Document:

AMENDMENT NO. 1
                         TO MASTER REPURCHASE AGREEMENT

                  Amendment No. 1, dated as of June 17, 2005 (this "Amendment"),
among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the "Buyer"), MORTGAGEIT,
INC. ("MortgageIT") and MORTGAGEIT HOLDINGS, INC. ("Holdings" and together with
MortgageIT the "Sellers").

                                    RECITALS
                                    --------

                  The Buyer and the Sellers are parties to that certain Master
Repurchase Agreement, dated as of March 11, 2005 (the "Existing Master
Repurchase Agreement"; as amended by this Amendment, the "Master Repurchase
Agreement"). Capitalized terms used but not otherwise defined herein shall have
the meanings given to them in the Existing Master Repurchase Agreement.

                  The Buyer and the Sellers have agreed, subject to the terms
and conditions of this Amendment, that the Existing Master Repurchase Agreement
be amended to reflect certain agreed upon revisions to the terms of the Existing
Repurchase Agreement;

                  Accordingly, the Buyer and the Sellers hereby agree, in
consideration of the mutual promises and mutual obligations set forth herein,
that the Existing Master Repurchase Agreement is hereby amended as follows:

                  SECTION 1. Definitions. Section 1 of the Existing Repurchase
Agreement is hereby amended by:

                  1.1   Deleting the following definitions in their entirety and
replacing them with the following:

                  "Adjusted Tangible Net Worth" means, for any Person, Net Worth
of such Person plus Subordinated Debt, minus all intangible assets, including
capitalized servicing rights, goodwill, patents, tradenames, trademarks,
copyrights, franchises, any organizational expenses, deferred expenses, prepaid
expenses, prepaid assets, receivables from shareholders, Affiliates or
employees, and any other asset as shown as an intangible asset on the balance
sheet of such Person on a consolidated basis as determined at a particular date
in accordance with GAAP.

                   "Indebtedness" means, with respect to any Person, (a)
obligations created, issued or incurred by such Person for borrowed money
(whether by loan, the issuance and sale of debt securities or the sale of
Property to another Person subject to an understanding or agreement, contingent
or otherwise, to repurchase such Property from such Person); (b) obligations of
such Person to pay the deferred purchase or acquisition price of Property or
services, other than trade accounts payable (other than for borrowed money)
arising, and accrued expenses incurred, in the ordinary course of business, so
long as such trade accounts payable are payable within 90 days of the date the
respective goods are delivered or the respective services are rendered; (c)
Indebtedness of others secured by a Lien on the Property of such Person, whether
or not the respective Indebtedness so secured has been assumed by such Person;
(d) obligations (contingent or otherwise) of such Person in respect of letters
of credit or similar instruments issued or

accepted by banks and other financial institutions for the account of such
Person; (e) Capital Lease Obligations of such Person; (f) obligations of such
Person under repurchase agreements, sale/buy-back agreements or like
arrangements; (g) Indebtedness of others Guaranteed by such Person; (h) all
obligations of such Person incurred in connection with the acquisition or
carrying of fixed assets by such Person; and (i) Indebtedness of general
partnerships of which such Person is a general partner; provided, that
Indebtedness shall not include Subordinated Debt.

                   "Program Agreements" means, collectively, the Servicing
Agreement, if any, the Servicer Notice, if any, the Custodial Agreement, this
Agreement, the Disbursement Agreement, the Electronic Tracking Agreement, if
entered into and, with respect to each Exception Mortgage Loan, a Purchase
Confirmation.

                  1.2 Adding the following definitions in their proper
alphabetical order:

                  "Adjusted Indebtedness" means, for any Person, Indebtedness
less only those obligations created, issued or incurred by such Person for
borrowed money by the issuance and sale of debt securities that are sponsored,
created, issued or incurred by such Person or its Affiliates in connection with
securitizations."

                  "Disbursement Account" means the account established by the
Disbursement Agent subject to the Disbursement Agreement, into which the
Purchase Price for the Purchased Mortgage Loans that are Wet-Ink Mortgage Loans
shall be deposited.

                  "Disbursement Agent" means Deutsche Bank National Trust
Company, its successor or assigns.

                  "Disbursement Agreement" means that certain Disbursement
Agreement by and among the Disbursement Agent, the Sellers and the Buyer, dated
as of June 17, 2005 as the same may be amended from time to time, setting forth
the terms pursuant to which the Disbursement Agent shall disburse funds related
to Wet-Ink Mortgage Loans from the Disbursement Account.

                  SECTION 2. Program; Initiation of Transactions. Subsection (f)
of Section 3 is hereby amended by adding the following sentence at the end
thereof:

                  "The Sellers shall disburse to the Disbursement Agent the
funds related to the Wet-Ink Mortgage in accordance with the terms of the
Disbursement Agreement."

                  SECTION 3. Covenants. Section 14 is hereby amended by:

                  3.1 deleting subsection (b) in its entirety and replacing it
with the following:

                  "b. Indebtedness to Adjusted Tangible Net Worth Ratio. The
Sellers, on a consolidated basis, shall maintain the ratio of Adjusted
Indebtedness to Adjusted Tangible Net Worth of no greater than 15:1 and the
ratio of Indebtedness to Adjusted Tangible Net Worth no greater than 25:1."

                  3.2 adding the following subsections (ee) and (ff) thereto
with the following:

                  "ee. Restricted Payments on Subordinated Debt. If a Default or
Event of Default has occurred, neither Seller shall make any payments of
principal and/or interest on account of any Subordinated Debt (including without
limitation Subordinated Debt related to (i) that certain Junior Subordinated
Indenture, dated as of May 26, 2005 among the Sellers and Wilmington Trust
Company, as amended from time to time and (ii) that certain Junior Subordinated
Indenture, dated as of April 13, 2005 among MortgageIT and JPMorgan Chase Bank,
National Association, as amended from time to time), or any other similar debt
subsequently issued without the prior written consent of the Buyer."

                  "ff. Notice of Failure to Make Principal and/or Interest
Payments. Each Seller shall give the Buyer written notice within 2 Business Days
upon its failure to make any payments of principal and/or interest in connection
with any Subordinated Debt."

                  SECTION 4. Section 15 is hereby amended by deleting subsection
(f) in its entirety and replacing it with the following:

                  "(f) Breach of Financial Representation or Covenant or
Obligation. A breach by any Seller of any of the representations, warranties or
covenants or obligations set forth in Sections 13(a)(1), 13(a)(7), 13(a)(12),
13(a)(19), 13(a)(24), 14a, 14b, 14d, 14e, 14s, 14w, 14x, 14bb, 14cc, 14dd, 14ee
or 14ff of this Agreement."

                  SECTION 5. Exhibits. Exhibit D to the Existing Repurchase
Agreement is hereby amended by deleting it in its entirety and replacing in with
Exhibit A hereto.

                  SECTION 6. Conditions Precedent. This Amendment shall become
effective on June 17, 2005 (the "Amendment Effective Date"), subject to the
satisfaction of the following conditions precedent:

                  6.1   Delivered Documents. On the Amendment Effective Date,
the Buyer shall have received the following documents, each of which shall be
satisfactory to the Buyer in form and substance:

                  (1) this Amendment, executed and delivered by duly authorized
     officers of the Buyer, MortgageIT and Holdings; and

                  (2) such other documents as the Buyer or counsel to the Buyer
     may reasonably request.

                  6.2   Payment of Attorneys' Fees. On the Amendment Effective
Date, the Sellers shall have paid attorneys' fees to Buyer or its counsel either
by payment or by authorized debit in connection with this Amendment in an amount
equal to $3,000.

                  SECTION 7. Limited Effect. Except as expressly amended and
modified by this Amendment, the Existing Master Repurchase Agreement shall
continue to be, and shall remain, in full force and effect in accordance with
its terms.

                  SECTION 8. Counterparts. This Amendment may be executed by
each of the parties hereto on any number of separate counterparts, each of which
shall be an original and all of which taken together shall constitute one and
the same instrument.

                  SECTION 9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

                            [SIGNATURE PAGE FOLLOWS]

                  IN WITNESS WHEREOF, the parties have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of the
day and year first above written.

Buyer:                        CREDIT SUISSE FIRST BOSTON
                              MORTGAGE CAPITAL LLC,
                              AS BUYER

                              By: /s/ Bruce S. Kaiserman
                                  ------------------------------------
                                   Name: Bruce S. Kaiserman
                                   Title: Vice President

MortgageIT:                   MORTGAGEIT, INC.,
                              AS SELLER

                              By: /s/ Glenn J. Mouridy
                                  ----------------
                                  Name: Glenn J. Mouridy
                                  Title: Executive Vice President

Holdings:                     MORTGAGEIT HOLDINGS, INC.,
                              AS SELLER

                              By: /s/ Glenn J. Mouridy
                                  ----------------
                                  Name: Glenn J. Mouridy
                                  Title: President and Chief Financial Officer

                          Exhibit A to Amendment No. 1

                                                                       EXHIBIT D

                        OFFICER'S COMPLIANCE CERTIFICATE
                        --------------------------------

I, _________________, do hereby certify that I am the duly elected, qualified
and authorized officer of MortgageIT, Inc. ("MortgageIT"). This Certificate is
delivered to you in connection with Section 17b of the Master Repurchase
Agreement dated as of March 11, 2005, among MortgageIT, Inc., MortgageIT
Holdings, Inc. and Credit Suisse First Boston Mortgage Capital LLC (as amended
from time to time, the "Agreement"), as the same may have been amended from time
to time. Capitalized terms used but not otherwise defined herein shall have the
meanings given to them in the Agreement. I hereby certify that, as of the date
of the financial statements attached hereto and as of the date hereof,
MortgageIT is and has been in compliance with all the terms of the Agreement
and, without limiting the generality of the foregoing, I certify that:

               Adjusted Tangible Net Worth. The Sellers, on a consolidated
               basis, have maintained an Adjusted Tangible Net Worth of at least
               $170,000,000. A detailed summary of the calculation of Seller's
               actual Adjusted Tangible Net Worth is provided in Schedule 1
               hereto.

               Indebtedness to Adjusted Tangible Net Worth Ratio. The Sellers,
               on a consolidated basis, have maintained the ratio of Adjusted
               Indebtedness to Adjusted Tangible Net Worth of no greater than
               15:1 and the ratio of Indebtedness to Adjusted Tangible Net Worth
               no greater than 25:1. A calculation of Sellers' actual
               Indebtedness to Adjust Tangible Net Worth is provided in Schedule
               1 hereto.

               Maintenance of Profitability. Sellers have not permitted, for any
               Test Period, Net Income for such Test Period, before income taxes
               for such Test Period and distributions made during such Test
               Period, to be less than $1.00.

               Insurance. Sellers or their Affiliates, have maintained, for
               Sellers and their Subsidiaries, insurance coverage with respect
               to employee dishonesty, forgery or alteration, theft,
               disappearance and destruction, robbery and safe burglary,
               property (other than money and securities) and computer fraud or
               an aggregate amount of at least $_____________. The actual amount
               of such coverage is $_____________.

               Financial Statements. The financial statements attached hereto
               are accurate and complete, accurately reflect the financial
               condition of Sellers, and do not omit any material fact as of the
               date(s) thereof.

               Documentation. Sellers have performed the documentation
               procedures required by its operational guidelines with respect to
               endorsements and assignments,

                                      D-1

               including the recordation of assignments, or has verified that
               such documentation procedures have been performed by a prior
               holder of such Mortgage Loan.

               Compliance. Each Seller has observed or performed in all material
               respects all of its covenants and other agreements, and satisfied
               every condition, contained in the Agreement and the other Program
               Agreements to be observed, performed and satisfied by it. [If a
               covenant or other agreement or condition has not been complied
               with, the applicable Seller shall describe such lack of
               compliance and provide the date of any related waiver thereof.]

               Regulatory Action. Neither Seller is currently under
               investigation or, to best of any Seller's knowledge, no
               investigation by any federal, state or local government agency is
               threatened. Neither Seller has been the subject of any government
               investigation which has resulted in the voluntary or involuntary
               suspension of a license, a cease and desist order, or such other
               action as could adversely impact Sellers' business. [If so, the
               applicable Seller shall describe the situation in reasonable
               detail and describe the action that Seller has taken or proposes
               to take in connection therewith.]

               No Default. No Default or Event of Default has occurred or is
               continuing. [If any Default or Event of Default has occurred and
               is continuing, applicable Seller shall describe the same in
               reasonable detail and describe the action such Seller has taken
               or proposes to take with respect thereto, and if such Default or
               Event of Default has been expressly waived by Buyer in writing,
               such Seller shall describe the Default or Event of Default and
               provide the date of the related waiver.]

               Indebtedness. All Indebtedness (other than Indebtedness evidenced
               by the Repurchase Agreement) of Sellers existing on the date
               hereof is listed on Schedule 2 hereto.

               Purchased Mortgage Loans. Attached hereto as Schedule 3 is a true
               and correct list of all Mortgage Loans purchased by Buyer and
               held by Custodian pending repurchase.

               Originations. Attached hereto as Schedule 4 is a true and correct
               summary of all Mortgage Loans originated by Sellers during the
               calendar quarter ending on [DATE].

               Heding. Attached hereto as Schedule 5 is a true and correct
               summary of all Interest Rate Protection Agreements entered into
               or maintained by Sellers during the calendar quarter ending on
               [DATE].

               REIT Qualification Tests. Holdings is, and has been since
               _____________, a real estate investment trust (a "REIT") for U.S.
               federal income tax purposes. Attached hereto as Schedule 5 is a
               true and correct summary of the calculations for REIT
               qualification of Holdings.

               REIT Asset and Income Tests.

                                      D-2

        1.  AT THE CLOSE OF EACH TAXABLE YEAR, AT LEAST 75 PERCENT OF HOLDINGS'
            GROSS INCOME CONSISTS OF (I) "RENTS FROM REAL PROPERTY" WITHIN THE
            MEANING OF SECTION 856(C)(3)(A) OF THE CODE, (II) INTEREST ON
            OBLIGATIONS SECURED BY MORTGAGES ON REAL PROPERTY OR ON INTERESTS IN
            REAL PROPERTY, WITHIN THE MEANING OF SECTION 856(C)(3)(B) OF THE
            CODE, (III) GAIN FROM THE SALE OR OTHER DISPOSITION OF REAL PROPERTY
            (INCLUDING INTERESTS IN REAL PROPERTY AND INTERESTS IN MORTGAGES ON
            REAL PROPERTY) WHICH IS NOT PROPERTY DESCRIBED IN SECTION 1221(A)(1)
            OF THE CODE, WITHIN THE MEANING OF SECTION 856(C)(3)(C) OF THE CODE,
            (IV) DIVIDENDS OR OTHER DISTRIBUTIONS ON, AND GAIN (OTHER THAN GAIN
            FROM "PROHIBITED TRANSACTIONS" WITHIN THE MEANING OF SECTION
            857(B)(6)(B)(III) OF THE CODE) FROM THE SALE OR OTHER DISPOSITION
            OF, TRANSFERABLE SHARES (OR TRANSFERABLE CERTIFICATES OF BENEFICIAL
            INTEREST) IN OTHER QUALIFYING REITS WITHIN THE MEANING OF SECTION
            856(D)(3)(D) OF THE CODE, AND (V) AMOUNTS DESCRIBED IN SECTIONS
            856(C)(3)(E) THROUGH 856(C)(3)(I) OF THE CODE.

        2.  AT THE CLOSE OF EACH TAXABLE YEAR, AT LEAST 95 PERCENT OF HOLDINGS'
            GROSS INCOME CONSISTS OF (I) THE ITEMS OF INCOME DESCRIBED IN
            PARAGRAPH 1 HEREOF (OTHER THAN THOSE DESCRIBED IN SECTION
            856(C)(3)(I) OF THE CODE), (II) GAIN REALIZED FROM THE SALE OR OTHER
            DISPOSITION OF STOCK OR SECURITIES WHICH ARE NOT PROPERTY DESCRIBED
            IN SECTION 1221(A)(1) OF THE CODE, (III) INTEREST, (IV) DIVIDENDS,
            AND (V) INCOME DERIVED FROM PAYMENTS TO HOLDINGS ON INTEREST RATE
            SWAP OR CAP AGREEMENTS, OPTIONS, FUTURES CONTRACTS, FORWARD RATE
            AGREEMENTS AND OTHER SIMILAR FINANCIAL INSTRUMENTS ENTERED INTO TO
            REDUCE THE INTEREST RATE RISKS WITH RESPECT TO ANY INDEBTEDNESS
            INCURRED OR TO BE INCURRED TO ACQUIRE OR CARRY REAL ESTATE ASSETS,
            OR GAIN FROM THE SALE OR OTHER DISPOSITION OF SUCH AN INVESTMENT AS
            DESCRIBED IN SECTION 856(C)(5)(G), IN EACH CASE WITHIN THE MEANING
            OF SECTION 856(C)(2) OF THE CODE.

        3.  AT THE CLOSE OF EACH QUARTER OF HOLDINGS' TAXABLE YEARS, AT LEAST 75
            PERCENT OF THE VALUE OF HOLDINGS' TOTAL ASSETS (AS DETERMINED IN
            ACCORDANCE WITH TREASURY REGULATIONS SECTION 1.856-2(D)) HAS
            CONSISTED OF AND WILL CONSIST OF REAL ESTATE ASSETS WITHIN THE
            MEANING OF SECTIONS 856(C)(4) AND 856(C)(5)(B) OF THE CODE, CASH AND
            CASH ITEMS (INCLUDING RECEIVABLES WHICH ARISE IN THE ORDINARY COURSE
            OF HOLDINGS' OPERATIONS, BUT NOT INCLUDING RECEIVABLES PURCHASED
            FROM ANOTHER PERSON), AND GOVERNMENT SECURITIES; UNLESS (A) THE TEST
            DESCRIBED IN THIS PARAGRAPH (3) HAS BEEN SATISFIED AS OF THE END OF
            THE IMMEDIATELY PRECEDING QUARTER OF HOLDINGS' TAXABLE YEAR, (B)
            SUCH TEST IS NOT SATISFIED AS THE RESULT OF THE ACQUISITION OF A
            SECURITY OR PROPERTY DURING THE CURRENT QUARTER OF HOLDINGS' TAXABLE
            YEAR, (C) HOLDINGS DELIVERS WITHIN 10 DAYS OF THE END OF THE CURRENT
            QUARTER OF HOLDINGS' TAXABLE YEAR TO BUYER NOTICE THAT SUCH TEST IS
            NOT SATISFIED, (D) SUCH TEST IS SATISFIED WITHIN THE 30 DAY PERIOD
            AS PROVIDED UNDER SECTION 856(C)(4), AND (E) AN OFFICER OF HOLDINGS
            CERTIFIES AS TO SUCH SATISFACTION WITHIN SUCH 30 DAY PERIOD, AND
            PROVIDES DOCUMENTATION, REASONABLY SATISFACTORY TO BUYER EVIDENCING
            SUCH SATISFACTION.

                                      D-3

        4.  AT THE CLOSE OF EACH QUARTER OF EACH OF HOLDINGS' TAXABLE YEARS, (A)
            NOT MORE THAN 25 PERCENT OF HOLDINGS' TOTAL ASSET VALUE WILL BE
            REPRESENTED BY SECURITIES (OTHER THAN THOSE DESCRIBED IN PARAGRAPH
            3), (B) NOT MORE THAN 20 PERCENT OF HOLDINGS' TOTAL ASSET VALUE WILL
            BE REPRESENTED BY SECURITIES OF ONE OR MORE TAXABLE REIT
            SUBSIDIARIES, AND (C) (I) NOT MORE THAN 5 PERCENT OF THE VALUE OF
            HOLDINGS' TOTAL ASSETS WILL BE REPRESENTED BY SECURITIES OF ANY ONE
            ISSUER (OTHER THAN GOVERNMENT SECURITIES AND SECURITIES OF TAXABLE
            REIT SUBSIDIARIES), AND (II) HOLDINGS WILL NOT HOLD SECURITIES
            POSSESSING MORE THAN 10 PERCENT OF THE TOTAL VOTING POWER OR VALUE
            OF THE OUTSTANDING SECURITIES OF ANY ONE ISSUER (OTHER THAN
            GOVERNMENT SECURITIES, SECURITIES OF TAXABLE REIT SUBSIDIARIES, AND
            SECURITIES OF A QUALIFIED REIT SUBSIDIARY WITHIN THE MEANING OF
            SECTION 856(I) OF THE CODE); UNLESS (D) THE TESTS DESCRIBED IN THIS
            PARAGRAPH (4) HAVE BEEN SATISFIED AS OF THE END OF THE IMMEDIATELY
            PRECEDING QUARTER OF HOLDINGS' TAXABLE YEAR, (E) ANY OF THE TESTS
            DESCRIBED IN THIS PARAGRAPH (4) ARE NOT SATISFIED AS THE RESULT OF
            THE ACQUISITION OF A SECURITY OR PROPERTY DURING THE CURRENT QUARTER
            OF HOLDINGS' TAXABLE YEAR, (F) HOLDINGS DELIVERS WITHIN 10 DAYS OF
            THE END OF THE CURRENT QUARTER OF HOLDINGS' TAXABLE YEAR TO BUYER
            NOTICE THAT SUCH TEST IS NOT SATISFIED, (G) SUCH TEST IS SATISFIED
            WITHIN THE 30 DAY PERIOD AS PROVIDED UNDER SECTION 856(C)(4), AND
            (H) AN OFFICER OF HOLDINGS CERTIFIES AS TO SUCH SATISFACTION WITHIN
            SUCH 30 DAY PERIOD, AND PROVIDES DOCUMENTATION, REASONABLY
            SATISFACTORY TO BUYER EVIDENCING SUCH SATISFACTION.

                                      D-4

IN WITNESS WHEREOF, I have set my hand this _____ day of ________, ________.

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

                                      D-5

<TABLE>

                 SCHEDULE 1 TO OFFICER'S COMPLIANCE CERTIFICATE
                 ----------------------------------------------
                       CALCULATIONS OF FINANCIAL COVENANTS
                         AS OF THE QUARTER ENDED [DATE]

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

I.    ADJUSTED TANGIBLE NET WORTH
------------------------------------------------------------------------------------------------------

1.    Net Worth (book)                                                                 $
------------------------------------------------------------------------------------------------------
      Plus:
------------------------------------------------------------------------------------------------------
2.    Subordinated Debt (maturity > CSFB line maturity)                                $
------------------------------------------------------------------------------------------------------

I.(A) TOTAL OF ITEMS 1-2                                                               $
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
      Less:
------------------------------------------------------------------------------------------------------
3.    Capitalized servicing balance                                                    $
------------------------------------------------------------------------------------------------------
4.    Goodwill                                                                         $
------------------------------------------------------------------------------------------------------
5.    Receivables or advances due from shareholders, affiliates, employees             $
      or related parties
------------------------------------------------------------------------------------------------------
6.    Trademarks                                                                       $
------------------------------------------------------------------------------------------------------
7.    Capitalized organizational expenses                                              $
------------------------------------------------------------------------------------------------------
8.    Copyrights                                                                       $
------------------------------------------------------------------------------------------------------
9.    Tradenames                                                                       $
------------------------------------------------------------------------------------------------------
10.   Restricted Cash                                                                  $
------------------------------------------------------------------------------------------------------
11.   Deferred Charges                                                                 $
------------------------------------------------------------------------------------------------------
12.   Prepaid assets                                                                   $
------------------------------------------------------------------------------------------------------
13.   Investments in related entities, partnerships                                    $
------------------------------------------------------------------------------------------------------
14.   Any other intangible assets                                                      $
------------------------------------------------------------------------------------------------------
                                                                                       $
I.(B) TOTAL OF ITEMS 3-14
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
I.(C) ACTUAL ADJUSTED TANGIBLE NET WORTH (A MINUS B)                                   $
------------------------------------------------------------------------------------------------------
      Adjusted Tangible Net Worth Covenant                                             $
------------------------------------------------------------------------------------------------------
      COMPLIANCE?                                                                      YES / NO
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
II.   LEVERAGE RATIO
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
      TOTAL DEBT DIVIDED BY ADJUSTED TANGIBLE NET WORTH - ACTUAL                       XX.X
------------------------------------------------------------------------------------------------------
      Leverage Covenant                                                                xx.x
------------------------------------------------------------------------------------------------------
      COMPLIANCE?                                                                      YES / NO
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-6

                 SCHEDULE 2 TO OFFICER'S COMPLIANCE CERTIFICATE
                 ----------------------------------------------

                  INDEBTEDNESS as of _________________________
<TABLE>

------------------------------------------------------------------------------------------------------
                                TOTAL              OUTSTANDING
      LENDER                  COMMITMENT           INDEBTEDNESS           EXPIRATION DATE
------------------------------------------------------------------------------------------------------

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

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

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

------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-7

                 SCHEDULE 3 TO OFFICER'S COMPLIANCE CERTIFICATE
                 ----------------------------------------------

                            PURCHASED MORTGAGE LOANS

                                      D-8

                 SCHEDULE 4 TO OFFICER'S COMPLIANCE CERTIFICATE

                       OVERALL MORTGAGE LOAN ORIGINATIONS

<TABLE>

------------------------------------------------------------------------------------------------------
                                        TOTAL NUMBER OF              AGGREGATE PRINCIPAL
                                         MORTGAGE LOANS              BALANCE OF MORTGAGE
     MORTGAGE LOAN TYPE                    ORIGINATED                 LOANS ORIGINATED
------------------------------------------------------------------------------------------------------

   Alt-A Mortgage Loans
------------------------------------------------------------------------------------------------------
 Conforming Mortgage Loans
------------------------------------------------------------------------------------------------------
         HELOCs
------------------------------------------------------------------------------------------------------
   Jumbo Mortgage Loans
------------------------------------------------------------------------------------------------------
 Second Lien Mortgage Loans
------------------------------------------------------------------------------------------------------
  Sub-Prime Mortgage Loans
------------------------------------------------------------------------------------------------------
</TABLE>

                                       D-9

                 SCHEDULE 5 TO OFFICER'S COMPLIANCE CERTIFICATE
                 ----------------------------------------------

                       Interest Rate Protection Agreements

                                      D-1

                 SCHEDULE 6 TO OFFICER'S COMPLIANCE CERTIFICATE
                       CALCULATIONS FOR REIT QUALIFICATION
                         AS OF THE QUARTER ENDED [DATE]
<TABLE>

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

I.    75% OF GROSS INCOME (SECTION 856(C)(3)):
------------------------------------------------------------------------------------------------------
1.    Gross income for quarter                                                  $
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
2.    Qualifying income under section 856(c)(3)                                 $
------------------------------------------------------------------------------------------------------
3.    Line 2 divided by Line 1 (cannot be less than 0.75)
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
II.   95% OF GROSS INCOME (SECTION 856(C)(2)):
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
4.    Qualifying income under section 856(c)(2)
------------------------------------------------------------------------------------------------------
5.    Line 4 divided by Line 1 (cannot be less than 0.95)
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
III.  75% OF TOTAL ASSETS (SECTION 856(C)(4)(A)):
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
6.    Value of total assets                                                     $
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
7.    Qualifying assets under section 856(c)(4)(A)                              $
------------------------------------------------------------------------------------------------------
8.    Line 7 divided by Line 6 (cannot be less than 0.75)
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
IV.   25% OF TOTAL ASSETS (SECTION 856(C)(4)(B)(I)):
------------------------------------------------------------------------------------------------------

9.    Value of securities held (other than those included in Line 7)            $
------------------------------------------------------------------------------------------------------
10.   Line 9 divided by Line 6 (cannot be more than 0.25)
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
V.    20% OF TOTAL ASSETS (SECTION 856(C)(4)(B)(II)):
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
11.   Value of securities of one or more taxable REIT subsidiaries              $
------------------------------------------------------------------------------------------------------
12.   Line 11 divided by Line 6 (cannot be more than 0.2)
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
VI.   5% OF TOTAL ASSETS (SECTION 856(C)(4)(B)(III)(I)):
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
13.   Value of securities held of each issuer (except for those included in Line
      7 or Line 11)
------------------------------------------------------------------------------------------------------
14.   Line 13 divided by Line 6 (cannot be more than 0.05)
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------NEITHER THIS WARRANT NOR THE COMMON STOCK WHICH MAY BE
      ACQUIRED UPON THE EXERCISE HEREOF (“WARRANT SHARES”), AS OF THE DATE
      OF ISSUANCE HEREOF, HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE AND
      MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED, ASSIGNED OR
      OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAW, OR IN
      A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS.
    

    
      For the Purchase of ____________
    

    
      shares of Common Stock
    

    
       
    

    
      No. _________
    

    
      WARRANT FOR THE PURCHASE OF
    

    
      SHARES OF COMMON STOCK
    

    
      OF PERFECTDATA CORPORATION
    

    
      (A Delaware corporation)
    

    
      PerfectData Corporation, a Delaware corporation (the
      “Company”), hereby certifies that for value received: 
    

    
      [Registered Holder]
    

    
      or registered assigns (“Registered Holder”), is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at any time or from time to time during the period commencing on June 21, 2005,
      and ending at 5:00 p.m. on June 20, 2009 (the “Expiration Date”),
      shares of Common Stock (subject to adjustment as provided herein), $.01 par
      value, of the Company (“Common Stock”), at a per share purchase price
      of $1.968. The number of shares of Common Stock purchasable upon exercise of
      this Warrant, and the purchase price per share, each as adjusted from time to
      time pursuant to the provisions of this Warrant, are hereinafter referred to as
      the “Warrant Shares” and the “Purchase Price”,
      respectively.
    

    
      1.       Exercise and Redemption of Warrants. Unless
      the Warrants have been redeemed in accordance with this Section, the Registered
      Holder of any Warrant Certificate may exercise the Warrants, in whole or in
      part at any time or from time to time at or prior to the close of business, on
      the Expiration Date, at which time the Warrant Certificates shall be and become
      wholly void and of no value. Warrants may be exercised by their holders or
      redeemed by the Company as follows:
    

    
      (a)      This Warrant may be
      exercised by Registered Holder, in whole or in part, by the surrender of this
      Warrant (with the Notice of Exercise Form attached hereto as Exhibit I duly
      executed by Registered Holder) at the principal office of the Company, or at
      such other office or agency as the Company may designate, accompanied by
      payment in full of an amount equal to the then applicable Purchase Price
      multiplied by the number of Warrant Shares then being purchased upon such
      exercise.
    

    
      (b)      Payment may be made
      either in lawful money of the United States or by surrender of a note made by
      the Company and payable to the Registered Holder with a balance of principal
      plus accrued and unpaid interest to the date of surrender at least equal to the
      payment required. Each exercise of this Warrant shall be deemed to have been
      effected immediately prior to the close of business on the day on which this
      Warrant shall have been surrendered to the 
    

    
       
    

    
       
    

    

    
    

    
    
      Company as provided in subsection l(a) above. At such
      time, the person or persons in whose name or names any certificates for Warrant
      Shares shall be issuable upon such exercise as provided in subsection l(c)
      below shall be deemed to have become the holder or holders of record of the
      Warrant Shares represented by such certificates.
    

    
      (c)      As soon as
      practicable after the exercise of the purchase right represented by this
      Warrant, the Company at its expense will use its best efforts to cause to be
      issued in the name of, and delivered to, Registered Holder, or, subject to the
      terms and conditions hereof, to such other individual or entity as Registered
      Holder (upon payment by Registered Holder of any applicable transfer taxes) may
      direct:
    

    
      (i)       a certificate
      or certificates for the number of full shares of Warrant Shares to which
      Registered Holder shall be entitled upon such exercise plus, in lieu of any
      fractional share to which Registered Holder would otherwise be entitled, cash
      in an amount determined pursuant to Section 3 hereof; and
    

    
      (ii)      in case such
      exercise is in part only, a new warrant or warrants (dated the date hereof) of
      like tenor, stating on the face or faces thereof the number of shares currently
      stated on the face of this Warrant (subject to adjustment as provided herein)
      minus the number of such shares purchased by Registered Holder upon such
      exercise as provided in subsection l(a) above.
    

    
      (d)      In case the
      registered holder of any Warrant certificate shall exercise fewer than all of
      the Warrants evidenced by such certificate, the Company shall promptly
      countersign and deliver to the registered holder of such certificate, or to his
      duly authorized assigns, a new certificate evidencing the number of Warrants
      that were not so exercised.
    

    
      (e)      Each person in
      whose name any certificate for securities is issued upon the exercise of
      Warrants shall for all purposes be deemed to have become the holder of record
      of the securities represented thereby as of, and such certificate shall be
      dated, the date upon which the Warrant certificate was duly surrendered in
      proper form and payment of the Purchase Price (and of any applicable taxes or
      other governmental charges) was made; provided, however, that if the date of such surrender
      and payment is a date on which the stock transfer books of the Company are
      closed, such person shall be deemed to have become the record holder of such
      shares as of, and the certificate for such shares shall be dated, the next
      succeeding business day on which the stock transfer books of the Company are
      open (whether before, on or after the Expiration Date) and the Company shall be
      under no duty to deliver the certificate for such shares until such date. The
      Company covenants and agrees that it shall not cause its stock transfer books
      to be closed for a period of more than 10 consecutive business days except upon
      consolidation, merger, sale of all or substantially all of its assets,
      dissolution or liquidation or as otherwise provided by law. The Company shall
      pay all documentary, stamp or other transactional taxes attributable to the
      issuance or delivery of shares upon exercise of the Warrants.
    

    	
          
            2.
          

        	
          
            Adjustments.
          

        

    
      (a)      Adjustment of Purchase Price and Number of Warrant Shares Upon
      Issuance of Common Stock. Except as otherwise
      provided in Paragraph 2(b) hereof, if and whenever on or after the date of
      issuance of this Warrant, the Company issues or sells, or in accordance with
      Paragraph 2(b) hereof is deemed to have issued or sold, any shares of Common
      Stock for no consideration or for a consideration per share before deduction of
      reasonable expenses or commissions or underwriting discounts or allowances in
      connection therewith) less than the Purchase Price on the date of issuance (a
      “Dilutive Issuance”), then immediately upon the Dilutive Issuance,
      the Purchase Price will be reduced to a price determined by multiplying the
      
    

    
       
    

    
       
    

    
      2
    

    

    
    

    
    
      Purchase Price in effect immediately prior to the Dilutive
      Issuance by a fraction, (i) the numerator of which is an amount equal to the
      sum of (x) the number of shares of Common Stock actually outstanding
      immediately prior to the Dilutive Issuance, plus (y) the quotient of the
      aggregate consideration, calculated as set forth in Paragraph 2(b) hereof,
      received by the Company upon such Dilutive Issuance divided by the Purchase
      Price in effect immediately prior to the Dilutive Issuance, and (ii) the
      denominator of which is the total number of shares of Common Stock Deemed
      Outstanding (as defined below) immediately after the Dilutive Issuance.
    

    
      (b)      Effect on Purchase Price of Certain Events.
      For purposes of determining the adjusted Purchase Price under Paragraph 2(a)
      hereof, the following will be applicable:
    

    
      (i)       Issuance of Rights or Options. If the
      Company in any manner issues or grants any warrants, rights or options, whether
      or not immediately exercisable, to subscribe for or to purchase Common Stock or
      other securities convertible into or exchangeable for Common Stock
      (“Convertible Securities”) (such warrants, rights and options to
      purchase Common Stock or Convertible Securities are hereinafter referred to as
      “Options”) and the price per share for which Common Stock is issuable
      upon the exercise of such Options is less than the Purchase Price on the date
      of issuance or grant of such Options, then the maximum total number of shares
      of Common Stock issuable upon the exercise of all such Options will, as of the
      date of the issuance or grant of such Options, be deemed to be outstanding and
      to have been issued and sold by the Company for such price per share. For
      purposes of the preceding sentence, the “price per share for which Common
      Stock is issuable upon the exercise of such Options” is determined by
      dividing (A) the total amount, if any, received or receivable by the Company as
      consideration for the issuance or granting of all such Options, plus the
      minimum aggregate amount of additional consideration, if any, payable to the
      Company upon the exercise of all such Options, plus, in the case of Convertible
      Securities issuable upon the exercise of such Options, the minimum aggregate
      amount of additional consideration payable upon the conversion or exchange
      thereof at the time such Convertible Securities first become convertible or
      exchangeable, by (B) the maximum total number of shares of Common Stock
      issuable upon the exercise of all such Options (assuming full conversion of
      Convertible Securities, if applicable). No further adjustment to the Purchase
      Price will be made upon the actual issuance of such Common Stock upon the
      exercise of such Options or upon the conversion or exchange of Convertible
      Securities issuable upon exercise of such Options.
    

    
      (ii)      Issuance of Convertible Securities. If the
      Company in any manner issues or sells any Convertible Securities, whether or
      not immediately convertible (other than where the same are issuable upon the
      exercise of Options) and the price per share for which Common Stock is issuable
      upon such conversion or exchange is less than the Purchase Price on the date of
      issuance, 
    

    
       
    

    
       
    

    
      3
    

    

    
    

    
    
      then the maximum total number of shares of Common Stock
      issuable upon the conversion or exchange of all such Convertible Securities
      will, as of the date of the issuance of such Convertible Securities, be deemed
      to be outstanding and to have been issued and sold by the Company for such
      price per share. For the purposes of the preceding sentence, the “price
      per share for which Common Stock is issuable upon such conversion or
      exchange” is determined by dividing (A) the total amount, if any, received
      or receivable by the Company as consideration for the issuance or sale of all
      such Convertible Securities, plus the minimum aggregate amount of additional
      consideration, if any, payable to the Company upon the conversion or exchange
      thereof at the time such Convertible Securities first become convertible or
      exchangeable, by (B) the maximum total number of shares of Common Stock
      issuable upon the conversion or exchange of all such Convertible Securities. No
      further adjustment to the Purchase Price will be made upon the actual issuance
      of such Common Stock upon conversion or exchange of such Convertible
      Securities.
    

    
      (iii)     Change in Option Price or Conversion Rate.
      If there is a change at any time in (A) the amount of additional consideration
      payable to the Company upon the exercise of any Options; (B) the amount of
      additional consideration, if any, payable to the Company upon the conversion or
      exchange of any Convertible Securities; or (C) the rate at which any
      Convertible Securities are convertible into or exchangeable for Common Stock
      (other than under or by reason of provisions designed to protect against
      dilution), the Purchase Price in effect at the time of such change will be
      readjusted to the Purchase Price which would have been in effect at such time
      had such Options or Convertible Securities still outstanding provided for such
      changed additional consideration or changed conversion rate, as the case may
      be, at the time initially granted, issued or sold.
    

    
      (iv)     Treatment of Expired Options and Unexercised Convertible
      Securities. If, in any case, the total number of
      shares of Common Stock issuable upon exercise of any Option or upon conversion
      or exchange of any Convertible Securities is not, in fact, issued and the
      rights to exercise such Option or to convert or exchange such Convertible
      Securities shall have expired or terminated, the Purchase Price then in effect
      will be readjusted to the Purchase Price which would have been in effect at the
      time of such expiration or termination had such Option or Convertible
      Securities, to the extent outstanding immediately prior to such expiration or
      termination (other than in respect of the actual number of shares of Common
      Stock issued upon exercise or conversion thereof), never been issued.
    

    
       
    

    
       
    

    
      4
    

    

    
    

    
    
      (v)      Calculation of Consideration Received. If
      any Common Stock, Options or Convertible Securities are issued, granted or sold
      for cash, the consideration received therefor for purposes of this Warrant will
      be the amount received by the Company therefor, before deduction of reasonable
      commissions, underwriting discounts or allowances or other reasonable expenses
      paid or incurred by the Company in connection with such issuance, grant or
      sale. In case any Common Stock, Options or Convertible Securities are issued or
      sold for a consideration part or all of which shall be other than cash, the
      amount of the consideration other than cash received by the Company will be the
      fair value of such consideration, except where such consideration consists of
      securities, in which case the amount of consideration received by the Company
      will be the Market Price thereof as of the date of receipt. In case any Common
      Stock, Options or Convertible Securities are issued in connection with any
      acquisition, merger or consolidation in which the Company is the surviving
      corporation, the amount of consideration therefor will be deemed to be the fair
      value of such portion of the net assets and business of the non-surviving
      corporation as is attributable to such Common Stock, Options or Convertible
      Securities, as the case may be. The fair value of any consideration other than
      cash or securities will be determined in good faith by the Board of Directors
      of the Company.
    

    
      (vi)     Exceptions to Adjustment of Purchase Price.
      No adjustment to the Purchase Price will be made (A) upon the exercise of any
      warrants, options or convertible securities granted, issued and outstanding on
      the date of issuance of this Warrant; (B) upon the grant or exercise of any
      stock or options which may hereafter be granted or exercised under any employee
      benefit plan, stock option plan or restricted stock plan of the Company now
      existing or to be implemented in the future, so long as the issuance of such
      stock or options is approved by a majority of the members of the Board of
      Directors of the Company or a majority of the members of a committee of
      independent directors established for such purpose; or (C) upon the exercise of
      the Warrants.
    

    
      (c)      Split, Subdivision or Combination of Shares.
      If the outstanding shares of the Company’s Common Stock at any time while
      this Warrant remains outstanding and unexpired shall be subdivided or split
      into a greater number of shares, or a dividend in Common Stock shall be paid in
      respect of Common Stock, the Purchase Price in effect immediately prior to such
      subdivision or at the record date of such dividend, simultaneously with the
      effectiveness of such subdivision or split or immediately after the record date
      of such dividend (as the case may be), shall be proportionately decreased. If
      the outstanding shares of Common Stock shall be combined or reverse-split into
      a smaller number of shares, the Purchase Price in effect immediately prior to
      such combination or reverse split, simultaneously with the effectiveness of
      such combination or reverse split, shall be proportionately increased. When any
      adjustment is required to be made in the Purchase Price, the number of shares
      of Warrant Shares purchasable upon the exercise of this Warrant shall be
      changed to the number determined by dividing (i) an amount equal to the 
    

    
       
    

    
       
    

    
      5
    

    

    
    

    
    
      number of shares issuable upon the exercise of this
      Warrant immediately prior to such adjustment, multiplied by the Purchase Price
      in effect immediately prior to such adjustment, by (ii) the Purchase Price in
      effect immediately after such adjustment.
    

    
      (d)      Price Adjustment. No adjustment in the
      Purchase Price shall be required unless such adjustment would require an
      increase or decrease in the Purchase Price of at least $0.01, provided,
      however, that any adjustments which by reason of this paragraph are not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment. All calculations under this Section 2 shall be made to
      the nearest cent or to the nearest 1/lOOth of a share, as the case may
      be.
    

    
      (e)      Price Reduction. Notwithstanding any other
      provision set forth in this Warrant, at any time and from time to time during
      the period that this Warrant is exercisable, the Company in its sole discretion
      may reduce the Purchase Price or extend the period during which this Warrant is
      exercisable.
    

    
      (f)      No Impairment. The Company will not, by
      amendment of its Certificate of Incorporation or through any reorganization,
      transfer of assets, consolidation, merger, dissolution, issue or sale of
      securities or any other voluntary action, avoid or seek to avoid the
      observance or performance of
      any of the terms to be observed or performed hereunder by the Company but will
      at all times in good faith assist in the carrying out of all the provisions of
      this Section 2 and in the taking of all such actions as may be necessary or
      appropriate in order to protect against impairment of the rights of Registered
      Holder to adjustments in the Purchase Price.
    

    
      (g)      Notice of Adjustment. Upon any adjustment of
      the Purchase Price, number of shares the Warrants are exercisable for, or
      extension of the Warrant exercise period, the Company shall forthwith give
      written notice thereto to Registered Holder describing the event requiring the
      adjustment, stating the adjusted Purchase Price and the adjusted number of
      shares purchasable upon the exercise hereof resulting from such event, and
      setting forth in reasonable detail the method of calculation and the facts upon
      which such calculation is based.
    

    
      3.       Fractional Shares. The Company shall not be
      required upon the exercise of this Warrant to issue any fractional shares, but
      shall make an adjustment thereof in cash on the basis of the last sale price of
      the Warrant Shares on the basis of the then fair market value of the Warrant
      Shares as shall be reasonably determined by the Board of Directors of the
      Company.
    

    
      4.       Limitation on Sales. Each holder of this
      Warrant acknowledges that this Warrant and the Warrant Shares, as of the date
      of original issuance of this Warrant, have not been registered under the
      Securities Act of 1933, as amended (“Act”), and agrees not to sell,
      pledge, distribute, offer for sale, transfer or otherwise dispose of this
      Warrant or any Warrant Shares issued upon its exercise in the absence of (a) an
      effective registration statement under the Act as to this Warrant or such
      Warrant Shares or (b) an opinion of counsel, satisfactory to the Company, that
      such registration and qualification are not required. The Warrant Shares issued
      upon exercise thereof shall be imprinted with a legend in substantially the
      following form:
    

    
      “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “ACT”) OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED,
      SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED, ASSIGNED OR OTHERWISE DISPOSED OF
      EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND IN
      COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS OR IN A TRANSACTION WHICH
      IS EXEMPT FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS.”
    

    
       
    

    
       
    

    
      6
    

    

    
    

    
    
      5.       Registration Rights of Registered Holder.
      The Company and Registered Holder have entered into a Subscription Agreement,
      dated the date hereof, with respect to the Warrant Shares, pursuant to which
      the Company has agreed to grant certain registration rights to the Registered
      Holders with respect to the Warrant Shares.
    

    	
          
            6.
          

        	
          
            Notices of Record Date.
            In case:
          

        

    
      (a)      the Company shall
      take a record of the holders of its Common Stock (or other stock or securities
      at the time deliverable upon the exercise of this Warrant) for the purpose of
      entitling or enabling them to receive any dividend or other distribution, or to
      receive any right to subscribe for or purchase any shares of any class or any
      other securities, or to receive any other right, or
    

    
      (b)      of any capital
      reorganization of the Company, any reclassification of the capital stock of the
      Company, any consolidation or merger of the Company with or into another
      corporation (other than a consolidation or merger in which the Company is the
      surviving entity), or any transfer of all or substantially all of the assets of
      the Company, or
    

    
      (c)      of the voluntary or
      involuntary dissolution, liquidation or winding-up of the Company, then, and in
      each such case, the Company will mail or cause to be mailed to Registered
      Holder a notice specifying, as the case may be, (i) the date on which a record
      is to be taken for the purpose of such dividend, distribution or right, and
      stating the amount and character of such dividend, distribution or right, or
      (ii) the effective date on which such reorganization, reclassification,
      consolidation, merger, transfer, dissolution, liquidation or winding-up is to
      take place, and the time, if any is to be fixed, as of which the holders of
      record of Common Stock (or such other stock or securities at the time
      deliverable upon the exercise of this Warrant) shall be entitled to exchange
      their shares of Common Stock (or such other stock or securities) for securities
      or other property deliverable upon such reorganization, reclassification,
      consolidation, merger, transfer, dissolution, liquidation or winding-up. Such
      notice shall be mailed at least twenty (20) days prior to the record date or
      effective date for the event specified in such notice, provided that the
      failure to mail such notice shall not affect the legality or validity of any
      such action.
    

    
      7.       Reservation of Stock. The Registered Holder
      acknowledges that at the time of issuance of this Warrant, the Company does not
      have available a sufficient number of shares of Common Stock as are issuable
      upon the exercise of this Warrant. The Company covenants and agrees that when
      it has obtained such approval of its shareholders as is necessary to effect the
      issuance of additional Common Stock, it will as soon as practicable thereafter
      at all times reserve and keep available, solely for issuance and delivery upon
      the exercise of this Warrant, such shares of Common Stock and other stock,
      securities and property, as from time to time shall be issuable upon the
      exercise of this Warrant. All shares that may be issued upon exercise of this
      Warrant shall, at the time of issuance, be duly authorized, fully paid and
      non-assessable.
    

    
      8.       Replacement of Warrants. Upon receipt of
      evidence reasonably satisfactory to the Company of the loss, theft, destruction
      or mutilation of this Warrant and (in the case of loss, theft or destruction)
      upon delivery of an indemnity agreement (with surety if reasonably required) in
      an amount reasonably satisfactory to the Company, or (in the case of
      mutilation) upon surrender and cancellation of this Warrant, the Company will
      issue, in lieu thereof, a new Warrant of like tenor. This Warrant is
      exchangeable for new Warrants (containing the same terms as this Warrant) each
      representing the right to purchase such number of shares as shall be designated
      by the Registered Holder at the time of surrender (but not exceeding in the
      aggregate the remaining number of shares of Common Stock which may be purchased
      hereunder.
    

    
       
    

    
       
    

    
      7
    

    

    
    

    
    	
          
            9.
          

        	
          
            Transfers, etc.
          

        

    
      (a)      The Company will
      maintain a register containing the names and addresses of Registered Holders. A
      Registered Holder may change his, her or its address as shown on the warrant
      register by written notice to the Company requesting such change.
    

    
      (b)      Until any transfer
      of this Warrant is made in the warrant register, the Company may treat
      Registered Holder as the absolute owner hereof for all purposes, provided,
      however, that if and when this Warrant is properly assigned in blank, the
      Company may (but shall not be obligated to) treat the bearer hereof as the
      absolute owner hereof for all purposes, notwithstanding any notice to the
      contrary.
    

    
      10.     No Rights as Stockholder. Until the exercise
      of this Warrant, Registered Holder shall not have or exercise any rights by
      virtue hereof as a stockholder of the Company.
    

    
      11.     Successors. The rights and obligations of
      the parties to this Warrant will inure to the benefit of and be binding upon
      the parties hereto and their respective heirs, successors, assigns, pledgees,
      transferees and purchasers. Without limiting the foregoing, the registration
      rights set forth in this Warrant shall inure to the benefit of Registered
      Holder and Registered Holder’s successors, heirs, pledgees, assignees,
      transferees and purchasers of this Warrant and the Warrant Shares.
    

    
      12.     Change or Waiver. Any term of this Warrant
      may be changed or waived only by an instrument in writing signed by the party
      against which enforcement of the change or waiver is sought.
    

    
      13.     Headings. The headings in this Warrant are
      for purposes of reference only and shall not limit or otherwise affect the
      meaning of any provision of this Warrant.
    

    
      14.     Governing Law. This Warrant shall be
      governed by and construed in accordance with the laws of the State of New York
      as such laws are applied to contracts made and to be fully performed entirely
      within that state between residents of that state.
    

    
      15.     Jurisdiction and Venue. The Company and
      Registered Holder (i) agree that any legal suit, action or proceeding arising
      out of or relating to this Warrant shall be instituted exclusively in New York
      State Supreme Court, County of New York or in the United States District Court
      for the Southern District of New York, (ii) waives any objection to the venue
      of any such suit, action or proceeding and the right to assert that such forum
      is not a convenient forum for such suit, action or proceeding, and (iii)
      irrevocably consent to the jurisdiction of the New York State Supreme Court,
      County of New York, and the United States District Court for the Southern
      District of New York in any such suit, action or proceeding, and the Company
      and Registered Holder further agree to accept and acknowledge service or any
      and all process which may be served in any such suit, action or proceeding in
      New York State Supreme Court, County of New York or in the United States
      District Court for the Southern District of New York and agrees that service of
      process upon it mailed by certified mail to its address shall be deemed in
      every respect effective service of process upon it in any suit, action or
      proceeding.
    

    
      16.      Mailing of Notices, etc. All notices and
      other communications under this Warrant (except payment) shall be in writing
      and shall be sufficiently given if delivered to the addressees in person, by
      Federal Express or similar receipt delivery, by facsimile delivery or, if
      mailed, postage prepaid, by certified mail, return receipt requested, as
      follows:
    

    
       
    

    
       
    

    
      8
    

    

    
    

    
    
        
    

    	
          
            to Registered Holder:
          

        	
          
             
          

        	
          
            [        ]
          

        
	
          
             
          

        	
          
             
          

        	
          
             
          

        
	
          
            to the Company:
          

        	
          
             
          

        	
          
            PerfectData Corporation
 c/o Sona Mobile, Inc.
 825 Third
            Avenue
 32nd Floor
 New
            York, New York 10128
 Attention: Mr. John Bush,
            President and CEO
 Fax: (212) 486-4469
          

        
	
          
             
          

        	
          
             
          

        	
          
             
          

        
	
          
            with a copy to:
          

        	
          
             
          

        	
          
            Morse, Zelnick, Rose & Lander LLP

            405 Park Avenue
 Suite 1401

            New York, New York 10022
 Attention:
            Joel J. Goldschmidt, Esq.
 Fax: (212) 838-9190
          

        

    
       
    

    
       
    

    
       
    

    
      9
    

    

    
    

    
    
      or to such other address as any of them, by notice to the
      other may designate from time to time. Time shall be counted to, or from, as
      the case may be, the delivery in person or by mailing.
    

    
      Dated: June ____, 2005.
    

    
       
    

    
      	
            
               
            

          	
            
               
            

          	
            
              PERFECTDATA CORPORATION
            

          
	
            
              
 

            

          	
            
               
            

          	
            
              By:
            

          	
            
              
 

            

          
	
            
               
            

          	
            
               
            

          	
            
               
            

          	
            
            

            
 
	
            
               
            

          	
            
               
            

          	
            
               
            

          	
            
              John Bush, President
 and
              Chief Executive Officer
            

          

 

    
       
    

    
       
    

    
      10
    

    

    
    

    
    
      EXHIBIT I
    

    
      NOTICE OF EXERCISE
    

    
          
    

    	
          
            TO:
          

        	
          
             
          

        	
          
            PerfectData Corporation
          

        
	
          
             
          

        	
          
             
          

        	
          
             
          

        
	
          
             
          

        	
          
             
          

        	
          
            C/o Sona Mobile, Inc.
 825
            Third Avenue, 32nd
            Floor
 New York, New York 10022
          

        

    
      Attention:  Mr. John Bush, President and
      CEO
    

    
      1.        The
      undersigned hereby elects to purchase                    shares of the Common Stock of PerfectData Cororation, pursuant to
      terms of the attached Warrant, and tenders herewith payment of the purchase
      price of such shares in full, together with all applicable transfer taxes, if
      any.
    

    
      2.       Please issue a
      certificate or certificates representing said shares of the Common Stock in the
      name of the undersigned or in such other name as is specified below. If the
      attached Warrant is exercisable for a greater number of shares than the number
      set forth in paragraph 1, then please issue another Warrant in the name of the
      undersigned or in such other name as is specified below exercisable for the
      remaining number of shares.
    

    
      3.        The
      undersigned represents that it will sell the shares of Common Stock only
      pursuant to an effective Registration Statement under the Securities Act of
      1933, as amended, or an exemption from registration thereunder.
    

    
       
    

    
      	
            
               
            

          	
            
               
            

          	
            
               
            

          	
            
               
            

          
	
            
               
            

          	
            
               
            

          	
            
               
            

          	
            
              (Name)
 

            

          
	
            
               
            

          	
            
               
            

          	
            
               
            

          	
            
              (Address)
 (Taxpayer
              Identification Number)
            

          

 

    
       
    

    
      	
            
              [print name of Registered Holder]
            

          	
            
               
            

          	
            
               
            

          	
            
               
            

          
	
            
              By:
            

          	
            
               
            

          	
            
               
            

          	
            
               
            

          
	
            
              Title:
            

          	
            
               
            

          	
            
               
            

          	
            
               
            

          
	
            
              Date:
            

          	
            
               
            

          	
            
               
            

          	
            
               
            

          

 

    
       
    

    
      11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]