The Securities Administrator shall make such reports available each month
via its website at http://www.ctslink.com. Assistance in using the website may
be obtained by calling the Securities Administrator's customer service desk at
(301) 815-6600. Certificateholders and other parties that are unable to use the
website are entitled to have a paper copy mailed to them via first class mail by
contacting the Securities Administrator and indicating such. In preparing or
furnishing the foregoing reports, the Securities Administrator shall be entitled
to rely conclusively on the accuracy of the information or data regarding the
Mortgage Loans and the related REO Properties that has been provided to the
Securities Administrator by the Master Servicer and the Servicers, and neither
the Trustee nor the Securities Administrator shall be obligated to verify,
recompute, reconcile or recalculate any such information or data.

      Upon the reasonable advance written request of any Certificateholder that
is a savings and loan, bank or insurance company, which request, if received by
the Trustee or any agent thereof, shall be promptly forwarded to the Securities
Administrator, the Securities Administrator shall provide, or cause to be
provided, (or, to the extent that such information or documentation is not
required to be provided by a Servicer under the applicable Purchase and
Servicing Agreement, shall use reasonable efforts to obtain such information and
documentation from such Servicer, and provide) to such Certificateholders such
reports and access to information and documentation regarding the Mortgage Loans
as such Certificateholders may reasonably deem necessary to comply with
applicable regulations of the Office of Thrift Supervision or its successor or
other regulatory authorities with respect to an investment in the Certificates;
provided, however, that the Securities Administrator shall be entitled to be
reimbursed by such Certificateholders for the Securities Administrator's actual
expenses incurred in providing such reports and access.

                                    ARTICLE V

                    DISTRIBUTIONS TO HOLDERS OF CERTIFICATES

      Section 5.01 Distributions Generally.

      (a) Subject to Section 7.01 respecting the final distribution on the
Certificates, on each Distribution Date the Securities Administrator or the
Paying Agent shall make all distributions in accordance with this Article V.
Such distributions shall be made by check

                                       65
<PAGE>

mailed to each Certificateholder's address as it appears on the Certificate
Register of the Certificate Registrar or, upon written request made to the
Securities Administrator at least five Business Days prior to the related Record
Date by any Certificateholder owning an aggregate initial Certificate Balance of
at least $1,000,000, or in the case of a Class of Interest-Only Certificates or
Residual Certificate, a Percentage Interest of not less than 100%, by wire
transfer in immediately available funds to an account specified in the request
and at the expense of such Certificateholder; provided, however, that the final
distribution in respect of any Certificate shall be made only upon presentation
and surrender of such Certificate at the Certificate Registrar's Corporate Trust
Office; provided, further, that the foregoing provisions shall not apply to any
Class of Certificates as long as such Certificate remains a Book-Entry
Certificate in which case all payments made shall be made through the Clearing
Agency and its Clearing Agency Participants. Notwithstanding the reduction of
the Class Principal Balance of any Class of Certificates to zero, such Class
will be outstanding hereunder (solely for the purpose of receiving distributions
and not for any other purpose) until the termination of the respective
obligations and responsibilities of the Depositor, the Master Servicer, the
Securities Administrator and the Trustee hereunder in accordance with Article
VII. Wire transfers will be made at the expense of the Holder requesting such
wire transfer by deducting a wire transfer fee from the related distribution.
Notwithstanding such final payment of principal of any of the Certificates, each
Residual Certificate will remain outstanding until the termination of each REMIC
and the payment in full of all other amounts due with respect to the Residual
Certificates and at such time such final payment in retirement of any Residual
Certificate will be made only upon presentation and surrender of such
Certificate at the Certificate Registrar's Corporate Trust Office. If any
payment required to be made on the Certificates is to be made on a day that is
not a Business Day, then such payment will be made on the next succeeding
Business Day.

      (b) All distributions or allocations made with respect to the
Certificateholders within each Class on each Distribution Date shall be
allocated among the outstanding Certificates in such Class equally in proportion
to their respective initial Class Principal Balances or initial Class Notional
Amounts (or Percentage Interests).

      Section 5.02 Priorities of Distribution.

      (a) (1) With respect to the Available Funds for Collateral Allocation
Group [1] on each Distribution Date, the Securities Administrator shall withdraw
such Available Funds from the funds available therefore in the Distribution
Account and apply such funds to distributions on the specified Classes of Group
[1] Senior Certificates in the following order and priority and, in each case,
to the extent of such Available Funds remaining:

            (i) [Reserved];

            (ii) [concurrently, to each interest-bearing Class of Group [1]
      Senior Certificates, an amount allocable to interest equal to the related
      Class Optimal Interest Distribution Amount, any shortfall being allocated
      among such Classes in proportion to the amount of the Class Optimal
      Interest Distribution Amount that would have been distributed in the
      absence of such shortfall; provided that prior to an Accrual Termination
      Date, the related Accrual Amount shall be distributed as provided in
      Section 5.02(a)(1)(iii)];

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<PAGE>

            (iii) [Reserved];

            (iv) to each Class of Group [1] Senior Certificates, concurrently as
      follows:

                  (x) to the Class 1-A-P Certificates, an amount allocable to
            the related A-P Formula Principal Amount, up to the outstanding
            Class Principal Balance thereof; and

                  (y) on each Distribution Date prior to the Senior Credit
            Support Depletion Date the related Non-A-P Formula Principal Amount
            up to the amount of the Senior Principal Distribution Amount for
            Collateral Allocation Group [1] for such Distribution Date, will be
            distributed, sequentially, to the following Classes of Certificates
            as follows:

                  1. [to the Class A-R Certificates until its Class Principal
            Balance is reduced to zero; and]

                  2. [to the Class 1-A-1 Certificates, until its Class Principal
            Balance is reduced to zero; and]

            (v) to the Class [1-A-P] Certificates, in an amount up to the Class
      A-P Deferred Amount, from amounts otherwise distributable (without regard
      to this Section 5.02(a)(1)(v)) sequentially, to the Class [B-3], Class
      [B-2], Class [B-1], Class [M-6], Class [M-5], Class [M-4], Class [M-3],
      Class M-2], and Class [M-1] Certificates, in that order, pursuant to
      Section 5.02(a)(9) hereof.

      (2) [With respect to Available Funds for Collateral Allocation Group [2],
on each Distribution Date, the Securities Administrator shall withdraw the
Available Funds from the funds available therefor in the Distribution Account
and apply such funds to distributions on the specified Classes of Group 2
Certificates in the following order and priority and, in each case, to the
extent of Available Funds remaining:]

            (i) [Reserved];

            (ii) [concurrently, to each interest-bearing Class of Group [2]
      Senior Certificates, an amount allocable to interest equal to the related
      Class Optimal Interest Distribution Amount, any shortfall being allocated
      among such Classes in proportion to the amount of the Class Optimal
      Interest Distribution Amount that would have been distributed in the
      absence of such shortfall; provided that prior to an Accrual Termination
      Date, the related Accrual Amount shall be distributed as provided in
      Section 5.02(a)(2)(iii);]

            (iii) [Reserved]; and

            (iv) to each Class of Group [2] Senior Certificates, concurrently as
      follows:

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                  (x) [to the Class [2-A-P] Certificates, an amount allocable to
            the related A-P Formula Principal Amount, up to the outstanding
            Class Principal Balance thereof; and]

                  (y) [on each Distribution Date prior to the Senior Credit
            Support Depletion Date the related Non-A-P Formula Principal Amount
            up to the amount of the Senior Principal Distribution Amount for
            Collateral Allocation Group [2] for such Distribution Date, will be
            distributed, to the Class 2-A-1 Certificates, until its Class
            Principal Balance is reduced to zero; and]

            (v) to the Class [2-A-P] Certificates, in an amount up to the Class
      A-P Deferred Amount, from amounts otherwise distributable (without regard
      to this Section 5.02(a)(2)(v)) sequentially, to the Class [B-3], Class
      B-2], Class B-1], Class [M-6], Class M-5], Class [M-4], Class [M-3], Class
      [M-2], and Class [M-1] Certificates, in that order, pursuant to Section
      5.02(a)(9) hereof.

      (3) [On each Distribution Date, after making the distributions described
in Section 5.02(a)(1) and Section 5.02(a)(2) above, Available Funds from each
Loan Group after making the distributions described in Section 5.02(a)(1) and
Section 5.02(a)(2) will be distributed to the Senior Certificates to the extent
provided in Section 5.08 hereof.]

      (4) [On each Distribution Date, Available Funds from all of the Loan
Groups remaining after making the distributions described in Section 5.02(a)(1),
Section 5.02(a)(2) and Section 5.02(a)(3) above, will be distributed to the
Subordinated Certificates and the Class [A-R] Certificates in the following
order and priority and, in each case, to the extent of such funds remaining:

                  (A) to the Class [M-1] Certificates, an amount allocable to
            interest equal to the Class Optimal Interest Distribution Amount for
            such Class for such Distribution Date;

                  (B) to the Class [M-1] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (C) to the Class [M-2] Certificates, an amount allocable to
            interest equal to the Class Optimal Interest Distribution Amount for
            such Class for such Distribution Date;

                  (D) to the Class [M-2] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (E) to the Class [M-3] Certificates, an amount allocable to
            interest equal to the amount of the Class Optimal Interest
            Distribution Amount for such Class for such Distribution Date;

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<PAGE>

                  (F) to the Class [M-3] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (G) to the Class [M-4] Certificates, an amount allocable to
            interest equal to the amount of the Class Optimal Interest
            Distribution Amount for such Class for such Distribution Date;

                  (H) to the Class [M-4] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (I) to the Class [M-5] Certificates, an amount allocable to
            interest equal to the Class Optimal Interest Distribution Amount for
            such Class for such Distribution Date;

                  (J) to the Class [M-5] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (K) to the Class [M-6] Certificates, an amount allocable to
            interest equal to the Class Optimal Interest Distribution Amount for
            such Class for such Distribution Date;

                  (L) to the Class [M-6] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (M) to the Class [B-1] Certificates, an amount allocable to
            interest equal to the Class Optimal Interest Distribution Amount for
            such Class for such Distribution Date;

                  (N) to the Class [B-1] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (O) to the Class [B-2] Certificates, an amount allocable to
            interest equal to the Class Optimal Interest Distribution Amount for
            such Class for such Distribution Date;

                  (P) to the Class [B-2] Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero;

                  (Q) to the Class [B-3] Certificates, an amount allocable to
            interest equal to the amount of the Class Optimal Interest
            Distribution Amount for such Class for such Distribution Date;

                                       69
<PAGE>

                  (R) to the Class [B-3 Certificates, an amount allocable to
            principal equal to its Pro Rata Share for such Distribution Date
            until the Class Principal Balance thereof is reduced to zero; and

                  (S) to the Class [A-R] Certificates, any remaining funds in
            the Trust Fund; provided, however, that such amounts shall not
            include the $[100] held in trust for the Class P Certificates.]

      On each Distribution Date, all amounts representing Prepayment Penalties
received by the Securities Administrator with respect to the related Prepayment
Period will be distributed to the holders of the Class P Certificates. On the
Distribution Date in ___________ 200_, the $[100] held in trust for the Class P
Certificates will be distributed to the holders of the Class P Certificates.

      On any Distribution Date, amounts distributed in respect of Class A-P
Deferred Amounts will not reduce the Class Principal Balance of the related
Class of Class A-P Certificates.

      On any Distribution Date, to the extent the Amount Available for Senior
Principal related to a Collateral Allocation Group is insufficient to make the
full distribution required to be made pursuant to subclause (iv)(x) above for
such Collateral Allocation Group, (A) the amount distributable on the related
Class of Class A-P Certificates in respect of principal pursuant to such
subclause (iv)(x) shall be equal to the product of (1) the Amount Available for
Senior Principal for that Collateral Allocation Group and Distribution Date and
(2) a fraction, the numerator of which is the A-P Formula Principal Amount for
that Collateral Allocation Group and Distribution Date and the denominator of
which is the sum of the A-P Formula Principal Amount and the Senior Principal
Distribution Amount for that Collateral Allocation Group and Distribution Date
and (B) the amount distributable on the Senior Certificates, other than the
related Class of Class A-P Certificates, in respect of principal pursuant to
clause (iv)(y) shall be equal to the product of (1) the Amount Available for
Senior Principal for that Collateral Allocation Group and Distribution Date and
(2) a fraction, the numerator of which is the Senior Principal Distribution
Amount for that Collateral Allocation Group and Distribution Date and the
denominator of which is the sum of the Senior Principal Distribution Amount and
the A-P Formula Principal Amount for that Collateral Allocation Group and
Distribution Date.

      (b) On each Distribution Date with respect to each Class or Component of
Accrual Certificates, the Accrual Amount for such Class or Component for such
Distribution Date shall not (except as provided in the second to last sentence
in this paragraph) be distributed as interest with respect to such Class or
Component of Accrual Certificates, but shall instead be added to the related
Class Principal Balance of such Class on the related Distribution Date. With
respect to any Distribution Date on which principal payments on any Class or
Component of Accrual Certificates are distributed pursuant to Section
[5.02(a)(1)(iv)(y) or Section 5.02(a)(2)(iv)(y)], as applicable, the related
Accrual Amount shall be deemed to have been added on such Distribution Date to
the related Class Principal Balance or Component Balance (and included in the
amount distributable on the related Class or Classes or Component of Accretion
Directed Certificates pursuant to [Section 5.02(a)(1)(iii) or Section
5.02(a)(2)(iii)], as applicable, for such Distribution Date) and the related
distribution thereon shall be deemed to have been applied concurrently towards
the reduction of all or a portion of the amount so added and, to the extent of
any excess,

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<PAGE>

towards the reduction of the Class Principal Balance or Component Balance of
such Class or Component of Accrual Certificates immediately prior to such
Distribution Date.

      (c) On each Distribution Date on or after the Senior Credit Support
Depletion Date, notwithstanding the allocations and priorities set forth in
Section [5.02(a)(1)(iv)(y)] and Section [5.02(a)(2)(iv)(y)], the portion of
Available Funds available to be distributed as principal of the Senior
Certificates in each Senior Certificate Group (other than any related Class of
Class A-P Certificates) shall be distributed concurrently, as principal, on such
Classes, pro rata, on the basis of their respective Class Principal Balances,
until the Class Principal Balances thereof are reduced to zero.

      (d) On each Distribution Date, the amount referred to in clause (i) of the
definition of Class Optimal Interest Distribution Amount for each Class of
Certificates for such Distribution Date shall be reduced for each Class of
Senior Certificates of a Senior Certificate Group and each Class of Subordinated
Certificates by (i) the related Class' pro rata share of Net Prepayment Interest
Shortfalls for such Collateral Allocation Group based (x) with respect to a
Class of Senior Certificates, on the related Class Optimal Interest Distribution
Amount and (y) with respect to a Class of Subordinated Certificates on or prior
to a Senior Termination Date on the Assumed Interest Amount and on or after such
Senior Termination Date, the related Class' Class Optimal Interest Distribution
Amount for such Distribution Date, without taking into account such Net
Prepayment Interest Shortfalls and (ii) the related Class' Allocable Share of
(A) after the Special Hazard Coverage Termination Date, with respect to the
Applicable Fraction of each Mortgage Loan in the related Collateral Allocation
Group (or, after the Senior Credit Support Depletion Date, any Mortgage Loan)
that became a Special Hazard Mortgage Loan during the calendar month preceding
the month of such Distribution Date, the excess of one month's interest at the
related Net Mortgage Rate on the Stated Principal Balance of the Applicable
Fraction of such Mortgage Loan as of the Due Date in such month over the amount
of Liquidation Proceeds applied as interest on the Applicable Fraction of such
Mortgage Loan with respect to such month, (B) after the Bankruptcy Coverage
Termination Date, with respect to each Mortgage Loan that became subject to a
Bankruptcy Loss during the calendar month preceding the month of such
Distribution Date, the interest portion of the related Debt Service Reduction or
Deficient Valuation allocable to the Applicable Fraction of such Mortgage Loan,
(C) each Relief Act Shortfall for the Applicable Fractions of Mortgage Loans in
the related Collateral Allocation Group (or, after the Senior Credit Support
Depletion Date, any Mortgage Loan) incurred during the calendar month preceding
the month of such Distribution Date and (D) after the Fraud Loss Coverage
Termination Date, with respect to the Applicable Fraction of each Mortgage Loan
in the related Collateral Allocation Group (or, after the Senior Credit Support
Depletion Date, any Mortgage Loan) that became a Fraud Loan during the calendar
month preceding the month of such Distribution Date, the excess of one month's
interest at the related Net Mortgage Rate on the Stated Principal Balance of the
Applicable Fraction of such Mortgage Loan as of the Due Date in such month over
the amount of Liquidation Proceeds applied as interest on the Applicable
Fraction of such Mortgage Loan with respect to such month.

      (e) Notwithstanding the priority and allocation contained in Section
5.02(a)(4), if, on any Distribution Date, with respect to any Class of
Subordinated Certificates (other than the Class of Subordinated Certificates
then outstanding with the highest priority of distribution), the sum of the
related Class Subordination Percentages of such Class and of all Classes of

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<PAGE>

Subordinated Certificates which have a higher numerical Class designation than
such Class (the "Applicable Credit Support Percentage") is less than the
Original Applicable Credit Support Percentage for such Class, no distribution of
Principal Prepayments will be made to any such Classes (the "Restricted
Classes") and the amount of such Principal Prepayments otherwise distributable
to the Restricted Classes shall be distributed to the outstanding Classes of
Subordinated Certificates having lower numerical Class designations than such
Class, pro rata, based on their respective Class Principal Balances immediately
prior to such Distribution Date and shall be distributed in the sequential order
provided in Section 5.02(a)(4). Notwithstanding anything in this Agreement to
the contrary, the Class of Subordinated Certificates then outstanding with the
highest distribution priority shall not be a Restricted Class.

      (f) If Subsequent Recoveries have been received with respect to a
Liquidated Mortgage Loan or Applicable Fraction thereof, the amount of such
Subsequent Recoveries will be applied sequentially, in the order of payment
priority, to increase the Class Principal Balance of each Class of Certificates
to which Realized Losses have been allocated, but in each case by not more than
the amount of Realized Losses previously allocated to that Class of Certificates
pursuant to Section 5.04. Holders of such Certificates will not be entitled to
any payment in respect of the Class Optimal Interest Distribution Amount on the
amount of such increases for any Interest Accrual Period preceding the
Distribution Date on which such increase occurs. Any such increases shall be
applied pro rata to the Certificate Balance of each Certificate of such Class.

      Section 5.03 [Reserved].

      Section 5.04 Allocation of Losses.

      (a) On or prior to each Distribution Date, the Securities Administrator
shall aggregate the information provided by each Servicer with respect to the
total amount of Realized Losses, including Excess Losses, experienced on the
Mortgage Loans for the related Distribution Date.

      (b) Realized Losses with respect to the Mortgage Loans on any Distribution
Date shall be allocated as follows:

            (i) the applicable A-P Percentage of any Realized Loss, including
      any Excess Loss, on a Mortgage Loan, based upon the related Applicable
      Fraction, in a Collateral Allocation Group shall be allocated to the
      related Class of Class A-P Certificates, until the Class Principal Balance
      thereof is reduced to zero; and

            (ii) (A) the applicable Non-A-P Percentage of any Realized Loss
      (other than an Excess Loss) shall be allocated first to the Subordinated
      Certificates in reverse order of their respective numerical Class
      designations (beginning with the Class of Subordinated Certificates then
      outstanding with the highest numerical Class designation) until the
      respective Class Principal Balance of each such Class is reduced to zero,
      and second to the Senior Certificates (other than the Class A-P
      Certificates or the Notional Amount Certificates, as applicable), pro rata
      on the basis of their respective Class Principal Balances, in the case of
      any Class of Accrual Certificates or Accrual Component, on the basis of
      the lesser of their Class Principal Balance or Component

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<PAGE>

      Balance, as applicable, and their initial Class Principal Balance or
      Component Balance, as applicable, in each case immediately prior to the
      related Distribution Date until the respective Class Principal Balance of
      each such Class is reduced to zero.

            (B) the applicable Non-A-P Percentage of any Excess Losses on the
      Mortgage Loans, based upon the related Applicable Fraction, in a
      Collateral Allocation Group shall be allocated to the Classes of
      Certificates of the related Senior Certificate Group (other than the Class
      A-P Certificates or the Notional Amount Certificates, as applicable) and
      the Subordinated Certificates then outstanding, pro rata, on the basis of,
      with respect to such Senior Certificates, their respective Class Principal
      Balances, or in the case of any Class of Accrual Certificates or Accrual
      Component, on the basis of the lesser of their respective Class Principal
      Balance and their respective initial Class Principal Balance or their
      respective Component Balance or their respective initial Component
      Balance, as the case may be, in each case immediately prior to the related
      Distribution Date and, with respect to each Class of Subordinated
      Certificates, the applicable Assumed Balance for each such Class relating
      to the Collateral Allocation Group in which such Realized Loss occurs;
      provided, however, on any Distribution Date after a Senior Termination
      Date for a Senior Certificate Group, such Excess Losses on the Applicable
      Fractions of the Mortgage Loans in the related Collateral Allocation Group
      will be allocated to the Subordinated Certificates on the basis of their
      respective Class Principal Balances; and provided further that after the
      Senior Credit Support Depletion Date, such Excess Losses shall be
      allocated pro rata to all Classes and Components of Senior Certificates
      (other than the Class A-P Certificates or the Notional Amount
      Certificates, as applicable) regardless of Senior Certificate Group on the
      basis of their respective initial Class Principal Balances or Component
      Balances, as applicable, or in the case of any or in the case of any Class
      of Accrual Certificates or Accrual Component, on the basis of the lesser
      of their respective Class Principal Balance and their respective initial
      Class Principal Balance or their respective Component Balance or their
      respective initial Component Balance, as the case may be, in each case
      immediately prior to the related Distribution Date.

      (c) The Class Principal Balance of the Class of Subordinated Certificates
then outstanding with the highest numerical Class designation shall be reduced
on each Distribution Date by the sum of (i) the amount of any payments on each
Class of Class A-P Certificates in respect of related Class A-P Deferred Amounts
and (ii) the amount, if any, by which the aggregate of the Class Principal
Balances of all outstanding Classes of Certificates (after giving effect to the
distribution of principal and the allocation of Realized Losses and Class A-P
Deferred Amounts on such Distribution Date) exceeds the aggregate Stated
Principal Balance of the Mortgage Loans for the following Distribution Date.

      (d) Any Realized Loss allocated to a Class of Certificates or any
reduction in the Class Principal Balance of a Class of Certificates pursuant to
Section 5.04(b) above shall be allocated among the Certificates of such Class in
proportion to their respective Certificate Balances.

      (e) Any allocation of Realized Losses to a Certificate or to any Component
or any reduction in the Certificate Balance of a Certificate, pursuant to
Section 5.04(b) above shall be

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<PAGE>

accomplished by reducing the Certificate Balance or Component Balance thereof,
as applicable, immediately following the distributions made on the related
Distribution Date in accordance with the definition of "Certificate Balance" or
"Component Balance," as the case may be. All Realized Losses or Excess Losses
allocated to a Class of Component Certificates will be allocated, pro rata, to
the related Components.

      (f) For the avoidance of doubt, no Realized Losses on the Mortgage Loans
shall be allocated to the Class P Certificates.

      Section 5.05 Advances by the Master Servicer.

      If any Servicer fails to remit any Advance required to be made under the
applicable Purchase and Servicing Agreement, the Master Servicer shall itself
make, or shall cause the successor Servicer to make, such Advance. If the Master
Servicer determines that an Advance is required, it shall on the Business Day
preceding the related Distribution Date immediately following such Determination
Date remit to the Securities Administrator from its own funds (or funds advanced
by the applicable Servicer) for deposit in the Distribution Account immediately
available funds in an amount equal to such Advance. The Master Servicer and each
Servicer shall be entitled to be reimbursed for all Advances made by it.
Notwithstanding anything to the contrary herein, in the event the Master
Servicer determines in its reasonable judgment that an Advance is
non-recoverable, the Master Servicer shall be under no obligation to make such
Advance. If the Master Servicer determines that an Advance is non-recoverable,
it shall, on or prior to the related Distribution Date, deliver an Officer's
Certificate to the Trustee and the Securities Administrator to such effect.

      Section 5.06 Compensating Interest Payments.

      The amount of compensation payable to the Securities Administrator in
respect of the Mortgage Loans and any Distribution Date shall be reduced (but
not below zero) by the amount of any aggregate Compensating Interest Payment
from the Servicers for such Distribution Date, but only to the extent that
Prepayment Interest Shortfalls relating to such Distribution Date are required
to be paid by the Servicers pursuant to the Purchase and Servicing Agreements,
as amended by the Acknowledgements, but are not actually paid by the Servicer.
Such amount shall not be treated as an Advance and shall not be reimbursable.

      Section 5.07 [Reserved].

      Section 5.08 Cross-Collateralization; Adjustments to Available Funds.

      (a) On each Distribution Date after the first Senior Termination Date but
prior to the earlier of the Senior Credit Support Depletion Date and a Senior
Termination Date, the Securities Administrator shall distribute the principal
portion of Available Funds on the Applicable Fractions of the Mortgage Loans
relating to the Senior Certificates that will have been paid in full to the
holders of the Senior Certificates of the other Certificate Groups.

      (b) If on any Distribution Date the aggregate Class Principal Balance of
the Senior Certificates of a Senior Certificate Group (other than any related
Class of Class A-P Certificates or Component thereof) after giving effect to
distributions to be made on that Distribution Date, is

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<PAGE>

greater than the Non-A-P Pool Balance for that Collateral Allocation Group (any
such group, an "Undercollateralized Group"), all amounts otherwise distributable
as principal to the Subordinated Certificates (or, following the Senior Credit
Support Depletion Date, the amounts described in the following sentence) will be
distributed as principal to the Senior Certificates of that Undercollateralized
Group (other than any related Class of Class A-P Certificates or Component
thereof) until the aggregate Class Principal Balance of the Senior Certificate
Group (other than any related Class of Class A-P Certificates or Component
thereof) of the Undercollateralized Group equals the Non-A-P Pool Balance for
that Collateral Allocation Group (such distribution, an "Undercollateralization
Distribution"). If a Senior Certificate Group (other than any related Class of
Class A-P Certificates or Component thereof) constitutes an Undercollateralized
Group on any Distribution Date following the Senior Credit Support Depletion
Date, Undercollateralization Distributions will be made from the excess of
Available Funds for the other Collateral Allocation Groups remaining after all
required amounts for that Distribution Date have been distributed to those
Senior Certificate Groups (other than any related Class of Class A-P
Certificates or Component thereof). If more than one Undercollateralized Group
on any Distribution Date is entitled to an Undercollateralization Distribution,
such Undercollateralization Distribution will be allocated among the
Undercollateralized Groups, pro rata, based upon the amount by which the
aggregate Class Principal Balance of each Class of Senior Certificates in such
Senior Certificate Group (other than any related Class of Class A-P Certificates
or Component thereof) exceeds the sum of the Non-A-P Balances for the related
Undercollateralized Group. If more than one Senior Certificate Group on any
Distribution Date is required to make an Undercollateralization Distribution to
an Undercollateralized Group, the payment of such Undercollateralization
Distributions will be allocated among such Senior Certificate Groups (other than
any related Class of Class A-P Certificates or Component thereof), pro rata,
based upon the aggregate excess of Available Funds for the Senior Certificate
Groups other than the Undercollateralized Group remaining after all required
amounts for that Distribution Date have been distributed to those Senior
Certificates.

      (c) On each Distribution Date after the first Senior Termination Date but
prior to the earlier of the Senior Credit Support Depletion Date and a Senior
Termination Date, the Non-A-P Formula Principal Amount for the Collateral
Allocation Group relating to the Senior Certificate Group that has been paid in
full, will be distributed to the other Senior Certificate Groups (other than any
related Class of Class A-P Certificates or Component thereof), so that each
remaining Senior Certificate Group receives its pro rata portion thereof. If
principal from one Collateral Allocation Group is distributed to the Senior
Certificate Groups (other than any related Class of Class A-P Certificates or
Component thereof) that are not related to that Collateral Allocation Group
according to this paragraph, the Subordinated Certificates will not receive that
principal as a distribution.

      Section 5.09 Determination of Pass-Through Rates for LIBOR Certificates.

      (a) On each Interest Determination Date so long as any LIBOR Certificates
are outstanding, the Securities Administrator will determine LIBOR on the basis
of the British Bankers' Association ("BBA") "Interest Settlement Rate" for
one-month deposits in U.S. dollars as found on Telerate page 3750 as of 11:00
a.m. London time on each LIBOR Determination Date. "Telerate Page 3750" means
the display page currently so designated on the Moneyline

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<PAGE>

Telerate Service (formerly the Dow Jones Markets) (or such other page as may
replace that page on that service for the purpose of displaying comparable rates
or prices).

      (b) If on any Interest Determination Date, LIBOR cannot be determined as
provided in paragraph (a) of this Section 5.09, the Securities Administrator
shall either (i) request each Reference Bank to inform the Securities
Administrator of the quotation offered by its principal London office for making
one-month United States dollar deposits in leading banks in the London interbank
market, as of 11:00 a.m. (London time) on such Interest Determination Date or
(ii) in lieu of making any such request, rely on such Reference Bank quotations
that appear at such time on the Reuters Screen LIBOR Page (as defined in the
International Swap Dealers Association Inc. Code of Standard Wording,
Assumptions and Provisions for Swaps, 1986 Edition), to the extent available.
LIBOR for the next Interest Accrual Period will be established by the Securities
Administrator on each interest Determination Date as follows:

            (i) If on any Interest Determination Date two or more Reference
      Banks provide such offered quotations, LIBOR for the next applicable
      Interest Accrual Period shall be the arithmetic mean of such offered
      quotations (rounding such arithmetic mean upwards if necessary to the
      nearest whole multiple of 1/32%).

            (ii) If on any Interest Determination Date only one or none of the
      Reference Banks provides such offered quotations, LIBOR for the next
      Interest Accrual Period shall be whichever is the higher of (i) LIBOR as
      determined on the previous Interest Determination Date or (ii) the Reserve
      Interest Rate. The "Reserve Interest Rate" shall be the rate per annum
      which the Securities Administrator determines to be either (i) the
      arithmetic mean (rounded upwards if necessary to the nearest whole
      multiple of 1/32%) of the one-month United States dollar lending rates
      that New York City banks selected by the Securities Administrator are
      quoting, on the relevant Interest Determination Date, to the principal
      London offices of at least two of the Reference Banks to which such
      quotations are, in the opinion of the Securities Administrator, being so
      made, or (ii) in the event that the Securities Administrator can determine
      no such arithmetic mean, the lowest one-month United States dollar lending
      rate which New York City banks selected by the Securities Administrator
      are quoting on such Interest Determination Date to leading European banks.

            (iii) If on any Interest Determination Date the Securities
      Administrator is required but is unable to determine the Reserve Interest
      Rate in the manner provided in paragraph (b) above, LIBOR for the related
      Classes of Certificates shall be LIBOR as determined on the preceding
      applicable Interest Determination Date.

      Until all of the LIBOR Certificates are paid in full, the Securities
Administrator will at all times retain at least four Reference Banks for the
purpose of determining LIBOR with respect to each Interest Determination Date.
The Securities Administrator initially shall designate the Reference Banks. Each
"Reference Bank" shall be a leading bank engaged in transactions in Eurodollar
deposits in the international Eurocurrency market, shall not control, be
controlled by, or be under common control with, the Securities Administrator and
shall have an established place of business in London. If any such Reference
Bank should be unwilling or unable to act as such or if the Master Servicer
should terminate its appointment as Reference Bank, the Securities

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<PAGE>

Administrator shall promptly appoint or cause to be appointed another Reference
Bank. The Securities Administrator shall have no liability or responsibility to
any Person for (i) the selection of any Reference Bank for purposes of
determining LIBOR or (ii) any inability to retain at least four Reference Banks
which is caused by circumstances beyond its reasonable control.

      (c) The Pass-Through Rate for each Class of LIBOR Certificates for each
Interest Accrual Period shall be determined by the Securities Administrator on
each Interest Determination Date so long as the LIBOR Certificates are
outstanding on the basis of LIBOR and the respective formulae appearing in
footnotes corresponding to the LIBOR Certificates in the table relating to the
Certificates in the Preliminary Statement.

      (d) In determining LIBOR, any Pass-Through Rate for the LIBOR
Certificates, any Interest Settlement Rate, or any Reserve Interest Rate, the
Securities Administrator may conclusively rely and shall be protected in relying
upon the offered quotations (whether written, oral or on the Dow Jones Markets)
from the BBA designated banks, the Reference Banks or the New York City banks as
to LIBOR, the Interest Settlement Rate or the Reserve Interest Rate, as
appropriate, in effect from time to time. The Securities Administrator shall not
have any liability or responsibility to any Person for (i) the selection of New
York City banks for purposes of determining any Reserve Interest Rate or (ii)
its inability, following a good-faith reasonable effort, to obtain such
quotations from, the BBA designated banks, the Reference Banks or the New York
City banks or to determine such arithmetic mean, all as provided for in this
Section 5.09.

      (e) The establishment of LIBOR and each Pass-Through Rate for the LIBOR
Certificates by the Securities Administrator shall (in the absence of manifest
error) be final, conclusive and binding upon each Holder of a Certificate and
the Securities Administrator.

      Section 5.10 [Reserved].

      Section 5.11 [Reseved].

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<PAGE>

                                   ARTICLE VI

                           CONCERNING THE TRUSTEE AND
                 THE SECURITIES ADMINISTRATOR; EVENTS OF DEFAULT

      Section 6.01 Duties of Trustee and the Securities Administrator.

      (a) The Trustee, except during the continuance of an Event of Default, and
the Securities Administrator undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement. Any permissive right of
the Trustee or the Securities Administrator provided for in this Agreement shall
not be construed as a duty of the Trustee or the Securities Administrator. If an
Event of Default has occurred and has not otherwise been cured or waived, the
Trustee or the Securities Administrator 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 Person would exercise or use under the
circumstances in the conduct of such Person's own affairs, unless the Trustee is
acting as master servicer, in which case it shall use the same degree of care
and skill (in its capacity as successor Master Servicer) as a master servicer
hereunder.

      (b) Each of the Trustee and the Securities Administrator, upon receipt of
all resolutions, certificates, statements, opinions, reports, documents, orders
or other instruments furnished to the Trustee or the Securities Administrator
which are specifically required to be furnished pursuant to any provision of
this Agreement, shall examine them to determine whether they are in the form
required by this Agreement; provided, however, that neither the Trustee nor the
Securities Administrator shall be responsible for the accuracy or content of any
such resolution, certificate, statement, opinion, report, document, order or
other instrument furnished by the Master Servicer or any Servicer to the Trustee
or the Securities Administrator pursuant to this Agreement, and shall not be
required to recalculate or verify any numerical information furnished to the
Trustee or the Securities Administrator pursuant to this Agreement. Subject to
the immediately preceding sentence, if any such resolution, certificate,
statement, opinion, report, document, order or other instrument is found not to
conform to the form required by this Agreement in a material manner the
Securities Administrator shall take such action as it deems appropriate to cause
the instrument to be corrected, and if the instrument is not corrected to the
Securities Administrator 's satisfaction, the Securities Administrator will
provide notice thereof to the Certificateholders and will, at the expense of the
Trust Fund, which expense shall be reasonable given the scope and nature of the
required action, take such further action as directed by the Certificateholders.

      (c) Neither the Trustee nor the Securities Administrator shall have any
liability arising out of or in connection with this Agreement, except for its
respective negligence or willful misconduct. Notwithstanding anything in this
Agreement to the contrary, neither the Trustee nor the Securities Administrator
shall be liable for special, indirect or consequential losses or damages of any
kind whatsoever (including, but not limited to, lost profits). No provision of
this Agreement shall be construed to relieve the Trustee or the Securities
Administrator from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct; provided, however, that:

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            (i) The Trustee shall not be personally liable with respect to any
      action taken, suffered or omitted to be taken by it in good faith in
      accordance with the direction of Holders of Certificates as provided in
      Section 6.18 hereof;

            (ii) For all purposes under this Agreement, the Trustee shall not be
      deemed to have notice of any Event of Default unless a Responsible Officer
      of the Trustee has actual knowledge thereof or unless written notice of
      any event which is in fact such a default is received by the Trustee at
      the Corporate Trust Office of the Trustee, and such notice references the
      Holders of the Certificates and this Agreement;

            (iii) For all purposes under this Agreement, the Securities
      Administrator shall not be deemed to have notice of any Event of Default
      (other than resulting from a failure by the Master Servicer (i) to remit
      funds (or to make Advances) or (ii) to furnish information to the
      Securities Administrator when required to do so) unless a Responsible
      Officer of the Securities Administrator has actual knowledge thereof or
      unless written notice of any event which is in fact such a default is
      received by the Securities Administrator at the address provided in
      Section 11.07, and such notice references the Holders of the Certificates
      and this Agreement;

            (iv) No provision of this Agreement shall require the Trustee or the
      Securities 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
      indemnity reasonably satisfactory to it against such risk or liability is
      not reasonably assured to it; and none of the provisions contained in this
      Agreement shall in any event require the Trustee or the Securities
      Administrator to perform, or be responsible for the manner of performance
      of, any of the obligations of the Master Servicer under this Agreement;

            (v) Neither the Trustee nor the Securities Administrator shall be
      responsible for any act or omission of each other or the Master Servicer,
      the Depositor, the Seller, any Servicer or any Custodian.

      (d) The Trustee shall have no duty hereunder with respect to any
complaint, claim, demand, notice or other document it may receive or which may
be alleged to have been delivered to or served upon it by the parties as a
consequence of the assignment of any Mortgage Loan hereunder; provided, however,
that the Trustee shall promptly remit to the Master Servicer, upon receipt any
such complaint, claim, demand, notice or other document (i) which is delivered
to the Corporate Trust Office of the Trustee, (ii) of which a Responsible
Officer has actual knowledge, and (iii) which contains information sufficient to
permit the Trustee to make a determination that the real property to which such
document relates is a Mortgaged Property related to a Mortgage Loan.

      (e) Neither the Trustee nor the Securities Administrator shall be
personally liable with respect to any action taken, suffered or omitted to be
taken by it in good faith in accordance with the direction of the
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

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place of conducting any proceeding for any remedy available to the Trustee or
the Securities Administrator or exercising any trust or power conferred upon the
Trustee or the Securities Administrator, as applicable, under this Agreement or
the Acknowledgements.

      (f) Neither the Trustee nor the Securities Administrator shall be required
to perform services under this Agreement, or to expend or risk its own funds or
otherwise incur financial liability for the performance of any of its duties
hereunder or the exercise of any of its rights or powers if there is reasonable
ground for believing that the timely payment of its fees and expenses or the
repayment of such funds or indemnity reasonably satisfactory to it against such
risk or liability is not reasonably assured to it, and none of the provisions
contained in this Agreement shall in any event require the Trustee or the
Securities Administrator, as applicable, to perform, or be responsible for the
manner of performance of, any of the obligations of the Master Servicer or any
Servicer under this Agreement or any Purchase and Servicing Agreement except
during such time, if any, as the Trustee shall be the successor to, and be
vested with the rights, duties, powers and privileges of, the Master Servicer in
accordance with the terms of this Agreement.

      (g) The Trustee shall not be held liable by reason of any insufficiency in
the Distribution Account resulting from any investment loss on any Permitted
Investment included therein (except to the extent that the Trustee is the
obligor and has defaulted thereon).

      (h) Neither the Trustee nor, except as otherwise provided herein, the
Securities Administrator shall have any duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any such recording or filing or
depositing or to any rerecording, refiling or redepositing of any thereof, (B)
to see to any insurance, (C) to see to the payment or discharge of any tax,
assessment, or other governmental charge or any lien or encumbrance of any kind
owing with respect to, assessed or levied against, any part of the Trust Fund
other than from funds available in the Distribution Account, or (D) to confirm
or verify the contents of any reports or certificates of the Master Servicer or
any Servicer delivered to the Trustee or the Securities Administrator pursuant
to this Agreement believed by the Trustee or the Securities Administrator, as
applicable, to be genuine and to have been signed or presented by the proper
party or parties.

      (i) Neither the Securities Administrator nor the Trustee shall be liable
in its individual capacity for an error of judgment made in good faith by a
Responsible Officer or other officers of the Trustee or the Securities
Administrator, as applicable, unless it shall be proved that the Trustee or the
Securities Administrator, as applicable, was negligent in ascertaining the
pertinent facts.

      (j) Notwithstanding anything in this Agreement to the contrary, neither
the Securities Administrator nor the Trustee shall be liable for special,
indirect or consequential losses or damages of any kind whatsoever (including,
but not limited to, lost profits), even if the Trustee or the Securities
Administrator, as applicable, has been advised of the likelihood of such loss or
damage and regardless of the form of action.

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      (k) Neither the Securities Administrator nor the Trustee shall be
responsible for the acts or omissions of the other, it being understood that
this Agreement shall not be construed to render them agents of one another, or
of any Servicer.

      Section 6.02 Certain Matters Affecting the Trustee and the Securities
Administrator.

      Except as otherwise provided in Section 6.01:

            (i) Each of the Trustee and the Securities Administrator may
      request, and may rely and shall be protected in acting or refraining from
      acting upon any resolution, Officer's Certificate, certificate of auditors
      or any other certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or document
      believed by it to be genuine and to have been signed or presented by the
      proper party or parties;

            (ii) Each of the Trustee and the Securities Administrator may
      consult with counsel and any advice of its counsel 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;

            (iii) Neither the Trustee nor the Securities Administrator shall be
      personally liable for any action taken, suffered or omitted by it in good
      faith and reasonably believed by it to be authorized or within the
      discretion or rights or powers conferred upon it by this Agreement;

            (iv) Unless an Event of Default shall have occurred and be
      continuing, neither the Trustee nor the Securities Administrator shall 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 the Holders of at least a majority in
      Class Principal Balance (or Percentage Interest) of each Class of
      Certificates; provided, however, that, if the payment within a reasonable
      time to the Trustee or the Securities Administrator, as applicable, 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 or the Securities
      Administrator, as applicable, not reasonably assured to the Trustee or the
      Securities Administrator by the security afforded to it by the terms of
      this Agreement, the Trustee or the Securities Administrator, as
      applicable, may require indemnity reasonably satisfactory to it against
      such expense or liability or payment of such estimated expenses from the
      Certificateholders as a condition to proceeding. The reasonable expense
      thereof shall be paid by the party requesting such investigation and if
      not reimbursed by the requesting party shall be reimbursed to the Trustee
      or the Securities Administrator, as applicable, by the Trust Fund;

            (v) Each of the Trustee and the Securities Administrator may execute
      any of the trusts or powers hereunder or perform any duties hereunder
      either directly or by or through agents, custodians or attorneys, which
      agents, custodians or attorneys shall have any and all of the rights,
      powers, duties and obligations of the Trustee and the Securities
      Administrator conferred on them by such appointment, provided that each of
      the Trustee and the Securities

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      Administrator shall continue to be responsible for its duties and
      obligations hereunder to the extent provided herein, and provided further
      that neither the Trustee nor the Securities Administrator shall be
      responsible for any misconduct or negligence on the part of any such agent
      or attorney appointed with due care by the Trustee or the Securities
      Administrator, as applicable;

            (vi) Neither the Trustee nor the Securities Administrator shall be
      under any obligation to exercise any of the trusts or powers vested in it
      by this Agreement or the Acknowledgements or to institute, conduct or
      defend any litigation hereunder or in relation hereto, in each case 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 or the Securities Administrator, as
      applicable, security or indemnity reasonably satisfactory to it against
      the costs, expenses and liabilities which may be incurred therein or
      thereby;

            (vii) The right of the Trustee and the Securities Administrator to
      perform any discretionary act enumerated in this Agreement shall not be
      construed as a duty, and neither the Trustee nor the Securities
      Administrator shall be answerable for other than its negligence or willful
      misconduct in the performance of such act; and

            (viii) Neither the Trustee nor the Securities Administrator shall be
      required to give any bond or surety in respect of the execution of the
      Trust Fund created hereby or the powers granted hereunder.

      Section 6.03 Trustee and Securities Administrator Not Liable for
                   Certificates.

      The Trustee and the Securities Administrator make no representations as to
the validity or sufficiency of this Agreement, any Purchase and Servicing
Agreement or Acknowledgement or of the Certificates (other than, in the case of
the Securities Administrator, the certificate of authentication on the
Certificates) or of any Mortgage Loan, or related document save that the Trustee
and the Securities Administrator represent that, assuming due execution and
delivery by the other parties hereto, this Agreement has been duly authorized,
executed and delivered by it and constitutes its valid and binding obligation,
enforceable against it in accordance with its terms except that such
enforceability may be subject to (A) applicable bankruptcy and insolvency laws
and other similar laws affecting the enforcement of the rights of creditors
generally, and (B) general principles of equity regardless of whether such
enforcement is considered in a proceeding in equity or at law. The Trustee and
the Securities Administrator shall not be accountable for the use or application
by the Depositor of funds paid to the Depositor in consideration of the
assignment of the Mortgage Loans to the Trust Fund by the Depositor or for the
use or application of any funds deposited into the Distribution Account or any
other fund or account maintained with respect to the Certificates. The Trustee
and the Securities Administrator shall not be responsible for the legality or
validity of this Agreement or any other document or agreement described in this
Section 6.03 or the validity, priority, perfection or sufficiency of the
security for the Certificates issued or intended to be issued hereunder. Neither
the Trustee nor, except as otherwise provided herein, the Securities
Administrator shall have any responsibility for filing any financing or
continuation statement in

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any public office at any time or to otherwise perfect or maintain the perfection
of any security interest or lien granted to it hereunder or to record this
Agreement.

      Section 6.04 Trustee and the Securities Administrator May Own
                   Certificates.

      The Trustee and the Securities Administrator and any Affiliate or agent of
either of them in its individual or any other capacity may become the owner or
pledgee of Certificates and may transact banking and trust business with the
other parties hereto and their Affiliates with the same rights it would have if
it were not Trustee, Securities Administrator or such agent.

      Section 6.05 Eligibility Requirements for Trustee.

      The Trustee hereunder shall at all times be (i) an institution whose
accounts are insured by the FDIC, (ii) a corporation or national banking
association, organized and doing business under the laws of any State or the
United States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by federal or state authority and (iii)
not an Affiliate of the Master Servicer or any Servicer. If such corporation or
national banking association publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then, for the purposes of this Section, the combined capital and
surplus of such corporation or national banking association shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Trustee shall cease to be
eligible in accordance with provisions of this Section, the Trustee shall resign
immediately in the manner and with the effect specified in Section 6.06.

      Section 6.06 Resignation and Removal of Trustee and the Securities
                   Administrator.

      (a) The Trustee may at any time resign and be discharged from the trust
hereby created by giving written notice thereof to the Securities Administrator,
the Depositor and the Master Servicer. Upon receiving such notice of
resignation, the Depositor will promptly appoint a successor trustee, by written
instrument, one copy of which instrument shall be delivered to the resigning
Trustee, one copy to the successor trustee, one copy to the Securities
Administrator and one copy to the Master Servicer. If no successor trustee shall
have been so appointed and shall have accepted appointment within 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.

      At least 15 calendar days prior to the effective date of such resignation,
the Trustee shall provide (x) written notice to the Depositor and the Master
Servicer of any successor pursuant to this Section (other than a successor
appointed by the Depositor in accordance with the preceding paragraph) and (y)
in writing and in form and substance reasonably satisfactory to the Depositor,
all information reasonably requested by the Depositor in order to comply with
its reporting obligation under Item 6.02 of Form 8-K with respect to the
resignation of the Trustee.

      (b) If at any time (i) the Trustee shall cease to be eligible in
accordance with the provisions of Section 6.05 and shall fail to resign after
written request therefor by the Depositor, (ii) the Trustee shall become
incapable of acting, or shall be adjudged a bankrupt or insolvent, or

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a receiver of the Trustee of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of either of their
property or affairs for the purpose of rehabilitation, conservation or
liquidation, (iii) (A) a tax is imposed or threatened with respect to the Trust
Fund by any state in which the Trustee or the Trust Fund held by the Trustee is
located due to the location of the Trustee, (B) the imposition of such tax would
be avoided by the appointment of a different trustee and (C) the Trustee fails
to indemnify the Trust Fund against such tax (iv) the continued use of the
Trustee would result in a downgrading of the rating by any Rating Agency of any
Class of Certificates with a rating, or (v) the Trustee fails to comply with its
obligations under the penultimate paragraph of Section 6.14(a), in the preceding
paragraph, Section 9.05 or Article XII and such failure is not remedied within
the lesser of 10 calendar days or such period in which the applicable Exchange
Act Report can be filed timely (without taking into account any extensions),
then, in the case of clauses (i) through (iv), the Depositor shall remove the
Trustee and the Depositor shall appoint a successor trustee, acceptable to the
Master Servicer by written instrument, one copy of which instrument shall be
delivered to the Trustee so removed, one copy to the successor trustee, one copy
to the Securities Administrator and one copy to the Master Servicer.

      (c) The Holders of more than 50% of the Class Principal Balance (or
Percentage Interest) of each Class of Certificates may at any time upon 30 days'
written notice to the Trustee and to the Depositor remove the Trustee by such
written instrument, signed by such Holders or their attorney-in-fact duly
authorized, one copy of which instrument shall be delivered to the Depositor,
one copy to the Trustee, one copy to the Securities Administrator and one copy
to the Master Servicer; the Depositor shall thereupon appoint a successor
trustee in accordance with this Section.

      (d) Any resignation or removal of the Trustee and appointment of a
successor 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 6.07. If no successor trustee shall have been so appointed and shall
have accepted appointment within 30 days after such notice of dismissal, the
Trustee who received such notice of dismissal may petition any court of
competent jurisdiction for the appointment of a successor trustee.

      (e) The Securities Administrator shall not resign except in accordance
with the provisions of Sections 9.06 and 9.07 hereof, to the same extent that
the Master Servicer is entitled to resign or assign or delegate, as applicable,
its duties hereunder.

      (f) If at any time the Securities Administrator shall cease to be eligible
in accordance with the provisions of Section 9.10 hereof and shall fail to
resign after written request thereto by the Depositor, or if at any time the
Securities Administrator shall become incapable of acting, or shall be adjudged
as bankrupt or insolvent, or a receiver of the Securities Administrator or of
its property shall be appointed, or any public officer shall take charge or
control of the Securities Administrator or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, or a tax is imposed with
respect to the Trust Fund by any state in which the Securities Administrator or
the Trust Fund is located and the imposition of such tax would be avoided by the
appointment of a different Securities Administrator, then the Depositor or the
Trustee may remove the Securities Administrator and appoint a successor
securities administrator by written instrument, in triplicate, one copy of which
instrument shall be

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<PAGE>

delivered to the Securities Administrator so removed, one copy of which shall be
delivered to the Master Servicer and one copy to the successor securities
administrator.

      (g) If no successor securities administrator shall have been appointed and
shall have accepted appointment within 60 days after [Wells Fargo Bank, N.A.],
as Securities Administrator, ceases to be the securities administrator pursuant
to this Section 6.06, then the Trustee (as successor Securities Administrator)
shall perform the duties of the Securities Administrator pursuant to this
Agreement. The Trustee shall notify the Rating Agencies of any change of the
Securities Administrator. In such event, the Trustee shall assume all of the
rights and obligations of the Securities Administrator hereunder arising
thereafter except that the Trustee shall not be (i) liable for losses of the
predecessor Securities Administrator or any acts or omissions of the predecessor
Securities Administrator hereunder, (ii) deemed to have made any representations
and warranties of the Securities Administrator made herein and (iii) subject to
the same resignation limitations as set forth in Section 9.06 hereof; provided,
however, that the Trustee (as successor securities administrator) shall not
resign until a successor securities administrator has accepted appointment
pursuant to Section 6.07 hereof. The Trustee shall not be accountable, shall
have no liability and makes no representation as to any acts or omissions
hereunder of the Securities Administrator until such time as the Trustee may be
required to act as successor Securities Administrator pursuant to this Section
6.06 and thereupon only for the acts or omissions of the Trustee as successor
Securities Administrator. If the Trustee is unwilling, or unable, to act as
successor Securities Administrator, then, in such event, the Trustee may
appoint, or petition a court of competent jurisdiction to appoint a successor
Securities Administrator meeting the criteria set forth in Section 9.10 hereof.
Such successor Securities Administrator shall be entitled to the Securities
Administrator Compensation.

      (h) The Trustee as successor securities administrator shall be entitled to
be reimbursed for all reasonable costs and expenses associated with the transfer
of the duties of the Securities Administrator by the predecessor Securities
Administrator, including, without limitation, any costs or expenses associated
with the complete transfer of all securities administrator data and the
completion, correction or manipulation of such securities administrator data as
may be required by the Trustee as successor securities administrator to correct
any errors or insufficiencies in such securities administrator data or otherwise
to enable the Trustee or successor securities administrator to perform the
duties of the Securities Administrator properly and effectively; provided,
however, that the predecessor Securities Administrator shall not be obligated to
make any such reimbursements if such Securities Administrator was terminated or
removed without cause or if such termination or removal was a result of the
imposition of any tax on the Trust Estate by any state in which the Securities
Administrator or the Trust Fund is located. If such costs are not paid by the
predecessor Securities Administrator, the Trustee shall pay such costs from the
Trust Fund.

      (i) The Trustee, as successor Securities Administrator, as compensation
for its activities hereunder as successor Securities Administrator, shall be
entitled to retain or withdraw from the Distribution Account an amount equal to
the Securities Administrator Compensation.

      (j) The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Securities Administrator and appoint a
successor securities administrator by written instrument or instruments, in
triplicate, signed by such Holders or their attorneys-in-fact

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<PAGE>

duly authorized, one complete set of which instruments shall be delivered by the
successor Securities Administrator to the Trustee, one complete set to the
Securities Administrator so removed and one complete set to the successor so
appointed. Notice of any removal of the Securities Administrator shall be given
to each Rating Agency by the successor securities administrator.

      (k) Any resignation or removal of the Securities Administrator and
appointment of a successor securities administrator pursuant to any of the
provisions of this Section 6.06 or Section 9.06 shall become effective upon
acceptance by the successor securities administrator of appointment as provided
in Section 6.07 hereof.

      (l) If the Securities Administrator and the Master Servicer are the same
Person, any removal of the Master Servicer pursuant to an Event of Default shall
also result in the removal of the Securities Administrator and require the
appointment of a successor pursuant to this Section and Section 6.07.

      (m) The Securities Administrator shall cooperate with the Trustee and any
successor securities administrator in effecting the termination of the
Securities Administrator's responsibilities and rights hereunder, providing to
the Trustee and successor securities administrator all documents and records in
electronic or other form reasonably requested by it to enable it to assume the
Securities Administrator's functions hereunder and for the transfer to the
Trustee or successor Securities Administrator of all amounts in the Distribution
Account or any other account or fund maintained by the Securities Administrator
with respect to the Trust Fund. Neither the Trustee nor the Master Servicer, as
applicable, nor any other successor, as applicable, shall be deemed to be in
default hereunder by reason of any failure to make, or any delay in making, any
distribution hereunder or any portion thereof caused by (i) the failure of the
predecessor Securities Administrator to deliver, or any delay in delivering,
cash, documents or records to it, (ii) the failure of the predecessor Securities
Administrator to cooperate as required by this Agreement, (iii) the failure of
the predecessor Securities Administrator to deliver the related Mortgage Loan
data as required by this Agreement or (iv) restrictions imposed by any
regulatory authority having jurisdiction over the predecessor Securities
Administrator. No successor securities administrator shall be deemed to be in
default hereunder by reason of any failure to make, or any delay in making, any
distribution hereunder or any portion thereof caused by (i) the failure of the
Master Servicer to deliver, or any delay in delivering cash, documents or
records to it related to such distribution, or (ii) the failure of Trustee or
the Master Servicer to cooperate as required by this Agreement.

      Section 6.07 Successor Trustee and Successor Securities Administrator.

      (a) Any successor trustee or successor securities administrator appointed
as provided in Section 6.06 shall execute, acknowledge and deliver to the
Depositor and to its predecessor trustee or predecessor securities
administrator, as applicable, an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee
or predecessor securities administrator, as applicable, shall become effective
and such successor trustee or successor securities administrator, as applicable,
without any further act, deed or conveyance, shall become fully vested with all
the rights, powers, duties and obligations of its predecessor hereunder, with
like effect as if originally named as trustee or securities

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<PAGE>

administrator, as applicable, herein. The predecessor trustee or predecessor
securities administrator, as applicable, shall deliver to the successor trustee
or successor securities administrator, as applicable, all Trustee Mortgage Files
and documents and statements related to each Trustee Mortgage File held by it
hereunder, and shall duly assign, transfer, deliver and pay over to the
successor trustee the entire Trust Fund, together with all necessary instruments
of transfer and assignment or other documents properly executed necessary to
effect such transfer and such of the records or copies thereof maintained by the
predecessor trustee in the administration hereof as may be requested by the
successor trustee and shall thereupon be discharged from all duties and
responsibilities under this Agreement. In addition, the Depositor and the
predecessor trustee or predecessor securities administrator, as applicable,
shall execute and deliver such other instruments and do such other things as may
reasonably be required to more fully and certainly vest and confirm in the
successor trustee or successor securities administrator, as applicable, all such
rights, powers, duties and obligations.

      (b) No successor trustee shall accept appointment as provided in this
Section unless at the time of such appointment such successor trustee shall be
eligible under the provisions of Section 6.05 and has provided to the Depositor
in writing and in form and substance reasonably satisfactory to the Depositor,
all information reasonably requested by the Depositor in order to comply with
its reporting obligation under Item 6.02 of Form 8-K with respect to a
replacement Trustee.

      (c) Upon acceptance of appointment by a successor trustee as provided in
this Section, the Master 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 and to any Rating Agency. The costs of such mailing
shall be borne by the Master Servicer.

      Section 6.08 Merger or Consolidation of Trustee or the Securities
                   Administrator.

      Any Person into which the Trustee or Securities Administrator may be
merged or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Trustee or Securities
Administrator shall be a party, or any Persons succeeding to the business of the
Trustee or Securities Administrator, shall be the successor to the Trustee or
Securities Administrator 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 that, in the case of the Trustee, such
Person shall be eligible under the provisions of Section 6.05.

      At least 15 calendar days prior to the effective date of any succession by
merger or consolidation of the Trustee or the Securities Administrator, the
Trustee or the Securities Administrator, as applicable, shall provide (x)
written notice to the Depositor of any successor pursuant to this Section and
(y) in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect to
a replacement Trustee or Securities Administrator, as applicable.

      Section 6.09 Appointment of Co-Trustee, Separate Trustee or Custodian.

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      (a) Notwithstanding any other provisions hereof, at any time, the Trustee,
the Depositor or the Certificateholders evidencing more than 50% of the Class
Principal Balance (or Percentage Interest) of every Class of Certificates shall
have the power from time to time to appoint one or more Persons, approved by the
Trustee, to act either as co-trustees jointly with the Trustee, or as separate
trustees, or as custodians, for the purpose of holding title to, foreclosing or
otherwise taking action with respect to any Mortgage Loan outside the state
where the Trustee has its principal place of business where such separate
trustee or co-trustee is necessary or advisable (or the Trustee has been advised
by the Master Servicer that such separate trustee or co-trustee is necessary or
advisable) under the laws of any state in which a property securing a Mortgage
Loan is located or for the purpose of otherwise conforming to any legal
requirement, restriction or condition in any state in which a property securing
a Mortgage Loan is located or in any state in which any portion of the Trust
Fund is located. The separate Trustees, co-trustees, or custodians so appointed
shall be trustees or custodians for the benefit of all the Certificateholders
and shall have such powers, rights and remedies as shall be specified in the
instrument of appointment; provided, however, that no such appointment shall, or
shall be deemed to, constitute the appointee an agent of the Trustee. The
obligation of the Master Servicer to make Advances pursuant to Section 5.05
hereof shall not be affected or assigned by the appointment of a co-trustee.

      (b) Every separate trustee, co-trustee, and custodian shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

            (i) all powers, duties, obligations and rights conferred upon the
      Trustee in respect of the receipt, custody and payment of moneys shall be
      exercised solely by the Trustee;

            (ii) all other 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, co-trustee, or
      custodian jointly, except to the extent that under any law of any
      jurisdiction in which any particular act or acts are to be performed 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,
      co-trustee, or custodian;

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

            (iv) the Trustee may at any time, by an instrument in writing
      executed by it, with the concurrence of the Depositor, accept the
      resignation of or remove any separate trustee, co-trustee or custodian, so
      appointed by it or them, if such resignation or removal does not violate
      the other terms of this Agreement.

      (c) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee, co-trustee or custodian shall refer to this Agreement and the
conditions of this Article VI. Each separate trustee and co-trustee, upon

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its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Trustee. Every such instrument shall be filed with the Trustee and a
copy given to the Master Servicer.

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

      (e) No separate trustee, co-trustee or custodian hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
6.05 hereunder and no notice to the Certificateholders of the appointment shall
be required under Section 6.07 hereof.

      (f) The Securities Administrator on behalf of the Trustee agrees to
instruct the co-trustees, if any, to the extent necessary to fulfill the
Trustee's obligations hereunder.

      (g) The Trust shall pay the reasonable compensation of the co-trustees
(which compensation shall not reduce any compensation payable to the Trustee
under such Section).

      Section 6.10 Authenticating Agents.

      (a) The Trustee may appoint one or more Authenticating Agents which shall
be authorized to act on behalf of the Trustee in authenticating Certificates.
The Securities Administrator is hereby appointed as initial Authenticating
Agent, and the Securities Administrator accepts such appointment. 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 a corporation
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.

      (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

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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 with the
provisions of this Section 6.10, the Trustee may appoint a successor
authenticating agent, shall give written notice of such appointment to the
Depositor and shall mail notice of such appointment to all Holders of
Certificates. Any successor authenticating agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. No successor authenticating agent
shall be appointed unless eligible under the provisions of this Section 6.10. No
Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee.

      Section 6.11 Indemnification of the Trustee and the Securities
                   Administrator.

      The Trustee (in its individual corporate capacity and in its
representative capacity as Trustee hereunder) and the Securities Administrator
and their respective directors, officers, employees and agents shall be entitled
to indemnification from the Trust Fund for any loss, liability or expense
(including the reasonable compensation and the expenses and disbursements of its
agents or counsel), incurred without negligence or willful misconduct on their
part, arising out of, or in connection with, the acceptance or administration of
the trusts created hereunder or under the Corridor Contract, the Custodial
Agreements, the Purchase and Servicing Agreements or Acknowledgements or in
connection with the performance of their duties hereunder or thereunder
including the costs and expenses of defending themselves against any claim in
connection with the exercise or performance of any of their powers or duties
hereunder or thereunder, provided that:

            (i) with respect to any such claim, the Trustee or the Securities
      Administrator, as applicable, shall have given the Depositor written
      notice thereof promptly after the Trustee, the Securities Administrator,
      as applicable, shall have knowledge thereof;

            (ii) while maintaining control over its own defense, the Trustee or
      the Securities Administrator, as applicable, shall cooperate and consult
      fully with the Depositor in preparing such defense; and

            (iii) notwithstanding anything to the contrary in this Section 6.11,
      the Trust Fund shall not be liable for settlement of any such claim by the
      Trustee or the Securities Administrator, as applicable, entered into
      without the prior consent of the Depositor, which consent shall not be
      unreasonably withheld.

      The provisions of this Section 6.11 shall survive any termination of this
Agreement and the resignation or removal of the Trustee, the Securities
Administrator or Custodian, as applicable, and shall be construed to include,
but not be limited to any loss, liability or expense under any environmental
law.

      Section 6.12 Fees and Expenses of Master Servicer, Securities
                   Administrator and the Trustee.

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      (a) For so long as [Wells Fargo Bank, National Association] is the Master
Servicer and the Securities Administrator, the Securities Administrator shall be
entitled to be paid by the Master Servicer reasonable compensation for the
Securities Administrator's services hereunder in an amount to be agreed upon
between the Master Servicer and the Securities Administrator. Should [Wells
Fargo Bank, National Association] no longer be both the Master Servicer and the
Securities Administrator, the Securities Administrator shall be entitled to
receive the Securities Administrator Compensation payable pursuant to Section
4.02(b)(ii) hereof. The Securities Administrator shall be entitled to all
disbursements and advancements incurred or made by the Securities Administrator
in accordance with this Agreement (including fees and expenses of its counsel
and all persons not regularly in its employment), except any such expenses
arising from its negligence, bad faith or willful misconduct.

      (b) As compensation for its services hereunder, the Trustee and each
Custodian shall each be entitled to receive a fee (which, in the case of the
Trustee, shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) which shall be paid by the Master
Servicer pursuant to a separate agreement between the Trustee, the Custodians
and the Master Servicer. Any expenses incurred by the Trustee or the Custodians
shall be reimbursed in accordance with Section 6.11. Notwithstanding any
provision in any Custodial Agreement to the contrary, the parties hereto
acknowledge and agree that (i) the Master Servicer shall only be obligated to
pay to each Custodian the fee agreed to by such Custodian and the Master
Servicer in the separate fee agreement referred to above, and (ii) except as may
be expressly set forth therein with respect to the Master Servicer, in no event
shall the Master Servicer have any responsibility or liability for the payment
of any other fees or any expenses or other amounts, if any, that may be payable
to a Custodian under the related Custodial Agreement, all of which shall be
payable in accordance with the terms and conditions of such Custodial Agreement.

      Section 6.13 Collection of Monies.

      Except as otherwise expressly provided in this Agreement, the Securities
Administrator on behalf of the Trustee may demand payment or delivery of, and
shall receive and collect, all money and other property payable to or receivable
by the Securities Administrator on behalf of the Trustee pursuant to this
Agreement. The Securities Administrator on behalf of the Trustee shall hold all
such money and property received by it as part of the Trust Fund and shall
distribute it as provided in this Agreement.

      Section 6.14 Events of Default; Trustee To Act; Appointment of Successor.

      (a) The occurrence of any one or more of the following events shall
constitute an "Event of Default" with respect to the Master Servicer:

            (i) Any failure by the Master Servicer to furnish the Securities
      Administrator the Mortgage Loan data on the Mortgage Loans sufficient to
      prepare the reports described in Section 4.05 which continues unremedied
      for a period of one Business Day after the date upon which written notice
      of such failure shall have been given to the Master Servicer by the
      Trustee or the Securities Administrator or to the Master Servicer,

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      the Securities Administrator and the Trustee by the Holders of not less
      than 25% of the Class Principal Balance of each Class of Certificates
      affected thereby; or

            (ii) Any failure on the part of the Master Servicer duly to observe
      or perform in any material respect any other of the covenants or
      agreements (other than those referred to in (vii) and (ix) below) on the
      part of the Master Servicer contained in this Agreement (including any
      obligation to enforce any Purchase and Servicing Agreement) or any
      representation or warranty of the Master Servicer shall prove to be untrue
      in any material respect, which failure or breach continues unremedied for
      a period of 60 days after the date on which written notice of such
      failure, requiring the same to be remedied, shall have been given to the
      Master Servicer by the Trustee or the Securities Administrator, or to the
      Master Servicer, the Securities Administrator and the Trustee by the
      Holders of more than 50% of the Aggregate Voting Interests of the
      Certificates; provided that the sixty-day cure period shall not apply so
      long as the Depositor is required to file Exchange Act Reports with
      respect to the Trust Fund, the failure to comply with the requirements set
      forth in Section 9.11, Section 9.05 and Section 9.06 (with respect to
      notice and information to be provided to the Depositor) or Article XII,
      for which the grace period shall not exceed the lesser of 10 calendar days
      or such period in which the applicable Exchange Act Report can be filed
      timely (without taking into account any extensions); or

            (iii) 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 Master Servicer, and such decree or order shall have remained in force
      undischarged or unstayed for a period of 60 days or any Rating Agency
      reduces or withdraws or threatens to reduce or withdraw the rating of the
      Certificates because of the financial condition or loan servicing
      capability of such Master Servicer; or

            (iv) The Master Servicer shall consent to the appointment of a
      conservator or receiver or liquidator in any insolvency, readjustment of
      debt, marshalling of assets and liabilities, voluntary liquidation or
      similar proceedings of or relating to the Master Servicer or of or
      relating to all or substantially all of its property; or

            (v) The Master 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; or

            (vi) The Master Servicer shall be dissolved, or shall dispose of all
      or substantially all of its assets, or consolidate with or merge into
      another entity or shall permit another entity to consolidate or merge into
      it, such that the resulting entity does not meet the criteria for a
      successor servicer as specified in Section 9.05 hereof; or

            (vii) If a representation or warranty set forth in Section 9.03
      hereof shall prove to be incorrect as of the time made in any respect that
      materially and adversely affects the

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      interests of the Certificateholders, and the circumstance or condition in
      respect of which such representation or warranty was incorrect shall not
      have been eliminated or cured within 90 days after the date on which
      written notice of such incorrect representation or warranty shall have
      been given to the Master Servicer by the Trustee or the Securities
      Administrator, or to the Master Servicer, the Securities Administrator and
      the Trustee by the Holders of more than 50% of the Aggregate Voting
      Interests of the Certificates; or

            (viii) A sale or pledge of any of the rights of the Master Servicer
      hereunder or an assignment of this Agreement by the Master Servicer or a
      delegation of the rights or duties of the Master Servicer hereunder shall
      have occurred in any manner not otherwise permitted hereunder and without
      the prior written consent of the Trustee and Certificateholders holding
      more than 50% of the Aggregate Voting Interests of the Certificates; or

            (ix) After receipt of notice from the Trustee or the Securities
      Administrator, any failure of the Master Servicer to make any Advances
      required to be made by it hereunder; or

            (x) (a) Any failure by the Master Servicer to deposit in the
      Distribution Account or remit to the Securities Administrator any payment
      required to be made by the Master Servicer under the terms of this
      Agreement (other than an Advance required pursuant to Section 5.05
      hereof), which failure shall continue unremedied for three Business Days
      after the date upon which written notice of such failure shall have been
      given to the Master Servicer by the Securities Administrator, Trustee or
      the Depositor or to the Master Servicer and the Trustee by the Holders of
      Certificates having not less than 25% of the Voting Rights evidenced by
      the Certificates or (b) any failure by the Master Servicer to deposit in
      the Distribution Account or remit to the Securities Administrator any
      Advance required to be made by the Master Servicer under Section 5.05
      hereof, which failure shall continue unremedied for one Business Day after
      the date upon which written notice of such failure shall have been given
      to the Master Servicer by the Securities Administrator, Trustee or the
      Depositor or to the Master Servicer and the Trustee by the Holders of
      Certificates having not less than 25% of the Voting Rights evidenced by
      the Certificates; or

            (xi) If the Master Servicer and the Securities Administrator are the
      same Person, any removal of the Securities Administrator pursuant to
      Section 6.06.

      If an Event of Default described in clauses (i) through (ix) or (xi) of
this Section shall occur with respect to the Master Servicer, then, in each and
every case, subject to applicable law, so long as any such Event of Default
shall not have been remedied within any period of time prescribed by this
Section, the Trustee, by notice in writing to the Master Servicer may, and, if
so directed by (a) Certificateholders evidencing more than 50% of the Class
Principal Balance of each Class of Certificates or (b) the Depositor, in the
case of a failure related to an Exchange Act Filing Obligation; the Trustee
shall by notice in writing to the Master Servicer (with a copy to each Rating
Agency and the Depositor), terminate all of the respective rights and
obligations of the Master Servicer hereunder and in and to the Mortgage Loans
and the proceeds thereof. Subject to Section 6.01(c)(ii), if an Event of Default
described in clause (x) of this Section shall

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occur with respect to the Master Servicer, then, in each and every case, subject
to applicable law, so long as any such Event of Default shall not have been
remedied within any period of time prescribed by this Section, the Trustee shall
by notice in writing to the Master Servicer terminate all of the respective
rights and obligations of the Master Servicer hereunder and in and to the
Mortgage Loans and the proceeds thereof. On or after the receipt by the Master
Servicer of such written notice, all authority and power of the Master Servicer,
and with respect to the Master Servicer only in its capacity as Master Servicer
under this Agreement, whether with respect to the Mortgage Loans or otherwise,
shall pass to and be vested in the Trustee; and the Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the defaulting Master
Servicer as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the affected Mortgage
Loans and related documents or otherwise. The defaulting Master Servicer agrees
to cooperate with the Trustee and the Securities Administrator in effecting the
termination of the defaulting Master Servicer's responsibilities and rights
hereunder as Master Servicer which includes, without limitation, notifying the
Servicers of the assignment of the master servicing function and providing the
Trustee or its designee all documents and records in electronic or other form
reasonably requested by it to enable the Trustee or its designee to assume the
defaulting Master Servicer's functions hereunder and the transfer to the Trustee
for administration by it of all amounts which shall at the time be or should
have been deposited by the defaulting Master Servicer in the Distribution
Account, any related Custodial Account and any other account or fund maintained
with respect to the Certificates or thereafter received with respect to the
affected Mortgage Loans. The Master Servicer being terminated shall bear all
costs of the transfer of the master servicing to the successor master servicer,
including but not limited to those of the Trustee or Securities Administrator
reasonably allocable to specific employees and overhead, legal fees and
expenses, accounting and financial consulting fees and expenses, and costs of
amending the Agreement, if necessary. If such costs are not paid by the
terminated Master Servicer, the Trustee shall pay such costs from the Trust
Fund.

      Notwithstanding the termination of its activities as Master Servicer, any
terminated Master Servicer shall continue to be entitled to reimbursement under
this Agreement to the extent such reimbursement relates to the period prior to
such Master Servicer's termination.

      The Securities Administrator and the Master Servicer shall promptly notify
the Responsible Officers of the Trustee and the Depositor of the occurrence and
continuance of an Event of Default. If any Event of Default shall occur, the
Trustee, upon a Responsible Officer of the Trustee becoming aware of the
occurrence thereof, shall promptly notify the Securities Administrator and each
Rating Agency of the nature and extent of such Event of Default. The Securities
Administrator shall immediately give written notice to the Master Servicer upon
the failure of the Master Servicer to make Advances as required under this
Agreement with a copy to the Trustee.

      Upon the occurrence of an Event of Default, the Trustee shall provide the
Depositor in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect to
a successor master servicer in the event the Trustee should succeed to the
duties of the Master Servicer as set forth herein.

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      At least 15 calendar days prior to the effective date of such appointment,
(x) the Trustee shall provide written notice to the Depositor of such successor
pursuant to this Section 6.14 and (y) such successor Master Servicer shall
provide to the Depositor in writing and in form and substance reasonably
satisfactory to the Depositor, all information reasonably requested by the
Depositor in order to comply with its reporting obligation under Item 6.02 of
Form 8-K with respect to a replacement master servicer.

      (b) On and after the time the Master Servicer receives a notice of
termination from the Trustee or the Securities Administrator, as applicable,
pursuant to Section 6.14(a) or the Trustee or the Securities Administrator, as
applicable, receives the resignation of the Master Servicer evidenced by an
Opinion of Counsel pursuant to Section 9.06, the Trustee, unless another master
servicer shall have been appointed, shall be the successor in all respects to
the Master Servicer, in its capacity as such under this Agreement and the
transactions set forth or provided for herein and shall have all the rights and
powers and be subject to all the responsibilities, duties and liabilities
relating thereto and arising thereafter placed on the Master Servicer,
hereunder, including the obligation to make Advances; provided, however, that
any failure to perform such duties or responsibilities caused by the failure of
the Master Servicer to provide information required by this Agreement shall not
be considered a default by the Trustee or the Securities Administrator, as
applicable, hereunder. In addition, neither the Trustee nor the Securities
Administrator, as applicable, shall have any responsibility for any act or
omission of the Master Servicer prior to the issuance of any notice of
termination. The Trustee shall have no liability relating to the representations
and warranties of the Master Servicer set forth in Section 9.03. In the capacity
as such successor, the Trustee shall have the same limitations on liability
herein granted to the Master Servicer. As compensation for being the successor
master servicer, the Trustee shall be entitled to receive all compensation
payable to the Master Servicer under this Agreement. Any successor to the Master
Servicer hereunder also may assume the obligations of the Securities
Administrator hereunder as successor in such capacity shall be entitled to the
compensation payable to the Securities Administrator pursuant to Section 4.02
hereof from and after the date of such assumption.

      (c) Notwithstanding the above, the Trustee may, if it shall be unwilling
to continue to so act, or shall, if it is unable to so act, petition a court of
competent jurisdiction to appoint, or appoint on its own behalf any established
housing and home finance institution servicer, master servicer, servicing or
mortgage servicing institution having a net worth of not less than $15,000,000
and meeting such other standards for a successor master servicer, as are set
forth in this Agreement, as the successor to such Master Servicer in the
assumption of all of the respective responsibilities, duties or liabilities of a
master servicer, like the Master Servicer. Any entity designated by the Trustee,
may be an Affiliate of the Trustee; provided, however, that, unless such
Affiliate meets the net worth requirements and other standards set forth herein
for a successor master servicer, the Trustee, in its individual capacity shall
agree, at the time of such designation, to be and remain liable to the Trust
Fund for such Affiliate's actions and omissions in performing its duties
hereunder. In connection with such appointment and assumption, the Trustee may
make such arrangements for the compensation of such successor out of payments on
the Mortgage Loans as it and such successor shall agree; provided, however, that
no such compensation shall be in excess of that permitted to the Master Servicer
hereunder. The Trustee and such successor shall take such actions, consistent
with this Agreement, as shall be necessary to effectuate any such succession and
may make other arrangements with respect to the master

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servicing to be conducted hereunder which are not inconsistent herewith. The
Master Servicer shall cooperate with the Trustee and any successor master
servicer in effecting the termination of the Master Servicer's responsibilities
and rights hereunder including, without limitation, notifying the Servicers of
the assignment of the master servicing functions and providing the Trustee and
successor master servicer all documents and records in electronic or other form
reasonably requested by it to enable it to assume the Master Servicer's
functions hereunder and the transfer to the Trustee or such successor all
amounts which shall at the time be or should have been deposited by the Master
Servicer in the Distribution Account, any Custodial Account, or any other
account or fund maintained with respect to the Certificates or thereafter be
received with respect to the Mortgage Loans. Neither the Trustee nor the
Securities Administrator, as applicable, nor any other successor, as applicable,
shall be deemed to be in default hereunder by reason of any failure to make, or
any delay in making, any distribution hereunder or any portion thereof caused by
(i) the failure of the Master Servicer to deliver, or any delay in delivering,
cash, documents or records to it, (ii) the failure of the Master Servicer to
cooperate as required by this Agreement, (iii) the failure of the Master
Servicer to deliver the related Mortgage Loan data as required by this Agreement
or (iv) restrictions imposed by any regulatory authority having jurisdiction
over the Master Servicer. No successor master servicer shall be deemed to be in
default hereunder by reason of any failure to make, or any delay in making, any
distribution hereunder or any portion thereof caused by (i) the failure of the
Securities Administrator to deliver, or any delay in delivering cash, documents
or records to it related to such distribution, or (ii) the failure of Trustee or
the Securities Administrator to cooperate as required by this Agreement.

      Section 6.15 Additional Remedies of Trustee Upon Event of Default.

      During the continuance of any Event of Default, so long as such Event of
Default shall not have been remedied, the Trustee, in addition to the rights
specified in Section 6.14, shall have the right, in its own name and as trustee
of the Trust Fund, to take all actions now or hereafter existing at law, in
equity or by statute to enforce its rights and remedies and to protect the
interests, and enforce the rights and remedies, of the Certificateholders
(including the institution and prosecution of all judicial, administrative and
other proceedings and the filings of proofs of claim and debt in connection
therewith). Except as otherwise expressly provided in this Agreement, no remedy
provided for by this Agreement shall be exclusive of any other remedy, and each
and every remedy shall be cumulative and in addition to any other remedy, and no
delay or omission to exercise any right or remedy shall impair any such right or
remedy or shall be deemed to be a waiver of any Event of Default.

      Section 6.16 Waiver of Defaults.

      More than 50% of the Aggregate Voting Interests of the Certificateholders
may waive any default or Event of Default by the Master Servicer in the
performance of its obligations hereunder, except that a default in the making of
any required deposit to the Distribution Account that would result in a failure
of the Securities Administrator or the Paying Agent to make any required payment
of principal of or interest on the Certificates may only be waived with the
consent of 100% 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

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extend to any subsequent or other default or impair any right consequent thereon
except to the extent expressly so waived.

      Section 6.17 Notification to Holders.

      Upon termination of the Master Servicer or appointment of a successor to
the Master Servicer, in each case as provided herein, the Trustee shall promptly
mail notice thereof by first class mail to the Securities Administrator and the
Certificateholders at their respective addresses appearing on the Certificate
Register. The Trustee shall also, within 45 days after the occurrence of any
Event of Default known to the Trustee, give written notice thereof to the
Securities Administrator and the Certificateholders, unless such Event of
Default shall have been cured or waived prior to the issuance of such notice and
within such 45-day period.

      Section 6.18 Directions by Certificateholders and Duties of Trustee During
                   Event of Default.

      Subject to the provisions of Section 8.01 hereof, during the continuance
of any Event of Default, Holders of Certificates evidencing not less than 25% of
the Class Principal Balance (or Percentage Interest) of each Class of
Certificates affected thereby may direct 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; provided,
however, that the Trustee shall be under no obligation to pursue any such
remedy, or to exercise any of the trusts or powers vested in it by this
Agreement (including, without limitation, (i) the conducting or defending of any
administrative action or litigation hereunder or in relation hereto and (ii) the
terminating of the Master Servicer or any successor master servicer from its
rights and duties as master servicer hereunder) at the request, order or
direction of any of the Certificateholders, unless such Certificateholders shall
have offered to the Trustee security or indemnity reasonably satisfactory to it
against the cost, expenses and liabilities which may be incurred therein or
thereby; and, provided further, that, subject to the provisions of Section 8.01,
the Trustee shall have the right to decline to follow any such direction if the
Trustee, in accordance with an Opinion of Counsel, determines that the action or
proceeding so directed may not lawfully be taken or if the Trustee in good faith
determines that the action or proceeding so directed would involve it in
personal liability for which it is not indemnified to its satisfaction.

      Section 6.19 Action Upon Certain Failures of the Master Servicer and Upon
                   Event of Default.

      In the event that a Responsible Officer of the Trustee shall have actual
knowledge or written notice of any action or inaction of the Master Servicer
that would become an Event of Default, upon the Master Servicer's failure to
remedy the same after notice, the Trustee shall give notice thereof to the
Master Servicer.

      Section 6.20 Preparation of Tax Returns and Reports.

      (a) The Securities Administrator shall prepare or cause to be prepared on
behalf of the Trust Fund, based upon information calculated in accordance with
this Agreement pursuant to instructions given by the Depositor, and the
Securities Administrator shall file federal tax returns, all in accordance with
Article X hereof. If the Securities Administrator is notified in

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writing that a state tax return or other return is required, then, at the sole
expense of the Trust Fund, the Securities Administrator shall prepare and file
such state income tax returns and such other returns as may be required by
applicable law relating to the Trust Fund, and, if required by state law, shall
file any other documents to the extent required by applicable state tax law (to
the extent such documents are in the Securities Administrator's possession). The
Securities Administrator shall forward copies to the Depositor of all such
returns and Form 1099 supplemental tax information and such other information
within the control of the Securities Administrator as the Depositor may
reasonably request in writing, and shall forward to each Certificateholder such
forms and furnish such information within the control of the Securities
Administrator as are required by the Code and the REMIC Provisions to be
furnished to them, and will prepare and forward to Certificateholders Form 1099
(supplemental tax information) (or otherwise furnish information within the
control of the Securities Administrator) to the extent required by applicable
law. The Master Servicer will indemnify the Securities Administrator and the
Trustee for any liability of or assessment against the Securities Administrator
or the Trustee, as applicable, resulting from any error in any of such tax or
information returns directly resulting from errors in the information provided
by such Master Servicer except to the extent that such information was provided
in reasonable reliance upon information from any Servicer.

      (b) The Securities Administrator shall prepare and file with the Internal
Revenue Service ("IRS"), on behalf of the Trust Fund and each REMIC created
hereunder, an application for an employer identification number on IRS Form SS-4
or by any other acceptable method. The Securities Administrator shall also file
a Form 8811 as required. The Securities Administrator, upon receipt from the IRS
of the Notice of Taxpayer Identification Number Assigned, shall upon request
promptly forward a copy of such notice to the Trustee and the Depositor. The
Securities Administrator shall furnish any other information that is required by
the Code and regulations thereunder to be made available to the
Certificateholders. The Master Servicer agrees that it shall cause each Servicer
to, provide the Securities Administrator with such information related to the
Mortgage Loans in the possession of such Servicer, as may reasonably be required
for the Securities Administrator to prepare such reports.

                                   ARTICLE VII

                         PURCHASE OF MORTGAGE LOANS AND
                          TERMINATION OF THE TRUST FUND

      Section 7.01 Purchase of Mortgage Loans; Termination of Trust Fund Upon
                   Purchase or Liquidation of All Mortgage Loans.

      (a) The respective obligations and responsibilities of the Trustee, the
Securities Administrator and the Master Servicer created hereby (other than the
obligation of the Securities Administrator to make payments to the
Certificateholders as set forth in Section 7.02), shall terminate on the
earliest of (i) the final payment or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property, (ii) the
sale of the property held by the Trust Fund in accordance with Section 7.01(c)
and (iii) the Latest Possible Maturity Date; provided, however, that in no event
shall the Trust Fund 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

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hereof. Any termination of the Trust Fund shall be carried out in such a manner
so that the termination of each REMIC included therein shall qualify as a
"qualified liquidation" under the REMIC Provisions.

      (b) [Reserved].

      (c) On any Distribution Date occurring on or after the Initial Optional
Purchase Date, the Master Servicer has the option to cause the Trust Fund to
adopt a plan of complete liquidation of the Mortgage Loans pursuant to Sections
7.02 and 7.03 hereof to sell all of the property related thereto. If the Master
Servicer elects to exercise such option, it shall no later than 30 days prior to
the Distribution Date selected for purchase of the Mortgage Loans and all other
assets of the Trust Fund related to the Certificates (the "Purchase Date")
deliver written notice to the Trustee and the Securities Administrator and
either (a) deposit in the Distribution Account the Redemption Price or (b) state
in such notice that the Redemption Price shall be deposited in the Distribution
Account not later than 10:00 a.m., New York City time, on the Purchase Date.
Upon exercise of such option, the property of the Trust Fund shall be sold to
the Master Servicer at a price equal to the Redemption Price.

      (d) The Depositor, the Master Servicer, each Servicer, the Securities
Administrator, the Trustee and the Custodian shall be reimbursed from the
Redemption Price for any Advances, Servicer Advances, accrued and unpaid
Servicing Fees or other amounts with respect to the Mortgage Loans and any
related assets being purchased pursuant to Section 7.01(c) above that are
reimbursable to such parties (and such other amounts which, if not related to
the Mortgage Loans and other assets of the Trust Fund not being purchased, that
are then due and owing to any such Person) under this Agreement and the related
Purchase and Servicing Agreement or the related Custodial Agreement.

      Section 7.02 Procedure Upon Termination of Trust Fund.

      (a) Notice of any termination pursuant to the provisions of Section 7.01,
specifying the Distribution Date upon which the final distribution shall be made
or the purchase of the Trust's assets will occur, shall be given promptly by the
Securities Administrator by first class mail to Certificateholders mailed in the
case of a redemption of the Certificates, no later than (i) the first day of the
month in which the Distribution Date selected for redemption of the Certificates
shall occur or (ii) upon (x) the sale of all of the property of the Trust Fund
by the Securities Administrator or in the case of a sale of assets of the Trust
Fund, or (y) upon the final payment or other liquidation of the last Mortgage
Loan or REO Property in the Trust Fund. Such notice shall specify (A) the
Initial Optional Purchase Date, Distribution Date upon which final distribution
on the Certificates of all amounts required to be distributed to
Certificateholders pursuant to Section 5.02 will be made upon presentation and
surrender of the Certificates at the Certificate Registrar's Corporate Trust
Office, and (B) that the Record Date otherwise applicable to such Distribution
Date is not applicable, distribution being made only upon presentation and
surrender of the Certificates at the office or agency of the Securities
Administrator therein specified. The Securities Administrator shall give such
notice to the Trustee, the Master Servicer and the Certificate Registrar at the
time such notice is given to Holders of the Certificates. Upon any such
termination, the duties of the Certificate Registrar with respect to the
Certificates shall terminate and the Securities Administrator shall terminate,
the Distribution Account and any

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other account or fund maintained with respect to the Certificates, subject to
the Securities Administrator's obligation hereunder to hold all amounts payable
to Certificateholders in trust without interest pending such payment.

      (b) In the event that all of the Holders do not surrender their
Certificates for cancellation within three months after the time specified in
the above-mentioned written notice, the Securities Administrator shall give a
second written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice any Certificates shall not
have been surrendered for cancellation, the Securities Administrator may take
appropriate steps to contact the remaining Certificateholders concerning
surrender of such Certificates, and the cost thereof shall be paid out of the
amounts distributable to such Holders. If within two years after the second
notice any Certificates shall not have been surrendered for cancellation, the
Securities Administrator shall deliver any remaining funds being held by it to
the Holder of the Class A-R Certificates and the Holder of the Class A-R
Certificates shall, subject to applicable state law relating to escheatment,
hold all amounts distributable to such Holders for the benefit of such Holders.
No interest shall accrue on any amount held by the Securities Administrator and
not distributed to a Certificateholder due to such Certificateholder's failure
to surrender its Certificate(s) for payment of the final distribution thereon in
accordance with this Section. The foregoing provisions are intended to
distribute to each Class of Certificates any accrued and unpaid interest and/or
principal to which they are entitled based on their Pass-Through Rates and Class
Certificate Balances or Notional Amounts set forth in the Preliminary Statement
upon liquidation of the Trust Fund.

      (c) Any reasonable expenses incurred by the Securities Administrator or
the Trustee in connection with any purchase or termination or liquidation of the
Trust Fund shall be reimbursed from proceeds received from the liquidation of
the Trust Fund.

      Section 7.03 Additional Trust Fund Termination Requirements.

      (a) Any termination of the Trust Fund shall be effected in accordance with
the following additional requirements, unless the Master Servicer, exercising
its option to purchase all of the Mortgage Loans pursuant to Section 7.01(c),
delivers to the Trustee and the Securities Administrator, an Opinion of Counsel
(at the Master Servicer's expense), addressed to the Trustee and the Securities
Administrator to the effect that the failure of the Trust Fund to comply with
the requirements of this Section 7.03 will not result in an Adverse REMIC Event:

            (i) Within 89 days prior to the time of the making of the final
      payment on the Certificates, upon notification by the Master Servicer that
      it intends to exercise its option to cause the termination of the Trust
      Fund, the Securities Administrator on behalf of the Trustee shall adopt a
      plan of complete liquidation of the Trust Fund on behalf of each REMIC,
      meeting the requirements of a qualified liquidation under the REMIC
      Provisions;

            (ii) Any sale of the assets of the Trust Fund pursuant to Section
      7.01 shall be a sale for cash and shall occur at or after the time of
      adoption of such a plan of complete liquidation and prior to the time of
      making of the final payment on the Certificates;

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            (iii) On the date specified for final payment of the Certificates,
      the Securities Administrator shall make final distributions of principal
      and interest on the Certificates in accordance with Section 5.02 and,
      after payment of, or provision for any outstanding expenses, distribute or
      credit, or cause to be distributed or credited, to the Holders of the
      Residual Certificates all cash on hand after such final payment (other
      than cash retained to meet claims), and the Trust Fund (and each REMIC)
      shall terminate at that time; and

            (iv) In no event may the final payment on the Certificates or the
      final distribution or credit to the Holders of the Residual Certificates
      be made after the 89th day from the date on which the plan of complete
      liquidation is adopted.

      (b) By its acceptance of a Residual Certificate, each Holder thereof
hereby agrees to accept the plan of complete liquidation adopted by the
Securities Administrator on behalf of the Trust under this Section and to take
such other action in connection therewith as may be reasonably requested by the
Trustee, the Securities Administrator or any Servicer.

                                  ARTICLE VIII

                          RIGHTS OF CERTIFICATEHOLDERS

      Section 8.01 Limitation on Rights of Holders.

      (a) The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or this Trust Fund, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or
take any action or proceeding in any court for a partition or winding up of this
Trust Fund, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them. Except as otherwise expressly provided herein, no
Certificateholder, solely by virtue of its status as a Certificateholder, shall
have any right to vote or in any manner otherwise control the Master Servicer or
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.

      (b) No Certificateholder, solely by virtue of its status as
Certificateholder, shall have any right by virtue or by availing 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 an Event
of Default and of the continuance thereof, as hereinbefore provided, and unless
also the Holders of Certificates evidencing not less than 25% of the Class
Principal Amount or Class Notional Amount (or Percentage Interest) of
Certificates of each Class affected thereby shall have made written request upon
the Trustee to institute such action, suit or proceeding in its own name as
Trustee hereunder and shall have offered to the Trustee such reasonable
indemnity as it may require against the cost, expenses and liabilities to be
incurred therein or thereby, and the Trustee, for sixty 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 and no direction inconsistent
with such

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written request has been given such Trustee during such sixty-day period by such
Certificateholders; it being understood and intended, and being expressly
covenanted by each Certificateholder with every other Certificateholder, the
Securities Administrator and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue or by
availing of any provision of this Agreement to affect, disturb or prejudice the
rights of the Holders of any other of such Certificates, 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
benefit of all Certificateholders. 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 8.02 Access to List of Holders.

      (a) If the Trustee is not acting as Certificate Registrar, the Certificate
Registrar will furnish or cause to be furnished to the Trustee, within fifteen
days after receipt by the Certificate Registrar of a request by the Trustee in
writing, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Certificateholders of each Class as of the most
recent Record Date.

      (b) If three or more Holders or Certificate Owners (hereinafter referred
to as "Applicants") apply in writing to the Certificate Registrar, and such
application states that the Applicants desire to communicate with other Holders
with respect to their rights under this Agreement or under the Certificates and
is accompanied by a copy of the communication which such Applicants propose to
transmit, then the Certificate Registrar shall, within five Business Days after
the receipt of such application, afford such Applicants reasonable access during
the normal business hours of the Certificate Registrar to the most recent list
of Certificateholders held by the Certificate Registrar or shall, as an
alternative, send, at the Applicants' expense, the written communication
proffered by the Applicants to all Certificateholders at their addresses as they
appear in the Certificate Register.

      (c) Every Holder or Certificate Owner, if the Holder is a Clearing Agency,
by receiving and holding a Certificate, agrees with the Depositor, the Master
Servicer, the Securities Administrator, the Certificate Registrar and the
Trustee that none of the Depositor, the Master Servicer, the Securities
Administrator, the Certificate Registrar nor the Trustee shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Certificateholders hereunder, regardless of the source from
which such information was derived.

      Section 8.03 Acts of Holders of Certificates.

      (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Agreement to be given or taken by Holders or
Certificate Owners, if the Holder is a Clearing Agency, may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Holders in person or by agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and the Securities
Administrator and, where expressly required herein, to the Master Servicer. Such
instrument or

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instruments (as the action embodies therein and evidenced thereby) are herein
sometimes referred to as an "Act" of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agents shall be sufficient for any purpose of this Agreement
and conclusive in favor of the Trustee, the Securities Administrator and the
Master Servicer, if made in the manner provided in this Section. Each of the
Trustee, the Securities Administrator and the Master Servicer shall promptly
notify the others of receipt of any such instrument by it, and shall promptly
forward a copy of such instrument to the others.

      (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of any notary public or other officer authorized
by law to take acknowledgments or deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by an officer of a corporation or a member of a partnership on
behalf of such corporation or partnership, such certificate or affidavit shall
also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the individual
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

      (c) The ownership of Certificates (whether or not such Certificates shall
be overdue and notwithstanding any notation of ownership or other writing
thereon made by anyone other than the Trustee) shall be proved by the
Certificate Register, and none of the Trustee, the Securities Administrator, the
Master Servicer or the Depositor shall be affected by any notice to the
contrary.

      (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Certificate shall bind every future Holder
of the same Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Trustee or the
Master Servicer in reliance thereon, whether or not notation of such action is
made upon such Certificate.

                                   ARTICLE IX

                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
                             BY THE MASTER SERVICER

      Section 9.01 Duties of the Master Servicer; Enforcement of Servicers' and
Master Servicer's Obligations.

      (a) The Master Servicer, on behalf of the Trustee, the Depositor and the
Certificateholders shall monitor the performance of the Servicers under the
Purchase and Servicing Agreements, and shall use its reasonable good faith
efforts to cause the Servicers duly and punctually to perform all of their
respective duties and obligations thereunder. Upon the occurrence of a default
of which a Responsible Officer of the Master Servicer has actual knowledge under
a Purchase and Servicing Agreement, the Master Servicer shall promptly notify
the Trustee thereof, and shall specify in such notice the action, if any, the
Master Servicer is

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taking in respect of such default. So long as any such default shall be
continuing, the Master Servicer may, and shall if it determines such action to
be in the best interests of Certificateholders, (i) terminate all of the rights
and powers of such Servicer pursuant to the applicable provisions of the related
Purchase and Servicing Agreement; (ii) exercise any rights it may have to
enforce the related Purchase and Servicing Agreement against such Servicer;
and/or (iii) waive any such default under the related Purchase and Servicing
Agreement or take any other action with respect to such default as is permitted
thereunder. Notwithstanding anything to the contrary in this Agreement, with
respect to any Additional Collateral Mortgage Loan, the Master Servicer will
have no duty or obligation to supervise, monitor or oversee the activities of
the related Servicer under any Purchase and Servicing Agreement with respect to
any Additional Collateral or under any agreement relating to the pledge of, or
the perfection of a pledge or security interest in, any Additional Collateral
except upon the occurrence of the following events (i) in the case of a final
liquidation of any Mortgaged Property secured by Additional Collateral, the
Master Servicer shall enforce the obligation of the Servicer under the related
Servicing Agreement to liquidate such Additional Collateral as required by such
Servicing Agreement, and (ii) if the Master Servicer assumes the obligations of
such Servicer as successor Servicer under the related Servicing Agreement
pursuant to this Section 9.01, as successor Servicer, it shall be bound to
service and administer the Additional Collateral in accordance with the
provisions of such Servicing Agreement.

      (b) Upon any termination by the Master Servicer of a Servicer's rights and
powers pursuant to its Purchase and Servicing Agreement, the rights and powers
of such Servicer with respect to the related Mortgage Loans shall vest in the
Master Servicer and the Master Servicer shall be the successor in all respects
to such Servicer in its capacity as Servicer with respect to such Mortgage Loans
under the related Purchase and Servicing Agreement, unless or until the Master
Servicer shall have appointed (and the Trustee shall have acknowledged), with
the consent of the Rating Agencies and in accordance with the applicable
provisions of the related Purchase and Servicing Agreement, a new Fannie Mae- or
FHLMC-approved Person to serve as successor to the Servicer; provided, however,
that it is understood and agreed by the parties hereto that there will be a
period of transition (not to exceed 90 days) before the actual servicing
functions can be fully transferred to a successor servicer (including the Master
Servicer). With such letter from the Rating Agencies, the Master Servicer may
elect to continue to serve as successor servicer under the Purchase and
Servicing Agreement. Upon appointment of a successor servicer, as authorized
under this Section 9.01(b), unless the successor servicer shall have assumed the
obligations of the terminated Servicer under such Purchase and Servicing
Agreement, the Master Servicer and such successor servicer shall enter into a
servicing agreement in a form substantially similar to the affected Purchase and
Servicing Agreement, and the Trustee shall acknowledge such servicing agreement.
In connection with any such appointment, the Master Servicer may make such
arrangements for the compensation of such successor servicer as it and such
successor servicer shall agree, but in no event shall such compensation of any
successor servicer (including the Master Servicer) be in excess of that payable
to the Servicer under the affected Purchase and Servicing Agreement.

      The Master Servicer shall pay the costs of such enforcement (including the
termination of a Servicer, the appointment of a successor servicer or the
transfer and assumption of the servicing by the Master Servicer) at its own
expense and shall be reimbursed therefor initially (i) by the terminated
Servicer, (ii) from a general recovery resulting from such enforcement only

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to the extent, if any, that such recovery exceeds all amounts due in respect of
the related Mortgage Loans, (iii) from a specific recovery of costs, expenses or
attorney's fees against the party against whom such enforcement is directed, or
(iv) to the extent that such amounts described in (i)-(iii) above are
insufficient to reimburse the Master Servicer for such costs of enforcement,
from the Trust Fund, as provided in Section 9.04.

      If the Master Servicer assumes the servicing with respect to any of the
Mortgage Loans, it will not assume liability for the representations and
warranties of any Servicer it replaces or for the errors or omissions of such
Servicer.

If the Seller is the owner of the servicing rights and the Seller chooses to
terminate that Servicer with or without cause and sell those servicing rights to
a successor servicer, then the Depositor shall (i) cause the Seller to give
reasonable prior written notice to the Master Servicer, and (ii) obtain a letter
from the Rating Agencies indicating that the appointment of the proposed
successor servicer will not result in a downgrade or withdrawal of the rating of
any of the Certificates, and a New Fannie Mae- or FHLMC-approved Person
reasonably acceptable to the Master Servicer shall be chosen by the Seller and
appointed as successor servicer with the acknowledgment of the Master Servicer
and the Trustee; provided, however, that the Seller shall not be required to get
a no-downgrade letter from the Rating Agencies if: (i) the Rating Agencies
received prior written notice of the transfer of the servicing rights and the
name of the successor Servicer, (ii) such successor Servicer has a servicing
rating in the highest category of Fitch or Moody's to the extent that Fitch or
Moody's, respectively, is a Rating Agency, and such successor Servicer has a
servicer evaluation ranking in one of the two highest categories of S&P to the
extent that S&P is a Rating Agency, and (iii) such successor Servicer shall
service the related Mortgage Loans under either the Purchase and Servicing
Agreement together with the related Assignment Agreement under which such
Mortgage Loans are currently being serviced or under another Servicing Agreement
together with a related Assignment Agreement that have already been reviewed and
approved by the Rating Agencies. The Depositor shall cause the costs of such
transfer including any costs of such transfer (including any costs of the Master
Servicer) to be borne by the Seller.

      At least 15 calendar days prior to the effective date of such termination,
(x) the Depositor shall provide written notice to the Master Servicer and all
information reasonably requested by the Depositor in order to comply with its
reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
servicer.

      (c) Upon any termination of a Servicer's rights and powers pursuant to its
Purchase and Servicing Agreement, the Master Servicer shall promptly notify the
Trustee and the Rating Agencies, specifying in such notice that the Master
Servicer or any successor servicer, as the case may be, has succeeded such
Servicer under the related Purchase and Servicing Agreement or under any other
servicing agreement reasonably satisfactory to the Master Servicer and the
Rating Agencies, which notice shall also specify the name and address of any
such successor servicer.

      (d) The Depositor shall not consent to the assignment by any Servicer of
such Servicer's rights and obligations under the related Purchase and Servicing
Agreement without

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the prior written consent of the Master Servicer, which consent shall not be
unreasonably withheld.

      (e) The Trustee shall execute and deliver, at the written request of the
Master Servicer or any Servicer, and furnish to the Master Servicer and any
Servicer, at the expense of the requesting party, a power of attorney in the
standard form provided by the Trustee to take title to the Mortgaged Properties
after foreclosure in the name of and on behalf of the Trustee in its capacity as
Trustee hereunder and for the purposes described herein to the extent necessary
or desirable to enable the Master Servicer or any Servicer to perform its
respective duties. The Trustee shall not be liable for the actions of the Master
Servicer or any Servicer under such powers of attorney.

      Section 9.02 Assumption of Master Servicing by Trustee.

      (a) In the event the Master Servicer shall for any reason no longer be the
Master Servicer (including by reason of any Event of Default by the Master
Servicer under this Agreement), the Trustee shall thereupon assume all of the
rights and obligations of such Master Servicer hereunder and under each Purchase
and Servicing Agreement entered into with respect to the Mortgage Loans or shall
appoint or petition a court to appoint a Fannie-Mae or FHLMC-approved servicer
as successor servicer that is acceptable to the Depositor and the Rating
Agencies. The Trustee, as successor master servicer, its designee or any
successor master servicer appointed by the Trustee shall be deemed to have
assumed all of the Master Servicer's interest herein and therein to the same
extent as if such Purchase and Servicing Agreements had been assigned to the
assuming party, except that the Master Servicer shall not thereby be relieved of
any liability or obligations of the Master Servicer under such Purchase and
Servicing Agreement accruing prior to its replacement as Master Servicer, and
shall be liable to the Trustee, and hereby agrees to indemnify and hold harmless
the Trustee (in its individual corporate capacity and as Trustee hereunder) from
and against all costs, damages, expenses and liabilities (including reasonable
attorneys' fees) incurred by the Trustee as a result of such liability or
obligations of the Master Servicer and in connection with the Trustee's
assumption (but not its performance, except to the extent that costs or
liability of the Trustee are created or increased as a result of negligent or
wrongful acts or omissions of the Master Servicer prior to its replacement as
Master Servicer) of the Master Servicer's obligations, duties or
responsibilities thereunder. To the extent that the costs and expenses of the
Trustee described in this Section are not timely reimbursed by the Master
Servicer, the Trustee shall be entitled to reimbursement from the Distribution
Account and the Master Servicer is hereby obligated to reimburse the Trust
promptly for such amounts by deposit thereof in the Distribution Account.

      (b) The Master Servicer that has been terminated shall, upon request of
the Trustee but at the expense of such Master Servicer, deliver to the assuming
party all documents and records relating to each Purchase and Servicing
Agreement, this Agreement and the related Mortgage Loans and an accounting of
amounts collected and held by it and otherwise use its best efforts to effect
the orderly and efficient transfer of each Purchase and Servicing Agreement and
this Agreement to the assuming party.

      Section 9.03 Representations and Warranties of the Master Servicer.

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      The Master Servicer hereby represents and warrants to the Depositor, the
Securities Administrator and the Trustee, for the benefit of the
Certificateholders, as of the Closing Date that:

            (i) it is validly existing and in good standing under the laws of
      the United States of America as a national banking association, and as
      Master Servicer has full power and authority to transact any and all
      business contemplated by this Agreement and to execute, deliver and comply
      with its obligations under the terms of this Agreement, the execution,
      delivery and performance of which have been duly authorized by all
      necessary corporate action on the part of the Master Servicer;

            (ii) the execution and delivery of this Agreement by the Master
      Servicer and its performance and compliance with the terms of this
      Agreement will not (A) violate the Master Servicer's charter or bylaws,
      (B) violate any law or regulation or any administrative decree or order to
      which it is subject or (C) 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 Master Servicer is a party or by which it is bound
      or to which any of its assets are subject, which violation, default or
      breach would materially and adversely affect the Master Servicer's ability
      to perform its obligations under this Agreement;

            (iii) this Agreement constitutes, assuming due authorization,
      execution and delivery hereof by the other respective parties hereto, a
      legal, valid and binding obligation of the Master Servicer, enforceable
      against it in accordance with the terms hereof, except as such enforcement
      may be limited by bankruptcy, insolvency, reorganization, moratorium and
      other laws affecting the enforcement of creditors' rights in general, and
      by general equity principles (regardless of whether such enforcement is
      considered in a proceeding in equity or at law);

            (iv) the Master Servicer is not in default with respect to any order
      or decree of any court or any order or regulation of any federal, state,
      municipal or governmental agency to the extent that any such default would
      materially and adversely affect its performance hereunder;

            (v) the Master Servicer is not a party to or bound by any agreement
      or instrument or subject to any charter provision, bylaw or any other
      corporate restriction or any judgment, order, writ, injunction, decree,
      law or regulation that may materially and adversely affect its ability as
      Master Servicer to perform its obligations under this Agreement or that
      requires the consent of any third person to the execution of this
      Agreement or the performance by the Master Servicer of its obligations
      under this Agreement;

            (vi) no litigation is pending or, to the best of the Master
      Servicer's knowledge, threatened against the Master Servicer which would
      prohibit its entering into this Agreement or performing its obligations
      under this Agreement;

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            (vii) the Master Servicer, or an affiliate thereof the primary
      business of which is the servicing of conventional residential mortgage
      loans, is a Fannie Mae- or FHLMC-approved seller/servicer;

            (viii) no consent, approval, authorization or order of any court or
      governmental agency or body is required for the execution, delivery and
      performance by the Master Servicer of or compliance by the Master Servicer
      with this Agreement or the consummation of the transactions contemplated
      by this Agreement, except for such consents, approvals, authorizations and
      orders (if any) as have been obtained; and

            (ix) the consummation of the transactions contemplated by this
      Agreement are in the ordinary course of business of the Master Servicer.

      It is understood and agreed that the representations and warranties set
forth in this Section shall survive the execution and delivery of this
Agreement. The Master Servicer shall indemnify the Depositor, the Securities
Administrator and the Trustee and hold them harmless against any loss, damages,
penalties, fines, forfeitures, legal fees and related costs, judgments, and
other costs and expenses resulting from any claim, demand, defense or assertion
based on or grounded upon, or resulting from, a material breach of the Master
Servicer's representations and warranties contained in this Section 9.03. It is
understood and agreed that the enforcement of the obligation of the Master
Servicer set forth in this Section to indemnify the Depositor, the Securities
Administrator and the Trustee as provided in this Section constitutes the sole
remedy (other than as set forth in Section 6.14) of the Depositor, the
Securities Administrator and the Trustee, respecting a breach of the foregoing
representations and warranties. Such indemnification shall survive any
termination of the Master Servicer as Master Servicer hereunder, the resignation
or removal of the Trustee and any termination of this Agreement.

      Any cause of action against the Master Servicer relating to or arising out
of the breach of any representations and warranties made in this Section shall
accrue upon discovery of such breach by either the Depositor, the Master
Servicer or the Trustee or notice thereof by any one of such parties to the
other parties.

      Section 9.04 Compensation to the Master Servicer.

      The Master Servicer shall be compensated for its duties hereunder pursuant
to Section 4.02(b) hereof.

      The Master Servicer shall either retain or withdraw from the Distribution
Account (i) amounts necessary to reimburse itself for any previously
unreimbursed Advances, Servicer Advances and Nonrecoverable Advances with
respect to the Mortgage Loans in accordance with the definition of "Available
Funds" and (ii) amounts representing assumption fees, late payment charges or
other ancillary income not included in the definition of "Available Funds" and
which are not required to be remitted by the Servicers to the Securities
Administrator or deposited by the Securities Administrator into the Distribution
Account. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its activities hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement.

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      In addition, the Master Servicer shall be entitled to reimbursement from
the Distribution Account for all reasonable expenses, disbursements and advances
incurred or made by the Master Servicer in connection with the performance of
its duties hereunder and under the Purchase and Servicing Agreements, as
modified by the Acknowledgements (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), to the extent not
otherwise reimbursed pursuant to this Agreement, except any such expense,
disbursement or advance as may be attributable to its willful misfeasance, bad
faith or negligence.

      The Master Servicer and any director, officer, employee or agent of the
Master Servicer shall be indemnified by the Trust and held harmless thereby
against any loss, liability or expense (including reasonable legal fees and
disbursements of counsel) incurred on their part that may be sustained in
connection with, arising out of, or related to, any claim or legal action
(including any pending or threatened claim or legal action) relating to this
Agreement, the Purchase and Servicing Agreements or the Certificates, other than
any loss, liability or expense resulting from the Master Servicer's failure to
perform its duties hereunder or thereunder or incurred by reason of the Master
Servicer's negligence, willful misfeasance or bad faith.

      Section 9.05 Merger or Consolidation.

      Any Person into which the Master Servicer may be merged or consolidated,
or any Person resulting from any merger, conversion, other change in form or
consolidation to which the Master Servicer shall be a party, or any Person
succeeding to the business of the Master Servicer shall be the successor to the
Master 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 resulting
Person to the Master Servicer shall be a Person that shall be qualified and
approved to service mortgage loans for Fannie Mae or FHLMC and shall have a net
worth of not less than $15,000,000.

      As a condition to the effectiveness of any merger or consolidation, at
least 15 calendar days prior to the effective date of any merger or
consolidation of the Master Servicer, the Master Servicer shall provide (x)
written notice to the Depositor of any successor pursuant to this Section and
(y) in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect to
a replacement Master Servicer.

      Section 9.06 Resignation of Master Servicer and Securities Administrator.

      Except as otherwise provided in Sections 9.05, 9.07 and 9.10 hereof,
neither the Master Servicer nor the Securities Administrator shall resign from
the obligations and duties hereby imposed on it unless the duties of the Master
Servicer or the Securities Administrator, as applicable, hereunder are no longer
permissible under applicable law or are in material conflict by reason of
applicable law with any other activities carried on by it and cannot be cured.
Any such determination permitting the resignation of the Master Servicer or the
Securities Administrator shall be evidenced by an Opinion of Counsel that shall
be Independent to such effect delivered to the Trustee. No resignation of the
Master Servicer or the Securities Administrator shall become effective until the
Trustee shall have assumed, or a successor master

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servicer or successor securities administrator, as applicable, shall have been
appointed pursuant to Section 6.07 or 9.02, as applicable, and until such
successor shall have assumed, such Master Servicer's or Securities
Administrator's responsibilities and obligations under this Agreement. Notice of
any such resignation shall be given promptly by the Master Servicer or the
Securities Administrator, as applicable, to the Depositor and the Trustee.

      If, at any time, the Master Servicer resigns under this Section 9.06, or
transfers or assigns its rights and obligations under Section 9.07, or is
removed as Master Servicer pursuant to Section 6.14, then at such time [Wells
Fargo Bank, National Association] (or any successor thereto) also shall resign
or be removed, as applicable, as Securities Administrator, Paying Agent,
Authenticating Agent and Certificate Registrar under this Agreement. In such
event, the obligations of the Master Servicer and the Securities Administrator
shall be assumed by the Trustee as successor or by such other successor master
servicer and/or securities administrator, as applicable, appointed by the
Trustee (subject to the provisions of Sections 6.07 and 9.02(a)).

      As a condition to the effectiveness of any such resignation, at least 15
calendar days prior to the effective date of such resignation, the Master
Servicer shall provide (x) written notice to the Depositor of any successor
pursuant to this Section and (y) in writing and in form and substance reasonably
satisfactory to the Depositor, all information reasonably requested by the
Depositor in order to comply with its reporting obligation under Item 6.02 of
Form 8-K with respect to the resignation of the Master Servicer.

      Section 9.07 Assignment or Delegation of Duties by the Master Servicer and
                   Securities Administrator.

      Except as expressly provided herein, neither the Master Servicer nor the
Securities Administrator shall assign or transfer any of their respective
rights, benefits or privileges hereunder to any other Person, or delegate to or
subcontract with, or authorize or appoint any other Person to perform any of the
respective duties, covenants or obligations to be performed by the Master
Servicer or Securities Administrator, as applicable, hereunder; provided,
however, that the Master Servicer and the Securities Administrator shall each
have the right with the prior written consent of the Trustee and the Depositor
(which consent shall not be unreasonably withheld), and upon delivery to the
Trustee and the Depositor of a letter from each Rating Agency to the effect that
such action shall not result in a downgrading of the Certificates, to delegate
or assign to or subcontract with or authorize or appoint any qualified Person to
perform and carry out any of the respective duties, covenants or obligations to
be performed and carried out by the Master Servicer or the Securities
Administrator, as applicable, hereunder. Notice of such permitted assignment
shall be given promptly by the Master Servicer or the Securities Administrator,
as applicable, to the Depositor and the Trustee. If, pursuant to any provision
hereof, the respective duties of the Master Servicer or the Securities
Administrator are transferred to a successor master servicer or successor
securities administrator, as applicable, the entire amount of the compensation
payable to the Master Servicer or Securities Administrator pursuant hereto shall
thereafter be payable to such successor master servicer or successor securities
administrator. Such successor Master Servicer shall also pay the fees of the
Trustee, as provided herein.

      Section 9.08 Limitation on Liability of the Master Servicer and Others.

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      (a) Neither the Master Servicer nor any of the directors, officers,
employees or agents of the Master 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 Master
Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its
performance of its duties or by reason of reckless disregard for its obligations
and duties under this Agreement. The Master Servicer and any director, officer,
employee or agent of the Master Servicer may rely in good faith on any document
of any kind prima facie properly executed and submitted by any Person respecting
any matters arising hereunder. The Master Servicer shall be under no obligation
to appear in, prosecute or defend any legal action that is not incidental to its
duties to master service the Mortgage Loans in accordance with this Agreement
and that in its opinion may involve it in any expenses or liability; provided,
however, that the Master Servicer may in its sole discretion undertake any such
action that it may deem necessary or desirable in respect to this Agreement and
the rights and duties of the parties hereto and the interests of the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and
liabilities of the Trust Fund and the Master Servicer shall be entitled to be
reimbursed therefor out of the Distribution Account.

      The Master Servicer shall not be liable for any acts or omissions of the
Servicers except to the extent that damages or expenses are incurred as a result
of such act or omissions and such damages and expenses would not have been
incurred but for the negligence, willful misfeasance, bad faith or recklessness
of the Master Servicer in supervising, monitoring and overseeing the obligations
of the Servicers in this Agreement and the Purchase and Servicing Agreements.

      Section 9.09 Indemnification; Third-Party Claims.

      The Master Servicer agrees to indemnify the Depositor, the Securities
Administrator and the Trustee, and hold them harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, liability, fees and expenses that the Depositor,
the Securities Administrator or the Trustee may sustain as a result of the
Master Servicer's willful misfeasance, bad faith or negligence in the
performance of its duties hereunder or by reason of its reckless disregard for
its obligations and duties under this Agreement, the Acknowledgements and the
related Purchase and Servicing Agreements. The Depositor, the Securities
Administrator and the Trustee shall immediately notify the Master Servicer if a
claim is made by a third party with respect to this Agreement or the Mortgage
Loans entitling the Depositor, the Securities Administrator or the Trustee to
indemnification under this Section 9.09, whereupon the Master Servicer shall
assume the defense of any such claim and pay all expenses in connection
therewith, including counsel fees, and promptly pay, discharge and satisfy any
judgment or decree which may be entered against it or them in respect of such
claim.

      Section 9.10 Eligibility Requirements for Securities Administrator.

      The Securities Administrator hereunder shall at all times be a corporation
or association organized and doing business under the laws the United States of
America or any state thereof, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state

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authority and with a credit rating of at least investment grade or at least
"A/F1" by Fitch if Fitch is a Rating Agency. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 9.10 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Securities Administrator shall cease to be eligible in
accordance with the provisions of this Section 9.10, the Securities
Administrator shall resign immediately in the manner and with the effect
specified in Section 6.06 hereof. The entity serving as Securities Administrator
may have normal banking and trust relationships with the Depositor, the Seller,
the Master Servicer, any Custodian or the Trustee and their respective
affiliates.

      The Securities Administrator (i) may not be an Originator, Master
Servicer, Servicer, the Depositor or an affiliate of the Depositor unless the
Securities Administrator is in an institutional trust department, (ii) must be
authorized to exercise corporate trust powers under the laws of its jurisdiction
of organization, and (iii) must be rated at least "A/F1" by Fitch, if Fitch is a
Rating Agency, or the equivalent rating by S&P or Moody's (or such rating
acceptable to Fitch pursuant to a written confirmation). If at any time the
Securities Administrator shall cease to be eligible in accordance with the
provisions of this Section 9.10, the Securities Administrator shall resign in
the manner and with the effect specified in Section 6.06 hereof. If no successor
Securities Administrator shall have been appointed and shall have accepted
appointment within 60 days after the Securities Administrator ceases to be the
Securities Administrator pursuant to this Section 9.10, then the Trustee shall
become the successor Securities Administrator in accordance with Article VI
hereof and in such capacity shall perform the duties of the Securities
Administrator pursuant to this Agreement. The Trustee shall notify the Rating
Agencies of any change of Securities Administrator.

      Section 9.11 Annual Statement as to Compliance.

      The Master Servicer and the Securities Administrator shall deliver (and
the Master Servicer and Securities Administrator shall cause any Additional
Servicer engaged by it to deliver) to the Depositor and the Securities
Administrator on or before March 15 of each year, commencing in March 200_, an
Officer's Certificate stating, as to the signer thereof, that (A) a review of
such party's activities during the preceding calendar year or portion thereof
and of such party's performance under this Agreement, or such other applicable
agreement in the case of an Additional Servicer, has been made under such
officer's supervision, (B) to the best of such officer's knowledge, based on
such review, such party has fulfilled all its obligations under this Agreement,
or such other applicable agreement in the case of an Additional Servicer, in all
material respects throughout such year or 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 and
(C) in the case of the Master Servicer, to the best of such officer's knowledge,
each Servicer has fulfilled all its obligations under its Servicing Agreement in
all material respects throughout such year, 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.

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      The Master Servicer shall enforce any obligation of the Servicers, to the
extent set forth in the related Servicing Agreement, to deliver to the Master
Servicer an annual statement of compliance and all reports and other information
required from the Servicers under Reg AB within the time frame set forth in, and
in such form and substance as may be required pursuant to, the related Servicing
Agreement The Master Servicer shall include such annual statements of compliance
with its own annual statement of compliance to be submitted to the Securities
Administrator pursuant to this Section.

                                    ARTICLE X

                              REMIC ADMINISTRATION

      Section 10.01 REMIC Administration.

      (a) REMIC elections as set forth in the Preliminary Statement shall be
made on Forms 1066 or other appropriate federal tax or information return for
the taxable year ending on the last day of the calendar year in which the
Certificates are issued. The regular interests and residual interest in each
REMIC shall be as designated in the Preliminary Statement.

      (b) The Closing Date is hereby designated as the "Startup Day" of each
REMIC within the meaning of section 860G(a)(9) of the Code. The latest possible
maturity date for purposes of Treasury Regulation 1.860G-1(a)(4) will be the
Latest Possible Maturity Date.

      (c) The Securities Administrator shall represent the Trust Fund in any
administrative or judicial proceeding relating to an examination or audit by any
governmental taxing authority with respect thereto. The Securities Administrator
shall pay any and all tax related expenses (not including taxes) of each REMIC,
including but not limited to any professional fees or expenses related to audits
or any administrative or judicial proceedings with respect to such REMIC that
involve the Internal Revenue Service or state tax authorities, but only to the
extent that (i) such expenses are ordinary or routine expenses, including
expenses of a routine audit but not expenses of litigation (except as described
in (ii)); or (ii) such expenses or liabilities (including taxes and penalties)
are attributable to the negligence or willful misconduct of the Securities
Administrator in fulfilling its duties hereunder (including its duties as tax
return preparer). The Securities Administrator shall be entitled to
reimbursement of expenses to the extent provided in clause (i) above from the
Distribution Account, provided, however, the Securities Administrator shall not
be entitled to reimbursement for expenses incurred in connection with the
preparation of tax returns and other reports as required by Section 6.20 and
this Section.

      (d) The Securities Administrator shall prepare, the Trustee shall sign and
the Securities Administrator shall file all of each REMIC's federal and
appropriate state tax and information returns as such REMIC's direct
representative. The expenses of preparing and filing such returns shall be borne
by the Securities Administrator. In preparing such returns, the Securities
Administrator shall, with respect to each REMIC other than the Master REMIC: (i)
treat the accrual period for interests in such REMIC as the calendar month; (ii)
account for distributions made from each REMIC other than the Master REMIC as
made on the first day of each succeeding calendar month; (iii) account for
income under the all-OID method at the weighted average of the Net Mortgage
Rates; (iv) use the aggregation method provided in

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Treasury Regulation section 1.1275-2(c); and (v) account for income and expenses
related to each REMIC other than the Master REMIC in the manner resulting in the
lowest amount of excess inclusion income possible accruing to the Holder of the
residual interest in each such REMIC.

      (e) The Securities Administrator or its designee shall perform on behalf
of each REMIC all reporting and other tax compliance duties that are the
responsibility of such REMIC under the Code, the REMIC Provisions, or other
compliance guidance issued by the Internal Revenue Service or any state or local
taxing authority. Among its other duties, if required by the Code, the REMIC
Provisions, or other such guidance, the Securities Administrator shall provide,
upon receipt of additional reasonable compensation, (i) to the Treasury or other
governmental authority such information as is necessary for the application of
any tax relating to the transfer of a Residual Certificate to any disqualified
person or organization pursuant to Treasury Regulation 1.860E-2(a)(5) and any
person designated in Section 860E(e)(3) of the Code and (ii) to the
Certificateholders and the Trustee such information or reports as are required
by the Code or REMIC Provisions.

      (f) To the extent within their control, the Trustee, the Securities
Administrator, the Master Servicer and the Holders of Certificates shall take
any action or cause any REMIC to take any action necessary to maintain the
status of any REMIC as a REMIC under the REMIC Provisions and shall assist each
other as necessary to create or maintain such status. None of the Trustee, the
Securities Administrator, the Master Servicer, nor the Holder of any Residual
Certificate shall knowingly take any action, cause any REMIC to take any action
or fail to take (or fail to cause to be taken) any action that, under the REMIC
Provisions, if taken or not taken, as the case may be, could result in an
Adverse REMIC Event unless the Trustee, the Securities Administrator and the
Master Servicer have received an Opinion of Counsel (at the expense of the party
seeking to take such action) to the effect that the contemplated action will not
endanger such status or result in the imposition of such a tax. In addition,
prior to taking any action with respect to any REMIC or the assets therein, or
causing any REMIC to take any action, which is not expressly permitted under the
terms of this Agreement, any Holder of a Residual Certificate will consult with
the Trustee, the Securities Administrator, the Master Servicer or their
respective designees, in writing, with respect to whether such action could
cause an Adverse REMIC Event to occur with respect to any REMIC, and no such
Person shall take any such action or cause any REMIC to take any such action as
to which the Trustee, the Securities Administrator or the Master Servicer has
advised it in writing that an Adverse REMIC Event could occur; provided,
however, that if no Adverse REMIC Event would occur but such action could result
in the imposition of additional taxes on the Residual Certificateholders, no
such Person shall take any such action, or cause any REMIC to take any such
action without the written consent of the Residual Certificateholders.

      (g) Each Holder of a Residual Certificate shall pay when due any and all
taxes imposed on the related REMIC by federal or state governmental authorities.
To the extent that such taxes are not paid by a Residual Certificateholder, the
Paying Agent shall pay any remaining REMIC taxes out of current or future
amounts otherwise distributable to the Holder of the Residual Certificate in any
such REMIC or, if no such amounts are available, (A) out of other amounts held
in the Distribution Account, and shall reduce amounts otherwise payable to
holders of regular interests in any such REMIC or (B) to the extent that any
such taxes are imposed on

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the REMIC as a result of the breach of any representation, warranty or covenant
of the Master Servicer, the Securities Administrator or any Servicer, then the
Master Servicer, the Securities Administrator, or that Servicer, as applicable,
shall pay when due any and all such taxes.

      (h) The Securities Administrator shall, for federal income tax purposes,
maintain books and records with respect to each REMIC on a calendar year and on
an accrual basis.

      (i) No additional contributions of assets shall be made to any REMIC,
except as expressly provided in this Agreement.

      (j) Neither the Securities Administrator nor the Master Servicer shall
enter into any arrangement by which any REMIC will receive a fee or other
compensation for services.

      (k) [Reserved].

      (l) The Class A-R Holder shall act as "tax matters person" with respect to
each REMIC created hereunder and the Securities Administrator shall act as agent
for the Class A-R Holder in such roles, unless and until another party is so
designated by the Class A-R Holder.

      Section 10.02 Prohibited Transactions and Activities.

      Neither the Depositor, the Master Servicer nor the Trustee shall sell,
dispose of, or substitute for any of the Mortgage Loans, except in a disposition
pursuant to (i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the
Trust Fund, (iii) the termination of each REMIC pursuant to Article VII of this
Agreement, (iv) a substitution pursuant to Article II of this Agreement or (v) a
repurchase of Mortgage Loans pursuant to Article II of this Agreement, nor
acquire any assets for any REMIC, nor sell or dispose of any investments in the
Distribution Account for gain, nor accept any contributions to any REMIC after
the Closing Date, unless it has received an Opinion of Counsel (at the expense
of the party causing such sale, disposition, substitution or acceptance) that
such disposition, acquisition, substitution, or acceptance will not result in an
Adverse REMIC Event, (b) affect the distribution of interest or principal on the
Certificates or (c) result in the encumbrance of the assets transferred or
assigned to the Trust Fund (except pursuant to the provisions of this
Agreement).

      The Master Servicer with respect to the Mortgage Loans shall not consent
to any modification of any such Mortgage Loan for which the consent of the
Master Servicer is required under the applicable Purchase and Servicing
Agreement under which such Mortgage Loan is serviced, that would (i) increase
the interest rate in respect of such Mortgage, defer for a period in excess of
six months or forgive the payment of any principal or interest, reduce the
outstanding principal amount (except for actual payments of principal), increase
the Servicing Fee on such Mortgage Loan or extend the final maturity date on
such Mortgage Loan, or (ii) result in a substitution or release of collateral or
in the provision of additional collateral for the Mortgage Loan, unless the
applicable Mortgage Loan is in default or default is reasonably foreseeable in
respect of such Mortgage Loan, or the Master Servicer has received an Opinion of
Counsel (at the expense of the party requesting consent for such modification)
that such modification will not result in an Adverse REMIC Event.

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      Section 10.03 Indemnification with Respect to Prohibited Transactions or
                   Loss of REMIC Status.

      Upon the occurrence of an Adverse REMIC Event due to the negligent
performance by the Securities Administrator of its duties and obligations set
forth herein, the Securities Administrator shall indemnify the
Certificateholders of the related Residual Certificate against any and all
losses, claims, damages, liabilities or expenses ("Losses") resulting from such
negligence; provided, however, that the Securities Administrator shall not be
liable for any such Losses attributable to the action or inaction of the
Depositor, the Trustee or the Holder of the Residual Certificate, nor for any
such Losses resulting from misinformation provided by any of the foregoing
parties on which the Securities Administrator has relied. Notwithstanding the
foregoing, however, in no event shall the Securities Administrator have any
liability (1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement or under any Purchase and Servicing Agreements or under
any Acknowledgement, (2) for any Losses other than arising out of malfeasance,
willful misconduct or negligent performance by the Service Administrator of its
duties and obligations set forth herein, and (3) for any special or
consequential damages to Certificateholders of the related Residual Certificate
(in addition to payment of principal and interest on the Certificates).

      Section 10.04 REO Property.

      (a) Notwithstanding any other provision of this Agreement, the Master
Servicer, acting on behalf of the Trustee hereunder, shall not, except to the
extent provided in the applicable Purchase and Servicing Agreement, knowingly
permit any Servicer to, rent, lease, or otherwise earn income on behalf of any
REMIC with respect to any REO Property which might cause an Adverse REMIC Event
unless the applicable Servicer has provided to the Trustee and the Securities
Administrator an Opinion of Counsel concluding that, under the REMIC Provisions,
such action would not adversely affect the status of any REMIC as a REMIC and
any income generated for any REMIC by the REO Property would not result in an
Adverse REMIC Event.

      (b) The Depositor shall cause the applicable Servicer (to the extent
provided in its Purchase and Servicing Agreement) to make reasonable efforts to
sell any REO Property for its fair market value. In any event, however, the
Depositor shall, or shall cause the applicable Servicer (to the extent provided
in its Purchase and Servicing Agreement) to, dispose of any REO Property within
three years of its acquisition by the Trust Fund unless the Depositor or the
applicable Servicer (on behalf of the Trust Fund) has received a grant of
extension from the Internal Revenue Service to the effect that, under the REMIC
Provisions and any relevant proposed legislation and under applicable state law,
the REMIC may hold REO Property for a longer period without causing an Adverse
REMIC Event. If such an extension has been received, then the Depositor, acting
on behalf of the Trustee hereunder, shall, or shall cause the applicable
Servicer to, continue to attempt to sell the REO Property for its fair market
value for such period longer than three years as such extension permits (the
"Extended Period"). If such an extension has not been received and the Depositor
or the applicable Servicer, acting on behalf of the Trust Fund hereunder, is
unable to sell the REO Property within 33 months after its acquisition by the
Trust Fund or if such an extension, has been received and the Depositor or the

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applicable Servicer is unable to sell the REO Property within the period ending
three months before the close of the Extended Period, the Depositor shall cause
the applicable Servicer, before the end of the three year period or the Extended
Period, as applicable, to (i) purchase such REO Property at a price equal to the
REO Property's fair market value or (ii) auction the REO Property to the highest
bidder (which may be the applicable Servicer) in an auction reasonably designed
to produce a fair price prior to the expiration of the three-year period or the
Extended Period, as the case may be.

      Section 10.05 Fidelity.

      The Master Servicer, at its expense, shall maintain in effect a blanket
fidelity bond and an errors and omissions insurance policy, affording coverage
with respect to all directors, officers, employees and other Persons acting on
such Master Servicer's behalf, and covering errors and omissions in the
performance of the Master Servicer's obligations hereunder. The errors and
omissions insurance policy and the fidelity bond shall be in such form and
amount generally acceptable for entities serving as master servicers and
trustees.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

      Section 11.01 Binding Nature of Agreement; Assignment.

      This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

      Section 11.02 Entire Agreement.

      This Agreement contains the entire agreement and understanding among the
parties hereto with respect to the subject matter hereof, and supersedes all
prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof. The express terms hereof control and
supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof.

      Section 11.03 Amendment.

      (a) This Agreement (other than the provisions of Article XII hereof) may
be amended from time to time by the Depositor, the Master Servicer, the
Securities Administrator, and the Trustee, without notice to or the consent of
any of the Holders, (i) to cure any ambiguity or mistake, (ii) to cause the
provisions herein to conform to or be consistent with or in furtherance of the
statements made with respect to the Certificates, the Trust Fund or this
Agreement in any Offering Document, or to correct or supplement any provision
herein which may be inconsistent with any other provisions herein or with the
provisions of any Purchase and Servicing Agreement, (iii) to make any other
provisions with respect to matters or questions arising under this Agreement or
(iv) to add, delete, or amend any provisions to the extent necessary or
desirable to comply with any requirements imposed by the Code and the REMIC
Provisions. No such amendment effected pursuant to the preceding sentence shall,
as evidenced by an Opinion

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of Counsel, result in an Adverse REMIC Event, nor shall such amendment effected
pursuant to clause (iii) of such sentence adversely affect in any material
respect the interests of any Holder. Prior to entering into any amendment
without the consent of Holders pursuant to this paragraph, the Trustee shall be
provided with an Opinion of Counsel (at the expense of the party requesting such
amendment) to the effect that such amendment is permitted under this Section.
Any such amendment shall be deemed not to adversely affect in any material
respect any Holder, if the Trustee receives written confirmation from each
Rating Agency that such amendment will not cause such Rating Agency to reduce
the then current rating assigned to the Certificates.

      (b) This Agreement (other than the provisions of Article XII hereof) may
also be amended from time to time by the Depositor, the Master Servicer, the
Securities Administrator and the Trustee, with the consent of the Holders of not
less than 66-2/3% of the Class Principal Balance (or Percentage Interest) of
each Class of Certificates affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Holders;
provided, however, that no such amendment shall be made unless the Trustee
receives an Opinion of Counsel, at the expense of the party requesting the
change, that such change will not cause an Adverse REMIC Event; and provided
further, that no such amendment may (i) reduce in any manner the amount of, or
delay the timing of, payments received on Mortgage Loans which are required to
be distributed on any Certificate, without the consent of the Holder of such
Certificate or (ii) reduce the aforesaid percentages of Class Principal Balance
or Class Notional Amount (or Percentage Interest) of Certificates of each Class,
the Holders of which are required to consent to any such amendment without the
consent of the Holders of 100% of the Class Principal Balance or Class Notional
Amount (or Percentage Interest) of each Class of Certificates affected thereby.
For purposes of this paragraph, references to "Holder" or "Holders" shall be
deemed to include, in the case of any Class of Book-Entry Certificates, the
related Certificate Owners.

      (c) In the event the parties to this Agreement desire to further clarify
or amend any provision of Article XII hereof, this Agreement shall be amended to
reflect the new agreement between the parties covering matters in Article XII
pursuant to Section 12.03, which amendment shall not require any Opinion of
Counsel or Rating Agency confirmations or the consent of any Certificateholder.

      (d) Promptly after the execution of any such amendment, the Securities
Administrator shall furnish written notification of the substance of such
amendment to each Holder, the Depositor and the Rating Agencies.

      (e) It shall not be necessary for the consent of Holders under this
Section 11.03 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 Holders shall be subject to such reasonable regulations as
the Trustee may prescribe.

      Section 11.04 Voting Rights.

      Except to the extent that the consent of all affected Certificateholders
is required pursuant to this Agreement, with respect to any provision of this
Agreement requiring the consent of

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Certificateholders representing specified percentages of aggregate outstanding
Certificate Balance or Class Notional Amount (or Percentage Interest),
Certificates owned by the Depositor, the Master Servicer, the Securities
Administrator, the Trustee, any Servicer or any Affiliates thereof are not to be
counted so long as such Certificates are owned by the Depositor, the Master
Servicer, the Securities Administrator, the Trustee, any Servicer or any
Affiliate thereof.

      Section 11.05 Provision of Information.

      (a) For so long as any of the Certificates of any Class are "restricted
securities" within the meaning of Rule 144(a)(3) under the Act, each of the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
(upon instruction from the Depositor) agree to cooperate with each other to
provide to any Certificateholders and to any prospective purchaser of
Certificates designated by such holder, upon the request of such holder or
prospective purchaser, any information required to be provided to such holder or
prospective purchaser to satisfy the condition set forth in Rule 144A(d)(4)
under the Act. Any reasonable, out-of-pocket expenses incurred by the Trustee,
the Master Servicer or the Securities Administrator in providing such
information shall be reimbursed by the Depositor.

      (b) The Securities Administrator shall provide to any person to whom a
Prospectus was delivered, upon the request of such person specifying the
document or documents requested, a copy (excluding exhibits) of any report on
Form 8-K or Form 10-K filed with the Securities and Exchange Commission pursuant
to Section 6.20(b). Any reasonable out-of-pocket expenses incurred by the
Securities Administrator in providing copies of such documents shall be
reimbursed by the Depositor.

      Section 11.06 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 WITHOUT REGARD TO CONFLICT OF
LAWS PRINCIPLES APPLIED IN NEW YORK (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

      Section 11.07 Notices.

      All requests, demands, notices, authorizations, directions, consents,
waivers and communications hereunder shall be in writing and shall be deemed to
have been duly given when received by (a) in the case of the Depositor, Morgan
Stanley Capital I Inc., 1585 Broadway, New York, New York 10036, telephone
number (212) 761-4000, Attention: Morgan Stanley Mortgage Loan Trust 200_-_, (b)
in the case of the Seller, Morgan Stanley Mortgage Capital Inc., 1221 Avenue of
the Americas, New York, New York 10020, Attention: Morgan Stanley Mortgage Loan
Trust 200_-_, (c) in the case of the Master Servicer or the Securities
Administrator, [Wells Fargo Bank, National Association, P.O. Box 98, Columbia,
Maryland 21046 (or, for overnight deliveries, 9062 Old Annapolis Road, Columbia,
Maryland 21045), telecopy number (410) 715-2380, Attention: Morgan Stanley
Mortgage Loan Trust 200_-_,] (d) with respect to the Trustee or the Certificate
Registrar, its respective Corporate Trust Office,

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and (e) in the case of the Rating Agencies, the address specified therefor in
the definition corresponding to the name of such Rating Agency, or as to each
party such other address as may hereafter be furnished by such party to the
other parties in writing. All demands, notices and communications to a party
hereunder shall be in writing and shall be deemed to have been duly given when
delivered to such party at the relevant address, facsimile number or electronic
mail address set forth above or at such other address, facsimile number or
electronic mail address as such party may designate from time to time by written
notice in accordance with this Section 11.07.

      Section 11.08 Severability of Provisions.

      If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

      Section 11.09 Indulgences; No Waivers.

      Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any other
right, remedy, power or privilege, nor shall any waiver of any right, remedy,
power or privilege with respect to any occurrence be construed as a waiver of
such right, remedy, power or privilege with respect to any other occurrence. No
waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

      Section 11.10 Headings Not To Affect Interpretation.

      The headings contained in this Agreement are for convenience of reference
only, and they shall not be used in the interpretation hereof.

      Section 11.11 Benefits of Agreement.

      Nothing in this Agreement or in the Certificates, express or implied,
shall give to any Person, other than the parties to this Agreement and their
successors hereunder and the Holders of the Certificates, any benefit or any
legal or equitable right, power, remedy or claim under this Agreement, except to
the extent specified in Section 11.15.

      Section 11.12 Special Notices to the Rating Agencies.

      (a) The Depositor shall give prompt notice to the Rating Agencies of the
occurrence of any of the following events of which it has notice:

            (i) any amendment to this Agreement pursuant to Section 11.03;

            (ii) any assignment by the Master Servicer of its rights hereunder
      or delegation of its duties hereunder;

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            (iii) the occurrence of any Event of Default described in Section
      6.14;

            (iv) any notice of termination given to the Master Servicer pursuant
      to Section 6.14 and any resignation of the Master Servicer hereunder;

            (v) the appointment of any successor to any Master Servicer pursuant
      to Section 6.14;

            (vi) the making of a final payment pursuant to Section 7.02; and

            (vii) any termination of the rights and obligations of any Servicer
      under the applicable Purchase and Servicing Agreement.

      (b) All notices to the Rating Agencies provided for this Section shall be
in writing and sent by first class mail, telecopy or overnight courier, to the
address specified therefor in the definition corresponding to the name of such
Rating Agency.

      (c) The Securities Administrator shall provide or make available to the
Rating Agencies reports prepared pursuant to Section 4.05. In addition, the
Securities Administrator shall, at the expense of the Trust Fund, make available
to each Rating Agency such information as such Rating Agency may reasonably
request regarding the Certificates or the Trust Fund, to the extent that such
information is reasonably available to the Securities Administrator.

      (d) The Depositor hereby represents to S&P that, to the Depositor's
knowledge, the information provided to such Rating Agency, including the loan
level detail, is true and correct according to such Rating Agency's
requirements.

      Section 11.13 Conflicts.

      To the extent that the terms of this Agreement conflict with the terms of
any Purchase and Servicing Agreement, the related Purchase and Servicing
Agreement shall govern.

      Section 11.14 Counterparts.

      This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, and all of which together shall constitute
one and the same instrument.

      Section 11.15 No Petitions.

      The Trustee and the Master Servicer (not in its individual corporate
capacity, but solely as Master Servicer hereunder), by entering into this
Agreement, hereby covenant and agree that they shall not at any time institute
against the Depositor, or join in any institution against the Depositor of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to this Agreement or any
of the documents entered into by the Depositor in connection with the
transactions contemplated by this Agreement, except that the Trustee shall not
be prohibited from filing a proof of claim in any such proceeding.

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      Section 11.16 Indemnification by Trust.

      Pursuant to the Purchase and Servicing Agreements, each of the Originators
and Servicers shall be indemnified by the Trust to the extent specified in the
related Purchase and Servicing Agreement.

      Pursuant to the Custodial Agreements, each of the Custodians shall be
indemnified by the Trust to the extent specified in the related Custodial
Agreement.

                                   ARTICLE XII

                             EXCHANGE ACT REPORTING

      Section 12.01 Filing Obligations.

      (a) The Master Servicer, the Securities Administrator, the Trustee and
each Custodian shall reasonably cooperate with the Depositor in connection with
the satisfaction of the Depositor's reporting requirements under the Exchange
Act with respect to the Trust Fund. In addition to the information specified
below, if so requested by the Depositor for the purpose of satisfying its
reporting obligation under the Exchange Act, the Master Servicer, the Securities
Administrator, the Trustee and each Custodian shall (and the Master Servicer
shall cause each Servicer, to the extent required by the related Servicing
Agreement, to) provide the Depositor with (a) such information which is
available to such Person without unreasonable effort or expense and within such
timeframe as may be reasonably requested by the Depositor to comply with the
Depositor's reporting obligations under the Exchange Act and (b) to the extent
such Person is a party (and the Depositor is not a party) to any agreement or
amendment required to be filed, copies of such agreement or amendment in
EDGAR-compatible form.

      (b) Prior to January 30 of the first year in which the Securities
Administrator is able to do so under applicable law, the Securities
Administrator shall prepare and file a Form 15 relating to the automatic
suspension of reporting in respect of the Trust under the Exchange Act.

      (c) In the event that the Securities Administrator is unable to file
timely with the Commission all or any required portion of any Form 8-K, 10-D or
10-K required to be filed by this Agreement because required disclosure
information was either not delivered to it or delivered to it after the delivery
deadlines set forth in this Agreement or for any other reason, the Securities
Administrator will immediately notify the Depositor. In the case of Form 10-D
and 10-K, the parties to this Agreement will and the Master Servicer shall cause
each Servicer to cooperate to prepare and file a Form 12b-25 and a 10-DA and
10-KA as applicable, pursuant to Rule 12b-25 of the Exchange Act. In the case of
Form 8-K, the Securities Administrator will, upon receipt of all required Form
8-K Disclosure Information and upon the direction of the Depositor, include such
disclosure information on the next Form 10-D. In the event that any previously
filed Form 8-K, 10-D or 10-K needs to be amended, and such amendment includes
any Additional Form 10-D Disclosure, any Additional Form 10-K Disclosure or any
Form 8-K Disclosure Information or an amendment to any such disclosure, the
Securities Administrator will notify the Depositor and each Servicer and such
parties will cooperate to prepare any necessary 8-KA, 10-DA or 10-KA. Any Form
15, Form 12b-25 or any amendment to Form 8-K,

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10-D or 10-K shall be signed by a senior officer of the Master Servicer in
charge of the master servicing function. The parties to this Agreement
acknowledge that the performance by the Master Servicer and the Securities
Administrator of its duties under this Article XII related to the timely
preparation and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K,
10-D or 10-K is contingent upon each such party performing its duties under this
Section. Neither the Master Servicer nor the Securities Administrator shall have
any liability for any loss, expense, damage, claim arising out of or with
respect to any failure to properly prepare, execute and/or timely file any such
Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where such
failure results from the Securities Administrator's inability or failure to
obtain or receive, on a timely basis, any information from any other party
hereto needed to prepare, arrange for execution or file such Form 15, Form
12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not resulting from their
own respective negligence, bad faith or willful misconduct.

      Section 12.02 Form 10-D Reporting.

      (a) Within 15 days after each Distribution Date (subject to permitted
extensions under the Exchange Act), the Securities Administrator shall prepare
and file on behalf of the Trust any Form 10-D required by the Exchange Act, in
form and substance as required by the Exchange Act. The Securities Administrator
shall file each Form 10-D with a copy of the related Monthly Statement attached
thereto. Any disclosure in addition to the Monthly Statement that is required to
be included on Form 10-D ("Additional Form 10-D Disclosure") shall be determined
and prepared at the direction of the Depositor pursuant to the following
paragraph and the Securities Administrator will have no duty or liability for
any failure hereunder to determine or prepare any Additional Form 10-D
Disclosure, except as set forth in the next paragraph.

      (b) As set forth on Exhibit N-1 hereto, within 5 calendar days after the
related Distribution Date, (i) the Master Servicer and any other Reporting Party
shall be required to provide to the Securities Administrator and the Depositor,
to the extent known, in EDGAR-compatible form, or in such other form as
otherwise agreed upon by the Securities Administrator and such party, the form
and substance of any Additional Form 10-D Disclosure, if applicable, (ii) the
Securities Administrator shall forward to the Depositor, the form and substance
of the Additional Form 10-D Disclosure, and (iii) the Depositor will approve, or
disapprove, as the case may be, the inclusion of the Additional Form 10-D
Disclosure on Form 10-D. The Depositor will be responsible for any reasonable
fees and expenses assessed or incurred by the Securities Administrator in
connection with including any Additional Form 10-D Disclosure on Form 10-D
pursuant to this paragraph.

      (c) After preparing the Form 10-D, the Securities Administrator shall
forward electronically a draft copy of the Form 10-D to the Depositor (provided
that such Form 10-D contains any Additional Form 10-D Disclosure) and the Master
Servicer for review. No later than the Business Day prior to the date specified
in the next sentence, the Depositor shall notify the Securities Administrator of
any changes to or approval of such Form 10-D. No later than 2 Business Days
prior to the 15th calendar day after the related Distribution Date, a senior
officer of the Master Servicer in charge of the master servicing function shall
sign the Form 10-D and return an electronic or fax copy of such signed Form 10-D
(with an original executed hard copy to follow by overnight mail) to the
Securities Administrator. If a Form 10-D cannot be filed on time or if a
previously filed Form 10-D needs to be amended, the Securities Administrator
will

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follow the procedures set forth in Section 12.01(c) hereof. Promptly (but no
later than 1 Business Day) after filing with the Commission, the Securities
Administrator will make available on its internet website a final executed copy
of each Form 10-D. The signing party at the Master Servicer can be contacted by
e-mail at [o] or by facsimile [o]. Each party to this Agreement acknowledges
that the performance by the Securities Administrator and the Master Servicer of
its duties under this Section 12.02 related to the timely preparation, execution
and filing of Form 10-D is contingent upon such parties strictly observing all
applicable deadlines in the performance of their duties under this Section
12.02. Neither the Master Servicer nor the Securities Administrator shall have
any liability for any loss, expense, damage, claim arising out of or with
respect to any failure to properly prepare, execute and/or timely file such Form
10-D, where such failure results from the Securities Administrator's inability
or failure to obtain or receive, on a timely basis, any information from any
other party hereto needed to prepare, arrange for execution or file such Form
10-D, not resulting from their own respective negligence, bad faith or willful
misconduct.

      Section 12.03 Form 8-K Reporting.

      (a) Each of the Master Servicer (and the Master Servicer shall cause any
Servicer to promptly notify,) the Securities Administrator and the Trustee shall
promptly notify the Depositor and the Master Servicer (if the notifying party is
not the Master Servicer), but in no event later than one (1) Business Day after
its occurrence, of any Reportable Event to the extent that they have knowledge
thereof.

      (b) Within four (4) Business Days after the occurrence of an event
requiring disclosure on Form 8-K (each such event, a "Reportable Event"), and if
requested by the Depositor, the Securities Administrator shall prepare and file
on behalf of the Trust any Form 8-K, as required by the Exchange Act, provided
that the Depositor shall file the initial Form 8-K's (operative agreements) in
connection with the issuance of the Certificates. Any disclosure or information
related to a Reportable Event or that is otherwise required to be included on
Form 8-K ("Form 8-K Disclosure Information") shall be determined and prepared by
and at the direction of the Depositor pursuant to the following paragraph and
the Securities Administrator will have no duty or liability for any failure
hereunder to determine or prepare any Form 8-K Disclosure Information or any
Form 8-K, except as set forth in the next paragraph.

      (c) As set forth on Exhibit N-3 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 a Reportable Event (i)
each of the Securities Administrator, the Master Servicer, each Servicer and the
Depositor shall be required to provide to the Securities Administrator, to the
extent known, in EDGAR-compatible form, or in such other form as otherwise
agreed upon by the Securities Administrator and such party, the form and
substance of any Form 8-K Disclosure Information, if applicable to it, (ii) the
Securities Administrator shall forward to the Depositor, the form and substance
of the Form 8-K Disclosure Information, and (iii) the Depositor will approve, as
to form and substance, or disapprove, as the case may be, the inclusion of the
Form 8-K Disclosure Information. The Depositor will be responsible for any
reasonable fees and expenses assessed or incurred by the Securities
Administrator in connection with including any Form 8-K Disclosure Information
on Form 8-K pursuant to this paragraph.

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      (d) After preparing the Form 8-K, the Securities Administrator shall
forward electronically a draft copy of the Form 8-K to the Depositor and the
Master Servicer for review. No later than the Business Day prior to the date
specified in the next sentence, the Depositor shall notify the Securities
Administrator of any changes to or approval of such Form 8-K. No later than Noon
New York City time on the 4th Business Day after the Reportable Event, a senior
officer of the Master Servicer in charge of the master servicing function shall
sign the Form 8-K and return an electronic or fax copy of such signed Form 8-K
(with an original executed hard copy to follow by overnight mail) to the
Securities Administrator. If a Form 8-K cannot be filed on time or if a
previously filed Form 8-K needs to be amended, the Securities Administrator will
follow the procedures set forth in Section 12.01(c). Promptly (but no later than
1 Business Day) after filing with the Commission, the Securities Administrator
will, make available on its internet website a final executed copy of each Form
8-K. The parties to this Agreement acknowledge that the performance by the
Master Servicer and the Securities Administrator of its duties under this
Section 12.03 related to the timely preparation, execution and filing of Form
8-K is contingent upon such parties strictly observing all applicable deadlines
in the performance of their duties under this Section 12.03. Neither the Master
Servicer nor the Securities Administrator shall have any liability for any loss,
expense, damage, claim arising out of or with respect to any failure to properly
prepare, execute and/or timely file such Form 8-K, where such failure results
from the Securities Administrator's inability or failure to obtain or receive,
on a timely basis, any information from any other party hereto needed to
prepare, arrange for execution or file such Form 8-K, not resulting from their
own respective negligence, bad faith or willful misconduct.

      Section 12.04 Form 10-K Reporting.

      (a) Within 90 days (including the 90th day) after the end of each fiscal
year of the Trust or such earlier date as may be required by the Exchange Act
(the "10-K Filing Deadline"), commencing in March 200_ and continuing until the
Trust has been deregistered with the Commission, the Securities Administrator
shall prepare and file on behalf of the Trust a Form 10-K, in form and substance
as required by the Exchange Act. Each such Form 10-K shall include the following
items, in each case to the extent they have been delivered to the Securities
Administrator within the applicable time frames set forth in this Agreement and
the related Servicing Agreement, (i) an annual compliance statement for each
Servicer, each Additional Servicer, the Master Servicer, each Custodian and the
Securities Administrator (each such party and each Custodian, a "Reporting
Servicer") as described under Section 9.11, (ii)(A) the annual reports on
assessment of compliance with servicing criteria for each Reporting Servicer, as
described under Section 12.06, and (B) if each Reporting Servicer's report on
assessment of compliance with servicing criteria described under Section 12.06
identifies any material instance of noncompliance, disclosure identifying such
instance of noncompliance, or if each Reporting Servicer's report on assessment
of compliance with servicing criteria described under Section 12.06 is not
included as an exhibit to such Form 10-K, disclosure that such report is not

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included and an explanation why such report is not included, (iii)(A) the
registered public accounting firm attestation report for each Reporting
Servicer, as described under Section 12.06, and (B) if any registered public
accounting firm attestation report described under Section 12.06 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 as described in Section 12.05. Any
disclosure or information in addition to (i) through (iv) above that is required
to be included on Form 10-K ("Additional Form 10-K Disclosure") shall be
determined and prepared by and at the direction of the Depositor pursuant to the
following paragraph and the Securities Administrator will have no duty or
liability for any failure hereunder to determine or prepare any Additional Form
10-K Disclosure, except as set forth in the next paragraph.

      (b) As set forth on Exhibit N-2 hereto, no later than March 1 of each year
that the Trust is subject to the Exchange Act reporting requirements, commencing
in 200_ and continuing until the Trust has been deregistered with the
Commission, (i) the Master Servicer and any other Reporting Party shall be
required to provide to the Securities Administrator, to the extent known, in
EDGAR-compatible form, or in such other form as otherwise agreed upon by the
Securities Administrator and such party, the form and substance of any
Additional Form 10-K Disclosure, if applicable to it, (ii) the Securities
Administrator shall forward to the Depositor, the form and substance of the
Additional Form 10-K Disclosure, and (iii) the Depositor will approve, as to
form and substance, or disapprove, as the case may be, the inclusion of the
Additional Form 10-K Disclosure on Form 10-K. The Depositor will be responsible
for any reasonable fees and expenses assessed or incurred by the Securities
Administrator in connection with including any Additional Form 10-K Disclosure
on Form 10-K pursuant to this paragraph.

      (c) After preparing the Form 10-K, the Securities Administrator shall
forward electronically a draft copy of the Form 10-K to the Master Servicer and
to the Depositor for review. No later than the Business Day prior to the date
specified in the next sentence, the Depositor and the Master Servicer shall
notify the Securities Administrator of any changes to or approval of such Form
10-K. No later than the close of business on the 4th Business Day prior to the
10-K Filing Deadline, a senior officer of the Master Servicer in charge of the
master servicing function shall sign the Form 10-K and return an electronic or
fax copy of such signed Form 10-K (with an original executed hard copy to follow
by overnight mail) to the Securities Administrator. If a Form 10-K cannot be
filed on time or if a previously filed Form 10-K needs to be amended, the
Securities Administrator will follow the procedures set forth in Section
12.01(c). Promptly (but no later than 1 Business Day) after filing with the
Commission, the Securities Administrator will make available on its internet
website a final executed copy of each Form 10-K. The parties to this Agreement
acknowledge that the performance by the Master Servicer and the Securities
Administrator of its duties under this Section 12.04 related to the timely
preparation, execution and filing of Form 10-K is contingent upon such parties
(and any Additional Servicer or Servicing Function Participant) strictly
observing all applicable deadlines in the performance of their duties under this
Section 12.04, Section 9.11 Section 12.05 and Section 12.06. Neither the Master
Servicer nor the Securities Administrator shall have any liability for any loss,
expense, damage, claim arising out of or with respect to any failure to properly
prepare, execute and/or timely file such Form 10-K, where such failure results
from the Master Servicer's or the Securities Administrator's inability or
failure to obtain or receive, on a timely basis, any information from any other
party hereto needed to prepare, arrange for execution or file such Form 10-K,
not resulting from their own respective negligence, bad faith or willful
misconduct.

      Section 12.05 Sarbanes-Oxley Certification.

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      Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification"), exactly as set forth in Exhibit P attached hereto, required to
be included therewith pursuant to the Sarbanes-Oxley Act. The senior officer of
the Master Servicer in charge of the master servicing function shall serve as
the Certifying Person on behalf of the Trust.

      The respective parties hereto agree to cooperate with all reasonable
requests made by any Certifying Person or Certification Party in connection with
such Person's attempt to conduct any due diligence that such Person reasonably
believes to be appropriate in order to allow it to deliver any Sarbanes-Oxley
Certification or portion thereof with respect to the Trust Fund.

      Section 12.06 Reports on Assessment of Compliance and Attestation.

      (a) By March 15 of each year(including any applicable grace period),
commencing in March 200_, the Master Servicer, the Securities Administrator,
each Custodian and each other Reporting Party, each at its own expense, shall
furnish, and each such party shall cause any Servicing Function Participant
engaged by it to furnish, each at its own expense, to the Securities
Administrator and the Depositor, a report on an assessment of compliance with
the Relevant Servicing Criteria that contains (A) a statement by such party of
its responsibility for assessing compliance with the Relevant Servicing
Criteria, (B) a statement that such party used the Relevant Servicing Criteria
to assess compliance with the Relevant Servicing Criteria, (C) such party's
assessment of compliance with the Relevant Servicing Criteria as of and for the
fiscal year covered by the Form 10-K required to be filed pursuant to Section
12.04, including, if there has been any material instance of noncompliance with
the Relevant Servicing Criteria, a discussion of each such failure and the
nature and status thereof, and (D) a statement that a registered public
accounting firm has issued an attestation report on such party's assessment of
compliance with the Relevant Servicing Criteria as of and for such period.

      No later than the end of each fiscal year for the Trust for which a 10-K
is required to be filed, the Master Servicer and each Custodian shall forward to
the Securities Administrator the name of each Servicing Function Participant
engaged by it and what Relevant Servicing Criteria will be addressed in the
report on assessment of compliance prepared by such Servicing Function
Participant. When the Master Servicer and the Securities Administrator (or any
Servicing Function Participant engaged by them) submit their assessments to the
Securities Administrator, such parties will also at such time include the
assessment (and attestation pursuant to Section 12.06(b) of each Servicing
Function Participant engaged by it.

      Promptly after receipt of each such report on assessment of compliance,
(i) the Depositor shall review each such report and, if applicable, consult with
the Master Servicer, the Securities Administrator, each Custodian and any
Servicing Function Participant engaged by such parties as to the nature of any
material instance of noncompliance with the Relevant Servicing Criteria by each
such party, and (ii) the Securities Administrator shall confirm that the
assessments, taken as a whole, address all of the Servicing Criteria and taken
individually address the Relevant Servicing Criteria for each party as set forth
on Exhibit O and on any similar exhibit set forth in each Servicing Agreement in
respect of each Servicer and notify the Depositor of any exceptions.

                                      127
<PAGE>

      (b) By March 15 of each year, commencing in March 200_, the Master
Servicer, the Securities Administrator, each Custodian (only if a Form 10-K is
required to be filed in respect of the Trust for the preceding calendar year)
and each other Reporting Party, each at its own expense, shall cause, and each
such party shall cause any Servicing Function Participant engaged by it to
cause, each at its own expense, a registered public accounting firm (which may
also render other services to the Master Servicer, the Trustee, the Securities
Administrator, or such other Servicing Function Participants, as the case may
be) and that is a member of the American Institute of Certified Public
Accountants to furnish a report to the Securities Administrator and the
Depositor, to the effect that (i) it has obtained a representation regarding
certain matters from the management of such party, which includes an assertion
that such party has complied with the Relevant Servicing Criteria, and (ii) on
the basis of an examination conducted by such firm in accordance with standards
for attestation engagements issued or adopted by the PCAOB, it is expressing an
opinion as to whether such party's compliance with the Relevant Servicing
Criteria was fairly stated in all material respects, or it cannot express an
overall opinion regarding such party's assessment of compliance with the
Relevant Servicing Criteria. In the event that an overall opinion cannot be
expressed, such registered public accounting firm shall state in such report why
it was unable to express such an opinion. Such report must be available for
general use and not contain restricted use language.

      Promptly after receipt of such report from the Master Servicer, the
Securities Administrator, each Custodian or any Servicing Function Participant
engaged by such parties, (i) the Depositor shall review the report and, if
applicable, consult with such parties as to the nature of any defaults by such
parties, in the fulfillment of any of each such party's obligations hereunder or
under any other applicable agreement, and (ii) the Securities Administrator
shall confirm that each assessment submitted pursuant to Section 12.06(a) is
coupled with an attestation meeting the requirements of this Section 12.06(b)
and notify the Depositor of any exceptions.

      The Master Servicer shall enforce any obligation of the Servicers, to the
extent set forth in the related Servicing Agreement, to deliver to the Master
Servicer an attestation within the time frame set forth in, and in such form and
substance as may be required pursuant to, the related Servicing Agreement. The
Master Servicer shall include each such attestation with its own attestation to
be submitted to the Securities Administrator pursuant to this Section.

      Section 12.07 Use of Servicers and Subcontractors.

      (a) The Master Servicer shall cause any Servicer used by the Master
Servicer (or by any Servicer) for the benefit of the Depositor to comply with
the provisions of Section 9.11 and this Article XII to the same extent as if
such Servicer were the Master Servicer (except with respect to the Master
Servicer's duties with respect to preparing and filing any Exchange Act Reports
or as the Certifying Person). The Master Servicer shall be responsible for
obtaining from each Servicer and delivering to the Depositor any servicer
compliance statement required to be delivered by such Servicer under Section
9.11, any assessment of compliance and attestation required to be delivered by
such Servicer under Section 12.07 and any certification required to be delivered
to the Certifying Person under Section 12.05 as and when required to be
delivered. As a condition to the succession to any Servicer as subservicer under
this Agreement by any Person (i) into which such Servicer may be merged or
consolidated, or (ii) which may be appointed as a

                                      128
<PAGE>

successor to any Servicer, the Master Servicer shall provide to the Depositor,
at least 15 calendar days prior to the effective date of such succession or
appointment, (x) written notice to the Depositor of such succession or
appointment and (y) in writing and in form and substance reasonably satisfactory
to the Depositor, all information reasonably requested by the Depositor in order
to comply with its reporting obligation under Item 6.02 of Form 8-K.

      (b) It shall not be necessary for the Master Servicer, any Servicer or the
Trustee to seek the consent of the Depositor or any other party hereto to the
utilization of any Subcontractor. The Master Servicer or the Trustee, as
applicable, shall promptly upon request provide to the Depositor (or any
designee of the Depositor, such as the Master Servicer or administrator) a
written description (in form and substance satisfactory to the Depositor) of the
role and function of each Subcontractor utilized by such Person (or in the case
of the Master Servicer or any Servicer), specifying (i) the identity of each
such Subcontractor, (ii) which (if any) of such Subcontractors are
"participating in the servicing function" within the meaning of Item 1122 of
Regulation AB, and (iii) which elements of the Servicing Criteria will be
addressed in assessments of compliance provided by each Subcontractor identified
pursuant to clause (ii) of this paragraph.

      As a condition to the utilization of any Subcontractor determined to be a
Reporting Subcontractor, the Master Servicer or the Trustee, as applicable,
shall cause any such Subcontractor used by such Person (or in the case of the
Master Servicer or any Servicer) for the benefit of the Depositor to comply with
the provisions of Sections 12.07 and 12.09 of this Agreement to the same extent
as if such Subcontractor were the Master Servicer (except with respect to the
Master Servicer's duties with respect to preparing and filing any Exchange Act
Reports or as the Certifying Person) or the Trustee, as applicable. The Master
Servicer or the Trustee, as applicable, shall be responsible for obtaining from
each Subcontractor and delivering to the Depositor and the Master Servicer, any
assessment of compliance and attestation required to be delivered by such
Subcontractor under Section 12.07, in each case as and when required to be
delivered.

      Section 12.08 Indemnification by the Master Servicer and the Securities
Administrator.

      (a) The Master Servicer and the Securities Administrator (each, an
"Indemnifying Party"), shall, severally and not jointly, indemnify the Depositor
and the Seller for the preparation, execution or filing of any report required
to be filed with the Commission with respect to the Trust Fund, or for execution
of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the
Exchange Act with respect to the Trust Fund; and the respective present and
former directors, officers, employees and agents of each of the foregoing and
shall hold each of them harmless from and against any losses, damages,
penalties, fines, forfeitures, legal fees and expenses and related costs,
judgments, and any other costs, fees and expenses that any of them may sustain
arising out of or based upon:

            (i) (A) any untrue statement of a material fact contained or alleged
      to be contained in any information, report, certification, accountants'
      letter or other material provided in written or electronic form under this
      Article XII by or on behalf of the Indemnifying Party, or provided under
      this Article XII by or on behalf of any Subservicer or Subcontractor
      directly engaged by the Indemnifying Party (collectively, the "Company

                                      129
<PAGE>

      Information"), or (B) the omission or alleged omission to state in the
      Company Information a material fact required to be stated in the Company
      Information or necessary in order to make the statements therein, in the
      light of the circumstances under which they were made, not misleading;
      provided, by way of clarification, that clause (B) of this paragraph shall
      be construed solely by reference to the Company Information and not to any
      other information communicated in connection with a sale or purchase of
      securities, without regard to whether the Company Information or any
      portion thereof is presented together with or separately from such other
      information; or

            (ii) any failure by the Indemnifying Party to perform its
      obligations when and as required under this Article XII; or

            (iii) any negligence, bad faith or willful misconduct by the
      Indemnifying Party.

      In the case of any failure of performance described in clause (a)(ii) of
this Section, the Indemnifying Party shall promptly reimburse the Seller or the
Depositor, as applicable, and each Person responsible for the preparation,
execution or filing of any report required to be filed with the Commission with
respect to such Securitization Transaction, or for execution of a certification
pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect
to the Trust, for all costs reasonably incurred by each such party in order to
obtain the information, report, certification, accountants' letter or other
material not delivered as required by the Indemnifying Party or any Subservicer
or Subcontractor of the Indemnifying Party.

      (b) (i) Any failure by the Indemnifying Party or any Subservicer or
Subcontractor of the Indemnifying Party to deliver any information, report,
certification, accountants' letter or other material when and as required under
this Article XII.

            (ii) Any failure by the Indemnifying Party or any Subservicer or any
      Subcontractor of the Indemnifying Party to deliver any information,
      report, certification or accountants' letter when and as required under
      this Article XII, including (except as provided below) any failure by the
      Indemnifying Party to identify pursuant to Section 12.07 any Subcontractor
      "participating in the servicing function" within the meaning of Item 1122
      of Regulation AB, which continues unremedied for ten calendar days after
      the date on which such information, report, certification or accountants'
      letter was required to be delivered shall constitute an Event of Default
      with respect to the Indemnifying Party under this Agreement, and shall
      entitle the Seller or Depositor, as applicable, in its sole discretion to
      terminate the rights and obligations of the Indemnifying Party under this
      Agreement without payment (notwithstanding anything in this Agreement to
      the contrary) of any compensation to the Indemnifying Party; provided that
      to the extent that any provision of this Agreement and/or any applicable
      Reconstitution Agreement expressly provides for the survival of certain
      rights or obligations following termination of the Master Servicer as
      servicer, such provision shall be given effect.

            Neither the Seller nor any Depositor shall be entitled to terminate
      the rights and obligations of an Indemnifying Party pursuant to this
      subparagraph (b)(ii) if a failure of the Master Servicer to identify a
      Subcontractor "participating in the servicing function" within the meaning
      of Item 1122 of Regulation AB was attributable solely to the role or

                                      130
<PAGE>

      functions of such Subcontractor with respect to mortgage loans other than
      the Mortgage Loans.

            (iii) The Indemnifying Party shall promptly reimburse the Seller and
      any Depositor for all reasonable expenses incurred by them, in connection
      with the termination of the Indemnifying Party and the transfer of their
      duties to a successor. The provisions of this paragraph shall not limit
      whatever rights the Seller or the Depositor may have under other
      provisions of this Agreement or otherwise, whether in equity or at law,
      such as an action for damages, specific performance or injunctive relief.

                                      131
<PAGE>

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

                                       MORGAN STANLEY CAPITAL I INC.,
                                       as Depositor

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

                                       [LASALLE BANK NATIONAL ASSOCIATION],
                                       as Trustee

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

                                       [WELLS FARGO BANK, NATIONAL ASSOCIATION],
                                       as Master Servicer

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

                                       [WELLS FARGO BANK, NATIONAL ASSOCIATION],
                                                     as Securities Administrator

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

<PAGE>

Solely for purposes of Section 2.05
accepted and agreed to by:

MORGAN STANLEY MORTGAGE CAPITAL INC.

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

                                        2
<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                                       A-1
<PAGE>

                                    EXHIBIT B

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)

STATE OF    )
            )   ss.:
COUNTY OF   )

      [NAME OF OFFICER], _________________ being first duly sworn, deposes and
says:

      1.    That he [she] is [title of officer] ________________________ of
            [name of Purchaser] _________________________________________ (the
            "Purchaser"), a _______________________ [description of type of
            entity] duly organized and existing under the laws of the [State of
            __________] [United States], on behalf of which he [she] makes this
            affidavit.

      2.    That the Purchaser's Taxpayer Identification Number is [ ].

      3.    That the Purchaser is not a "disqualified organization" within the
            meaning of Section 860E(e)(5) of the Internal Revenue Code of 1986,
            as amended (the "Code") and will not be a "disqualified
            organization" as of [date of transfer], and that the Purchaser is
            not acquiring a Residual Certificate (as defined in the Agreement)
            for the account of, or as agent (including a broker, nominee, or
            other middleman) for, any person or entity from which it has not
            received an affidavit substantially in the form of this affidavit.
            For these purposes, a "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 (other than an
            instrumentality if all of its activities are subject to tax and a
            majority of its board of directors is not selected by such
            governmental entity), any cooperative organization furnishing
            electric energy or providing telephone service to persons in rural
            areas as described in Code Section 1381(a)(2)(C), any "electing
            large partnership" within the meaning of Section 775 of the Code, or
            any organization (other than a farmers' cooperative described in
            Code Section 521) that is exempt from federal income tax unless such
            organization is subject to the tax on unrelated business income
            imposed by Code Section 511.

      4.    That the Purchaser either (x) is not, and on __________________
            [date of transfer] will not be, an employee benefit plan or other
            retirement arrangement subject to Section 406 of the Employee
            Retirement Income Security Act of 1974, as amended ("ERISA"), or
            Section 4975 of the Code ("Code"), (collectively, a "Plan") or a
            person acting on behalf of any such Plan or investing the assets of
            any such Plan to acquire a Residual Certificate; (y) is an insurance
            company that is purchasing the Certificate with funds contained in
            an "insurance company general account" as defined in Section V(e) of
            Prohibited Transaction Class Exemption ("PTCE") 95-60 and the
            purchase and holding of the Certificate satisfy the requirements for
            exemptive relief under Sections I and III of PTCE

                                       B-1
<PAGE>

            95-60; or (z) herewith delivers to the Certificate Registrar an
            opinion of counsel satisfactory to the Certificate Registrar and the
            Securities Administrator and upon which the Certificate Registrar,
            the Trustee, the Master Servicer, the Depositor and Securities
            Administrator shall be entitled to rely, to the effect that the
            purchase or holding of such Residual Certificate by the Investor
            will not result in any non-exempt prohibited transactions under
            Title I of ERISA or Section 4975 of the Code and will not subject
            the Certificate Registrar, the Trustee, the Depositor, the Master
            Servicer or the Securities Administrator 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 Trust Fund or any of the above parties.

      5.    That the Purchaser hereby acknowledges that under the terms of the
            Pooling and Servicing Agreement, dated as of ___________, 200_ (the
            "Agreement"), by and among Morgan Stanley Capital I Inc., as
            Depositor, [Wells Fargo Bank, National Association], as Master
            Servicer and as Securities Administrator, and [LaSalle Bank National
            Association], as Trustee with respect to Morgan Stanley Mortgage
            Loan Trust 200_-_, Mortgage Pass-Through Certificates, no transfer
            of the Residual Certificates shall be permitted to be made to any
            person unless the Certificate Registrar has received a certificate
            from such transferee containing the representations in paragraphs 3
            and 4 hereof.

      6.    That the Purchaser does not hold REMIC residual securities as
            nominee to facilitate the clearance and settlement of such
            securities through electronic book-entry changes in accounts of
            participating organizations (such entity, a "Book-Entry Nominee").

      7.    That the Purchaser does not have the intention to impede the
            assessment or collection of any federal, state or local taxes
            legally required to be paid with respect to such Residual
            Certificate.

      8.    That the Purchaser will not transfer a Residual Certificate to any
            person or entity (i) as to which the Purchaser has actual knowledge
            that the requirements set forth in paragraph 3, paragraph 6 or
            paragraph 10 hereof are not satisfied or that the Purchaser has
            reason to believe does not satisfy the requirements set forth in
            paragraph 7 hereof, and (ii) without obtaining from the prospective
            Purchaser an affidavit substantially in this form and providing to
            the Certificate Registrar a written statement substantially in the
            form of Exhibit C to the Agreement.

      9.    That the Purchaser understands that, as the holder of a Residual
            Certificate, the Purchaser may incur tax liabilities in excess of
            any cash flows generated by the interest and that it intends to pay
            taxes associated with holding such Residual Certificate as they
            become due.

      10.   That the Purchaser (i) is not a Non-U.S. Person or (ii) is a
            Non-U.S. Person that holds a Residual Certificate in connection with
            the conduct of a trade or business within the United States and has
            furnished the transferor the Certificate Registrar

                                       B-2
<PAGE>

            with an effective Internal Revenue Service Form W-8ECI (Certificate
            of Foreign Person's Claim for Exemption From Withholding on Income
            Effectively Connected With the Conduct of a Trade or Business in the
            United States) or successor form at the time and in the manner
            required by the Code or (iii) is a Non-U.S. Person that has
            delivered to the transferor, the Trustee and the Certificate
            Registrar an opinion of a nationally recognized tax counsel to the
            effect that the transfer of such Residual Certificate to it is in
            accordance with the requirements of the Code and the regulations
            promulgated thereunder and that such transfer of a Residual
            Certificate will not be disregarded for federal income tax purposes.
            "Non-U.S. Person" means an individual, corporation, partnership or
            other person other than (i) a citizen or resident of the United
            States; (ii) a corporation, partnership or other entity created or
            organized in or under the laws of the United States or any state
            thereof, including for this purpose, the District of Columbia; (iii)
            an estate that is subject to U.S. federal income tax regardless of
            the source of its income; (iv) a trust if a court within the United
            States is able to exercise primary supervision over the
            administration of the trust and one or more United States trustees
            have authority to control all substantial decisions of the trust;
            and, (v) to the extent provided in Treasury regulations, certain
            trusts in existence on August 20, 1996 that are treated as United
            States persons prior to such date and elect to continue to be
            treated as United States persons.

      11.   The Purchaser will not cause income from the Residual Certificate to
            be attributable to a foreign permanent establishment or fixed base
            of the Purchaser or another U.S. taxpayer.

      12.   That the Purchaser agrees to such amendments of the Pooling and
            Servicing Agreement as may be required to further effectuate the
            restrictions on transfer of any Residual Certificate to such a
            "disqualified organization," an agent thereof, a Book-Entry Nominee,
            or a person that does not satisfy the requirements of paragraph 7
            and paragraph 10 hereof.

      13.   That the Purchaser consents to the designation of the Securities
            Administrator to act as agent for the "tax matters person" of each
            REMIC created by the Trust Fund pursuant to the Pooling and
            Servicing Agreement.

                                       B-3
<PAGE>

      IN WITNESS WHEREOF, the Purchaser has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[title of officer] this _____ day of __________ 20__.

                                       -----------------------------------------
                                                 [name of Purchaser]

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

      Personally appeared before me the above-named [name of officer]
________________, known or proved to me to be the same person who executed the
foregoing instrument and to be the [title of officer] _________________ of the
Purchaser, and acknowledged to me that he [she] executed the same as his [her]
free act and deed and the free act and deed of the Purchaser.

      Subscribed and sworn before me this _____ day of __________ 20__.

NOTARY PUBLIC

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

COUNTY OF
         -------------------

STATE OF
        --------------------

My commission expires the _____ day of __________ 20__.

                                       B-4
<PAGE>

                                    EXHIBIT C

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)

                                                    ----------------------------
                                                               Date

Re:   Morgan Stanley Mortgage Loan Trust 200_-_
      Mortgage Pass-Through Certificates

      _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true and has no reason to believe that the
information contained in paragraph 7 thereof is not true, and has no reason to
believe that the Transferee has the intention to impede the assessment or
collection of any federal, state or local taxes legally required to be paid with
respect to a Residual Certificate. In addition, the Transferor has conducted a
reasonable investigation at the time of the transfer and found that the
Transferee had historically paid its debts as they came due and found no
significant evidence to indicate that the Transferee will not continue to pay
its debts as they become due.

                                       Very truly yours,

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

                                       C-1
<PAGE>

                                    EXHIBIT D

                                   [RESERVED]

                                       D-1
<PAGE>

                                    EXHIBIT E

                    LIST OF PURCHASE AND SERVICING AGREEMENTS

                                       E-1
<PAGE>

                                    EXHIBIT F

                          LIST OF CUSTODIAL AGREEMENTS

                                       F-1
<PAGE>

                                    EXHIBIT G

          ASSIGNMENT AND NOTICE OF TRANSFER WITH RESPECT TO ADDITIONAL
                            COLLATERAL MORTGAGE LOANS

<PAGE>

                                    EXHIBIT H

                     FORM OF RULE 144A TRANSFER CERTIFICATE

Re:   Morgan Stanley Mortgage Loan Trust 200_-_,
      Mortgage Pass-Through Certificates

      Reference is hereby made to the Pooling and Servicing Agreement, dated as
of ___________, 200_ (the "Pooling and Servicing Agreement"), by and among
Morgan Stanley Capital I Inc., as Depositor, [Wells Fargo Bank, National
Association], as Master Servicer and as Securities Administrator, and [LaSalle
Bank National Association], as Trustee. Capitalized terms used but not defined
herein shall have the meanings given to them in the Pooling and Servicing
Agreement.

      This letter relates to $__________ initial Certificate Balance of Class
_____ Certificates which are held in the form of Definitive Certificates
registered in the name of ______________ (the "Transferor"). The Transferor has
requested a transfer of such Definitive Certificates for Definitive Certificates
of such Class registered in the name of [insert name of transferee].

      In connection with such request, and in respect of such Certificates, the
Transferor hereby certifies that such Certificates are being transferred in
accordance with (i) the transfer restrictions set forth in the Pooling and
Servicing Agreement and the Certificates and (ii) Rule 144A under the Securities
Act to a purchaser that the Transferor reasonably believes is a "qualified
institutional buyer" within the meaning of Rule 144A purchasing for its own
account or for the account of a "qualified institutional buyer," which purchaser
is aware that the sale to it is being made in reliance upon Rule 144A, in a
transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
applicable jurisdiction.

      This certificate and the statements contained herein are made for your
benefit and the benefit of the Underwriter, the Certificate Registrar and the
Depositor.

                                       -----------------------------------------
                                                  [Name of Transferor]

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

Dated: ___________, ____

                                       H-1
<PAGE>

                                    EXHIBIT I

                         FORM OF PURCHASER'S LETTER FOR
                        INSTITUTIONAL ACCREDITED INVESTOR

                                                                            Date

Dear Sirs:

      In connection with our proposed purchase of $______________ principal
amount of Morgan Stanley Mortgage Loan Trust 200_-_, Mortgage Pass-Through
Certificates (the "Privately Offered Certificates") of Morgan Stanley Capital I
Inc. (the "Depositor"), we confirm that:

(1)   We understand that the Privately Offered Certificates have not been, and
      will not be, registered under the Securities Act of 1933, as amended (the
      "Securities Act"), and may not be sold except as permitted in the
      following sentence. We agree, on our own behalf and on behalf of any
      accounts for which we are acting as hereinafter stated, that if we should
      sell any Privately Offered Certificates within two years of the later of
      the date of original issuance of the Privately Offered Certificates or the
      last day on which such Privately Offered Certificates are owned by the
      Depositor or any affiliate of the Depositor we will do so only (A) to the
      Depositor, (B) to "qualified institutional buyers" (within the meaning of
      Rule 144A under the Securities Act) in accordance with Rule 144A under the
      Securities Act ("QIBs"), (C) pursuant to the exemption from registration
      provided by Rule 144 under the Securities Act, or (D) to an institutional
      "accredited investor" within the meaning of Rule 501(a)(1), (2), (3) or
      (7) of Regulation D under the Securities Act that is not a QIB (an
      "Institutional Accredited Investor") which, prior to such transfer,
      delivers to the Certificate Registrar under the Pooling and Servicing
      Agreement, dated as of ___________, 200_ (the "Pooling and Servicing
      Agreement"), by and among Morgan Stanley Capital I Inc., as Depositor,
      [Wells Fargo Bank, National Association], as Master Servicer and as
      Securities Administrator, and [LaSalle Bank National Association], as
      Trustee, a signed letter in the form of this letter; and we further agree,
      in the capacities stated above, to provide to any person purchasing any of
      the Privately Offered Certificates from us a notice advising such
      purchaser that resales of the Privately Offered Certificates are
      restricted as stated herein.

(2)   We understand that, in connection with any proposed resale of any
      Privately Offered Certificates to an Institutional Accredited Investor, we
      will be required to furnish to the Certificate Registrar a certification
      from such transferee in the form hereof to confirm that the proposed sale
      is being made pursuant to an exemption from, or in a transaction not
      subject to, the registration requirements of the Securities Act. We
      further understand that the Privately Offered Certificates purchased by us
      will bear a legend to the foregoing effect.

                                       I-1
<PAGE>

(3)   We are acquiring the Privately Offered Certificates 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. We have such
      knowledge and experience in financial and business matters as to be
      capable of evaluating the merits and risks of our investment in the
      Privately Offered Certificates, and we and any account for which we are
      acting are each able to bear the economic risk of such investment.

(4)   We are an Institutional Accredited Investor and we are acquiring the
      Privately Offered Certificates purchased by us for our own account or for
      one or more accounts (each of which is an Institutional Accredited
      Investor) as to each of which we exercise sole investment discretion.

(5)   We have received such information as we deem necessary in order to make
      our investment decision.

(6)   If we are acquiring ERISA-Restricted Certificates, we understand that in
      accordance with ERISA, the Code and the Exemption, no Plan and no person
      acting on behalf of such a Plan may acquire such Certificate except in
      accordance with Section 3.03(d) of the Pooling and Servicing Agreement.

      Terms used in this letter which are not otherwise defined herein have the
respective meanings assigned thereto in the Pooling and Servicing Agreement.

                                       I-2
<PAGE>

      You and the Certificate Registrar are entitled to rely upon this letter
and are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                       Very truly yours,

                                       -----------------------------------------
                                       [Purchaser]

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

                                       I-3
<PAGE>

                                    EXHIBIT J

                        FORM OF ERISA TRANSFER AFFIDAVIT

STATE OF NEW YORK   )
                    )   ss.:
COUNTY OF NEW YORK  )

      The undersigned, being first duly sworn, deposes and says as follows:

      1. The undersigned is the ______________________ of ______________ (the
"Investor"), a [corporation duly organized] and existing under the laws of
__________, on behalf of which he makes this affidavit.

      2. The Investor either (x) is not, and on ___________ [date of transfer]
will not be, an employee benefit plan or other retirement arrangement subject to
Section 406 of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), or Section 4975 of the Internal Revenue Code of 1986, as amended (the
"Code"), (collectively, a "Plan") or a person acting on behalf of any such Plan
or investing the assets of any such Plan; (y) if the Certificate has been the
subject of an ERISA-Qualifying Underwriting, is an insurance company that is
purchasing the Certificate with funds contained in an "insurance company general
account" as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60 and the purchase and holding of the Certificate satisfy the
requirements for exemptive relief under Sections I and III of PTCE 95-60; or (z)
herewith delivers to the Certificate Registrar an opinion of counsel
satisfactory to the Certificate Registrar and the Securities Administrator and
upon which the Certificate Registrar, the Trustee, the Master Servicer, the
Depositor and the Securities Administrator shall be entitled to rely, to the
effect that the purchase and holding of such Certificate by the Investor will
not constitute or result in any non-exempt prohibited transactions under Title I
of ERISA or Section 4975 of the Code and will not subject the Certificate
Registrar, the Trustee, the Master Servicer, the Depositor or the Securities
Administrator 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 Trust Fund or the above parties.

      3. The Investor hereby acknowledges that under the terms of the Pooling
and Servicing Agreement, dated as of ___________, 200_ (the "Pooling and
Servicing Agreement"), by and among Morgan Stanley Capital I Inc., as Depositor,
[Wells Fargo Bank, National Association], as Master Servicer and as Securities
Administrator, and [LaSalle Bank National Association], as Trustee, no transfer
of the ERISA-Restricted Certificates shall be permitted to be made to any person
unless the Certificate Registrar has received a certificate from such transferee
in the form hereof.

                                       J-1
<PAGE>

      IN WITNESS WHEREOF, the Investor has caused this instrument to be executed
on its behalf, pursuant to proper authority, by its duly authorized officer,
duly attested, this ____ day of _______________ 20___.

                                       [Investor]

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

ATTEST:

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

STATE OF       )
               )   ss.:
COUNTY OF      )

      Personally appeared before me the above-named ________________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the ____________________ of the Investor, and acknowledged that he executed
the same as his free act and deed and the free act and deed of the Investor.

      Subscribed and sworn before me this _____ day of _________ 20___.

                                       -----------------------------------------
                                       NOTARY PUBLIC

                                       My commission expires the
                                       _____ day of __________ 20___.

                                       J-2
<PAGE>

                                    EXHIBIT K

                        FORM OF LETTER OF REPRESENTATIONS
                        WITH THE DEPOSITORY TRUST COMPANY

                     [On File with Securities Administrator]

                                       K-1
<PAGE>

                                   EXHIBIT L-1

                     FORM OF INITIAL CUSTODIAN CERTIFICATION

                                ___________, 200_

Morgan Stanley Capital I Inc.
1585 Broadway
New York, New York 10036

Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036

[Wells Fargo Bank, National Association
9062 Old Annapolis Road
Columbia, Maryland 21045]

[LaSalle Bank National Association, as Trustee
135 South LaSalle Street, Suite 2910
Chicago, Illinios 60603
Attention: Trust Administration - MS]

Re:   Pooling and Servicing Agreement ("Pooling and Servicing Agreement")
      relating to Morgan Stanley Mortgage Loan Trust 200_-_, Mortgage Pass-
      Through Certificates, Series 200_-_
      -----------------------------------

Ladies and Gentlemen:

      In accordance with and subject to the provisions of Section 2.02 of the
Pooling and Servicing Agreement, the undersigned, as Custodian, hereby certifies
that, except for the exceptions noted on the schedule attached hereto, (a) all
documents required to be delivered to the Custodian pursuant to Sections
2.01(a)(i) through (iv) and (ix)(b), (c) (solely to the extent of the UCC-1),
(g) and (h), and if delivered to it, the documents identified in Section
2.01(a)(v) through (vii) and (ix)(c) (solely to the extent of the UCC-3) and (f)
of the Pooling and Servicing Agreement are in its possession, (b) such documents
have been reviewed by it and have not been mutilated, damaged, defaced, torn or
otherwise physically altered, and such documents relate to such Mortgage Loan,
(c) based on its review and examination and only as to the foregoing documents,
such documents appear regular on their face and related to such Mortgage Loan
and (d) each Mortgage Note has been endorsed and each assignment of Mortgage has
been delivered as provided in Section 2.01 of the Pooling and Servicing
Agreement. The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically mentioned above.
The Custodian makes no representations as to: (i) the validity, legality,
sufficiency, enforceability or genuineness of any of the documents delivered in
accordance with Section 2.01 of the Pooling and Servicing Agreement or any of
the Mortgage Loans identified in the Mortgage Loan Schedule, or (ii) the
collectibility, insurability, effectiveness or suitability of any such Mortgage
Loan.

      The Custodian acknowledges receipt of notice that the Depositor has
granted to the Trustee for the benefit of the Certificateholders a security
interest in all of the Depositor's right, title and interest in and to the
Mortgage Loans.

                                      L-1-1
<PAGE>

Capitalized terms used herein without definition shall have the meaning assigned
to them in the Pooling and Servicing Agreement.

                                     [LASALLE BANK NATIONAL ASSOCIATION,]

                                     [JPMORGAN CHASE BANK NATIONAL ASSOCIATION,]
                                       as Custodian

                                     By:
                                        --------------------------------------
                                        Authorized Representative

                                      L-1-2
<PAGE>

                                   EXHIBIT L-2

                      FORM OF FINAL CUSTODIAN CERTIFICATION

                                ___________, 200_

Morgan Stanley Capital I Inc.
1585 Broadway
New York, New York 10036

Morgan Stanley & Co. Incorporated
1585 Broadway
New York, New York 10036

[Wells Fargo Bank, National Association
9062 Old Annapolis Road
Columbia, Maryland 21045]

[LaSalle Bank National Association, as Trustee
135 South LaSalle Street, Suite 2910
Chicago, Illinios 60603
Attention: Trust Administration - MS]

Re:   Pooling and Servicing Agreement ("Pooling and Servicing Agreement")
      relating to Morgan Stanley Mortgage Loan Trust 200_-_,
      Mortgage Pass-Through Certificates, Series 200_-_
      -------------------------------------------------

Ladies and Gentlemen:

      In accordance with and subject to the provisions of Section 2.02 of the
Pooling and Servicing Agreement, the undersigned, as Custodian, hereby certifies
that, except for the exceptions noted on the schedule attached hereto, (a) all
documents required to be delivered to the Custodian pursuant to Sections
2.01(a)(i) through (iv) and (ix)(b), (c) (solely to the extent of the UCC-1),
(g) and (h), and if delivered to it, the documents identified in Section
2.01(a)(v) through (vii) and (ix)(c) (solely to the extent of the UCC-3) and (f)
of the Pooling and Servicing Agreement are in its possession, (b) such documents
have been reviewed by it and have not been mutilated, damaged, defaced, torn or
otherwise physically altered, and such documents relate to such Mortgage Loan,
(c) based on its examination and only as to the foregoing documents, these
documents with respect to each Mortgage Loan accurately reflect the information
contained in the Mortgage Note and Mortgage and (d) each Mortgage Note has been
endorsed and each assignment of Mortgage has been delivered as provided in
Section 2.01 of the Pooling and Servicing Agreement. The Custodian has made no
independent examination of any documents contained in each Mortgage File beyond
the review specifically mentioned above. The Custodian makes no representations
as to: (i) the validity, legality, sufficiency, enforceability or genuineness of
any of the documents delivered in accordance with Section 2.01 of the Pooling
and Servicing Agreement or any of the Mortgage Loans identified in the Mortgage
Loan Schedule, or (ii) the collectibility, insurability, effectiveness or
suitability of any such Mortgage Loan.

      The Custodian acknowledges receipt of notice that the Depositor has
granted to the Trustee for the benefit of the Certificateholders a security
interest in all of the Depositor's right, title and interest in and to the
Mortgage Loans.

                                      L-2-1
<PAGE>

Capitalized terms used herein without definition shall have the meaning assigned
to them in the Pooling and Servicing Agreement.

                                     [LASALLE BANK NATIONAL ASSOCIATION,]

                                     [JPMORGAN CHASE BANK NATIONAL ASSOCIATION,]
                                     as Custodian

                                     By:
                                        --------------------------------------
                                               Authorized Representative

                                      L-2-2
<PAGE>

                                    EXHIBIT M

                        REQUEST FOR RELEASE OF DOCUMENTS

[Wells Fargo Bank, National Association
9062 Old Annapolis Road
Columbia, Maryland 21045]

      Re: Pooling and Servicing Agreement ("Pooling and Servicing Agreement")
      relating to Morgan Stanley Mortgage Loan Trust 200_-_, Mortgage Pass-
      Through Certificates, Series 200_-_
      -----------------------------------

      In connection with the administration of the Mortgage Loans held by you as
Master Servicer 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 (Repurchases, etc.)

      __________        5.       Nonliquidation

      Reason:  ______________________

Address to which Master Servicer should

Deliver the Mortgage File:

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

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

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

                  By:_______________________________________
                           (authorized signer)

Issuer:_____________________________________

Address: ___________________________________

                                       M-1
<PAGE>

                  ___________________________________

Date:    ______________________________________

Master Servicer

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

[Wells Fargo Bank, National Association]

Please acknowledge the execution of the above request by your signature and date
below:

------------------------------------
Signature

---------------------
Date

Documents returned to Master Servicer:

------------------------------------
Signature

---------------------
Date

                                       M-2
<PAGE>

                                   EXHIBIT N-1

                         Additional Form 10-D Disclosure

<TABLE>
<CAPTION>

                   Item on Form 10-D                                         Party Responsible
------------------------------------------------------   -------------------------------------------------------
<S>                                                       <C>
 Item 1: Distribution and Pool Performance Information                           Servicer
                                                                         Securities Administrator
Any information required by 1121 which is NOT included                        Master Servicer
               on the Monthly Statement
------------------------------------------------------   -------------------------------------------------------
               Item 2: Legal Proceedings                    (i) All parties to the PSA (as to themselves), (ii)
                                                            the Securities Administrator as to the Trust Fund,
                per Item 1117 of Reg AB                   (iii) the Depositor as to the Sponsor and the Corridor
                                                          Contract Counterparty and (iv) the Master Servicer, as
                                                                             to any Servicer
------------------------------------------------------   -------------------------------------------------------
    Item 3: Sale of Securities and Use of Proceeds                            Master Servicer
------------------------------------------------------   -------------------------------------------------------
       Item 4: Defaults Upon Senior Certificates                         Securities Administrator
------------------------------------------------------   -------------------------------------------------------
Item 5: Submission of Matters to a Vote of Certificate               Securities Administrator/Trustee
                        Holders
------------------------------------------------------   -------------------------------------------------------
      Item 6: Significant Obligors of Pool Assets           (i) Master Servicer, (ii) Depositor with respect to
                                                           information relating to the Sponsor and the Corridor
                                                                           Contract Counterparty
------------------------------------------------------   -------------------------------------------------------
 Item 7: Significant Enhancement Provider Information       (i) Master Servicer, (ii) Depositor with respect to
                                                           information relating to the Sponsor and the Corridor
                                                                           Contract Counterparty
------------------------------------------------------   -------------------------------------------------------
               Item 8: Other Information                  Any party responsible for disclosure items on Form 8-K
------------------------------------------------------   -------------------------------------------------------
                   Item 9: Exhibits                                      Securities Administrator
------------------------------------------------------   -------------------------------------------------------

------------------------------------------------------   -------------------------------------------------------
</TABLE>

                                       N-1
<PAGE>

                                   EXHIBIT N-2

                         Additional Form 10-K Disclosure

<TABLE>
<CAPTION>

                   Item on Form 10-K                                         Party Responsible
------------------------------------------------------   -------------------------------------------------------
<S>                                                      <C>
               Item 9B: Other Information                 Any party responsible for disclosure items on Form 8-K
------------------------------------------------------   -------------------------------------------------------
    Item 15: Exhibits, Financial Statement Schedules                     Securities Administrator
------------------------------------------------------   -------------------------------------------------------
                    Additional Item:                        (i) All parties to the PSA (as to themselves), (ii)
                                                          the Securities Administrator and Master Servicer as to
           Disclosure per Item 1117 of Reg AB              the Trust Fund, (iii) the Depositor as to the Sponsor
                                                                  and the Corridor Contract Counterparty
------------------------------------------------------   -------------------------------------------------------
                    Additional Item:                      (i) All parties to the Pooling and Servicing Agreement
          Disclosure per Item 1119 of Reg AB              as to themselves, (ii) the Depositor as to the Sponsor
                                                                 and the Corridor Contract Counterparty
------------------------------------------------------   -------------------------------------------------------
                    Additional Item:                                     Securities Administrator
          Disclosure per Item 1112(b) of Reg AB
------------------------------------------------------   -------------------------------------------------------
                    Additional Item:                                     Securities Administrator
   Disclosure per Items 1114(b) and 1115(b) of Reg AB
------------------------------------------------------   -------------------------------------------------------

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

</TABLE>

                                       M-1
<PAGE>

                                   EXHIBIT [D]

                         Form 8-K Disclosure Information

<TABLE>
<CAPTION>

                    Item on Form 8-K                                          Party Responsible
------------------------------------------------------   -------------------------------------------------------
<S>                                                      <C>
Item 1.01- Entry into a Material Definitive Agreement                           All parties
------------------------------------------------------   -------------------------------------------------------
         Item 1.02- Termination of a Material                                   All parties
                   Definitive Agreement
------------------------------------------------------   -------------------------------------------------------
          Item 1.03- Bankruptcy or Receivership              (i) All parties to the PSA (as to themselves), (ii)
                                                                the Depositor as to the sponsor, any 1106(b)
                                                                      originator, any 1100(d)(1) party
------------------------------------------------------   -------------------------------------------------------
  Item 2.04- Triggering Events that Accelerate or                         Securities Administrator
  Increase a Direct Financial Obligation or an
 Obligation under an Off-Balance Sheet Arrangement
------------------------------------------------------   -------------------------------------------------------
 Item 3.03- Material Modification to Rights of                       Securities Administrator/Trustee
                 Security Holders
------------------------------------------------------   -------------------------------------------------------
  Item 5.03- Amendments of Articles of Incorporation          (i) Securities Administrator, (ii) Depositor with
            or Bylaws; Change of Fiscal Year                 respect to any information relating to the Depositor
------------------------------------------------------   -------------------------------------------------------
Item 6.02- Change of Servicer or Securities                         Servicer, Securities Administrator
                   Administrator
------------------------------------------------------   -------------------------------------------------------
   Item 6.03- Change in Credit Enhancement or External                    Securities Administrator
                         Support
------------------------------------------------------   -------------------------------------------------------
   Item 6.04- Failure to Make a Required Distribution                     Securities Administrator
------------------------------------------------------   -------------------------------------------------------
      Item 6.05- Securities Act Updating Disclosure                             Depositor
------------------------------------------------------   -------------------------------------------------------
              Item 7.01- Reg FD Disclosure                                      Depositor
------------------------------------------------------   -------------------------------------------------------
                        Item 8.01                             (i) Securities Administrator, (ii) Depositor with
                                                            respect to any information relating to the Depositor
------------------------------------------------------   -------------------------------------------------------
                        Item 9.01                           (i) Depositor with respect to documentation executed
                                                                 as of the Closing Date and (ii) Securities
                                                                                Administrator
------------------------------------------------------   -------------------------------------------------------

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

</TABLE>

                                       M-1
<PAGE>

                                    EXHIBIT O

                                    [FORM OF]
                      SERVICING CRITERIA TO BE ADDRESSED IN
                       ASSESSMENT OF COMPLIANCE STATEMENT

      The assessment of compliance to be delivered by each party listed below
shall address, at a minimum, the criteria identified as below as "Applicable
Servicing Criteria":

<TABLE>
<CAPTION>

                                                                                        Applicable Servicing
                                                                                              Criteria/
                                Servicing Criteria                                        Responsible Party
------------------------------------------------------------------------------------------------------------
  Reference                                     Criteria
------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                  <C>
                                    General Servicing Considerations
----------------                                                                        --------------------
                   Policies and procedures are instituted to monitor any performance
1122(d)(1)(i)      or other triggers and events of default in accordance with the
                   transaction agreements.                                                    S, MS, SA
----------------                                                                        --------------------
                   If any material servicing activities are outsourced to third
                   parties, policies and procedures are instituted to monitor the
1122(d)(1)(ii)     third party's performance and compliance with such servicing               S, MS, SA
                   activities.
----------------                                                                        --------------------
1122(d)(1)(iii)    Any requirements in the transaction agreements to maintain a                  N/A
                   back-up servicer for the mortgage loans are maintained.
----------------                                                                        --------------------
                   A fidelity bond and errors and omissions policy is in effect on
                   the party participating in the servicing function throughout the
1122(d)(1)(iv)     reporting period in the amount of coverage required by and               S, MS, SA, C
                   otherwise in accordance with the terms of the transaction
                   agreements.
----------------                                                                        --------------------
                                   Cash Collection and Administration
----------------                                                                        --------------------
                   Payments on mortgage loans are deposited into the appropriate
                   custodial bank accounts and related bank clearing accounts no more
1122(d)(2)(i)      than two business days following receipt, or such other number of          S, MS, SA
                   days specified in the transaction agreements.
----------------                                                                        --------------------
1122(d)(2)(ii)     Disbursements made via wire transfer on behalf of an obligor or to         S, MS, SA
                   an investor are made only by authorized personnel.
                   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        --------------------
1122(d)(2)(iii)    transaction agreements.                                                      S, MS

----------------                                                                        --------------------
                   The related accounts for the transaction, such as cash reserve
                   accounts or accounts established as a form of
1122(d)(2)(iv)     overcollateralization, are separately maintained (e.g., with               S, MS, SA
                   respect to commingling of cash) as set forth in the transaction
                   agreements.

</TABLE>

                                       N-1
<PAGE>
<TABLE>
<CAPTION>

                                                                                        Applicable Servicing
                                                                                              Criteria/
                                Servicing Criteria                                        Responsible Party
------------------------------------------------------------------------------------------------------------
  Reference                                     Criteria
------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                  <C>
                   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   --------------------
1122(d)(2)(v)      a foreign financial institution that meets the requirements of             S, MS, SA
                   Rule 13k-1(b)(1) of the Securities Exchange Act.

----------------                                                                        --------------------
1122(d)(2)(vi)     Unissued checks are safeguarded so as to prevent unauthorized              S, MS, SA
                   access.
----------------                                                                        --------------------
                   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
1122(d)(2)(vii)    days specified in the transaction agreements; (C) reviewed and             S, MS, SA
                   approved by someone other than the person who prepared the
                   reconciliation; and (D) contain explanations for reconciling
                   items. These reconciling items are resolved within 90 calendar
                   days of their original identification, or such other number of
                   days specified in the transaction agreements.
----------------                                                                        --------------------
                                   Investor Remittances and Reporting
----------------                                                                        --------------------
                   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
1122(d)(3)(i)      information calculated in accordance with the terms specified in           S, MS, SA
                   the transaction agreements; (C) are filed with the Commission as
                   required by its rules and regulations; and (D) agree with
                   investors' or the trustee's records as to the total unpaid
                   principal balance and number of mortgage loans serviced by the
                   Servicer.
----------------                                                                        --------------------
                   Amounts due to investors are allocated and remitted in accordance
1122(d)(3)(ii)     with timeframes, distribution priority and other terms set forth           S, MS, SA
                   in the transaction agreements.
----------------                                                                        --------------------
                   Disbursements made to an investor are posted within two business
1122(d)(3)(iii)    days to the Servicer's investor records, or such other number of           S, MS, SA
                   days specified in the transaction agreements.
----------------                                                                        --------------------
                   Amounts remitted to investors per the investor reports agree with
1122(d)(3)(iv)     cancelled checks, or other form of payment, or custodial bank              S, MS, SA
                   statements.
----------------                                                                        --------------------
                                        Pool Asset Administration
----------------                                                                        --------------------

</TABLE>

                                       O-1
<PAGE>
<TABLE>
<CAPTION>

                                                                                        Applicable Servicing
                                                                                              Criteria/
                                Servicing Criteria                                        Responsible Party
------------------------------------------------------------------------------------------------------------
  Reference                                     Criteria
------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                  <C>
1122(d)(4)(i)      Collateral or security on mortgage loans is maintained as required       S, MS, SA, C
                   by the transaction agreements or related mortgage loan documents.
----------------                                                                        --------------------
1122(d)(4)(ii)     Mortgage loan and related documents are safeguarded as required by         S, SA, C
                   the transaction agreements.
----------------                                                                        --------------------
                   Any additions, removals or substitutions to the asset pool are
1122(d)(4)(iii)    made, reviewed and approved in accordance with any conditions or             S, C
                   requirements in the transaction agreements.
----------------                                                                        --------------------
                   Payments on mortgage loans, including any payoffs, made in
                   accordance with the related mortgage loan documents are posted to
                   the Servicer's obligor records maintained no more than two
1122(d)(4)(iv)     business days after receipt, or such other number of days                      S
                   specified in the transaction agreements, and allocated to
                   principal, interest or other items (e.g., escrow) in accordance
                   with the related mortgage loan documents.
----------------                                                                        --------------------
                   The Servicer's records regarding the mortgage loans agree with the
1122(d)(4)(v)      Servicer's records with respect to an obligor's unpaid principal               S
                   balance.
----------------                                                                        --------------------
                   Changes with respect to the terms or status of an obligor's
                   mortgage loans (e.g., loan modifications or re-agings) are made,
1122(d)(4)(vi)     reviewed and approved by authorized personnel in accordance with               S
                   the transaction agreements and related pool asset documents.
----------------                                                                        --------------------
                   Loss mitigation or recovery actions (e.g., forbearance plans,
                   modifications and deeds in lieu of foreclosure, foreclosures and
1122(d)(4)(vii)    repossessions, as applicable) are initiated, conducted and                   S, MS
                   concluded in accordance with the timeframes or other requirements
                   established by the transaction agreements.
----------------                                                                        --------------------
                   Records documenting collection efforts are maintained during the
                   period a mortgage loan is delinquent in accordance with the
                   transaction agreements. Such records are maintained on at least a
                   monthly basis, or such other period specified in the transaction
1122(d)(4)(viii)   agreements, and describe the entity's activities in monitoring               S, MS
                   delinquent mortgage loans including, for example, phone calls,
                   letters and payment rescheduling plans in cases where delinquency
                   is deemed temporary (e.g., illness or unemployment).
----------------                                                                        --------------------
                   Adjustments to interest rates or rates of return for mortgage
1122(d)(4)(ix)     loans with variable rates are computed based on the related                    S
                   mortgage loan documents.
----------------                                                                        --------------------
                   Regarding any funds held in trust for an obligor (such as escrow
1122(d)(4)(x)      accounts): (A) such funds are analyzed, in accordance with the                 S
                   obligor's mortgage loan documents, on

</TABLE>

                                       O-1
<PAGE>
<TABLE>
<CAPTION>

                                                                                        Applicable Servicing
                                                                                              Criteria/
                                Servicing Criteria                                        Responsible Party
------------------------------------------------------------------------------------------------------------
  Reference                                     Criteria
------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                  <C>
                   at least an annual basis, or such other period specified in
                   the transaction agreements; (B) interest on such funds is
                   paid, or credited, to obligors in accordance with applicable
                   mortgage loan documents and state laws; and (C) such funds
                   are returned to the obligor within 30 calendar days of
                   full repayment of the related mortgage loans, or such other
                   number of days specified in the transaction agreements.
----------------                                                                        --------------------
                   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
1122(d)(4)(xi)     payments, provided that such support has been received by the                  S
                   servicer at least 30 calendar days prior to these dates, or such
                   other number of days specified in the transaction agreements.
----------------                                                                        --------------------
                   Any late payment penalties in connection with any payment to be
                   made on behalf of an obligor are paid from the servicer's funds
1122(d)(4)(xii)    and not charged to the obligor, unless the late payment was due to             S
                   the obligor's error or omission.
----------------                                                                        --------------------
                   Disbursements made on behalf of an obligor are posted within two
                   business days to the obligor's records maintained by the servicer,
1122(d)(4)(xiii)   or such other number of days specified in the transaction
                   agreements.                                                                    S
----------------                                                                        --------------------
                   Delinquencies, charge-offs and uncollectible accounts are
1122(d)(4)(xiv)    recognized and recorded in accordance with the transaction
                   agreements.                                                                    S
----------------                                                                        --------------------
                   Any external enhancement or other support, identified in Item
1122(d)(4)(xv)     1114(a)(1) through (3) or Item 1115 of Regulation AB, is                      SA
                   maintained as set forth in the transaction agreements.
------------------------------------------------------------------------------------------------------------

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

</TABLE>

                                        [NAME OF REPORTING PARTY]

                                        Date:
                                             -----------------------------------

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

Key:

                                       O-1
<PAGE>

S = each Servicer
MS = Master Servicer
SA = Securities Administrator
C = Custodian

                                       O-1
<PAGE>

                                    EXHIBIT P

                     [FORM OF] SARBANES OXLEY CERTIFICATION

            Re:   Pooling and Servicing Agreement ("Pooling and Servicing
                  Agreement") relating to Morgan Stanley Mortgage Loan Trust
                  200_-_, Mortgage Pass-Through Certificates, Series 200_-_
                  ---------------------------------------------------------

I, ________________________________, the _____________________ of [name of
company certifying], certify to [the Purchaser], [the Depositor], and the
[Master Servicer] [Securities Administrator] [Trustee], and their officers, with
the knowledge and intent that they will rely upon this certification, that:

      (1) I have reviewed the servicer compliance statement of the Company
provided in accordance with Item 1123 of Regulation AB (the "Compliance
Statement"), the report on assessment of the Company's compliance with the
servicing criteria set forth in Item 1122(d) of Regulation AB and identified as
the responsibility of the Company on Exhibit B-1 to the Regulation AB Compliance
Addendum to the Agreement (the "Servicing Criteria"), provided in accordance
with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
(the "Exchange Act") and Item 1122 of Regulation AB (the "Servicing
Assessment"), the registered public accounting firm's attestation report
provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act and
Section 1122(b) of Regulation AB (the "Attestation Report"), and all servicing
reports, officer's certificates and other information relating to the servicing
of the Mortgage Loans by the Company during 200[ ] that were delivered by the
Company to the [Depositor] [Master Servicer] [Securities Administrator]
[Trustee] pursuant to the Agreement (collectively, the "Company Servicing
Information");

      (2) Based on my knowledge, the Company Servicing Information, taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in the light of the
circumstances under which such statements were made, not misleading with respect
to the period of time covered by the Company Servicing Information;

      (3) Based on my knowledge, all of the Company Servicing Information
required to be provided by the Company under the Agreement has been provided to
the [Depositor] [Master Servicer] [Securities Administrator] [Trustee];

      (4) I am responsible for reviewing the activities performed by the Company
as servicer under the Agreement, and based on my knowledge and the compliance
review conducted in preparing the Compliance Statement and except as disclosed
in the Compliance Statement, the Servicing Assessment or the Attestation Report,
the Company has fulfilled its obligations under the Agreement in all material
respects; and

      (5) The Compliance Statement required to be delivered by the Company
pursuant to the Agreement, and the Servicing Assessment and Attestation Report
required to be provided by the Company and by any Subservicer and Subcontractor
pursuant to the Agreement, have been provided to the [Depositor] [Master
Servicer]. Any material instances of noncompliance

                                       P-1
<PAGE>

described in such reports have been disclosed to the [Depositor] [Master
Servicer]. Any material instance of noncompliance with the Servicing Criteria
has been disclosed in such reports.

                                        Date:
                                             -----------------------------------

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

                                           Title:

                                       P-2
<PAGE>

                                   SCHEDULE A

                             MORTGAGE LOAN SCHEDULE

           [On File with the Trustee and the Securities Administrator]

                                    SCH. A-1
<PAGE>

                                   SCHEDULE B

                           PRINCIPAL BALANCES SCHEDULE

               [Attached to Prospectus Supplement, if applicable]

                                    Sch. B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]