Document:

<PAGE>

                                                                  EXECUTION COPY

             STRUCTURED ASSET SECURITIES CORPORATION, as Depositor,

                 AURORA LOAN SERVICES INC., as Master Servicer,

                                       and

                         JPMORGAN CHASE BANK, as Trustee

                           ___________________________

                                 TRUST AGREEMENT

                          Dated as of February 1, 2004

                           ___________________________

                 STRUCTURED ADJUSTABLE RATE MORTGAGE LOAN TRUST
                       MORTGAGE PASS-THROUGH CERTIFICATES
                                 SERIES 2004-3AC

<PAGE>
<TABLE>
<CAPTION>
                                                 TABLE OF CONTENTS
                                                    (continued)

                                                                                                               Page
<S>     <C>        <C>                                                                                         <C>
Article I          DEFINITIONS...................................................................................6

         Section 1.01.         Definitions.......................................................................6

         Section 1.02.         Calculations Respecting Mortgage Loans...........................................37

Article II         DECLARATION OF TRUST; ISSUANCE OF CERTIFICATES...............................................37

         Section 2.01.         Creation and Declaration of Trust Fund; Conveyance of
                               Mortgage Loans...................................................................37

         Section 2.02.         Acceptance of Trust Fund by Trustee: Review of
                               Documentation for Trust Fund.....................................................41

         Section 2.03.         Representations and Warranties of the Depositor..................................43

         Section 2.04.         Discovery of Breach..............................................................44

         Section 2.05.         Repurchase, Purchase or Substitution of Mortgage Loans...........................45

         Section 2.06.         Grant Clause.....................................................................46

Article III        THE CERTIFICATES.............................................................................46

         Section 3.01.         The Certificates.................................................................46

         Section 3.02.         Registration.....................................................................48

         Section 3.03.         Transfer and Exchange of Certificates............................................48

         Section 3.04.         Cancellation of Certificates.....................................................54

         Section 3.05.         Replacement of Certificates......................................................54

         Section 3.06.         Persons Deemed Owners............................................................54

         Section 3.07.         Temporary Certificates...........................................................55

         Section 3.08.         Appointment of Paying Agent......................................................55

         Section 3.09.         Book-Entry Certificates..........................................................55

Article IV         ADMINISTRATION OF THE TRUST FUND.............................................................57

         Section 4.01.         Collection Account...............................................................57

         Section 4.02.         Application of Funds in the Collection Account...................................59

         Section 4.03.         Reports to Certificateholders....................................................61

         Section 4.04.         Certificate Account..............................................................64

         Section 4.05.         [Reserved].......................................................................65

         Section 4.06.         Certain Provisions with Respect to the Participations............................65
</TABLE>

                                                         i
<PAGE>

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                                                 TABLE OF CONTENTS
                                                    (continued)

                                                                                                               Page
<S>     <C>        <C>                                                                                         <C>
Article V          DISTRIBUTIONS TO HOLDERS OF CERTIFICATES.....................................................65

         Section 5.01.         Distributions Generally..........................................................65

         Section 5.02.         Distributions from the Certificate Account.......................................65

         Section 5.03.         Allocation of Realized Losses....................................................69

         Section 5.04.         Advances by the Master Servicer and the Trustee..................................71

         Section 5.05.         Compensating Interest Payments...................................................72

Article VI         CONCERNING THE TRUSTEE; EVENTS OF DEFAULT....................................................72

         Section 6.01.         Duties of Trustee................................................................72

         Section 6.02.         Certain Matters Affecting the Trustee............................................74

         Section 6.03.         Trustee Not Liable for Certificates..............................................76

         Section 6.04.         Trustee May Own Certificates.....................................................76

         Section 6.05.         Eligibility Requirements for Trustee.............................................76

         Section 6.06.         Resignation and Removal of Trustee...............................................77

         Section 6.07.         Successor Trustee................................................................77

         Section 6.08.         Merger or Consolidation of Trustee...............................................78

         Section 6.09.         Appointment of Co-Trustee, Separate Trustee or Custodian.........................78

         Section 6.10.         Authenticating Agents............................................................80

         Section 6.11.         Indemnification of Trustee.......................................................80

         Section 6.12.         Fees and Expenses of Trustee and Custodian.......................................81

         Section 6.13.         Collection of Monies.............................................................81

         Section 6.14.         Events of Default; Trustee To Act; Appointment of Successor......................82

         Section 6.15.         Additional Remedies of Trustee Upon Event of Default.............................86

         Section 6.16.         Waiver of Defaults...............................................................86

         Section 6.17.         Notification to Holders..........................................................86

         Section 6.18.         Directions by Certificateholders and Duties of Trustee During
                               Event of Default.................................................................86

         Section 6.19.         Action Upon Certain Failures of the Master Servicer and Upon
                               Event of Default.................................................................87

         Section 6.20.         Preparation of Tax Returns and Other Reports.....................................87
</TABLE>

                                                         ii
<PAGE>

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<CAPTION>
                                                 TABLE OF CONTENTS
                                                    (continued)

                                                                                                               Page
<S>     <C>        <C>                                                                                         <C>
Article VII        PURCHASE AND TERMINATION OF THE TRUST FUND...................................................89

         Section 7.01.         Termination of Trust Fund Upon Repurchase or Liquidation of
                               All Mortgage Loans...............................................................89

         Section 7.02.         Procedure Upon Termination of Trust Fund.........................................89

         Section 7.03.         Additional Requirements under the REMIC Provisions...............................90

Article VIII       RIGHTS OF CERTIFICATEHOLDERS.................................................................91

         Section 8.01.         Limitation on Rights of Holders..................................................91

         Section 8.02.         Access to List of Holders........................................................92

         Section 8.03.         Acts of Holders of Certificates..................................................92

Article IX         ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY
                   THE MASTER SERVICER..........................................................................93

         Section 9.01.         Duties of the Master Servicer....................................................93

         Section 9.02.         Master Servicer Fidelity Bond and Master Servicer Errors and
                               Omissions Insurance Policy.......................................................93

         Section 9.03.         Master Servicer's Financial Statements and Related
                               Information......................................................................94

         Section 9.04.         Power to Act; Procedures.........................................................94

         Section 9.05.         Servicing Agreements Between the Master Servicer and
                               Servicers; Enforcement of Servicers' Obligations.................................96

         Section 9.06.         Collection of Taxes, Assessments and Similar Items...............................97

         Section 9.07.         Termination of Servicing Agreements; Successor Servicers.........................98

         Section 9.08.         Master Servicer Liable for Enforcement...........................................98

         Section 9.09.         No Contractual Relationship Between Servicers and Trustee or
                               Depositor........................................................................98

         Section 9.10.         Assumption of Servicing Agreement by Trustee.....................................99

         Section 9.11.         "Due-on-Sale" Clauses; Assumption Agreements.....................................99

         Section 9.12.         Release of Mortgage Files.......................................................100

         Section 9.13.         Documents, Records and Funds in Possession of Master
                               Servicer To Be Held for Trustee.................................................101

         Section 9.14.         Representations and Warranties of the Master Servicer...........................102

         Section 9.15.         Closing Certificate and Opinion.................................................104

         Section 9.16.         Standard Hazard and Flood Insurance Policies....................................104

         Section 9.17.         Presentment of Claims and Collection of Proceeds................................105

         Section 9.18.         Maintenance of the Primary Mortgage Insurance Policies..........................105
</TABLE>

                                                        iii
<PAGE>

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                                                 TABLE OF CONTENTS
                                                    (continued)

                                                                                                               Page
<S>     <C>        <C>                                                                                         <C>
         Section 9.19.         Trustee To Retain Possession of Certain Insurance Policies and
                               Documents.......................................................................106

         Section 9.20.         Realization Upon Defaulted Mortgage Loans.......................................106

         Section 9.21.         Compensation to the Master Servicer.............................................107

         Section 9.22.         REO Property....................................................................107

         Section 9.23.         [Reserved]......................................................................108

         Section 9.24.         Reports to the Trustee..........................................................108

         Section 9.25.         Annual Officer's Certificate as to Compliance...................................109

         Section 9.26.         Annual Independent Accountants' Servicing Report................................109

         Section 9.27.         Merger or Consolidation.........................................................110

         Section 9.28.         Resignation of Master Servicer..................................................110

         Section 9.29.         Assignment or Delegation of Duties by the Master Servicer.......................111

         Section 9.30.         Limitation on Liability of the Master Servicer and Others.......................111

         Section 9.31.         Indemnification; Third-Party Claims.............................................112

Article X          REMIC ADMINISTRATION........................................................................112

         Section 10.01.        REMIC and Grantor Trust Administration..........................................112

         Section 10.02.        Prohibited Transactions and Activities..........................................115

         Section 10.03.        Indemnification with Respect to Certain Taxes and Loss of
                               REMIC Status....................................................................116

         Section 10.04.        REO Property....................................................................116

Article XI         MISCELLANEOUS PROVISIONS....................................................................117

         Section 11.01.        Binding Nature of Agreement; Assignment.........................................117

         Section 11.02.        Entire Agreement................................................................117

         Section 11.03.        Amendment.......................................................................118

         Section 11.04.        Voting Rights...................................................................119

         Section 11.05.        Provision of Information........................................................119

         Section 11.06.        Governing Law...................................................................119

         Section 11.07.        Notices.........................................................................120

         Section 11.08.        Severability of Provisions......................................................120

         Section 11.09.        Indulgences; No Waivers.........................................................120

</TABLE>

                                                         iv
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<CAPTION>
                                                 TABLE OF CONTENTS
                                                    (continued)

                                                                                                               Page
<S>     <C>        <C>                                                                                         <C>
         Section 11.10.        Headings Not To Affect Interpretation...........................................120

         Section 11.11.        Benefits of Agreement...........................................................121

         Section 11.12.        Special Notices to the Rating Agencies..........................................121

         Section 11.13.        Counterparts....................................................................122

         Section 11.14.        Transfer of Servicing...........................................................122
</TABLE>

                                        v
<PAGE>

                                   ATTACHMENTS

Exhibit A         Forms of Certificates
Exhibit B-1       Form of Initial Certification
Exhibit B-2       Form of Interim Certification
Exhibit B-3       Form of Final Certification
Exhibit B-4       Form of Endorsement
Exhibit C         Request for Release of Documents and Receipt
Exhibit D-l       Form of Residual Certificate Transfer Affidavit (Transferee)
Exhibit D-2       Form of Residual Certificate Transfer Affidavit (Transferor)
Exhibit E         Servicing Agreements
Exhibit F         Form of Rule 144A Transfer Certificate
Exhibit G         Form of Purchaser's Letter for Institutional Accredited
                  Investors
Exhibit H         Form of ERISA Transfer Affidavit
Exhibit I         Monthly Remittance Advice
Exhibit J         Monthly Electronic Data Transmission
Exhibit K         Custodial Agreements
Exhibit L-1       Form of Transfer Certificate for Transfer from Restricted
                  Global Security to Regulation S Global Security
Exhibit L-2       Form of Transfer Certificate for Transfer from Regulation S
                  Global Security to Restricted Global Security
Exhibit M         Form of Certification to be Provided to the Depositor and the
                  Master Servicer by the Trustee

Schedule A        Mortgage Loan Schedule
Schedule B        Employee Mortgage Loan Schedule
Schedule C        AX Mortgage Loans
Schedule D        PAX Mortgage Loans

                                       vi
<PAGE>

         This TRUST AGREEMENT, dated as of February 1, 2004 (the "Agreement"),
is by and among STRUCTURED ASSET SECURITIES CORPORATION, a Delaware corporation,
as depositor (the "Depositor"), AURORA LOAN SERVICES INC., as master servicer
(the "Master Servicer"), and JPMORGAN CHASE BANK, a national banking
association, as trustee (the "Trustee").

                              PRELIMINARY STATEMENT

         The Depositor has acquired the Mortgage Loans from Lehman Brothers
Holdings (the "Seller"), and at the Closing Date is the owner of the Mortgage
Loans and the other property being conveyed by it to the Trustee for inclusion
in the Trust Fund. On the Closing Date, the Depositor will acquire the
Certificates from the Trust Fund as consideration for its transfer to the Trust
Fund of the Mortgage Loans and the other property constituting the Trust Fund.
The Depositor has duly authorized the execution and delivery of this Agreement
to provide for the conveyance to the Trustee of the Mortgage Loans and the other
property constituting the Trust Fund. All covenants and agreements made by the
Depositor, the Master Servicer and the Trustee herein with respect to the
Mortgage Loans and the other property constituting the Trust Fund are for the
benefit of the Holders from time to time of the Certificates. The Depositor and
the Master Servicer are entering into this Agreement, and the Trustee is
accepting the Trust Fund created hereby, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged.

         As provided herein, the Trustee shall elect that the Trust Fund (other
than the rights to Prepayment Penalty Amounts) be treated for federal income tax
purposes as comprising three real estate mortgage investment conduits (each a
"REMIC" or, in the alternative, the Lower Tier REMIC, the Middle Tier REMIC and
the Upper Tier REMIC, respectively). As described in Section 10.01 hereof, the
Trust Fund will also be treated for federal income tax purposes as including
three grantor trusts. Each Certificate, other than the Class P Certificates and
the Class R Certificate, represents ownership of a regular interest in the Upper
Tier REMIC for purposes of the REMIC Provisions. The Class R Certificate
represents ownership of the sole class of residual interest in each of the Lower
Tier REMIC, the Middle Tier REMIC and the Upper Tier REMIC for purposes of the
REMIC Provisions. The Upper Tier REMIC shall hold as assets the several classes
of uncertificated Middle Tier Interests, other than the Class MT-R Interest, set
out below. Each Middle Tier Interest, other than the Class MT-R Interest, is
hereby designated as a regular interest in the Middle Tier REMIC. The Middle
Tier REMIC shall hold as assets the several classes of uncertificated Lower Tier
Interests, other than the Class LT-R Interest, set out below. Each Lower Tier
Interest, other than the Class LT-R Interest, is hereby designated as a regular
interest in the Lower Tier REMIC. The Lower Tier REMIC shall hold as assets all
property of the Trust Fund other than the Lower Tier Interests, the Middle Tier
Interests, the rights to Prepayment Penalty Amounts and interests in the grantor
trusts described in Section 10.01 hereof.

Lower Tier REMIC

         The following table specifies the class designation, interest rate, and
principal amount for each class of Lower Tier Interests.

<PAGE>

 Lower Tier Class                                     Initial Class or Principal
   Designation                   Interest Rate                 Amount
-----------------                -------------        --------------------------
Class LT-AX                          (1)                  $573,994,576.68
Class LT-PAX                         (2)                  $288,530,374.80
Class LT-R                           (3)                              (3)

-------------------------
     (1) For any Distribution Date prior to the Distribution Date in December
         2008, the interest rate for the Class LT-AX Interest shall be a per
         annum rate equal to the weighted average of the Net Mortgage Rates of
         the AX Mortgage Loans at the beginning of the related Due Period,
         weighted on the basis of their respective Scheduled Principal Balances
         as of the preceding Distribution Date (or, if there is no preceding
         Distribution Date, as of the Cut-off Date). For each Distribution Date
         starting with the Distribution Date in December 2008, the interest rate
         for the Class LT-AX Interest shall be a per annum rate equal to the
         weighted average of the Net Mortgage Rates of the Mortgage Loans at the
         beginning of the related Due Period, weighted on the basis of their
         respective Scheduled Principal Balances as of the preceding
         Distribution Date (or, if there is no preceding Distribution Date, as
         of the Cut-off Date).

     (2) For any Distribution Date prior to the Distribution Date in December
         2008, the interest rate for the Class LT-PAX Interest shall be a per
         annum rate equal to the weighted average of the Net Mortgage Rates of
         the PAX Mortgage Loans at the beginning of the related Due Period,
         weighted on the basis of their respective Scheduled Principal Balances
         as of the preceding Distribution Date (or, if there is no preceding
         Distribution Date, as of the Cut-off Date). For each Distribution Date
         starting with the Distribution Date in December 2008, the interest rate
         for the Class LT-PAX Interest shall be a per annum rate equal to the
         weighted average of the Net Mortgage Rates of the Mortgage Loans at the
         beginning of the related Due Period, weighted on the basis of their
         respective Scheduled Principal Balances as of the preceding
         Distribution Date (or, if there is no preceding Distribution Date, as
         of the Cut-off Date).

     (3) The Class LT-R Interest shall represent the sole class of residual
         interest in the Lower Tier REMIC. The Class LT-R Interest will not have
         a principal amount or an interest rate. The Class LT-R Interest shall
         be represented by the Class R Certificate.

         All Realized Losses from the AX Mortgage Loans shall be allocated to
the Class LT-AX Interest and all payments of principal and, for Distribution
Dates prior to the Distribution Date in December 2008, interest received with
respect to the AX Mortgage Loans shall be paid on the Class LT-AX Interest in
payment of accrued interest and principal until the principal balance of such
Class is reduced to zero and any losses allocated to such Class have been
reimbursed.

         All Realized Losses from the PAX Mortgage Loans shall be allocated to
the Class LT-PAX Interest and all payments of principal and, for Distribution
Dates prior to the Distribution Date in December 2008, interest received with
respect to the PAX Mortgage Loans shall be paid on the Class LT-PAX Interest in
payment of accrued interest and principal until the principal balance of such
Class is reduced to zero and any losses allocated to such Class have been
reimbursed.

         For each Distribution Date starting with the Distribution Date in
December 2008, interest received on the Mortgage Loans will be distributed in
respect of the Class LT-AX Interest and the Class LT-PAX Interest in proportion
to the relative outstanding unpaid interest amounts for those Interests.

                                        2
<PAGE>

         If on any Distribution Date there is an increase in the Certificate
Principal Amount of any Class of Certificates as a result of the proviso in the
definition of Certificate Principal Amount, then there shall be a corresponding
increase in the principal amount of the Lower Tier Regular Interests, with the
increase allocated among the Lower Tier Regular Interests in a manner that
reflects whether the Subsequent Recovery was in respect of an AX Mortgage Loan
or a PAX Mortgage Loan.

Middle Tier REMIC

         The following table specifies the class designation, interest rate and
principal amount for each class of Middle Tier Interests.

 Middle Tier
 REMIC Class                                   Initial Class or Principal
 Designation             Interest Rate                    Amount
-------------            -------------         --------------------------
Class MT-AX                 (1)                      $573,994,576.68
Class MT-AXIO               (2)                                  (6)
Class MT-PAX                (3)                      $288,530,374.80
Class MT-PAXIO              (4)                                  (7)
Class MT-R                  (5)                                  (5)

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

     (1)  For any Distribution Date prior to the Distribution Date in December
          2008, the interest rate for the Class MT-AX Interest shall be the
          lesser of (i) 4.9347704228% and (ii) the interest rate on the Class
          LT-AX Interest. For each Distribution Date starting with the
          Distribution Date in December 2008, the interest rate for the Class
          MT-AX Interest shall be the interest rate on the Class LT-AX Interest.

     (2)  For any Distribution Date prior to the Distribution Date in December
          2008, the interest rate for the Class MT-AXIO Interest shall be equal
          to the excess, if any, of (i) the interest rate on the Class LT-AX
          Interest over (ii) 4.9347704228%. The Class MT-AXIO Interest shall not
          be entitled to any distributions in respect of Distribution Dates
          after November 2008.

     (3)  For any Distribution Date prior to the Distribution Date in December
          2008, the interest rate for the Class MT-PAX Interest shall be the
          lesser of (i) 4.9347704228% and (ii) the interest rate on the Class
          LT-PAX Interest. For each Distribution Date starting with the
          Distribution Date in December 2008, the interest rate for the Class
          MT-PAX Interest shall be the interest rate on the Class LT-PAX
          Interest.

     (4)  For any Distribution Date prior to the Distribution Date in December
          2008, the interest rate for the Class MT-PAXIO Interest shall be equal
          to the excess, if any, of (i) the interest rate on the Class LT-PAX
          Interest over (ii) 4.9347704228%. The Class MT-PAXIO Interest shall
          not be entitled to any distributions in respect of Distribution Dates
          after November 2008.

     (5)  The Class MT-R Interest shall represent the sole class of residual
          interest in the Middle Tier REMIC. The Class MT-R Interest will not
          have a principal amount or an interest rate. The Class MT-R Interest
          shall be represented by the Class R Certificate.

     (6)  For any Distribution Date on or prior to the Distribution Date in
          November of 2008, the Class MT-AXIO Interest shall bear interest on a
          notional amount equal to the aggregate Scheduled Principal Balance of
          the AX Mortgage Loans as of the preceding Distribution Date (or, if
          there is no preceding Distribution Date, as of the Cut-off Date). For
          any subsequent Distribution Date, the notional amount of the Class
          MT-AXIO Interest shall be zero.

                                        3
<PAGE>

     (7) For any Distribution Date on or prior to the Distribution Date in
         November 2008, the Class MT-PAXIO Interest shall bear interest on a
         notional amount equal to the aggregate Scheduled Principal Balance of
         the PAX Mortgage Loans as of the preceding Distribution Date (or, if
         there is no preceding Distribution Date, as of the Cut-off Date). For
         any subsequent Distribution Date, the notional amount of the Class
         MT-PAXIO Interest shall be zero.

         An amount of Realized Losses equal to the amount of Realized Losses
allocated to the Class AX Certificates shall be allocated to the Class MT-AXIO
Interest. An amount equal to the amount of all distributions made, or deemed
made under Section 5.02(f) hereof, to the Class AX Certificates shall be
distributed to the Class MT-AXIO Interest.

         All Realized Losses on the AX Mortgage Loans not allocated to the Class
AX Certificates will be allocated to the Class MT-AX Interest. All distributions
in respect of principal, interest and reimbursements of previously allocated
Realized Losses on the Class LT-AX Interest in excess of such amounts
distributed or treated as distributed to the Class MT-AXIO Interest shall be
treated as made in respect of the Class MT-AX Interest.

         An amount of Realized Losses equal to the amount of Realized Losses
allocated to the Class PAX Certificates shall be allocated to the Class MT-PAXIO
Interest. An amount equal to the amount of all distributions made, or deemed
made under Section 5.02(f) hereof, to the Class PAX Certificates shall be
distributed to the Class MT-PAXIO Interest.

         All Realized Losses on the PAX Mortgage Loans not allocated to the
Class PAX Certificates will be allocated to the Class MT-PAX Interest. All
distributions in respect of principal, interest and reimbursements of previously
allocated Realized Losses on the Class LT-PAX Interest in excess of such amounts
distributed or treated as distributed to the Class MT-PAXIO Interest shall be
treated as made in respect of the Class MT-PAX Interest.

         If on any Distribution Date there is an increase in the Certificate
Principal Amount of any Class of Certificates as a result of the proviso in the
definition of Certificate Principal Amount, then there shall be a corresponding
increase in the principal amount of the Middle Tier Regular Interests (other
than the Class MT-AXIO Interest and the Class MT-PAXIO Interest), with the
increase allocated among the Middle Tier Regular Interests in a manner that
reflects whether the Subsequent Recovery was in respect of an AX Mortgage Loan
or a PAX Mortgage Loan.

Upper Tier REMIC

         The following table specifies the Class designation, Certificate
Interest Rate, initial Class Principal Amount or Class Notional Amount, and
minimum denomination (by dollar amount or Percentage Interest) for each Class of
Certificates representing the interests in the Trust Fund created hereunder.
Each Certificate, other than the Class P and Class R Certificates, represents
ownership of a regular interest in the Upper Tier REMIC for purposes of the
REMIC provisions.

                                        4
<PAGE>
<TABLE>
<CAPTION>
                                                            Initial Class
                                                           Principal Amount
                                 Certificate                  or Class                   Minimum
 Class Designation             Interest Rate               Notional Amount            Denomination
 -----------------             -------------               ---------------            ------------
<S>                            <C>                         <C>                        <C>
Class A1                         4.940%(1)                  $598,773,000.00               $25,000
Class A2                         4.920%(2)                  $200,000,000.00               $25,000
Class A3                         4.920%(3)                   $12,000,000.00               $25,000
Class AX                         4.930%(4)                   $17,088,485.00(4)         $1,000,000
Class PAX                        4.930%(5)                    $7,562,882.00(5)         $1,000,000
Class B1                             (6)                     $28,032,000.00              $100,000
Class B2                             (6)                      $8,193,000.00              $100,000
Class B3                             (6)                      $4,743,000.00              $100,000
Class B4                             (6)                      $4,743,000.00              $250,000
Class B5                             (6)                      $3,450,000.00              $250,000
Class B6                             (6)                      $2,590,851.00              $250,000
Class R                              (6)                               $100                  $100
Class P                              (7)                                 (7)                   25%
</TABLE>
___________________________

(1)  For any Distribution Date on or before the Distribution Date in November
     2008, the Certificate Interest Rate for the Class A1 Certificates shall be
     a per annum rate equal to 4.940%, subject, for any Distribution Date with
     respect to which the Adjusted Net WAC is less than 4.9347704228%, to a
     maximum rate equal to the Adjusted Net WAC for such Distribution Date plus
     0.0052295772%. Beginning with the Distribution Date in December 2008, the
     Certificate Interest Rate for the Class A1 Certificates shall be a per
     annum rate equal to the Net WAC for such Distribution Date.

(2)  For any Distribution Date on or before the Distribution Date in November
     2008, the Certificate Interest Rate for the Class A2 Certificates shall be
     a per annum rate equal to 4.920%, subject, for any Distribution Date with
     respect to which the Adjusted Net WAC is less than 4.9347704228%, to a
     maximum rate equal to the Adjusted Net WAC for such Distribution Date minus
     0.0147704228%. Beginning with the Distribution Date in December 2008, the
     Certificate Interest Rate for the Class A2 Certificates shall be a per
     annum rate equal to the Net WAC for such Distribution Date.

(3)  For any Distribution Date on or before the Distribution Date in November
     2008, the Certificate Interest Rate for the Class A3 Certificates shall be
     a per annum rate equal to 4.920%, subject, for any Distribution Date with
     respect to which the Adjusted Net WAC is less than 4.9347704228%, to a
     maximum rate equal to the Adjusted Net WAC for such Distribution Date minus
     0.0147704228%. Beginning with the Distribution Date in December 2008, the
     Certificate Interest Rate for the Class A3 Certificates shall be a per
     annum rate equal to the Net WAC for such Distribution Date.

(4)  The Class AX Certificates are Notional Certificates. For any Distribution
     Date on or prior to the Distribution Date in November 2008, the Certificate
     Interest Rate on the Class AX Certificates shall be a per annum rate equal
     to 4.930%. For any Distribution Date prior to the Distribution Date in
     December 2008, the Class Notional Amount of the Class AX Certificates will
     be equal to the product of (i) a fraction, the numerator of which is the
     weighted average of the Net Mortgage Rates of the AX Mortgage Loans at the
     beginning of the related Due Period based on their Scheduled Principal
     Balances as of the preceding Distribution Date (or, in the case of the
     first Distribution Date, as of the Cut-off Date) minus 4.9347704228% and
     the denominator of which is 4.930% and (ii) the aggregate Scheduled
     Principal Balance of the AX Mortgage Loans as of the preceding Distribution
     Date (or, in the case of the first Distribution Date, as of the Cut-off
     Date). Beginning with the Distribution Date in December 2008, the Class AX
     Certificates shall have a Class Notional Amount of zero.

                                       5
<PAGE>

(5)  The Class PAX Certificates are Notional Certificates. For any Distribution
     Date on or prior to the Distribution Date in November 2008, the Certificate
     Interest Rate on the Class PAX Certificates shall be a per annum rate equal
     to 4.930%. For any Distribution Date prior to the Distribution Date in
     December 2008, the Class Notional Amount of the Class PAX Certificates will
     be equal to the product of (i) a fraction, the numerator of which is the
     weighted average of the Net Mortgage Rates of the PAX Mortgage Loans at the
     beginning of the related Due Period based on their Scheduled Principal
     Balances as of the preceding Distribution Date (or, in the case of the
     first Distribution Date, as of the Cut-off Date) minus 4.9347704228% and
     the denominator of which is 4.930% and (ii) the aggregate Scheduled
     Principal Balance of the PAX Mortgage Loans as of the preceding
     Distribution Date. Beginning with the Distribution Date in December 2008,
     the Class PAX Certificates shall have a Class Notional Amount of zero.

(6)  For any Distribution Date on or prior to November 2008, the Certificate
     Interest Rate for the Class R, Class B1, Class B2, Class B3, Class B4,
     Class B5 and Class B6 Certificates shall be a per annum rate equal to the
     lesser of (i) 4.9347704228% and (ii) the Adjusted Net WAC. Beginning with
     the Distribution Date in December 2008, the Interest Rate for the Class R,
     Class B1, Class B2, Class B3, Class B4, Class B5 and Class B6 Certificates
     will be equal to the Net WAC for such Distribution Date.

(7)  The Class P Certificates will be entitled to receive Prepayment Penalty
     Amounts paid by borrowers upon voluntary full or partial prepayment of the
     Mortgage Loans. Class P Certificates will be issued in definitive, fully
     registered form.

         As of the Cut-off Date, the Mortgage Loans had an aggregate Scheduled
Principal Balance of $862,524,951.48.

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

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01. Definitions.

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

         Accepted Servicing Practices: With respect to any Mortgage Loan, as
applicable, either (x) those customary mortgage servicing practices of prudent
mortgage servicing institutions that service or master service mortgage loans of
the same type and quality as such Mortgage Loan in the jurisdiction where the
related Mortgaged Property is located, to the extent applicable to the Trustee
or the Master Servicer or (y) as provided in the applicable Servicing Agreement,
to the extent applicable to the related Servicer.

         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.

         Accretion Directed Certificate: Not applicable.

         Accretion Termination Date: Not applicable.

         Accrual Amount: As to any Class of Accrual Certificates and each
Distribution Date through the Credit Support Depletion Date, the sum of (x) any
amount of Accrued Certificate Interest allocable to such Class pursuant to
Section 5.02(a)(ii) on such Distribution Date and (y) any Interest Shortfall
allocable to such Class pursuant to Section 5.02(a)(iii) on such Distribution
Date. As to any Class of Accrual Certificates and each Distribution Date after
the Credit Support Depletion Date, zero.

                                        6
<PAGE>

         Accrual Certificate: Not applicable.

         Accrual Component: Not applicable.

         Accrual Period: With respect to any Distribution Date and any Class of
Certificates, Lower Tier Interest and Middle Tier Interest, the one-month period
beginning immediately following the end of the preceding Accrual Period (or from
the Cut-off Date, in the case of the first Accrual Period) and ending on the
last day of the month immediately preceding the month in which such Distribution
Date occurs.

         Accrued Certificate Interest: As to any Class of Certificates (other
than the Class P Certificates) and any Distribution Date, the product of the
Certificate Interest Rate for such Class of Certificates and the Class Principal
Amount (or Class Notional Amount) of such Class of Certificates immediately
preceding such Distribution Date, as reduced by such Class's share of the
interest portion of (i) any Excess Losses for such Distribution Date and (ii)
any Relief Act Reduction for the related Mortgage Pool or Mortgage Pools for
such Distribution Date, in each case allocable among the Certificates pro rata
based on the Accrued Certificate Interest otherwise distributable thereto.
Interest shall be calculated on the basis of a 360-day year consisting of twelve
30-day months. The interest shall accrue during the related Accrual Period.

         Act: As defined in Section 3.03(c).

         Additional Collateral: Not applicable.

         Additional Collateral Servicing Agreement: Not applicable.

         Adjustable Rate Mortgage Loan: Any Mortgage Loan as to which the
related Mortgage Note provides for the adjustment of the Mortgage Rate.

         Adjusted Net WAC: For each Distribution Date will be the weighted
average, based on their respective principal balances, of the interest rates on
(i) an obligation having a principal balance equal to the Scheduled Principal
Balances of the PAX Mortgage Loans as of the preceding Distribution Date (or, in
the case of the first Distribution Date, as of the Cut-off Date) and bearing
interest at a rate equal to the lesser of (x) 4.9347704228% or (y) the weighted
average of the Net Mortgage Rates of the PAX Mortgage Loans at the beginning of
the related Due Period based on their Scheduled Principal Balances as of the
preceding Distribution Date (or, in the case of the first Distribution Date, as
of the Cut-off Date) and (ii) an obligation having a principal balance equal to
the aggregate principal balance of AX Mortgage Loans as of the preceding
Distribution Date (or, in the case of the first Distribution Date, as of the
Cut-off Date) and bearing interest at a rate equal to the lesser of (x)
4.9347704228% or (y) the weighted average of the Net Mortgage Rates of the AX
Mortgage Loans at the beginning of the related Due Period based on their
Scheduled Principal Balances as of the preceding Distribution Date (or, in the
case of the first Distribution Date, as of the Cut-off Date).

                                        7
<PAGE>

         Advance: An advance of the aggregate of payments of principal and
interest (net of the Retained Interest Rate, the Master Servicing Fee and the
applicable Servicing Fee) on one or more Mortgage Loans that were due on the Due
Date in the related Due Period and not received as of the close of business on
the related Determination Date, required to be made by or on behalf of the
Master Servicer and the related Servicer (or by the Trustee solely in its
capacity as successor master servicer in accordance with Section 6.14) pursuant
to Section 5.04.

         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 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 Master Servicing Compensation: Not applicable.

         Aggregate Principal Balance: The aggregate of the Scheduled Principal
Balances for all Mortgage Loans at any date of determination.

         Aggregate Subordinate Percentage: Not applicable.

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

         Agreement: This Trust Agreement and all amendments and supplements
hereto.

         AP Percentage: Not applicable.

         AP Principal Distribution Amount: Not applicable.

         Apportioned Principal Balance: Not applicable.

         Appraised Value: With respect to any Mortgage Loan, the amount set
forth in an appraisal made in connection with the origination of such Mortgage
Loan as the value of the related Mortgaged Property.

         Associated Mortgage Loan: Not applicable.

         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.

         Aurora: Aurora Loan Services Inc. or its successor in interest, in its
capacity as a Servicer.

                                        8
<PAGE>

         Authenticating Agent: Any authenticating agent appointed by the Trustee
pursuant to Section 6.10.

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

         Available Distribution Amount: As to any Distribution Date, the sum of
the following amounts:

               (i) the total amount of all cash received by the Master Servicer
         through the Remittance Date applicable to each Servicer and deposited
         by the Master Servicer by the Deposit Date for such Distribution Date
         on the Mortgage Loans of such Mortgage Pool (including proceeds of any
         Insurance Policy and any other credit support relating to such Mortgage
         Loans and including any Subsequent Recovery), plus all Advances made by
         the Master Servicer or any Servicer (or the Trustee, in its capacity as
         successor Master Servicer) for such Distribution Date, any Compensating
         Interest Payment for such date and Mortgage Pool, any amounts received
         with respect to any Additional Collateral, if any, or any Surety Bond,
         if any, related thereto and any amounts paid by any Servicer in respect
         of Prepayment Interest Shortfalls in respect of the related Mortgage
         Loans for such date, but not including:

                   (A) all amounts distributed pursuant to Section 5.02 on prior
               Distribution Dates;

                   (B) all Scheduled Payments of principal and interest
               collected but due on a date subsequent to the related Due Period;

                   (C) all Principal Prepayments received or identified by the
               applicable Servicer after the applicable Prepayment Period
               (together with any interest payments received with such
               prepayments to the extent that they represent the payment of
               interest accrued on the related Mortgage Loans for the period
               subsequent to the applicable Prepayment Period);

                   (D) any other unscheduled collection, including Net
               Liquidation Proceeds and Insurance Proceeds, received by the
               Master Servicer after the applicable Prepayment Period;

                   (E) all fees and amounts due or reimbursable to the Master
               Servicer, the Trustee (other than the Trustee Fee), the Custodian
               or a Servicer pursuant to the terms of this Agreement, the
               applicable Custodial Agreement or the applicable Servicing
               Agreement;

                   (F) any Retained Interest;

                   (G) any increase since the Cut-off Date in the amount of
               interest to be paid on certain Mortgage Loans based upon the loss
               of benefits of an Employee/Director Interest Rate Reduction
               Agreement;

                                        9
<PAGE>

                   (H) Prepayment Interest Excess, to the extent not offset by
               Prepayment Interest Shortfalls; and

               (ii) any other payment made by the Master Servicer, any Servicer,
         the Trustee, the Seller, the Depositor, or any other Person with
         respect to such Distribution Date (including the Purchase Price with
         respect to any Mortgage Loan purchased by the Seller, the Depositor or
         any other Person).

         AX Mortgage Loans: The Mortgage Loans other than the PAX Mortgage Loans
and are listed on Schedule C hereto.

         Balloon Mortgage Loan: Not applicable.

         Balloon Payment: Not applicable.

         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 United States Bankruptcy Code of 1986,
as amended, or any other similar state laws.

         Bankruptcy Coverage Termination Date: The Distribution Date on which
the Bankruptcy Loss Limit has been reduced to zero (or less than zero).

         Bankruptcy Loss Limit: As of the Cut-off Date, $286,588, which amount
shall be reduced from time to time by the amount of Bankruptcy Losses that are
allocated to the Certificates.

         Bankruptcy Losses: With respect to the Mortgage Loans, losses that are
incurred as a result of Deficient Valuations and any reduction, in a bankruptcy
proceeding, of the amount of the Scheduled Payment on a Mortgage Loan other than
as a result of a Deficient Valuation.

         Basis Risk Shortfall: For any Distribution Date on or prior to the
Distribution Date in November 2008, in the case of the Class A1, Class A2, Class
A3, Class B1, Class B2, Class B3, Class B4, Class B5 and Class B6 Certificates,
the excess of what the Accrued Certificate Interest on such Class would have
been had the Adjusted Net WAC not been less than 4.9347704228% over what the
Accrued Certificate Interest was on such Class for such Distribution Date.

         Blanket Mortgage: Not applicable.

         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
condition 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." As of the
Closing Date, all of the Classes of Certificates listed in the second table of
the Preliminary Statement, other than the Class R and Class P Certificates, will
constitute Book-Entry Certificates.

                                       10
<PAGE>

         Business Day: Any day other than (i) a Saturday or a Sunday, (ii) a day
on which banking institutions in Colorado or New York or, if other than Colorado
or New York, the city in which the Corporate Trust Office of the Trustee is
located, or (iii) with respect to any Remittance Date or any Servicer reporting
date, the States specified in the definition of "Business Day" in the applicable
Servicing Agreement, are authorized or obligated by law or executive order to be
closed.

         Certificate: Any one of the certificates signed and countersigned by
the Trustee in substantially the forms attached hereto as Exhibit A.

         Certificate Account: The account maintained by the Trustee in
accordance with the provisions of Section 4.04.

         Certificate Group: Not applicable.

         Certificate Interest Rate: With respect to each Class of Certificates
(other than the Class P Certificates), the applicable per annum rate specified
or determined as provided in the Preliminary Statement hereto.

         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 Principal Amount: With respect to any Certificate other
than a Notional Certificate and the Class P Certificates, at the time of
determination, the maximum specified dollar amount of principal to which the
Holder thereof is then entitled hereunder, such amount being equal to the
initial principal amount set forth on the face of such Certificate (plus, in the
case of any Negative Amortization Certificate, any Deferred Interest allocated
thereto on previous Distribution Dates, and plus, in the case of any Accrual
Certificate, its Percentage Interest of any related Accrual Amount for each
previous Distribution Date), less the amount of all principal distributions
previously made with respect to such Certificate, and all Realized Losses
allocated to such Certificate and, in the case of a Subordinate Certificate, any
Subordinate Certificate Writedown Amount allocated to such Certificates;
provided, however, that on any Distribution Date on which a Subsequent Recovery
is distributed, the Certificate Principal Amount of any Class of Certificates
then outstanding for which any Realized Loss or any Subordinate Certificate
Writedown Amount has been applied will be increased, in order of seniority, by
an amount equal to the lesser of (i) the amount the Class of Certificates has
been reduced by any Realized Losses or any Subordinate Certificate Writedown
Amount which have not been previously offset by any Subsequent Recovery pursuant
to this proviso and (ii) the total amount of any Subsequent Recovery distributed
on such date to Certificateholders (reduced (x) by the amount of the increase in
the Certificate Principal Amount of any more senior Classes of Certificates
pursuant to this proviso on such Distribution Date and (y) to reflect the amount
of increases in the Certificate Principal Amount of any pari passu Class of
Certificates pursuant to this proviso on such Distribution Date). For purposes
of Article V hereof, unless specifically provided to the contrary, Certificate
Principal Amounts shall be determined as of the close of business of the
immediately preceding Distribution Date, after giving effect to all
distributions made on such date. Notional Certificates are issued without
Certificate Principal Amount.

                                       11
<PAGE>

         Certificate Register and Certificate Registrar: The register maintained
and the registrar appointed pursuant to Section 3.02.

         Class: All Certificates bearing the same class designation, and, in the
case of the Lower Tier REMIC and the Middle Tier REMIC, all Interests bearing
the same designation.

         Class AP Certificate: None.

         Class AP Deferred Amount: Not applicable.

         Class B Certificate: Any Class B1, Class B2, Class B3, Class B4, Class
B5 or Class B6 Certificate.

         Class LT-R Interest: The sole residual interest in the Lower Tier
REMIC.

         Class MT-R Interest: The sole residual interest in the Middle Tier
REMIC.

         Class Notional Amount: With respect to each Class of Notional
Certificates the applicable class notional amount calculated as provided in the
Preliminary Statement hereto.

         Class Percentage: With respect to each Class of Subordinate
Certificates, for each Distribution Date, the percentage obtained by dividing
the Class Principal Amount of such Class immediately prior to such Distribution
Date by the sum of the Class Principal Amounts of all Certificates immediately
prior to such date.

         Class Principal Amount: With respect to each Class of Certificates
other than any Class of Notional Certificates, the aggregate of the Certificate
Principal Amounts of all Certificates of such Class at the date of
determination. With respect to each Class of Notional Certificates, zero.

         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.

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

         Clearstream: Clearstream Banking, societe anonyme, and any successor
thereto.

         Closing Date: February 27, 2004.

                                       12
<PAGE>

         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.

         Collection Account: A separate account established and maintained by
the Master Servicer pursuant to Section 4.01.

         Compensating Interest Payment: With respect to any Distribution Date,
an amount equal to the aggregate amount of any Prepayment Interest Shortfalls
required to be paid by the Servicers with respect to such Distribution Date. The
Master Servicer shall not be responsible to make any Compensating Interest
Payment.

         Component: Not applicable.

         Component Certificate: Not applicable.

         Component Interest Rate: Not applicable.

         Component Notional Amount: Not applicable.

         Component Principal Amount: Not applicable.

         Component Writedown Amount: Not applicable.

         Conventional Loan: Not applicable.

         Converted Mortgage Loan: Not applicable.

         Convertible Mortgage Loan: Not applicable.

         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: Any Mortgage Loan secured by Cooperative Shares and a
Proprietary Lease.

         Cooperative Loan Documents: As to any Cooperative Loan, (i) the
Cooperative Shares, together with a stock power in blank; (ii) the original
executed Security Agreement and the assignment of the Security Agreement
endorsed in blank; (iii) the original executed Proprietary Lease and the
assignment of the Proprietary Lease endorsed in blank; (iv) the original
executed Recognition Agreement and the assignment of the Recognition Agreement
(or a blanket assignment of all Recognition Agreements) endorsed in blank; (v)
the executed UCC-1 financing statement with evidence of recording thereon, which
has been filed in all places required to perfect the security interest in the
Cooperative Shares and the Proprietary Lease; and (vi) executed UCC-3 financing
statements (or copies thereof) or other appropriate UCC financing statements
required by state law, evidencing a complete and unbroken line from the
mortgagee to the Trustee with evidence of recording thereon (or in a form
suitable for recordation).

                                       13
<PAGE>

         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 Cooperative Shares of the Cooperative Corporation.

         Cooperative Shares: Shares issued by a Cooperative Corporation.

         Cooperative Unit: A single-family dwelling located in a Cooperative
Property.

         Corporate Trust Office: The principal corporate trust office of the
Trustee at which, at any particular time, its corporate trust business shall be
administered, which office at the date hereof is located at JPMorgan Chase Bank,
4 New York Plaza, 6th Floor, New York, New York 10004-2477, Attention:
Institutional Trust Services/Global Debt (SARM 2004-3AC).

         Corresponding Certificates: Not applicable.

         Corresponding Class: Not applicable.

         Corresponding Component: None.

         Credit Score: With respect to any Mortgage Loan, a numerical assessment
of default risk with respect to the Mortgagor under such Mortgage Loan,
determined on the basis of a methodology developed by Fair, Isaac & Co., Inc.

         Credit Support Depletion Date: The Distribution Date on which, after
giving effect to all distributions on such date, the aggregate Certificate
Principal Amount of the Subordinate Certificates is reduced to zero.

         Credit Support Percentage: As to any Class of Subordinate Certificates
and any Distribution Date, the sum of the Class Percentages of all Classes of
Certificates that rank lower in priority than such Class.

         Custodial Agreement: Each custodial agreement attached as Exhibit K
hereto, and any custodial agreement subsequently executed by the Trustee
substantially in the form thereof.

         Custodian: Each custodian appointed by the Trustee pursuant to a
Custodial Agreement, and any successor thereto. The initial Custodians are
LaSalle Bank National Association and U.S. Bank, National Association.

         Cut-off Date: February 1, 2004.

         Cut-off Date Aggregate Principal Balance: Not applicable.

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
of the Scheduled Payment that the related Mortgagor is obligated to pay on any
Due Date as a result of any proceeding under Bankruptcy law or any similar
proceeding.

                                       14
<PAGE>

         Deferred Interest: With respect to any Class of Negative Amortization
Certificates and any Distribution Date, the lesser of (x) the applicable
Interest Distribution Amount for such date (without giving effect to any
Deferred Interest) and (y) the aggregate Mortgage Loan Negative Amortization, if
any, for the related Due Period.

         Deficient Valuation: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then outstanding indebtedness under such Mortgage Loan, which valuation
results from a proceeding under Bankruptcy law or any similar proceeding.

         Definitive Certificate: A Certificate of any Class issued in
definitive, fully registered, certificated form.

         Deleted Mortgage Loan: A Mortgage Loan that is repurchased from the
Trust Fund pursuant to the terms hereof or as to which one or more Qualifying
Substitute Mortgage Loans are substituted therefor.

         Deposit Date: With respect to each Distribution Date, the Business Day
immediately preceding such Distribution Date.

         Depositor: Structured Asset Securities Corporation, a Delaware
corporation having its principal place of business in New York, or its
successors in interest.

         Designated Rate: Not applicable.

         Determination Date: With respect to each Distribution Date, the
Remittance Date immediately preceding such Distribution Date.

         Discount Mortgage Loan: Not applicable.

         Disqualified Organization: Either (i) the United States, (ii) any state
or political subdivision thereof, (iii) any foreign government, (iv) any
international organization, (v) any agency or instrumentality of any of the
foregoing, (vi) any tax-exempt organization (other than a cooperative described
in section 521 of the Code) which is exempt from the tax imposed by Chapter 1 of
the Code unless such organization is subject to the tax imposed by section 511
of the Code, (vii) any organization described in section 1381(a)(2)(C) of the
Code, (viii) any "electing large partnership" described in section 775 of the
Code, or (ix) any other entity designated as a Disqualified Organization by
relevant legislation amending the REMIC Provisions and in effect at or proposed
to be effective as of the time of the determination. In addition, a corporation
will not be treated as an instrumentality of the United States or of any state
or political subdivision thereof if all of its activities are subject to tax
and, with the exception of the Federal Home Loan Mortgage Corporation, a
majority of its board of directors is not selected by such governmental unit.

         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 March 2004.

                                       15
<PAGE>

         Due Date: With respect to any Mortgage Loan, the date on which a
Scheduled Payment is due under the related Mortgage Note.

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

         Eligible Account: Either (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company acceptable to
the Rating Agencies or (ii) an account or accounts the deposits in which are
insured by the FDIC to the limits established by such corporation, provided that
any such deposits not so insured shall be maintained in an account at a
depository institution or trust company whose commercial paper or other short
term debt obligations (or, in the case of a depository institution or trust
company which is the principal subsidiary of a holding company, the commercial
paper or other short term debt or deposit obligations of such holding company or
depository institution, as the case may be) have been rated by each Rating
Agency in its highest short-term rating category, or (iii) a segregated trust
account or accounts (which shall be a "special deposit account") maintained with
the Trustee or any other federal or state chartered depository institution or
trust company, acting in its fiduciary capacity, in a manner acceptable to the
Trustee and the Rating Agencies. Eligible Accounts may bear interest.

         Eligible Investments: Any one or more of the following obligations or
securities:

               (iii) direct obligations of, and obligations fully guaranteed as
         to timely payment of principal and interest by, the United States of
         America or any agency or instrumentality of the United States of
         America the obligations of which are backed by the full faith and
         credit of the United States of America ("Direct Obligations");

               (iv) federal funds, or demand and time deposits in, certificates
         of deposits of, or bankers' acceptances issued by, any depository
         institution or trust company (including U.S. subsidiaries of foreign
         depositories and the Trustee or any agent of the Trustee, acting in its
         respective commercial capacity) incorporated or organized under the
         laws of the United States of America or any state thereof and subject
         to supervision and examination by federal or state banking authorities,
         so long as at the time of investment or the contractual commitment
         providing for such investment the commercial paper or other short-term
         debt obligations of such depository institution or trust company (or,
         in the case of a depository institution or trust company which is the
         principal subsidiary of a holding company, the commercial paper or
         other short-term debt or deposit obligations of such holding company or
         deposit institution, as the case may be) have been rated by each Rating
         Agency in its highest short-term rating category or one of its two
         highest long-term rating categories;

               (v) repurchase agreements collateralized by Direct Obligations or
         securities guaranteed by GNMA, FNMA or FHLMC with any registered
         broker/dealer subject to Securities Investors' Protection Corporation
         jurisdiction or any commercial bank insured by the FDIC, if such
         broker/dealer or bank has an uninsured, unsecured and unguaranteed
         obligation rated by each Rating Agency in its highest short-term rating
         category;

                                       16
<PAGE>

               (vi) securities bearing interest or sold at a discount issued by
         any corporation incorporated under the laws of the United States of
         America or any state thereof which have a credit rating from each
         Rating Agency, at the time of investment or the contractual commitment
         providing for such investment, at least equal to one of the two highest
         short-term credit ratings of each Rating Agency; provided, however,
         that securities issued by any particular corporation will not be
         Eligible Investments to the extent that investment therein will cause
         the then outstanding principal amount of securities issued by such
         corporation and held as part of the Trust Fund to exceed 20% of the sum
         of the Aggregate Principal Balance and the aggregate principal amount
         of all Eligible Investments in the Certificate Account; provided,
         further, that such securities will not be Eligible Investments if they
         are published as being under review with negative implications from
         either Rating Agency;

               (vii) commercial paper (including both non interest-bearing
         discount obligations and interest-bearing obligations payable on demand
         or on a specified date not more than 180 days after the date of
         issuance thereof) rated by each Rating Agency in its highest short-term
         ratings;

               (viii) a Qualified GIC;

               (ix) certificates or receipts representing direct ownership
         interests in future interest or principal payments on obligations of
         the United States of America or its agencies or instrumentalities
         (which obligations are backed by the full faith and credit of the
         United States of America) held by a custodian in safekeeping on behalf
         of the holders of such receipts; and

               (x) any other demand, money market fund, common trust fund or
         time deposit or obligation, or interest-bearing or other security or
         investment, (A) rated in the highest rating category by each Rating
         Agency (if rated by such Rating Agency) or (B) that would not adversely
         affect the then current rating by either Rating Agency of any of the
         Certificates. Such investments in this subsection (viii) may include
         money market mutual funds or common trust funds, including, without
         limitation, the J.P. Morgan Prime Money Market Fund or any other fund
         for which JPMorgan Chase Bank, the Trustee or an affiliate thereof
         serves as an investment advisor, administrator, shareholder servicing
         agent, and/or custodian or subcustodian, notwithstanding that (i)
         JPMorgan Chase Bank or an affiliate thereof charges and collects fees
         and expenses from such funds for services rendered, (ii) JPMorgan Chase
         Bank or an affiliate thereof charges and collects fees and expenses for
         services rendered pursuant to this Agreement, and (iii) services
         performed for such funds and pursuant to this Agreement may converge at
         any time. The Trustee specifically authorizes JPMorgan Chase Bank or an
         affiliate thereof to charge and collect from the Trust Fund such fees
         as are collected from all investors in such funds for services rendered
         to such funds (but not to exceed investment earnings thereon);

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

                                       17
<PAGE>

         Employee Mortgage Loan: Each Mortgage Loan listed on Schedule B hereto.

         ERISA: The Employee Retirement Income Security Act of 1974, as amended,
and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Labor regulations issued pursuant
thereto in temporary or final form.

         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: Any Class R, Class B4, Class B5 or Class
B6 Certificate or any Certificate with a rating below the lowest applicable
rating permitted under the Underwriter's Exemption.

         Escrow Account: Any account established and maintained by a Servicer
pursuant to the applicable Servicing Agreement.

         Euroclear: Euroclear S.A./N.V., as operator of the Euroclear System.

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

         Excess Loss: Any Bankruptcy Loss, or portion thereof, in excess of the
then-applicable Bankruptcy Loss Limit, any Fraud Loss, or portion thereof, in
excess of the then-applicable Fraud Loss Limit, and any Special Hazard Loss, or
portion thereof, in excess of the then-applicable Special Hazard Loss Limit.

         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 Scheduled Distribution Date: For the Certificates (other than the
Class AX and Class PAX Certificates) is the Distribution Date in March 2034; and
for the Class AX and Class PAX Certificates is the Distribution Date in November
2008.

         Financial Intermediary: A broker, dealer, bank or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Clearing Agency Participant.

         Fitch: Not applicable.

                                       18
<PAGE>

         FNMA: 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.

         Fraud Loss: Any Realized Loss on a Liquidated Mortgage Loan sustained
by reason of a default arising from fraud, dishonesty or misrepresentation in
connection with the related Mortgage Loan, as reported by the applicable
Servicer to the Master Servicer.

         Fraud Loss Limit: With respect to any Distribution Date (x) prior to
the first anniversary of the Cut-off Date, $17,250,499 less the aggregate of
Fraud Losses since the Cut-off Date, from the first to the fifth anniversary of
the Cut-off Date, an amount equal to (1) the lesser of (a) the Fraud Loss Limit
as of the most recent anniversary of the Cut-off Date and (b) 1% of the
aggregate principal balance of all the Mortgage Loans as of the most recent
anniversary of the Cut-off Date less (2) the aggregate of Fraud Losses since the
most recent anniversary of the Cut-off Date. On or after the fifth anniversary
of the Cut-off Date, the Fraud Loss Limit shall be zero.

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

         GNMA: The Government National Mortgage Association, a wholly owned
corporate instrumentality of the United States within HUD.

         Grantor Trust: Grantor Trust I or any grantor trust described in
Section 10.01(l) hereof.

         Grantor Trust I: That certain "grantor trust" (within the meaning of
the Grantor Trust Provisions) consisting of the Grantor Trust I Assets.

         Grantor Trust I Assets: Any Prepayment Penalty Amounts collected with
respect to the Mortgage Pool.

         Grantor Trust Provisions: Subpart E of Subchapter J of the Code,
including Treasury regulation section 301.7701-4(c)(2).

         Group 1: Not applicable.

         Group 1 Certificate: Not applicable.

         Group 2: Not applicable.

         Group 2 Certificate: Not applicable.

         Holder or Certificateholder: 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, 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 shall be protected in relying upon any such consent, only Certificates
which a Responsible Officer of the Trustee knows to be so owned shall be
disregarded. The Trustee may request and conclusively rely on certifications by
the Depositor, the Master Servicer and any Servicer in determining whether any
Certificates are registered to an Affiliate of the Depositor, the Master
Servicer or such Servicer.

                                       19
<PAGE>

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

         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 LIBOR Rate: Not applicable.

         Initial Net Mortgage Rate: Not applicable.

         Initial Senior Enhancement Percentage: 6.00%.

         Insurance Policy: Any Primary Mortgage Insurance Policy and any
standard hazard insurance policy, flood insurance policy, earthquake insurance
policy or title insurance policy relating to the Mortgage Loans or the Mortgaged
Properties, to be in effect as of the Closing Date or thereafter during the term
of this Agreement.

         Insurance Proceeds: Amounts paid by the insurer under any Insurance
Policy, other than amounts (i) to cover expenses incurred by or on behalf of the
applicable Servicer in connection with procuring such proceeds, (ii) to be
applied to restoration or repair of the related Mortgaged Property, or (iii)
required to be paid over to the Mortgagor pursuant to law or the related
Mortgage Note.

         Interest Distribution Amount: Not applicable.

         Interest Shortfall: With respect to any Class of Certificates and any
Distribution Date, any Accrued Certificate Interest not distributed (or added to
principal) with respect to any previous Distribution Date, other than any Net
Prepayment Interest Shortfalls.

         Intervening Assignments: The original intervening assignments of the
Mortgage, notice of transfer or equivalent instrument.

         Latest Possible Maturity Date: The Distribution Date in March 2034.

         Lehman Brothers Holdings: Lehman Brothers Holdings Inc., or any
successor in interest.

         LIBOR: Not applicable.

                                       20
<PAGE>

         LIBOR Certificate: Not applicable.

         LIBOR Component: Not applicable.

         LIBOR Determination Date: Not applicable.

         Liquidated Mortgage Loan: Any defaulted Mortgage Loan as to which the
Master Servicer or the applicable Servicer has determined that all amounts that
it expects to recover on behalf of the Trust Fund from or on account of such
Mortgage Loan have been recovered.

         Liquidation Expenses: Expenses that are incurred by the Master Servicer
or any Servicer in connection with the liquidation of any defaulted Mortgage
Loan and are not recoverable under the applicable Primary Mortgage Insurance
Policy, including, without limitation, foreclosure and rehabilitation expenses,
legal expenses and unreimbursed amounts expended pursuant to Sections 9.06, 9.16
or 9.22.

         Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale or otherwise, or the sale of the
related Mortgaged Property (including any Additional Collateral) if the
Mortgaged Property (including such Additional Collateral) is acquired in
satisfaction of the Mortgage Loan, including any amounts remaining in the
related Escrow Account.

         Loan-to-Value Ratio: With respect to any Mortgage Loan, the ratio of
the principal balance of such Mortgage Loan at origination, or such other date
as is specified, to the Original Value thereof.

         London Business Day: Not applicable.

         Lower Tier Interest: Any one of the classes of interests in the Lower
Tier REMIC described in the Preliminary Statement hereto.

         Lower Tier Regular Interest: Any Lower Tier Interest other than the
LT-R Interest.

         Lower Tier REMIC: The Lower Tier REMIC as described in the Preliminary
Statement hereto.

         Maintenance: With respect to any Cooperative Unit, the rent or fee paid
by the Mortgagor to the Cooperative Corporation pursuant to the Proprietary
Lease.

         Master Servicer: Aurora Loan Services Inc., or any successor in
interest, or if any successor master servicer shall be appointed as herein
provided, then such successor master servicer.

         Master Servicing Fee: As to any Distribution Date and each Mortgage
Loan, an amount equal to the product of the Master Servicing Fee Rate and the
Scheduled Principal Balance of such Mortgage Loan as of the first day of the
related Due Period. The Master Servicing Fee for any Mortgage Loan shall be
payable in respect of any Distribution Date solely from the interest portion of
the Scheduled Payment or other payment or recovery with respect to such Mortgage
Loan.

                                       21
<PAGE>

         Master Servicing Fee Rate: With respect to each Mortgage Loan (other
than any Participation), 0.000% per annum.

         Material Defect: As defined in Section 2.02(c) hereof.

         MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
Corporation, or any successor in interest thereto.

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

         Middle Tier Interest: Any one of the classes of interests in the Middle
Tier REMIC described in the Preliminary Statement hereto.

         Middle Tier Regular Interest: Any Middle Tier Interest other than the
MT-R Interest.

         Middle Tier REMIC: The Middle Tier REMIC as described in the
Preliminary Statement hereto.

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

         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.

         Mortgage 100SM Loan: Not applicable.

         Mortgage File: The mortgage documents listed in Section 2.01(b)
pertaining to a particular Mortgage Loan required to be delivered to the Trustee
or a Custodian pursuant to this 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 or Section 2.05,
including without limitation, each Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time. In addition, as used herein the term
"Mortgage Loan" includes the Participations, except where otherwise specified or
where the context requires otherwise.

         Mortgage Loan Sale Agreement: The agreement, dated as of February 1,
2004, for the sale of certain Mortgage Loans by Lehman Brothers Holdings to the
Depositor.

         Mortgage Loan Schedule: The schedule attached hereto as Schedule A,
which shall identify each Mortgage Loan, as such schedule may be amended from
time to time to reflect the addition of Mortgage Loans to, or the deletion of
Mortgage Loans from, the Trust Fund. The Depositor shall be responsible for
providing the Trustee and the Master Servicer with all amendments to the
Mortgage Loan Schedule.

                                       22
<PAGE>

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

         Mortgage Pool: The aggregate of the Mortgage Loans identified on the
Mortgage Loan Schedule as being included in the Trust Fund.

         Mortgage Rate: As to any Mortgage Loan, the per annum rate at which
interest accrues on such Mortgage Loan.

         Mortgaged Property: Either of (x) the fee simple interest in real
property, together with improvements thereto including any exterior improvements
to be completed within 120 days of disbursement of the related Mortgage Loan
proceeds, or (y) in the case of a Cooperative Loan, the related Cooperative
Shares and Proprietary Lease, securing the indebtedness of the Mortgagor under
the related Mortgage Loan.

         Mortgagor: The obligor on a Mortgage Note.

         Negative Amortization Certificate:  None.

         Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan,
the related Liquidation Proceeds net of unreimbursed expenses incurred in
connection with liquidation or foreclosure and unreimbursed Advances, Servicing
Advances and Servicing Fees received and retained in connection with the
liquidation of such Mortgage Loan.

         Net Mortgage Rate: With respect to any Mortgage Loan, the Mortgage Rate
thereof reduced by the sum of the Trustee Fee Rate, the Master Servicing Fee
Rate, the applicable Servicing Fee Rate and the Retained Interest Rate (if
applicable).

         Net Prepayment Interest Shortfall: With respect to any Distribution
Date, the excess, if any, of any Prepayment Interest Shortfalls for such date
over the sum of any amounts paid by the applicable Servicer with respect to such
shortfalls and any amount that is required to be paid by the Master Servicer in
respect of such shortfalls pursuant to this Agreement.

         Net WAC: With respect to any Distribution Date, the weighted average of
Net Mortgage Rates of the Mortgage Loans at the beginning of the related Due
Period, weighted on the basis of their Scheduled Principal Balances as of the
preceding Distribution Date or, in the case of the first Distribution Date, the
Cut-off Date.

         Non-AP Percentage: Not applicable.

         Non-AP Senior Certificate: Not applicable.

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

         Non-Discount Mortgage Loan: Not applicable.

                                       23
<PAGE>

         Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage
Loan.

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

         Non-U.S. Person: Any person other than (i) a citizen or resident of the
United States; (ii) a corporation (or entity treated as a corporation for tax
purposes) created or organized in the United States or under the laws of the
United States or of any state thereof, including, for this purpose, the District
of Columbia; (iii) a partnership (or entity treated as a partnership for tax
purposes) organized in the United States or under the laws of the United States
or of any state thereof, including, for this purpose, the District of Columbia
(unless provided otherwise by future Treasury regulations); (iv) an estate whose
income is includible in gross income for United States income tax purposes
regardless of its source; or (v) 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 U.S. Persons have authority to control all substantial decisions of
the trust. Notwithstanding the last clause of the preceding sentence, to the
extent provided in Treasury regulations, certain trusts in existence on August
20, 1996, and treated as U.S. Persons prior to such date, may elect to continue
to be U.S. Persons.

         Notional Amount: With respect to any Notional Certificate and any
Distribution Date, such Certificate's Percentage Interest of the Class Notional
Amount of such Class of Certificates for such Distribution Date.

         Notional Certificate: Any Class AX or Class PAX Certificate.

         Notional Component: None.

         Offering Document: Either of the private placement memorandum dated
February 24, 2004 relating to the Class B4, Class B5 and Class B6 Certificates,
or the Prospectus.

         Officer's Certificate: A certificate signed by the Chairman of the
Board, any Vice Chairman, the President, any Vice President or any Assistant
Vice President of a Person, and in each case delivered to the Trustee.

         Opinion of Counsel: A written opinion of counsel, reasonably acceptable
in form and substance to the Trustee, and who may be in-house or outside counsel
to the Depositor, the Master Servicer or the applicable Servicer 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. For purpose of Section 2.01(c)(i), the Opinion of Counsel
referred to therein may take the form of a memorandum of law or other acceptable
assurance.

         Original Credit Support Percentage: With respect to each Class of
Subordinate Certificates, the Credit Support Percentage for such Class of
Certificates on the Closing Date.

         Original Subordinate Amount: The Subordinate Amount on the Closing
Date.

         Original Value: The lesser of (a) the Appraised Value of a Mortgaged
Property at the time the related Mortgage Loan was originated and (b) if the
Mortgage Loan was made to finance the acquisition of the related Mortgaged
Property, the purchase price paid for the Mortgaged Property by the Mortgagor at
the time the related Mortgage Loan was originated.

                                       24
<PAGE>

         Parent Power(SM) Loan: Not applicable.

         Participation Agreement: Not applicable.

         Participation: Not applicable.

         Participation Schedule: Not applicable.

         Participation Master Servicer: Not applicable.

         PAX Mortgage Loans: The Mortgage Loans that have Prepayment Penalty
Amounts for which the Seller owns the servicing rights and are listed on
Schedule D hereto.

         Paying Agent: Any paying agent appointed pursuant to Section 3.08.

         Percentage Interest: With respect to any Certificate and the related
Class, such Certificate's percentage interest in the undivided beneficial
ownership interest in the Trust Fund evidenced by all Certificates of the same
Class as such Certificate. With respect to any Certificate other than a Notional
Certificate, the Percentage Interest evidenced thereby shall equal the initial
Certificate Principal Amount thereof divided by the initial Class Principal
Amount of all Certificates of the same Class. With respect to any Notional
Certificate or Class P Certificate, the Percentage Interest evidenced thereby
shall be as specified on the face thereof.

         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.

         Placement Agent: Lehman Brothers Inc.

         Plan Asset Regulations: Not applicable.

         Pool 1: Not applicable.

         Pool 2: Not applicable.

         Pool Balance: As to any Distribution Date, the sum of the Scheduled
Principal Balance of each Mortgage Loan included in the Mortgage Pool.

         Pledged Asset Loan-to-Value Ratio: Not applicable.

         Pledged Asset Mortgage Loan: Not applicable.

         Prepayment Interest Excess: With respect to any Distribution Date and
any Principal Prepayment in full received on the Mortgage Loans serviced by
Aurora from the first day through the sixteenth day of the month during which
such Distribution Date occurs, all amounts paid in respect of interest at the
applicable Net Mortgage Rate on such Principal Prepayment in full.

                                       25
<PAGE>

         Prepayment Interest Shortfall: With respect to any Distribution Date
and (x) any Principal Prepayment in part (and, with respect to those Mortgage
Loans serviced by Servicers other than Aurora, any Principal Prepayment in full)
and (y) any Principal Prepayment in full with respect to those Mortgage Loans
serviced by Aurora if received on or after the seventeenth day of the month
immediately preceding the month of such Distribution Date but on or before the
last day of the month immediately preceding the month of such Distribution Date,
the difference between (i) one full month's interest at the applicable Mortgage
Rate (after giving effect to any applicable Relief Act Reduction), as reduced by
the applicable Servicing Fee Rate, the Master Servicing Fee Rate and the
applicable Retained Interest Rate, if any, on the outstanding principal balance
of such Mortgage Loan immediately prior to such prepayment and (ii) the amount
of interest actually received with respect to such Mortgage Loan in connection
with such Principal Prepayment.

         Prepayment Penalty Amounts: With respect to any Distribution Date, all
premiums or charges paid by the obligors under the related Mortgage Notes due to
Principal Prepayments collected by the applicable Servicer during the
immediately preceding Prepayment Period, if any.

         Prepayment Period: With respect to those Mortgage Loans serviced by
Servicers other than Aurora, any Distribution Date and any Principal Prepayment,
whether in part or in full (including any liquidation), the calendar month
immediately preceding the month in which such Distribution Date occurs. With
respect to any Distribution Date and a Principal Prepayment in full (including
any liquidation) with respect to those Mortgage Loans serviced by Aurora, the
period from the seventeenth day of the month immediately preceding the month of
such Distribution Date to the sixteenth day of the month of such Distribution
Date. With respect to those Mortgage Loans serviced by Aurora, any Distribution
Date and any Principal Prepayment in part, the calendar month immediately
preceding the month in which such Distribution Date occurs.

         Primary Mortgage Insurance Policy: Mortgage guaranty insurance, if any,
on an individual Mortgage Loan, as evidenced by a policy or certificate.

         Principal Amount Schedules: Not applicable.

         Principal Only Certificate: Not applicable.

         Principal Prepayment: Any Mortgagor payment of principal (other than a
Balloon Payment) or other recovery of principal on a Mortgage Loan that is
recognized as having been received or recovered in advance of its scheduled Due
Date and applied to reduce the principal balance of the Mortgage Loan in
accordance with the terms of the Mortgage Note or the applicable Servicing
Agreement.

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

                                       26
<PAGE>

         Prospectus: The prospectus supplement dated February 24, 2004, together
with the accompanying prospectus dated January 27, 2004, relating to the Senior
Certificates and the Class B1, Class B2 and Class B3 Certificates.

         Purchase Price: With respect to the repurchase of a Mortgage Loan
pursuant to this Agreement, an amount equal to the sum of (a) 100% of the unpaid
principal balance of such Mortgage Loan, (b) accrued interest thereon at the
Mortgage Rate, from the date as to which interest was last paid to (but not
including) the Due Date immediately preceding the related Distribution Date, (c)
any unreimbursed Servicing Advances with respect to such Mortgage Loan and (d)
any costs and damages incurred by the Trust Fund in connection with any
violation by such Mortgage Loan of any predatory- or abusive-lending law. The
Master Servicer or the applicable Servicer (or the Trustee, if applicable) shall
be reimbursed from the Purchase Price for any Mortgage Loan or related REO
Property for any Advances made with respect to such Mortgage Loan that are
reimbursable to the Master Servicer or such Servicer under this Agreement or the
applicable Servicing Agreement, as well as any unreimbursed Servicing Advances
and accrued and unpaid Master Servicing Fees or Servicing Fees, as applicable.

         QIB: As defined in Section 3.03(c).

         Qualified GIC: A guaranteed investment contract or surety bond
providing for the investment of funds in the Collection Account or the
Certificate Account and insuring a minimum, fixed or floating rate of return on
investments of such funds, which contract or surety bond shall:

         (b) be an obligation of an insurance company or other corporation whose
long-term debt is rated by each Rating Agency in one of its two highest rating
categories or, if such insurance company has no long-term debt, whose claims
paying ability is rated by each Rating Agency in one of its two highest rating
categories, and whose short-term debt is rated by each Rating Agency in its
highest rating category;

         (c) provide that the Trustee may exercise all of the rights under such
contract or surety bond without the necessity of taking any action by any other
Person;

         (d) provide that if at any time the then current credit standing of the
obligor under such guaranteed investment contract is such that continued
investment pursuant to such contract of funds would result in a downgrading of
any rating of the Certificates, the Trustee shall terminate such contract
without penalty and be entitled to the return of all funds previously invested
thereunder, together with accrued interest thereon at the interest rate provided
under such contract to the date of delivery of such funds to the Trustee;

         (e) provide that the Trustee's interest therein shall be transferable
to any successor trustee hereunder; and

         (f) provide that the funds reinvested thereunder and accrued interest
thereon be returnable to the Collection Account or the Certificate Account, as
the case may be, not later than the Business Day prior to any Distribution Date.

         Qualified Insurer: Not applicable.

                                       27
<PAGE>

         Qualifying Substitute Mortgage Loan: In the case of a Mortgage Loan
substituted for a Deleted Mortgage Loan, a Mortgage Loan that, on the date of
substitution, (i) has a Scheduled Principal Balance (together with that of any
other mortgage loan substituted for the same Deleted Mortgage Loan) as of the
Due Date in the month in which such substitution occurs not in excess of the
Scheduled Principal Balance of the related Deleted Mortgage Loan, provided,
however, that, to the extent that the Scheduled Principal Balance of such
Mortgage Loan is less than the Scheduled Principal Balance of the related
Deleted Mortgage Loan, then such differential in principal amount, together with
interest thereon at the applicable Mortgage Rate net of the applicable Master
Servicing Fee and the applicable Servicing Fee from the date as to which
interest was last paid through the end of the Due Period in which such
substitution occurs, shall be paid by the party effecting such substitution to
the Master Servicer for deposit into the Collection Account, and shall be
treated as a Principal Prepayment hereunder; (ii) has a Net Mortgage Rate not
lower than the Net Mortgage Rate of the related Deleted Mortgage Loan and will
be a Discount Mortgage Loan if the Deleted Mortgage Loan was a Discount Mortgage
Loan or a Non-Discount Mortgage Loan if the Deleted Mortgage Loan was a
Non-Discount Mortgage Loan; (iii) has a remaining stated term to maturity not
more than eighteen months longer than, and not more than eighteen months shorter
than, the remaining term to stated maturity of the related Deleted Mortgage
Loan; (iv) (A) has a Loan-to-Value Ratio as of the date of such substitution of
not greater than 80%, provided, however, that if the related Deleted Mortgage
Loan has a Loan-to-Value Ratio of greater than 80%, then the Loan-to-Value Ratio
of such substitute Mortgage Loan may be greater than 80% but shall not be
greater than the Loan-to-Value Ratio of the related Deleted Mortgage Loan and
(B) the addition of such substitute Mortgage Loan does not increase the weighted
average Loan-to-Value Ratio of the related Mortgage Pool by more than 5%; (v)
will comply with all of the representations and warranties relating to Mortgage
Loans set forth herein, as of the date as of which such substitution occurs;
(vi) is not a Cooperative Loan unless the related Deleted Mortgage Loan was a
Cooperative Loan; (vii) if applicable, has the same index as and a margin not
less than that of the related Deleted Mortgage Loan; (viii) has not been
delinquent for a period of more than 30 days more than once in the twelve months
immediately preceding such date of substitution; (ix) is covered by a Primary
Mortgage Insurance Policy if the related Deleted Mortgage Loan is so covered,
and the Loan-to-Value Ratio of such Mortgage Loan is greater than 80%; (x) has a
Credit Score not greater than 20 points lower than the Credit Score of the
related Deleted Mortgage Loan, provided, however, that if the Deleted Mortgage
Loan does not have a Credit Score, then such substitute Mortgage Loan shall have
a Credit Score equal to or greater than 700; (xi) has its initial adjustment
date after the related Reset Date; and (xii) has a gross margin no less than the
related Deleted Mortgage Loan. In the event that either one mortgage loan is
substituted for more than one Deleted Mortgage Loan or more than one mortgage
loan is substituted for one or more Deleted Mortgage Loans, then (a) the
Scheduled Principal Balance referred to in clause (i) above shall be determined
such that the aggregate Scheduled Principal Balance of all such substitute
Mortgage Loans shall not exceed the aggregate Scheduled Principal Balance of all
Deleted Mortgage Loans and (b) each of (1) the rate referred to in clause (ii)
above, (2) the remaining term to stated maturity referred to in clause (iii)
above, (3) the Loan-to-Value Ratio referred to in clause (iv) above and (4) the
Credit Score referred to in clause (x) above shall be determined on a weighted
average basis, provided that the final scheduled maturity date of any Qualifying
Substitute Mortgage Loan shall not exceed the Final Scheduled Distribution Date
of any Class of Certificates. Whenever a Qualifying Substitute Mortgage Loan is
substituted for a Deleted Mortgage Loan pursuant to this Agreement, the party
effecting such substitution shall certify such qualification in writing to the
Trustee and the Master Servicer.

                                       28
<PAGE>

         Rating Agency: Each of S&P or Moody's.

         Realized Loss: (a) with respect to each Liquidated Mortgage Loan, an
amount equal to (i) the unpaid principal balance of such Mortgage Loan as of the
date of liquidation, plus (ii) interest at the applicable Net Mortgage Rate from
the date as to which interest was last paid up to the last day of the month of
such liquidation, minus (iii) Liquidation Proceeds received, net of amounts that
are reimbursable to the Master Servicer or the applicable Servicer with respect
to such Mortgage Loan (other than Advances of principal and interest) including
expenses of liquidation and (b) with respect to each Mortgage Loan that has
become the subject of a Deficient Valuation, the difference between the unpaid
principal balance of such Mortgage Loan immediately prior to such Deficient
Valuation and the unpaid principal balance of such Mortgage Loan as reduced by
the Deficient Valuation. In determining whether a Realized Loss on a Liquidated
Mortgage Loan is a Realized Loss of interest or principal, Liquidation Proceeds
shall be allocated, first, to payment of expenses related to such Liquidated
Mortgage Loan (including payment of any Retained Interest), then to accrued
unpaid interest and finally to reduce the principal balance of the Mortgage
Loan.

         Recognition Agreement: With respect to any Cooperative Loan, an
agreement between the related Cooperative Corporation and the originator of such
Mortgage Loan to establish the rights of such originator in the related
Cooperative Property.

         Record Date: With respect to any Distribution Date and each Class of
Certificates, the close of business on the last Business Day of the month
immediately preceding the month in which such Distribution Date occurs.

         Redemption Certificate: None.

         Reference Banks: Not applicable.

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

         Regulation S Global Security: The meaning specified in Section 3.01(c).

         Relief Act Reduction: With respect to any Mortgage Loan as to which
there has been a reduction in the amount of interest collectible thereon as a
result of application of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended or any similar state law, any amount by which interest collectible on
such Mortgage Loan for the Due Date in the related Due Period is less than
interest accrued thereon for the applicable one-month period at the Mortgage
Rate without giving effect to such reduction.

                                       29
<PAGE>

         REMIC: Each of the Lower Tier REMIC, the Middle Tier REMIC and the
Upper Tier REMIC, as described in the Preliminary Statement hereto.

         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 Subchapter M of Chapter 1 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.

         Remittance Date: The day in each month on which each Servicer is
required to remit payments to the account maintained by the Master Servicer, as
specified in the applicable Servicing Agreement, which is the 18th day of each
month (or if such 18th day is not a Business Day, the next succeeding Business
Day).

         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.

         Repurchase Price: As defined in Section 7.01(b) hereof.

         Reserve Interest Rate: Not applicable.

         Reset Date: November 2008.

         Residual Certificate: Any Class R Certificate.

         Responsible Officer: When used with respect to the Trustee, any Vice
President, Assistant Vice President, the Secretary, any assistant secretary, any
Trust Officer, the Treasurer, or any assistant treasurer, working in its
corporate trust department and having direct responsibility for the
administration of this Agreement.

         Restricted Certificate: Any Class B4, Class B5 or Class B6 Certificate
but excluding any Regulation S Global Security.

         Restricted Global Security: The meaning specified in Section 3.01(c).

         Retained Interest: Interest in respect of each Employee Mortgage Loan,
retained in each case by the Retained Interest Holder at the Retained Interest
Rate.

         Retained Interest Holder: Lehman Brothers Holdings or any successor in
interest by assignment or otherwise.

         Retained Interest Rate: For each Due Period, 0.00% per annum; provided,
however, if the Mortgagor of the Employee Mortgage Loan ceases to be an employee
of Lehman Brothers Inc. or its Affiliates, 0.25% per annum.

         Rounding Account: Not applicable.

                                       30
<PAGE>

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

         Scheduled Payment: Each scheduled payment of principal and interest (or
of interest only, if applicable) to be paid by the Mortgagor on a Mortgage Loan,
as reduced (except where otherwise specified herein) by the amount of any
related Debt Service Reduction (excluding all amounts of principal and interest
that were due on or before the Cut-off Date whenever received) and, in the case
of an REO Property, an amount equivalent to the Scheduled Payment that would
have been due on the related Mortgage Loan if such Mortgage Loan had remained in
existence. In the case of any bi-weekly payment Mortgage Loan, all payments due
on such Mortgage Loan during any Due Period shall be deemed collectively to
constitute the Scheduled Payment due on such Mortgage Loan in such Due Period.

         Scheduled Principal Amount: Not applicable.

         Scheduled Principal Balance: With respect to (i) any Mortgage Loan as
of any Distribution Date, the principal balance of such Mortgage Loan at the
close of business on the Cut-off Date, after giving effect to principal payments
due on or before the Cut-off Date, whether or not received, less an amount equal
to principal payments due after the Cut-off Date and on or before the Due Date
in the related Due Period, whether or not received from the Mortgagor or
advanced by the applicable Servicer or the Master Servicer, and all amounts
allocable to unscheduled principal payments (including Principal Prepayments,
Net Liquidation Proceeds, Insurance Proceeds and condemnation proceeds, in each
case to the extent identified and applied prior to or during the applicable
Prepayment Period) and (ii) any REO Property as of any Distribution Date, the
Scheduled Principal Balance of the related Mortgage Loan on the Due Date
immediately preceding the date of acquisition of such REO Property by or on
behalf of the Trustee (reduced by any amount applied as a reduction of principal
on the Mortgage Loan). With respect to any Mortgage Loan as of the Cut-off Date,
as specified in the Mortgage Loan Schedule or the Participation Schedule, as the
case may be.

         Security Agreement: With respect to any Cooperative Loan, the agreement
between the owner of the related Cooperative Shares and the originator of the
related Mortgage Note that defines the terms of the security interest in such
Cooperative Shares and the related Proprietary Lease.

         Seller: Lehman Brothers Holdings or any successor in interest.

         Senior Certificate: Any Class A1, Class A2, Class A3, Class AX, Class
PAX or Class R Certificate.

         Senior Enhancement Percentage: For any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is the sum of the
Class Principal Amounts of the Subordinate Certificates and the denominator of
which is the Pool Balance for the immediately preceding Distribution Date.

         Senior Percentage: With respect to any Distribution Date, the
percentage equivalent of the fraction, the numerator of which is the aggregate
of the Certificate Principal Amounts of the Class A1, Class A2, Class A3 and
Class R Certificates, in each case immediately prior to such Distribution Date
and the denominator of which is the related Pool Balance for the immediately
preceding Distribution Date.

                                       31
<PAGE>

         Senior Prepayment Percentage: With respect to any Distribution Date
occurring during the seven years beginning on the first Distribution Date, 100%,
except as described herein below. With respect to for any Distribution Date
occurring on or after the seventh anniversary of the first Distribution Date,
the related Senior Percentage plus the following percentage of the related
Subordinate Percentage for such Distribution Date: for any Distribution Date in
the first year thereafter, 70%; for any Distribution Date in the second year
thereafter, 60%; for any Distribution Date in the third year thereafter, 40%;
for any Distribution Date in the fourth year thereafter, 20%; and for any
subsequent Distribution Date, 0%; provided, however, that (i) if on any of the
foregoing Distribution Dates the Senior Enhancement Percentage is less than the
Initial Senior Enhancement Percentage, the Senior Prepayment Percentage on such
Distribution Date shall once again equal 100%, (ii) unless the condition
described in (i) has occurred, if on any Distribution Date before the
Distribution Date in March 2007, prior to giving effect to any distributions on
such Distribution Date, the Senior Enhancement Percentage for such Distribution
Date is greater than or equal to twice the Initial Senior Enhancement
Percentage, then the Senior Prepayment Percentage for such Distribution Date
will equal the related Senior Percentage plus 50% of the related Subordinate
Percentage and (iii) unless the condition described in (i) has occurred, if on
any Distribution Date on or after the Distribution Date in March 2007, prior to
giving effect to any distributions on such Distribution Date, the Senior
Enhancement Percentage for such Distribution Date is greater than or equal to
twice the Initial Senior Enhancement Percentage, then the Senior Prepayment
Percentage on such Distribution Date will equal the related Senior Percentage.

         Notwithstanding the foregoing, no decrease in the Senior Prepayment
Percentage below the respective levels in effect for the most recent prior
period set forth in the paragraph above shall be effective on any Distribution
Date if, as of the first Distribution Date as to which any such decrease
applies, (i) the average outstanding principal balance on such Distribution Date
and for the preceding five Distribution Dates of all Mortgage Loans that were
delinquent 60 days or more (including for this purpose any Mortgage Loans in
foreclosure and the Scheduled Payments that would have been due on Mortgage
Loans with respect to which the related Mortgaged Properties have been acquired
by the Trust Fund if the related Mortgage Loan had remained in existence) is
greater than or equal to 50% of the applicable Subordinate Amount immediately
prior to such Distribution Date or (ii) cumulative Realized Losses with respect
to the Mortgage Loans exceed (a) with respect to the Distribution Date prior to
the third anniversary of the first Distribution Date, 20% of the related
Original Subordinate Amount, (b) with respect to the Distribution Date on or
after the third anniversary and prior to the sixth anniversary of the first
Distribution Date, 30% of the related Original Subordinate Amount, (c) with
respect to the Distribution Date on or after the sixth anniversary and prior to
the seventh anniversary of the first Distribution Date, 35% of the related
Original Subordinate Amount, (d) with respect to the Distribution Date on or
after the seventh anniversary and prior to the eighth anniversary of the first
Distribution Date, 40% of the related Original Subordinate Amount, (e) with
respect to the Distribution Date on or after the eighth anniversary and prior to
the ninth anniversary of the first Distribution Date, 45% of the related
Original Subordinate Amount, and (f) with respect to the Distribution Date on or
after the ninth anniversary of the first Distribution Date or thereafter, 50% of
the related Original Subordinate Amount. After the Class Principal Amount of
each Class of Senior Certificates in any Certificate Group has been reduced to
zero, the Senior Prepayment Percentage shall be 0%.

                                       32
<PAGE>

         Senior Principal Distribution Amount: For any Distribution Date, the
sum of the following amounts:

               (i) the product of (a) the Senior Percentage for such date and
         (b) the principal portion of each Scheduled Payment (without giving
         effect to any Debt Service Reduction occurring prior to the Bankruptcy
         Coverage Termination Date), on each Mortgage Loan due during the
         related Due Period;

               (ii) the product of (a) the Senior Prepayment Percentage for such
         date and (b) each of the following amounts: (1) each Principal
         Prepayment on the Mortgage Loans collected during the related
         Prepayment Period, (2) each other unscheduled collection, including any
         Subsequent Recovery, Insurance Proceeds and Net Liquidation Proceeds
         (other than with respect to any Mortgage Loan that was finally
         liquidated during the related Prepayment Period) representing or
         allocable to recoveries of principal received during the related
         Prepayment Period, and (3) the principal portion of all proceeds of the
         purchase of any Mortgage Loan (or, in the case of a permitted
         substitution, amounts representing a principal adjustment) actually
         received by the Trustee during the related Prepayment Period;

               (iii) with respect to unscheduled recoveries allocable to
         principal of any Mortgage Loan that was finally liquidated during the
         related Prepayment Period, the lesser of (a) the related net
         Liquidation Proceeds allocable to principal and (b) the product of the
         Senior Prepayment Percentage for such date and the Scheduled Principal
         Balance of such related Mortgage Loan at the time of liquidation; and

               (iv) any amounts described in clauses (i) through (iii) for any
         previous Distribution Date that remain unpaid.

If on any Distribution Date the Class Principal Amount of each Class of Senior
Certificates in any Certificate Group has been reduced to zero, the Senior
Principal Distribution Amount for such Certificate Group for such date
(following such reduction) and each subsequent Distribution Date shall be zero.

         Servicer: Any Servicer that has entered into any of the Servicing
Agreements attached as Exhibit E hereto, or any successor in interest.
Initially, the Servicer is Aurora.

         Servicing Advances: Expenditures incurred by a Servicer in connection
with the liquidation or foreclosure of a Mortgage Loan which are eligible for
reimbursement under the applicable Servicing Agreement.

         Servicing Agreement: Each Servicing Agreement between a Servicer and
the Seller, dated as of February 1, 2004, attached hereto in Exhibit E, and any
other servicing agreement entered into between a successor servicer and the
Seller or the Trustee pursuant to the terms hereof.

                                       33
<PAGE>

         Servicing Fee: With respect to each Servicer, the Servicing Fee
specified in the applicable Servicing Agreement.

         Servicing Fee Rate: With respect to a Servicer, the rate specified in
the applicable Servicing Agreement.

         Servicing Officer: Any officer of the Master Servicer involved in or
responsible for the administration and servicing or master servicing of the
Mortgage Loans whose name appears on a list of servicing officers furnished by
the Master Servicer to the Trustee, as such list may from time to time be
amended.

         Special Hazard Loss: With respect to the Mortgage Loans, (x) any
Realized Loss arising out of any direct physical loss or damage to a Mortgaged
Property which is caused by or results from any cause, exclusive of any loss
covered by a hazard policy or a flood insurance policy required to be maintained
in respect of such Mortgaged Property and any loss caused by or resulting from
(i) normal wear and tear, (ii) conversion or other dishonest act on the part of
the Trustee, the Master Servicer, any Servicer or any of their agents or
employees, or (iii) errors in design, faulty workmanship or faulty materials,
unless the collapse of the property or a part thereof ensues, or (y) any
Realized Loss arising from or related to the presence or suspected presence of
hazardous wastes, or hazardous substances on a Mortgaged Property unless such
loss is covered by a hazard policy or flood insurance policy required to be
maintained in respect of such Mortgaged Property, in any case, as reported by
any Servicer to the Master Servicer.

         Special Hazard Loss Limit: As of the Cut-off Date, $8,625,250 which
amount shall be reduced from time to time to an amount equal on any Distribution
Date to the lesser of (a) the greatest of (i) 1% of the aggregate of the
Scheduled Principal Balances of the Mortgage Loans; (ii) twice the Scheduled
Principal Balance of the Mortgage Loan having the highest Scheduled Principal
Balance, and (iii) the aggregate Scheduled Principal Balances of the Mortgage
Loans secured by Mortgaged Properties located in the single California postal
zip code area having the highest aggregate Scheduled Principal Balance of
Mortgage Loans of any such postal zip code area and (b) the Special Hazard Loss
Limit as of the Closing Date less the amount, if any, of Special Hazard Losses
incurred with respect to Mortgage Loans since the Closing Date.

         Specified Rating: Not applicable.

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

         Subordinate Amount: With respect to any Distribution Date, the excess,
if any, of the Pool Balance for the immediately preceding Distribution Date over
the sum of the aggregate of the Certificate Principal Amounts of the Senior
Certificates immediately prior to the related Distribution Date.

         Subordinate Certificate: Any Class B Certificate.

         Subordinate Certificate Writedown Amount: As to any Distribution Date,
the amount by which (i) the sum of the Class Principal Amounts of all the
Certificates (after giving effect to the distribution of principal and the
allocation of Realized Losses in reduction of the Certificate Principal Amounts
of the Certificates on such Distribution Date) exceeds (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans for such Distribution Date.

                                       34
<PAGE>

         Subordinate Class Percentage: With respect to any Distribution Date and
any Class of Subordinate Certificates, the percentage obtained by dividing the
Class Principal Amount of such Class immediately prior to such Distribution Date
by the aggregate Certificate Principal Amount of all Subordinate Certificates
immediately prior to such Distribution Date.

         Subordinate Component Percentage: Not applicable.

         Subordinate Percentage: With respect to any Distribution Date, the
difference between 100% and the related Senior Percentage for such Distribution
Date.

         Subordinate Prepayment Percentage: With respect to any Distribution
Date, the difference between 100% and the Senior Prepayment Percentage for such
Distribution Date.

         Subordinate Principal Distribution Amount: For any Distribution Date,
the sum of the following:

               (i) the product of (a) the related Subordinate Percentage for
         such date and (b) the principal portion of each Scheduled Payment
         (without giving effect to any Debt Service Reduction occurring prior to
         the applicable Bankruptcy Coverage Termination Date) on each Mortgage
         Loan due during the related Due Period;

               (ii) the product of (a) the Subordinate Prepayment Percentage for
         such date and (b) each of the following amounts: (1) each Principal
         Prepayment on the Mortgage Loans collected during the related
         Prepayment Period, (2) each other unscheduled collection, including any
         Subsequent Recovery, Insurance Proceeds and Net Liquidation Proceeds
         (other than with respect to any Mortgage Loan that was finally
         liquidated during the related Prepayment Period) representing or
         allocable to recoveries of principal received during the related
         Prepayment Period, and (3) the principal portion of all proceeds of the
         purchase of any Mortgage Loan (or, in the case of a permitted
         substitution, amounts representing a principal adjustment) actually
         received by the Trustee during the related Prepayment Period;

               (iii) with respect to unscheduled recoveries allocable to
         principal of any Mortgage Loan that was finally liquidated during the
         related Prepayment Period, the related net Liquidation Proceeds
         allocable to principal less any related amount paid pursuant to
         subsection (iii) of the definition of Senior Principal Distribution
         Amount; and

               (iv) any amounts described in clauses (i) through (iii) for any
         previous Distribution Date that remain unpaid;

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

         Surety: Not applicable.

                                       35
<PAGE>

         Surety Bond: Not applicable.

         Tax Matters Person: The "tax matters person" as specified in the REMIC
Provisions.

         Title Insurance Policy: A title insurance policy maintained with
respect to a Mortgage Loan.

         Transfer Agreement: As defined in the Mortgage Loan Sale Agreement.

         Transferor: Each seller of Mortgage Loans to Lehman Brothers Holdings
pursuant to a Transfer Agreement.

         Trust Fund: The corpus of the trust created pursuant to this Agreement,
consisting of the Mortgage Loans (other than any Retained Interest), the
assignment of the Depositor's rights under the Mortgage Loan Sale Agreement and
the Participation Agreement, the Participations, the Additional Collateral, such
amounts as shall from time to time be held in the Collection Account, the
Certificate Account, any Escrow Account, the Insurance Policies, any REO
Property and the other items referred to in, and conveyed to the Trustee under,
Section 2.01(a).

         Trust Rate: Not applicable.

         Trust REMIC: Any of the Lower Tier REMIC, the Middle Tier REMIC and the
Upper Tier REMIC.

         Trustee: JPMorgan Chase Bank, not in its individual capacity but solely
as Trustee, or any successor in interest, 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 Fee: As to any Distribution Date, an amount equal to the
product of the Trustee Fee Rate and the aggregate Scheduled Principal Balance of
the related Mortgage Loans as of the first day of the related Due Period in the
aggregate.

         Trustee Fee Rate: 0.0060% per annum.

         Undercollateralization Distribution: Not applicable.

         Undercollateralized Group: Not applicable.

         Underlying Subordinate Rate: Not applicable.

         Underwriter's Exemption: Prohibited Transaction Exemption 91-14, 56
Fed. Reg. 7413 (1991), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department of
Labor.

         Unpaid Basis Risk Shortfalls: For any Distribution Date and any of the
Class A1, Class A2, Class A3 Certificates or any Class of Subordinate
Certificates, the sum of all Basis Risk Shortfalls for such Class for prior
Distribution Dates in respect of which no payment of amounts that would
otherwise have been distributed to the Class AX or Class PAX Certificates has
been made.

                                       36
<PAGE>

         Upper Tier REMIC: One of the separate REMICs as described in the
Preliminary Statement hereto.

         Upper Tier REMIC Regular Interest: Any of (i) the uncertificated REMIC
regular interests represented by the rights associated with the Class A1, Class
A2, Class A3, Class B1, Class B2, Class B3, Class B4, Class B5 and Class B6
Certificates other than the rights to receive payments in respect of Basis Risk
Shortfalls and (ii) the rights associated with the Class AX and Class PAX
Certificates as determined without regard to the obligation to make payments in
respect of Basis Risk Shortfalls.

         Upper Tier REMIC Residual Interest: The sole class of residual interest
in the Upper Tier REMIC, representing the rights to receive all distributions on
the Class R Certificates other than distributions in respect of the Class LT-R
Interest and Class MT-R Interest.

         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
until the Class Notional Amount of each Class of Notional Certificates has been
reduced to zero, 94% of all Voting Interests shall be allocated to the
Certificates other than the Notional Certificates and the Class P Certificates,
and 5% of all Voting Interests shall be allocated to the Notional Certificates
and 1% shall be allocated to the Class P Certificates. After the Class Notional
Amount of each Class of Notional Certificates has been reduced to zero, 99% of
all Voting Interests shall be allocated to the remaining Classes of Certificates
other than the Class P Certificates. Voting Interests allocated to the Notional
Certificates shall be allocated among the Classes of such Certificates (and
among the Certificates of each such Class) in proportion to their Class Notional
Amounts (or Notional Amounts). Voting Interests shall be allocated among the
other Classes of Certificates (and among the Certificates of each such Class) in
proportion to their Class Principal Amounts (or Certificate Principal Amounts).
Voting Interests allocated to the Class P Certificates shall be allocated among
the Certificates of such Class in proportion to their Percentage Interests.

         Section 1.02. Calculations Respecting Mortgage Loans.

         Calculations required to be made pursuant to this Agreement with
respect to any Mortgage Loan in the Trust Fund shall be made based upon current
information as to the terms of the Mortgage Loans and reports of payments
received from the Mortgagor on such Mortgage Loans and payments to be made to
the Trustee by the Master Servicer as supplied to the Trustee by the Master
Servicer. The Trustee shall not be required to recompute, verify or recalculate
the information supplied to it by the Master Servicer.

                                   ARTICLE II

                              DECLARATION OF TRUST;
                            ISSUANCE OF CERTIFICATES

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

                                       37
<PAGE>

         (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, 2.04, 2.05
and 2.06, in trust, all the right, title and interest of the Depositor in and to
the Mortgage Loans (including the Participations). Such conveyance includes,
without limitation, the right to all distributions of principal and interest
received on or with respect to the Mortgage Loans on and after the Cut-off Date
(other than payments of principal and interest 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, together with
all of the Depositor's right, title and interest in and to the Collection
Account and all amounts from time to time credited to and the proceeds of the
Collection Account, the Certificate Account and all amounts from time to time
credited to and the proceeds of the Certificate Account, any Escrow Account
established pursuant to Section 9.06 hereof and all amounts from time to time
credited to and the proceeds of any such Escrow Account, any REO Property and
the proceeds thereof, the Depositor's rights under any Insurance Policies
related to the Mortgage Loans, and the Depositor's security interest in any
collateral pledged to secure the Mortgage Loans, including the Mortgaged
Properties and any Additional Collateral, and any proceeds of the foregoing, to
have and to hold, in trust; and the Trustee declares that, subject to the review
provided for in Section 2.02, it (or a Custodian on its behalf) 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.

         Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby assign to the Trustee all of its rights and interest under
the Mortgage Loan Sale Agreement; including all rights of the Seller under the
applicable Servicing Agreement to the extent assigned under the Mortgage Loan
Sale Agreement. The Trustee hereby accepts such assignment, and shall be
entitled to exercise all rights of the Depositor under the Mortgage Loan Sale
Agreement as if, for such purpose, it were the Depositor. The foregoing sale,
transfer, assignment, set-over, deposit and conveyance does not and is not
intended to result in creation or assumption by the Trustee of any obligation of
the Depositor, the Seller, or any other Person in connection with the Mortgage
Loans or any other agreement or instrument relating thereto except as
specifically set forth herein.

         In addition, with respect to any Pledged Asset Mortgage Loan, the
Depositor does hereby transfer, assign, set-over and otherwise convey to the
Trustee without recourse (except as provided herein) (i) its rights as assignee
under any security agreements, pledge agreements or guarantees relating to the
Additional Collateral supporting any Pledged Asset Mortgage Loan, (ii) its
security interest in and to any Additional Collateral, (iii) its right to
receive payments in respect of any Pledged Asset Mortgage Loan pursuant to the
Additional Collateral Servicing Agreement, and (iv) its rights as beneficiary
under the Surety Bond in respect of any Pledged Asset Mortgage Loan.
Notwithstanding anything to the contrary in this Agreement, the Trust Fund shall
not obtain title to or beneficial ownership of any Additional Collateral as a
result of or in lieu of the disposition thereof or otherwise.

                                       38
<PAGE>

         (b) In connection with such transfer and assignment, the Depositor does
hereby deliver to, and deposit with, or cause to be delivered to and deposited
with, the Trustee, and/or any custodian acting on the Trustee's behalf, if
applicable, the following documents or instruments with respect to each Mortgage
Loan (each a "Mortgage File") so transferred and assigned (other than the
Participations):

               (i) with respect to each Mortgage Loan, the original Mortgage
         Note endorsed without recourse in proper form to the order of the
         Trustee, or in blank (in each case, with all necessary intervening
         endorsements as applicable);

               (ii) the original of any guarantee, security agreement or pledge
         agreement relating to any Additional Collateral and executed in
         connection with the Mortgage Note, assigned to the Trustee;

               (iii) with respect to each Mortgage Loan other than a Cooperative
         Loan, the original recorded Mortgage with evidence of recording
         indicated thereon and the original recorded power of attorney, if the
         Mortgage was executed pursuant to a power of attorney, with evidence of
         recording thereon or, if such Mortgage or power of attorney has been
         submitted for recording but has not been returned from the applicable
         public recording office, has been lost or is not otherwise available, a
         copy of such Mortgage or power of attorney, as the case may be,
         certified to be a true and complete copy of the original submitted for
         recording. If, in connection with any Mortgage Loan, the Depositor
         cannot deliver the Mortgage with evidence of recording thereon on or
         prior to the Closing Date because of a delay caused by the public
         recording office where such Mortgage has been delivered for recordation
         or because such Mortgage has been lost, the Depositor shall deliver or
         cause to be delivered to the Trustee (or its custodian), in the case of
         a delay due to recording, a true copy of such Mortgage, pending
         delivery of the original thereof, together with an Officer's
         Certificate of the Depositor certifying that the copy of such Mortgage
         delivered to the Trustee (or its custodian) is a true copy and that the
         original of such Mortgage has been forwarded to the public recording
         office, or, in the case of a Mortgage that has been lost, a copy
         thereof (certified as provided for under the laws of the appropriate
         jurisdiction) and a written Opinion of Counsel acceptable to the
         Trustee and the Depositor that an original recorded Mortgage is not
         required to enforce the Trustee's interest in the Mortgage Loan;

               (iv) the original of each assumption, modification or
         substitution agreement, if any, relating to the Mortgage Loans, or, as
         to any assumption, modification or substitution agreement which cannot
         be delivered on or prior to the Closing Date because of a delay caused
         by the public recording office where such assumption, modification or
         substitution agreement has been delivered for recordation, a photocopy
         of such assumption, modification or substitution agreement, pending
         delivery of the original thereof, together with an Officer's
         Certificate of the Depositor certifying that the copy of such
         assumption, modification or substitution agreement delivered to the
         Trustee (or its custodian) is a true copy and that the original of such
         agreement has been forwarded to the public recording office;

                                       39
<PAGE>

               (v) with respect to each Non-MERS Mortgage Loan other than a
         Cooperative Loan, the original Assignment of Mortgage for each Mortgage
         Loan;

               (vi) if applicable, such original intervening assignments of the
         Mortgage, notice of transfer or equivalent instrument (each, an
         "Intervening Assignment"), as may be necessary to show a complete chain
         of assignment from the originator, or, in the case of an Intervening
         Assignment that has been lost, a written Opinion of Counsel acceptable
         to the Trustee that such original Intervening Assignment is not
         required to enforce the Trustee's interest in the Mortgage Loans;

               (vii) the original Primary Mortgage Insurance Policy or
         certificate, if private mortgage guaranty insurance is required;

               (viii) with respect to each Mortgage Loan other than a
         Cooperative Loan, the original mortgagee title insurance policy or
         attorney's opinion of title and abstract of title;

               (ix) the original of any security agreement, chattel mortgage or
         equivalent executed in connection with the Mortgage or as to any
         security agreement, chattel mortgage or their equivalent that cannot be
         delivered on or prior to the Closing Date because of a delay caused by
         the public recording office where such document has been delivered for
         recordation, a photocopy of such document, pending delivery of the
         original thereof, together with an Officer's Certificate of the
         Depositor certifying that the copy of such security agreement, chattel
         mortgage or their equivalent delivered to the Trustee (or its
         custodian) is a true copy and that the original of such document has
         been forwarded to the public recording office; and

               (x) with respect to any Cooperative Loan, the Cooperative Loan
         Documents.

         The parties hereto acknowledge and agree that the form of endorsement
attached hereto as Exhibit B-4 is intended to effect the transfer to the
Trustee, for the benefit of the Certificateholders, of the Mortgage Notes and
the Mortgages.

         With respect to each Participation, the Depositor does hereby deliver
to, and deposit with, or cause to be delivered to and deposited with, the
Trustee, and/or any custodian acting on the Trustee's behalf, a copy of the
Participation Agreement and the original Participation issued to the Trustee.

         (c) (i) Assignments of Mortgage with respect to each Non-MERS Mortgage
         Loan other than a Cooperative Loan shall be recorded; provided,
         however, that such Assignments need not be recorded if, in the Opinion
         of Counsel (which must be from Independent counsel) acceptable to the
         Trustee and the Rating Agencies, recording in such states is not
         required to protect the Trustee's interest in the related Non-MERS
         Mortgage Loans. Subject to the preceding sentence, as soon as
         practicable after the Closing Date (but in no event more than 3 months
         thereafter except to the extent delays are caused by the applicable
         recording office), the Trustee (or its Custodian), at the expense of
         the Depositor and with the cooperation of the applicable Servicer,
         shall cause to be properly recorded by such Servicer in each public
         recording office where the related Mortgages are recorded each
         Assignment of Mortgage referred to in subsection (b)(v) above with

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<PAGE>

         respect to a Non-MERS Mortgage Loan. With respect to each Cooperative
         Loan, the Trustee (or its Custodian), at the expense of the Depositor
         and with the cooperation of the applicable Servicer, shall cause such
         Servicer to take such actions as are necessary under applicable law in
         order to perfect the interest of the Trustee in the related Mortgaged
         Property.

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

         (d) In instances where a Title Insurance Policy is required to be
delivered to the Trustee, or to the applicable Custodian on behalf of the
Trustee, under clause (b)(viii) above and is not so delivered, the Depositor
will provide a copy of such Title Insurance Policy to the Trustee, or 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.

         (e) 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 to the Trustee, or to the
applicable Custodian on behalf of the Trustee, 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 applicable
Collection Account pursuant to Section 4.01 have been so deposited. All original
documents that are not delivered to the Trustee or the applicable Custodian on
behalf of the Trustee shall be held by the Master Servicer or the applicable
Servicer in trust for the benefit of the Trustee and the Certificateholders.

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

         (a) The Trustee or the applicable Custodian on behalf of the Trustee,
by execution and delivery hereof, acknowledges receipt of the Participations and
the Mortgage Files pertaining to the Mortgage Loans listed on the Mortgage Loan
Schedule, subject to review thereof by the Trustee, or by the applicable
Custodian on behalf of the Trustee, under this Section 2.02. The Trustee, or the
applicable Custodian on behalf of the Trustee, will execute and deliver to the
Trustee, the Depositor and the Master Servicer on the Closing Date an Initial
Certification in the form annexed hereto as Exhibit B-1 (or in the form annexed
to the applicable Custodial Agreement as Exhibit B-1, as applicable).

         (b) Within 45 days after the Closing Date, the applicable Custodian
will, on behalf of the Trustee and for the benefit of Holders of the
Certificates, review each Mortgage File to ascertain that all required documents
set forth in Section 2.01 have been received and appear on their face to contain
the requisite signatures by or on behalf of the respective parties thereto, and
shall deliver to the Trustee, the Depositor and the Master Servicer an Interim
Certification in the form annexed hereto as Exhibit B-2 (or in the form annexed

                                       41
<PAGE>

to the applicable Custodial Agreement as Exhibit B-2, as applicable) to the
effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan prepaid in full or any Mortgage Loan specifically
identified in such certification as not covered by such certification), (i) all
of the applicable documents specified in Section 2.01(b) are in its possession
and (ii) such documents have been reviewed by it and appear to relate to such
Mortgage Loan. The Trustee, or the applicable Custodian on behalf of the
Trustee, shall make sure that the documents are executed and endorsed, but shall
be under no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that the same are valid,
binding, legally effective, properly endorsed, genuine, enforceable or
appropriate for the represented purpose or that they have actually been recorded
or are in recordable form or that they are other than what they purport to be on
their face. Neither the Trustee nor any Custodian shall have any responsibility
for verifying the genuineness or the legal effectiveness of or authority for any
signatures of or on behalf of any party or endorser.

         (c) If in the course of the review described in paragraph (b) above the
Trustee or the applicable Custodian discovers any document or documents
constituting a part of a Mortgage File that is missing, does not appear regular
on its face (i.e., is mutilated, damaged, defaced, torn or otherwise physically
altered) or appears to be unrelated to the Mortgage Loans identified in the
Mortgage Loan Schedule (each, a "Material Defect"), the Trustee, or the
applicable Custodian on behalf of the Trustee, shall promptly identify the
Mortgage Loan to which such Material Defect relates in the Interim Certificate
delivered to the Depositor or the Master Servicer (and to the Trustee). Within
90 days of its receipt of such notice, the Depositor shall be required to cure
such Material Defect (and, in such event, the Depositor shall provide the
Trustee with an Officer's Certificate confirming that such cure has been
effected). If the Depositor does not so cure such Material Defect, it shall, if
a loss has been incurred with respect to such Mortgage Loan that would, if such
Mortgage Loan were not purchased from the Trust Fund, constitute a Realized
Loss, and such loss is attributable to the failure of the Depositor to cure such
Material Defect, repurchase the related Mortgage Loan from the Trust Fund at the
Purchase Price. A loss shall be deemed to be attributable to the failure of the
Depositor to cure a Material Defect if, as determined by the Depositor, upon
mutual agreement with the Servicer acting in good faith, absent such Material
Defect, such loss would not have been incurred. Within the two-year period
following the Closing Date, the Depositor may, in lieu of repurchasing a
Mortgage Loan pursuant to this Section 2.02, substitute for such Mortgage Loan a
Qualifying Substitute Mortgage Loan subject to the provisions of Section 2.05.
The failure of the Trustee or the applicable Custodian to give the notice
contemplated herein within 45 days after the Closing Date shall not affect or
relieve the Depositor of its obligation to repurchase any Mortgage Loan pursuant
to this Section 2.02 or any other Section of this Agreement requiring the
repurchase of Mortgage Loans from the Trust Fund.

         (d) Within 180 days following the Closing Date, the Trustee, or the
applicable Custodian, shall deliver to the Trustee, the Depositor and the Master
Servicer a Final Certification substantially in the form annexed hereto as
Exhibit B-3 (or in the form annexed to the applicable Custodial Agreement as
Exhibit B-3, as applicable) evidencing the completeness of the Mortgage Files in
its possession or control, with any exceptions noted thereto.

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<PAGE>

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

         (f) Each of the parties hereto acknowledges that the applicable
Custodian shall perform the applicable review of the Mortgage Loans and deliver
the respective certifications thereof as provided in this Section 2.02.

         Section 2.03. Representations and Warranties of the Depositor.

         (a) The Depositor hereby represents and warrants to the Trustee, for
the benefit of Certificateholders, and to the Master Servicer, 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 and the Master Servicer, 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 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; and

                                       43
<PAGE>

               (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.

         (b) The representations and warranties of each Transferor with respect
to the related Mortgage Loans in the applicable Transfer Agreement, which have
been assigned to the Trustee hereunder, were made as of the date specified in
the applicable Transfer Agreement (or underlying agreement, if such Transfer
Agreement is in the form of an assignment of a prior agreement). To the extent
that any fact, condition or event with respect to a Mortgage Loan constitutes a
breach of both (i) a representation or warranty of the applicable Transferor
under the applicable Transfer Agreement and (ii) a representation or warranty of
Lehman Brothers Holdings under the Mortgage Loan Sale Agreement, the only right
or remedy of the Trustee or of any Certificateholder shall be the Trustee's
right to enforce the obligations of the applicable Transferor under any
applicable representation or warranty made by it. The Trustee acknowledges that
Lehman Brothers Holdings shall have no obligation or liability with respect to
any breach of a representation or warranty made by it with respect to the
Mortgage Loans if the fact, condition or event constituting such breach also
constitutes a breach of a representation or warranty made by the applicable
Transferor in the applicable Transfer Agreement, without regard to whether such
Transferor fulfills its contractual obligations in respect of such
representation or warranty. The Trustee further acknowledges that the Depositor
shall have no obligation or liability with respect to any breach of any
representation or warranty with respect to the Mortgage Loans (except as set
forth in Section 2.03(a)(vi)) under any circumstances.

         Section 2.04. Discovery of Breach.

         It is understood and agreed that the representations and warranties (i)
set forth in Section 2.03, (ii) of Lehman Brothers Holdings set forth in the
Mortgage Loan Sale Agreement and assigned to the Trustee by the Depositor
hereunder and (iii) of each Transferor, assigned by Lehman Brothers Holdings to

                                       44
<PAGE>

the Depositor pursuant to the Mortgage Loan Sale Agreement and assigned to the
Trustee by the Depositor hereunder shall each survive delivery of the Mortgage
Files and the Assignment of Mortgage of each Mortgage Loan to the Trustee and
shall continue throughout the term of this Agreement. Upon discovery by either
the Depositor, the Master Servicer or the Trustee of a breach of any of such
representations and warranties that adversely and materially affects the value
of the related Mortgage Loan, the party discovering such breach shall give
prompt written notice to the other parties. Within 90 days of the discovery of a
breach of any representation or warranty given to the Trustee by the Depositor,
any Transferor, or Lehman Brothers Holdings and assigned to the Trustee, the
Depositor, such Transferor, or Lehman Brothers Holdings, as applicable, shall
either (a) cure such breach in all material respects, (b) repurchase such
Mortgage Loan or any property acquired in respect thereof from the Trustee at
the Purchase Price or (c) within the two year period following the Closing Date,
substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage Loan.
In the event of discovery of a breach of any representation and warranty of any
Transferor assigned to the Trustee, the Trustee shall enforce its rights under
the applicable Transfer Agreement and the Mortgage Loan Sale Agreement for the
benefit of Certificateholders. As provided in the Mortgage Loan Sale Agreement,
if any Transferor substitutes for a Mortgage Loan for which there is a breach of
any representations and warranties in the related Transfer Agreement which
adversely and materially affects the value of such Mortgage Loan and such
substitute mortgage loan is not a Qualifying Substitute Mortgage Loan, under the
terms of the Mortgage Loan Sale Agreement, Lehman Brothers Holdings will, in
exchange for such substitute Mortgage Loan, (i) provide the applicable Purchase
Price for the affected Mortgage Loan or (ii) within two years of the Closing
Date, substitute such affected Mortgage Loan with a Qualifying Substitute
Mortgage Loan.

         Section 2.05. Repurchase, Purchase or Substitution of Mortgage Loans.

         (a) With respect to any Mortgage Loan repurchased by the Depositor
pursuant to this Agreement, by Lehman Brothers Holdings pursuant to the
applicable Mortgage Loan Sale Agreement or by any Transferor pursuant to the
applicable Transfer Agreement, the principal portion of the funds received by
the Master Servicer in respect of such repurchase of a Mortgage Loan will be
considered a Principal Prepayment and shall be deposited in the Collection
Account pursuant to Section 4.01. The Trustee, upon receipt of the full amount
of the Purchase Price for a Deleted Mortgage Loan, or upon receipt of the
Mortgage File for a Qualifying Substitute Mortgage Loan substituted for a
Deleted Mortgage Loan (and any applicable Substitution Amount), shall release or
cause to be released to the Depositor, Lehman Brothers Holdings or the
applicable Transferor, as applicable, the related Mortgage File for the Deleted
Mortgage Loan and shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, representation or warranty, as shall
be necessary to vest in such party or its designee or assignee title to any
Deleted Mortgage Loan released pursuant hereto, free and clear of all security
interests, liens and other encumbrances created by this Agreement, which
instruments shall be prepared by the Trustee (or its custodian), and the Trustee
shall have no further responsibility with respect to the Mortgage File relating
to such Deleted Mortgage Loan.

         (b) With respect to each Qualifying Substitute Mortgage Loan to be
delivered to the Trustee (or its applicable Custodian) pursuant to the terms of
this Article II in exchange for a Deleted Mortgage Loan: (i) the Depositor, the
applicable Transferor, or Lehman Brothers Holdings, as applicable, must deliver

                                       45
<PAGE>

to the Trustee (or its custodian) the Mortgage File for the Qualifying
Substitute Mortgage Loan containing the documents set forth in Section 2.01(b)
along with a written certification certifying as to the delivery of such
Mortgage File and containing the granting language set forth in Section 2.01(a);
and (ii) the Depositor will be deemed to have made, with respect to such
Qualified Substitute Mortgage Loan, each of the representations and warranties
made by it with respect to the related Deleted Mortgage Loan. As soon as
practicable after the delivery of any Qualifying Substitute Mortgage Loan
hereunder, (i) the Master Servicer, at the expense of the Depositor and at the
direction and with the cooperation of the applicable Servicer, shall (i) with
respect to a Qualifying Substitute Mortgage Loan that is a Non-MERS Mortgage
Loan, cause the Assignment of Mortgage to be recorded by such Servicer if
required pursuant to Section 2.01(c)(i), or (ii) with respect to a Qualifying
Substitute Mortgage Loan that is a MERS Mortgage Loan, cause to be taken such
actions by such Servicer as are necessary to cause the Trustee to be clearly
identified as the owner of each such Mortgage Loan on the records of MERS if
required pursuant to Section 2.01(c)(ii).

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

         Section 2.06. Grant Clause.

         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: (i) the
rights and obligations of the parties shall be established pursuant to the terms
of this Agreement; (ii) 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
(iii) 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.

                                   ARTICLE III

                                THE CERTIFICATES

         Section 3.01. The Certificates.

                                       46
<PAGE>

         (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 Principal Amount or Notional Principal Amount, as applicable, or in
the Percentage Interests, specified herein. Each Class of Book-Entry
Certificates shall be issued in the minimum denominations in Certificate
Principal Amount (or Notional Amount) or Percentage Interest specified in the
Preliminary Statement hereto and in integral multiples of $1 or 5% (in the case
of Certificates issued in Percentage Interests) in excess thereof. Each Class of
Non-Book Entry Certificates other than the Residual Certificate shall be issued
in definitive, fully registered form in the minimum denominations in Certificate
Principal Amount (or Notional Amount) specified in the Preliminary Statement
hereto and in integral multiples of $1 in excess thereof. The Residual
Certificate shall be issued as a single Certificate and maintained in
definitive, fully registered form in a minimum denomination equal to $100. The
Class P Certificates shall be maintained in definitive, fully registered form in
a minimum denomination equal to 25% of the Percentage Interest of such Class of
Certificates. The Certificates may be issued in the form of typewritten
certificates. One Certificate of each Class of Certificates other than any Class
of Residual Certificates may be issued in any denomination in excess of the
minimum denomination.

         (b) The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer. Each Certificate shall, on
original issue, be authenticated by the Trustee upon the order of the Depositor
upon receipt by the Trustee of the 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 Trustee or the Authenticating Agent, if any, 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 the Depositor to the Trustee or the Authenticating Agent for authentication
and the Trustee or the Authenticating Agent shall authenticate and deliver such
Certificates as in this Agreement provided and not otherwise.

         (c) The Class B4, Class B5 or Class B6 Certificates offered and sold in
reliance on the exemption from registration under Rule 144A shall be issued
initially in the form of one or more permanent global Certificates in
definitive, fully registered form without interest coupons with the applicable
legends set forth in Exhibit A added to the forms of such Certificates (each, a
"Restricted Global Security"), which shall be deposited on behalf of the
subscribers for such Certificates represented thereby with the Trustee, as
custodian for DTC and registered in the name of a nominee of DTC, duly executed
and authenticated by the Trustee as hereinafter provided. The aggregate
principal amounts of the Restricted Global Securities may from time to time be
increased or decreased by adjustments made on the records of the Trustee or DTC
or its nominee, as the case may be, as hereinafter provided.

         The Class B4, Class B5 or Class B6 Certificates sold in offshore
transactions in reliance on Regulation S shall be issued initially in the form
of one or more permanent global Certificates in definitive, fully registered

                                       47
<PAGE>

form without interest coupons with the applicable legends set forth in Exhibit A
hereto added to the forms of such Certificates (each, a "Regulation S Global
Security"), which shall be deposited on behalf of the subscribers for such
Certificates represented thereby with the Trustee, as custodian for DTC and
registered in the name of a nominee of DTC, duly executed and authenticated by
the Trustee as hereinafter provided. The aggregate principal amounts of the
Regulation S Global Securities may from time to time be increased or decreased
by adjustments made on the records of the Trustee or DTC or its nominee, as the
case may be, as hereinafter provided.

         (d) The Class B4, Class B5, or Class B6 Certificates sold to an
"accredited investor" under Rule 501(a)(1), (2), (3) or (7) under the Act shall
be issued initially in the form of one or more Definitive Certificates.

         Section 3.02. Registration.

         The Trustee is hereby appointed, and hereby accepts its appointment as,
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
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 Trustee and the
appointment of a successor trustee. The Certificate Registrar may appoint, by a
written instrument delivered to the Holders and the Master Servicer, any bank or
trust 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 Trustee shall execute, and the
Trustee or any 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 Principal 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 Principal Amount as the Certificate
surrendered, upon surrender of the Certificate to be exchanged at the office of

                                       48
<PAGE>

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 Trustee shall execute, and the Trustee or 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 or a Regulation S Global
Security, whether upon original issuance or subsequent transfer, each Holder of
such a Certificate acknowledges the restrictions on the transfer of such
Certificate set forth thereon and agrees that it will transfer such a
Certificate only as provided herein. In addition, each Holder of a Regulation S
Global Security shall be deemed to have represented and warranted to the
Trustee, the Certificate Registrar and any of their respective successors that:
(i) such Person is not a U.S. person within the meaning of Regulation S and was,
at the time the buy order was originated, outside the United States and (ii)
such Person understands that such Certificates have not been registered under
the Securities Act of 1933, as amended (the "Act"), and that (x) until the
expiration of the 40-day distribution compliance period (within the meaning of
Regulation S), no offer, sale, pledge or other transfer of such Certificates or
any interest therein shall be made in the United States or to or for the account
or benefit of a U.S. person (each as defined in Regulation S), (y) if in the
future it decides to offer, resell, pledge or otherwise transfer such
Certificates, such Certificates may be offered, resold, pledged or otherwise
transferred only (A) to a person which the seller reasonably believes is a
"qualified institutional buyer" (a "QIB") as defined in Rule 144A under the Act,
that is purchasing such Certificates for its own account or for the account of a
qualified institutional buyer to which notice is given that the transfer is
being made in reliance on Rule 144A or (B) in an offshore transaction (as
defined in Regulation S) in compliance with the provisions of Regulation S, in
each case in compliance with the requirements of this Agreement; and it will
notify such transferee of the transfer restrictions specified in this Section.

         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 the Placement Agent, an affiliate (as defined in Rule 405
         under the Act) of the Depositor or the Placement Agent or (y) being
         made to a QIB by a transferor that has provided the Trustee with a
         certificate in the form of Exhibit F 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 by a transferor who furnishes to the Trustee a letter of the
         transferee substantially in the form of Exhibit G hereto.

                                       49
<PAGE>

         (d) No transfer of an ERISA-Restricted Certificate in the form of a
Definitive Certificate shall be made to any Person unless the Trustee has
received (A) a certificate substantially in the form of Exhibit H (or Exhibit
D-1 in the case of the Class R Certificate) hereto from such transferee, or (B)
an Opinion of Counsel satisfactory to the Trustee and the Depositor to the
effect that the purchase and holding of such a Certificate will not constitute
or result in the assets of the Trust Fund being deemed to be "plan assets"
subject to the prohibited transaction provisions of ERISA, Section 4975 of the
Code or substantially similar rules under state, local or other federal law
("Similar Law") and will not subject the Trustee, the Master Servicer, any
Servicer or the Depositor to any obligation in addition to those undertaken in
the Agreement; provided, however, that the Trustee 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 Trustee has rendered an Opinion of
Counsel to the effect that the purchase and holding of an ERISA-Restricted
Certificate (other than the Class R 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 ERISA, Section 4975 of
the Code or Similar Law. Each transferee of an ERISA-Restricted Certificate that
is a Book Entry Certificate shall be deemed to have made the representations set
forth in Exhibit H. The preparation and delivery of the certificate and opinions
referred to above shall not be an expense of the Trust Fund, the Trustee or the
Depositor. Notwithstanding the foregoing, no opinion or certificate shall be
required for the initial issuance of the ERISA-Restricted Certificates.

         The Trustee shall have no obligations to monitor transfers of
Book-Entry Certificates that are ERISA-Restricted Certificates or Restricted
Global Securities and shall have no liability for transfers of such Certificates
in violation of the transfer restrictions.

         Notwithstanding anything to the contrary herein, any purported transfer
of an ERISA-Restricted Certificate in the form of a Definitive Certificate to or
on behalf of an employee benefit plan subject to Title I of ERISA, a plan
subject to Section 4975 of the Code or a plan subject to Similar Law without the
delivery to the Trustee of a certificate substantially in the form of Exhibit H
(or Exhibit D-1 in the case of the Class R Certificate) or an Opinion of Counsel
satisfactory to the Trustee as described above shall be void and of no effect.
The Trustee 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) or for making any payments due on such Certificate to the
Holder thereof or taking any other action with respect to such Holder under the
provisions of this Agreement so long as the transfer was registered in
accordance with the foregoing requirements. The Trustee shall be entitled, but
not obligated, to recover from any Holder of any ERISA-Restricted Certificate
that was in fact an employee benefit plan subject to Title I of ERISA, a plan
subject to Section 4975 of the Code or a plan subject to Similar Law, or a
Person acting on behalf of any such plan at the time it became a Holder or, at
such subsequent time as it became such a plan or Person acting on behalf of such
a plan, all payments made on such ERISA-Restricted Certificate at and after
either such time. Any such payments so recovered by the Trustee shall be paid
and delivered by the Trustee to the last preceding 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 Certificate.

                                       50
<PAGE>

         (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, in the case of clause (ii),
such person is (A) 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 Trustee 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 Trustee an affidavit in substantially the form attached hereto as
Exhibit D-1 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 an affidavit in substantially the form attached hereto as
Exhibit D-2. In addition, the Trustee 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 Depositor and the
Trustee satisfactory in form and substance to the Depositor, 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 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 Trustee shall not be
under any 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 maturity of 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
Trustee 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 Organization,
agent or nominee thereof, or Non-permitted Foreign Holder. The Trustee 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 Trustee shall be paid and delivered to the last
preceding Holder of such Residual Certificate.

                                       51
<PAGE>

         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 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 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), for 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 of a Residual Certificate, by such Holder's acceptance
thereof, shall be deemed for all purposes to have consented to the provisions of
this section.

         (h) Notwithstanding any provision to the contrary herein, so long as a
Global Security representing any of the Class B4, Class B5 or Class B6
Certificates remains outstanding and is held by or on behalf of DTC, transfers
of a Global Security representing any such Certificates, in whole or in part,
shall only be made in accordance with Section 3.01 and this Section 3.03(h).

                   (A) Subject to clauses (B) and (C) of this Section 3.03(h),
               transfers of a Global Security representing any of the Class B4,
               Class B5 or Class B6 Certificates shall be limited to transfers
               of such Global Security, in whole or in part, to nominees of DTC
               or to a successor of DTC or such successor's nominee.

                   (B) Restricted Global Security to Regulation S Global
               Security. If a holder of a beneficial interest in a Restricted
               Global Security deposited with or on behalf of DTC wishes at any
               time to exchange its interest in such Restricted Global Security
               for an interest in a Regulation S Global Security, or to transfer
               its interest in such Restricted Global Security to a Person who
               wishes to take delivery thereof in the form of an interest in a
               Regulation S Global Security, such holder, provided such holder
               is not a U.S. person, may, subject to the rules and procedures of
               DTC, exchange or cause the exchange of such interest for an
               equivalent beneficial interest in the Regulation S Global
               Security. Upon receipt by the Trustee, as Certificate Registrar,
               of (I) instructions from DTC directing the Trustee, as
               Certificate Registrar, to be credited a beneficial interest in a
               Regulation S Global Security in an amount equal to the beneficial
               interest in such Restricted Global Security to be exchanged but
               not less than the minimum denomination applicable to such
               holder's Certificates held through a Regulation S Global
               Security, (II) a written order given in accordance with DTC's
               procedures containing information regarding the participant
               account of DTC and, in the case of a transfer pursuant to and in
               accordance with Regulation S, the Euroclear or Clearstream

                                       52
<PAGE>

               account to be credited with such increase and (III) a certificate
               in the form of Exhibit A hereto given by the holder of such
               beneficial interest stating that the exchange or transfer of such
               interest has been made in compliance with the transfer
               restrictions applicable to the Global Securities, including that
               the holder is not a U.S. person, and pursuant to and in
               accordance with Regulation S, the Trustee, as Certificate
               Registrar, shall reduce the principal amount of the Restricted
               Global Security and increase the principal amount of the
               Regulation S Global Security by the aggregate principal amount of
               the beneficial interest in the Restricted Global Security to be
               exchanged, and shall instruct Euroclear or Clearstream, as
               applicable, concurrently with such reduction, to credit or cause
               to be credited to the account of the Person specified in such
               instructions a beneficial interest in the Regulation S Global
               Security equal to the reduction in the principal amount of the
               Restricted Global Security.

                   (C) Regulation S Global Security to Restricted Global
               Security. If a holder of a beneficial interest in a Regulation S
               Global Security deposited with or on behalf of DTC wishes at any
               time to transfer its interest in such Regulation S Global
               Security to a Person who wishes to take delivery thereof in the
               form of an interest in a Restricted Global Security, such holder
               may, subject to the rules and procedures DTC, exchange or cause
               the exchange of such interest for an equivalent beneficial
               interest in a Restricted Global Security. Upon receipt by the
               Trustee, as Certificate Registrar, of (I) instructions from DTC
               directing the Trustee, as Certificate Registrar, to cause to be
               credited a beneficial interest in a Restricted Global Security in
               an amount equal to the beneficial interest in such Regulation S
               Global Security to be exchanged but not less than the minimum
               denomination applicable to such holder's Certificates held
               through a Restricted Global Security, to be exchanged, such
               instructions to contain information regarding the participant
               account with DTC to be credited with such increase, and (II) a
               certificate in the form of Exhibit L-2 hereto given by the holder
               of such beneficial interest and stating, among other things, that
               the Person transferring such interest in such Regulation S Global
               Security reasonably believes that the Person acquiring such
               interest in a Restricted Global Security is a QIB, is obtaining
               such beneficial interest in a transaction meeting the
               requirements of Rule 144A and in accordance with any applicable
               securities laws of any State of the United States or any other
               jurisdiction, then the Trustee, as Certificate Registrar, will
               reduce the principal amount of the Regulation S Global Security
               and increase the principal amount of the Restricted Global
               Security by the aggregate principal amount of the beneficial
               interest in the Regulation S Global Security to be transferred
               and the Trustee, as Certificate Registrar, shall instruct DTC,
               concurrently with such reduction, to credit or cause to be
               credited to the account of the Person specified in such
               instructions a beneficial interest in the Restricted Global
               Security equal to the reduction in the principal amount of the
               Regulation S Global Security.

                                       53
<PAGE>

                   (D) Other Exchanges. In the event that a Global Security is
               exchanged for Certificates in definitive registered form without
               interest coupons, pursuant to Section 3.09(c) hereof, such
               Certificates may be exchanged for one another only in accordance
               with such procedures as are substantially consistent with the
               provisions above (including certification requirements intended
               to insure that such transfers comply with Rule 144A, comply with
               Rule 501(a)(1), (2), (3) or (7) or are to non-U.S. persons in
               compliance with Regulation S under the Act, as the case may be),
               and as may be from time to time adopted by the Trustee.

                   (E) Restrictions on U.S. Transfers. Transfers of interests in
               the Regulation S Global Security to U.S. persons (as defined in
               Regulation S) shall be limited to transfers made pursuant to the
               provisions of Section 3.03(h)(C).

         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 Trustee or the
Certificate Registrar.

         Section 3.05. Replacement of Certificates.

         If (i) any Certificate is mutilated and is surrendered to the Trustee
or any Authenticating Agent or (ii) the Trustee or any Authenticating Agent
receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and there is delivered to the Trustee or the Authenticating Agent
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 and any Authenticating
Agent that such destroyed, lost or stolen Certificate has been acquired by a
bona fide purchaser, the Trustee shall execute and the Trustee or any
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 Principal Amount. Upon the issuance of any new
Certificate under this Section 3.05, the Trustee and Authenticating Agent may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee or the Authenticating Agent) 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.

         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 Trustee, the Certificate
Registrar and any agent of any of them may 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 Trustee, the Certificate Registrar nor any
agent of any of them shall be affected by notice to the contrary.

                                       54
<PAGE>

         Section 3.07. Temporary Certificates.

         (a) Pending the preparation of definitive Certificates, upon the order
of the Depositor, the Trustee shall execute and 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 Trustee without charge to the
Holder. Upon surrender for cancellation of any one or more temporary
Certificates, the Trustee shall execute and authenticate and deliver in exchange
therefor a like aggregate Certificate Principal Amount 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.

         The Trustee may appoint a Paying Agent (which may be the Trustee) for
the purpose of making distributions to Certificateholders hereunder. The Trustee
shall cause such Paying Agent (if other than the Trustee) 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
Certificateholders in an Eligible 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 Trustee to any such Paying Agent
for the purpose of making distributions shall be paid to Certificateholders on
each Distribution Date and any amounts not so paid shall be returned on such
Distribution Date to the Trustee. If the Paying Agent is not the Trustee, the
Trustee 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, to be delivered to The Depository Trust Company,
the initial Clearing Agency, by, or on behalf of, the Depositor. 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):

                                       55
<PAGE>

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

             (ii) the Depositor, the Master Servicer, the Paying Agent, the
         Certificate Registrar and the Trustee may 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 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.

         (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 Trustee
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 Depositor advises the Trustee 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
Trustee or the Depositor is unable to locate a qualified successor, (ii) the
Depositor, at its option, advises the Trustee in writing that it elects to
terminate the book-entry system through the Clearing Agency or (iii) after the
occurrence of an Event of Default, Certificate Owners representing beneficial
interests aggregating not less than 50% of the Class Principal Amount of a Class
of Book-Entry Certificates identified as such to the Trustee by an Officer's
Certificate from the Clearing Agency advise the Trustee 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 Trustee
shall notify or cause the Certificate Registrar to 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
Trustee of the Book-Entry Certificates by the Clearing Agency, accompanied by
registration instructions from the Clearing Agency for registration, the Trustee
shall issue the Definitive Certificates. Neither the Transferor 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 Trustee, to the extent
applicable, with respect to such Definitive Certificates and the Trustee shall
recognize the holders of the Definitive Certificates as Certificateholders
hereunder.

                                       56
<PAGE>

                                   ARTICLE IV

                        ADMINISTRATION OF THE TRUST FUND

         Section 4.01. Collection Account.

         (a) On the Closing Date, the Master Servicer shall open and shall
thereafter maintain a segregated account held in trust (the "Collection
Account"), entitled "Aurora Loan Services Inc., as Master Servicer, in trust for
the benefit of the Holders of Structured Adjustable Rate Mortgage Loan Trust
Mortgage Pass-Through Certificates, Series 2004-3AC." The Collection Account
shall relate solely to the Certificates issued by the Trust Fund hereunder, and
funds in such Collection Account shall not be commingled with any other monies.

         (b) The Collection Account shall be an Eligible Account. If an existing
Collection Account ceases to be an Eligible Account, the Master Servicer shall
establish a new Collection Account that is an Eligible Account within 30 days
and transfer all funds on deposit in such existing Collection Account into such
new Collection Account.

         (c) The Master Servicer shall give to the Trustee prior written notice
of the name and address of the depository institution at which the Collection
Account is maintained and the account number of such Collection Account. No
later than 2:00 p.m. New York City time on each Deposit Date, the entire amount
on deposit in the Collection Account (subject to permitted withdrawals set forth
in Section 4.02), not including any amounts which are to be excluded from the
Available Distribution Amount for such Distribution Date pursuant to clauses (A)
through (G) of paragraph (i) of the definition thereof (other than any amounts
due or reimbursable to the Trustee pursuant to this Agreement), shall be
remitted to the Trustee for deposit into the Certificate Account by wire
transfer in immediately available funds. The Master Servicer, at its option, may
choose to make daily remittances from the Collection Account to the Trustee for
deposit into the Certificate Account.

         (d) The Master Servicer shall deposit or cause to be deposited into the
Collection Account, no later than the Business Day following the Closing Date,
any amounts representing Scheduled Payments on the Mortgage Loans due after the
Cut-off Date and received by the Master Servicer on or before the Closing Date.
Thereafter, the Master Servicer shall deposit or cause to be deposited in the
Collection Account on the applicable Remittance Date the following amounts
received or payments made by it (other than in respect of principal of and
interest on the Mortgage Loans due on or before the Cut-Off Date):

               (i) all payments on account of principal, including Principal
         Prepayments and late collections, on the Mortgage Loans;

               (ii) all payments on account of interest on the Mortgage Loans
         (other than payments due prior to the Cut-off Date), net of the
         applicable Servicing Fee and Master Servicing Fee with respect to each
         such Mortgage Loan, but only to the extent of the amount permitted to
         be withdrawn or withheld from the Collection Account in accordance with
         Sections 5.04 and 9.21;

                                       57
<PAGE>

               (iii) any unscheduled payment or other recovery with respect to a
         Mortgage Loan not otherwise specified in this paragraph (d), including
         any Subsequent Recovery, all Net Liquidation Proceeds with respect to
         the Mortgage Loans and REO Property, and all amounts received in
         connection with the operation of any REO Property, net of any unpaid
         Servicing Fees and Master Servicing Fees with respect to such Mortgage
         Loans, but only to the extent of the amount permitted to be withdrawn
         or withheld from the Collection Account in accordance with Sections
         5.04 and 9.21; provided that if the applicable Servicer is also the
         Retained Interest Holder with respect to any Mortgage Loan, payments on
         account of interest on the Mortgage Loans as to which such Servicer is
         the Retained Interest Holder may also be made net of the related
         Retained Interest with respect to each such Mortgage Loan.

               (iv) all Insurance Proceeds;

               (v) all Advances made by the Master Servicer or the applicable
         Servicer pursuant to Section 5.04 or the applicable Servicing
         Agreement; and

               (vi) all proceeds of any Mortgage Loan purchased by any Person.

         (e) Funds in the Collection Account may be invested in Eligible
Investments (selected by and at the written direction of the Master Servicer)
which shall mature not later than the earlier of (a) the Deposit Date (except
that if such Eligible Investment is an obligation of the Trustee or the Paying
Agent, if other than the Trustee, and such Collection Account is maintained with
the Trustee or the Paying Agent, if other than the Trustee, then such Eligible
Investment shall mature not later than such applicable Distribution Date) or (b)
the day on which the funds in such Collection Account are required to be
remitted to the Trustee for deposit into the Certificate Account, and any such
Eligible Investment shall not be sold or disposed of prior to its maturity. All
such Eligible Investments shall be made in the name of the Master Servicer in
trust for the benefit of the Trustee and Holders of Structured Adjustable Rate
Mortgage Loan Trust, Mortgage Pass-Through Certificates, Series 2004-3AC. All
income and gain realized from any such investment shall be for the benefit of
the Master Servicer, while such Collection Account is maintained by the Master
Servicer, and shall be subject to its withdrawal or order from time to time and
shall not be part of the Trust Fund. The amount of any losses incurred in
respect of any such investments shall be deposited in such Collection Account by
the Master Servicer out of its own funds, without any right of reimbursement
therefor, immediately as realized. The foregoing requirements for deposit in the
Collection Account are exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments of interest on funds in the
Collection Account and payments in the nature of late payment charges or
assumption fees need not be deposited by the Master Servicer in the Collection
Account and may be retained by the Master Servicer or the applicable Servicer as
additional servicing compensation. If the Master Servicer deposits in the
Collection Account any amount not required to be deposited therein, it may at
any time withdraw such amount from such Collection Account.

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<PAGE>

         Section 4.02. Application of Funds in the Collection Account.

         The Master Servicer may, from time to time, make, or cause to be made,
withdrawals from the Collection Account for the following purposes:

               (i) to reimburse itself or any Servicer for Advances made by it
         or by such Servicer pursuant to Section 5.04 or the applicable
         Servicing Agreement; the Master Servicer's right to reimburse itself
         pursuant to this subclause (i) is limited to amounts received on or in
         respect of particular Mortgage Loans (including, for this purpose,
         Liquidation Proceeds and amounts representing Insurance Proceeds with
         respect to the property subject to the related Mortgage) which
         represent late recoveries (net of the applicable Servicing Fee and the
         Master Servicing Fee) of payments of principal or interest respecting
         which any such Advance was made, it being understood, in the case of
         any such reimbursement, that the Master Servicer's or Servicer's right
         thereto shall be prior to the rights of the Certificateholders;

               (ii) to reimburse itself or any Servicer for any Advances or
         Servicing Advances made by it or by such Servicer that it or such
         Servicer determines in good faith will not be recoverable from amounts
         representing late recoveries of payments of principal or interest
         respecting the particular Mortgage Loan as to which such Advance or
         Servicing Advance was made or from Liquidation Proceeds or Insurance
         Proceeds with respect to such Mortgage Loan, it being understood, in
         the case of any such reimbursement, that such Master Servicer's or
         Servicer's right thereto shall be prior to the rights of the
         Certificateholders;

               (iii) to reimburse itself or any Servicer from Liquidation
         Proceeds for Liquidation Expenses and for amounts expended by it
         pursuant to Sections 9.20 and 9.22(a) or the applicable Servicing
         Agreement in good faith in connection with the restoration of damaged
         property and, to the extent that Liquidation Proceeds after such
         reimbursement exceed the unpaid principal balance of the related
         Mortgage Loan, together with accrued and unpaid interest thereon at the
         applicable Mortgage Rate less the applicable Servicing Fee and the
         Master Servicing Fee for such Mortgage Loan to the Due Date next
         succeeding the date of its receipt of such Liquidation Proceeds, to pay
         to itself out of such excess the amount of any unpaid assumption fees,
         late payment charges or other Mortgagor charges on the related Mortgage
         Loan and to retain any excess remaining thereafter as additional
         servicing compensation, it being understood, in the case of any such
         reimbursement or payment, that such Master Servicer's or Servicer's
         right thereto shall be prior to the rights of the Certificateholders;

               (iv) in the event it has elected not to pay itself the Master
         Servicing Fee out of any Mortgagor payment on account of interest or
         other recovery with respect to a particular Mortgage Loan prior to the
         deposit of such Mortgagor payment or recovery in the Collection
         Account, to pay to itself the Master Servicing Fee for each
         Distribution Date and any unpaid Master Servicing Fees for prior
         Distribution Dates, as reduced pursuant to Section 5.05, from any
         Mortgagor payment as to interest or such other recovery with respect to
         that Mortgage Loan, as is permitted by this Agreement;

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               (v) to reimburse itself or any Servicer for expenses incurred by
         and recoverable by or reimbursable to it or such Servicer pursuant to
         Section 9.04, 9.06, 9.16 or 9.22(a) or pursuant to the applicable
         Servicing Agreement, and to reimburse itself for any expenses
         reimbursable to it pursuant to Section 10.01(c);

               (vi) to pay to the applicable Person, with respect to each
         Mortgage Loan or REO Property acquired in respect thereof that has been
         repurchased by such Person pursuant to this Agreement, all amounts
         received thereon and not distributed on the date on which the related
         repurchase was effected;

               (vii) subject to Section 5.04, to pay to itself income earned on
         the investment of funds deposited in the Collection Account;

               (viii) to make payments to the Trustee for deposit into the
         Certificate Account in the amounts and in the manner provided for in
         Section 4.04;

               (ix) to make distributions of the Retained Interest to the
         Retained Interest Holder on each Distribution Date (other than any
         Retained Interest not deposited into the Collection Account in
         accordance with Section 4.01(d)(iii));

               (x) to make payment to itself, the Trustee and others pursuant to
         any provision of this Agreement and to reimburse the Custodian pursuant
         to the Custodial Agreement, but only to the extent that the items
         reimbursed constitute "unanticipated expenses" within the meaning of
         Treasury Regulation Section 1.860G-1(b)(3)(ii);

               (xi) to withdraw funds deposited in error in the Collection
         Account;

               (xii) to clear and terminate any Collection Account pursuant to
         Section 7.02;

               (xiii) to reimburse a successor Master Servicer (solely in its
         capacity as successor Master Servicer), for any fee or advance
         occasioned by a termination of the Master Servicer, and the assumption
         of such duties by the Trustee or a successor Master Servicer appointed
         by the Trustee pursuant to Section 6.14, in each case to the extent not
         reimbursed by the terminated Master Servicer, it being understood, in
         the case of any such reimbursement or payment, that the right of the
         Master Servicer or the Trustee thereto shall be prior to the rights of
         the Certificateholders; and

               (xiv) to reimburse any Servicer for such amounts as are due
         thereto under the applicable Servicing Agreement and have not been
         retained by or paid to such Servicer to the extent provided in such
         Servicing Agreement.

         If provided in the related Servicing Agreement, each Servicer shall be
entitled to retain as additional servicing compensation any Prepayment Interest
Excess (to the extent not offset by Prepayment Interest Shortfalls). The
Servicers of the Participations shall be entitled to retain as additional
servicing compensation any Prepayment Penalty Amounts received with respect to
the Participations.

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         In connection with withdrawals pursuant to subclauses (i), (iii), (iv)
and (vi) above, the Master Servicer's or Servicer's entitlement thereto is
limited to collections or other recoveries on the related Mortgage Loan. The
Master Servicer shall therefore keep and maintain a separate accounting for each
Mortgage Loan it master services for the purpose of justifying any withdrawal
from the Collection Account it maintains pursuant to such subclause (i), (iii),
(iv) and (vi).

         In the event that the Master Servicer fails on any Deposit Date to
remit to the Trustee any amounts required to be so remitted to the Trustee
pursuant to subclause (viii) by such date, the Master Servicer shall pay the
Trustee, for the account of the Trustee, interest calculated at the "prime rate"
(as published in the "Money Rates" section of The Wall Street Journal) on such
amounts not timely remitted for the period from and including that Deposit Date
to but not including the related Distribution Date.

         Section 4.03. Reports to Certificateholders.

         (a) On each Distribution Date, the Trustee shall have prepared (based
solely on information provided by the Master Servicer) and shall make available
to each Certificateholder a report setting forth the following information (on
the basis of Mortgage Loan level information obtained from the applicable
Servicer and the Master Servicer):

               (i) the aggregate amount of the distribution to be made on such
         Distribution Date to the Holders of each Class of Certificates, other
         than any Class of Notional Certificates, to the extent applicable,
         allocable to principal on the Mortgage Loans, including any Subsequent
         Recovery, Liquidation Proceeds and Insurance Proceeds, stating
         separately the amount attributable to scheduled principal payments and
         unscheduled payments in the nature of principal in the Mortgage Pool;

               (ii) the aggregate amount of the distribution to be made on such
         Distribution Date to the Holders of each Class of Certificates
         allocable to interest, including any Accrual Amount added to the Class
         Principal Amount of any Class of Accrual Certificates;

               (iii) the amount, if any, of any distribution to the Holders of a
         Residual Certificate;

               (iv) (A) the aggregate amount of any Advances required to be made
         by or on behalf of the Master Servicer or any Servicer (or, if
         applicable, the Trustee) with respect to such Distribution Date, (B)
         the aggregate amount of such Advances actually made, and (C) the
         amount, if any, by which (A) above exceeds (B) above;

               (v) the Aggregate Principal Balance of the Mortgage Loans and the
         Pool Balance for such Distribution Date, after giving effect to
         payments allocated to principal reported under clause (i) above;

               (vi) the Class Principal Amount (or Class Notional Amount) of
         each Class of Certificates, to the extent applicable, as of such
         Distribution Date after giving effect to payments allocated to
         principal reported under clause (i) above (and to the addition of any
         Accrual Amount in the case of any Class of Accrual Certificates),
         separately identifying any reduction of any of the foregoing
         Certificate Principal Amounts due to Realized Losses:

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               (vii) any Realized Losses realized with respect to the Mortgage
         Loans (x) in the applicable Prepayment Period and (y) in the aggregate
         since the Cut-off Date, stating separately the amount of Special Hazard
         Losses, Fraud Losses and Bankruptcy Losses and the aggregate amount of
         such Realized Losses, and the remaining Special Hazard Loss Amount,
         Fraud Loss Amount and Bankruptcy Loss Amount;

               (viii) the amount of the Master Servicing Fees, Servicing Fees
         and Trustee Fee paid during the Due Period to which such distribution
         relates;

               (ix) the number and aggregate Scheduled Principal Balance of
         Mortgage Loans, as reported to the Trustee by the Master Servicer, (a)
         remaining outstanding (b) delinquent one month, (c) delinquent two
         months, (d) delinquent three or more months, and (e) as to which
         foreclosure proceedings have been commenced as of the close of business
         on the last Business Day of the calendar month immediately preceding
         the month in which such Distribution Date occurs;

               (x) the deemed aggregate principal balance of all REO Properties
         as of the close of business on the last Business Day of the calendar
         month immediately preceding the month in which such Distribution Date
         occurs;

               (xi) with respect to substitution of Mortgage Loans in the
         preceding calendar month, the aggregate Scheduled Principal Balance of
         all such Deleted Mortgage Loans, and of all Qualifying Substitute
         Mortgage Loans;

               (xii) the aggregate outstanding Interest Shortfalls and Net
         Prepayment Interest Shortfalls, if any, for each Class of Certificates,
         after giving effect to the distribution made on such Distribution Date;

               (xiii) the Certificate Interest Rate applicable to such
         Distribution Date with respect to each Class of Certificates;

               (xiv) if applicable, the amount of any shortfall (i.e., the
         difference between the aggregate amounts of principal and interest
         which Certificateholders would have received if there were sufficient
         available amounts in the Certificate Account and the amounts actually
         distributed); and

               (xv) the Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls
         with respect to each Class of Certificates immediately following such
         Distribution Date, all amounts paid on such Distribution Date to each
         Class of Certificates in respect of Basis Risk Shortfalls and Unpaid
         Basis Risk Shortfalls and the amounts deemed distributed on the Class
         AX and Class PAX Certificates on such Distribution Date under Section
         5.02(f).

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         In the case of information furnished pursuant to subclauses (i), (ii)
and (viii) above, the amounts shall be expressed as a dollar amount per $1,000
of original principal amount of Certificates.

         The Trustee will make such report and additional loan level information
(and, at its option, any additional files provided by the Master Servicer
containing the same information in an alternative format) available each month
to Certificateholders and the Rating Agencies via the Trustee's internet
website. The Trustee's internet website shall initially be located at
www.jpmorgan.com/sfr. Assistance in using the website can be obtained by calling
the Trustee's customer service desk at 1-877-722-1095. Such parties that are
unable to use the website are entitled to have a paper copy mailed to them via
first class mail by calling the customer service desk and indicating such. The
Trustee shall have the right to change the way such statements are distributed
in order to make such distribution more convenient and/or more accessible to the
above parties and the Trustee shall provide timely and adequate notification to
all above parties regarding any such changes.

         The foregoing information and reports shall be prepared and determined
by the Trustee based solely on Mortgage Loan data provided to the Trustee by the
Master Servicer no later than four Business Days prior to the Distribution Date.
In preparing or furnishing the Mortgage Loan data to the Trustee, the Master
Servicer shall be entitled to rely conclusively on the accuracy of the
information or data regarding the Mortgage Loans and the related REO Property
that has been provided to the Master Servicer by each Servicer, and the Master
Servicer shall not be obligated to verify, recompute, reconcile or recalculate
any such information or data. The Trustee shall be entitled to conclusively rely
on the Mortgage Loan data provided by the Master Servicer and shall have no
liability for any errors in such Mortgage Loan data.

         (b) 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, will be promptly forwarded to the Master
Servicer, the Master Servicer 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 Servicing Agreement, shall use reasonable
efforts to obtain such information and documentation from such Servicer, and
provide) to such Certificateholder such reports and access to information and
documentation regarding the Mortgage Loans as such Certificateholder 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 investment in the Certificates; provided, however, that the Master Servicer
shall be entitled to be reimbursed by such Certificateholder for such Master
Servicer's actual expenses incurred in providing such reports and access.

         (c) Within 90 days, or such shorter period as may be required by
statute or regulation, after the end of each calendar year, the Trustee shall,
upon written request, send to each Person who at any time during the calendar
year was a Certificateholder of record, and make available to Certificate Owners
(identified as such by the Clearing Agency) in accordance with applicable
regulations, a report summarizing the items provided to Certificateholders
pursuant to Section 4.03(a) on an annual basis as may be required to enable such
Holders to prepare their federal income tax returns. Such information shall
include the amount of original issue discount accrued on each Class of
Certificates and information regarding the expenses of the Trust Fund. Such
requirement shall be deemed to have been satisfied to the extent such
information is provided pursuant to applicable requirements of the Code from
time to time in effect. The Master Servicer shall provide the Trustee with
Mortgage Loan level information as is necessary for the Trustee to prepare such
reports.

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         Section 4.04. Certificate Account.

         (a) The Trustee shall establish and maintain in its name, as trustee, a
trust account (the "Certificate Account"), to be held in trust for the benefit
of the Certificateholders until disbursed pursuant to the terms of this
Agreement. The Certificate Account shall be an Eligible Account. If the existing
Certificate Account ceases to be an Eligible Account, the Trustee shall
establish a new Certificate Account that is an Eligible Account within 20
Business Days and transfer all funds on deposit in such existing Certificate
Account into such new Certificate Account. The Certificate Account shall relate
solely to the Certificates issued hereunder and funds in the Certificate Account
shall be held separate and apart from and shall not be commingled with any other
monies including, without limitation, other monies of the Trustee held under
this Agreement.

         (b) The Trustee shall cause to be deposited into the Certificate
Account on the day on which, or, if such day is not a Business Day, the Business
Day immediately following the day on which, any monies are remitted by the
Master Servicer to the Trustee all such amounts. The Trustee shall make
withdrawals from the Certificate Account only for the following purposes:

               (i) to withdraw amounts deposited in the Certificate Account in
         error;

               (ii) to pay itself any investment income earned with respect to
         funds in the Certificate Account invested in Eligible Investments as
         set forth in subsection (c) below, and to make payments to itself prior
         to making distributions pursuant to Section 5.02 for any expenses or
         other indemnification owing to the Trustee and others pursuant to any
         provision of this Agreement;

               (iii) to make payments of the Master Servicing Fee (to the extent
         not already withheld or withdrawn from the Collection Account by the
         Master Servicer) to the Master Servicer;

               (iv) to make distributions to the Certificateholders pursuant to
         Article V; and

               (v) to clear and terminate the Certificate Account pursuant to
         Section 7.02.

         (c) The Trustee may invest, or cause to be invested, funds held in the
Certificate Account, which funds, if invested, shall be invested in Eligible
Investments (which may be obligations of the Trustee). All such investments must
mature no later than the next Distribution Date, and shall not be sold or
disposed of prior to their maturity. All such Eligible Investments will be made
in the name of the Trustee (in its capacity as such) or its nominee. All income
and gain realized from any such investment shall be paid to the Trustee and
shall be subject to its withdrawal on order from time to time. The amount of any
losses incurred in respect of any such investments shall be paid by the Trustee
for deposit in the Certificate Account out of its own funds, without any right
of reimbursement therefor, immediately as realized. Funds held in the
Certificate Account that are not invested shall be held in cash.

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         Section 4.05. [Reserved].

         Section 4.06. Certain Provisions with Respect to the Participations.

         If the Trustee shall not have received a payment with respect to any
Participation by the date on which such payment was due and payable pursuant to
the terms thereof, the Trustee shall make demand upon the Participation Master
Servicer for immediate payment, and may, and at the direction of a majority (by
Voting Interests) of the Certificateholders shall, take any available legal
action, including the prosecution of any claims in connection therewith. The
Depositor shall cooperate with the Trustee in connection with any such demand or
action to the extent reasonably requested by the Trustee. The reasonable legal
fees and expenses incurred by the Trustee in connection with the prosecution of
any such legal action shall be reimbursable to the Trustee from the Trust Fund.

                                    ARTICLE V

                    DISTRIBUTIONS TO HOLDERS OF CERTIFICATES

         Section 5.01. Distributions Generally.

         (a) Subject to Section 7.01 with respect to the final distribution on
the Certificates, on each Distribution Date the Trustee or the Paying Agent
shall make distributions in accordance with this Article V. Such distributions
shall be made by check mailed to each Certificateholder's address as it appears
on the Certificate Register of the Certificate Registrar (which shall initially
be the Trustee) or, upon written request made to the Trustee at least five
Business Days prior to the related Distribution Date to any Certificateholder 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 Corporate Trust Office.
Wire transfers may 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
Certificate and at such time such final payment in retirement of the Residual
Certificate will be made only upon presentation and surrender of such
Certificate at the Corporate Trust Office of the Trustee or at the office of its
designated presenting agent in New York City. 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
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 Certificate Principal Amounts (or initial Notional
Amounts).

         Section 5.02. Distributions from the Certificate Account.

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<PAGE>

         (a) On each Distribution Date, the Trustee (or the Paying Agent on
behalf of the Trustee) shall withdraw from the Certificate Account the Available
Distribution Amount, and shall distribute such amount to the Holders of record
of each Class of Certificates, in the following order of priority:

               (i) to payment of the Trustee Fee for such Distribution Date;

               (ii) from the remaining Available Distribution Amount, to each
         Class of Senior Certificates, the Accrued Certificate Interest thereon
         for such Distribution Date, as reduced by such Class's allocable share
         of any Net Prepayment Interest Shortfalls for such Distribution Date;
         provided, however, that any shortfall in available amounts for the
         Mortgage Pool shall be allocated among the Classes of Certificates in
         proportion to the amount of Accrued Certificate Interest (as so
         reduced) that would otherwise be distributable thereon; provided,
         further, however, that payments that would otherwise be made to the
         Class AX or Class PAX Certificates hereunder shall be made to the Class
         A1, Class A2 or Class A3 Certificates or Subordinate Certificates to
         the extent required by Section 5.02(f);

               (iii) from the remaining Available Distribution Amount, to each
         Class of Senior Certificates, any related Interest Shortfall for such
         Distribution Date; provided, however, that any shortfall in available
         amounts shall be allocated among the Classes of Certificates in
         proportion to the Interest Shortfall for each such Class on such
         Distribution Date;

               (iv) from the remaining Available Distribution Amount, to the
         Senior Certificates (other than any Class of Notional Certificates), an
         amount equal to the Senior Principal Distribution Amount in reduction
         of the Class Principal Amounts thereof, sequentially as follows:

                    (A) to the Class R Certificate, in reduction of its Class
                Principal Amount, until its Class Principal Amount has been
                reduced to zero; and

                    (B) pro rata, to the Class A1, Class A2 and Class A3
                Certificates, in reduction of their Class Principal Amounts,
                until their Class Principal Amounts thereof have been reduced to
                zero;

               (v) from the remaining Available Distribution Amount, to the
         Subordinated Certificates, in the following order of priority:

                    (A) to the Class B1 Certificates, the Accrued Certificate
                Interest thereon for such Distribution Date, as reduced by such
                Class's allocable share of any Net Prepayment Interest
                Shortfalls for such Distribution Date;

                    (B) to the Class B1 Certificates, any Interest Shortfall for
                such Class on such Distribution Date;

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<PAGE>

                    (C) to the Class B1 Certificates, in reduction of the Class
                Principal Amount thereof, such Class's Subordinate Class
                Percentage of each Subordinate Principal Distribution Amount for
                such Distribution Date, except as provided in Section 5.02(c),
                until the Certificate Principal Balance thereof has been reduced
                to zero;

                    (D) to the Class B2 Certificates, the Accrued Certificate
                Interest thereon for such Distribution Date, as reduced by such
                Class's allocable share of any Net Prepayment Interest
                Shortfalls for such Distribution Date;

                    (E) to the Class B2 Certificates, any Interest Shortfall for
                such Class on such Distribution Date;

                    (F) to the Class B2 Certificates, in reduction of the
                Certificate Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                    (G) to the Class B3 Certificates, the Accrued Certificate
                Interest thereon for such Distribution Date, as reduced by such
                Class's allocable share of any Net Prepayment Interest
                Shortfalls for such Distribution Date;

                    (H) to the Class B3 Certificates, any Interest Shortfall for
                such Class on such Distribution Date;

                    (I) to the Class B3 Certificates, in reduction of the
                Certificate Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                    (J) to the Class B4 Certificates, the Accrued Certificate
                Interest thereon for such Distribution Date, as reduced by such
                Class's allocable share of any Net Prepayment Interest
                Shortfalls for such Distribution Date;

                    (K) to the Class B4 Certificates, any Interest Shortfall for
                such Class on such Distribution Date;

                    (L) to the Class B4 Certificates, in reduction of the
                Certificate Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Certificate Principal Balance thereof has
                been reduced to zero;

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<PAGE>

                    (M) to the Class B5 Certificates, the Accrued Certificate
                Interest thereon for such Distribution Date, as reduced by such
                Class's allocable share of any Net Prepayment Interest
                Shortfalls for such Distribution Date;

                    (N) to the Class B5 Certificates, any Interest Shortfall for
                such Class on such Distribution Date;

                    (O) to the Class B5 Certificates, in reduction of the
                Certificate Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Balance thereof has been
                reduced to zero;

                    (P) to the Class B6 Certificates, the Accrued Certificate
                Interest thereon for such Distribution Date, as reduced by such
                Class's allocable share of any Net Prepayment Interest
                Shortfalls for such Distribution Date;

                    (Q) to the Class B6 Certificates, any Interest Shortfall for
                such Class on such Distribution Date; and

                    (R) to the Class B6 Certificates, in reduction of the
                Certificate Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Certificate Principal Balance thereof has
                been reduced to zero.

         (b) Net Prepayment Interest Shortfalls shall be allocated among the
Certificates pro rata based on the Accrued Certificate Interest otherwise
distributable thereon.

         (c) (i) If on any Distribution Date the Credit Support Percentage for
the Class B1 Certificates is less than the Original Credit Support Percentage
for such Class, then, notwithstanding anything to the contrary in Section
5.02(a), no distribution of amounts described in clauses (ii) and (iii) of the
definition of Subordinate Principal Distribution Amount will be made in respect
of the Class B2, Class B3, Class B4, Class B5 or Class B6 Certificates on such
Distribution Date; (ii) If on any Distribution Date the Credit Support
Percentage for the Class B2 Certificates is less than the Original Credit
Support Percentage for such Class, then, notwithstanding anything to the
contrary in Section 5.02(a), no distribution of amounts described in clauses
(ii) and (iii) of the definition of Subordinate Principal Distribution Amount
will be made in respect of the Class B3, Class B4, Class B5 or Class B6
Certificates on such Distribution Date; (iii) If on any Distribution Date the
Credit Support Percentage for the Class B3 Certificates is less than the
Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B4, Class B5 or Class
B6 Certificates on such Distribution Date; (iv) If on any Distribution Date the
Credit Support Percentage for the Class B4 Certificates is less than the

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Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B5 or Class B6
Certificates on such Distribution Date; and (v) If on any Distribution Date the
Credit Support Percentage for the Class B5 Certificates is less than the
Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B6 Certificates on such
Distribution Date.

         Any amount not distributed in respect of any Class on any Distribution
Date pursuant to the immediately preceding paragraph will be allocated among the
remaining Subordinate Classes in proportion to their respective Certificate
Principal Amounts.

         (d) On each Distribution Date, the Trustee shall distribute to Holders
of the Class P Certificates any Prepayment Penalty Amounts related to the
Mortgage Pool for such Distribution Date.

         (e) On each Distribution Date, the Trustee shall distribute to the
Holder of the Class R Certificate any Available Distribution Amount remaining
for such Distribution Date after application of all amounts described in
paragraph (a) and (d) of this Section 5.02. Any distributions pursuant to this
paragraph (e) shall not reduce the Class Principal Amount of the Class R
Certificate.

         (f) On each Distribution Date on or prior to November 2008, amounts
otherwise payable to the Class AX or Class AX Certificates pursuant to Section
5.02(a)(ii), if any, will be distributed to the Class A1, Class A2, Class A3,
Class B1, Class B2, Class B3, Class B4, Class B5 and Class B6 Certificates in
respect of any Unpaid Basis Risk Shortfalls for such Distribution Date or any
prior Distribution Date. Such amounts will be distributed (i) first, pro rata,
to the Class A1, Class A2 and Class A3 Certificates and (ii) second,
sequentially, to the Class B1, Class B2, Class B3, Class B4, Class B5 and Class
B6 Certificates. The Class AX and Class PAX Certificates will contribute amounts
hereunder pro rata based on the amount of interest each such Class would
otherwise be entitled to receive on such Distribution Date. The amounts
distributed hereunder to the Class A1, Class A2, Class A3, Class B1, Class B2,
Class B3, Class B4, Class B5 and Class B6 Certificates with respect to any Basis
Risk Shortfalls shall be deemed for federal income tax purposes as having been
distributed to the Class AX and Class PAX Certificates, as applicable. The Class
AX and Class PAX Certificates shall have no right to reimbursement for such
amounts distributed pursuant to this section.

         (g) [Reserved].

         Section 5.03. Allocation of Realized Losses.

         (a) On any Distribution Date, the principal portion of each Realized
Loss (other than any Excess Loss) in respect of a Mortgage Loan shall be
allocated in the following order of priority:

                first, to the Class B6 Certificates, until the Class Principal
         Amount thereof has been reduced to zero;

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<PAGE>

                second, to the Class B5 Certificates, until the Class Principal
         Amount thereof has been reduced to zero;

                third, to the Class B4 Certificates, until the Class Principal
         Amount thereof has been reduced to zero;

                fourth, to the Class B3 Certificates, until the Class Principal
         Amount thereof has been reduced to zero;

                fifth, to the Class B2 Certificates, until the Class Principal
         Amount thereof has been reduced to zero;

                sixth, to the Class B1 Certificates, until the Class Principal
         Amount thereof has been reduced to zero; and

                seventh, to the Classes of Senior Certificates, pro rata, in
         accordance with their Class Principal Amounts; provided, that any such
         loss allocated to any Class of Accrual Certificates shall be allocated
         (subject to Section 5.03(c)) on the basis of the lesser of (x) the
         Class Principal Amount thereof immediately prior to the applicable
         Distribution Date and (y) the Class Principal Amount thereof on the
         Closing Date (as reduced by any Realized Losses previously allocated
         thereto); provided, however, that any Realized Losses otherwise
         allocable to the Class A2 Certificates pursuant to this Section 5.03
         shall be allocated to the Class A3 Certificates until the Class
         Principal Amount of such Class has been reduced to zero..

Notwithstanding the foregoing, the first $0.48 of principal portion of Realized
Losses shall not be allocated to any Class of Certificates.

         (b) With respect to any Distribution Date, the principal portion of any
Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the
Subordinate Certificates and the Senior Certificates and on the basis of the
Class Principal Amounts of the Classes of Subordinate Certificates and Senior
Certificates; provided, that any such loss allocated to any Class of Accrual
Certificates (and any Accrual Component) shall be allocated (subject to Section
5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof
immediately prior to the applicable Distribution Date and (y) the Class
Principal Amount thereof on the Closing Date (as reduced by any Realized Losses
previously allocated thereto).

         (c) Any Realized Losses allocated to a Class of Certificates pursuant
to Section 5.03(a) or (b) shall be allocated among the Certificates of such
Class in proportion to their respective Certificate Principal Amounts. Any
allocation of Realized Losses pursuant to this paragraph (c) shall be
accomplished by reducing the Certificate Principal Amount on the related
Distribution Date in accordance with Section 5.03(d).

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         (d) Realized Losses allocated in accordance with this Section 5.03
shall be allocated on the Distribution Date in the month following the month in
which such loss was incurred and, in the case of the principal portion thereof,
after giving effect to distributions made on such Distribution Date.

         (e) On each Distribution Date, the Subordinate Certificate Writedown
Amount for such date shall effect a corresponding reduction in the Certificate
Principal Amount of the lowest ranking Class of outstanding Subordinate
Certificates, which reduction shall occur on such Distribution Date after giving
effect to distributions made on such Distribution Date.

         (f) In the event that there is a recovery of an amount in respect of
principal of a Mortgage Loan, which amount had previously been allocated as a
Realized Loss to one or more Classes of Certificates, each outstanding Class to
which any portion of such Realized Loss had previously been allocated shall be
entitled to receive, on the Distribution Date in the month following the month
in which such recovery is received, its pro rata share (based on the Class
Principal Amount thereof) of such recovery, up to the amount of the portion of
such Realized Loss previously allocated to such Class. In the event that the
total amount of such recovery exceeds the amount of Realized Loss allocated to
the outstanding Classes in accordance with the preceding provisions, each
outstanding Class of Certificates shall be entitled to receive its pro rata
share of the amount of such excess, up to the amount of any unrecovered Realized
Loss previously allocated to such Class. Any such recovery allocated to a Class
of Certificates shall not further reduce the Certificate Principal Amount of
such Certificate. Any such amounts not otherwise allocated to any Class of
Certificates, pursuant to this subsection shall be treated as Principal
Prepayments for purposes of this Agreement.

         Section 5.04. Advances by the Master Servicer and the Trustee.

         (a) Advances shall be made in respect of each Deposit Date as provided
herein. If, on any Determination Date, the Master Servicer determines that any
Scheduled Payments due during the related Due Period (other than Balloon
Payments) have not been received, the Master Servicer shall, or shall cause the
applicable Servicer to, advance such amount, less an amount, if any, to be set
forth in an Officer's Certificate to be delivered to the Trustee on such
Determination Date, which if advanced the Master Servicer or such Servicer has
determined would not be recoverable from amounts received with respect to such
Mortgage Loan, including late payments, Liquidation Proceeds, Insurance Proceeds
or otherwise. If the Master Servicer determines that an Advance is required, it
shall on the Deposit Date immediately following such Determination Date either
(i) remit to the Trustee from its own funds (or funds advanced by the applicable
Servicer) for deposit in the Certificate Account immediately available funds in
an amount equal to such Advance, (ii) cause to be made an appropriate entry in
the records of the Collection Account that funds in such account being held for
future distribution or withdrawal have been, as permitted by this Section 5.04,
used by the Master Servicer to make such Advance, and remit such immediately
available funds to the Trustee for deposit in the Certificate Account or (iii)
make Advances in the form of any combination of clauses (i) and (ii) aggregating
the amount of such Advance. Any funds being held in the Collection Account for

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future distribution to Certificateholders and so used shall be replaced by the
Master Servicer from its own funds by remittance to the Trustee for deposit in
the Certificate Account on or before any future Deposit Date to the extent that
funds in the Certificate Account on such Deposit Date shall be less than
payments to Certificateholders required to be made on the related Distribution
Date. The Master Servicer and each Servicer shall be entitled to be reimbursed
from the Collection Account for all Advances made by it as provided in Section
4.02.

         (b) In the event that the Master Servicer fails for any reason to make
an Advance required to be made pursuant to Section 5.04(a) on or before the
Deposit Date, the Trustee, solely in its capacity as successor Master Servicer
pursuant to Section 6.14, shall, on or before the related Distribution Date,
deposit in the Certificate Account an amount equal to the excess of (a) Advances
required to be made by the Master Servicer or any Servicer that would have been
deposited in such Certificate Account over (b) the amount of any Advance made by
the Master Servicer or such Servicer with respect to such Distribution Date;
provided, however, that the Trustee shall be required to make such Advance only
if it is not prohibited by law from doing so and it has determined that such
Advance would be recoverable from amounts to be received with respect to such
Mortgage Loan, including late payments, Liquidation Proceeds, Insurance
Proceeds, or otherwise. The Trustee shall be entitled to be reimbursed from the
Certificate Account for Advances made by it pursuant to this Section 5.04 as if
it were the Master Servicer.

         Section 5.05. Compensating Interest Payments.

         The Master Servicer shall not be responsible for making any
Compensating Interest Payments not made by the Servicers. Any Compensating
Interest Payments made by the Servicers shall be a component of the Interest
Remittance Amount.

                                   ARTICLE VI

                    CONCERNING THE TRUSTEE; EVENTS OF DEFAULT

         Section 6.01. Duties of Trustee.

         (a) The Trustee, except during the continuance of an Event of Default
(of which a Responsible Officer of the Trustee shall have actual knowledge),
undertakes to perform such duties and only such duties as are specifically set
forth in this Agreement. Any permissive right of the Trustee provided for in
this Agreement shall not be construed as a duty of the Trustee. If an Event of
Default (of which a Responsible Officer of the Trustee shall have actual
knowledge) has occurred and has not otherwise been cured or waived, the Trustee
shall exercise such of the rights and powers vested in it by this Agreement and
use the same degree of care and skill in their exercise as a prudent 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 as the Master Servicer hereunder.

         (b) The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee 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 the Trustee shall

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not 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, to the Trustee pursuant to this Agreement, and
the Trustee shall not be required to recalculate or verify any numerical
information furnished to the Trustee pursuant to this Agreement.

         (c) The Trustee shall not have any liability arising out of or in
connection with this Agreement, except for its negligence or willful misconduct.
No provision of this Agreement shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act or its
own willful misconduct; provided, however, that:

               (i) 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 consent or direction of Holders of Certificates
         as provided in Section 6.19 hereof;

               (ii) For all purposes under this Agreement, the Trustee 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 Trustee when required
         to do so) 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, and such notice references the Holders of the Certificates and
         this Agreement;

               (iii) For all purposes under this Agreement, the Trustee shall
         not be deemed to have notice of any Event of Default (other than
         resulting from a failure by the Master Servicer to furnish information
         to the Trustee when required to do so) 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 address provided in Section 11.07, and such notice references the
         Holders of the Certificates and this Agreement; and

               (iv) With respect to amounts that would be treated as
         "unanticipated expenses" within the meaning of Treasury Regulations
         Section 1.860G-1(b)(3)(ii) if paid or reimbursed by the REMICs
         hereunder, no provision of this Agreement shall require the Trustee to
         expend or risk its own funds or otherwise incur any financial liability
         in the performance of any of its duties hereunder, or in the exercise
         of any of its rights or powers, if it shall have reasonable grounds for
         believing that repayment of such funds or adequate indemnity 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 to perform, or be responsible for the manner of performance of,
         any of the obligations of the Master Servicer under this Agreement
         except, with respect to the Trustee, 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.

         (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

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consequence of the assignment of any Mortgage Loan hereunder; provided, however,
that the Trustee shall use its best efforts to 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.

         (e) 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 Certificateholders of any Class holding Certificates which
evidence, as to such Class, Percentage Interests aggregating not less than 25%
as to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Agreement.

         (f) Subject to Section 4.04, the Trustee shall not be held liable by
reason of any insufficiency in any account (including without limitation the
Collection Account and the Certificate Account) held by or on behalf of the
Trustee resulting from any investment loss on any Eligible Investment included
therein (except to the extent that the Trustee is the obligor and has defaulted
thereon).

         (g) Except as otherwise provided herein, the Trustee shall have no duty
(A) to see to any recording, filing, or depositing of this Agreement or any
agreement referred to herein or any financing statement or continuation
statement evidencing a security interest, or to see to the maintenance of any
such recording or filing or depositing or to any re-recording, re-filing or
re-depositing 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
Collection Account or the Certificate Account, or (D) to confirm or verify the
contents of any reports or certificates of the Master Servicer delivered to the
Trustee pursuant to this Agreement believed by the Trustee, as applicable, to be
genuine and to have been signed or presented by the proper party or parties.

         (h) The Trustee shall not 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, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts.

         (i) Notwithstanding anything in this Agreement to the contrary, the
Trustee shall not 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 has been advised of the likelihood of such loss or damage
and regardless of the form of action.

         Section 6.02. Certain Matters Affecting the Trustee.

         Except as otherwise provided in Section 6.01:

               (i) The Trustee may request, and may rely and shall be protected
         in acting or refraining from acting upon any resolution, Officer's
         Certificate, certificate of auditors, Opinion of Counsel 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;

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               (ii) The Trustee 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) The Trustee shall not 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, the Trustee shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, consent,
         order, approval, bond or other paper or document (provided the same
         appears regular on its face), unless requested in writing to do so by
         Holders of at least a majority in Class Principal Amount (or Class
         Notional Amount) of each Class of Certificates; provided, however,
         that, if the payment within a reasonable time to the Trustee of the
         costs, expenses or liabilities likely to be incurred by it in the
         making of such investigation is, in the opinion of the Trustee, not
         reasonably assured to the Trustee by the security afforded to it by the
         terms of this Agreement, the Trustee may require reasonable indemnity
         against such expense or liability or payment of such estimated expenses
         as a condition to proceeding. The reasonable expense thereof shall be
         paid by the Holders requesting such investigation;

               (v) The Trustee may execute any of the trusts or powers hereunder
         or perform any duties hereunder either directly or by or through
         agents, custodians, or attorneys, which agents, custodians or attorneys
         shall have any and all of the rights, powers, duties and obligations of
         the Trustee conferred on them by such appointment provided that the
         Trustee shall continue to be responsible for its duties and obligations
         hereunder to the extent provided herein, and provided further that the
         Trustee shall not be responsible for any misconduct or negligence on
         the part of any such agent or attorney appointed with due care by the
         Trustee;

               (vi) The Trustee shall be under no obligation to exercise any of
         the trusts or powers vested in it by this Agreement or to institute,
         conduct or defend any litigation hereunder or in relation hereto, 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 reasonable
         security or indemnity against the costs, expenses and liabilities which
         may be incurred therein or thereby;

               (vii) The right of the Trustee to perform any discretionary act
         enumerated in this Agreement shall not be construed as a duty, and the
         Trustee shall not be answerable for other than its negligence or
         willful misconduct in the performance of such act; and

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               (viii) The Trustee shall not 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 Not Liable for Certificates.

         The Trustee makes no representations as to the validity or sufficiency
of this Agreement or of the Certificates (other than the certificate of
authentication on the Certificates) or of any Mortgage Loan, or related document
save that the Trustee represents 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 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 Collection Account,
the Certificate Account, any Escrow Account or any other fund or account
maintained with respect to the Certificates. The Trustee shall not be
responsible for the legality or validity of this Agreement or the validity,
priority, perfection or sufficiency of the security for the Certificates issued
or intended to be issued hereunder. Except as otherwise provided herein, the
Trustee shall have no responsibility for filing any financing or continuation
statement in any public office at any time or to otherwise perfect or maintain
the perfection of any security interest or lien granted to it hereunder or to
record this Agreement.

         Section 6.04. Trustee May Own Certificates.

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

         Section 6.05. Eligibility Requirements for Trustee.

         The Trustee hereunder shall at all times be (i) an institution insured
by the FDIC and (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. 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.

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         Section 6.06. Resignation and Removal of Trustee.

         (a) The Trustee may at any time resign and be discharged from the trust
hereby created by giving written notice thereof to 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
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.

         (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 a receiver
of the Trustee or of its property shall be appointed, or any public officer
shall take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation, (iii) 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, or (iv) the continued
use of the Trustee would result in a downgrading of the rating by the Rating
Agencies of any Class of Certificates with a rating, then the Depositor shall
remove the Trustee and appoint a successor trustee by written instrument, one
copy of which instrument shall be delivered to the Trustee so removed, one copy
to the successor trustee and one copy to the Master Servicer.

         (c) The Holders of more than 50% of the Class Principal Amount (or
Class Notional Amount) of each Class of Certificates may at any time upon 30
days' written notice to the Trustee and 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 so removed and one copy to the Master Servicer; the
Depositor shall thereupon use its best efforts to appoint a mutually acceptable
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 (i) payment of all unpaid amounts owed to the Trustee and (ii)
acceptance of appointment by the successor trustee as provided in Section 6.07.

         Section 6.07. Successor Trustee.

         (a) Any successor trustee appointed as provided in Section 6.06 shall
execute, acknowledge and deliver to the Depositor, the Master Servicer and to
its predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, 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. The predecessor trustee (or its custodian) shall deliver to
the successor trustee (or assign to the successor trustee its interest under

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each Custodial Agreement, to the extent permitted thereunder) all Mortgage Files
and documents and statements related to each Mortgage Files 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 record 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 Master Servicer and the
predecessor trustee 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 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.

         (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 and to all Holders of Certificates at their addresses as shown in the
Certificate Register and to the Rating Agencies. The expenses of such mailing
shall be borne by the predecessor trustee.

         Section 6.08. Merger or Consolidation of Trustee.

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

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

         (a) Notwithstanding any other provisions hereof, at any time, the
Trustee, the Depositor or the Certificateholders evidencing more than 50% of the
Class Principal Amount (or Class Notional Amount) of each Class of Certificates
shall each have the power from time to time to appoint one or more Persons 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 Trustee to make Advances pursuant to Section 5.04 and 6.14
hereof shall not be affected or assigned by the appointment of a co-trustee.

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         (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 or the Certificateholders evidencing more than
         50% of the Aggregate Voting Interests of the Certificates may at any
         time 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 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.

         (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. The Trustee shall not
be responsible for any action or inaction of any separate trustee, co-trustee or
custodian. 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.

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         (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 Certificateholders of the appointment shall be
required under Section 6.07 hereof.

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

         (g) The Trust Fund shall pay the reasonable compensation of the
co-trustees to the extent, and in accordance with the standards, specified in
Section 6.12 hereof (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. 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 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. Any Authenticating Agent shall be
entitled to reasonable compensation for its services and, if paid by the
Trustee, it shall be a reimbursable expense to the extent provided in Section
6.12.

         Section 6.11. Indemnification of Trustee.

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         The Trustee and its respective directors, officers, employees and
agents shall be entitled to indemnification from the Trust Fund for any loss,
liability or expense incurred in connection with any legal proceeding or
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 in connection with the performance of their duties hereunder or
under the Certificates, any Custodial Agreement or any Servicing Agreement,
including any applicable fees and expenses payable pursuant to Section 6.12 and
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,
provided that:

               (i) with respect to any such claim, the Trustee shall have given
         the Depositor, the Master Servicer and the Holders written notice
         thereof promptly after the Trustee shall have knowledge thereof;
         provided that failure to so notify shall not relieve the Trust Fund of
         the obligation to indemnify the Trustee; however, any reasonable delay
         by the Trustee to provide written notice to the Depositor, the Master
         Servicer and the Holders promptly after the Trustee shall have obtained
         knowledge of a claim shall not relieve the Trust Fund of the obligation
         to indemnify the Trustee under this Section 6.11;

               (ii) while maintaining control over its own defense, the Trustee
         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 entered into without the prior consent of the
         Depositor, which consent shall not be unreasonably withheld; and

               (iv) any such loss, liability or expense indemnified by the Trust
         Fund must constitute an "unanticipated expense" within the meaning of
         Treasury Regulations Section 1.860G-1(b)(3)(ii).

         The provisions of this Section 6.11 shall survive any termination of
this Agreement and the resignation or removal of the Trustee 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 Trustee and Custodian.

         The Trustee shall be entitled to (a) the Trustee Fee and (b) all
reasonable expenses, disbursements and advancements incurred or made by the
Trustee in accordance with this Agreement (including fees and expenses of its
counsel and all persons not regularly in its employment), except any such
expenses, disbursements and advancements that either (i) arise from its
negligence, bad faith or willful misconduct or (ii) do not constitute
"unanticipated expenses" within the meaning of Treasury Regulations Section
1.860G-1(b)(3)(ii). The Custodian shall be compensated as separately agreed with
the Depositor.

         Section 6.13. Collection of Monies.

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         Except as otherwise expressly provided in this Agreement, the Trustee
may demand payment or delivery of, and shall receive and collect, all money and
other property payable to or receivable by the Trustee pursuant to this
Agreement. 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. If
the Trustee shall not have timely received amounts to be remitted with respect
to the Mortgage Loans from the Master Servicer, the Trustee shall request the
Master Servicer to make such distribution as promptly as practicable or legally
permitted. If the Trustee shall subsequently receive any such amount, it may
withdraw such request.

         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":

               (i) Any failure by the Master Servicer to furnish the Trustee the
         Mortgage Loan data sufficient to prepare the reports described in
         Section 4.03(a) which continues unremedied for a period of two (2)
         Business Days after the date upon which written notice of such failure
         shall have been given to such Master Servicer by the Trustee or to such
         Master Servicer, the Trustee by the Holders of not less than 25% of the
         Class Principal Amount (or Class Notional Amount) 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 on the part of such Master Servicer contained in this
         Agreement which continues unremedied for a period of 30 days (or 15
         days, in the case of a failure to maintain any Insurance Policy
         required to be maintained pursuant to this Agreement) after the date on
         which written notice of such failure, requiring the same to be
         remedied, shall have been given to such Master Servicer by the Trustee,
         or to such Master Servicer and the Trustee by the Holders of not less
         than 25% of the Class Principal Amount (or Class Notional Amount) of
         each Class of Certificates affected thereby; 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 such 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

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               (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 9.27 hereof;
         or

               (vii) If a representation or warranty set forth in Section 9.14
         hereof shall prove to be incorrect as of the time made in any respect
         that materially and adversely affects the 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 60 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 to the Master Servicer
         and the Trustee by the Holders of not less than 25% of the Aggregate
         Certificate Principal Amount of each Class of Certificates; or

               (viii) A sale or pledge of the 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 Class Principal Amount
         (or Class Notional Amount) of each Class of Certificates; or

               (ix) The Master Servicer has notice or actual knowledge that any
         Servicer at any time is not either an FNMA- or FHLMC- approved
         Seller/Servicer, and the Master Servicer has not terminated the rights
         and obligations of such Servicer under the applicable Servicing
         Agreement and replaced such Servicer with an FNMA- or FHLMC-approved
         servicer within 60 days of the date the Master Servicer receives such
         notice or actual knowledge; or

               (x) Any failure of the Master Servicer to remit to the Trustee
         any payment required to be made to the Trustee for the benefit of
         Certificateholders under the terms of this Agreement, including any
         Advance, on any Deposit Date, which such failure continues unremedied
         for a period of one Business Day after the date upon which notice of
         such failure shall have been given to the Master Servicer by the
         Trustee.

         If an Event of Default described in clauses (i) through (ix) of this
Section 6.14 shall occur, 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 6.14, the Trustee, by notice in
writing to the Master Servicer may, and shall, if so directed by
Certificateholders evidencing more than 50% of the Class Principal Amount (or
Class Notional Amount) of each Class of Certificates, terminate all of the
rights and obligations of the Master Servicer hereunder and in and to the
Mortgage Loans and the proceeds thereof. If an Event of Default described in
clause (x) of this Section 6.14 shall occur, then, in each and every case,
subject to applicable law, so long as such Event of Default shall not have been
remedied within the time period prescribed by clause (x) of this Section 6.14,

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the Trustee, by notice in writing to the Master Servicer, shall promptly
terminate all of the 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 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 pursuant to and under the terms of this
Agreement; 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 Mortgage Loans and related documents or otherwise. The
defaulting Master Servicer agrees to cooperate with the Trustee in effecting the
termination of the defaulting Master Servicer's responsibilities and rights
hereunder as Master Servicer including, without limitation, notifying 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 Collection Account
maintained by such defaulting Master Servicer and any other account or fund
maintained with respect to the Certificates or thereafter received with respect
to the Mortgage Loans. The Master Servicer being terminated shall bear all costs
of a master servicing transfer, including but not limited to those of the
Trustee 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. The Trustee shall be entitled to be
reimbursed from the Master Servicer (or by the Trust Fund, if the Master
Servicer is unable to fulfill its obligations hereunder) for all costs
associated with the transfer of servicing from the predecessor Master Servicer,
including, without limitation, any costs or expenses associated with the
complete transfer of all servicing data and the completion, correction or
manipulation of such servicing data as may be required by the Trustee to correct
any errors or insufficiencies in the servicing data or otherwise to enable the
Trustee to master service the Mortgage Loans properly and effectively. If the
terminated Master Servicer does not pay such reimbursement within thirty (30)
days of its receipt of an invoice therefor, such reimbursement shall be an
expense of the Trust and the Trustee shall be entitled to withdraw such
reimbursement from amounts on deposit in the Certificate Account pursuant to
Section 4.04; provided that the terminated Master Servicer shall reimburse the
Trust for any such expense incurred by the Trust.

         Notwithstanding the termination of its activities as Master Servicer,
each terminated Master Servicer shall continue to be entitled to reimbursement
to the extent provided in Section 4.02(i), (ii), (iii), (iv), (v), (vi), (vii),
(ix) and (xi) to the extent such reimbursement relates to the period prior to
such Master Servicer's termination.

         If any Event of Default shall occur of which a Responsible Officer of
the Trustee has actual knowledge, the Trustee shall promptly notify the Rating
Agencies of the nature and extent of such Event of Default. The Trustee shall
immediately give written notice to the Master Servicer upon such Master
Servicer's failure to remit funds on the Deposit Date.

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<PAGE>

         (b) Within 90 days of the time the Master Servicer receives a notice of
termination from the Trustee pursuant to Section 6.14(a) or the Trustee receives
the resignation of the Master Servicer evidenced by an Opinion of Counsel
pursuant to Section 9.28, 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 Master Servicer's or the Trustee's failure to
provide information required by this Agreement shall not be considered a default
by the Trustee hereunder. In addition, the Trustee shall have no responsibility
for any act or omission of the Master Servicer prior to the issuance of any
notice of termination and within a period of time not to exceed 90 days after
the issuance of any notice of termination pursuant to Section 6.14(a) or Section
9.28. The Trustee shall have no liability relating to the representations and
warranties of the Master Servicer set forth in Section 9.14. In the Trustee's
capacity as such successor, the Trustee shall have the same limitations on
liability herein granted to the Master Servicer. As compensation therefor, the
Trustee shall be entitled to receive all compensation payable to the Master
Servicer under this Agreement, including the Master Servicing Fee.

         (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, appoint,
or petition a court of competent jurisdiction to appoint, 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 responsibilities, duties or liabilities of a master
servicer, like the Master Servicer. Any entity designated by the Trustee as a
successor master servicer 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 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 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 Mortgagors of the assignment of the
master servicing functions and providing the Trustee and successor master
servicer, as applicable, 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 master
servicer, as applicable, all amounts which shall at the time be or should have
been deposited by the Master Servicer in the Collection Account and 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 any other
successor master servicer shall be deemed to be in default hereunder by reason

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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 Mortgage Loan data to the Trustee
as required by this Agreement or (iv) restrictions imposed by any regulatory
authority having jurisdiction over the Master Servicer.

         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 an express trust, 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.

         35% or more of the Aggregate Voting Interests of 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 Certificate Account that would result in a failure of
the Trustee 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
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 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
a Responsible Officer of the Trustee, give written notice thereof to 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.

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<PAGE>

         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 Amount (or Class Notional Amount) of each Class
of Certificates 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 reasonable security or indemnity 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 or be unjustly
prejudicial to the non-assenting Certificateholders.

         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 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. For
all purposes of this Agreement, in the absence of actual knowledge by a
Responsible Officer of the Trustee, the Trustee shall not be deemed to have
knowledge of any failure of the Master Servicer or any other Event of Default
unless notified in writing by the Depositor, the Master Servicer or a
Certificateholder.

         Section 6.20. Preparation of Tax Returns and Other Reports.

         (a) The Trustee 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 Trustee shall file,
federal tax returns and appropriate state income tax returns and such other
returns as may be required by applicable law relating to the Trust Fund, and
shall file any other documents to the extent required by applicable state tax
law (to the extent such documents are in the Trustee's possession. The Trustee
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 Trustee 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 Trustee as are required by the Code and the REMIC Provisions
to be furnished to them, and will prepare and distribute Certificateholders Form
1099 (supplemental tax information) (or otherwise furnish information within the
control of the Trustee) to the extent required by applicable law. The Master
Servicer will indemnify the Trustee for any liability of or assessment against
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.

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         (b) The Trustee shall prepare and file with the Internal Revenue
Service ("IRS"), on behalf of each of the Lower Tier REMIC, the Middle Tier
REMIC and the Upper Tier REMIC, an application for a taxpayer identification
number on IRS Form SS-4 or any other acceptable method approved by the IRS. The
Trustee, upon receipt from the IRS of the Notice of Taxpayer Identification
Number Assigned for each REMIC, shall promptly forward copies of such notice to
the Master Servicer and the Depositor. The Trustee will file an IRS Form 8811
for the REMICs created hereunder.

         (c) The Depositor shall prepare or cause to be prepared the initial
current report on Form 8-K. Thereafter, within 15 days after each Distribution
Date, the Trustee shall, in accordance with industry standards, file with the
Securities and Exchange Commission (the "Commission") via the Electronic Data
Gathering and Retrieval System (EDGAR), a Form 8-K with a copy of the statement
to the Certificateholders for such Distribution Date as an exhibit thereto.
Prior to January 31, 2005, the Trustee shall, in accordance with industry
standards, file a Form 15 Suspension Notification with respect to the Trust
Fund, if applicable. Prior to March 31, 2005, the Trustee shall file (but will
not execute) a Form 10-K, in substance conforming to industry standards, with
respect to the Trust Fund. The Depositor hereby grants to the Trustee a limited
power of attorney to execute and file each such document on behalf of the
Depositor. Such power of attorney shall continue until either the earlier of (i)
receipt by the Trustee from the Depositor of written termination of such power
of attorney and (ii) the termination of the Trust Fund. The Depositor agrees to
promptly furnish to the Trustee, from time to time upon request, such further
information, reports, and financial statements within its control related to
this Agreement and the Mortgage Loans as the Trustee reasonably deems
appropriate to prepare and file all necessary reports with the Commission. In
addition, the Form 10-K shall include the certification required pursuant to
Rule 13a-14 under the Securities and Exchange Act of 1934, as amended (the "Form
10-K Certification") signed by an appropriate party or parties (which Form 10-K
Certification the Trustee shall not be required to sign). The Trustee shall have
no responsibility to file any items other than those specified in this section.

         (d) If so requested, the Trustee shall sign a certification (in the
form attached hereto as Exhibit M) for the benefit of the Person(s) signing the
Form 10-K Certification regarding certain aspects of such Form 10-K
Certification (provided, however, that the Trustee shall not be required to
undertake an analysis of the accountant's report attached as an exhibit to the
Form 10-K).

         (e) If so requested, the Master Servicer shall sign a certification for
the benefit of the Person(s) signing the Form 10-K Certification regarding
certain aspects of such Form 10-K Certification (provided, however, that the
Master Servicer shall not be required to undertake an analysis of the
accountant's report attached as an exhibit to the Form 10-K).

         (f) Each person (including their officers or directors) that signs any
Form 10-K Certification shall be entitled to indemnification from the Trust Fund
for any liability or expense incurred by it in connection with such
certification, other than any liability or expense attributable to such Person's
own bad faith, negligence or willful misconduct. The provisions of this
subsection shall survive any termination of this Agreement and the resignation
or removal of such Person.

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                                   ARTICLE VII

                            PURCHASE AND TERMINATION
                                OF THE TRUST FUND

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

         (a) The respective obligations and responsibilities of the Trustee and
the Master Servicer created hereby (other than the obligation of the Trustee to
make payments to Certificateholders as set forth in Section 7.02, the obligation
of the Master Servicer to make a final remittance to the Trustee for deposit
into the Certificate Account pursuant to Section 4.02 and the obligations of the
Master Servicer to the Trustee pursuant to Sections 9.10 and 9.14), shall
terminate on the earlier 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 and (ii) the sale of all remaining property held by the Trust Fund in
accordance with Section 7.01(b); 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
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) On any Distribution Date occurring after the date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans in the Trust Fund is
less than 10% of the Principal Balance of the Mortgage Loans in the Trust Fund
(determined in the aggregate rather than by pool) as of the Cut-off Date, the
Master Servicer, with the consent of the Seller (which consent will not be
unreasonably withheld), may, upon written direction to the Trustee, cause the
Trustee to sell (or arrange for the sale of) the assets of the Trust Fund. Upon
the repurchase of the Mortgage Loans in the Trust Fund, the Master Servicer
shall, upon written direction to the Trustee, cause each REMIC included in the
Trust Fund to adopt a plan of complete liquidation pursuant to Section 7.03
hereof to sell all of its property. The property of the Trust Fund shall be sold
at a price (the "Repurchase Price") equal to: (i) 100% of the unpaid principal
balance of each Mortgage Loan on the day of such purchase plus interest accrued
thereon at the applicable Mortgage Rate with respect to any Mortgage Loan to the
Due Date in the Due Period immediately preceding such Distribution Date, (ii)
the fair market value of any REO Property and any other property held by the
Trust Fund, such fair market value to be determined by an appraiser or
appraisers appointed by the Master Servicer with the consent of the Trustee and
(iii) any unreimbursed Servicing Advances with respect to each Mortgage Loan in
the Trust Fund and all amounts due and owing to the Trustee and the Master
Servicer or for which the Trustee or the Master Servicer is entitled to
reimbursement pursuant to this Agreement. The Trustee shall distribute the
assets of the Trust Fund on the Distribution Date on which the repurchase
occurred. Upon the repurchase of the Mortgage Loans, the Trust Fund shall
terminate in accordance with the terms of this Agreement.

         Section 7.02. Procedure Upon Termination of Trust Fund.

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<PAGE>

         (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, shall be given promptly by the Trustee by first class mail to
Certificateholders mailed (x) no later than five Business Days after the Trustee
has received notice from the Master Servicer of its intent to exercise its right
to cause the termination of the Trust Fund pursuant to Section 7.01(b) 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 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 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 Trustee therein specified. The
Trustee shall give such notice to the Depositor 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 Trustee shall terminate, or request the
Master Servicer to terminate, the Collection Account it maintains, the
Certificate Account and any other account or fund maintained with respect to the
Certificates, subject to the Trustee'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 Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice any Certificates shall not have been
surrendered for cancellation, the Trustee 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 Trustee 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
Trustee 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.

         (c) Any reasonable expenses incurred by the Trustee in connection with
any termination or liquidation of the Trust Fund shall be paid from proceeds
received from the liquidation of the Trust Fund, but only to the extent that
such expenses constitute "unanticipated expenses" within the meaning of Treasury
Regulations Section 1.860G-1(b)(3)(ii).

         Section 7.03. Additional Requirements under the REMIC Provisions.

         (a) Any termination of the Trust Fund shall be effected in accordance
with the following additional requirements, unless the Trustee seeks (at the
request of the Master Servicer), and subsequently receives, an Opinion of
Counsel (at the expense of the Master Servicer), addressed to the Trustee to the
effect that the failure of the Trust Fund to comply with the requirements of
this Section 7.03 will not (i) result in the imposition of taxes on any REMIC
under the REMIC Provisions or (ii) cause any REMIC established hereunder to fail
to qualify as a REMIC at any time that any Certificates are outstanding:

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               (i) The Trustee shall sell all of the assets of the Trust Fund
         for cash and, within 90 days of such sale, shall distribute the
         proceeds of such sale to the Certificateholders in complete liquidation
         of the Trust Fund, the Lower Tier REMIC, the Middle Tier REMIC and the
         Upper Tier REMIC; and

               (ii) The Trustee shall attach a statement to the final Federal
         income tax return for each of the Lower Tier REMIC, the Middle Tier
         REMIC and the Upper Tier REMIC stating that pursuant to Treasury
         Regulation ss. 1.860F-1, the first day of the 90-day liquidation period
         for each such REMIC was the date on which the Trustee sold the assets
         of the Trust Fund.

         (b) By its acceptance of a Residual Certificate, each Holder thereof
hereby (i) authorizes the Trustee to take the action described in paragraph (a)
above and (ii) agrees to take such other action as may be necessary to
facilitate liquidation of each REMIC created under this Agreement, which
authorization shall be binding upon all successor Residual Certificateholders.

                                  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) of Certificates of each Class 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

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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 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 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 Trustee, 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 Trustee shall, within five Business Days after the receipt of
such application, afford such Applicants reasonable access during the normal
business hours of the Trustee to the most recent list of Certificateholders held
by the Trustee 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 Certificate Registrar and the Trustee that neither the
Depositor, the Master Servicer, 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 Owner, 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,

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where expressly required herein, to the Master Servicer. Such instrument or
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 and Master Servicer, if made in the
manner provided in this Section. Each of the Trustee and Master Servicer shall
promptly notify the other of receipt of any such instrument by it, and shall
promptly forward a copy of such instrument to the other.

         (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 the Trustee, the Master Servicer and 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.

         The Certificateholders, by their purchase and acceptance of the
Certificates, appoint Aurora Loan Services Inc., as Master Servicer. For and on
behalf of the Depositor, the Trustee and the Certificateholders, the Master
Servicer shall master service the Mortgage Loans in accordance with the
provisions of this Agreement and the provisions of the applicable Servicing
Agreement.

         Section 9.02. Master Servicer Fidelity Bond and Master Servicer Errors
and Omissions Insurance Policy.

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         (a) The Master Servicer, at its expense, shall maintain in effect a
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 that would meet the requirements of FNMA or FHLMC if it were the
purchaser of the Mortgage Loans. The Master Servicer shall (i) require each
Servicer to maintain an Errors and Omissions Insurance Policy and a Fidelity
Bond in accordance with the provisions of the applicable Servicing Agreement,
(ii) cause each Servicer to provide to the Master Servicer certificates
evidencing that such policy and bond is in effect and to furnish to the Master
Servicer any notice of cancellation, non-renewal or modification of the policy
or bond received by it, as and to the extent provided in the applicable
Servicing Agreement, and (iii) furnish copies of the certificates and notices
referred to in clause (ii) to the Trustee upon its request. The Fidelity Bond
and Errors and Omissions Insurance Policy may be obtained and maintained in
blanket form.

         (b) The Master Servicer shall promptly report to the Trustee any
material changes that may occur in the Master Servicer Fidelity Bond or the
Master Servicer Errors and Omissions Insurance Policy and shall furnish to the
Trustee, on request, certificates evidencing that such bond and insurance policy
are in full force and effect. The Master Servicer shall promptly report to the
Trustee all cases of embezzlement or fraud, if such events involve funds
relating to the Mortgage Loans. The total losses, regardless of whether claims
are filed with the applicable insurer or surety, shall be disclosed in such
reports together with the amount of such losses covered by insurance. If a bond
or insurance claim report is filed with any of such bonding companies or
insurers, the Master Servicer shall promptly furnish a copy of such report to
the Trustee. Any amounts relating to the Mortgage Loans collected by the Master
Servicer under any such bond or policy shall be promptly remitted by the Master
Servicer to the Trustee for deposit into the Certificate Account. Any amounts
relating to the Mortgage Loans collected by any Servicer under any such bond or
policy shall be remitted to the Master Servicer to the extent provided in the
applicable Servicing Agreement.

         Section 9.03. Master Servicer's Financial Statements and Related
Information.

         For each year this Agreement is in effect, the Master Servicer shall
submit to the Trustee, each Rating Agency and the Depositor a copy of its annual
unaudited financial statements on or prior to the last day of February of each
year commencing on February 28, 2005. Such financial statements shall include a
balance sheet, income statement, statement of retained earnings, statement of
additional paid-in capital, statement of changes in financial position and all
related notes and schedules and shall be in comparative form, certified by a
nationally recognized firm of Independent Accountants to the effect that such
statements were examined and prepared in accordance with generally accepted
accounting principles applied on a basis consistent with that of the preceding
year.

         Section 9.04. Power to Act; Procedures.

         (a) The Master Servicer shall master service the Mortgage Loans and
shall have full power and authority, subject to the REMIC Provisions and the
provisions of Article X hereof, and each Servicer shall have full power and
authority (to the extent provided in the applicable Servicing Agreement) to do
any and all things that it may deem necessary or desirable in connection with
the servicing and administration of the Mortgage Loans, including but not

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limited to the power and authority (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to
collect any Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the applicable Servicing Agreement, as applicable; provided
that the Master Servicer shall not take, or knowingly permit any Servicer to
take, any action that is inconsistent with or prejudices the interests of the
Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor, the Trustee and the Certificateholders under this
Agreement. The Master Servicer further is authorized and empowered by the
Trustee, on behalf of the Certificateholders and the Trustee, in its own name or
in the name of any Servicer, when the Master Servicer or a Servicer, as the case
may be, believes it is appropriate in its best judgment to register any Mortgage
Loan with MERS, or cause the removal from the registration of any Mortgage Loan
on the MERS system, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. The Master Servicer shall represent and protect the
interests of the Trust Fund in the same manner as it protects its own interests
in mortgage loans in its own portfolio in any claim, proceeding or litigation
regarding a Mortgage Loan and shall not make or knowingly permit any Servicer to
make any modification, waiver or amendment of any term of any Mortgage Loan that
would cause any REMIC included in the Trust Fund to fail to qualify as a REMIC
or result in the imposition of any tax under Section 860F(a) or Section 860G(d)
of the Code. Without limiting the generality of the foregoing, the Master
Servicer in its own name or in the name of a Servicer, and each Servicer, to the
extent such authority is delegated to such Servicer by the Master Servicer under
the applicable Servicing Agreement, is hereby authorized and empowered by the
Trustee when the Master Servicer or a Servicer, as the case may be, believes it
appropriate in its best judgment and in accordance with Accepted Servicing
Practices and the applicable Servicing Agreement, to execute and deliver, on
behalf of itself and the Certificateholders, the Trustee or any of them, any and
all instruments of satisfaction or cancellation, or of partial or full release
or discharge and all other comparable instruments, with respect to the Mortgage
Loans and with respect to the Mortgaged Properties. The Trustee shall furnish
the Master Servicer or a Servicer, upon request, with any powers of attorney
prepared by the Master Servicer or such Servicer empowering the Master Servicer
or such Servicer to execute and deliver instruments of satisfaction or
cancellation, or of partial or full release or discharge, and to foreclose upon
or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in
any court action relating to the Mortgage Loans or the Mortgaged Property, in
accordance with the applicable Servicing Agreement and this Agreement, and the
Trustee shall execute and deliver such other documents, as the Master Servicer
may request, necessary or appropriate to enable the Master Servicer to master
service the Mortgage Loans and carry out its duties hereunder and to allow each
Servicer to service the Mortgage Loans, in each case in accordance with Accepted
Servicing Practices (and the Trustee shall have no liability for misuse of any
such powers of attorney by the Master Servicer or the applicable Servicer). If
the Master Servicer or the Trustee has been advised that it is likely that the
laws of the state in which action is to be taken prohibit such action if taken
in the name of the Trustee or that the Trustee would be adversely affected under

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the "doing business" or tax laws of such state if such action is taken in its
name, then upon request of the Trustee, the Master Servicer shall join with the
Trustee in the appointment of a co-trustee pursuant to Section 6.09 hereof. In
the performance of its duties hereunder, the Master Servicer shall be an
independent contractor and shall not, except in those instances where it is
taking action in the name of the Trustee, be deemed to be the agent of the
Trustee.

         (b) In master servicing and administering the Mortgage Loans, the
Master Servicer shall employ procedures and exercise the same care that it
customarily employs and exercises in master servicing and administering loans
for its own account, giving due consideration to Accepted Servicing Practices
where such practices do not conflict with this Agreement. Consistent with the
foregoing, the Master Servicer may, and may permit any Servicer to, in its
discretion (i) waive any late payment charge or any prepayment charge or penalty
interest in connection with the prepayment of a Mortgage Loan and (ii) extend
the due dates for payments due on a Mortgage Note for a period not greater than
120 days; provided, however, that the maturity of any Mortgage Loan shall not be
extended past the date on which the final payment is due on the latest maturing
Mortgage Loan as of the Cut-off Date. In the event of any extension described in
clause (ii) above, the Master Servicer shall make or cause to be made Advances
on the related Mortgage Loan in accordance with the provisions of Section 5.04
on the basis of the amortization schedule of such Mortgage Loan without
modification thereof by reason of such extension. Notwithstanding anything to
the contrary in this Agreement, the Master Servicer shall not make or knowingly
permit any modification, waiver or amendment of any material term of any
Mortgage Loan unless: (1) such Mortgage Loan is in default or default by the
related Mortgagor is, in the reasonable judgment of the Master Servicer or the
applicable Servicer, reasonably foreseeable, (2) in the case of a waiver of a
Prepayment Premium if (a) such Mortgage Loan is in default or default by the
related Mortgagor is reasonably foreseeable, and such waiver would maximize
recovery of total proceeds taking into account the value of such Prepayment
Premium and the related Mortgage Loan or (b) the prepayment is not the result of
a refinance by the Servicer or any of its affiliates and (i) such Mortgage Loan
is in default or default by the related Mortgagor is, in the reasonable judgment
of the Master Servicer or the applicable Servicer, reasonably foreseeable, and
such waiver would maximize recovery of total proceeds taking into account the
value of such Prepayment Premium and the related Mortgage Loan or (ii) the
collection of the Prepayment Premium would be in violation of applicable laws or
(iii) the collection of such Prepayment Premium would be considered "predatory"
pursuant to written guidance published or issued by any applicable federal,
state or local regulatory authority acting in its official capacity and having
jurisdiction over such matters, and (3) the Master Servicer shall have provided
or caused to be provided to the Trustee an Opinion of Counsel (which opinion
shall, if provided by the Master Servicer, be an expense reimbursed from the
Collection Account pursuant to Section 4.02(v)) in writing to the effect that
such modification, waiver or amendment would not cause an Adverse REMIC Event;
provided, in no event shall an Opinion of Counsel be required for the waiver of
a Prepayment Premium under clause (2) above.

         Section 9.05. Servicing Agreements Between the Master Servicer and
Servicers; Enforcement of Servicers' Obligations.

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         (a) Each Servicing Agreement requires the applicable Servicer to
service the Mortgage Loans in accordance with the provisions thereof. References
in this Agreement to actions taken or to be taken by the Master Servicer include
such actions taken or to be taken by a Servicer pursuant to a Servicing
Agreement. Any fees, costs and expenses and other amounts payable to such
Servicers shall be deducted from amounts remitted to the Master Servicer by the
applicable Servicer (to the extent permitted by the applicable Servicing
Agreement) and shall not be an obligation of the Trust, the Trustee or the
Master Servicer.

         (b) The Master Servicer shall not be required to (i) take any action
with respect to the servicing of any Mortgage Loan that the related Servicer is
not required to take under the related Servicing Agreement and (ii) cause a
Servicer to take any action or refrain from taking any action if the related
Servicing Agreement does not require the Servicer to take such action or refrain
from taking such action; in both cases notwithstanding any provision of this
Agreement that requires the Master Servicer to take such action or cause the
Servicer to take such action.

         (c) The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of each Servicer under the
related Servicing Agreement, and shall use its reasonable best efforts to
enforce the obligations of each Servicer under the related Servicing Agreement
and shall, upon its obtaining actual knowledge of the failure of a Servicer to
perform its obligations in accordance with the related Servicing Agreement, to
the extent that the non-performance of any such obligations would have a
material adverse effect on a Mortgage Loan, the Trust Fund or
Certificateholders, terminate the rights and obligations of such Servicer
thereunder to the extent and in the manner permitted by the related Servicing
Agreement and either act as servicer of the related Mortgage Loans or enter into
a Servicing Agreement with a successor Servicer. Such enforcement, including,
without limitation, the legal prosecution of claims, termination of Servicing
Agreements and the pursuit of other appropriate remedies, shall be in such form
and carried out to such an extent and at such time as the Master Servicer, in
its good faith business judgment, would require were it the owner of the related
Mortgage Loans. The Master Servicer shall pay the costs of such enforcement at
its own expense, and shall be reimbursed therefor initially only (i) from a
general recovery resulting from such enforcement only to the extent, if any,
that such recovery exceeds all amounts due in respect of the related Mortgage
Loans (ii) from a specific recovery of costs, expenses or attorneys' fees
against the party against whom such enforcement is directed, and then, to the
extent that such amounts are insufficient to reimburse the Master Servicer for
the costs of such enforcement or (iii) from the Collection Account.

         Section 9.06. Collection of Taxes, Assessments and Similar Items.

         (a) To the extent provided in the applicable Servicing Agreement, the
Master Servicer shall cause each Servicer to establish and maintain one or more
custodial accounts at a depository institution (which may be a depository
institution with which the Master Servicer or any Servicer establishes accounts
in the ordinary course of its servicing activities), the accounts of which are
insured to the maximum extent permitted by the FDIC (each, an "Escrow Account")
and shall deposit therein any collections of amounts received with respect to
amounts due for taxes, assessments, water rates, Standard Hazard Insurance
Policy premiums or any comparable items for the account of the Mortgagors.
Withdrawals from any Escrow Account may be made (to the extent amounts have been
escrowed for such purpose) only in accordance with the applicable Servicing
Agreement. Each Servicer shall be entitled to all investment income not required
to be paid to Mortgagors on any Escrow Account maintained by such Servicer. The
Master Servicer shall make (or cause to be made) to the extent provided in the

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applicable Servicing Agreement advances to the extent necessary in order to
effect timely payment of taxes, water rates, assessments, Standard Hazard
Insurance Policy premiums or comparable items in connection with the related
Mortgage Loan (to the extent that the Mortgagor is required, but fails, to pay
such items), provided that it has determined that the funds so advanced are
recoverable from escrow payments, reimbursement pursuant to Section 4.02(v) or
otherwise.

         (b) Costs incurred by the Master Servicer or by Servicers in effecting
the timely payment of taxes and assessments on the properties subject to the
Mortgage Loans may be added to the amount owing under the related Mortgage Note
where the terms of the Mortgage Note so permit; provided, however, that the
addition of any such cost shall not be taken into account for purposes of
calculating the distributions to be made to Certificateholders. Such costs, to
the extent that they are unanticipated expenses within the meaning of Treasury
Regulations Section 1.860G-1(b)(3)(ii) shall be recoverable by the Master
Servicer pursuant to Section 4.02(v).

         Section 9.07. Termination of Servicing Agreements; Successor Servicers.

         (a) The Master Servicer shall be entitled to terminate the rights and
obligations of any Servicer under the applicable Servicing Agreement in
accordance with the terms and conditions of such Servicing Agreement and without
any limitation by virtue of this Agreement; provided, however, that in the event
of termination of any Servicing Agreement by the Master Servicer or the related
Servicer, the Master Servicer shall either act as Servicer of the related
Mortgage Loans, or enter into a Servicing Agreement with a successor Servicer.

         (b) If the Master Servicer acts as Servicer, it will not assume
liability for the representations and warranties of the Servicer, if any, that
it replaces. The Master Servicer shall use reasonable efforts to have the
successor Servicer assume liability for the representations and warranties made
by the terminated Servicer in respect of the related Mortgage Loans, and in the
event of any such assumption by the successor Servicer, the Trustee or the
Master Servicer, as applicable, may, in the exercise of its business judgment,
release the terminated Servicer from liability for such representations and
warranties.

         Section 9.08. Master Servicer Liable for Enforcement.

         Notwithstanding any Servicing Agreement, the Master Servicer shall
remain obligated and liable to the Trustee and the Certificateholders in
accordance with the provisions of this Agreement, to the extent of its
obligations hereunder, without diminution of such obligation or liability by
virtue of such Servicing Agreements or arrangements. The Master Servicer shall
use commercially reasonable efforts to ensure that the Mortgage Loans are
serviced in accordance with the provisions of this Agreement and shall use
commercially reasonable efforts to enforce the provisions of each Servicing
Agreement for the benefit of the Certificateholders. The Master Servicer shall
be entitled to enter into any agreement with the Servicers for indemnification
of the Master Servicer and nothing contained in this Agreement shall be deemed
to limit or modify such indemnification. Except as expressly set forth herein,
the Master Servicer shall have no liability for the acts or omissions of any
Servicer in the performance by such Servicer of its obligations under the
related Servicing Agreement.

         Section 9.09. No Contractual Relationship Between Servicers and Trustee
or Depositor.

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         Any Servicing Agreement that may be entered into and any other
transactions or services relating to the Mortgage Loans involving a Servicer in
its capacity as such and not as an originator shall be deemed to be between such
Servicer, the Seller, the Master Servicer, and, except to the extent expressly
provided therein, the Trustee and the Depositor shall not be deemed parties
thereto and shall have no claims, rights, obligations, duties or liabilities
with respect to such Servicer except as set forth in Section 9.10 hereof.

         Section 9.10. Assumption of Servicing Agreement 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 under this
Agreement), after a period not to exceed ninety days after the issuance of any
notice of termination pursuant to Section 6.14 or Section 9.28, as applicable,
the Trustee, or a successor master servicer appointed by it in accordance with
Section 6.14, shall assume all of the rights and obligations of such Master
Servicer hereunder and under each Servicing Agreement entered into with respect
to the Mortgage Loans. The Trustee, 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
Servicing Agreement 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 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 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; provided that the
Master Servicer shall not indemnify or hold harmless the Trustee against
negligent or willful misconduct of the Trustee.

         (b) The Master Servicer that has been terminated shall, upon request of
the Trustee but at the expense of such Master Servicer or at the expense of the
Trust Fund, deliver to the assuming party all documents and records relating to
each Servicing 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 Servicing Agreement to the assuming
party.

         Section 9.11. "Due-on-Sale" Clauses; Assumption Agreements.

         (a) To the extent provided in the applicable Servicing Agreement, to
the extent Mortgage Loans contain enforceable due-on-sale clauses, and to the
extent that the Master Servicer has knowledge of the conveyance of a Mortgaged
Property, the Master Servicer shall use its reasonable best efforts to cause the
Servicers to enforce such clauses in accordance with the applicable Servicing
Agreement. If applicable law prohibits the enforcement of a due-on-sale clause
or such clause is otherwise not enforced in accordance with the applicable
Servicing Agreement, and, as a consequence, a Mortgage Loan is assumed, the
original Mortgagor may be released from liability in accordance with the
applicable Servicing Agreement.

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         (b) The Master Servicer or the related Servicer, as the case may be,
shall be entitled to approve a request from a Mortgagor for the granting of an
easement thereon in favor of another Person or any alteration or demolition of
the related Mortgaged Property if it has determined, exercising its good faith
business judgment in the same manner as it would if it were the owner of the
related Mortgage Loan, that the security for, and the timely and full
collectability of, such Mortgage Loan would not be materially adversely affected
thereby. Any fee collected by the Master Servicer or the related Servicer for
processing such a request will be retained by the Master Servicer or such
Servicer as additional servicing compensation.

         Section 9.12. Release of Mortgage Files.

         (a) Upon (i) becoming aware of the payment in full of any Mortgage
Loan, (ii) the receipt by the Master Servicer of a notification that payment in
full has been or will be escrowed in a manner customary for such purposes, or
(iii) in the case of a Mortgage Loan as to which the related Mortgaged Property
is located in California, receipt by the Master Servicer of notification from
the applicable Servicer that the Servicer reasonably expects that payment in
full will be received promptly, the Master Servicer will, or will cause the
applicable Servicer to, promptly notify the Trustee (or the applicable
Custodian) by a certification (which certification shall include a statement to
the effect that all amounts received or to be received in connection with such
payment that are required to be deposited in the Collection Account maintained
by the Master Servicer pursuant to Section 4.01 have been or will be so
deposited) of a Servicing Officer and shall request the Trustee or the
applicable Custodian, to deliver to the applicable Servicer the related Mortgage
File. In lieu of sending a hard copy certification of a Servicing Officer, the
Master Servicer may, or may cause the Servicer to, deliver the request for
release in a mutually agreeable electronic format. To the extent that such a
request, on its face, originates from a Servicing Officer, no signature shall be
required. Upon receipt of such certification and request, the Trustee or the
applicable Custodian, shall promptly release the related Mortgage File to the
applicable Servicer and neither the Trustee nor the Custodian shall have any
further responsibility with regard to such Mortgage File. The Master Servicer is
authorized, and each Servicer, to the extent such authority is delegated to such
Servicer by the Master Servicer under the applicable Servicing Agreement, is
authorized, to give, as agent for the Trustee, as the mortgagee under the
Mortgage that secured the Mortgage Loan, an instrument of satisfaction (or
assignment of mortgage without recourse) regarding the Mortgaged Property
subject to the Mortgage, which instrument of satisfaction or assignment, as the
case may be, shall be delivered to the Person or Persons entitled thereto
against receipt therefor of such payment, it being understood and agreed that no
expenses incurred in connection with such instrument of satisfaction or
assignment, as the case may be, shall be chargeable to the Collection Account.

         (b) From time to time and as appropriate for the servicing or
foreclosure of, or other legal proceedings relating to, any Mortgage Loan and in
accordance with Accepted Servicing Practices and the applicable Servicing
Agreement, the Trustee shall execute such pleadings, request for trustee's sale
or other documents as shall be prepared and furnished to the Trustee by the
Master Servicer, or by a Servicer (in form reasonably acceptable to the Trustee)
and as are necessary to the prosecution of any such proceedings. The Trustee or
the Custodian, shall, upon request of the Master Servicer, or of a Servicer, and
delivery to the Trustee or the applicable Custodian, of a trust receipt signed
by a Servicing Officer substantially in the form annexed hereto as Exhibit C or
in the form annexed to the applicable Custodial Agreement as Exhibit C, release

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the related Mortgage File held in its possession or control to the Master
Servicer (or the applicable Servicer). Such trust receipt shall obligate the
Master Servicer or applicable Servicer to return the Mortgage File to the
Trustee or Custodian, as applicable, when the need therefor by the Master
Servicer or applicable Servicer no longer exists unless (i) the Mortgage Loan
shall be liquidated, in which case, upon receipt of a certificate of a Servicing
Officer similar to that herein above specified, the trust receipt shall be
released by the Trustee or the Custodian, as applicable, to the Master Servicer
(or the applicable Servicer) or (ii) the Mortgage File has been delivered
directly or through a Servicer to an attorney, or to a public trustee or other
public official as required by law, for purposes of initiating or pursuing legal
action or other proceedings for the foreclosure of the Mortgaged Property either
judicially or non-judicially, and the Master Servicer has delivered directly or
through a Servicer to the Trustee a certificate of a Servicing Officer
certifying as to the name and address of the Person to which such Mortgage File
or such document was delivered and the purpose or purposes of such delivery.

         Section 9.13. Documents, Records and Funds in Possession of Master
Servicer To Be Held for Trustee.

         (a) The Master Servicer shall transmit, or cause the applicable
Servicer to transmit, to the Trustee such documents and instruments coming into
the possession of the Master Servicer or such Servicer from time to time as are
required by the terms hereof to be delivered to the Trustee. Any funds received
by the Master Servicer or by a Servicer in respect of any Mortgage Loan or which
otherwise are collected by the Master Servicer or by a Servicer as a Subsequent
Recovery, Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage
Loan shall be held for the benefit of the Trustee and the Certificateholders
subject to the Master Servicer's right to retain or withdraw from the Collection
Account the Master Servicing Fee and other amounts provided in this Agreement,
and to the right of each Servicer to retain its Servicing Fee and other amounts
as provided in the applicable Servicing Agreement. The Master Servicer shall,
and shall (to the extent provided in the applicable Servicing Agreement) cause
each Servicer to, provide access to information and documentation regarding the
Mortgage Loans to the Trustee, its agents and accountants at any time upon
reasonable request and during normal business hours, and to Certificateholders
that are savings and loan associations, banks or insurance companies, the Office
of Thrift Supervision, the FDIC and the supervisory agents and examiners of such
Office and Corporation or examiners of any other federal or state banking or
insurance regulatory authority if so required by applicable regulations of the
Office of Thrift Supervision or other regulatory authority, such access to be
afforded without charge but only upon reasonable request in writing and during
normal business hours at the offices of the Master Servicer designated by it. In
fulfilling such a request the Master Servicer shall not be responsible for
determining the sufficiency of such information.

         (b) All Mortgage Files and funds collected or held by, or under the
control of, the Master Servicer, or any Servicer, in respect of any Mortgage
Loans, whether from the collection of principal and interest payments or from a
Subsequent Recovery, Liquidation Proceeds or Insurance Proceeds, shall be held
by the Master Servicer, or by such Servicer, for and on behalf of the Trustee
and the Certificateholders and shall be and remain the sole and exclusive
property of the Trustee; provided, however, that the Master Servicer and each
Servicer shall be entitled to setoff against, and deduct from, any such funds
any amounts that are properly due and payable to the Master Servicer or such
Servicer under this Agreement or the applicable Servicing Agreement and shall be
authorized to remit such funds to the Trustee in accordance with this Agreement.

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         (c) The Master Servicer hereby acknowledges that concurrently with the
execution of this Agreement, the Trustee shall own or, to the extent that a
court of competent jurisdiction shall deem the conveyance of the Mortgage Loans
from the Seller to the Depositor not to constitute a sale, the Trustee shall
have a security interest in the Mortgage Loans and in all Mortgage Files
representing such Mortgage Loans and in all funds now or hereafter held by, or
under the control of, a Servicer or the Master Servicer that are collected by
such Servicer or the Master Servicer in connection with the Mortgage Loans,
whether as scheduled installments of principal and interest or as full or
partial prepayments of principal or interest or as a Subsequent Recovery,
Liquidation Proceeds or Insurance Proceeds or otherwise, and in all proceeds of
the foregoing and proceeds of proceeds (but excluding any fee or other amounts
to which such Servicer is entitled under the applicable Servicing Agreement, or
the Master Servicer or the Depositor is entitled to hereunder); and the Master
Servicer agrees that so long as the Mortgage Loans are assigned to and held by
the Trustee, all documents or instruments constituting part of the Mortgage
Files, and such funds relating to the Mortgage Loans which come into the
possession or custody of, or which are subject to the control of, the Master
Servicer or any Servicer shall be held by the Master Servicer or such Servicer
for and on behalf of the Trustee as the Trustee's agent and bailee for purposes
of perfecting the Trustee's security interest therein as provided by the
applicable Uniform Commercial Code or other laws.

         (d) The Master Servicer agrees that it shall not, and shall not
authorize any Servicer to, create, incur or subject any Mortgage Loans, or any
funds that are deposited in any custodial account, Escrow Account or the
Collection Account, or any funds that otherwise are or may become due or payable
to the Trustee, to any claim, lien, security interest, judgment, levy, writ of
attachment or other encumbrance, nor assert by legal action or otherwise any
claim or right of setoff against any Mortgage Loan or any funds collected on, or
in connection with, a Mortgage Loan.

         Section 9.14. Representations and Warranties of the Master Servicer.

         (a) The Master Servicer hereby represents and warrants to the Depositor
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
         jurisdiction of its formation, 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,

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         (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;

               (vii) the Master Servicer, or an affiliate thereof the primary
         business of which is the servicing of conventional residential mortgage
         loans, is an FNMA- and 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;

               (ix) the consummation of the transactions contemplated by this
         Agreement are in the ordinary course of business of the Master
         Servicer; and

               (x) the Master Servicer has obtained an Errors and Omissions
         Insurance Policy and a Fidelity Bond in accordance with Section 9.02,
         each of which is in full force and effect, and each of which provides
         at least such coverage as is required hereunder.

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         (b) It is understood and agreed that the representations and warranties
set forth in this Section 9.14 shall survive the execution and delivery of this
Agreement. The Master Servicer shall indemnify the Depositor 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 breach of the Master Servicer's representations and warranties
contained in Section 9.14(a). Notwithstanding anything in this Agreement to the
contrary, the Master Servicer shall not be liable for special, indirect or
consequential losses or damages of any kind whatsoever (including, but not
limited to, lost profits). It is understood and agreed that the enforcement of
the obligation of the Master Servicer set forth in this Section to indemnify the
Depositor and the Trustee as provided in this Section constitutes the sole
remedy (other than as set forth in Section 6.14) of the Depositor 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, 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.

         (c) It is understood and agreed that the representations and warranties
of the Depositor set forth in Sections 2.03(a)(i) through (vi) shall survive the
execution and delivery of this Agreement. The Depositor shall indemnify the
Master Servicer and hold it 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 breach of the Depositor's representations
and warranties contained in Sections 2.03(a)(i) through (vi). It is understood
and agreed that the enforcement of the obligation of the Depositor set forth in
this Section to indemnify the Master Servicer as provided in this Section
constitutes the sole remedy of the Master Servicer respecting a breach by the
Depositor of the representations and warranties in Sections 2.03(a)(i) through
(vi).

         Any cause of action against the Depositor relating to or arising out of
the breach of the representations and warranties made in Sections 2.03(a)(i)
through (vi) shall accrue upon discovery of such breach by either the Depositor
or the Master Servicer or notice thereof by any one of such parties to the other
parties.

         Section 9.15. Closing Certificate and Opinion.

         On or before the Closing Date, the Master Servicer shall cause to be
delivered to the Depositor and Lehman Brothers Inc. an Opinion of Counsel, dated
the Closing Date, in form and substance reasonably satisfactory to the Depositor
and Lehman Brothers Inc., as to the due authorization, execution and delivery of
this Agreement by the Master Servicer and the enforceability thereof.

         Section 9.16. Standard Hazard and Flood Insurance Policies.

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         For each Mortgage Loan (other than a Cooperative Loan), the Master
Servicer shall maintain, or cause to be maintained by each Servicer, standard
fire and casualty insurance and, where applicable, flood insurance, all in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. It is understood and agreed that such insurance shall
be with insurers meeting the eligibility requirements set forth in the
applicable Servicing Agreement and that no earthquake or other additional
insurance is to be required of any Mortgagor or to be maintained on property
acquired in respect of a defaulted loan, other than pursuant to such applicable
laws and regulations as shall at any time be in force and as shall require such
additional insurance.

         Pursuant to Section 4.01, any amounts collected by the Master Servicer,
or by any Servicer, under any insurance policies maintained pursuant to this
Section 9.16 (other than amounts to be applied to the restoration or repair of
the property subject to the related Mortgage or released to the Mortgagor in
accordance with the Master Servicer's or the Servicer's normal servicing
procedures and Accepted Servicing Practices) shall be deposited into the
Collection Account, subject to withdrawal pursuant to Section 4.02. Any cost
incurred by the Master Servicer or any Servicer in maintaining any such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into account for purposes of calculating the distributions to be made to
Certificateholders and shall be recoverable by the Master Servicer or such
Servicer pursuant to Section 4.02(v).

         Section 9.17. Presentment of Claims and Collection of Proceeds.

         The Master Servicer shall, or shall cause each Servicer (to the extent
provided in the applicable Servicing Agreement) to, prepare and present on
behalf of the Trustee and the Certificateholders all claims under the Insurance
Policies with respect to the Mortgage Loans, and take such actions (including
the negotiation, settlement, compromise or enforcement of the insured's claim)
as shall be necessary to realize recovery under such policies. Any proceeds
disbursed to the Master Servicer (or disbursed to a Servicer and remitted to the
Master Servicer) in respect of such policies or bonds shall be promptly
deposited in the Collection Account upon receipt, except that any amounts
realized that are to be applied to the repair or restoration of the related
Mortgaged Property or release to the Mortgagor in accordance with the Master
Servicer's or the Servicer's normal servicing procedures need not be so
deposited (or remitted).

         Section 9.18. Maintenance of the Primary Mortgage Insurance Policies.

         (a) The Master Servicer shall not take, or knowingly permit any
Servicer (consistent with the applicable Servicing Agreement) to take, any
action that would result in non-coverage under any applicable Primary Mortgage
Insurance Policy of any loss which, but for the actions of such Master Servicer
or Servicer, would have been covered thereunder. To the extent that coverage is
available, the Master Servicer shall use its best reasonable efforts to keep in
force and effect, or to cause each Servicer to keep in force and effect (to the
extent that the Mortgage Loan requires the Mortgagor to maintain such
insurance), primary mortgage insurance applicable to each Mortgage Loan in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. The Master Servicer shall not, and shall not permit

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any Servicer to, cancel or refuse to renew any such Primary Mortgage Insurance
Policy that is in effect at the date of the initial issuance of the Certificates
and is required to be kept in force hereunder except as required by a applicable
law or in accordance with the provisions of this Agreement and the related
Servicing Agreement, as applicable.

         (b) The Master Servicer agrees to present, or to cause each Servicer to
present, on behalf of the Trustee and the Certificateholders, claims to the
insurer under any Primary Mortgage Insurance Policies and, in this regard, to
take such reasonable action as shall be necessary to permit recovery under any
Primary Mortgage Insurance Policies respecting defaulted Mortgage Loans.
Pursuant to Section 4.01, any amounts collected by the Master Servicer or any
Servicer under any Primary Mortgage Insurance Policies shall be deposited in the
Collection Account, subject to withdrawal pursuant to Section 4.02.

         Section 9.19. Trustee To Retain Possession of Certain Insurance
Policies and Documents.

         The Trustee (or its custodian, if any, as directed by the Trustee),
shall retain possession and custody of the originals of the Primary Mortgage
Insurance Policies or certificate of insurance if applicable and any
certificates of renewal as to the foregoing as may be issued from time to time
as contemplated by this Agreement. Until all amounts distributable in respect of
the Certificates have been distributed in full and the Master Servicer otherwise
has fulfilled its obligations under this Agreement, the Trustee (or its
custodian, if any, as directed by the Trustee) shall also retain possession and
custody of each Mortgage File in accordance with and subject to the terms and
conditions of this Agreement. The Master Servicer shall promptly deliver or
cause to be delivered to the Trustee (or its custodian, if any, as directed by
the Trustee), upon the execution or receipt thereof the originals of the Primary
Mortgage Insurance Policies and any certificates of renewal thereof, and such
other documents or instruments that constitute portions of the Mortgage File
that come into the possession of the Master Servicer from time to time.

         Section 9.20. Realization Upon Defaulted Mortgage Loans.

         The Master Servicer shall use its reasonable best efforts to, or to
cause each Servicer to, foreclose upon, repossess or otherwise comparably
convert the ownership of Mortgaged Properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments, all in
accordance with the applicable Servicing Agreement. Alternatively, the Master
Servicer may take, or authorize any Servicer to take, other actions in respect
of a defaulted Mortgage Loan, which may include (i) accepting a short sale (a
payoff of the Mortgage Loan for an amount less than the total amount
contractually owed in order to facilitate a sale of the Mortgaged Property by
the Mortgagor) or permitting a short refinancing (a payoff of the Mortgage Loan
for an amount less than the total amount contractually owed in order to
facilitate refinancing transactions by the Mortgagor not involving a sale of the
Mortgaged Property), (ii) arranging for a repayment plan or (iii) agreeing to a
modification in accordance with Section 9.04. In connection with such
foreclosure or other conversion or action, the Master Servicer shall, consistent
with Section 9.18, follow such practices and procedures as it shall reasonably

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determine to be in the best interests of the Trust Fund and the
Certificateholders and which shall be consistent with its customary practices in
performing its general mortgage servicing activities; provided that the Master
Servicer shall not be liable in any respect hereunder if the Master Servicer is
acting in connection with any such foreclosure or other conversion or action in
a manner that is consistent with the provisions of this Agreement. Neither the
Master Servicer, nor any Servicer, shall be required to expend its own funds or
incur other reimbursable charges in connection with any foreclosure, or
attempted foreclosure which is not completed, or toward the correction of any
default on a related senior mortgage loan, or towards the restoration of any
property unless it shall determine (i) that such restoration and/or foreclosure
will increase the proceeds of liquidation of the Mortgage Loan to the
Certificateholders after reimbursement to itself for such expenses or charges
and (ii) that such expenses and charges will be recoverable to it through
Liquidation Proceeds or Insurance Proceeds (as provided in Section 4.02).

         Section 9.21. Compensation to the Master Servicer.

         The Master Servicer shall (i) be entitled, at its election, either (a)
to pay itself the Master Servicing Fee, as reduced pursuant to Section 5.05, in
respect of the Mortgage Loans out of any Mortgagor payment on account of
interest prior to the deposit of such payment in the Collection Account it
maintains or (b) to withdraw from the Collection Account, subject to Section
5.05, the Master Servicing Fee to the extent permitted by Section 4.02(iv). The
Master Servicer shall also be entitled, at its election, either (a) to pay
itself the Master Servicing Fee in respect of each delinquent Mortgage Loan
master serviced by it out of Liquidation Proceeds in respect of such Mortgage
Loan or other recoveries with respect thereto to the extent permitted in Section
4.02 or (b) to withdraw from the Collection Account it maintains the Master
Servicing Fee in respect of each Liquidated Mortgage Loan to the extent of such
Liquidation Proceeds or other recoveries, to the extent permitted by Section
4.02. Servicing compensation in the form of assumption fees, if any, late
payment charges, as collected, if any, or otherwise shall be retained by the
Master Servicer (or the applicable Servicer) and shall not be deposited in the
Collection Account. If the Master Servicer does not retain or withdraw the
Master Servicing Fee from the Collection Account as provided herein, the Master
Servicer shall be entitled to direct the Trustee to pay the Master Servicing Fee
to such Master Servicer by withdrawal from the Certificate Account to the extent
that payments have been received with respect to the applicable Mortgage Loan.
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. Pursuant to Section
4.01(e), all income and gain realized from any investment of funds in the
Collection Account shall be for the benefit of the Master Servicer as additional
compensation. The provisions of this Section 9.21 are subject to the provisions
of Section 6.14(b).

         Section 9.22. REO Property.

         (a) In the event the Trust Fund acquires ownership of any REO Property
in respect of any Mortgage Loan, the deed or certificate of sale shall be issued
to the Trustee, or to its nominee, on behalf of the Certificateholders. The
Master Servicer shall use its reasonable best efforts to sell, or, to the extent
provided in the applicable Servicing Agreement, cause the applicable Servicer to

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sell, any REO Property as expeditiously as possible and in accordance with the
provisions of this Agreement and the related Servicing Agreement, as applicable,
but in all events within the time period, and subject to the conditions set
forth in Article X hereof. Pursuant to its efforts to sell such REO Property,
the Master Servicer shall protect and conserve, or cause the applicable Servicer
to protect and conserve, such REO Property in the manner and to such extent
required by the applicable Servicing Agreement, subject to Article X hereof.

         (b) The Master Servicer shall deposit or cause to be deposited all
funds collected and received by it, or recovered from any Servicer, in
connection with the operation of any REO Property in the Collection Account.

         (c) The Master Servicer and the applicable Servicer, upon the final
disposition of any REO Property, shall be entitled to reimbursement for any
related unreimbursed Advances as well as any unpaid Master Servicing Fees or
Servicing Fees from Liquidation Proceeds received in connection with the final
disposition of such REO Property; provided, that (without limitation of any
other right of reimbursement that the Master Servicer or any Servicer shall have
hereunder) any such unreimbursed Advances as well as any unpaid Master Servicing
Fees or Servicing Fees may be reimbursed or paid, as the case may be, prior to
final disposition, out of any net rental income or other net amounts derived
from such REO Property.

         (d) The Liquidation Proceeds from the final disposition of the REO
Property, net of any payment to the Master Servicer and the applicable Servicer
as provided above, shall be deposited in the Collection Account on or prior to
the Determination Date in the month following receipt thereof (and the Master
Servicer shall provide prompt written notice to the Trustee upon such deposit)
and be remitted by wire transfer in immediately available funds to the Trustee
for deposit into the Certificate Account on the next succeeding Deposit Date.

         Section 9.23. [Reserved].

         Section 9.24. Reports to the Trustee.

         (a) Not later than 30 days after each Distribution Date, the Master
Servicer shall forward to the Trustee a statement, deemed to have been certified
by a Servicing Officer, setting forth the status of the Collection Account
maintained by the Master Servicer as of the close of business on the related
Distribution Date, indicating that all distributions required by this Agreement
to be made by the Master Servicer have been made (or if any required
distribution has not been made by the Master Servicer, specifying the nature and
status thereof) and showing, for the period covered by such statement, the
aggregate of deposits into and withdrawals from the Collection Account
maintained by the Master Servicer. Copies of such statement shall be provided by
the Master Servicer to the Depositor, Attention: Contract Finance, and, upon
request, any Certificateholders (or by the Trustee at the Master Servicer's
expense if the Master Servicer shall fail to provide such copies (unless (i) the
Master Servicer shall have failed to provide the Trustee with such statement or
(ii) the Trustee shall be unaware of the Master Servicer's failure to provide
such statement)).

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         (b) Not later than two Business Days following each Distribution Date,
the Master Servicer shall deliver to the Person designated by the Depositor, in
a format consistent with other electronic loan level reporting supplied by the
Master Servicer in connection with similar transactions, "loan level"
information with respect to the Mortgage Loans as of the related Determination
Date, to the extent that such information has been provided to the Master
Servicer by the Servicers or by the Depositor.

         (c) All information, reports and statements prepared by the Master
Servicer under this Agreement shall be based on information supplied to the
Master Servicer by the Servicers without independent verification thereof and
the Master Servicer shall be entitled to rely on such information.

         Section 9.25. Annual Officer's Certificate as to Compliance.

         (a) The Master Servicer shall deliver to the Trustee and the Rating
Agencies five Business Days after March 15 of each year commencing in March
2005, an Officer's Certificate, certifying that with respect to the period
ending on the immediately preceding December 31; (i) such Servicing Officer has
reviewed the activities of such Master Servicer during the preceding calendar
year or portion thereof and its performance under this Agreement; (ii) to the
best of such Servicing Officer's knowledge, based on such review, such Master
Servicer has performed and fulfilled its duties, responsibilities and
obligations under this Agreement in all material respects throughout such year,
or, if there has been a default in the fulfillment of any such duties,
responsibilities or obligations, specifying each such default known to such
Servicing Officer and the nature and status thereof, (iii) nothing has come to
the attention of such Servicing Officer to lead such Servicing Officer to
believe that any Servicer has failed to perform any of its duties,
responsibilities and obligations under its Servicing Agreement in all material
respects throughout such year, or, if there has been a material default in the
performance or fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof, and (iv) the Master Servicer has received from each Servicer
such Servicer's annual certificate of compliance and a copy of such Servicer's
annual audit report, in each case to the extent required under the applicable
Servicing Agreement, or, if any such certificate or report has not been received
by the Master Servicer, the Master Servicer is using its best reasonable efforts
to obtain such certificate or report.

         (b) Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Trustee at the
Master Servicer's expense if the Master Servicer failed to provide such copies
(unless (i) the Master Servicer shall have failed to provide the Trustee with
such statement or (ii) the Trustee shall be unaware of the Master Servicer's
failure to provide such statement).

         Section 9.26. Annual Independent Accountants' Servicing Report.

         If the Master Servicer has, during the course of any fiscal year,
directly serviced any of the Mortgage Loans, then the Master Servicer at its
expense shall cause a nationally recognized firm of independent certified public
accountants to furnish a statement to the Trustee, the Rating Agencies and the
Depositor on or before March 15 of each year commencing on March 15, 2005, to
the effect that, with respect to the most recently ended fiscal year, such firm
has examined certain records and documents relating to the Master Servicer's
performance of its servicing obligations under this Agreement and pooling and

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servicing and trust agreements in material respects similar to this Agreement
and to each other and that, on the basis of such examination conducted
substantially in compliance with the audit program for mortgages serviced for
FHLMC or the Uniform Single Attestation Program for Mortgage Bankers, such firm
is of the opinion that the Master Servicer's activities have been conducted in
compliance with this Agreement, or that such examination has disclosed no
material items of noncompliance except for (i) such exceptions as such firm
believes to be immaterial, (ii) such other exceptions as are set forth in such
statement and (iii) such exceptions that the Uniform Single Attestation Program
for Mortgage Bankers or the Audit Program for Mortgages Serviced by FHLMC
requires it to report. Copies of such statements shall be provided to any
Certificateholder upon request by the Master Servicer, or by the Trustee at the
expense of the Master Servicer if the Master Servicer shall fail to provide such
copies. If such report discloses exceptions that are material, the Master
Servicer shall advise the Trustee whether such exceptions have been or are
susceptible of cure, and will take prompt action to do so.

         To the extent that the Master Servicer receives an Annual Independent
Accountants' Servicing Report from any Servicer, the Master Servicer shall
forward a copy of such report to the Trustee. If the report is not received from
the Servicer, the Trustee may request that the Master Servicer contact the
applicable Servicer to obtain such report. The Master Servicer will not be
liable for the failure of a Servicer to provide such report.

         Section 9.27. 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 FNMA or FHLMC and shall have a net worth
of not less than $15,000,000.

         Section 9.28. Resignation of Master Servicer.

         Except as otherwise provided in Sections 9.27 and 9.29 hereof, the
Master Servicer shall not resign from the obligations and duties hereby imposed
on it unless it or the Trustee determines that the Master Servicer's duties
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 shall be evidenced by an Opinion of Counsel that shall be
Independent to such effect delivered to the Trustee. In the event such
determination of ineligibility of the Master Servicer to continue in the
capacity of master servicer is made by the Master Servicer, no such resignation
shall become effective until a period of time not to exceed ninety days after
the Trustee receives written notice thereof from the Master Servicer and until
the Trustee shall have assumed, or a successor master servicer shall have been
appointed by the Trustee and until such successor shall have assumed, the Master
Servicer's responsibilities and obligations under this Agreement. Notice of such
resignation shall be given promptly by the Master Servicer to the Depositor.

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         Section 9.29. Assignment or Delegation of Duties by the Master
Servicer.

         Except as expressly provided herein, the Master Servicer shall not
assign or transfer any of its 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 duties, covenants or obligations to be
performed by the Master Servicer hereunder; provided, however, that the Master
Servicer shall have the right without the prior written consent of the Trustee,
the Depositor or the Rating Agencies to delegate or assign to or subcontract
with or authorize or appoint an Affiliate of the Master Servicer to perform and
carry out any duties, covenants or obligations to be performed and carried out
by the Master Servicer hereunder. In no case, however, shall any such
delegation, subcontracting or assignment to an Affiliate of the Master Servicer
relieve the Master Servicer of any liability hereunder. Notice of such permitted
assignment shall be given promptly by the Master Servicer to the Depositor and
the Trustee. If, pursuant to any provision hereof, the duties of the Master
Servicer are transferred to a successor master servicer, the entire amount of
the Master Servicing Fees and other compensation payable to the Master Servicer
pursuant hereto, including amounts payable to or permitted to be retained or
withdrawn by the Master Servicer pursuant to Section 9.21 hereof, shall
thereafter be payable to such successor master servicer.

         Section 9.30. Limitation on Liability of the Master Servicer and
Others.

         (a) The Master Servicer undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement.

         No provision of this Agreement shall be construed to relieve the Master
Servicer from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct; provided, however, that the duties and
obligations of the Master Servicer shall be determined solely by the express
provisions of this Agreement, the Master Servicer shall not be liable except for
the performance of such duties and obligations as are specifically set forth in
this Agreement; no implied covenants or obligations shall be read into this
Agreement against the Master Servicer and, in absence of bad faith on the part
of the Master Servicer, the Master Servicer may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Master Servicer and
conforming to the requirements of this Agreement.

         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 shall be entitled to indemnification by
the Trust Fund and will be held harmless against any loss, liability or expense
incurred in connection with any legal action relating to this Agreement or the
Certificates other than any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or negligence in the performance of his or its

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duties hereunder or by reason of reckless disregard of his or its obligations
and duties hereunder. 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 Collection Account it maintains as provided by Section 4.02.
Notwithstanding anything herein to the contrary, neither the Master Servicer nor
the Trustee shall have any liability for the servicing of the Additional
Collateral, including, without limitation, the perfection, continuation, partial
release, release, termination, realization upon, substitution, foreclosure,
sale, or any other matter with respect to the Additional Collateral, or the
enforcement of the Additional Collateral Servicing Agreement.

         Section 9.31. Indemnification; Third-Party Claims.

         The Master Servicer agrees to indemnify the Depositor 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 and the Trustee may sustain as a
result of the failure of the Master Servicer to perform its duties and master
service the Mortgage Loans in compliance with the terms of this Agreement. The
Depositor 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 and the Trustee to indemnification hereunder,
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.

                                    ARTICLE X

                              REMIC ADMINISTRATION

         Section 10.01. REMIC and Grantor Trust Administration.

         (a) As set forth in the Preliminary Statement hereto, the Trustee shall
elect REMIC status in accordance with the REMIC Provisions with respect to each
of the Lower Tier REMIC, the Middle Tier REMIC and the Upper Tier REMIC. The
Trustee shall make such elections 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. For the purposes of such
elections, each of the Lower Tier Regular Interests is hereby designated as a
regular interest in the Lower Tier REMIC, each of the Middle Tier Regular
Interests is hereby designated as a regular interest in the Middle Tier REMIC
and each of the Upper Tier REMIC Regular Interests is hereby designated as a
regular interest in the Upper Tier REMIC. The Class LT-R Interest is hereby

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designated as the sole residual interest in the Lower Tier REMIC. The Class MT-R
Interest is hereby designated as the sole residual interest in the Middle Tier
REMIC. The Upper Tier REMIC Residual Interest is hereby designated as the sole
residual interest in the Upper Tier REMIC. The Class R Certificate evidences
ownership of the Class LT-R Interest, Class MT-R Interest and the Upper Tier
REMIC Residual Interest. It is the intention of the parties hereto that the
segregated pool of assets consisting of any collections of Prepayment Penalty
Amounts constitute a grantor trust for federal income tax purposes. The Trustee,
by its execution and delivery hereof, acknowledges the assignment to it of the
Grantor Trust I Assets and declares that it holds and will hold such assets in
trust for the exclusive use and benefit of all present and future Holders of the
Class P Certificates. The rights of Holders of the Class P Certificates to
receive distributions from the proceeds of the Grantor Trust I Assets and all
ownership interests of such Holders in and to such distributions, shall be as
set forth in this Agreement.

         (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) is the "Latest
Possible Maturity Date".

         (c) The Trustee shall pay any and all tax related expenses (not
including taxes) of each REMIC and the Grantor Trusts, including but not limited
to any professional fees or expenses related to audits or any administrative or
judicial proceedings with respect to such REMICs or the Grantor Trusts 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 Trustee in
fulfilling its duties hereunder (including its duties as tax return preparer).
The Trustee shall be entitled to reimbursement from the Certificate Account of
the expenses to the extent (x) provided in clause (i) above and (y) such
expenses are "unanticipated expenses" within the meaning of Treasury Regulations
Section 1.860G-1(b)(3)(ii).

         (d) The Trustee shall prepare, sign and file, all of each REMIC's
federal and state tax and information returns as such REMIC's direct
representative. The Trustee shall prepare, sign and file all of the tax returns
in respect of the Grantor Trusts. The Trustee shall comply with such requirement
by filing Form 1041. The expenses of preparing and filing such returns shall be
borne by the Trustee. If any Disqualified Organization acquires any Ownership
Interest in a Residual Certificate, then the Trustee will upon request provide
to the Internal Revenue Service, and to the persons specified in Sections
860E(e)(3) and (6) of the Code, such information as required in Section
860D(a)(6)(B) of the Code needed to compute the tax imposed under Section
860E(e) of the Code on transfers of residual interests to disqualified
organizations. The expenses of providing such information shall be borne by such
persons specified in Sections 860E(e)(3) and (6) of the Code.

         (e) The Trustee or its designee shall perform on behalf of each REMIC
and the Grantor Trusts all reporting and other tax compliance duties that are
the responsibility of such REMIC or the Grantor Trusts 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 Trustee shall
provide (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 and (ii) to the
Certificateholders such information or reports as are required by the Code or
REMIC Provisions.

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         (f) The Trustee, the Master Servicer and the Holders of Certificates
shall take any action or cause each REMIC to take any action necessary to create
or maintain the status of such REMIC as a REMIC under the REMIC Provisions and
shall assist each other as necessary to create or maintain such status. Neither
the Trustee, the Master Servicer nor the Holder of any Residual Certificate
shall 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 (i) endanger the status of such REMIC as
a REMIC or (ii) result in the imposition of a tax upon such REMIC (including but
not limited to the tax on prohibited transactions as defined in Code Section
860F(a)(2) and the tax on prohibited contributions set forth on Section 860G(d)
of the Code) (either such event, an "Adverse REMIC Event") unless the Trustee
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 such 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 and 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 such REMIC, and no such
Person shall take any such action or cause such REMIC to take any such action as
to which the Trustee or the Master Servicer has advised it in writing that an
Adverse REMIC Event could occur.

         (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 Trust taxes are not paid by a Residual
Certificateholder, the Trustee shall pay any remaining REMIC taxes out of
current or future amounts otherwise distributable to the Holder of the Residual
Certificate in such REMIC or, if no such amounts are available, out of other
amounts held in the Collection Account, and shall reduce amounts otherwise
payable to holders of regular interests in such REMIC, as the case may be.

         (h) The Trustee 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 with respect to Qualified
Substitute Mortgage Loans.

         (j) Neither the Trustee nor the Master Servicer shall enter into any
arrangement by which any REMIC will receive a fee or other compensation for
services.

         (k) Upon the request of any Rating Agency, the Trustee shall deliver to
such Rating Agency an Officer's Certificate stating the Trustee's compliance
with the provisions of this Section 10.01.

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         (l) It is intended that the rights of the Class A1, Class A2, Class A3,
Class B1, Class B2, Class B3, Class B4, Class B5 and Class B6 Certificates to
receive payments in respect of Basis Risk Shortfalls shall be treated as rights
in respect of interest rate cap contracts written by the Class AX and Class PAX
Certificateholders in favor of the holders of the Class A1, Class A2, Class A3,
Class B1, Class B2, Class B3, Class B4, Class B5 and Class B6 Certificates and
shall be accounted for as property separate and apart from the Upper Tier REMIC
Regular Interests represented by the Class A1, Class A2, Class A3, Class B1,
Class B2, Class B3, Class B4, Class B5 and Class B6 Certificates. This provision
is intended to comply with the requirements of Treasury Regulations Section
1.860G-2(i) for the treatment of property rights coupled with regular interests
to be separately respected and shall be interpreted consistently with such
regulation. The Holders of the Class A1, Class A2, Class A3, Class B1, Class B2,
Class B3, Class B4, Class B5 and Class B6 Certificates agree, by their
acceptance of such Certificates, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive payments in
respect of Basis Risk Shortfalls. The Holders of the Class AX and Class PAX
Certificates agree, by their acceptance of such Certificates, to take tax
reporting positions consistent with allocations by the Holders of the Class A1,
Class A2, Class A3, Class B1, Class B2, Class B3, Class B4, Class B5 and Class
B6 Certificates of no more than a nominal value to the right to receive payments
in respect of Basis Risk Shortfalls. For information reporting purposes, it will
be assumed that such rights have no value. Each payment made to the Class A1,
Class A2, Class A3, Class B1, Class B2, Class B3, Class B4, Class B5 and Class
B6 Certificates in respect of Basis Risk Shortfalls shall be treated for federal
income tax purposes as having been distributed to the Class AX and Class PAX
Certificates, as the case may be, and then paid by the holders of the Class AX
or Class PAX Certificates, as the case may be, to the holders of the relevant
Class A1, Class A2, Class A3, Class B1, Class B2, Class B3, Class B4, Class B5
and Class B6 Certificates. Each holder or beneficial owner of a Class A1, Class
A2, Class A3, Class AX, Class PAX, Class, B1, Class B2, Class B3, Class B4,
Class B5 and Class B6 Certificate, by virtue of its acquisition of such
Certificate or a beneficial interest in such Certificate, agrees to adopt tax
reporting positions consistent with the characterization of payments made to the
Class A1, Class A2, Class A3, Class B1, Class B2, Class B3, Class B4, Class B5
and Class B6 Certificates in respect of Basis Risk Shortfalls as payments in
respect of interest rate cap agreements written by the holders of the Class AX
and Class PAX Certificates. The parties hereto intend that the Upper Tier REMIC
Regular Interests represented by each of the Class AX and Class PAX
Certificates, together with the related obligations to make payments to the
Class A1, Class A2, Class A3, Class B1, Class B2, Class B3, Class B4, Class B5
and Class B6 Certificates shall be treated as grantor trusts under the Code and
the provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish to the holders of
the Class AX and Class PAX Certificates information regarding items of income,
gain, loss and deduction of such grantor trusts and (ii) file or cause to be
filed with the Internal Revenue Service Form 1041 (together with any necessary
attachments) or such other form as may be applicable and (iii) comply with such
information reporting obligations with respect to payments from such grantor
trusts as may be applicable under the Code or other applicable tax laws.

         Section 10.02. Prohibited Transactions and Activities.

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         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
Certificate 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, or substitution) that such
disposition, acquisition, substitution, or acceptance will not (a) affect
adversely the status of such REMIC as a REMIC or of the Certificates other than
the Residual Certificates as the regular interests therein, (b) affect the
distribution of interest or principal on the Certificates, (c) result in the
encumbrance of the assets transferred or assigned to the Trust Fund (except
pursuant to the provisions of this Agreement) or (d) cause such REMIC to be
subject to a tax on prohibited transactions or prohibited contributions pursuant
to the REMIC Provisions.

         Section 10.03. Indemnification with Respect to Certain Taxes and Loss
of REMIC Status.

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

         Section 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 Servicing Agreement), permit any Servicer to,
rent, lease, or otherwise earn income on behalf of any REMIC with respect to any
REO Property which might cause such REO Property to fail to qualify as
"foreclosure" property within the meaning of section 860G(a)(8) of the Code or
result in the receipt by any REMIC of any "income from non-permitted assets"
within the meaning of section 860F(a)(2) of the Code or any "net income from
foreclosure property" which is subject to tax under the REMIC Provisions unless
the Master Servicer has advised, or has caused the applicable Servicer to
advise, the Trustee in writing to the effect that, under the REMIC Provisions,
such action would not adversely affect the status of any REMIC as a REMIC and
any income generated for such REMIC by the REO Property would not result in the
imposition of a tax upon such REMIC.

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         (b) The Master Servicer shall make, or shall cause the applicable
Servicer to make, reasonable efforts to sell any REO Property for its fair
market value. In any event, however, the Master Servicer shall, or shall cause
the applicable Servicer to, dispose of any REO Property within three years from
the end of the calendar year of its acquisition by the Trust Fund unless the
Trustee or Master Servicer 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 applicable REMIC may
hold REO Property for a longer period without adversely affecting the REMIC
status of such REMIC or causing the imposition of a Federal or state tax upon
such REMIC. If such an extension has been received, then (a) (i) if the Trustee
has received such extension, the Trustee shall provide a copy of such extension
to the Master Servicer and (ii) if the Master Servicer has received such
extension, then the Master Servicer shall provide a copy of such extension to
the Trustee and (b) the Trustee, or the Master Servicer, acting on its behalf
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 the Trustee or
Master Servicer has not received such an extension and the Trustee, or the
Master Servicer acting on behalf of the Trustee hereunder, or the applicable
Servicer is unable to sell the REO Property within 33 months after its
acquisition by the Trust Fund or if the Trustee or Master Servicer has received
such an extension, and the Trustee, or the Master Servicer acting on behalf of
the Trustee hereunder, is unable to sell the REO Property within the period
ending three months before the close of the Extended Period, the Master Servicer
shall, or shall cause the applicable Servicer to, before the end of the three
year period or the Extended Period, as applicable, (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 Master
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.
The Trustee shall not be required to prepare requests to the IRS for extensions
of time during which REO Property may be held, but will, if any such request
prepared by the Master Servicer or the Servicer is required under applicable law
to be signed by the Trustee, shall sign such request.

                                   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.

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         Section 11.03. Amendment.

         (a) This Agreement may be amended from time to time by the Depositor,
the Master Servicer and the Trustee, without notice to or the consent of any of
the Holders, (i) to cure any ambiguity, (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, (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 of Counsel, adversely affect the status of any REMIC
created pursuant to this Agreement, 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 may require an
Opinion of Counsel (at the expense of the party requesting such amendment) to
the effect that such amendment is permitted under this paragraph. 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, qualify or
withdraw the then current rating assigned to the Certificates (and any Opinion
of Counsel requested by the Trustee in connection with any such amendment may
rely expressly on such confirmation as the basis therefor).

         (b) This Agreement may also be amended from time to time by the
Depositor, the Master Servicer and the Trustee with the consent of the Holders
of not less than 66 2/3% of the Class Principal Amount (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 adversely affect the status of any REMIC as a
REMIC or cause a tax to be imposed on such REMIC; 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 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 Amount (or Class Notional Amount) 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.

                                      118
<PAGE>

         (c) Promptly after the execution of any such amendment, the Trustee
shall furnish written notification of the substance of such amendment to each
Holder, the Depositor and to the Rating Agencies.

         (d) 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.

         (e) Notwithstanding anything to the contrary in any Servicing
Agreement, the Trustee shall not consent to any amendment of any Servicing
Agreement except pursuant to the standards provided in this Section with respect
to amendment of this Agreement.

         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 Certificateholders
representing specified percentages of aggregate outstanding Certificate
Principal Amount (or Notional Amount), Certificates owned by the Depositor, the
Master Servicer, the Trustee or any Servicer or Affiliates thereof are not to be
counted so long as such Certificates are owned by the Depositor, the Master
Servicer, the Trustee or any Servicer or Affiliates thereof.

         Section 11.05. Provision of Information.

         (a) For so long as any of the Certificates of any Series or Class are
"restricted securities" within the meaning of Rule 144(a)(3) under the Act, each
of the Depositor and the Trustee agree to cooperate with each other to provide
to any Certificateholders and to any prospective purchaser of Certificates
designated by such Certificateholder, upon the request of such Certificateholder
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 in
providing such information shall be reimbursed by the Depositor.

         (b) The Trustee will make available to any person to whom a Prospectus
was delivered, upon the request of such person specifying the document or
documents requested, (i) 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(c) and (ii) a copy of any other document incorporated by reference
in the Prospectus to the extent such document is in the possession of the
Trustee. Any reasonable out-of-pocket expenses incurred by the Trustee in
providing copies of such documents shall be reimbursed by the Depositor.

         (c) On each Distribution Date, the Trustee shall make available to the
Depositor a copy of the report delivered to Certificateholders pursuant to
Section 4.03.

         Section 11.06. Governing Law.

                                      119
<PAGE>

         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 GENERAL OBLIGATIONS LAW).

         Section 11.07. Notices.

         All demands, notices and communications 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 below
(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): received by (a) in the case of the Depositor, Structured Asset
Securities Corporation, 745 Seventh Avenue, 7th Floor, New York, New York 10019,
Attention: Mark Zusy, (b) in the case of the Trustee, JPMorgan Chase Bank, 4 New
York Plaza, 6th Floor, New York New York 10004-2477, Attention: Institutional
Trust Services/Global Debt, SARM 2004-3AC and (c) in the case of the Master
Servicer, Aurora Loan Services Inc., 2530 South Parker Road, Suite 601, Aurora,
Colorado 80014; Attention: President or as to each party such other address as
may hereafter be furnished by such party to the other parties in writing. Any
notice required or permitted to be mailed to a Holder shall be given by first
class mail, postage prepaid, at the address of such Holder as shown in the
Certificate Register. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have been duly given, whether or not
the Holder receives such notice.

         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.

                                      120
<PAGE>

         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 11.14.

         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;

               (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; and

               (vi) the making of a final payment pursuant to Section 7.02.

         (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, as
follows:

         If to Moody's, to:

         Moody's Investors Service, Inc.
         99 Church Street
         New York, New York 10007

         If to S&P, to:

         Standard & Poor's
         55 Water Street
         New York, New York  10041

         (c) The Trustee shall provide or make available to the Rating Agencies
reports prepared pursuant to Section 4.03. In addition, the Trustee 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 Trustee.

                                      121
<PAGE>

         Section 11.13. 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 11.14. Transfer of Servicing.

         The Seller agrees that it shall provide written notice to the Trustee
and the Master Servicer thirty days prior to any transfer or assignment by the
Seller of its rights under any Servicing Agreement or of the servicing
thereunder or delegation of its rights or duties thereunder or any portion
thereof to any Person other than the initial Servicer under such Servicing
Agreement; provided that the Seller shall not be required to provide prior
notice of any transfer of servicing that occurs within three months following
the Closing Date to an entity that is a Servicer on the Closing Date. In
addition, the ability of the Seller to transfer or assign its rights and
delegate its duties under a Servicing Agreement or to transfer the servicing
thereunder to a successor servicer shall be subject to the following conditions:

               (i) Such successor servicer must be qualified to service loans
         for FNMA or FHLMC;

               (ii) Such successor servicer must satisfy the seller/servicer
         eligibility standards in the applicable Servicing Agreement, exclusive
         of any experience in mortgage loan origination, and must be reasonably
         acceptable to the Master Servicer, whose approval shall not be
         unreasonably withheld;

               (iii) Such successor servicer must execute and deliver to the
         Trustee and the Master Servicer an agreement, in form and substance
         reasonably satisfactory to the Trustee and the Master Servicer, that
         contains an assumption by such successor servicer of the due and
         punctual performance and observance of each covenant and condition to
         be performed and observed by the applicable Servicer under the
         applicable Servicing Agreement or, in the case of a transfer of
         servicing to a party that is already a Servicer pursuant to this
         Agreement, an agreement to add the related Mortgage Loans to the
         Servicing Agreement already in effect with such Servicer;

               (iv) If the successor servicer is not a Servicer of Mortgage
         Loans at the time of such transfer, there must be delivered to the
         Trustee a letter from each Rating Agency to the effect that such
         transfer of servicing will not result in a qualification, withdrawal or
         downgrade of the then-current rating of any of the Certificates;

               (v) The Seller shall, at its cost and expense, take such steps,
         or cause the terminated Servicer to take such steps, as may be
         necessary or appropriate to effectuate and evidence the transfer of the
         servicing of the Mortgage Loans to such successor servicer, including,
         but not limited to, the following: (A) to the extent required by the
         terms of the Mortgage Loans and by applicable federal and state laws
         and regulations, the Seller shall cause the prior Servicer to timely
         mail to each obligor under a Mortgage Loan any required notices or
         disclosures describing the transfer of servicing of the Mortgage Loans
         to the successor servicer; (B) prior to the effective date of such
         transfer of servicing, the Seller shall cause the prior Servicer to

                                       122
<PAGE>

         transmit to any related insurer notification of such transfer of
         servicing; (C) on or prior to the effective date of such transfer of
         servicing, the Seller shall cause the prior Servicer to deliver to the
         successor servicer all Mortgage Loan Documents and any related records
         or materials; (D) on or prior to the effective date of such transfer of
         servicing, the Seller shall cause the prior Servicer to transfer to the
         successor servicer, or, if such transfer occurs after a Remittance Date
         but before the next succeeding Deposit Date, to the Master Servicer,
         all funds held by the applicable Servicer in respect of the Mortgage
         Loans; (E) on or prior to the effective date of such transfer of
         servicing, the Seller shall cause the prior Servicer to, after the
         effective date of the transfer of servicing to the successor servicer,
         continue to forward to such successor servicer, within one Business Day
         of receipt, the amount of any payments or other recoveries received by
         the prior Servicer, and to notify the successor servicer of the source
         and proper application of each such payment or recovery; and (F) the
         Seller shall cause the prior Servicer to, after the effective date of
         transfer of servicing to the successor servicer, continue to cooperate
         with the successor servicer to facilitate such transfer in such manner
         and to such extent as the successor servicer may reasonably request.

                                       123
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Trustee and the Master Servicer
have caused their names to be signed hereto by their respective officers
hereunto duly authorized as of the day and year first above written.

                                            STRUCTURED ASSET SECURITIES
                                              CORPORATION, as Depositor

                                            By:_________________________________
                                               Name:  Michael C. Hitzmann
                                               Title: Vice President

                                            JPMORGAN CHASE BANK,
                                                 as Trustee

                                            By:_________________________________
                                            Name:  Pei Huang
                                            Title: Assistant Vice President

                                            AURORA LOAN SERVICES INC.,
                                                 as Master Servicer

                                            By:_________________________________
                                               Name:  E. Todd Whittemore
                                               Title: Executive Vice President

Solely for purposes of Section 11.14,
accepted and agreed to by:

LEHMAN BROTHERS HOLDINGS INC.

By:___________________________________
   Name:  Stanley P. Labanowski
   Title: Senior Vice President

<PAGE>

                                    EXHIBIT A
                                    ---------

                              FORMS OF CERTIFICATES

                             [INTENTIONALLY OMITTED]

                                       A-1
<PAGE>

                                   EXHIBIT B-1
                                   -----------

                          FORM OF INITIAL CERTIFICATION

                                                      _________________
Date
JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2477

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601
Aurora, Colorado 80014

      Re:     Trust Agreement (the "Trust Agreement"), dated as of February 1,
              2004 among Structured Asset Securities Corporation, as Depositor,
              Aurora Loan Services Inc., as Master Servicer and JPMorgan Chase
              Bank, as Trustee, with respect to Structured Adjustable Rate
              Mortgage Loan Trust Mortgage Pass-Through Certificates, Series
              2004-3AC

Ladies and Gentlemen:

         In accordance with Section 2.02(a) of the Trust Agreement, subject to
review of the contents thereof, the undersigned, as Custodian on behalf of the
Trustee, hereby certifies that it (or its custodian) has received the documents
listed in Section 2.01(b) of the Trust Agreement for each Mortgage File
pertaining to each Mortgage Loan listed on Schedule A, to the Trust Agreement,
subject to any exceptions noted on Schedule I hereto.

         Capitalized words and phrases used herein and not otherwise defined
herein shall have the respective meanings assigned to them in the Trust
Agreement. This Certificate is subject in all respects to the terms of Section
2.02 of the Trust Agreement and the Trust Agreement sections cross-referenced
therein.

                                                     [Custodian], on behalf of
                                                     JPMORGAN CHASE BANK,
                                                     as Trustee

                                                     By:________________________
                                                        Name:
                                                        Title:

                                      B-1-1
<PAGE>

                                   EXHIBIT B-2
                                   -----------

                          FORM OF INTERIM CERTIFICATION

                                                      _________________
Date
JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2477

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601

Aurora, Colorado 80014

      Re:     Trust Agreement (the "Trust Agreement"), dated as of February 1,
              2004 among Structured Asset Securities Corporation, as Depositor,
              Aurora Loan Services Inc., as Master Servicer and JPMorgan Chase
              Bank, as Trustee, with respect to Structured Adjustable Rate
              Mortgage Loan Trust Mortgage Pass-Through Certificates, Series
              2004-3AC

Ladies and Gentlemen:

         In accordance with Section 2.02(b) of the Trust Agreement, the
undersigned, as Custodian on behalf of the Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on Schedule I hereto) it (or its custodian) has
received the applicable documents listed in Section 2.01(b) of the Trust
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents identified above and has
determined that each such document appears regular on its face and appears to
relate to the Mortgage Loan identified in such document.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Trust Agreement. This Certificate is qualified
in all respects by the terms of said Trust Agreement including, but not limited
to, Section 2.02(b).

                                                     [Custodian], on behalf of
                                                     JPMORGAN CHASE BANK,
                                                     as Trustee

                                                     By:________________________
                                                        Name:
                                                        Title:

                                      B-2-1
<PAGE>

                                   EXHIBIT B-3

                           FORM OF FINAL CERTIFICATION

                                                                ________________
                                                                       Date

JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2477

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601

Aurora, Colorado 80014

      Re:     Trust Agreement (the "Trust Agreement"), dated as of February 1,
              2004 among Structured Asset Securities Corporation, as Depositor,
              Aurora Loan Services Inc., as Master Servicer and JPMorgan Chase
              Bank, as Trustee, with respect to Structured Adjustable Rate
              Mortgage Loan Trust Mortgage Pass-Through Certificates, Series
              2004-3AC

Ladies and Gentlemen:

         In accordance with Section 2.02(d) of the Trust Agreement, the
undersigned, as Custodian on behalf of the Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on Schedule I hereto) it (or its custodian) has
received the applicable documents listed in Section 2.01(b) of the Trust
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in the Mortgage Loan Schedule is
correct.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Trust Agreement. This Certificate is qualified
in all respects by the terms of said Trust Agreement.

                                                     [Custodian], on behalf of
                                                     JPMORGAN CHASE BANK,
                                                     as Trustee

                                                     By:________________________
                                                        Name:
                                                        Title:

                                      B-3-1
<PAGE>

                                   EXHIBIT B-4
                                   -----------

                               FORM OF ENDORSEMENT

         Pay to the order of JPMorgan Chase Bank, as trustee (the "Trustee")
under the Trust Agreement dated as of February 1, 2004, among Structured Asset
Securities Corporation, as Depositor, Aurora Loan Services Inc., as Master
Servicer and JPMorgan Chase Bank, as Trustee relating to Structured Adjustable
Rate Mortgage Loan Trust Mortgage Pass-Through Certificates, Series 2004-3AC,
without recourse.

                                          ______________________________________
                                            [current signatory on note]

                                          By:___________________________________
                                             Name:
                                             Title:

                                      B-4-1
<PAGE>

                                    EXHIBIT C
                                    ---------

                  REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

                                                            ____________________
                                                                   Date

[Addressed to Trustee
or, if applicable, custodian]

         In connection with the administration of the mortgages held by you as
Trustee under a certain Trust Agreement dated as of February 1, 2004 among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services
Inc., as Master Servicer and JPMorgan Chase Bank, as Trustee (the "Trust
Agreement"), the undersigned Master Servicer hereby requests a release of the
Mortgage File held by you as Trustee with respect to the following described
Mortgage Loan for the reason indicated below.

         Mortgagor's Name:

         Address:

         Loan No.:

         Reason for requesting file:

1.       Mortgage Loan paid in full. (The Master Servicer hereby certifies that
         all amounts received in connection with the loan have been or will be
         credited to the Collection Account or the Certificate Account
         (whichever is applicable) pursuant to the Trust Agreement.)

2.       The Mortgage Loan is being foreclosed.

3.       Mortgage Loan substituted. (The Master Servicer hereby certifies that a
         Qualifying Substitute Mortgage Loan has been assigned and delivered to
         you along with the related Mortgage File pursuant to the Trust
         Agreement.)

4.       Mortgage Loan repurchased. (The Master Servicer hereby certifies that
         the Purchase Price has been credited to the Collection Account or the
         Certificate Account (whichever is applicable) pursuant to the Trust
         Agreement.)

5.       Other. (Describe)

                                      C-1
<PAGE>

         The undersigned acknowledges that the above Mortgage File will be held
by the undersigned in accordance with the provisions of the Trust Agreement and
will be returned to you within ten (10) days of our receipt of the Mortgage
File, except if the Mortgage Loan has been paid in full, or repurchased or
substituted for a Qualifying Substitute Mortgage Loan (in which case the
Mortgage File will be retained by us permanently) and except if the Mortgage
Loan is being foreclosed (in which case the Mortgage File will be returned when
no longer required by us for such purpose).

         Capitalized terms used herein shall have the meanings ascribed to them
in the Trust Agreement.

                                            ____________________________________
                                                 [Name of Master Servicer]

                                            By:_________________________________
                                               Name:
                                               Title: Servicing Officer

                                       C-2
<PAGE>

                                   EXHIBIT D-1
                                   -----------

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)

STATE OF                            )
                                    )  ss.:
COUNTY OF                           )

                  [NAME OF OFFICER], _________________ being first duly sworn,
deposes and says:

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.

1.       That the Purchaser's Taxpayer Identification Number is ______________.

2.       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.

3.       That the Purchaser is not, and on __________________ [date of transfer]
         will not be, an employee benefit plan subject to Title I of the
         Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
         Section 4975 of the Code or substantially similar rules under state,
         local or federal law ("Similar Law"), the trustee of any such plan or a
         person acting on behalf of any such plan or investing the assets of any
         such plan to acquire a Residual Certificate.

                                      D-1-1
<PAGE>

4.       That the Purchaser hereby acknowledges that under the terms of the
         Trust Agreement (the "Agreement") among Structured Asset Securities
         Corporation, JPMorgan Chase Bank, as Trustee and Aurora Loan Services
         Inc., as Master Servicer, dated as of February 1, 2004, no transfer of
         a Residual Certificate shall be permitted to be made to any person
         unless the Depositor and the Trustee have received a certificate from
         such transferee containing the representations in paragraphs 2, 3 and 4
         hereof.

5.       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").

6.       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, and that the
         Purchaser has provided financial statements or other financial
         information requested by the transferor in connection with the transfer
         of the Residual Certificate in order to permit the transferor to assess
         the financial capability of the Purchaser to pay such taxes.

7.       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 2, paragraph 5 or
         paragraph 9 hereof are not satisfied or that the Purchaser has reason
         to believe does not satisfy the requirements set forth in paragraph 6
         hereof, and (ii) without obtaining from the prospective Purchaser an
         affidavit substantially in this form and providing to the Trustee a
         written statement substantially in the form of Exhibit D-2 to the
         Agreement.

8.       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.

9.       That the Purchaser (i) is a 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 and the Trustee with an effective Internal Revenue Service
         Form W-8 ECI (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. "Non-U.S. Person" means any person
         other than (i) a citizen or resident of the United States; (ii) a
         corporation (or entity treated as a corporation for tax purposes)
         created or organized in the United States or under the laws of the
         United States or of any state thereof, including, for this purpose, the
         District of Columbia; (iii) a partnership (or entity treated as a
         partnership for tax purposes) organized in the United States or under
         the laws of the United States or of any state thereof, including, for
         this purpose, the District of Columbia (unless provided otherwise by
         future Treasury regulations); (iv) an estate whose income is includible
         in gross income for United States income tax purposes regardless of its
         source; (v) a trust, if a court within the United States is able to

                                      D-1-2
<PAGE>

         exercise primary supervision over the administration of the trust and
         one or more U.S. Persons have authority to control all substantial
         decisions of the trust or; (vi) and, to the extent provided in Treasury
         regulations, certain trusts in existence prior to 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.

10.      That the Purchaser agrees to such amendments of the Trust 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 6 and paragraph 9 hereof.

11.      That the Purchaser consents to the designation of the Trustee as its
         agent to act as "tax matters person" of the Trust Fund pursuant to the
         Trust Agreement.

         Terms used in this transfer affidavit which are not otherwise defined
herein have the respective meanings assigned thereto in the Trust Agreement.

                                      D-1-3
<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__.

                                      D-1-4
<PAGE>

                                   EXHIBIT D-2
                                   -----------

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)

                                                             ___________________
                                                                       Date

                  Re:  Structured Adjustable Rate Mortgage Loan Trust Mortgage
                       Pass-Through Certificates, Series 2004-3AC
                       ------------------------------------------

                  _______________________ (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 6 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:

                                      D-2-1
<PAGE>

                                    EXHIBIT E
                                    ---------

                              SERVICING AGREEMENTS

                             [INTENTIONALLY OMITTED]

                                       E-1
<PAGE>

                                    EXHIBIT F
                                    ---------

                     FORM OF RULE 144A TRANSFER CERTIFICATE

         Re:   Structured Adjustable Rate Mortgage Loan Trust Mortgage
               Pass-Through Certificates, Series 2004-3AC

               Reference is hereby made to the Trust Agreement (the "Trust
Agreement"), dated as of February 1, 2004 among Structured Asset Securities
Corporation, as Depositor, Aurora Loan Services Inc., as Master Servicer and
JPMorgan Chase Bank, as Trustee. Capitalized terms used but not defined herein
shall have the meanings given to them in the Trust Agreement.

               This letter relates to $_________ initial Certificate Principal
Amount 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
Trust 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 Placement Agent and the Depositor.

                                         _______________________________________
                                              [Name of Transferor]

                                         By:____________________________________
                                              Name:
                                              Title:

Dated: __________________, ________

                                       F-1
<PAGE>

                                    EXHIBIT G
                                    ---------

                         FORM OF PURCHASER'S LETTER FOR

                        INSTITUTIONAL ACCREDITED INVESTOR

                                                              __________________
                                                                    Date

Dear Sirs:

         In connection with our proposed purchase of $______________ principal
amount of Structured Adjustable Rate Mortgage Loan Trust Mortgage Pass-Through
Certificates, Series 2004-3AC (the "Privately Offered Certificates") of
Structured Asset Securities Corporation (the "Depositor") which are held in the
form of Definitive Certificates, 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 (which includes the Placement Agent) 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 Trustee under the Trust Agreement
         (the "Trust Agreement"), dated as of February 1, 2004 among Structured
         Asset Securities Corporation, as Depositor, Aurora Loan Services Inc.,
         as Master Servicer and JPMorgan Chase Bank, 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 Trustee and the Depositor 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.

                                       G-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, Similar Law and the Underwriter's
         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 Trust Agreement.

         Terms used in this letter which are not otherwise defined herein have
the respective meanings assigned thereto in the Trust Agreement.

         You and the Depositor 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:

                                       G-2
<PAGE>

                                    EXHIBIT H
                                    ---------

                        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 subject to Title I of the
         Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
         Section 4975 of the Internal Revenue Code of 1986, as amended (the
         "Code") or substantially similar rules under state, local or other
         federal law ("Similar Law"), the trustee of any such plan or a person
         acting on behalf of any such plan or investing the assets of any such
         plan; or (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 are covered under Sections I and III of PTCE 95-60.

3.       The Investor hereby acknowledges that under the terms of the Trust
         Agreement (the "Agreement") among Structured Asset Securities
         Corporation, as Depositor, Aurora Loan Services Inc., as Master
         Servicer and JPMorgan Chase Bank, as Trustee, dated as of February 1,
         2004, no transfer of the ERISA-Restricted Certificates (other than the
         Class R Certificate) shall be permitted to be made to any person unless
         the Depositor and Trustee have received a certificate from such
         transferee in the form hereof or an opinion of counsel as provided
         herein.

4.       Capitalized terms used but not defined herein shall have the meanings
         given to such terms in the Trust Agreement.

                                       H-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__.

                                       H-2
<PAGE>

                                    EXHIBIT I
                                    ---------

                            MONTHLY REMITTANCE ADVICE

                             [INTENTIONALLY OMITTED]

                                       I-1

<PAGE>

                                    EXHIBIT J
                                    ---------

                      MONTHLY ELECTRONIC DATA TRANSMISSION

                             [INTENTIONALLY OMITTED]

                                      J-1
<PAGE>

                                    EXHIBIT K
                                    ---------

                              CUSTODIAL AGREEMENTS

                             [INTENTIONALLY OMITTED]

                                       K-1
<PAGE>

                                   EXHIBIT L-1
                                   -----------

                          FORM OF TRANSFER CERTIFICATE
                  FOR TRANSFER FROM RESTRICTED GLOBAL SECURITY
                         TO REGULATION S GLOBAL SECURITY
                      (Transfers pursuant to ss. 3.03(h)(B)
                                of the Agreement)
                      -------------------------------------

                Re:   Structured Adjustable Rate Mortgage Loan Trust Mortgage
                      Loan Trust Mortgage Pass-Through Certificates,
                      Series 2004-3AC

         Reference is hereby made to the Trust Agreement (the "Agreement") among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services
Inc., as Master Servicer and JPMorgan Chase Bank, as Trustee, dated as of
February 1, 2004. Capitalized terms used but not defined herein shall have the
meanings given to them in the Agreement.

         This letter relates to U.S. $ aggregate principal amount of Securities
which are held in the form of a Restricted Global Security with DTC in the name
of [name of transferor] (the "Transferor") to effect the transfer of the
Securities in exchange for an equivalent beneficial interest in a Regulation S
Global Security.

         In connection with such request, the Transferor does hereby certify
that such transfer has been effected in accordance with the transfer
restrictions set forth in the Agreement and the Securities and in accordance
with Rule 904 of Regulation S, and that:

                  a. the offer of the Securities was not made to a person in the
                  United States;

                  b. at the time the buy order was originated, the transferee
                  was outside the United States or the Transferor and any person
                  acting on its behalf reasonably believed that the transferee
                  was outside the United States;

                  c. no directed selling efforts have been made in contravention
                  of the requirements of Rule 903 or 904 of Regulation S, as
                  applicable;

                  d. the transaction is not part of a plan or scheme to evade
                  the registration requirements of the United States Securities
                  Act of 1933, as amended; and

                  e. the transferee is not a U.S. person (as defined in
                  Regulation S).

                                      L-1-1
<PAGE>

         You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

                                                     ___________________________
                                                     [Name of Transferor]

                                                     By:________________________
                                                        Name:
                                                        Title:

Date:__________________________________, ____

                                      L-1-2
<PAGE>

                                   EXHIBIT L-2
                                   -----------

                    FORM OF TRANSFER CERTIFICATE FOR TRANSFER
                        FROM REGULATION S GLOBAL SECURITY
                          TO RESTRICTED GLOBAL SECURITY
                      (Transfers pursuant to ss. 3.03(h)(C)
                                of the Agreement)
                      -------------------------------------

                Re:   Structured Adjustable Rate Mortgage Loan Trust Mortgage
                      Pass-Through Certificates, Series 2004-3AC
                      ------------------------------------------

         Reference is hereby made to the Trust Agreement (the "Agreement") among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services
Inc., as Master Servicer and JPMorgan Chase Bank, as Trustee, dated as of
February 1, 2004. Capitalized terms used but not defined herein shall have the
meanings given to them in the Agreement.

         This letter relates to U.S. $______ aggregate principal amount of
Securities which are held in the form of a Regulations S Global Security in the
name of [name of transferor] ____________ (the "Transferor") to effect the
transfer of the Securities in exchange for an equivalent beneficial interest in
a Restricted Global Security.

         In connection with such request, and in respect of such Securities, the
Transferor does hereby certify that such Securities are being transferred in
accordance with (i) the transfer restrictions set forth in the Agreement and the
Securities and (ii) Rule 144A under the United States Securities Act of 1933, as
amended, to a transferee that the Transferor reasonably believes is purchasing
the Securities for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a qualified institutional buyer within the meaning of Rule 144A, in a
transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

                                                     ___________________________
                                                     [Name of Transferor]

                                                     By:________________________
                                                        Name:
                                                        Title:

Date:___________________________________, ____

                                      L-2-1
<PAGE>

                                    EXHIBIT M
                                    ---------

                     FORM OF CERTIFICATION TO BE PROVIDED TO

              THE DEPOSITOR AND THE MASTER SERVICER BY THE TRUSTEE

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601
Aurora, Colorado 80014

Re:      Structured Adjustable Rate Mortgage Loan Trust,
         Mortgage Pass-Through Certificates, Series 2004-3AC

Reference is made to the Trust Agreement, dated as of February 1, 2004 (the
"Trust Agreement"), by and among JPMorgan Chase Bank, as trustee (the
"Trustee"), Aurora Loan Services, Inc., as master servicer (the "Master
Servicer"), and Structured Asset Securities Corporation, as depositor (the
"Depositor"). The Trustee hereby certifies to the Depositor and the Master
Servicer, and its respective officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification, that:

(i)      The Trustee has reviewed the annual report on Form 10-K for the fiscal
         year [[ ]], and all reports on Form 8-K containing distribution reports
         filed in respect of periods included in the year covered by that annual
         report, relating to the above referenced trust;

(ii)     Based solely upon the information provided to us by the Master
         Servicer, the information set forth in the reports referenced in (i)
         above does not contain any untrue statement of material fact; and

(iii)    Based on my knowledge, the distribution information required to be
         provided by the Trustee under the Trust Agreement is included in these
         reports.

Date:

                                              JPMorgan Chase Bank, as Trustee

                                              By:      _________________________
                                              Name:    _________________________
                                              Title:   _________________________

                                       M-1
<PAGE>

                                   SCHEDULE A
                                   ----------

                             MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

<PAGE>

                                   SCHEDULE B
                                   ----------

                         EMPLOYEE MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

<PAGE>

                                   SCHEDULE C
                                   ----------

                            AX MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

<PAGE>

                                   SCHEDULE D
                                   ----------

                           PAX MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]<PAGE>
                                                                   Exhibit 10.22

                                  OFFICE LEASE

                                     BETWEEN

                               FDC OFFICE I, LLC,
                      A COLORADO LIMITED LIABILITY COMPANY
                                  (AS LANDLORD)

                                       AND

                          LENDERS RESOURCE INCORPORATED
                             A COLORADO CORPORATION
                                   (AS TENANT)

<TABLE>
<CAPTION>
Section                                                                                                         Page
-------                                                                                                         ----

<S>                                                                                                              <C>
1.       PRINCIPAL TERMS..........................................................................................1

2.       GENERAL COVENANTS........................................................................................3

3.       TERM.....................................................................................................3

4.       RENT.....................................................................................................3

5.       COMPLETION OF THE PREMISES...............................................................................3

6.       OPERATING EXPENSES.......................................................................................4

7.       SERVICES.................................................................................................8

8.       QUIET ENJOYMENT..........................................................................................9

9.       CHARACTER OF OCCUPANCY...................................................................................9

10.      MAINTENANCE, ALTERATIONS AND REENTRY BY LANDLORD.........................................................9

11.      ALTERATIONS AND REPAIRS BY TENANT.......................................................................10

12.      MECHANICS' LIENS........................................................................................11

13.      SUBLETTING AND ASSIGNMENT...............................................................................11

14.      DAMAGE TO PROPERTY......................................................................................13

15.      INDEMNITY TO LANDLORD...................................................................................13

16.      SURRENDER AND NOTICE....................................................................................13

17.      INSURANCE, CASUALTY, AND RESTORATION OF PREMISES........................................................13

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
Section                                                                                                         Page
-------                                                                                                         ----

<S>                                                                                                              <C>
18.      CONDEMNATION............................................................................................14

19.      DEFAULT BY TENANT.......................................................................................15

20.      DEFAULT BY LANDLORD.....................................................................................18

21.      SUBORDINATION AND ATTORNMENT............................................................................18

22.      REMOVAL OF TENANT'S PROPERTY............................................................................18

23.      HOLDING OVER: TENANCY MONTH-TO-MONTH....................................................................19

24.      PAYMENTS AFTER TERMINATION..............................................................................19

25.      STATEMENT OF PERFORMANCE................................................................................19

26.      MISCELLANEOUS...........................................................................................19

27.      AUTHORITIES FOR ACTION AND NOTICE.......................................................................21

28.      PARKING.................................................................................................22

29.      BROKERAGE...............................................................................................22

30.      COUNTERPARTS............................................................................................22

31.      EXHIBITS................................................................................................22

32.      OPTIONS.................................................................................................22

33.      PERMIT CONTINGENCY......................................................................................23

34.      EXPANSION...............................................................................................23

35.      GUARANTY................................................................................................24

36.      RIGHT OF FIRST REFUSAL..................................................................................24

</TABLE>

<PAGE>

                                 LEASE AGREEMENT

         THIS LEASE, dated as of ____________, 1997, is by and between FDC
OFFICE I, LLC, a Colorado limited liability company ("Landlord"), and LENDERS
RESOURCE INCORPORATED, a Colorado corporation ("Tenant").

                              W I T N E S S E T H:

         1. PRINCIPAL TERMS. Capitalized terms, first appearing in quotations in
this Section, elsewhere in the Lease or any Exhibits, are definitions of such
terms as used in the Lease and Exhibits and shall have the defined meaning
whenever used.

<TABLE>
<CAPTION>

<S>                                                          <C>
         1.1      "BUILDING":                                FDC Office I located at, _________ Loveland, CO 80538
                                                             in the Rocky Mountain Village Business Park.

         1.2      "PREMISES":                                approximately 15,879 rentable square feet Suite # _____

         1.3      "INITIAL TERM":                            20 years
                                                             "Commencement Date": The date of Substantial
                                                             Completion, as defined in the attached Work Letter.
                                                             "Expiration Date": The last day of the month in which
                                                             the twentieth anniversary of the day immediately prior
                                                             to the Commencement Date occurs.

         1.4      "BASE RENT":                               For each of the first 5 years of the Initial Term, the
                                                             annual Base Rent shall equal the lesser of (i) the
                                                             Total Construction Costs for the Premises, as said term
                                                             is defined in the attached Work Agreement times 11%
                                                             (i.e., assuming Total Construction Costs of $106.80 x
                                                             15,879 sq. ft. = $1,695,877.20 x 11% = $186,547.00 or
                                                             (ii) $186,578.00 (i.e., $11.75 x 15,879 sq. ft.).  For
                                                             each of the 6th through the 10th years of the Initial
                                                             Term, the annual Base Rent shall equal 115% of the Base
                                                             Rent payable in the 5th year.  For each of the 11th
                                                             through the 15th years of the Initial Term, the Base
                                                             Rent shall equal 115% of the Base Rent payable in the
                                                             10th year.  For the 16th through the 20th years of the
                                                             Initial Lease Term, the Base Rent shall equal 115 % of
                                                             the Base Rent payable in the 15th year.  The Base Rent
                                                             for the first (1st) month of the Initial Term shall be
                                                             abated.

</TABLE>

                                       1
<PAGE>

<TABLE>
<CAPTION>

<S>                                                          <C>
         1.5      OPERATING EXPENSES:                        Pro Rata Share: 50%

         1.6      "DEPOSIT":                                 Upon signing of this lease agreement, the first months
                                                             rent shall be waived and Lessee shall prepay the second
                                                             months rent ($15,545.00)

         1.7      "PERMITTED USE":                           General Office

         1.8      "GUARANTOR":                               Factual Data Corp. and FDC Group, Inc.

         1.9      PARKING:                                   65 spaces

         1.10     LANDLORD'S NOTICE ADDRESS:                 200 East 7th Street, Suite 314
                                                             Loveland, Colorado  80537

                                                             With copy to:

                                                             Isaacson, Rosenbaum, Woods & Levy, P.C. 633 17th
                                                             Street, Suite 2200
                                                             Denver, Colorado 80202

         1.11     LANDLORD'S TAX I.D.:                       84-1412236

         1.12     TENANT'S NOTICE ADDRESS:                   Lenders Resource Incorporated
                  Precommencement Address:                   c/o Factual Data, Corp.
                                                             3665 JFK Parkway, Bldg. 1, 2nd Floor
                                                             Fort Collins, CO  80527-0458
                  Post Commencement Address:                 Lenders Resource Incorporated

                                                             -----------------------------------------------
                                                             Loveland, CO  80538

                  with copy to:                              Ramsey D. Myatt
                                                             March & Myatt
                                                             110 East Oak Street, Suite 200
                                                             Ft. Collins, Colorado  80524

         1.13     TENANT'S TAX I.D.:                         84-1289881

         1.14     LANDLORD'S BROKER:                         Kast Real Estate Services

         1.15     COOPERATING BROKER:                        None

         1.16     ATTACHMENTS:                               [check if applicable]
                                                                      Addendum
                                                                x     Work Letter
                                                                x     Exhibit A - The Premises
                                                                x     Exhibit B - Real Property

</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>

<S>                                                             <C>
                                                                x     Exhibit C - Commencement Certificate
                                                                x     Exhibit D - Rules and Regulations
                                                                x     Exhibit E - Form of Guaranty
</TABLE>

         2. GENERAL COVENANTS. Tenant covenants and agrees to pay Rent and
perform the obligations hereafter set forth and in consideration therefor
Landlord leases to Tenant the Premises as depicted on the attached EXHIBIT A,
together with a non-exclusive right, subject to the provisions hereof, to use
plazas, common areas, or other areas on the real property legally described on
EXHIBIT B (the "Real Property") designated by Landlord for the exclusive or
non-exclusive use of the tenants of the Building ("Common Areas"). The Building,
Real Property, Common Areas, and appurtenances are hereinafter collectively
sometimes called the "Building Complex."

         3. TERM. The Initial Term of the Lease commences at 12:01 a.m. on the
Commencement Date and terminates at 12:00 midnight on the Expiration Date (the
Initial Term together with any extensions thereof is herein referred to as the
"Term.").

         4. RENT. Subject to the provisions below, commencing on the
Commencement Date and on the first day of each month thereafter, Tenant shall
pay Base Rent in the amount stated in Section 1.4, in advance without notice
(all amounts, including Base Rent, to be paid by Tenant pursuant to this Lease
as the context requires are sometimes referred to collectively as "Rent(s)").
Rents shall be paid without set off, abatement, or diminution, at the office of
Landlord in Loveland, Colorado, or at such other place as Landlord from time to
time designates in writing. Notwithstanding the foregoing or the provisions of
Section 1.4 to the contrary, the Base Rent for the first month shall be abated.

         5. COMPLETION OF THE PREMISES.

         5.1 Provisions regarding completion of the Premises are set forth in
the attached Work Letter. "Initial Tenant Finish" means the Premises in its
as-is condition as modified by all work, if any, performed by Landlord at its
expense prior to the Commencement Date in accordance with the Work Letter.
Except as provided in the Work Letter, Landlord has no obligation for the
completion or remodeling of the Premises, and Tenant accepts the Premises in its
"as is" condition on the Commencement Date. If Landlord is delayed in delivering
the Premises to Tenant in accordance with the Work Letter then the Commencement
Date will be postponed to the date Landlord delivers the Premises to Tenant. If
delivery is on other than the first day of the month, then the Commencement Date
will be the first day of the month following the delivery date but all
provisions hereof, including Tenant's obligation to pay Rent (prorated for a
partial month), will be in effect as of the delivery date. The postponement of
Tenant's obligation to pay Rent is in full settlement of all claims which Tenant
may otherwise have by reason of such delay. If the Commencement Date is delayed,
the Expiration Date shall be extended so that the Term will continue for the
full period set forth in Section 1.3. As soon as the Term commences, Landlord
and Tenant agree to execute a commencement agreement in the form attached as
EXHIBIT C, setting forth the exact Commencement Date and Expiration Date.

         5.2 Except as provided in the Work Letter, taking possession of the
Premises by Tenant is conclusive evidence that the Premises are in the condition
agreed between Landlord

                                       3
<PAGE>

and Tenant and acknowledgment by Tenant of satisfactory completion of any work
which Landlord has agreed to perform.

         6. OPERATING EXPENSES.

         6.1 Definitions. The additional terms below have the following meanings
in this Lease:

            (1) "Landlord's Accountants" means that individual or firm employed
by Landlord from time to time to keep the books and records for the Building
Complex, and/or to prepare the federal and state income tax returns for Landlord
with respect to the Building Complex, which books and records shall be certified
to by a representative of Landlord. All determinations made hereunder shall be
made by Landlord's Accountants unless otherwise stated.

            (2) "Rentable Area" means approximately 31,000 rentable square feet
of space. If there is a significant change in the aggregate Rentable Area as a
result of an addition, partial destruction, modification to building design, or
similar cause which causes a reduction or increase in the Rentable Area on a
permanent basis or, if Landlord remeasures the Building and a change in Rentable
Area occurs, Landlord's Accountants shall make such adjustments in the
computations as are necessary to provide for such change.

            (3) "Tenant's Pro Rata Share" means the percentage set forth in
Section 1.5, which percentage has been computed by dividing the total rentable
square footage of the Premises by the Rental Area. If Tenant, at any time during
the Term, leases additional space in the Building or if the Rentable Area is
adjusted, Tenant's Pro Rata Share shall be recomputed by dividing the total
rentable square footage of space then leased by Tenant (including any additional
space) by the Rentable Area and the resulting figure shall become Tenant's Pro
Rata Share.

            (4) "Operating Expense Year" means each calendar year during the
Term, except that the first Operating Expense Year begins on the Commencement
Date and ends on December 31 of such year and the last Operating Expense Year
begins on January 1 of the calendar year in which this Lease expires or is
terminated and ends on the date of such expiration or termination. If an
Operating Expense Year is less than twelve (12) months, Operating Expenses for
such year shall be prorated.

            (5) "Operating Expenses" means all operating expenses of any kind or
nature, paid or incurred by the Landlord, which are in Landlord's reasonable
judgment necessary, appropriate, or customarily incurred in connection with the
operation, service and maintenance of the Building Complex including costs
incurred in fulfillment of Landlord's services, operation and maintenance
obligations under the terms of this Lease. Operating Expenses include:

               (a) All real property taxes and assessments levied against the
Building Complex by any governmental or quasi-governmental authority, including
taxes, assessments, surcharges, or service or other fees of a nature not
presently in effect which are hereafter levied on the Building Complex as a
result of the use, ownership or operation of the Building Complex or for any
other reason, whether in lieu of or in addition to, any current real estate
taxes and

                                       4
<PAGE>

assessments. However, any taxes which are levied on the rent of the Building
Complex will be determined as if the Building Complex were Landlord's only real
property. In no event do taxes and assessments include any federal or state
income taxes levied or assessed on Landlord. Expenses for tax consultants to
contest taxes or assessments are also included as Operating Expenses (all of the
foregoing are collectively referred to herein as "Taxes"). Taxes also include
special assessments, license taxes, business license fees, business license
taxes, commercial rental taxes, levies, charges, penalties or taxes, imposed by
any authority against the Premises, Building Complex or any legal or equitable
interest of Landlord. Special assessments are deemed payable in such number of
installments permitted by law, whether or not actually so paid, and include any
applicable interest on such installments. Taxes (other than special assessments)
are computed on an accrual basis based on the year in which they are levied,
even though not paid until the following Operating Expense Year;

               (b) Costs of supplies, including costs of relamping and replacing
ballasts in all Building standard tenant lighting;

               (c) Costs of energy for the Building Complex, including costs of
propane, butane, natural gas, steam, electricity, solar energy and fuel oils,
coal or any other energy sources;

               (d) Costs of water and sanitary and storm drainage services;

               (e) Costs of security services;

               (f) Costs of general maintenance, repairs, and replacements
including costs under HVAC and other mechanical maintenance contracts; and
repairs and replacements of equipment used in maintenance and repair work;

               (g) Costs of maintenance, repair and replacement of landscaping;

               (h) Insurance premiums for the Building Complex, including
all-risk or multi-peril coverage, together with loss of rent endorsement; the
part of any claim paid under the deductible portion of any insurance policy
carried by Landlord; public liability insurance; and any other insurance carried
by Landlord on any component parts of the Building Complex;

               (i) All labor costs, including wages, costs of worker's
compensation insurance, payroll taxes, fringe benefits, including pension,
profit-sharing and health, and legal fees and other costs incurred in resolving
any labor dispute;

               (j) Professional building management fees, costs and expenses,
including costs of office space and storage space required by management for
performance of its services (said building management may, at Landlord's option,
be performed either by a third-party or Landlord affiliated property management
company);

               (k) Legal, accounting, inspection, and other consulting fees
(including fees for consultants for services designed to produce a reduction in
Operating Expenses or improve the operation, maintenance or state of repair of
the Building Complex);

                                       5
<PAGE>

               (l) Costs of capital improvements and structural repairs and
replacements to the Building Complex to conform to changes subsequent to the
date of issuance of the shell and core certificate of occupancy for the Building
in any Applicable Laws hereinafter defined (herein "Required Capital
Improvements"); and the costs of any capital improvements and structural repairs
and replacements designed primarily to reduce Operating Expenses (herein "Cost
Savings Improvements"). Expenditures for Required Capital Improvements and Cost
Savings Improvements will be amortized at a market rate of interest over the
useful life of such capital improvement (as determined by Landlord's
Accountants); however, the amortized amount of any Cost Savings Improvement in
any year will be equal to the estimated resulting reduction in Operating
Expenses;

               (m) Costs incurred for Landlord's Accountants including costs of
any experts and consultants engaged to assist in making the computations; and

               (n) All dues, assessments, impositions and charges payable to
associations;

"Operating Expenses" do not include:

                  (i) Costs of work, including painting and decorating, which
         Landlord performs for any tenant other than work of a kind and scope
         which Landlord is obligated to furnish to all tenants whose leases
         contain a rental adjustment provision similar to this one;

                  (ii) Costs of repairs or other work occasioned by fire,
         windstorm or other insured casualty to the extent of insurance proceeds
         received;

                  (iii) Leasing commissions, advertising expenses, and other
         costs incurred in leasing space in the Building;

                  (iv) Costs of repairs or rebuilding necessitated by
         condemnation;

                  (v) Interest on borrowed money or debt amortization, except as
         specifically set forth above;

                  (vi) Depreciation on the Building Complex; or

                  (vii) To the extent paid directly by the Tenant, as
         hereinafter provided, electrical costs for the Premises and janitorial
         services for the Premises.

If any lease entered into by Landlord with any tenant in the Building provides
for a separate basis of computation for any Operating Expenses with respect to
its leased premises, Landlord's Accountants may modify the computation of Base
Operating Expenses, Rentable Area, and Operating Expenses for a particular
Operating Expense Year to eliminate or modify any expenses which are paid for in
whole or in part by such tenant. If the Rentable Area is not fully occupied
during any particular Operating Expense Year, Landlord's Accountants may adjust
those Operating Expenses which are affected by occupancy for the particular
Operating Expense

                                       6
<PAGE>

Year to reflect 100% occupancy. Furthermore, in making any computations
contemplated hereby, Landlord's Accountants may make such other modifications to
the computations as are required in their judgment to achieve the intention of
the parties hereto.

         6.2 Estimated Payments. During each Operating Expense Year beginning
with the first month of the first Operating Expense Year and continuing each
month thereafter throughout the Term, Tenant shall pay Landlord, at the same
time as Base Rent is paid, an amount equal to 1/12 of Landlord's estimate of
Tenant's Pro Rata Share of any projected increases in Operating Expenses for the
particular Operating Expense Year in excess of Base Operating Expenses
("Estimated Payment").

         6.3 Annual Adjustments.

            (1) Following the end of each Operating Expense Year, Landlord shall
submit to Tenant a statement setting forth the exact amount of Tenant's Pro Rata
Share of the Operating Expenses for the Operating Expense Year just completed.
Beginning with the statement for the second Operating Expense Year, each
statement shall set forth the difference, if any, between Tenant's actual Pro
Rata Share for the Operating Expense Year just completed and the estimated
amount for such Operating Expense Year. Each statement shall also set forth the
projected increase, if any, in Operating Expenses for the new Operating Expense
Year and the corresponding increase or decrease in Tenant's monthly Rent for
such new Operating Expense Year above or below the Rent paid by Tenant for the
immediately preceding Operating Expense Year.

            (2) To the extent that Tenant's Pro Rata Share of Operating Expenses
for the period covered by a statement is different from the Estimated Payment
during the Operating Expense Year just completed, Tenant shall pay Landlord the
difference within 30 days following receipt by Tenant of the statement or
receive a credit against the next due Rent, as the case may be. Until Tenant
receives a statement, Tenant's Estimated Payment for the new Operating Expense
Year shall continue to be paid at the prior Estimated Payment, but Tenant shall
commence payment of Rent based on the new Estimated Payment beginning on the
first day of the month following the month in which Tenant receives the
statement. Tenant shall also pay Landlord or deduct from the Rent, as the case
may be, on the date required for the first payment, as adjusted, the difference,
if any, between the Estimated Payment for the new Operating Expense Year set
forth in the statement and the Estimated Payment actually paid during the new
Operating Expense Year. If, during any Operating Expense Year, there is a change
in the information on which Tenant is then making its Estimated Payments so that
the prior estimate is no longer accurate, Landlord may revise the estimate and
there shall be such adjustments made in the monthly Rent on the first day of the
month following notice to Tenant as shall be necessary by either increasing or
decreasing, as the case may be, the amount of monthly Rent then being paid by
Tenant for the balance of the Operating Expense Year.

         6.4 Miscellaneous. In no event will any decrease in Rent pursuant to
any provision hereof result in a reduction of Rent below the Base Rent. Delay by
Landlord in submitting any statement for any Operating Expense Year does not
affect the provisions of this Section or constitute a waiver of Landlord's
rights for such Operating Expense Year or any subsequent Operating Expense
Years.

                                       7
<PAGE>

         6.5 Dispute. If Tenant disputes an adjustment submitted by Landlord or
a proposed increase or decrease in the Estimated Payment, Tenant shall give
Landlord notice of such dispute within 30 days after Tenant's receipt of the
adjustment. If Tenant does not give Landlord timely notice, Tenant waives its
right to dispute the particular adjustment. If Tenant timely objects, Tenant may
engage its own certified public accountants ("Tenant's Accountants") to verify
the accuracy of the statement complained of or the reasonableness of the
estimated increase or decrease. If Tenant's Accountants determine that an error
has been made, Landlord's Accountants and Tenant's Accountants shall endeavor to
agree upon the matter, failing which such matter shall be submitted to an
independent certified public accountant selected by Landlord, with Tenant's
reasonable approval, for a determination which will be conclusive and binding
upon Landlord and Tenant. All costs incurred by Tenant for Tenant's Accountants
shall be paid for by Tenant unless Tenant's Accountants disclose an error,
acknowledged by Landlord's Accountants (or found to have occurred through the
above independent determination), of more than 25% in the computation of the
total amount of Operating Expenses, in which event Landlord shall pay the
reasonable costs incurred by Tenant to obtain such audit. Notwithstanding the
pendency of any dispute, Tenant shall continue to pay Landlord the amount of the
Estimated Payment or adjustment determined by Landlord's Accountants until the
adjustment has been determined to be incorrect. If it is determined that any
portion of the Operating Expenses were not properly chargeable to Tenant, then
Landlord shall promptly credit or refund the appropriate sum to Tenant.

         7. SERVICES.

         7.1 Subject to the provisions below, Landlord agrees, in accordance
with standards determined by Landlord from time to time for the Building: (1) to
furnish running water at those points of supply for general use of tenants of
the Building; (2) to furnish to interior Common Areas heated or cooled air (as
applicable), electrical current, janitorial services, and maintenance; (3) to
furnish heated or cooled air to the Premises for standard office use provided
the recommendations of Landlord's engineer regarding occupancy and use of the
Premises are complied with by Tenant; (4) to provide the general use of
passenger elevators for ingress and egress to and from the Premises (at least
one such elevator shall be available at all times except in the case of
emergencies or repair); (items (1) through (4) are collectively called
"Services"). These services are to be provided twenty-four hours a day, seven
days a week.

         7.2 The Premises shall be separately metered and Tenant shall obtain
all electricity for the Premises directly from the public utility company
furnishing the same. Tenant shall pay all utility deposits, fees and monthly
service charges for electricity services for the Premises. Tenant shall also pay
the cost of replacing light bulbs and/or tubes and ballast used in, all lighting
in the Premises other than that provided by Landlord to all tenants of the
Building.

         7.3 Landlord may temporarily discontinue, reduce, or curtail Services
when necessary due to accident, repairs, alterations, strikes, lockouts,
Applicable Laws, or any other happening beyond Landlord's reasonable control.
Landlord is not liable for damages to Tenant or any other party as a result of
any interruption, reduction, or discontinuance of Services (either temporary or
permanent) nor shall the temporary occurrence of any such event be construed as
an eviction of Tenant, cause or permit an abatement, reduction or setoff of
Rent, or operate to release Tenant from Tenant's obligations.

                                       8
<PAGE>

         7.4 Tenant shall promptly notify Landlord of any accidents or defects
in the Building of which Tenant becomes aware, including defects in pipes,
electric wiring, and HVAC equipment, and of any condition which may cause injury
or damage to the Building or any person or property therein.

         7.5 As Tenant requires its own janitorial services, Tenant shall
separately contract and pay for such services with any company approved by
Landlord, in its reasonable discretion and accordingly, Landlord shall not be
required to provide any janitorial services to the Premises.

         8. QUIET ENJOYMENT. So long as an Event of Default has not occurred,
Tenant is entitled to the quiet enjoyment and peaceful possession of the
Premises subject to the provisions of this Lease.

         9. CHARACTER OF OCCUPANCY. Tenant shall occupy the Premises for the
Permitted Use and for no other purpose, and use it in a careful, safe, and
proper manner and pay on demand for any damage to the Premises caused by misuse
or abuse by Tenant, Tenant's agents or employees, or any other person entering
upon the Premises under express or implied invitation of Tenant (collectively,
"Tenant's Agents"). Tenant, at Tenant's expense, shall comply with all
applicable federal, state, city, quasi-governmental and utility provider laws,
codes, rules, and regulations now or hereafter in effect ("Applicable Laws")
which impose any duty upon Landlord or Tenant with respect to the occupation or
alteration of the Premises. Tenant shall not commit or permit waste or any
nuisance on or in the Premises. Tenant agrees not to store, keep, use, sell,
dispose of or offer for sale in, upon or from the Premises any article or
substance prohibited by any insurance policy covering the Building Complex nor
shall Tenant keep, store, produce or dispose of on, in or from the Premises or
the Building Complex any substance which may be deemed an infectious waste or
hazardous substance under any Applicable Laws, except customary office and
cleaning supplies.

         10. MAINTENANCE, ALTERATIONS AND REENTRY BY LANDLORD.

         10.1 Landlord will (i) make repairs and replacements to HVAC,
mechanical, life safety and electrical systems in the Premises (to the extent
such systems are Building standard) deemed necessary by Landlord for normal
operations of the Building Complex; and (ii) provide upkeep, maintenance, and
repairs to all Common Areas. Except as provided in this Section or otherwise
expressly required in this Lease, Landlord is not required to make improvements
or repairs to the Premises during the Term.

         10.2 Landlord or Landlord's agents may at any time enter the Premises
for examination and inspection, or to perform, if Landlord elects, any
obligations of Tenant which Tenant fails to perform or such cleaning,
maintenance, repairs, replacements, additions, or alterations as Landlord deems
necessary for the safety, improvement, or preservation of the Premises or other
portions of the Building Complex or as required by Applicable Laws. Landlord or
Landlord's agents may also show the Premises to prospective tenants, purchasers
and Mortgagees. Any such reentry does not constitute an eviction or entitle
Tenant to abatement of Rent. Landlord may make such alterations or changes in
other portions of the Building Complex as Landlord desires so long as such
alterations and changes do not unreasonably interfere with Tenant's occupancy of
the Premises. Landlord may use the Common Areas and

                                       9
<PAGE>

one or more entrances to the Building Complex as may be necessary in Landlord's
judgment to complete such work.

         11. ALTERATIONS AND REPAIRS BY TENANT.

         11.1 Tenant shall not make any alterations to the Premises during the
Term, including installation of equipment or machinery which requires
modifications to existing electrical outlets or increases Tenant's usage of
electricity beyond building design standards (collectively "Alterations")
without in each instance first obtaining the written consent of Landlord.
Landlord's consent or approval of the plans, specifications and working drawings
for any Alterations shall not constitute any warranty or representation by
Landlord (and shall not impose any liability on Landlord) as to their
completeness, design sufficiency, or compliance with Applicable Laws. Tenant
shall at its cost: pay all engineering and design costs incurred by Landlord as
to all Alterations, obtain all governmental permits and approvals required, and
cause all Alterations to be completed in compliance with Applicable Laws and
requirements of Landlord's insurance. All such work relating to Alterations
shall be performed in a good and workmanlike manner, using new materials and
equipment at least equal in quality to the Initial Tenant Finish. All
Alterations, repair and maintenance work performed by Tenant shall be done at
Tenant's expense by Landlord's employees or, with Landlord's prior consent and
subject to any conditions imposed by Landlord, by other persons requested by
Tenant; however, if such work is not performed by Landlord's employees, Tenant
shall pay Landlord a supervisory fee upon receipt of an invoice. If Landlord
authorizes such persons to perform work, Tenant shall deliver to Landlord prior
to commencement certificates issued by insurance companies qualified to do
business in the State of Colorado, evidencing that worker's compensation, public
liability insurance, and property damage insurance (in amounts, with companies
and on forms satisfactory to Landlord) are in force and maintained by all
contractors and subcontractors engaged to perform such work. All liability
policies shall name Landlord, Building Manager, and Mortgagee as additional
insureds. Each certificate shall provide that the insurance may not be cancelled
or modified without 10 days' prior written notice to Landlord and Mortgagee.
Landlord also has the right to post notices in the Premises in locations
designated by Landlord stating that Landlord is not responsible for payment for
such work and containing such other information as Landlord deems necessary. All
such work shall be performed in a manner which does not unreasonably interfere
with Landlord or other tenants of the Building, or impose additional expense
upon Landlord in the operation of the Building Complex.

         11.2 Tenant shall keep the Premises in as good order, condition, and
repair and in an orderly state, as on the Commencement Date, loss by fire or
other casualty or ordinary wear excepted.

         11.3 All Alterations, including partitions, paneling, carpeting, drapes
or other window coverings, and light fixtures (but not including movable office
furniture not attached to the Building), are deemed a part of the real estate
and the property of Landlord and remain upon and be surrendered with the
Premises at the end of the Term, whether by lapse of time or otherwise, unless
Landlord notifies Tenant no later than 15 days prior to the end of the Term that
it elects to have Tenant remove all or part of such Alterations, and in such
event, Tenant shall at Tenant's expense promptly remove the Alterations
specified and restore the Premises to its prior condition, reasonable wear and
tear excepted.

                                       10
<PAGE>

         12. MECHANICS' LIENS. Tenant shall pay for all work done on the
Premises by Tenant or at its request (other than the Total Construction Costs)
of a character which may result in liens on Landlord's or Tenant's interest and
Tenant will keep the Premises free of all mechanics' liens, and other liens on
account of such work. Tenant indemnifies, defends, and saves Landlord harmless
from all liability, loss, damage, or expenses, including attorneys' fees, on
account of any claims of laborers, materialmen or others for work performed or
for materials or supplies furnished to Tenant or persons claiming under Tenant.
If any lien is recorded against the Premises or Building or any suit affecting
title thereto is commenced as a result of such work, or supplying of materials,
Tenant shall cause such lien to be removed of record within 5 days after notice
from Landlord. If Tenant desires to contest any claim, Tenant must furnish
Landlord adequate security of at least 150% of the amount of the claim, plus
estimated costs and interest and, if a final judgment establishing the validity
of any lien is entered, Tenant shall immediately pay and satisfy the same. If
Tenant fails to proceed as aforesaid, Landlord may pay such amount and any
costs, and the amount paid, together with reasonable attorneys' fees incurred,
shall be immediately due Landlord upon notice.

         13. SUBLETTING AND ASSIGNMENT.

         13.1 Tenant, as well as any other party that has acquired an interest
in this Lease by virtue of a sublease or assignment, shall not sublet any part
of the Premises nor assign or otherwise transfer this Lease or any interest
herein (sometimes referred to as "Transfer," and the subtenant or assignee may
be referred to as "Transferee") without the consent of Landlord first being
obtained, which consent will not be unreasonably withheld provided that: (1)
Tenant complies with the provisions of Section 14.4; (2) Landlord declines to
exercise its rights under Section 14.3; (3) the Transferee is engaged in a
business and the portion of the Premises will be used in a manner which is in
keeping with the then standards of the Building and does not conflict with any
exclusive use rights granted to any other tenant of the Building Complex; (4)
the Transferee has reasonable financial worth in light of the responsibilities
involved; (5) Tenant is not in default at the time it makes its request; (6) the
Transferee is not a governmental or quasi-governmental agency; (7) the
Transferee is not a tenant or currently negotiating a lease with Landlord in any
Building owned by Landlord in the Loveland - Ft. Collins area (including the
Building Complex); and (8) the rent to be paid by the Transferee is not less
than the Rent paid by Tenant for such space and is not less than 85% of the
rental rate then being offered by Landlord for similar space in the Building.
Transfer includes a sale by Tenant of substantially all of its assets or stock
if Tenant is a publicly traded corporation, a merger of Tenant with another
corporation, the transfer of 25% or more of the stock in a corporate tenant
whose stock is not publicly traded, or transfer of 25% or more of the beneficial
ownership interests in a partnership or limited liability company tenant.
Notwithstanding the foregoing provisions, a Transfer shall not include a sale or
transfer of stock by Tenant pursuant to an I.P.O. or any form of public offering
of Tenant's stock, as long as Tenant's current shareholders retain at least 25%
of the issued and outstanding stock thereof.

         13.2 Following any Transfer in accordance with this Section 13,
Landlord may, after default by Tenant, collect rent from the Transferee or
occupant and apply the net amount collected to the Rent, but no Transfer or
collection will be deemed an acceptance of the Transferee or occupant as Tenant
or release Tenant from its obligations. Consent to a Transfer shall not relieve
Tenant from obtaining Landlord's consent to any other Transfer.

                                       11
<PAGE>

Notwithstanding Landlord's consent to a Transfer, Tenant shall continue to be
primarily liable for its obligations. If Tenant collects any rent or other
amounts from a Transferee in excess of the Rent for any monthly period, Tenant
shall pay Landlord the excess monthly, as and when received.

         13.3 Notwithstanding the above, if Tenant requests Landlord's consent
to sublet 25% or more of the Premises, Landlord may refuse to grant such consent
in its sole discretion and terminate this Lease as to the portion of the
Premises with respect to which such consent was requested; provided, however, if
Landlord does not consent and elects to terminate the Lease as to such portion,
Tenant may within 15 days after notice from Landlord to this effect withdraw
Tenant's request for consent. If such termination occurs, it shall be effective
on the date designated in a notice from Landlord and shall not be more than 30
days following such notice.

         13.4 Tenant must notify Landlord at least 90 days prior to the desired
date of the Transfer ("Tenant's Notice"). Tenant's Notice shall describe the
portion of the Premises to be transferred and the terms and conditions. Landlord
has, without obligation, 60 days following receipt of Tenant's Notice to sublet
the space on Tenant's behalf or to exercise its rights pursuant to Section 13.3
if Tenant's Notice discloses that 25% or more of the Premises is involved. If
the space covered by Tenant's Notice is subleased by Landlord, rent and other
sums due from the subtenant will be paid to Tenant directly and Landlord has no
responsibility for the performance by such subtenant of its obligations under
its sublease with Tenant. If Landlord is unwilling or unable to locate a
subtenant (and, if applicable, declines to exercise its rights under Section
14.3), Landlord will notify Tenant not later than 60 days after receipt of
Tenant's Notice and Tenant shall be free to sublet the specified portion of the
Premises to any third party on terms substantially identical to those described
in Tenant's Notice, subject to Landlord's consent as set forth above. If Tenant
does not sublet such portion of the Premises within 60 days following Landlord's
notice to Tenant, Tenant must reoffer the Premises to Landlord in accordance
with the provisions hereof prior to subleasing to a third party.

         13.5 All documents utilized by Tenant to evidence a Transfer are
subject to approval by Landlord. Tenant shall pay Landlord's expenses, including
reasonable attorneys' fees, of determining whether to consent and in reviewing
and approving the documents. Tenant shall provide Landlord with such information
as Landlord reasonably requests regarding a proposed subtenant, including
financial information.

         13.6 If a trustee or debtor in possession in bankruptcy is entitled to
assume control over Tenant's rights under this Lease and assigns such rights to
any third party notwithstanding the provisions hereof, the rent to be paid by
such party shall be increased to the current Base Rent (if greater than that
being paid for the Premises) which Landlord charges for comparable space in the
Building as of the date of such third party's occupancy. If Landlord is entitled
under the Bankruptcy Code to "Adequate Assurance" of future performance of this
Lease, the parties agree that such term includes the following:

            (1) Any assignee must demonstrate to Landlord's reasonable
satisfaction a net worth and (as defined in accordance with generally accepted
accounting principles consistently applied) at least as large as the net worth
credit of Tenant on the Commencement Date increased by 7%, compounded annually,
for each year thereafter through the date of the proposed

                                       12
<PAGE>

assignment. Tenant's financial condition was a material inducement to Landlord
in executing this Lease.

            (2) The assignee must assume and agree to be bound by the provisions
of this Lease.

         14. DAMAGE TO PROPERTY. Tenant agrees Landlord is not liable for any
injury or damage, either proximate or remote, occurring through or caused by
fire, water, steam, or any repairs, alterations, injury, accident, or any other
cause to the Premises, to any furniture, fixtures, Tenant improvements, or other
personal property of Tenant kept or stored in the Premises, or in other parts of
the Building Complex, whether by reason of the negligence or default of
Landlord, other occupants, any other person, or otherwise; and the keeping or
storing of all property of Tenant in the Premises and Building Complex is at the
sole risk of Tenant.

         15. INDEMNITY TO LANDLORD.

         15.1 Tenant agrees to indemnify, defend, and hold Landlord and Building
Manager harmless from all liability, costs, or expenses, including attorneys'
fees, on account of damage to the person or property of any third party,
including any other tenant in the Building Complex, to the extent caused by the
negligence or breach of this Lease by the Tenant or Tenant's Agents.

         15.2 Tenant shall maintain throughout the Term a commercial general
liability policy, including protection against death, personal injury and
property damage, issued by an insurance company qualified to do business in the
State of Colorado, with a single limit of not less than $1,000,000.00. Such
policy shall name Landlord, Building Manager, and Mortgagee as additional
insureds, be primary to any other similar insurance of such additional insureds,
and provide that it may not be cancelled or modified without at least 20 days'
prior notice to Landlord and Mortgagee. The minimum limits of such insurance do
not limit the liability of Tenant hereunder. Prior to occupancy of the Premises,
and prior to expiration of the then-current policy, Tenant shall deliver
certificates evidencing that insurance required under this Lease is in effect.

         16. SURRENDER AND NOTICE. Upon the expiration or other termination of
this Lease, Tenant shall immediately quit and surrender to Landlord the Premises
broom clean, in good order and condition, ordinary wear and tear and loss by
fire or other casualty excepted, and Tenant shall remove all of its movable
furniture and other effects, all telephone cable and related equipment in the
Building installed for Tenant, and such Alterations, as Landlord requires. If
Tenant fails to timely vacate the Premises as required, Tenant is responsible to
Landlord for all resulting costs and damages of Landlord, including any amounts
paid to third parties who are delayed in occupying the Premises.

         17. INSURANCE, CASUALTY, AND RESTORATION OF PREMISES.

         17.1 Landlord shall maintain property insurance for the Building
Complex, the shell and core of the Building and the Premises in such amounts,
from such companies, and on such terms and conditions, including insurance for
loss of Rent as Landlord deems appropriate, from time to time.

                                       13
<PAGE>

         17.2 Tenant shall maintain throughout the Term insurance coverage at
least as broad as ISO Special Form Coverage against risks of direct physical
loss or damage (commonly known as "all risk") for the full replacement cost of
Tenant's property and betterments in the Premises, including tenant finish in
excess of the Initial Tenant Finish.

         17.3 If the Building is damaged by fire or other casualty which renders
the Premises wholly untenantable or the damage is so extensive that an architect
selected by Landlord certifies in writing to Landlord and Tenant within 60 days
of said casualty that the Premises cannot, with the exercise of reasonable
diligence, be made fit for occupancy within 180 working days from the happening
thereof, then, at the option of Landlord or Tenant exercised in writing to the
other within 30 days of such determination, this Lease shall terminate as of the
occurrence of such damage. In the event of termination, Tenant shall pay Rent
duly apportioned up to the time of such casualty and forthwith surrender the
Premises and all interest. If Tenant fails to do so, Landlord may reenter and
take possession of the Premises and remove Tenant. If, however, the damage is
such that the architect certifies that the Premises can be made tenantable
within such 180-day period or neither Landlord or Tenant elects to terminate the
Lease despite the extent of damage, then the provisions below apply.

         17.4 If the Premises are damaged by fire or other casualty that does
not render it wholly untenantable or require a repair period in excess of 180
days, Landlord shall with reasonable promptness except as hereafter provided
repair the Premises to the extent of the Initial Tenant Finish.

         17.5 If the Building is damaged (though the Premises may not be
affected, or if affected, can be repaired within 180 days) and within 60 days
after the damage Landlord decides not to reconstruct or rebuild the Building,
then, notwithstanding anything contained herein, upon notice to that effect from
Landlord within said 60 days, Tenant shall pay the Rent apportioned to such
date, this Lease shall terminate from the date of such notice, and both parties
discharged from further obligations except as otherwise expressly provided.

         17.6 Landlord and Tenant waive all rights of recovery against the other
and its respective officers, partners, members, agents, representatives, and
employees for loss or damage to its real and personal property kept in the
Building Complex which is capable of being insured against under ISO Special
Form Coverage, or for loss of business revenue or extra expense arising out of
or related to the use and occupancy of the Premises. Tenant also waives all such
rights of recovery against Building Manager. Each party shall, upon obtaining
the property damage insurance required by this Lease, notify the insurance
carrier that the foregoing waiver is contained in this Lease and use reasonable
efforts to obtain an appropriate waiver of subrogation provision in the
policies.

         17.7 Rent shall abate during any period of repair and restoration in
the same proportion that the part of the Premises rendered untenantable bears to
the whole.

         18. CONDEMNATION. If the Premises or substantially all of it or any
portion of the Building Complex which renders the Premises untenantable is taken
by right of eminent domain, or by condemnation (which includes a conveyance in
lieu of a taking), this Lease, at the option of either Landlord or Tenant
exercised by notice to the other within 30 days after the taking, shall

                                       14
<PAGE>

terminate and Rent shall be apportioned as of the date of the taking. Tenant
shall forthwith surrender the Premises and all interest in this Lease, and, if
Tenant fails to do so, Landlord may reenter and take possession of the Premises.
If less than all the Premises is taken, Landlord shall promptly repair the
Premises as nearly as possible to its condition immediately prior to the taking,
unless Landlord elects not to rebuild under Section 17.5. Landlord shall receive
the entire award or consideration for the taking.

         19. DEFAULT BY TENANT.

         19.1 Each of the following events is an "Event of Default":

            (1) Any failure by Tenant to pay Rent on the due date unless such
failure is cured within 10 business days after notice by Landlord; however,
Tenant is not entitled to more than 2 notices of delinquent payments during any
calendar year and, if thereafter during such calendar year any Rent is not paid
when due, an Event of Default shall automatically occur;

            (2) Tenant vacates or abandons the Premises;

            (3) This Lease or Tenant's interest is transferred whether
voluntarily or by operation of law except as permitted in Section 14;

            (4) This Lease or any part of the Premises is taken by process of
law and is not released within 15 days after a levy;

            (5) Commencement by Tenant of a proceeding under any provision of
federal or state law relating to insolvency, bankruptcy, or reorganization
("Bankruptcy Proceeding");

            (6) Commencement of a Bankruptcy Proceeding against Tenant, unless
dismissed within 60 days after commencement;

            (7) The insolvency of Tenant or execution by Tenant of an assignment
for the benefit of creditors; the convening by Tenant of a meeting of its
creditors or any significant class thereof for purposes of effecting a
moratorium upon or extension or composition of its debts; or the failure of
Tenant generally to pay its debts as they mature;

            (8) The admission in writing by Tenant (or any general partner of
Tenant if Tenant is a partnership), that it is unable to pay its debts as they
mature or it is generally not paying its debts as they mature;

            (9) Tenant fails to take possession of the Premises on the
Commencement Date;

            (10) Tenant fails to perform any of its other obligations and
non-performance continues for 30 days after notice by Landlord or, if such
performance cannot be reasonably had within such 30 day period, Tenant does not
in good faith commence performance within such 30 day period and diligently
proceed to completion; provided, however, Tenant's right to cure shall not
exceed the period provided by Applicable Law.

                                       15
<PAGE>

         19.2 Remedies of Landlord. If an Event of Default occurs, Landlord may
then or at any time thereafter, either:

            (1) (a) Without further notice except as required by Applicable
Laws, reenter and repossess the Premises or any part and expel Tenant and those
claiming through or under Tenant and remove the effects of both without being
deemed guilty of any manner of trespass and without prejudice to any remedies
for arrears of Rent or preceding breach of this Lease. Should Landlord reenter
or take possession pursuant to legal proceedings or any notice provided for by
Applicable Law, Landlord may, from time to time, without terminating this Lease,
relet the Premises or any part, either alone or in conjunction with other
portions of the Building Complex, in Landlord's or Tenant's name but for the
account of Tenant, for such periods (which may be greater or less than the
period which would otherwise have constituted the balance of the Term) and on
such conditions and upon such other terms (which may include concessions of free
rent and alteration and repair of the Premises) as Landlord, in its sole
discretion, determines and Landlord may collect the rents therefor. Landlord is
not in any way responsible or liable for failure to relet the Premises, or any
part thereof, or for any failure to collect any rent due upon such reletting;
provided, however that Landlord agrees to use reasonable efforts to relet the
Premises and to collect rent due upon such reletting. No such reentry or
repossession or notice from Landlord shall be construed as an election by
Landlord to terminate this Lease unless specific notice of such intention is
given Tenant. Landlord reserves the right following any reentry and/or reletting
to exercise its right to terminate this Lease by giving Tenant notice, in which
event this Lease will terminate as specified in the notice.

               (b) If Landlord takes possession of the Premises without
terminating this Lease, Tenant shall pay Landlord (i) the Rent which would be
payable if repossession had not occurred, less (ii) the net proceeds, if any, of
any reletting of the Premises after deducting all of Landlord's expenses
incurred in connection with such reletting, including all repossession costs,
brokerage commissions, attorneys' fees, expenses of employees, alteration, and
repair costs (collectively "Reletting Expenses"). If, in connection with any
reletting, the new lease term extends beyond the Term or the premises covered
thereby include other premises not part of the Premises, a fair apportionment of
the rent received from such reletting and the Reletting Expenses, will be made
in determining the net proceeds received from the reletting. In determining such
net proceeds, rent concessions will also be apportioned over the term of the new
lease. Tenant shall pay such amounts to Landlord monthly on the days on which
the Rent would have been payable if possession had not been retaken, and
Landlord is entitled to receive the same from Tenant on each such day; or

            (2) Give Tenant notice of termination of this Lease on the date
specified and, on such date, Tenant's right to possession of the Premises shall
cease and the Lease will terminate except as to Tenant's liability as hereafter
provided as if the expiration of the term fixed in such notice were the end of
the Term. If this Lease terminates pursuant to this Section, Tenant remains
liable to Landlord for damages in an amount equal to the Rent which would have
been owing by Tenant for the balance of the Term had this Lease not terminated,
less the net proceeds, if any, of reletting of the Premises by Landlord
subsequent to termination after deducting Reletting Expenses. Landlord may
collect such damages from Tenant monthly on the days on which the Rent would
have been payable if this Lease had not terminated and Landlord shall be
entitled to receive the same from Tenant on each such day. Alternatively, if
this Lease is

                                       16
<PAGE>

terminated, Landlord at its option may recover forthwith against Tenant as
damages for loss of the bargain and not as a penalty an amount equal to the
worth at the time of termination of the excess, if any, of the Rent reserved in
this Lease for the balance of the Term over the then Reasonable Rental Value of
the Premises for the same period plus all Reletting Expenses. "Reasonable Rental
Value" is the amount of rent Landlord can obtain for the remaining balance of
the Term.

         19.3 Cumulative Remedies. Suits to recover Rent and damages may be
brought by Landlord, from time to time, and nothing herein requires Landlord to
await the date the Term would expire had there been no Event of Default or
termination, as the case may be. Each right and remedy provided for in this
Lease is cumulative and non-exclusive and in addition to every other right or
remedy now or hereafter existing at law or equity, including suits for
injunctive relief and specific performance. The exercise or beginning of the
exercise by Landlord of one or more rights or remedies shall not preclude the
simultaneous or later exercise by Landlord of other rights or remedies. All
costs incurred by Landlord to collect any Rent and damages or to enforce this
Lease are also recoverable from Tenant. If any suit is brought because of an
alleged breach of this Lease, the prevailing party is also entitled to recover
from the other party all reasonable attorneys' fees and costs incurred in
connection therewith.

         19.4 No Waiver. No failure by Landlord to insist upon strict
performance of any provision or to exercise any right or remedy upon a breach
thereof, and no acceptance of full or partial Rent during the continuance of any
breach constitutes a waiver of any such breach or such provision, except by
written instrument executed by Landlord. No waiver shall affect or alter this
Lease but each provision hereof continues in effect with respect to any other
then existing or subsequent breach thereof.

         19.5 Bankruptcy. Nothing contained in this Lease limits Landlord's
right to obtain as liquidated damages in any bankruptcy or similar proceeding
the maximum amount allowed by law at the time such damages are to be proven,
whether such amount is greater, equal to, or less than the amounts recoverable,
either as damages or Rent, referred to in any of the preceding provisions of
this Section. Notwithstanding anything in this Section to the contrary, any
proceeding described in Section 19.1(5), (6), (7) and (8) is an Event of Default
only when such proceeding is brought by or against the then holder of the
leasehold estate under this Lease.

         19.6 Late Payment Charge. Any Rent not paid within 10 days after the
due date shall thereafter bear interest at 5 percentage points above the Prime
Rate or the highest rate permitted by law, whichever is lower, until paid.
Further, if such Rent is not paid within 10 days after notice, Tenant agrees
Landlord will incur additional administrative expenses, the amount of which will
be difficult to determine; Tenant therefore shall also pay Landlord a late
charge for each late payment of 5% of such payment. Any amounts paid by Landlord
to cure a default of Tenant which Landlord has the right but not the obligation
to do, shall, if not repaid by Tenant within 10 days of demand by Landlord,
thereafter bear interest at 5 percentage points above the Prime Rate until paid.
"Prime Rate" means that the base rate on Corporate Loans posted by at least 75%
of the Nation's 30 largest banks (as shown in the Wall Street Journal) on the
date closest to the date interest commences.

                                       17
<PAGE>

         19.7 Waiver of Jury Trial. Tenant and Landlord waive any right to a
trial by jury in suits arising out of or concerning the provisions of this
Lease.

         20. DEFAULT BY LANDLORD. In the event of any alleged default on the
part of Landlord, Tenant shall give notice to Landlord and afford Landlord a
reasonable opportunity to cure such default. Such notice shall be ineffective
unless a copy is simultaneously also delivered in the manner required in this
Lease to any holder of a mortgage and/or deed of trust affecting all or any
portion of the Building Complex (collectively, "Mortgagee"), provided that prior
to such notice Tenant has been notified (by way of notice of Assignment of Rents
and Leases, or otherwise), of the address of a Mortgagee. If Landlord fails to
cure such default within the time provided, then Mortgagee shall have an
additional 30 days following a second notice from Tenant or, if such default
cannot be cured within that time, such additional time as may be necessary
provided within such 30 days, Mortgagee commences and diligently pursues a cure
(including commencement of foreclosure proceedings if necessary to effect such
cure). Tenant's sole remedy will be equitable relief or actual damages but in no
event is Landlord or any Mortgagee responsible for consequential damages or lost
profit incurred by Tenant as a result of any default by Landlord.

         21. SUBORDINATION AND ATTORNMENT.

         21.1 This Lease at Landlord's option will be subordinate to any
mortgage, deed of trust and related documents now or hereafter placed upon the
Building Complex (including all advances made thereunder), and to all
amendments, renewals, replacements, or restatements thereof (collectively,
"Mortgage"). Tenant agrees that no documentation other than this Lease is
required to evidence such subordination; provided, that Landlord shall provide
to Tenant, on or before the Commencement Date, a non-disturbance, subordination
and attornment agreement ("SNDA") from the holder of any Mortgage ("Mortgagee")
now or then encumbering the Building, in such Mortgagee's standard SNDA form.
Landlord shall also request a SNDA from any Mortgagee hereinafter encumbering
the Building, in such future Mortgagee's standard form.

         21.2 If any Mortgagee elects to have this Lease superior to the lien of
its Mortgage and gives notice to Tenant, this Lease will be deemed prior to such
Mortgage whether this Lease is dated prior or subsequent to the date of such
Mortgage or the date of recording thereof.

         21.3 In confirmation of subordination or superior position, as the case
may be, Tenant will execute such documents (including any SNDA) as may be
required by Mortgagee and if it fails to do so within 10 days after demand,
Tenant hereby irrevocably appoints Landlord as Tenant's attorney-in-fact and in
Tenant's name, place, and stead, to do so.

         21.4 Tenant hereby attorns to all successor owners of the Building,
whether such ownership is acquired by sale, foreclosure of a Mortgage, or
otherwise.

         22. REMOVAL OF TENANT'S PROPERTY.

         22.1 All movable personal property of Tenant not removed from the
Premises upon vacation, abandonment, or termination of this Lease shall be
conclusively deemed abandoned and may be sold, or otherwise disposed of by
Landlord without notice to Tenant and without obligation to account; Tenant
shall pay Landlord's expenses in connection with such disposition.

                                       18
<PAGE>

         23. HOLDING OVER: TENANCY MONTH-TO-MONTH. If, after the expiration or
termination of this Lease, Tenant remains in possession of the Premises and
continues to pay rent without a written agreement as to such holding over, even
though Landlord accepts such rent, such possession is a tenancy from
month-to-month, subject to all provisions hereof but at a monthly rent
equivalent to 150% of the monthly Rent paid by Tenant immediately prior to such
expiration or termination. Rent shall continue to be payable in advance on the
first day of each calendar month. Such tenancy may be terminated by either party
upon 10 days' notice prior to the end of any monthly period. Nothing contained
herein obligates Landlord to accept rent tendered after the expiration of the
Term or relieves Tenant of its liability under Section 17.

         24. PAYMENTS AFTER TERMINATION. No payments by Tenant after expiration
or termination of this Lease or after any notice (other than a demand for
payment of money) by Landlord to Tenant reinstates, continues, extends the Term,
or affects any notice given to Tenant prior to such payments. After notice,
commencement of a suit, or final judgment granting Landlord possession of the
Premises, Landlord may collect any amounts due or otherwise exercise Landlord's
remedies without waiving any notice or affecting any suit or judgment.

         25. STATEMENT OF PERFORMANCE. Tenant agrees at any time upon not less
than 10 days' notice to execute and deliver to Landlord a written statement
certifying that this Lease is unmodified and in full force and effect (or, if
there have been modifications, that the same is in full force and effect as
modified stating the modifications); that there have been no defaults by
Landlord or Tenant (or, if there have been defaults, setting forth the nature
thereof); the date to which Rent has been paid in advance and such other
information as Landlord requests. Such statement may be relied upon by a
prospective purchaser of Landlord's interest or Mortgagee. Tenant's failure to
timely deliver such statement is conclusive upon Tenant that: (i) this Lease is
in full force and effect without modification except as may be represented by
Landlord; (ii) there are no uncured defaults in Landlord's performance; and
(iii) not more than 1 month's Rent has been paid in advance. Upon request,
Tenant will furnish Landlord an appropriate resolution confirming that the party
signing the statement is authorized to do so.

         26. MISCELLANEOUS.

         26.1 Transfer by Landlord. The term "Landlord" means so far as
obligations of Landlord are concerned, only the owner of the Building at the
time in question and, if any transfer of the title occurs, Landlord herein named
(and in the case of any subsequent transfers, the then grantor) is automatically
released from and after the date of such transfer of all liability as respects
performance of any obligations of Landlord thereafter to be performed. Any funds
in Landlord's possession at the time of transfer in which Tenant has an interest
will be turned over to the grantee and any amount then due Tenant under this
Lease will be paid to Tenant.

         26.2 No Merger. The termination or mutual cancellation of this Lease
will not work a merger, and such termination or cancellation will at the option
of Landlord either terminate all subleases or operate as an automatic assignment
to Landlord of such subleases.

         26.3 Common Area Use. Landlord may use any of the Common Areas for the
purposes of completing or making repairs or alterations in any portion of the
Building Complex.

                                       19
<PAGE>

         26.4 Independent Covenants. This Lease is to be construed as though the
covenants between Landlord and Tenant are independent and not dependent and
Tenant is not entitled to any setoff of the Rent against Landlord if Landlord
fails to perform its obligations; provided, however, the foregoing does not
impair Tenant's right to commence a separate suit against Landlord for any
default by Landlord so long as Tenant complies with Section 21.

         26.5 Validity of Provisions. If any provision is invalid under present
or future laws, then it is agreed that the remainder of this Lease is not
affected and that in lieu of each provision that is invalid, there will be added
as part of this Lease a provision as similar to such invalid provision as may be
possible and is valid and enforceable.

         26.6 Captions. The caption of each Section is added for convenience
only and has no effect in the construction of any provision of this Lease.

         26.7 Construction. The parties waive any rule of construction that
ambiguities are to be resolved against the drafting party. Any words following
the words "include," "including," "such as," "for example," or similar words or
phrases shall be illustrative only and are not intended to be exclusive, whether
or not language of non-limitation is used.

         26.8 Applicability. Except as otherwise provided, the provisions of
this Lease are applicable to and binding upon Landlord's and Tenant's respective
heirs, successors and assigns. Such provisions are also considered to be
covenants running with the land to the fullest extent permitted by law.

         26.9 Authority. Tenant and the party executing this Lease on behalf of
Tenant represent to Landlord that such party is authorized to do so by requisite
action of Tenant and agree, upon request, to deliver Landlord a resolution.
similar document, or opinion of counsel to that effect.

         26.10 Severability. If there is more than one party which is the
Tenant, the obligations imposed upon Tenant are joint and several.

         26.11 Acceptance of Keys, Rent or Surrender. No act of Landlord or its
representatives during the Term, including any agreement to accept a surrender
of the Premises or amend this Lease, is binding on Landlord unless such act is
by a partner, member or officer of Landlord, as the case may be, or other party
designated in writing by Landlord as authorized to act. The delivery of keys to
Landlord or its representatives will not operate as a termination of this Lease
or a surrender of the Premises. No payment by Tenant of a lesser amount than the
entire Rent owing is other than on account of such Rent nor is any endorsement
or statement on any check or letter accompanying payment an accord and
satisfaction. Landlord may accept payment without prejudice to Landlord's right
to recover the balance or pursue any other remedy available to Landlord.

         26.12 Building Name and Size. Landlord may as it relates to the
Building and Building Complex: increase the size by adding additional real
property, construct other buildings or improvements, change the location and/or
character, or make alterations or additions. If additional buildings are
constructed or the size is increased, Landlord and Tenant shall execute an
amendment which incorporates any necessary modifications to Tenant's Pro Rata
Share.

                                       20
<PAGE>

         26.13 Diminution of View. Tenant agrees that no diminution of light,
air, or view from the Building entitles Tenant to any reduction of Rent under
this Lease, results in any liability of Landlord, or in any way affects Tenant's
obligations.

         26.14 Limitation of Liability. Notwithstanding anything to the contrary
contained in this Lease, Landlord's liability is limited to Landlord's interest
in the Building.

         26.15 Non-Reliance. Tenant confirms it has not relied on any
statements, representations, or warranties by Landlord or its representatives
except as set forth herein.

         26.16 Written Modification. No amendment or modification of this Lease
is valid or binding unless in writing and executed by the parties.

         26.17 Lender's Requirements. Tenant will make such modifications to
this Lease as may hereafter be required to conform to any lender's requirements,
so long as such modifications do not increase Tenant's obligations or materially
alter its rights.

         26.18 Effectiveness. Submission of this instrument for examination or
signature by Tenant does not constitute a reservation of or option to lease and
it is not effective unless and until execution and delivery by both Landlord and
Tenant.

         26.19 Survival. This Lease, notwithstanding expiration or termination,
continues in effect as to any provisions requiring observance or performance
subsequent to termination or expiration.

         26.20 Time of Essence. Time is of the essence herein.

         26.21 Rules and Regulations. If rules and regulations are attached
hereto, they are a part of this Lease and Tenant agrees that Tenant and Tenant's
Agents shall at all times abide by such rules and regulations.

         26.22 Recording. Tenant will not record this Lease. Recording of the
Lease by or on behalf of Tenant is an Event of Default.

         27. AUTHORITIES FOR ACTION AND NOTICE.

         27.1 Unless otherwise provided, Landlord may act through Landlord's
Building Manager or other designated representatives from time to time.

         27.2 All notices or other communications required or desired to be
given to Landlord must be in writing and shall be deemed received when delivered
personally to any officer, partner, or member of Landlord (depending upon the
nature of Landlord) or the manager of the Building (the "Building Manager") or
when deposited in the United States mail, postage prepaid, certified or
registered, return receipt requested, addressed as set forth in Section 1.10.
All notices or communications required or desired to be given to Tenant shall be
in writing and deemed duly served when delivered personally to any officer,
employee, partner, or member of Tenant (depending upon the nature of Tenant),
Tenant whose office is in the Building, when deposited in the United States
mail, postage prepaid, certified or registered, return receipt

                                       21
<PAGE>

requested, addressed to the appropriate address set forth in Section 1.12.
Either party may designate in writing served as above provided a different
address to which notice is to be mailed. The foregoing does not prohibit notice
from being given as provided in Rule 4 of Colorado Rules of Civil Procedure, as
amended from time to time.

         28. PARKING. Of the 120 parking spaces in the Building Complex parking
lot, Landlord will make available to the tenant the number of parking spaces set
forth in Section 1.9. All parking spaces shall be non-assigned parking spaces in
the parking lot of the Building Complex. Tenant may also utilize additional
parking spaces in the parking lot unless and until such additional usage
adversely affects the rights of other tenants to use the parking spaces
allocated to such tenants. Notwithstanding the above, the rights granted to
Tenant to use all such spaces is a license only and excessive use of parking
spaces by other tenants shall not constitute a breach by Landlord of its
obligations hereunder and Tenant has no rights to use the parking lot except as
provided in this Section. All vehicles parked in the parking lot and the
personal property therein shall be at the sole risk of Tenant, Tenant's Agents
and the users of such spaces and Landlord shall have no liability for loss or
damage thereto for whatever cause.

         29. BROKERAGE. Tenant represents it has not employed any broker with
respect to this Lease and has no knowledge of any broker's involvement in this
transaction except those listed in Sections 1.14 and 1.15 (collectively, the
"Brokers"). Tenant shall indemnify Landlord against any expense incurred by
Landlord as a result of any claim for commissions or fees by any other broker,
finder, or agent, whether or not meritorious, employed by Tenant or claiming by,
through, or under Tenant, other than the Brokers. Tenant acknowledges Landlord
is not liable for any representations by the Brokers regarding the Premises,
Building, Building Complex, or this Lease.

         30. COUNTERPARTS. This Lease may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Any one or more
counterpart signature pages may be removed from one counterpart of the Lease and
annexed to another counterpart of the Lease to form a completely executed
original instrument without impairing the legal effect of the signature thereon.

         31. EXHIBITS. See the Work Letter and Exhibits A, B, C, D and E
attached hereto and incorporated herein.

         32. OPTIONS.

         32.1 First Option. Landlord grants Tenant an option (the "First
Option") to extend the term of the Lease for one (1) additional term of five (5)
years (the "First Option Term"). The First Option applies only to the Premises
and is on the following conditions:

            A. Notice of Tenant's interest in exercising the First Option must
be given to Landlord no earlier than fourteen (14) months and no later than
twelve (12) months prior to the Expiration Date.

            B. Tenant's rights pursuant to this paragraph are personal to Tenant
and may not be assigned. Tenant's right to exercise the First Option is
conditioned on: (i) Tenant not being in default at the time of exercise or at
the time of commencement of the First Option Term;

                                       22
<PAGE>

and (ii) Tenant not having subleased or vacated more than 25% of the Premises or
assigned its interest under the Lease as of the commencement of the First Option
Term. Upon an assignment of the Lease, this Section is null and void.

            C. The First Option granted hereunder will be upon the terms of the
Lease, except that the annual Base Rent during each year of the First Option
Term will be an amount equal to 115% of the Base Rent payable in the last year
of the Initial Term, as more specifically referenced in the commencement
agreement executed by Tenant on or about the Commencement Date.

            D. After failure to exercise the First Option, Tenant shall have no
further rights to extend the Term.

         32.2 Second Option. If Tenant exercises the First Option, Landlord
grants Tenant an additional option (the "Second Option") to extend the term of
the Lease for one (1) additional term of five (5) years (the "Second Option
Term"). The Second Option applies only to the Premises and is on the following
conditions:

            A. Notice of Tenant's interest in exercising the Second Option must
be given to Landlord no earlier than fourteen (14) months and no later than
twelve (12) months prior to the last day of the First Option Term.

            B. Tenant's rights pursuant to this paragraph are personal to Tenant
and may not be assigned. Tenant's right to exercise the Second Option is
conditioned on: (i) Tenant not being in default at the time of exercise or at
the time of commencement of the Second Option Term; and (ii) Tenant not having
subleased or vacated more than 25% of the Premises or assigned its interest
under the Lease as of the commencement of the Second Option Term. Upon an
assignment of the Lease, this Section is null and void.

            C. The Second Option granted hereunder will be upon the terms of the
Lease, except that the annual Base Rent during each year of the Second Option
Term will be an amount equal to 115% of the Base Rent payable in the last year
of the First Option Term, as more specifically referenced in the commencement
agreement executed by Tenant on or about the Commencement Date.

            D. After failure to exercise the Second Option, Tenant shall have no
further rights to extend the Term.

         33. PERMIT CONTINGENCY. Tenant acknowledges and agrees that the Lease
and Landlord's obligations hereunder are contingent on Landlord's obtaining all
licenses, permits, approvals and consents necessary or required pursuant to
Applicable Laws to allow Landlord to construct Landlord's Work, as defined in
the attached Work Letter.

         34. EXPANSION. The parties acknowledge that they will continue
discussions on terms similar to those stated in this Lease, regarding expansion
opportunities and needs of the Tenant; provided, however, that any such
understandings shall not be deemed valid or binding unless in writing and
executed by both parties.

                                       23
<PAGE>

         35. GUARANTY. It is understood and agreed concurrently with Tenant's
execution of this Lease, Tenant shall cause the form of Guaranty attached as
EXHIBIT E to be executed by the named Guarantor.

         36. RIGHT OF FIRST REFUSAL. In the event that Landlord should elect to
sell all or any portion of the Premises during the Term, whether separately or
as a part of a larger parcel of which the Premises may be a part, Tenant shall
have the right of first refusal to meet any bona fide offer to purchase (an
"Offer") on the same terms and conditions as such Offer. If the Offer covers
other property in addition to the Premises, then the purchase price for the
Premises or portion thereof shall be separately stated, and Tenant shall have
the right to acquire the Premises or portion thereof without acquiring such
other property. The Offer may, at Landlords option, either be in the form of a
(i) term sheet or letter of intent setting forth the essential terms and
conditions of the proposed purchase and sale transaction ("LOI"), or (ii) fully
negotiated purchase and sale agreement ("Agreement"). Tenant's election to
purchase the Premises or portion thereof shall be exercised by Tenant's delivery
to Landlord of a notice of exercise, together with (a) a purchase and sale
agreement for the Premises or portion thereof on the same terms and conditions
contained in the LOI if the Offer shall be in the form of the LOI, or (b) the
Agreement signed by Tenant if the Offer shall be in the form of the Agreement
and (c) any earnest money deposit required to be deposited pursuant to the terms
and conditions of the LOI or Agreement. Upon Tenant's failure to accept the
Offer by delivery of the items referenced in the previous sentence within ten
(10) days after Tenant's receipt of the Offer from Landlord, then Landlord shall
be free to sell the Premises or portion thereof to such third party in
accordance with the terms and conditions of the Offer. If Tenant does not
exercise its right of first refusal as provided in this paragraph, and Landlord
does not close the transaction on the same business terms and conditions
contained in the Offer within one hundred eighty (180) days after the notice
thereof to Tenant, then such transaction shall not take place and the
requirements of this paragraph shall remain in full force and effect as to any
future Offers. In furtherance of the foregoing but not in limitation thereof, if
the Offer is in the form of the LOI and the purchase and sale agreement entered
(or to be entered into) between Landlord and the prospective purchaser is on
business terms and conditions which are materially different than those set
forth in the LOI, then such purchase and sale agreement shall constitute a new
Offer which shall be subject to the provisions of this paragraph. The covenants
of this paragraph are of a continuing nature and shall not be exhausted by one
or more sales of the Premises. This right of first refusal shall not apply to
the reorganization, merger, stock sales or transfers, membership transfers or
sales of Landlord.

         IN WITNESS WHEREOF, the parties have executed this Lease as of the day
and year first above written and it is effective upon delivery of a
fully-executed copy to Tenant.

                                       24
<PAGE>

LENDERS RESOURCE INCORPORATED,             FDC OFFICE I, LLC, a Colorado limited
a Colorado corporation                     liability company

                                           By:   McWHINNEY MANAGEMENT
By: ___________________________            COMPANY, LLC, a Colorado limited
Print Name: ___________________            liability company
Print Title:      President

                                           By:_____________________________
                                           Chad McWhinney, ________________

By: ___________________________
Print Name: ___________________            "Landlord"
Print Title: __________________

                  "Tenant"

                                       25
<PAGE>

                            FIRST AMENDMENT TO LEASE

         THIS FIRST AMENDMENT TO LEASE ("Amendment") is entered into as of the
___ day of December, 1997, by and between FDC OFFICE I, LLC, a Colorado limited
liability company ("Landlord") and LENDERS RESOURCE INCORPORATED, a Colorado
corporation ("Tenant").

                                 R E C I T A L S

         A. Landlord and Tenant entered into an Office Lease dated August 4,
1997 ("Lease") for space known as Suite ____ in the Building known as
______________________________ Loveland, Colorado 80538 in the Rocky Mountain
Village Business Park ("Premises").

         B. Landlord and Tenant now desire to further amend the terms of the
Lease as set forth below.

         NOW, THEREFORE, for good and valuable consideration, Landlord and
Tenant hereby agree as follows:

         1. Premises. The rentable square footage of the Premises is increased
by the addition of approximately 3931.6 rentable square feet located in Space 4
(the "Additional Space") as depicted on Exhibit A attached hereto and made a
part hereof by reference for the term of the Lease. As of the Additional Space
Commencement Date, as hereinafter defined, any reference to "Premises" in the
Lease includes the Additional Space as part of the Premises. Any references to
Premises shall now refer to approximately 19,810.6 rentable square feet, and
Tenant's occupancy thereof is subject to all terms of the Lease as otherwise
specifically herein provided.

         2. Base Rent. The Minimum Rent for the Additional Space shall be
$50,127.90 ($4,177.33 per month) for the first year following the Additional
Space Commencement Date, as hereinafter defined, which amount shall be added to
be Base Rental amount as provided in Section 1.4, and shall be increased
thereafter as provided in the Section 1.4 of the Lease.

         3. Operating Costs. Commencing on the Additional Space Commencement
Date, Tenant will pay Tenant's Pro Rata Share of Operating Expenses attributable
to the Additional Space (12.7%) in accordance with the Lease, thereby increasing
Tenant's Pro Rata Share for the Premises (including the Additional Space) for
periods commencing on or after the Additional Space Commencement Date to 64%.

         4. Term. Tenant's right to occupy the Additional Space and its
obligation to pay Base Rent and its pro rata share of Operating Expenses
attributable thereto commences on July 1, 1998 (the "Additional Space
Commencement Date") and terminates with the term of the Lease.

         5. Tenant Improvements. Tenant shall be entitled to a Tenant Finish
Allowance in the amount of $20.00 per rentable square foot for the Additional
Space. Such Allowance shall be made available to Tenant on the same terms and
conditions as provided in the Lease.

<PAGE>

         6. Other Terms and Conditions. If there is any conflict between the
terms or provisions of this Amendment and the terms and provisions of the Lease,
the terms and provisions of this Amendment shall govern. All other terms and
conditions of the Lease shall remain in full force and effect and be binding
upon the parties in accordance with their terms.

         IN WITNESS WHEREOF, the parties have hereunto set their hands and seals
the day and year first written above.

TENANT:

LENDERS RESOURCES INCORPORATED,
A COLORADO CORPORATION

By: ___________________________

Title: ________________________

LANDLORD:

FDC OFFICE I, LLC, A COLORADO LIMITED LIABILITY COMPANY

BY:    MCWHINNEY MANAGEMENT COMPANY, LLC, A COLORADO LIMITED
LIABILITY COMPANY, MANAGER

By: ___________________________

Title: ________________________

                                       2
<PAGE>

                            SECOND AMENDMENT TO LEASE

         THIS SECOND AMENDMENT TO LEASE ("Amendment") is entered into as of the
____ day of August, 1998, by and between FDC OFFICE I, LLC, a Colorado limited
liability company ("Landlord") and LENDERS RESOURCE INCORPORATED, a Colorado
corporation ("Tenant").

                                 R E C I T A L S

         A. Landlord and Tenant entered into an Office Lease dated August 14,
1997 ("Original Lease") for space known as Suite 200 in the Building known as
5200 Hahns Peak Drive, Loveland, Colorado 80538 in the Rocky Mountain Village
Business Park ("Premises").

         B. Landlord and Tenant entered into that certain First Amendment to
Lease dated the 26th day of December, 1997 ("First Amendment"). The Original
Lease and First Amendment shall be collectively referred to herein as "Lease".

         C. Landlord and Tenant now desire to further amend the terms of the
Lease as set forth below.

         NOW, THEREFORE, for good and valuable consideration, Landlord and
Tenant hereby agree as follows:

         1. Premises. The rentable square footage of the Premises is increased
by the addition of approximately 3536 rentable square feet located in Suite 120
(the "Additional Space") as depicted on Exhibit A attached hereto and made a
part hereof by reference for the term of the Lease. As of the Additional Space
Commencement Date, as hereinafter defined, any reference to "Premises" in the
Lease includes the Additional Space as part of the Premises. Any references to
Premises shall now refer to approximately 23,346.6 reportable square feet, and
Tenant's occupancy thereof is subject to all terms of the Lease as otherwise
specifically herein provided.

         2. Base Rent. The Minimum Rent for the Additional Space shall be
$45,084.00 ($3757.00 per month) following the Additional Space Commencement
Date, as hereinafter defined, which amount shall be added to be Base Rental
amount as provided in Section 1.4, and shall be increased thereafter as provided
in the Section 1.4 of the Lease.

         3. Operating Costs. Commencing on the Additional Space Commencement
Date, Tenant will pay Tenant's Pro Rata Share of Operating Expenses attributable
to the Additional Space (11.4%) in accordance with the Lease, thereby increasing
Tenant's Pro Rata Share for the Premises (including the Additional Space) for
periods commencing on or after the Additional Space Commencement Date to 75.4%.

         4. Term. Tenant's right to occupy the Additional Space and its
obligation to pay Base Rent and its pro rata share of Operating Expenses
attributable thereto commences on the earlier of October 1, 1998 or when space
is turned over to tenant by landlord (the "Additional Space Commencement Date")
and terminates with the term of the Lease.

<PAGE>

         5. Tenant Improvements. Tenant shall be entitled to a Tenant Finish
Allowance in the amount of $15.56 per rentable square foot for the Additional
Space. Such Allowance shall be made available to Tenant on the same terms and
conditions as provided in the Lease.

         6. Other Terms and Conditions. If there is any conflict between the
terms or provisions of this Amendment and the terms and provisions of the Lease,
the terms and provisions of this Amendment shall govern. All other terms and
conditions of the Lease shall remain in full force and effect and be binding
upon the parties in accordance with their terms.

         IN WITNESS WHEREOF, the parties have hereunto set their hands and seals
the day and year first written above.

TENANT:

LENDERS RESOURCES INCORPORATED,
A COLORADO CORPORATION

By: ___________________________

Title: ________________________

LANDLORD:

FDC OFFICE I, LLC, A COLORADO LIMITED LIABILITY COMPANY

BY:    MCWHINNEY MANAGEMENT COMPANY, LLC, A COLORADO LIMITED
LIABILITY COMPANY, MANAGER

By: ___________________________

Title: ________________________

                                       2
<PAGE>

                               EXHIBIT C TO LEASE

                            COMMENCEMENT CERTIFICATE

                                 October 9, 1998

Lenders Resource Incorporated
5200 Hahns Peak Drive Suite 200
Loveland, Colorado 80538

RE:      Lease dated as of the 14th day of August, 1997; First Amendment to the
         Lease dated as of the 260th day of December, 1997; and the Second
         Amendment to the Lease dated as of the 18th day of August, 1998 (the
         "Lease"), by and between FDC OFFICE I, LLC, a Colorado limited
         liability company, as Landlord, and LENDERS RESOURCE INCORPORATED, a
         Colorado corporation, as Tenant, pertaining to approximately 23,346.6
         (Space #200 - 15879sf, Space #190 -3931.6sf, Space #120 - 3536sf)
         rentable square feet of space located in Suite 200, 190 & 120 (the
         "Premises") of the Building

Dear Tenant:

         With regard to the referenced Lease, Landlord and Tenant acknowledge
the following initially capitalized words not otherwise defined have the same
meaning set forth in the Lease):

         1. In accordance with the Lease and the First and Second Amendments the
Commencement Date for each space is as follows:

                           Space #200       - 12:01 a.m. on April 1, 1998,
                           Space #190       - 12:01 a.m. on July 1, 1998
                           Space #120       - 12:01 a.m. on October 1, 1998

            and the Expiration Date for all three spaces is 12:00 midnight,
            March 31, 2018.

         2. In accordance with the Lease and the First and Second Amendments,
Base Rent is as follows:

<TABLE>
<CAPTION>
         Period                    Annual                 Monthly
         ------                    ------                 -------

<S>   <C>                        <C>                     <C>
Years 1- 5                       $281,790.15             $23,482.52
Years 6 -10                      $324,058.67             $27,004.89
Years 11-15                      $372,667.47             $31,055.62
Years 16-20                      $428,567.59             $35,713.97

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                           Annual                Monthly
                                           ------                -------
<S>                                     <C>                     <C>
First Renewal Period
         Years 21-25                    $492,852.72             $41,071.06

Second Renewal Period
         Years 26-30                    $566,780.63             $47,231.72
</TABLE>

         Please acknowledge the foregoing by having an authorized officer sign
in the space provided below and return to our office. This document may be
executed, in counterparts, each of which shall constitute the original.
Facsimile signatures shall be binding as original signatures.

                                           FDC OFFICE I, LLC, a Colorado limited
                                           liability company

                                           By: McWhinney Management Company,
                                               LLC, Manager

                                           By: _________________________________
                                               Chad McWhinney,
                                               Managing Member

                                               "Landlord"

ACKNOWLEDGED AND AGREED this ____
Day of October 1998:

LENDERS RESOURCE INCORPORATED

By: _____________________________
Print Name: _____________________

Title: __________________________

ATTEST:

By: _____________________________
Print Name: _____________________

Title:___________________________

            "Tenant"

                                       2
<PAGE>

                            THIRD AMENDMENT TO LEASE
                    (FDC Office I, LLC - Factual Data Corp.)

         THIS THIRD AMENDMENT TO LEASE ("Third Amendment") is entered into as of
the ____ day of January, 2002, by and between FDC OFFICE I, LLC, a Colorado
Limited Liability Company ("Landlord"), and FACTUAL DATA CORP., a Colorado
Corporation, as successor by merger to LENDERS RESOURCE INCORPORATED, a Colorado
Corporation ("Tenant").

                                    RECITALS

         1. Landlord and Tenant entered into that certain Office Lease dated as
of August 14, 1997 ("Original Lease"), for space known as Suite 200 in the
Building commonly known as 5200 Hahns Peak Drive, Loveland, Colorado 80538
("Premises").

         2. Landlord and Tenant entered into that certain First Amendment to
Lease dated as of December 26, 1997 ("First Amendment") and Second Amendment to
Lease dated as of August 18, 1998 ("Second Amendment").

         3. The Original Lease, First Amendment and Second-Amendment shall be
hereinafter collectively referred to as the "Amended Lease."

         4. Except as set forth herein, capitalized terms shall have the meaning
ascribed to such terms in the Amended Lease.

         5. Landlord and Tenant desire to further amend the terms of the Amended
Lease as set forth below.

         NOW, THEREFORE, for good and valuable consideration, Landlord and
Tenant hereby agree as follows:

         1. Premises. The rentable square footage of the Premises is hereby
increased by the addition of approximately eight thousand seven hundred
thirty-nine (8,739) rentable square feet located in Suites 130, 160 and 170 of
the Building ("Additional Space") as depicted on Exhibit "A" attached hereto and
made a part hereof by reference for the term of the Amended Lease. As of the
Additional Space Commencement Date (defined below), any reference to "Premises"
in the Amended Lease shall include the Additional Space as part of the
"Premises." Any reference to the "Premises" shall hereafter refer to
approximately thirty-two thousand eighty-five and six/tenths (32,085.6) rentable
square feet, representing one hundred percent (100%) of the rentable square feet
in the Building, and Tenant's occupancy thereof is subject to all of the terms
of the Amended Lease as further amended herein.

         2. Base Rent. The Base Rent for the Additional Space ("Additional Base
Rent") shall commence on the Additional Space Commencement Date. The amount of
the Additional Base Rent during the remainder of the Initial Term of the Amended
Lease and during the First Option Term and Second Option Term, if applicable,
shall be as follows:

<PAGE>

                            Remainder of Initial Term

<TABLE>
<CAPTION>
                                                  Annual Additional                      Monthly Additional
                Period                                Base Rent                              Base Rent
                ------                            -----------------                      ------------------
<S>                                                    <C>                                     <C>

            Additional Space
           Commencement Date -

               03/31/07                                $130,211.16                             $10,850.93
          04/01/07 - 03/31/12                          $149,742.84                             $12,478.57
          04/01/12 - 03/31/17                          $172,204.32                             $14,350.36
          04/01/17 - 03/31/18                          $198,034.92                             $16,502.91
</TABLE>

                                First Option Term

<TABLE>
<CAPTION>
                                                  Annual Additional                      Monthly Additional
                Period                                Base Rent                              Base Rent
                ------                            -----------------                      ------------------
<S>                                                    <C>                                     <C>
          04/01/18 - 03/31/22                          $198,034.92                             $16,502.91
          04/01/22 - 03/31/23                          $227,740.20                             $18,978.35
</TABLE>

                               Second Option Term
<TABLE>
<CAPTION>
                                                  Annual Additional                      Monthly Additional
                Period                                Base Rent                              Base Rent
                ------                            -----------------                      ------------------
<S>                                                    <C>                                     <C>
          04/01/23 - 03/31/27                          $227,740.20                             $18,978.35
          04/01/27 - 03/31/28                          $261,901.20                             $21,825.10
</TABLE>

         The Additional Base Rent as set forth in this Section 2 shall be added
to the Base Rent set forth in Section 1.4 of the Amended Lease and, if
applicable, the Base Rent during the First Option Term and Second Option Term
set forth in Section 33 of the Amended Lease.

         3. Operating Costs. Commencing on the Additional Space Commencement
Date, Tenant will pay Tenant's Pro Rata Share of Operating Expenses attributable
to the Additional Space (i.e., 27.3 percent) in accordance with the Amended
Lease, thereby increasing Tenant's Pro Rata Share for the Premises (including
the Additional Space) for periods commencing on or after the Additional Space
Commencement Date to 100 percent. Tenant acknowledges and agrees that Tenant's
Pro Rata Share of Operating Expenses includes Tenant's Pro Rata Share of
assessments for (i) The City of Loveland, Colorado Special Improvement District
No. 1 with respect to the payment of certain public improvements and (ii) City
of Loveland High Plains Environmental Center Special Improvement District No. 2
with respect to the payment of the maintenance of the High Plains Environmental
Center.

                                       2
<PAGE>

         4. Term. Tenant's right to occupy the Additional Space and its
obligation to pay Additional Base Rent and Tenant's Pro Rata Share of Operating
Expenses attributable thereto shall commence upon the earlier of: (i) April 1,
2002 or (ii) the date upon which a temporary or permanent certificate of
occupancy is issued by the City of Loveland, Colorado, for the Additional Space
permitting the lawful occupancy and use of the Additional Space by Tenant for
the Permitted Use ("Additional Space Commencement Date") and shall terminate
upon expiration of the term of the Amended Lease.

         5. Tenant Improvements. Tenant shall be entitled to a Tenant
Improvement Allowance in the amount of Ten Dollars ($10.00) per rentable square
foot for the Additional Space for a total Tenant Improvement Allowance of
Eighty-Seven Thousand Three Hundred Ninety Dollars ($87,390.00). Such Tenant
Improvement Allowance shall be made available to Tenant on the same terms and
conditions as provided in the Amended Lease, except that there shall be deducted
from the Tenant Improvement Allowance, an amount equal to five percent (5%) of
the total cost of the Tenant Finish completed within the Additional Space, which
sum of money shall be paid to McWhinney Real Estate Services, Inc., a Colorado
Corporation, for supervision and management of the Tenant Finish.

         6. Additional Rent for Tenant Finish. For the purpose of reimbursing
Landlord for the Tenant Improvement Allowance, and in addition to the payment of
increased Base Rent pursuant to Section 2 above, Tenant shall pay to Landlord at
the same time and in the same manner as Rent is paid, the additional sum of One
Thousand Two Hundred Forty-One Dollars and Thirty-Eight Cents ($1,241.38) per
month commencing on the Additional Space Commencement Date and continuing each
month thereafter until the tenth (10th) anniversary of the Additional Space
Commencement Date ("Tenant Finish Reimbursement"). The Tenant Finish
Reimbursement shall not be subject to increase during the ten (10) year term
thereof but shall otherwise be subject to all other terms and provisions of the
Amended Lease, including the Landlord's remedies in the event of a default in
the payment thereof by Tenant.

         7. Other Terms and Conditions. If there is any conflict between the
terms and provisions of this Third Amendment and the terms and provisions of the
Amended Lease, the terms and provisions of this Third Amendment shall govern.
All other terms and provisions of the Amended Lease shall remain in full force
and effect and be binding upon the parties in accordance with their terms.

                                       3
<PAGE>

         IN WITNESS WHEREOF, the parties have hereunto set their hands and seals
the day and year first above written.

                                    FDC OFFICE I, LLC, a Colorado Limited
                                      Liability Company

                                    By:  McWhinney Real Estate Services, Inc.,
                                         a Colorado Corporation, Manager

                                         By: ___________________________________
                                             Chad C. McWhinney
                                             President

                                                      "Landlord"

                                    FACTUAL DATA CORP., a Colorado Corporation,
                                    as successor by merger to LENDER'S RESOURCE
                                    INCORPORATED, a Colorado Corporation

                                    By: ________________________________________
                                        Name/Title

                                                       "Tenant"

                                       4

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